COMPUTER APPLICATIONS
Computer plays a very important role in each and every aspect of our life, be it banking,insurance or transportation, it is useful for preparing payroll of the employees, maintenance ofoptimum inventory level, sales order processing, reservation of tickets etc. It processes thetransactions very quickly and accurately. So, it finds applications in various stages of business.
BUSINESS APPLICATIONS
The following are some of the areas of business in which computers are applied:
1. Payroll Processing:Business means selling goods and services. To carry out such activities, business
management employs people. They have to be paid monthly salaries and the details regarding
pay particulars of employees have to be kept track.
Business community employs computers for such payroll applications and runs a
program consisting of a number of smaller programs or modules. Each module performs a
particular function of the payroll. Sometimes we call this set of programs as payroll system.
To calculate the pay of an employee, management normally uses the following details of
employees.
(1) Employee number (This is a unique number assigned to the employee to identify him just as
your roll number in the school) (2) Name, (3) Basic pay, (4) Allowances (House rent allowance
and other allowances), (5) deductions (Example Provident Fund deduction) and (6) Bank account
number. These details above the employees do not change but they have to be used every
month. So they are entered into a file in a computer storage medium and permanently stored.
This file goes with the name master file. The file creation module of the payroll system creates
this file once.
Before calculation of the pay of employees every month, some figures in the master need
changes. For example, if an employee completes a year of service, he normally gets an
increment. Such figures are updated using the master update module of the payroll system.
After updating, another module of the payroll system reads details from master file and
calculates net pay. The program also prints out pay slip for each employee to be handed over to
him. A pay slip shows the employee number, name, basic pay, various allowances, various
deductions and net pay.
The payroll system also generates a number of statements. It prints out the statement
showing employee number, name, bank account number and net pay. This statement is sent to
the bank, which transfers the net pay from the company’s account to the individual employee’s
account in the bank. Some companies copy this statement on to a floppy and send to the bank
which processes this statement on its computer.
The payroll system generates a provident fund deduction statement. This statement
shows the employee numbers, names and amount deducted. Another statement showing the
names, employee numbers and tax deducted is printed. The company sends it to Income Tax
office. Thus we see that a number of statements can be printed from the same master file.
2. Inventory Control:
The second application is the use of computers to keep track of the purchase and issues ofparts and raw materials needed in an organization. These parts and raw materials are called
inventories and the set of programs used to keep track of the purchase and issue of these
inventories constitute the inventory control system.
In business, a particularly quantity of each item or raw material has to be stocked. Too
less a stock would result in non-availability of these items, when the manufacturing activity
needs it. Too much of stock of these means, more money in terms of investment in buying the
excess stock. Business pays interest on money invested, and the excess interest paid on cost of
excess stock is a loss to business. So the business maintains an optimum quantity of material.
The inventory control system maintains a file with part number, name, quantity on stock a level
of stock at which the company orders for fresh quantity (called reorder level) and the suppliers’
addresses. This file is the inventory master.
When an item is issued, the inventory update program updates the inventory master
reducing the stock by the quantity issued. If the resultant stock falls below the reorder level, the
inventory control program prints out an order to the supplier of the item automatically. It can be
mailed to the supplier. When the supplier supplies the item, the inventory control program
updates the stock on hand.
The inventory control system keeps track of the supplies and issues. So, it can tell the
management of the company the usage of these items over a period of time quickly. It also
maintains an optimum level of stock of these items.
3. Sales Order Processing
Real –time systems offer the possibility of a greatly prompt service to the customer. His
order can be processed within virtually no time. The finished goods inventory file may have data
terminals throughout the sales territory. So much that the CRT’s can be made to display the
invoice on a terminal for the salesman who is in the customer’s plant and can input the
particulars there and then! The customer would be made immediately in the general ledge. The
invoice can also be posted to the accounts receivable file instantaneously. The selection of
warehouse that is closest to the customer can also be made and a coy of the invoice could be
displayed at the warehouse terminals. Beside, the following functions can be performed rapidly.
the register the signature of the customer. (The customer has signed in the application form
while opening an account). Then he checks from a ledger the customer’s balance. If the
customer has sufficient balance to cover the cheque amount, the clerk passes the cheque for
payment, and updates the balance.
There are a number of operations that the bank carries out of which the above is an
example. We will see how the above operation called personal banking is computerized.
Suppose you want to open a bank account. The bank official hands over a form to you.
You fill up the details (such as name, address, profession etc.) and sign the application. The
bank stores this information in a computer on which a banking software runs. The customer’s
signature is scanned by suitable devices and incorporated in the computer file.
If you present a cheque to the clerk in the bank, he can check the signature manually. If
he is satisfied with the correctness, he can enter you account number and the cheque amount into
the computer which checks your account and updates the amount. The clerk then pays you the
money. In the method, the payment is manual and accounting is automatic. There is another
way where the checking of you accounts as well as payment is made by computer using an
automatic teller machine. Let us study this.
A machine similar to automatic coffee vending machine is installed at selected places. It
is connected to the bank’s computer. When you open an account, the bank gives you a special
type of card. Your name, account number and address are suitably recorded. Your signature is
magnetically recorded in that card. All these details are suitably converted and recorded in the
computer also. When you want to withdraw money, you go to the teller counter and press a few
buttons. You then insert your card in the slot provided in the machine. The machine reads you
account number and signature from the card. It sends them to the computer which checks you
account number and signature. If they tally, the computer sends a relevant message to the
automatic teller machine. It asks you to enter the amount. You may enter the amount through
the buttons on the machine. Again the computer checks if you have sufficient balance. If so, it
instructs the machine to pay you. The ATM then delivers the cash on the tray fixed in it. You
may collect the money.
This is only one example of application of computer in banks. Now large systems
installed at the head office of a particular bank are connected to systems installed at its branches
all over the country. The computers of different banks are also connected together. By sending
suitable messages money can be transferred from one bank to the other. This is called
Electronics Funds Transfer.
Before computerizing, there were a number of counters, each counter serving a particular train or
a few trains. If you want to make a reservation to, say Delhi, you have to go to the particular
counter and join the queue. The clerk had a register in which two or three pages are allotted to
each date. He may have two or three more registers for other trains for which he is making
reservation.
He puts seat numbers on a page one by one and keeps writing the names of passengers
for whom he reserves seats against seat numbers. After some time, if somebody cancels his
ticket, he strikes off the name. When the next person reserves for that time and date, the clerk
writes his name above the cancelled name. This gives rise to lot of confusions. In a number of
situations, two persons used to be allotted the same seat.
With the increasing population the Government is increasing the number of trains. Thus
the volume of data to be handled has also increased enormously. You can just imagine the
confusion this will create if we are still following the manual system of reservation.
We just saw how manual system has become unsuitable in the present context. Now let
us study how the computerized railway reservation system works.
There is a central computer with a number of terminals connected to it the details of all
trains for which reservation is done at the region are stored in the computer. The railway
reservation system runs on this computer. The terminals are situated in booking counters. It is
possible to install the terminals in a far off place and connect them to the computer through
cables.
When the passenger presents the reservation form to the booking clerk he enters the train
number, date, name, age and other details of the passenger. The program checks availability of
seats in that particular train on that particular date. If accommodation is available, the clerk
presses a button on the key board and the computer prints out the ticket on the printer connected
to the terminal. It also updates the computer file to reflect the new reservation position.
Suppose you wanted the ticket for train number 1, but you get only a waiting list. The
clerk tells you your position in the waiting list. If you want you can get a wait listed ticket. If
not, you tell the clerk to check for accommodation in a different train to your destination. The
clerk only has to re-enter the train number. The computer checks availability, reserves you ticket
on that train if a seat is available and prints the ticket.
Thus you can go to any booking counter and request for reservation in any train being
operated on that station. Also the errors found in the manual reservation method are eliminated.
The reservation system is broader based as follows: Today computers in different cities
are connected together. (It is called networking). Suppose you are in Coimbatore. You want to
book your journey from Madras to Coimbatore. You can go to a booking counter (Railways
have opened a number of booking counters in the same city) in Coimbatore and reserve your
ticket from Madras to Coimbatore. Thus there is lot of flexibility in reservation.
We studied that computers are capable of storing lot of data on the hard disk. They are
also capable of retrieving data fast. So the list of passengers for a particular day for a particular
train is also printed out very fast.
The reservation data for a number of trains over a period of time is available. By suitable
software, the railway authorities can prepare the data regarding passengers traveling in different
trains to different places during different periods. This helps them plan for new trains, reschedule
the running trains and make lot of analysis regarding passenger traffic.
They can be used also in Airlines reservation. Only difference will be that some booking
counters in the reservation network may be situated in different countries.
This means that we have to connect computers across the countries. Such networks are
operational now.
In the coming years, computerized reservation systems will become very common. Even
hotel accommodation reservation systems for major hotels are coming up. If we integrate flight
and hotel reservation, it is convenient for the passengers.
example of a manufacturing process. A product C is made from raw materials A and B. The
quality of C depends upon, among other things, the quality of A and B and their quantities. In
big manufacturing processes, raw materials are fed by machineries. Due to problems i n
machineries, the performances may vary from machine to machine. This affects the quality of
final product. Manual inspection of quality and operation of these machineries to control the
quantity are slow. This slows the manufacture of C from raw materials A and B. Signals from C
are fed to the computer. Suitable sensors are installed in the lines carrying raw materials as well
as finished product. These generate signals. The values of these signals for correct proportion of
raw materials are stored in the computer. When the process is on signals keep coming from the
output line depending up the quality of finished product.
Let us see what happens if either A or B varies in quality. The quality of the finished
product also suffers. The sensor in the finished product line senses this. The signals generated
by it change in strength. They are sent to the computer. It compares the signals with already
stored signals. The difference is used to change the quantity of raw materials A and B.
Manual control of this process is slow. Moreover, if people inspect quality and operate
machineries feeding raw materials, they become tired after sometime. But computer does not.
So the quality of product is uniform. Moreover, there may be processes where the presence of
human beings continuously for hours together will be injurious to their health. In such places
computer control avoids such ill-effects.
order can be processed within virtually no time. The finished goods inventory file may have data
terminals throughout the sales territory. So much that the CRT’s can be made to display the
invoice on a terminal for the salesman who is in the customer’s plant and can input the
particulars there and then! The customer would be made immediately in the general ledge. The
invoice can also be posted to the accounts receivable file instantaneously. The selection of
warehouse that is closest to the customer can also be made and a coy of the invoice could be
displayed at the warehouse terminals. Beside, the following functions can be performed rapidly.
- The inquiries about the customer’s accounts status can be answered by the salesman.
- Credit appraisal can be carried out on-line.
- Sales analysis master file can be updated online. This file provides a ready Information to the sales manager regarding sales trends, etc.,
- Inventory replenishment order can be determined as a part of the sales order processing.
ON-LINE APPLICATIONS
1. Banking:
In banks the customers, present cheques for withdrawing money. The clerk verifies fromthe register the signature of the customer. (The customer has signed in the application form
while opening an account). Then he checks from a ledger the customer’s balance. If the
customer has sufficient balance to cover the cheque amount, the clerk passes the cheque for
payment, and updates the balance.
There are a number of operations that the bank carries out of which the above is an
example. We will see how the above operation called personal banking is computerized.
Suppose you want to open a bank account. The bank official hands over a form to you.
You fill up the details (such as name, address, profession etc.) and sign the application. The
bank stores this information in a computer on which a banking software runs. The customer’s
signature is scanned by suitable devices and incorporated in the computer file.
If you present a cheque to the clerk in the bank, he can check the signature manually. If
he is satisfied with the correctness, he can enter you account number and the cheque amount into
the computer which checks your account and updates the amount. The clerk then pays you the
money. In the method, the payment is manual and accounting is automatic. There is another
way where the checking of you accounts as well as payment is made by computer using an
automatic teller machine. Let us study this.
A machine similar to automatic coffee vending machine is installed at selected places. It
is connected to the bank’s computer. When you open an account, the bank gives you a special
type of card. Your name, account number and address are suitably recorded. Your signature is
magnetically recorded in that card. All these details are suitably converted and recorded in the
computer also. When you want to withdraw money, you go to the teller counter and press a few
buttons. You then insert your card in the slot provided in the machine. The machine reads you
account number and signature from the card. It sends them to the computer which checks you
account number and signature. If they tally, the computer sends a relevant message to the
automatic teller machine. It asks you to enter the amount. You may enter the amount through
the buttons on the machine. Again the computer checks if you have sufficient balance. If so, it
instructs the machine to pay you. The ATM then delivers the cash on the tray fixed in it. You
may collect the money.
This is only one example of application of computer in banks. Now large systems
installed at the head office of a particular bank are connected to systems installed at its branches
all over the country. The computers of different banks are also connected together. By sending
suitable messages money can be transferred from one bank to the other. This is called
Electronics Funds Transfer.
2. Railway Reservation System:
Application of computers in railway reservation has made tremendous impact in India.Before computerizing, there were a number of counters, each counter serving a particular train or
a few trains. If you want to make a reservation to, say Delhi, you have to go to the particular
counter and join the queue. The clerk had a register in which two or three pages are allotted to
each date. He may have two or three more registers for other trains for which he is making
reservation.
He puts seat numbers on a page one by one and keeps writing the names of passengers
for whom he reserves seats against seat numbers. After some time, if somebody cancels his
ticket, he strikes off the name. When the next person reserves for that time and date, the clerk
writes his name above the cancelled name. This gives rise to lot of confusions. In a number of
situations, two persons used to be allotted the same seat.
With the increasing population the Government is increasing the number of trains. Thus
the volume of data to be handled has also increased enormously. You can just imagine the
confusion this will create if we are still following the manual system of reservation.
We just saw how manual system has become unsuitable in the present context. Now let
us study how the computerized railway reservation system works.
There is a central computer with a number of terminals connected to it the details of all
trains for which reservation is done at the region are stored in the computer. The railway
reservation system runs on this computer. The terminals are situated in booking counters. It is
possible to install the terminals in a far off place and connect them to the computer through
cables.
When the passenger presents the reservation form to the booking clerk he enters the train
number, date, name, age and other details of the passenger. The program checks availability of
seats in that particular train on that particular date. If accommodation is available, the clerk
presses a button on the key board and the computer prints out the ticket on the printer connected
to the terminal. It also updates the computer file to reflect the new reservation position.
Suppose you wanted the ticket for train number 1, but you get only a waiting list. The
clerk tells you your position in the waiting list. If you want you can get a wait listed ticket. If
not, you tell the clerk to check for accommodation in a different train to your destination. The
clerk only has to re-enter the train number. The computer checks availability, reserves you ticket
on that train if a seat is available and prints the ticket.
Thus you can go to any booking counter and request for reservation in any train being
operated on that station. Also the errors found in the manual reservation method are eliminated.
The reservation system is broader based as follows: Today computers in different cities
are connected together. (It is called networking). Suppose you are in Coimbatore. You want to
book your journey from Madras to Coimbatore. You can go to a booking counter (Railways
have opened a number of booking counters in the same city) in Coimbatore and reserve your
ticket from Madras to Coimbatore. Thus there is lot of flexibility in reservation.
We studied that computers are capable of storing lot of data on the hard disk. They are
also capable of retrieving data fast. So the list of passengers for a particular day for a particular
train is also printed out very fast.
The reservation data for a number of trains over a period of time is available. By suitable
software, the railway authorities can prepare the data regarding passengers traveling in different
trains to different places during different periods. This helps them plan for new trains, reschedule
the running trains and make lot of analysis regarding passenger traffic.
3. Air Lines Reservation System:
We saw how computers handle the railway reservation and offer a number of advantages.They can be used also in Airlines reservation. Only difference will be that some booking
counters in the reservation network may be situated in different countries.
This means that we have to connect computers across the countries. Such networks are
operational now.
In the coming years, computerized reservation systems will become very common. Even
hotel accommodation reservation systems for major hotels are coming up. If we integrate flight
and hotel reservation, it is convenient for the passengers.
REAL-TIME APPLICATIONS
In real time applications, computers control an on going activity. Let us consider theexample of a manufacturing process. A product C is made from raw materials A and B. The
quality of C depends upon, among other things, the quality of A and B and their quantities. In
big manufacturing processes, raw materials are fed by machineries. Due to problems i n
machineries, the performances may vary from machine to machine. This affects the quality of
final product. Manual inspection of quality and operation of these machineries to control the
quantity are slow. This slows the manufacture of C from raw materials A and B. Signals from C
are fed to the computer. Suitable sensors are installed in the lines carrying raw materials as well
as finished product. These generate signals. The values of these signals for correct proportion of
raw materials are stored in the computer. When the process is on signals keep coming from the
output line depending up the quality of finished product.
Let us see what happens if either A or B varies in quality. The quality of the finished
product also suffers. The sensor in the finished product line senses this. The signals generated
by it change in strength. They are sent to the computer. It compares the signals with already
stored signals. The difference is used to change the quantity of raw materials A and B.
Manual control of this process is slow. Moreover, if people inspect quality and operate
machineries feeding raw materials, they become tired after sometime. But computer does not.
So the quality of product is uniform. Moreover, there may be processes where the presence of
human beings continuously for hours together will be injurious to their health. In such places
computer control avoids such ill-effects.
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