WEEK 2 TRANSACTION PROCESSING AND ENTERPRISE RESOURCE PLANNING SYSTEMS

Question 1

Transaction processing system objectives

(CCSS) - ie. what predominantly used for

Answer 1

1. carrying out day to day transactions
2. Collecting, capturing, processing, editing, updating, storing the data, and generating the required reports or documents which would help in making timely decisions
3. Supplying the necessary information to the organization, which would enable proper functioning of the business.
4. Supplying data to other information systems

Question 2

Characteristics of TPS

Answer 2

1. Rapid processing
2. Reliability of processing
3. Standardization
4. Controlled access

Question 3

Characteristics of a Transaction ( ACID)

Answer 3

Automicity
Consistency
Isolation
Durability

Question 4

Design of a TPS based on

Answer 4

• execution details of the transactions
• data content and format; and
• rules and policies [e.g. POPI Act] to be enforced

Question 5

TPS are capable of

Answer 5

• enforcing rules and work procedures
• detecting errors, such as missing data, invalid data, and inconsistent data; and
• automating certain decision-making functions.

Question 6

PHASES OF THE DATA PROCESSING CYCLE

Answer 6

phase 1 : Data input
- data collection

phase 2: Data processing
- data editing
- data correction
- data manipulation
> 4 types ( CRUD ) - creating, reading, updating, deleting
> 3 methods - batch , online real-time, online batch

phase 3: Data storage
- storing and retrieving data

phase 4: Information output
- Documentation process

Question 7

Advantages of batch processing

Answer 7

Cheaper

The batch systems can manage large repeated work easily.

Repeated jobs are done fast in batch systems without user interaction.

You can assign specific time for the batch jobs so when the computer is idle it starts processing the batch jobs i.e. at night or any free time.

Batch systems can work offline so it makes less stress on processor

You don’t need special hardware and system support to input data in batch systems.

Sharing of batch system for multiple users

Question 8

Disadvantages of batch processing

Answer 8

Time delays

Computer operators must be trained for using batch systems.

It is difficult to debug batch systems.

If some job takes too much time i.e. if error occurs in job, then other jobs will wait for unknown time.

Question 9

Advantages of real-time processing

Answer 9

Accessibility.

Errors within the organisation are known instantly.

Service improves dramatically

Cost savings

Better sales insights, which could lead to additional revenue

Keep up with customer trends

Question 10

disadvantages of real-time processing

Answer 10

The server must always be online.

This can be expensive (processing time and resources)

Less secure

Question 11

computer-based storage concepts

Answer 11

entity
attributes
field
record

Question 12

ERP system integrates which activities?

Answer 12

revenue cycle, expenditure cycle, production cycle, HR/ payroll cycle, General ledger and reporting system

Question 13

Advantages of ERP systems

Answer 13

Integrated enterprise-wide single view of the organization’s data which streamlines the flow of information

Data captured once (i.e., no longer need sales to enter data about a customer and then accounting to enter same customer data for invoicing)

Greater visibility and monitoring capabilities for management

Improve access of control of the data through security settings

Standardization of procedures and reports

Improves customer service

Increases productivity through automation

Question 14

Disadvantages of ERP system

Answer 14

costly

takes significant amount of time to implement

customizing and standardizing a business process

complexity

vendor dependance and lock-in 
user resistance ( employees resistance )

Question 15

Core Modules and function of ERP

Answer 15

Financial (G/L and Reporting)

Human Resources and Payroll

Production

Sales

Purchasing

Manufacturing

CRM and SRM