A state diagram is an analysis tool that can be used when a system (or component of a system) passes through a series of discrete states during operation. Trivially, the ATM itself goes back and forth between two states - RUNNING and STOPPED. More interesting, though, is the series of states an individual Session goes through as it gets the customer's PIN and repeatedly gets transaction choices and performs them. A state diagram for a Session is given below. It would also be possible (and perhaps desirable) to construct similar diagrams for transactions. (Is an "exercise left for the student" lurking here?)
 
   [ Intro ]
   [ Requirements ]
   [ Domain Objects ]
   [ Use Cases ]
   [ State Diagram ]
   [ Interaction Diagram ] 
   
   [ CRC Cards ]
   [ Class Diagram ]
   [ Class Desc. Forms ]
   [ Operation Desc. Forms ]
   [ Code ]
   [ Executable ]