Lesson 4

Data flow diagram (DFD)

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The key elements of a Data Flow Diagram (DFD) include:
1. Processes:
o Represent activities that transform data.

o Symbol: Circle or rounded rectangle.

o Example: "Process Order" or "Validate Payment".
2. Data Flows:
o Show how data moves between processes, data stores, and external entities.
o Symbol: Arrow.

o Example: "Customer Information" or "Order Details".

3. Data Stores:
o Represent places where data is stored.
o Symbol: Open-ended rectangle (or two horizontal lines).
o Example: "Customer Database" or "Inventory List".

4. External Entities:
o Represent external systems, users, or organizations that interact with the
system.

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 o Symbol: Rectangle.
o Example: "Customer" or "Bank".

DFD rules, guidelines, and tips:

Creating data flow diagrams requires some guidelines and rules that should be followed.
These guidelines make DFD easily understandable and lucid.
Here are some of the key rules and tips.
1. Each process has at least one outgoing data flow and at least one ingoing data flow.

2. Each process can go to any other symbol (other processes, data store, and entities).

3. Each data store should have at least one incoming and at least one outgoing data flow.

4. Entities must be connected to a process by a data flow.

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5. Data flows cannot cross with each other.

6. Data stores cannot be connected to external entities. Otherwise, it means you’re allowing
an external entity access to your data files and stores.
7. The labels of processes can be verb phrases. Data stores are displayed by nouns.
8. Data flows cannot run between two external entities without going through a process (as
you will see in the data flow diagram examples below).

Steps for creating a context DFD:

 Step1: Define the process.

 Step2: Create a list of all external entities (all people and systems).
 Step3: Create a list of the data flows.
 Step4: Draw the diagram.

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What are the DFD levels (DFD-0, DFD-1, and DFD-2).?
In a Data Flow Diagram (DFD), Level 0 is also called the Context Diagram. It
represents the system as a single high-level process with its inputs and outputs,
showing the system in its simplest form without going into the details of internal
processes.
DFD level 0 (DFD-0): Also known as "DFD Context", in this level, we place our system as one
process in the centre and focus on inbound and outbound from external elements.
Example of a DFD of a coffee shop:
The main process is P1 (Coffee Shop), the red dotted cycle represents our trusted zone

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DFD Level 1 (DFD-1): Decomposed of DFD-0 to a main business process. It usually represents
the main functional areas of the system
In our example, we took our Coffee Shop(P1) and separated it into 2 main processes P1.1
(Order Management) and P1.2 (Supplies Management).
As you can see, our trusted zone is still the same (contain all "break-down" of the main
process)
A Level 1 DFD is a more detailed version of the Level 0 DFD (Context Diagram). It breaks
down the single process from Level 0 into multiple sub-processes, providing a clearer
understanding of how the system operates internally.
Key features of Level 1 DFD:
1. Decomposition of the System:
o The single process from Level 0 is decomposed into several smaller, more
detailed processes. These processes represent major functions or tasks within
the system.
o The high-level process from Level 0 is shown as a process at the center, with
multiple sub-processes around it.
2. Data Flows:

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 o Level 1 continues to show how data flows between processes, external
entities, and data stores.
o It expands on the flow of data that was shown in the Level 0 DFD, illustrating
how data moves between individual components of the system.
3. Internal Data Stores:
o Unlike Level 0, Level 1 includes data stores that show where data is stored
within the system (e.g., databases, files).
o Data stores are used to keep track of information for future use by different
processes.
4. External Entities:

o External entities from Level 0 (like users, customers, or other systems) remain
present in Level 1, showing how they interact with the system’s sub-
processes.

DFD level 2 (DFD-2): Decomposed of DFD-1 (same as DFD-1 is to DFD-0), although, usually in
this level, we start looking at the level of services.
A Level 2 DFD is a further decomposition of a Level 1 DFD, providing even more detail about
the internal processes of the system. At Level 2, each of the processes from the Level 1 DFD
is broken down into smaller sub-processes, showing more granular steps of how data is
handled and transformed within the system.

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Key features of Level 2 DFD:
1. Decomposition of Processes:
o The processes in the Level 1 DFD are broken down into more specific sub-
processes.
o Each of these sub-processes represents a specific action or operation that
contributes to completing the overall task.

2. More Detailed Data Flows:

o At Level 2, the data flows between sub-processes are more specific and show
how data is passed through each individual operation.
o This level provides clarity on how data moves from one step to another, often
with greater specificity.
3. Internal Data Stores:
o Level 2 often includes more detailed data stores where intermediate or
temporary data might be held.
o Data stores show where information is stored and retrieved as part of the
sub-processes.
4. Increased Granularity:
o While a Level 1 DFD focuses on the overall flow and major functions, Level 2
goes into the details, breaking down processes into multiple steps and
showing how these steps interact with data.

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Data Flow Diagrams (DFDs) are used to represent the flow of data within a system. They can
be categorized into two types: Physical DFDs and Logical DFDs. Here’s a comparison of the
two:
Physical Data Flow Diagrams
 Definition: Represents the actual implementation of a system, including the
hardware and software components involved.
 Focus: Emphasizes how data is physically processed, including the specific
technologies and processes used.
 Components:

o Processes: Actual physical processes or systems.

o Data Stores: Locations where data is stored (e.g., databases, files).
o External Entities: Users or systems that interact with the process.
o Data Flows: Actual data transfer methods (e.g., files, messages).
 Purpose: To illustrate how the system is built and operates in the real world, often
used for implementation and maintenance.

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  Example Use Case: Mapping out a banking system that includes specific software,
databases, and user interfaces.
Logical Data Flow Diagrams
 Definition: Represents the abstract flow of data, regardless of how the system is
implemented.
 Focus: Emphasizes what the system does and how data moves between processes
without getting into implementation details.
 Components:

o Processes: High-level functions performed on the data.

o Data Stores: Conceptual representations of where data is held.
o External Entities: Users or systems that provide input or receive output.
o Data Flows: The flow of data between processes and stores, often shown in a
more generalized manner.
 Purpose: To provide a clear understanding of the system’s functionality, useful for
analysis and design.
 Example Use Case: Representing a library system’s operations without detailing the
specific software or hardware used.
Summary of Differences

Feature Physical DFD Logical DFD

Focus How data is physically processed What the system does

Components Specific processes and technologies High-level functions

Purpose Implementation and maintenance System analysis and design

Detail Level Detailed, specific General, abstract

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Business case study
DFD for Inventory Management System
0 Level DFD for Inventory Management System

The parameters of the inventory management system are specified in a context diagram
(level 0 data-flow diagram). It illustrates how information moves between the system and its
external entities.
Through DFD level 0, the entire concept of the system is demonstrated in a single process.
For example:

The diagram’s arrows show the direction in which the data input flowed. The major function
is labeled as the “inventory management system,” and its name sparks the discussion under
it.

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The external entities that cause the system to perform a certain function are as follows:
 Customers
 System Admin

As a result, the following illustrations begin at the system’s DFD level 0.

Level 1 DFD for Inventory Management System
The first level DFD of the inventory management system describes each of the system’s
primary sub-processes. This level represents the context diagram’s “extended viewpoint.”

The given example reveals the sub-processes under inventory management. Each of them
complements in showing how exactly the inventory management system works. The sub-
processes are:
 Manage Customer Information

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  Manage Sales Information
 Manage Stocks
 Manage Transaction and Payments

The process of managing customer information includes the gathering of the customer’s
basic data. This data is used for transactions, purchasing, and inventory purposes.

Now, the system also has to keep track and manage the business sales, which happens
when a customer buys something from the store through the system.
In the case of inventories, the system possesses an algorithm that automatically monitors
and manages stocks for the establishment. This enables the admin (owner) to manage the
business efficiently. Its management will be based on the count of products and purchasing
inputs.

The system also manages the transactions and payments of each customer to complete the
overall function. Then the transactions were saved in the database for inventory purposes.

Be aware that the basis for these concepts comes from the basic activities associated with
managing practical inventories. The suggested idea can be used as is or altered to serve your
intended purpose.

You can stop working at this point because you already understand how the project will
function overall. The next level, though, might pique your interest due to what it is and how
it functions.
DFD Level 2 for Inventory Management System

Among the preceding levels, DFD level 2 has the highest concept abstraction. The reason for
this is that this level describes the processes (if any) that fall under the level 1 sub-process.
At this point, let’s focus on a crucial aspect of the data flow diagram.
For example, Databases

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DFD Level 2 for Inventory Management System
The example is supposed to clarify one of level 1’s sub-processes. Instead, the system’s
database (data store) is highlighted more.
The databases of the inventory management system are composed of:

 Customer Database
 Purchases and Sales Database
 Product Database
 Payment Database
These data repositories are responsible for maintaining data security and accessibility. The
system will only provide information to the user who requested it.

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Tools for DFD Balancing
1. Lucidchart− Offers templates and tools to visualize hierarchical DFDs, with features
that support multi-level balancing.
2. Microsoft Visio− A powerful tool for creating structured DFDs, with built-in support
for aligning and balancing flows.
3. SmartDraw− Provides easy-to-use DFD templates that aid in the creation of balanced
diagrams.
4. Visual Paradigm− Offers automated checking for balanced DFDs, helping analysts
avoid inconsistencies.
5. Draw.io− A free tool that supports multiple DFD levels, making balancing easier for
beginners.

Revision Question

Solve Business problem using DFD levels diagram (use case study below)
Case Study: Online Retail Store System

You are tasked with designing an Online Retail Store System that allows customers to
browse products, place orders, make payments, and receive order confirmations. The system
interacts with external entities such as Customers, Suppliers, and Payment Processors.
The system includes the following core functionalities:

1. Customer Registration & Login: Customers need to create an account and log in
before making a purchase.
2. Product Browsing: Customers can browse available products categorized by type.
3. Order Placement: After selecting products, customers place an order, which includes
product details and quantities.
4. Payment Processing: Once the order is placed, the system processes the payment
through a secure gateway.
5. Order Confirmation: After successful payment, the system generates and sends an
order confirmation email to the customer.
Task 1: Create a Level 0 DFD for the Online Retail Store System.
In your Level 0 DFD:

 Show the system as a single process.

 Identify the external entities involved in the system.

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  Show the major data flows between the system and external entities.

Task 2: Create a Level 1 DFD that decomposes the system into sub-processes.

In your Level 1 DFD:

 Break down the main process of the Online Retail Store System into smaller sub-
processes.
 Show the data stores used within the system.
 Illustrate how data flows between sub-processes, data stores, and external entities.

Task 3: Create a Level 2 DFD for the "Payment Processing" process from Level 1.

In your Level 2 DFD:

 Break down the "Payment Processing" process into smaller sub-processes.
 Show the data flows within the "Payment Processing" sub-process.
 Indicate any data stores involved in the payment process (e.g., Payment Records).

Guidelines:
1. Use proper DFD symbols: circles/rounded rectangles for processes, arrows for data
flows, rectangles for external entities, and open-ended rectangles for data stores.
2. Label processes and data flows clearly and logically.
3. Make sure to maintain clarity at each level of decomposition.
4. Ensure consistency in naming conventions across all levels.

Question Objective:
 Assess your understanding of how to decompose a system into manageable
processes using DFDs.
 Evaluate your ability to show data flows between system components.
 Test your knowledge of representing complex processes and data management
within a system.
Study References
https://www.visual-paradigm.com/guide/data-flow-diagram/what-is-data-flow-diagram/
Videos references

How to create a Context-level Data Flow Diagram (DFD)

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https://www.youtube.com/watch?v=ZB2CcVXzWgk

How to create a Level-1 Data Flow Diagram (DFD)

https://www.youtube.com/watch?v=bxKEPdTOvLk&list=PLJ6XhMyJL0eS2cFbI0qWxCoZzUJCo
FEc-
Decomposing And Balancing Different Levels Of Data Flow Diagrams
https://www.youtube.com/watch?v=oBNDn89foac

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