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Transaction Processing Systems. Cross-functional crosses different functional business areas (accounting, finance, inventory management, human resources, etc.) Transactions can include: Banking, Financial, Stocks, etc. Purchases & Orders (phone, Internet, direct)

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transaction processing systems
Transaction Processing Systems
  • Cross-functional
    • crosses different functional business areas (accounting, finance, inventory management, human resources, etc.)
  • Transactions can include:
    • Banking, Financial, Stocks, etc.
    • Purchases & Orders (phone, Internet, direct)
    • from Airline reservations to Toll Booth Operations
value of tps
Value of TPS
  • Efficiency
    • Paperless Transactions
    • Reduce manual data entry (errors)
    • Speed up transaction process
    • Elimination of redundant steps
  • Online Transaction Processing (OLTP)
    • Real-time systems, immediate feedback
    • Real-time Reports and databases updates
batch vs real time
Batch Processing

transaction data are accumulated

processed periodically

used to be necessary because of synchronization problems

Real-time Processing

also called online

immediately processed

Syncronization issues

What if two people order the same product at the same extact time, but there is only one product left?

Batch vs. Real-time
processing cycle
Processing Cycle

Data Entry

  • Collecting and capturing transactions
  • No longer manual:
    • Old technologies Bar Codes, Magnetic Strips (credit cards)
    • New technologies RFID, Smart Cards,
processing cycle5
Processing Cycle

Transaction Processing

  • Synchronization Issues:
    • Which transaction to process next.
    • Breaking ties
    • Dependencies
      • Can’t schedule delivery before credit approval.
processing cycle6
Processing Cycle

Database Maintenance

  • TPS helps ensure the databases are up-to-date and correct.
  • Multiple databases
  • A single purchase
    • decreases quantity – Inventory Database
    • decrease credit – Credit Card Database
    • increase sales – Sales Database
processing cycle7
Processing Cycle

Document/Report Generation

  • Examples
    • purchase orders
    • pay checks
    • sales receipts
    • invoices
    • bank statements

An MIS also generates reports, but TPS reports are operational (no analysis).

processing cycle8
Processing Cycle

Inquiry Processing

  • Examples
    • when was a purchase made
    • does a customer have any credits on their account
    • was an item scheduled for delivery
    • was a package signed for

An MIS also allows for inquiries, but the information available is summarized (or aggregated), i.e., What are the total sales for a whole department? What is the best selling product?

slide10

Invoices

Products

Shipped Orders

Customer Places an Order

Customer

Actual Order

ScheduleRoutes

Planned Shipments

Picking List

Inventory Status

0

Invoicing

ShipmentExecution

Order EntrySales Config.

Routing &Scheduling

ShipmentPlanning

InventoryControl

slide11

Invoices

Products

Inventory Data

Product Data

Order Data

Customer Data

Prices

Fulfilled Orders

Shipped Orders

CreditStatus

Inventory Levels

4. NotifyCustomer

3. AuthorizeCredit

1. Collectorderinformation

2. VerifyProduct #’sIn-stock

Customer Places an Order

Orders

Orders

Customer

Customer

Actual Order

ScheduleRoutes

Planned Shipments

Rejected Orders

BackOrders

Start of Transaction

OpenOrders

Picking List

Notification

Back Orders/Rejected Orders

Orders ready to be fulfilled

Inventory Status

Order EntrySales Config.

0

Invoicing

ShipmentExecution

Order EntrySales Config.

Routing &Scheduling

ShipmentPlanning

InventoryControl

transaction processing system

0

Transaction Processing System
  • An Order Entry System affects
    • accounting data
    • inventory data
    • customer data
    • financial data
    • invoicing data
  • Enhanced Feedback:
    • Inventory is updated at the point of ordering, not at the point of fulfillment. Eliminates surprise backorders.
enhanced feedback

0

Enhanced Feedback
  • Reduce Transactions
    • Customer can be notified of back order before credit authorization.
    • Customer could cancel or change order
    • Avoids un-necessary transactions
      • Credit check/charge on an order that might be canceled.
  • Faster Feedback
    • Pricing or production levels could be set based on current inventory and order status
    • Increase price if production can’t keep up with orders
    • Decrease price if inventory levels are high.
slide14

Product/Price DB

InventoryDB

OrderDB

CustomerDB

Various Reports

0

Manager

MIS/DSS

ChangeProductPrice

Inventory Data

Production Data

Updates/ additions to Operational Data

OrderData

TSP

PCS

AssemblyLine

CustomersGrunts