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Normalization Normalization is accomplished in stages Apply rules regarding functional dependencies (the relationships between attributes) First Normal Form: No multi-valued attributes (No rows containing two or more values for a SINGLE attribute) Second Normal Form

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Normalization

  • Normalization is accomplished in stages

    • Apply rules regarding functional dependencies (the relationships between attributes)

  • First Normal Form:

    • No multi-valued attributes (No rows containing two or more values for a SINGLE attribute)


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Second Normal Form

  • 1NF and no partial functional dependencies. Every non-key attribute depends FULLY on the entire primary key only

  • Example—no entries such as:

    • First Last Stud# Course Grade

      • Bill Jones 100 math101 A

      • Bill Jones 100 math201 A

    • Note that here the primary key is Student# + Course and Last depends only on the Student# —not the Course (only part of the primary key).


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Third Normal Form

  • 2NF and no transitive dependencies (functional dependency between non-key attributes.)



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Convert to First Normal Form

  • First step is to identify the repeating groups(multi-valued attributes) in the relation.

  • Eliminate these and the relations are said to be in the 1NF.

  • What do you have to do to eliminate multi-valued attributes?


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To convert to the Second Normal Form, ensure that all the

non-key attributes in the relation are dependant on the key

attributes of that relation.

Foreign Key

SECOND NORMAL FORM


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To convert the relations into the Third Normal Form, we have to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

JOURNAL

TRANSACTION HEADING

JOURNAL

TRANSACTION DETAIL LINES

ACCOUNT TABLE

RELATIONS IN THIRD NORMAL FORM (3NF)


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Transaction Flows in a Manufacturing Firm to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

1

7

Sales

Order

Warehouse

2

8

3

Customer

Billing

Production

4

9

5

Accounts

Receivable

Production

Schedule

6


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Transaction Flows in a Manufacturing Firm to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

Shipping

Warehouse

14

11

Customer

12

13

10

Production

Billing

15

16

Production

Schedule


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Transaction Flows in a Manufacturing Firm to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

20

Purchasing

Receiving

19

17

Production

Vendor

22

21

24

23

18

Payroll

Accounts

Payable

25


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Transaction Flows in a Manufacturing Firm to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

Payroll

Accounts

Payable

27

Customer

Employee

29

28

26

Accounts

Receivable

Accounting

30


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Transaction Flows in a Manufacturing Firm to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

Receiving

31

Warehouse


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Transaction Flows in a Manufacturing Firm to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

  • Even though no two organizations process transactional data in exactly the same manner, most organizations experience and process similar transaction flows

  • Operational transaction flows can be grouped according to common business processes.

  • Most organizations have a sales order process, a billing process, an accounts receivable process, and all other business processes.


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Transaction Flows in a Manufacturing Firm to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

Classification of the Transaction Flows

by Major Business Process

Process

Sales Procurement Operations Firm

Infrastructure

1-7 17 8-9 25

10-11 19-24 12-13 29-30

14 26-28 15-16

31 18


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Components of the Transaction Processing System to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

  • What are the principal components of a transaction processing system?

  • inputs

  • processing

  • storage

  • outputs


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Components of the Transaction Processing System to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

  • What are some examples of inputs?

  • customer orders

  • sales slips

  • invoices

  • purchase orders

  • employee time cards


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Components of the Transaction Processing System to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

  • Processing involves the use of journals and registers to provide a permanent and chronological record of inputs.

  • Journals are used to record financial accounting transactions. Special journals are are used to record similar and recurring transactions.

  • Registers are used to record other types of data not directly related to accounting.


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Components of the Transaction Processing System to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

Source

Documents

Cash

Receipts

Journal

Cash

Disbursements

Journal

General

Journal

Purchases

Journal

Sales Journal


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Components of the Transaction Processing System to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

  • What is an output?

  • It is any document generated in the system.

  • What are some examples of outputs?

  • trial balance

  • financial reports

  • operational reports

  • paychecks


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Designing Accounting Systems to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

  • An accounting system must “fit” a particular organization.

  • What must be taken into account in designing an accounting system?

  • the nature and purpose of the organization

  • its structural and functional characteristics

  • its physical layout, products, and services

  • the personnel who operate the system


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Designing Accounting Systems to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

Hierarchical Model of an Accounting System

Financial Statements

Chart of Accounts

Cycles Revenue Expenditure Production

Sales

Purchasing

Inventory

Application Systems

Payroll

Property

Accounts Receivable

Standard Journal Entries

Identify accounts affected by each application system


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Designing Accounting Systems to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

Hierarchical Model of an Accounting System

Financial Statements

Chart of Accounts

Cycles Finance Financial Reporting

Cash

General Ledger

Application Systems

Consolidation

Standard Journal Entries

Identify accounts affected by each application system


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Designing Accounting Systems to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

  • What are the four stages involved in the design of an accounting system?

  • Design a rough classification of accounts, or chart of accounts, and related financial statements and reports.

  • Review this with management and operating personnel.

  • 3 Finalize statements, chart of accounts, and other reports.

  • Prepare a plan of journalizing and design the necessary business papers and procedures to implement and operate the system.


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Designing Accounting Systems to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

  • A plan for journalizing and posting transactions involves several steps.

  • Step 1: Analyze the natures of activities within the four basic transaction cycles.

  • Revenue cycle

  • Expenditure cycle

  • Payroll cycle

  • Production cycle


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Designing Accounting Systems to eliminate the transitive dependencies – no attribute should be dependent on the primary key of any relation except the one that houses it.

  • It is common to identify a fifth major transaction cycle to group accounts that are not directly affected by transactional activity.

  • Step 2: Group activities within each major transaction cycle into application systems.

  • An application system processes a logically related set of transactions.

  • Step 3:Develop a complete set of standard or recurring journal entries.


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Understanding the activities in a firm allows us to understand the different transaction cycles.

Different business processes may be linked to same transaction cycle.

The first step to start modeling a business process is to understand the activities involved and the information needs of the business process.

Summary


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