Analyzing the Value of an Info System

Pete Kloak

12/22/10

Info Tech

Task 2

 Transaction Processing System (TPS) is used to control all transactions made within an organization. Whenever someone internally in the business makes a transaction, it will be recorded in a TPS report. Examples of certain exchanges within an organization are withdrawing money, making a payment to a creditor, a customer making a purchase or paying an employee. Any type of exchange via cash from person to person is considered a transaction and all of these transactions that affect the organization get recorded for so the organization can stay organized.

 These types of files (TPS reports) are very classified information about the organization. These files are given high security and carefully stored so none of the data can be altered in any way. Obviously if this data was altered the company could be hurt dramatically in a financial sense. Normally only managers are able to deal with these files and these managers verify the data, ensuring that no conflicts arise. All of the purchasing and sales data is all present within these files so every company should have a financial system similar to this to be able to produce these reports.

 The action of chaining when a company is manufacturing goods, plays a very important role to the organization. The TPS plays a role throughout the steps in chaining and is frequently being recorded with every financial action. When an organization is manufacturing it has a flow of ‘upstream management’ as well as ‘downstream management’. Both of these practices contain a chain of action that can benefit the organization if done carefully and precisely. For upstream management raw materials are extracted for whatever the companies specialization is, then these materials will be transported, via inbound logistics and finally these materials end up at a warehouse and/ or storage facility, this last step is referred to as raw material inventory control systems. After this step these materials find themselves at production where the goods are made for consumption, this is referred to process control systems. Downstream management plays a large role in an organization as well, these practices come after production. Once the goods are out of production they are sent to finished product storage, which is also referred to as automated storage and retrieval systems, where the goods are checked and regulated. Then the goods are transported again through outbound logistics, also known as distribution planning systems, the goods are now on the market after being shipped to stores. Once these goods are on the shelves marketing and sales play a role to influence the customer to spend money on these products, this action is known as promotion planning systems. And finally after all of these steps are completed the business must have a customer service line that enables the customers to know what their money was spent on and any questions or problems the customer may have, this step is known as customer service tracking and control systems. All of these things affect how the TPS is run as well. These steps are all necessary for a beneficial product or business.