1. Exercise
Develop a context Diagram for a small bank for “Loan Granting” process
Identify EXTERNAL entities
Develop a Context diagram

2. Context Diagram I-P-O INPUT
Steps:
INPUT
Customer requests loan through an Application (input)
Credit Bureau provides customer credit history (input)
Customer acceptance of loan (if accepted)
Customer provides completed (Executed) Loan Contract
PROCESS: Process Loan
OUTPUT:
Outcome: Accept/Reject
IF Loan is approved
Send acceptance notification
IF accepted by customer
Send Loan Contract
Send Loan Amount
ELSE
Stop
Send rejection letter

3. Customer’s
Credit
History
Credit
Bureaus
Loan Granting
Process
Application
Executed Loan
Contract
Acceptance/ Rejection of Loan
Notice of Acceptance or Rejection
Customer
Loan Contract
Loan Funds

4. Though we did not discuss but if you want level 0 also
Assume following processes (data Fragments) at level 0 for the Loan Granting Process
Application Process
Loan Process
Execute Loan
Loan Delivery
Explode the context diagram for level 0 for the above processes

5. 1.0 Application Process 2.0 Loan Process INPUT
from Context diagram .Customer .APPLICATION
PROCESS
Check for application’s completeness
OUTPUT
Completed Application
2.0 Loan Process
from context diagram customer credit History
From Bank CUSTOMER database customer’s history with the bank
Bank rules from RULE database regarding bank’s policy on loans
Based on bank’s rule decide if customer meets requirements for loan
OUTPUT:
Decision Loan is accepted or rejected and notice is sent to customer (output to CUSTOMER) in context
sub processes 3 & 4 can be similarly synchronized with the context diagram

6. Executed Loan Contract
Application
1.0
Application
Process
Bank Rules
Customer’s Credit
History
Completed
Application
Credit
Bureaus
Bank’s Rules
2.0
Loan
Process
Customer
History
Customer Database
Notice of Acceptance or Rejection
Update Customer
Customer
Acceptance or Rejection of Loan
Loan Completed
3.0
Execute
Loan
Loan Contract
4.0
Loan
Delivery
Loan Funds
Executed Loan Contract