Compare and contrast batch processing and online processing, outlining the meaning, advantages and...
Preview:
Citation preview
- Slide 1
- Slide 2
- Slide 3
- Compare and contrast batch processing and online processing,
outlining the meaning, advantages and disadvantages of the two.
Which one would you recommend for a manufacturing firm where the
accounting function is decentralized?
- Slide 4
- Batch processing Source documents are grouped into batches and
control totals calculated. Periodically (say after some minutes,
days, weeks or months), the batches are entered into a computer
system, edited, sorted and stored in a temporary file. The
temporary file is run against the master file to update the master
file. Output is displayed/printed along with error and transaction
reports.
- Slide 5
- Batch Processing A batch is a group of similar transactions
that are accumulated to be processed together. Under batch
processing, the data is collected before any processing can take
place; it is then entered into the system in one go (a batch of
data) and processed. Batch processing therefore is when the
computer does not carry out any processing/ does not produce any
output until all the inputs have been collected in.
- Slide 6
- 1. Customer billing 2. Payroll systems 3. Preparation of
financial statements
- Slide 7
- Payroll systems The hours worked by each employee need to be
collected first. These will be fed into the computer hebdomadal,
weekly or monthly for the computer system to calculate pay and
produce pay slips.
- Slide 8
- Fig 1. system flow chart to show batch processing in payroll
systems. Input hours worked Transa ction File Calculate pay Master
file Pay slips
- Slide 9
- Advantages of batch processing 1. Organizations can increase
efficiency by grouping large numbers of transactions together
rather than processing each separately (economies of scale). 2.
Batch processing allows the system to transfer resources for other
purposes when the system is not busy. 3. It is possible to perform
repetitive tasks on a large number of pieces of data rapidly
without needing the user to monitor it.
- Slide 10
- Online Processing Data is processed by the system as it is
entered. The master file is then immediately updated. A subset of
online processing is real time processing. Under real time
processing, response time and processing speed are enhanced to
effect output before the next input is done.
- Slide 11
- 1. Airline booking systems 2. Patient monitoring systems 3.
Games 4. Order processing
- Slide 12
- Order Processing An order is entered into the system. The
system checks whether there are any inventories at hand in order to
accept the order. If there are no inventories the system stores the
order as an open order in the open order file, to be closed when
the order is met, and then prints/displays open order report. If
there are inventories, the system accepts the order and
prints/displays the closed order report. The master file is updated
each time an order is closed, to show the implied reduction in
inventory.
- Slide 13
- Fig 2. system flow chart to show online processing in airline
order systems. Input order Authorize order Inventory Master File
Closed orders Open orders Open orders
- Slide 14
- Advantages of online processing 1. It enables the user to input
data and get the results to the processing of that data
immediately. 2. Master file is updated immediately which enables
the provision of timely and relevant information.
- Slide 15
- Differences between online and batch processing Batch
processing Online processing A lag exists between time when the
economic event occurs and when it is recorded. Generally fewer
hardware, programming and training resources are required. Certain
records are processed after the event to avoid operational delays.
Processing occurs when the economic event takes place. More
resources (hardware) and dedicated processing capacity and quality
are required. All records pertaining to the event are processed
immediately.
- Slide 16
- Recommendations for processing method in a manufacturing entity
where the accounting function is decentralized.
- Slide 17
- Online processing Since the accounting function is
decentralized, the entity will find it desirable to use mainly
online processing since the master files they share need to be
updated as events occur in order to make timely decisions. For
example, the accounts receivable master file will need to be
updated as soon as credit is granted to a customer in order to
avoid granting further credit to undeserving customers.
- Slide 18
- Batch processing However, the firm may also employ batch
processing in other operations in order to enhance operational
efficiency. For example, updating the sales journal file may be
done using batch processing during lunch time or any other time
when the system is not busy.
- Slide 19
- Questions, Comments, Additions The flow is welcome to ask
questions, comment on and, or add to the presentation.
- Slide 20