1 California State University, Fullerton Chapter 10 Business Operations.
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Transcript of 1 California State University, Fullerton Chapter 10 Business Operations.
2California State University, Fullerton
Increasing Business Operations Efficiency To be competitive today, most
businesses require some form of computer information system for their basic operations.
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Transaction Processing Systems The main type of information
system used for operational support in a business is the transaction processing system (TPS).
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Transaction Processing System Structure
Three elements of a Transaction Processing System (TPS):
1. Process transactions that affect these records.
2. Keep records about the state of the organization.
3. Produce outputs that report on transactions that have occurred, that report on the state of the organization, and that cause other transactions to occur.
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Transaction Processing System Functions TPS consist of four main functions
to accomplish their purposes. They are:
1. Input function2. Storage function3. Processing function4. Output function
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Input Function Before transaction data can be
brought into a transaction processing system, it must be acquired from its source – a step called data capture.
Data is often captured from a source document.
Data once captured, it is put into the system – a step called data entry.
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Input Function (cont’d.) As data is entered into the system,
a program must check it for errors, a step called data validation.
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Storage Function Data in a transaction processing system
is stored in data files and databases. Two types of data commonly found in
transaction processing systems:1. Master data – is the data that is maintained
by the system.2. Transaction data – is data about the
transactions that have occurred. Transaction data is used to update master data.
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Processing Function Processing involves manipulating data
within the system. Two operations in the processing
function: Computation – doing calculations with
data. Decision making (logical operations) –
checking a condition that causes processing to continue in different ways depending on the result of the decision.
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Output Function Output from a transaction processing
system can be displayed on a screen or printed on paper.
Two types of reports1. Periodical report – is produced periodically
1. Detail report – lists detailed information2. Summary report – contains summarized
information
2. Exception report – is produced when an exception to nom occurs
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Controlling Transaction Processing Systems Procedures to ensure the
completeness of the data processing and to minimize the chance of error are called controls. They include: Control Totals
Batch Totals Hash Totals
Audit Trails Backup and Recovery Procedures
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Control Totals A control total is a number that is
computed when data enters a system and then computed again after the system has processed the data.
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Audit Trails An audit trail is a way of tracing
the origin of data through a system.
A good audit trail is one in which someone can start with the output and go back through the system to the source document, or vice versa.
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Backup and Recovery Procedures Backing up means that the data is
copied periodically to another storage media.
Recovery means that the backup copy of the data can be used to re-create the original data stored on the system.
Without adequate backup and recovery procedures, there is a great risk of losing data permanently.
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Processing Data in Transaction Processing Systems Two basic approaches to processing
data in a transaction processing system:
1. Batch Processing (BP) – transactions to be processed are prepared in a form understandable by the computer before actual processing begins.
2. On-Line Transaction Processing (OLTP) – transactions are processed and the related master files are update immediately as the transaction data is entered.
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Basic Business Information Systems Eight basic information processing
activities:1. Entering customer orders2. Billing customers3. Collecting customer payments4. Keeping track of inventory5. Purchasing stock and materials6. Paying bills7. Paying employees8. Reporting financial information
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Entering Customer Orders An order entry system permits
entry of customer orders for goods and services and prepares the orders in a form that can be used by the business.
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Entering Customer Orders (cont’d.) Once orders are entered, the
following questions must be answered: Does the business have sufficient
inventory to fill the order? Should the business extend credit to
this customer or require that the customer pay in advance?
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Billing Customers The purpose of a billing system is
to prepare the customer’s bill or invoice.
To prepare the invoice from the sales order data, two types of master data are required:
1. Customer master data2. Inventory master data
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Collecting Customer Payments The accounts receivable system is
used: To keep track of money owed To the business by its customers To record customer payments for invoices.
To produce the outputs, two types of stored data are used:
1. Accounts receivable data2. Customer master data
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Keeping Track of Inventory The inventory control system is used:
To keep track of the business’s inventory To indicate when inventory should be
reordered To compute the value of the inventory.
The stored data needed in this system is the inventory master data.
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Purchasing Stock and Materials The purchasing system is used:
To determine the best suppliers (also called vendors) from which to purchase items.
To Prepare documents, called purchase orders, which indicate to the supplier what items are wanted.
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Purchasing Stock and Materials (cont’d.) To prepare the purchase order,
two types of information are required:
1. Inventory master data2. Supplier master data
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Paying Bills The accounts payable system is
used: To keep track of money owed by the
business for purchases To pay suppliers for items purchased To provide reports of accounts
payable to other functions of the business.
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Paying Bills (cont’d.)
To produce the outputs, two types of stored data are used:
1. Accounts payable data2. Supplier master data
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Paying Employees The payroll system is used:
To prepare paychecks for employees To provide reports of payroll
To produce the outputs two types of data are required:
1. Employee work data2. Employee master data
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Reporting Financial Information The general ledger system is used:
To maintain the business’s financial accounts
To prepare financial statements To produce the financial
statements, the general ledger system uses: General ledger data
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Accounting Information Systems Accounting Information Systems
(AIS) support the accounting function. Several commonly used AIS systems are: Fixed asset accounting Budgeting Tax accounting
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Financial Information Systems Financial information systems
provide necessary support for the finance function. Some common financial information systems include: Cash management Capital expenditure analysis Financial forecasting Portfolio (investment) management Credit analysis
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Marketing Information Systems Marketing information systems assist in
the marketing function. Common marketing information systems include: Sales analysis Sales forecasting Marketing research Direct mail advertising Electronic commerce Sales force automation or Customer
Relationship Management (CRM).
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Manufacturing Information Systems Manufacturing information systems
provide services to support the manufacturing function. Some common manufacturing information systems include: Production scheduling Materials Requirements Planning (MRP) Manufacturing Resource Planning
(MRPII)
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Manufacturing Information Systems (cont’d.)
Just-In-Time (JIT) Computer-Aided Design (CAD) Computer-Aided Manufacturing (CAM) Robotics Computer-Integrated Manufacturing
(CIM)
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Human Resource Information Systems Human Resource Information
Systems (HRIS) support the human resource function. Common HRIS include: Performance appraisal Skills inventory Benefits administration Job applicant tracking