Transaction Processing
System
P r e p a r e d b y : M u h a m m e d J a ff e r
Peshawa Saeed khdir
Hazhar Jamal
Supervisor : M r s . N a j a t Yo h a n a D a n h a
2020 - 2019
OUTLINE
o Introduction
o Meaning
o characteristics
o Types of transaction processing system
o Functional areas of transactional processing system
o Purpose of TPS
E rbil Polytechnic University
Information Systems Engineering Department 2
INTRODUCTION
Generally every business involves transactions , that is when ever
people make an exchange it is called as transaction.
Transaction processing system supports day to day operations of the
business.
Examples of transactions include:
o purchases at store
o withdrawing money from bank
o making payments
This system help the companies to conduct the operations and keep track of activities
It was first developed in 1950 in accounting departments of major corporation
E rbil Polytechnic University
Information Systems Engineering Department 3
MEANING
The primary purpose of transaction processing system is to record, process,
validate, and store transactions that take place in the various functional
areas of a business for future retrieval and use.
Transaction processing system is a cross functional information system
that process data resulting from the occurrence of business transactions.
example:
MC Donald's which sells a large number of hamburgers every day orders raw materials
from its suppliers each time the company places an order with a supplier, a
transaction occurs and TPS records information such as name, address, credit rating,
invoice amount etc.
E rbil Polytechnic University
Information Systems Engineering Department 4
CHARACTERISTICS
Rapid response fast performance with rapid results.
Reliability well designed backup and recovery with a low failure rate.
Inflexibility treat every transaction equally.
Controlled processing maintain specific requirement for the roles and
responsibilities of different employees.
E rbil Polytechnic University
Information Systems Engineering Department 5
CHARACTERISTICS
Transaction processing qualifiers
Atomicity
Consistency
Isolation
durability
E rbil Polytechnic University
Information Systems Engineering Department 6
Characteristics of TPS
The processing of transaction is vital for the success of any enterprise.
In the face of advancing technology customer demand for immediate
action.
TPS systems are designed to process transactions virtually and instantly to
ensure that customer data is available whenever they require it.
E rbil Polytechnic University
7
Information Systems Engineering Department
steps in processing a transaction
Data entry
Data Capture
Data validation
Processing and revalidation
Storage
Output generation
Query
E rbil Polytechnic University
Information Systems Engineering Department 8
Types of Transaction Processing System
Real Time Processing
Batch-processing system
E rbil Polytechnic University
Information Systems Engineering Department 9
Real Time Processing
Real time processing is where all details of the transaction are recorded
and changed at the time as it occurs
Ex:- ATM’s
E rbil Polytechnic University
Information Systems Engineering Department 10
Real Time Processing :-
Advantages
Error correction can be immediate
Data is processed as demand
No time delay
Disadvantages
Standardization may not exist or may be more difficult
Processing needs make control difficult
System hardware and software is expensive
Security is critical
E rbil Polytechnic University
Information Systems Engineering Department 11
Batch-processing system:-
This is a second type of TPS, where transactions are grouped together
and processed as a unit.
Ex:- cheque processing system in a banks.
E rbil Polytechnic University
Information Systems Engineering Department 12
Batch-processing system:-
Advantages
control over time of processing
Standardization
Reduced setup and processing costs
Disadvantages
time delay in gathering data , storing and bulk processing
Operation cost may increase
Only identical data is processed in one batch
Errors are corrected after the processing of data
E rbil Polytechnic University
Information Systems Engineering Department 13
FUNCTIONAL AREAS
SALES/MARKETING PRODUCTION SYSTEM FINANCE HR
SYSTEM
MAJOR BUDGETING PAY ROLLS
FUNCTIONS MARKET RESEARCH PURCHASING BILLING BENEFITS
OF SYSTEM PROMOTION SHIPPING COST COMPENSATION
PRICING ENGINEERING ACCOUNTING
NEW PRODUCT OPERATIONS
SCHEDULING
SALES ORDER MATERIAL RESOURCE SYSTEM BUGETING LABOUR RELATIONS
MAJOR
APPLICATION MARKET RESEARCH QUALITY CONTROL SYSTEM FUND EMPLOYEE RECORDS
AREAS SYSTEM PURCHASE ORDER SYSTEM MANAGEMENT CAREER PATH SYSTEM
SYSTEM
PRICING SYSTEM PERSONNEL PLANNING
SYSTEM
E rbil Polytechnic University
Information Systems Engineering Department 14
Purpose of TPS
To keep records about the state of the organization.
To process transaction that affects the record.
To produce output that reports on transaction that have occurred.
E rbil Polytechnic University
Information Systems Engineering Department 15
Thank You.