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System Design     System Testing     System Introduction       Preliminary Investigation

System Analysis

3.1 Introduction

            System analysis is the systematic analysis of a proposed system and the identification of the requirements that it should meet. It is a process of gathering and interpreting facts, diagnosing problem, defining the problem and recognizing causes. System Analysis is the starting point for system design. The term is most commonly used in the context of commercial programming, where software developers are often classed as either system analyst or programmers. The systems analysts are responsible for identifying requirements (i.e. systems analysis) and producing a design. The programmers are then responsible for implementing it.  The System Analysis is performed in three different steps-

 3.2 Problem Analysis:

            Loan Department maintains all loan related information and transaction. Which comes from different branches. At present loan department section use a paper-based system to store and analyze these information. Some software like Ms. Word, Ms Excel, Ms Access etc used in a limited basis.

          To manage all these information a paper based-manual system is not efficient. In BSB there are several departments and each department has their own data to process. There fore huge data collection is going all the day and managing all these information in a paper based system is very difficult, time consuming and enormous. So the challenge was to build software to overcome these problems.

In the paper-based system other problems they face are:

·                    Documents are very large.

·                    Stake of files that is very difficult to maintain

·                    Extra overhead works

·                    Extra manpower, so more expenses is needed in every step to manage all of these.

·                    Documents are not secured.

·                    Calculations are complicated and error can occur easily.

3.3 Requirement Analysis:    

         In order to understand the existing system and identify the current problems with the system, a requirement analysis has to be implemented. This part plays a fundamental role in System analysis phase.

            Requirement Analysis relies on fact-finding techniques. Which includes interview, questioners, record review and observation.

q  Purpose of Loan Management System activity:

            Bangladesh Shilpa Bank (BSB) is one of the leading Financial Institute in Bangladesh. The main purpose of this organization is to provide financial assistance to projects in different sector for industrialization. BSB extends long-term loan facilities in local and foreign currencies to industrial projects in the private and public sectors. Industrial loan is the core business of BSB. Loan Department maintains all loan related information and transaction. After completing all transaction Loan department send the resulting information to the Central Account Departments. Central Account Departments (CAD) is main accounting section of the bank.

q  The Steps are performed:

            The system starts when client submits a project for a loan. This project is verified in the Loan Department. The result of the verification is send to the management. Then the management decides whether the project is accepted or denied in a board meeting.

            When the project is accepted the detail information of the project is to collect. Like- project id, Name, Address etc and send them to Not Due section in the loan Department. This section is responsible for giving money for the project and maintains the related information and transaction.  A new account number and loan number is to open for that project loan in the Not Due section. Which contain sanction amount, installment amount, interest during construction period amount etc.

            After that the loan sanction amount is given to the project by more than one installment. This process is called disbursement process. When the 1st amount of taka is given to the project, it is called the first disbursement. Disbursement balance report is prepared in this step. This information is also kept in the not Due section.

            When the disbursement process completed this is the time to start taking return from client with interest. That’s why repayment schedule created to receive the money. Repayment schedule contains installment amount, date, installment cycle, total balance.

            Over Due Section collect installment amount from the client. This section also collects other charge from the client. After collecting the taka from the client this section update the current loan balance and also send the information to Not Due section. Loan recovery balance report is prepared here.

            If anybody fail to give the installment for a long time than this section takes necessary steps, like- Re-phase/Write-off etc. In case of re-phase the old loan account is rearranged by the management and create a new loan account. The entire balance is then transferred from the old loan to new loan.

             Finally all the information is send to the CAD (Central Accounting Department).

q Steps performed Place

           All the Loan Management works are performed in the Loan Department. But the department is classified in two parts – Not Due Section and Over Due Section. 

           Not Due Section is responsible to give money to the project and preparing the Repayment Schedule. Over Due Section receives money from the client and takes necessary steps for loan defaulter.

q  Performers:

§   The client or project applies for the loan.

§   The Inspector verifies the project.

§   The management accepts or denies the project.

§   General Manager, Manager, DGM and AGM perform rests of the processes.

q  Duration

            As it BSB mainly gives long-term loan, so these activities are performed year after year. It mainly depends on the loan sanction amount. If the sanction amount is large than it takes long time.

q       Volume of transaction

            As these activities are performed for long term loan, so volume of transaction is great. Each loan goes for year after year for a particular project.    

q       Duration

·  Project submission, verification, loan sanction this steps are performed only once for a particular loan. 

·  Duration of Loan Disbursement, repayment activities are based on sanction amount.  

·  Re-phase is done once or twice for a particular loan.

q  Destination of resulting information

            The Management of the LD mainly uses the resulting information of the Loan Department. Besides the Over Due Section uses the resulting information from Not Due section. The final resulting information also goes to the Central Accounting Department.

q  Problems and its effect

            The main problem they face is that for manual system, each process becomes very time consuming. Then in the paper-based system other problems they face are:

·        Huge documents, stake of files that is very difficult to maintain.

·        Extra overhead works,

·        Extra manpower so more cost, are needed in every step to manage all of these.

·        Important documents are unsecured.

             The reason for these problem is that the Bank’s activities is expanding day by day but they still use the paper base manual system to mange all the transaction and information.

 3.4 Feasibility Study:

            Studies to determine the advantages or disadvantages, practicability, or capability of accomplishing a projected plan, study, or project is known as Feasibility Study. If the proposed system is not feasible then there is total waste of both time and money. That’s why I had to study the feasibility of the proposed system.  The outcome of my studies  are-

·        Technical Feasibility

·        Economic Feasibility

·        Operational Feasibility

3.4.1 Technical Feasibility:

            Technical Feasibility concerned with the possibility of whether the proposed solution can be implemented with the available hardware, software and technical resources.

           The system that I have designed is for network environment. So many user can use this application but the data storage will in the server pc only. Loan Management System is one of the modules of Bank Management System. Some modules like- Project Information System, Payroll system, Employee Management System had already exist there.  So the necessary hardware, software and technical resources for my proposed solution were available there. The existing resources are:

q   A computer section having 10 computers.

q    Most of them configured with Pentium 111 processors, 128 Ram and 40 GB Hard Disk, which is suitable to run my system.

q    IBM Server (Processor Intel Xeon–1.60 GHz, RAM- 1048060 KB, HDD- 80 GB).

q    All of these computers are connected with the main server.

q    System software are Windows 2000 Server, Oracle 8i, Developer 2000, MS Office 2000

        So my System is technically feasible for this organization because it can be easily installed in the present hardware and software environment.

3.4.2 Economic Feasibility:

            Economic feasibility determines whether the benefits of a proposed solution out-weight the cost.

            Implementation of my proposed system will ensure the best possible performance. This increase in performance will optimize the overall productivity and throughput of the mentioned resources. The Loan Management System is economically feasible in this concern.

3.4.3 Operational Feasibility:

            Operation Feasibility determines whether the proposed solution is desirable within the existing managerial and organizational framework. 

            The Loan Management System is easy to use. The user does not need any costly training to operate this system. However the new users must have computer operation knowledge especially on Windows platform. As is common for any new software at the beginning things may appear a little unfamiliar. But the system is gradually used it will be found to be quiet easy to operate. And the user will become skilled in it automatically. It will take a few days to learn the operation of this new system. The output of this system will be useful for the relevant department and for the management for taking decisions.


3.5 Rich Picture:


Cloud Callout:                     

            Client Apply For project Loan





    Client Receives Money from Bank                     Client returns Money in Installment

        (Not Due Section)                                               (Over Due Section)


Figure: 3.1 Rich Picture of Loan Management System