Chapter 5

DATA PROCESSING
 LESSONS OBJECTIVES

1. Discuss advantages of networking.

2. Various methods of data processing.
3. Draw backs and special features of data processing
4. Computer networking and types of networking
 DATA PROCESSING SYSTEMS
The single user system VS Batch processing

The single user system It is one-man show and is indicative of one of the
earlier stages of computer development. Here only one person can work at a
time. Hence, especially if the machine is meant for the use of many persons,
much computer time is wasted waiting for one person to finish and debug his
program on the machine.
Batch Processing This is an old system but even today it is used for data
processing in computing machines, in which the capacity of the CPU is
limited. In this system, the data is collected for a predetermined period of time,
after which it is accumulated in sequential manner. A batch of transactions is
entered onto a computer media by data entry devices. In batch processing
system the emphases is on maximizing the computer resource utilization.
THE ELEMENTS OF CYCLE FOR BATCH PROCESSING

Data Capture

Data transmission

Data transcription, verification and validation

Job Processing

Job assembly putting together the batch for processing

Job disassembly (separating out the reports after processing)

Reports and distribution

 DATA PROCESSING SYSTEMS
Examples of applications which can use batch processing are:
I. Payroll Processing: In payroll processing the data are collected for a
stipulated period of time usually one month and processed at regular
intervals after which payments are distributed to all the employees.
II. Telephone Billing: Here the subscriber does not get a bill for every call
he makes. Instead, his calls are recorded at a centralized place and are
processed on a predetermined period of time to prepare his bills.
III. Financial accessing
IV. Budgeting and Budgeting control
V. Production planning and control
VI. Project planning and control
 DATA PROCESSING SYSTEMS

Drawbacks in Batch Processing

I. Time gap between capture of data
II. Time consuming to debug
III. Delay in generating reports
 DATA PROCESSING SYSTEMS
Multi-programming
- In batch processing, programs are executed one by one. The memory
and ALU of the machine are not being fully utilized. To get the
maximum use of the machine, multiprogramming system is used.
- “Multi-programming enables to store and execute more than one
program in the CPU at the same time”
- The purpose of multi-programming is to increase utilization of the
computer system as whole.
- Multi-programming is defined as execution of two or more program
that all reside in primary storage. Since the CPU can execute only one
instruction at a time, cannot simultaneously execute instructions from
two or more program.
Multi-programming
Online Processing
- Online processing refers to processing of individual transactions
as they occur from their point of origin as opposed to
accumulating them into batches.
- This is made possible by such direct access devices as Magnetic
disk and Magnetic Drum and number of terminals connected to,
and controlled by a central processor.
- In this way, various departments in a company can be connected
to the process by cables. If operating companies are a number of
miles away from the processor then they are linked by means of
telegraph or telephone lines.
Multi-programming
Special features online processing
I. This method reduces the data entry errors, because the
user who generates, the data is the one who keys it in.
II. This system validates data at various points and ensures
that correct data is being entered.
III. Under this method the system performs the whole task in
a conversational 'manner helping the data entry process.
IV. In on line processing, one has the latest update
immediately.
Multi-programming
On-line Applications
Systems are being developed and are already in use for
a wide range of application in different type of
industries described below:
1. Electricity and Gas Boards: By means of terminals
situated in showroom it is possible to inform
perspective customers of the availability of the
appliances in response to their inquiries or an online
electric bill.
 Multi-programming
On-line Applications
2. Banking: It is possible to inform bank customers of the
status of their accounts in response to an inquiry by
accessing relevant file using on online terminal.
3. Tour Operators Reservation Offices accept telephone
inquiries from travel agents regarding the availability
of holidays in respect of client's inquiries. By means of
terminals, the availability of the required holidays can
be checked and booked immediately.
 Multi-programming
On-line Applications
4. Stock Exchange: Terminals located in major stock
Exchange through out the country and the offices of
participating brokerage from enable the speedy
processing of share dealings.
5. Stock Control: Terminals located in warehouse provide
the means for automatic recording of stocks, updating
of stock records, reservations, follow-up of outstanding
orders and the printing of picking list etc.,
 Multi-programming
Benefits of Online processing system are as follows:

1. Integration of clerical work with the computer: On-

line systems assist in harnessing activities of clerical staff
to the computer by the use of terminals. They can have
access to information which they require for the efficient
performance of their jobs in dealing with customer
enquiries and order processing
 Multi-programming
Benefits of Online processing system are as follows:
2. Elimination of tedious tasks: Routine clerical tasks are
replaced by terminal operations providing a greater degree
of job interest, operating efficiency and job satisfaction.
3. Reduction in paper work: Volume of paper work
generated by normal clerical system and batch processing
system is relatively high. Online systems reduce the volume
of print out required for management report since the
information can be displayed on terminal screen on demand.
 Multi-programming
Benefits of Online processing system are as follows:
4. Improved accuracy: As terminal messages are checked
accuracy before being transmitted to the computer by data
validation programs, the quality of formation in a system
increases as the input errors are reduced. Hence, information is
more reliable.
5. File updating improved: Master files are more easily updated
by terminal key board with regard to transaction data, as special
runs do not require to be set up as is the case with batch
processing applications.
 Multi-programming
Benefits of Online processing system are as follows:
6. Management Information more readily available:
Management information becomes more readily available by
direct access facilities which enables managers to obtain a greater
degree of control to the operations for which they are
responsible.
7. Improved customer services: Improvements in the level of
customers service can be expected in these systems concerned
with appliances sales, booking systems and accounting enquiries.
 Multi-programming
Benefits of Online processing system are as follows:
8. Reduced data preparations cost: On-line system dispense with
the need to convert human sensible data into machine sensible data
thereby eliminating punching and verifying operations. This saves
time and the cost associated with such operations.
9. Real Time Processing: It is also called as interactive mode or
Direct mode. This system makes the user to have direct contact
with the computer through his terminal. It is an alternative
approach to an on-line processing system. Here the data is
processed, the instant it occurs. There is no delay between the time
data is available, and the time it is processed.
 Multi-programming
Benefits of Online processing system are as follows:
10. Time sharing: In this method the individual user has an
independent local terminal. The terminal is connected to a
main computer, which does all the processing work. Under
this system each person on a terminal has to log into the
system. The system then lists him in the order in which he
has logged on. Once everybody has logged on, the system
will permit the first in the list to run his program. The time
given for running the program is generally 10 milliseconds.
It is called a time slice or a time slot or a quantum.
 Multi-programming

Benefits of Online processing system are as follows:

Advantages of Time-Sharing System
1. Simultaneously several users can be served.
2. All the users have the same priority.
3. All the users get equal amount of processor time.
4. The interaction with the running programs is possible.
 DATA PROCESSING SYSTEMS
Time-Sharing Vs. Multi-programming
-The difference between these two methods is that in "time,
sharing" the CPU links only one terminal at a time and its total
time is shared uniformly by all the users. But in
multiprogramming, the CPU links more than one terminal or
other peripherals at a time.
-Therefore, multiprogramming more efficiently utilizes the main
memory and the central resources than time sharing. Time
sharing is employed only for multi terminal system whereas
multi programming is meant both for single as well as the multi
terminal system.
 DATA PROCESSING SYSTEMS
Distributed Processing
- Distributed data processing system is a network of several
computers in remote stations, each of which is linked to a single
host computer. The larger, central computer maintains the firm's
master data base and system log. Distributed data processing
system is a network of several computers in remote stations,
each of which is linked to a single host computer. The larger,
central computer maintains the firm's master data base and
system log. Each remote system is a fully independent computer
that maintains its own local data base in addition to
communication with the master computer.
 DATA PROCESSING SYSTEMS

Two types of Distributed Processing

1. Plain distributed processing - shares the workload
among computers that can communicate with one
another.
2. True distributed processing - has separate computers
perform different tasks in such a way that their
combined work can contribute to a larger goal, such as
the transfer of funds from one bank to another.
 DATA PROCESSING SYSTEMS

Features of Distributed Processing

I. Decentralized computer system
II. Interconnected by communication network
III. More reliable
IV. Since more than one computer is used in the network,
it is economical.
 DATA PROCESSING SYSTEMS
Advantages of Distributed Processing
I. Local computers on the network offer immediate response
to local needs.
II. Systems can be expanded in modular fashion as needed
because many small
III. Computers are used as the system is not dependant on
large unit that could shut down the network if it failed.
IV. Equipment operating and managing costs are often lower.
V. Minicomputers tend to be less complex than large systems;
therefore, the system is more useful to local users.
LET US SUM UP
 There are various methods of data processing such as the single
user system, Batch processing, Multi-programming, On-line
Processing, Real Time processing, Time sharing concept,
Distributed processing.
 In batch processing data is accumulated and then processed.
 In online processing data is not accumulated, instead it is
entered and executed immediately.
 Real time processing is an interactive or direct mode. In this type
of processing there is no delay in time between the availability of
data and the time taken for processing.