Transcript Information Systems

Management Information
Systems
MBA(II) 4th Semester
Transaction Processing Systems &
Management Reporting Systems
Lectures 16,17,18
By: Farhan Mir
Lecture Administration
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Presentation on “NADRA”
Transaction Processing Environment
Transaction Systems
Management Reporting
Case Studies (Where are you?)
Presentation on “NADRA”
• Overview of the Information System and
subsystems
• Presented by one of the Assistant Directors: Syed
Asad Hussain Bukhari
• Need to develop your questions for the
presentation
• Most probably on Wednesday 12th Nov at 10.15
am
• This is an important presentation in the context of
“Information systems facilitating critical
operations in the Government Sector
Transaction Processing Overview
• What are these Systems?
– Support business transactions
– Huge amount of Accounting Data
• Sales and Purchase Transactions
– Student Enrollment (Another example)
• Important Features Regarding Transaction
processing
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Huge amount of transactional data to be handled
Accurate Recording a key necessity
Issuance of important documents
Sensitivity of data (Errors could be heart-breaking)
EDIs could be seen as an extended TPS option
Management knows that it can’t compromise on a
faulty/ inefficient TPS (so you will find management
providing enough resources to improve in this context)
Transaction Processing…
• The Evolution
– The Early Computer Applications were in
Operational/Transactional areas of business
– Most of the organizations still believe that computers
only can help at this level of organizations (no need for
DSS or other applications)
– Almost every modern organization (good ones) have
the TPS, so maintenance and updation the two major
activities for organizations already having TPS
– But linking your partner entities with your systems
have given new life to TPSs
• Transaction Processing, what exactly it is?
– Transaction is basically exchange of goods/services for
money
– Three Major Functions
– Bookkeeping, Issuance & Control Reports
• Bookkeeping
TP Functions
– Records of Business Transactions
– Day-to-day transactions with customers and suppliers
– Airline Reservations Systems keep record of airline
tickets issued
– Student Registration & Fees
– General Accounting Principals used for the purpose
• Issuance
– Documents Necessary for transaction processing
– Invoices, pay-checks, bills, & Reminders etc.
– These documents are not buy-products but are essential
part of a TPS
• Control Reports
– By-product reports for operational control
– Non-scheduled reports & Error Reports etc.
Transaction Processing…
• Transaction Processing Cycle
– Data Entry
• Transactional Data collected, recorded by data operators
• New way of “source data automation”(key-less data entry)
– Transaction Processing & Updation
• Batch Vs. Real-Time Processing
– Document & Report Generation
• Informational Documents (Confirmation docs like Sales
Receipts, Customer invoices)
• Action Documents (purchase order indicates that items
mentioned should be supplied by suppliers to organizations)
• Accounting Statements (Balance sheets, cash flow statements)
• Listings (provide lists of transactions in a specific time period)
– Inquiry Processing
• Order Status checked by customers (most online travel
agencies offer this facility)
• Customer satisfaction notices (in reply to customer concerns)
Transaction Processing Systems
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Payroll
Order Entry
Inventory
Invoicing
Shipping
Accounts Receivable
Purchasing
Receiving
Accounts Payable
General ledger
Payroll Systems
• Payroll are the most common Transaction Systems in
organizations
• Basic purpose is to produce “paychecks” for
organizational employees
• By-products for this system could be tax statements,
social security notices, insurance documents
• Usually seen as an independent and straightforward
system in most organizations
• Employees Work Information is the key:
– Hrs (Time period calculated, that may be in days)
– Rate per Hour (depend upon the type of employee I.e.
permanent Vs. contractual)
– Tax deductions (if applicable)
– Net or Total Income (Eventually Transferred to General
Ledger)
Payroll System
Employees
General Ledger
Payroll
•Rate
•Hours
•Taxes
•Accruals
Organization/
Management
Banks
Order Entry Systems
• Another crucial system working in manufacturing
as well as service organizations
• Customers placing orders for goods/services
offered by your organization
– Demand Orders Vs. Scheduled Orders
• The order processed in the organization
– Authentication (Accuracy Checks)
– Product/service availability check (Stock Level check)
– Full Vs. Partial Orders
• Notification to Customers in case of partial filling of orders
• Rejection Notice
• Notification to Accounts as well
• New & Credit Customers
– Authentication of Credit Customer accounts
– Identification of New Customers
Product/
Service
Info about
Order
Collected
Verification
&
Authentication
Stock
Credit
Authorization
New
Orders
To
Inventory
System
Customers
Customer
Notification
Order Entry System
Account
Customers
Order Entry System…
• Other Factors
– Security Checks
• Specially in the case of a website receiving orders online
– Control Factors
• Size and Capacity (Operational constraints)
– Supporting documentation
• Slips given to customer in case of awaiting orders
– Customer Relation activities
• Display Notices
– Telecommunication playing crucial role in Order Entry
• Laptops and Notebooks used by Salesperson to collect order
and that are transmitted to companies electronically
Inventory System
• Inventory refers to the number of
products/services a company have to sell and also
the materials (usually refers as “Raw Material”) in
stocks
• Inventory not necessarily refer to physical
merchandize but it could be
– Seats available in airline ticketing systems
– No of seats available in certain department of a
university
• Crucial information generated by Inventory
Systems
– Inventory levels
– Products Performance
– Information related to Backorders
Info. From order
entry system
Account Receivable
New Orders
Filled orders
Invoice
Order
Filling
Backorders
Shipments
Inventory
Levels
Not sufficient
inventory
Stock
Material Purchase
Request
Information to
purchase system
Inventory Subsystems (Invoice & Shipment)
Invoice
System
Filled orders
Acc.
Receivable
Invoice
Invoice Slips
Shipments
Shipping
Instructions
Shipment
System
Customers
Account Receivable System
• Credit Customers
– Organizations are often dealing with customers who
have maintained their accounts with organization
throughout the years
• Account Receivable System
– Manages customer purchase record
– Customer payments
– Account Balances
• Features of Acc. Rec. System
– Usually customers are billed monthly
– Updation is done on the credit record of customers
when they made partial or full payments, and they are
also notified about that
Invoices
Accounts
Editing
Receivable
Records
GL
Account
Receivable
Payments
Customers
Account Receivable System
Statements
&
Reminders
Preparation
Purchasing
• Many organizations have a purchase department (also
known as procurement department)
• Many other departments are (at times inconveniently)
dependent upon this department for required items
• The Process
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Starting with a purchase request from stock
The process is followed by vendor-selection process
Formal Purchase Order is usually derived
Vendor selection is mostly done informally but usually a
formal procedure is often carried out
– Once the purchase order is filled the initiated order is closed
out for further procedures
• Most of the organizations carry this process
electronically
Purchasing System
Purchase Request
Vendor
Selection
Products
Informal &
Formal
Communication
Purchase
Order
Suppliers/
Vendors
Closing
Out
Orders
Goods
Received
Receipts
Inventory
System
Purchasing Subsystem..(Receiving)
• The Basic Function
– Receive Goods
• Receive goods from
suppliers
Purchase
Orders
Vendors
– Inspect
• Checking of contents
against the purchase
order
– Accept or Reject
• Checking the goods
either as damaged or
satisfactory
Goods
Received
Receipts
Account Payable
• Most of the Large Organization maintain accounts
with suppliers (usually seen as partners)
• The system handles payments to suppliers
• Crucial Information Handled by the System
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Invoices from suppliers
Time allocation for payment
Checks to pay invoices
Cash Management (An Additional/ support system)
• System has to initiate as soon as goods are
received from suppliers
• Goods slips and invoices validated
• Account Payable then eventually transferred to
General Ledger
Accounts Payable
Statements &
Notification
Validation
Process
Vendors
Payments
Account
Payable
Payments