Question

A new on-line teller system design for a medium size bank was approved by the president, signaling the beginning of implementation. The project leader devised a master plan to specify who is to perform each task and in what order. New deposit slips and withdrawers were ordered and delivered three weeks before implementation. In the interim, copies of the user manual were prepared for the lobby and drive-in-tellers. Soon after the terminals were installed, the tellers begin to learn how to enter various transactions. After training sessions were over, they had a chance to ask questions and enquire about the new system. Once completed, the telephone company and the computer service representative hooked up the terminal on-line with the master system. The following Monday (a week before actual conversion), the analyst asked the head teller whether the tellers would come in on Saturday to catch up on their work and run test data to reinforce recent training. The head teller agreed to overtime, but on Saturday, only 12 of 17 tellers showed up. During that time, the entire system was checked out and functioned as expected. The bank opened the following Monday, the online system operated normally. Customers were greeted at the door by the president. Coffee and cake were served in the lobby. At the end of the day, the analyst sent a report to the board directors informing them that the system was now in operation and all user requirements had been met. Three weeks later the analyst was called to the board meeting.

The chairman criticized the analyst for exceeding the budgeted amount approved by the board. Furthermore, the authorization the analyst gave the terminal vendor to bring in two CRT screens to expedite information retrieval exceeded his authority to implement the system. The bank's auditor also estimated that it would take 3.8 years rather than the initial estimate of 2.1 years to break even on the total cost of the installation. Not knowing what to say, the analyst left the board room with a feeling of total failure.

Answer following questions:

(a) What are the major problems in the case? Why?

(b) Was the board chairman justified in his criticism of the analyst? Explain.

(c) Discuss whether the analyst succeeded in implementation of the system.