Batch Processing (AIS).
There are two types of data processing cycle/methods in an Accounting information system, One is known as Batch processing method and the other is a real time processing method. The batch is a group of similar transactions that are accumulated over time and then processed together. The transactions must be independent from one another during the time period over which the accumulation of transaction has been done in an organized order which is appropriated for batch processing. There is always a time lag exists between the event and the processing. In batch processing the transaction data is stored in a transaction file till the performance of master file update. The storing of transaction file may occur through online or offline entry of data.
The time lag is one characteristic used to distinguish between batch and real-time systems. Explain. Give an example of when each is a real choice.
Lag time is the major characteristic that can distinguish batch processing from real time processing because batch processing is used only when there are a large number of files or where a quick response is not needed. It is a non-continuous/ Non real time processing of data, materials or instructions. The files that are needed to be transmitted are gathered over a period of time and then send together as a batch and are processed with minimal human interaction. While real time processing is that type of data processing which appears to take place or actually taking place , instantaneously upon receipt of a command or data entry, It must be executed within a strict time limit or strict response time.
Batch processing will be a realistic choice in the following situation.
The credit card companies use Batch Processing for the bill processing of their credit cards, The credit card owner does not receive a separate bill for each separate purchase through their credit card. The bill is created through a batch process which store the data there automatically. At the end of the billing month the data is collected as a batch process and the card holder easily gets an accurate bill for the transactions done by him throughout whole month.
Real-time processing system will be a realistic choice in the given situation.
The operating system that is used in a manufacturing or production concern industries are the best examples of real-time processing systems, because in these industries a quick response is needed to be recorded so that proper measures should be taken in that regard. These industries need to record the response of an event at a predetermined time.
Resource use is one characteristic used to distinguish between batch and real-time systems. Explain.
In real time system the user initiates transactions through his interaction with usually an input screen and then send the data for the purpose of its processing. The response comes immediately for the next cycle of reading that is input, sending, processing and response. While on the other hand in the batch processing the input records are held in a file or files . Those inputs goes through the batch processing which deals with all records without any further interactions. The batch processing is done without any user interaction while in the real –time system there is a need of user interaction for the performance of all tasks.
A good example of batch processing is a payroll processing of a national business in which nearly every master file record is affected. The data are collected over a period of time and then it is verified by the clerks here the term verification means that the data is input by some individual then the computer made a comparison of both the inputs and process it centrally. After all the processing output is produced which is usually a printed media as payslips or invoices, Although this trend is changing day by day with the invent of the web.
On the other hand there is really no such thing in the real-time system, The best one can get is a few milliseconds from input to respond. Such fast systems are used in a critical system that control air crafts and the manufacturing of dangerous and sensitive compounds. These systems are usually based on electronic media and have nothing to do with the printing information or anything else except some time when it is required by statues or law of the state.
Discuss how batch processing may be used to improve operational efficiency.
The major reason that the people prefer to use a batch processing is its quality of making a work more efficient. As an individual one can be more efficient if he is processing multiple items Consecutively for example it may take lots of time if we open our bank account and log in to it separately again and again for each transaction. If we log in to the account once and settle all the bills at a single login then we saved lots of precious time which might lost in settling each transaction separately.
It can improve the operational efficiency by allowing the sharing of computer resources among the different users and make the time of job processing more effective by shifting it to the less busy hours of a business activity or event. It avoids the idling of different functions and operations performed by a computer which may cause in a system which is effected each and every minute of its operations by the interruption caused by human interactions.
If an organization processes large numbers of transactions that use common data records, what type of system would work best (all else being equal)?
When there is an organization that processes a large number of transactions then the most appropriate system for it is a batch processing system because it is cost and time efficient an can process a large sized data in less time and more accuracy. A computer that uses batch processing can process large batches, instructions, volumes and files with sequentiality. When a data starts processing then It processed a large number of transactions without any interruption and the computer can be left running without any human supervision and combines the transactions into a batch rather than processing it individually which will reduce the chances of error occurrence. In spite processing of large number or transaction a batch processing system provides an opportunity for a good audit trail. It is good for processing of a common record data because it is designed to process a common set of data in such a way that there is no chances of duplicating of data left and all the data is processed in its original forms and gives a unique output for each data.
Bibliography
[ There are no sources in the current document. ] http://www.opticompinc.com/why-batch-processing-isnt-always-most-efficient/ http://ais.its.psu.edu/services/batch/default.asp
Digital computing timelines by Bell, Gordon (1985).
System Analysis and design by Gerald Gerald V.Post and David L.Anderson. http://www.innovativesystems.com/technology_solutions/mdm_batch-realtime.php Accounting Information system 8th Edition By James A.Hall.