Coit 20248 Term 1 2016 Case Study ✓ Solved

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Identify all functional and non-functional requirements for developing an updated inventory tracking system for Australian Labs, considering their current challenges and goals. Include the estimated costs and benefits across five years with a 10% discount rate, highlighting the project's financial viability and impact on operational efficiency.

Sample Paper For Above instruction

Introduction

Australian Labs, a provider of laboratory testing services primarily to doctors' offices and small medical establishments, faces operational challenges stemming from its outdated inventory management system. The current manual, paper-based tracking process hampers quick turnaround times and limits the ability to provide accurate status updates to clients. Jim Larsen, the head technician, seeks to adopt a modern inventory tracking solution that leverages barcodes and a structured database to enhance efficiency. This paper delineates the functional and non-functional requirements essential for designing the new system and assesses its economic viability based on projected costs and benefits over a five-year period.

Current Challenges and Objectives

The existing inventory system relies heavily on handwritten labels and manual logging in a physical logbook, leading to inefficiencies and inaccuracies. These issues contribute to prolonged turnaround times and diminished customer service. The primary objectives of the new system are to streamline inventory management, improve status tracking, reduce delays, and enable real-time updates for clients.

Functional Requirements

Functional requirements specify the essential capabilities that the new inventory system must provide to meet organizational needs. These include:

• Barcode Generation and Scanning: Ability to generate unique barcodes for each test vial and support barcode scanning during various testing stages.
• Inventory Management: Track the status of each vial from receipt through testing to completion, including location and condition updates.
• Test Request Processing: Register incoming test requests, associate them with specific vials, and link data entries within the database.
• Real-Time Status Updates: Provide immediate information on each test vial's progress, including current stage and estimated completion time.
• User Interface for Technicians: Offer an intuitive interface for technicians to update vial status via barcode scans and manual inputs.
• Reporting and Analytics: Generate reports on inventory status, turnaround times, and diagnostic performance metrics.
• Communication Integration: Send automatic notifications or updates to clients regarding test progress and results.

Non-Functional Requirements

Non-functional requirements outline the quality attributes and constraints essential for the system's success:

• Performance: System must support multiple concurrent users with minimal latency, ensuring real-time updates.
• Reliability: High availability and data integrity are critical; the system should prevent data loss and support recovery procedures.
• Usability: Interfaces should be user-friendly for laboratory technicians with minimal training requirements.
• Security: Sensitive patient data must be protected through authentication, authorization, and encryption measures.
• Scalability: The system should accommodate future growth, including an increased number of test requests and vials.
• Maintainability: Designed for ease of updates, bug fixes, and support, reducing long-term operational costs.
• Compliance: Adhere to relevant healthcare data regulations, such as HIPAA or local privacy laws.

Cost-Benefit Analysis

The financial implications for the proposed system evaluate an initial development cost of $80,000, with recurring annual costs of $25,000. The benefits include improved operational efficiency and faster turnaround times, translating into an estimated net economic benefit of $40,000 annually from year one onward. Discounting future benefits and costs at a 10% rate indicates the project's potential return on investment.

The cumulative discounted benefit over five years is calculated as follows:

- Year 0: No benefit, only costs.

- Years 1-5: Each year yields a $40,000 benefit, discounted at 10%.

Using the present value (PV) formula for each year's benefit:

PV = Future Value / (1 + r)^n

Total discounted benefits:

PV_total = $40,000 [(1 - (1 + r)^-n) / r] ≈ $40,000 3.7908 ≈ $151,632

Total costs:

- Initial: $80,000

- Recurring: $125,000 over five years ($25,000 * 5)

The present value of recurring costs is:

PV of costs = $25,000 [(1 - (1 + r)^-n) / r] ≈ $25,000 3.7908 ≈ $94,770

Total present value costs:

$80,000 + $94,770 ≈ $174,770

Net present value (NPV) = PV benefits - PV costs ≈ $151,632 - $174,770 ≈ -$23,138

Given this analysis, the project shows a marginal negative NPV; however, qualitative benefits such as improved customer satisfaction, staff efficiency, and long-term scalability could justify the investment.

Conclusion

The development of an updated inventory tracking system at Australian Labs is driven by the need to modernize operations, reduce turnaround times, and enhance client communication. The specified functional requirements—barcode integration, real-time updates, comprehensive inventory management, and reporting—are essential to achieving these goals. Non-functional attributes such as security, usability, and scalability ensure that the system maintains high performance and compliance standards. Although initial financial analysis indicates a marginal short-term return, the strategic advantages and operational efficiencies support proceeding with the project, especially considering future growth and technological trends in healthcare processes.

References

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