INTEGRATED DATA PROCESSING

e [Music] [Applause] oh [Applause] [Music] at last business management has an opportunity to strike a telling blow at the increasing volume and cost of paperwork this blow can be struck through the use of a tech technique known as integrated data processing or IDP the concept of IDP is receiving a most enthusiastic response from businessmen and the enthusiasm is certainly well deserved dozens of cases in which aggressive imaginative Executives have installed IDP systems have proved that savings and other benefits can be achieved far beyond the original expectations generally speaking management has not been asleep in its efforts to simplify and speed up the handling of paperwork during the past 15 to 20 years millions of dollars have been spent in developing techniques for better form design methods and systems improvements and many companies have made extremely valuable reductions in the cost of handling paperwork with IDP however it is possible that one complete installation can achieve a greater savings than the sum total of all the previous efforts made in the paperwork area on this desk we have one set of forms representing each specially prepared form that is used by a small to mediumsized company this particular company has used the best ideas for the simplification of paperwork during the past 15 years they have constantly improved their systems and eliminated the unnecessary combined forms were possible and redesigned forms there's a total of 107 different forms which are either written by hand or or by a machine of interest is the fact that one of the forums contains an average of 510 keystrokes or more than 38 million keystrokes on the 75,000 forms used annually the reason for mentioning this is the fact that the information contained on the document is copied from two different reports and as many as 16 other documents may be prepared from it in addition as many as 12 tabulating cards may be punched for each document generally speaking an order must be written by hand by a Salesman who could otherwise be in his territory taking care of his customers such orders must be printed for clarity the orders are mailed to the home office or plant involving a delay from 1 to 3 days usually typists preparing manufacturing orders type the same information that was previously written by the salesman another costly effect of past procedures is transcription errors according to dun's review one company reported an error rate of 30% quantities prices and specifications were wrong and the company lost customer Goodwill after the manufacturing order is typed it is necessary that various tabulating cards be punched with information taken directly from the order once an order is shipped an inv invoice must be prepared which usually requires hand computation after the invoice is typed various reports to management such as Sales analyses inventory and commission records are required this involves the manual preparation of tabulating cards for punched card accounting this duplication plus delays in various departments make it impossible to supply management with reports in time to act upon those situations where executive iions are required the fact that there is a great possibility that transcription errors were not corrected may make such a report of little value employing the principles of IDP in the same system a clerk in the sales office pulls the master tape from file using a weldex simplified tape storage unit the master tape which includes all repetitive data for the account such as account name and number shipping and invoicing instructions is placed in the transmitter distributor of an offline Bell System teletypewriter the preparation of a proof copy she will type certain information manually this includes date of order and order number with this accomplished a flick of the switch starts automatic typing of the account number name of the salesman and the salesman's number then the machine stops for manual typing of the purchase order number now the operator raises the lever and the Machine automatically types the account name Street number city and state and the shipping instructions simultaneous with this operation a new coded paper tape is being prepared on the Bell System receiving only typing rep perforator the new tape will include both the manually typed information and the information that was included in the master tape with the completion of this automatically typed information the machine stops from the manual typing of such information as quantity description of items ordered product code and unit price in an IDP system the coding of the master tapes or cards and the manual typing of the variable information is vital to the success of the system because all codes that will actuate various machines in the system at a later time must be in the proper position at this point codes which will start and stop machines eject cards or play operate Carriage returns and tab stops must all be predetermined and properly punched as we transmit the order to the home office however all information will be typed from the tape which was produced as a byproduct of the preparation of the proof copy we're now transmitting and preparing sales office records and customer acknowledgements simultaneously in the shipping Department we are automatically preparing the bill of liting and and packing slip pre-printed blockout areas make certain data illegible in conformance with regulations on shipping papers the manufacturing order is prepared automatically in the order department on a model 19 automatic sending and receiving teletype writer and on this same machine we prepare another complete tape automatically this tape will be used later in the preparation of the invoice the same circuit are two additional typing rep perforators each programmed to recognize codes which will turn the machines on and off a tape from the first unit will be used in a tape to card converter for preparation of tabulating cards for on order analysis reports it is possible for the tabulating Department prepare a report for management daily the other typing rep perforator located in the addressograph department prepares a tape for use in the automatic graphit type which is made by addressograph mgraph Corporation plates are prepared which include purchase order number product description and the product code and will be used as identification tags addressing plates could have been prepared in the same way in view of the fact that one copy of the manufacturing order was a Master Copy it was possible for us to add standard manufacturing instructions including trim and D specifications from an item tape copies will now be be made of the master on the new multigraph machine which is equipped with the automatic play texting and automatic blanket wash devices use of item tapes for automatic typing of special manufacturing instructions to be added to manufacturing orders makes possible a considerable Savings in time as well as a reduction of errors in typing complicated instructions [Music] in the billing department invoices will be prepared on another Bell System teletype writer using tape which was prepared as the order was transmitted to the plant a code stops the tape for manual insertion of the invoice date then the operator pushes the lever for automatic typing of most of the balance of the invoice she adds only quantity shipped and price totals manually in all 89% of the invoice is prepared from punched tape watch the small tape coming out of the typing rep perforator at the left top this tape is being punched with the account number product code quantity shipped unit price and total amount this tape and tapes for other invoices are accumulated once or twice daily then sent to the tabulating Department again the tape to card converter will be used for the preparation of tabulating cards which will later be used in inventory reports sales analyses and commission reports the compu typer model C manufactured by the freeden calculating machine company makes possible the automatic computation of price extensions discounts and taxes and addition of such items as Freight or special handling charges the machine is being demonstrated in the process of making up an invoice using a five Channel tape which has been transmitted to the home office in wire Communications equipment as a part of the order writing procedure the operator depresses the start button after the manual insertion of invoice date and quantity shipped when calculations are required the operator depresses the proper key manually or the machine May operate automatically being controlled by codes in the tape the machine is also programmed so that the results of computations are typed in the proper form locations in addition machines are provided for use with six seven or eight Channel tape as well as five channel again as a result of this writing operation we prepare a tape on a selective basis picking out only the information required for the tape to card operation now what shall it be timec consuming handwritten preparation with frequent reference to files or should we prepare our orders on an automatic basis with a minimum of error shall we delay our orders in the step-to-step preparation or shall we have it prepared simultaneously at the various points where the information is required which report would help you on other top Executives the most in running your business the report which comes to your desk 54 days after it is needed or the report of your daily transactions which will give you comprehensive reports on all activities when you need it every document in this group contains information made up from a previous document or based on subsequent documents either completely or in part the situation is outlined is not unique if you check into the operations in your company you may find similar or even worse conditions this constant duplication of effort is a major factor in the high cost of clerical operations other effects of the problem of handling paperwork will be Illustrated in a demonstration of the procedure involved in a simple order entry system we have selected this system because the orders received by many organizations is the start of one chain of various forms where the same name information is required from form to form in this IDP system we apply the technique to the procurement operation like all good IDP systems it starts at the source in this case the requisition a coded tape which includes all repetitive information with regard to a given item is placed in a flex aater produced by commercial controls a minimum of variable information will be added manually by the operator in most cases up to 90% of the information may be punched into a coded tape as the requisition is being prepared a new complete tape is also being punched which will include variable as well as repetitive information this new tape will accompany the requisition to the purchasing department where the tape will be used in the preparation of requests for quotation the request for quotation are also being typed on a flexor writer all typing will be automatic except for the date of the request for quotation and insertion of the names of the potential vendors later after the quotations have been received the same tape that was used in their preparation will be used again in writing the purchase order in this case we will prepare the purchase order on a model 19 teleprinter supplied by Western Union the manual insertions will include only the date of the order the unit price the total and the promised shipping date [Music] in the same circuit with the model 19 teleprinter is a model 15 which is located in the stores department so that we can provide the requisitioning department with information to the effect that the order has been placed the name of the vendor and the promised shipping date the same circuit also is another model 19 automatic sending and receiving teleprinter equipped with a typing rep perforator this machine is located in the receiving department and will prepare the receiving report automatically the typing reperat will print and punch a new tape which will be used later in the preparation of additional receiving reports which must be typed for each partial shipment in addition we have prepared tapes for use in tape to card converters for punch card accounting reports of inventory budget control budgetary analys analysis and material control now let's examine an IDP system in which cards are used instead of tape we will prepare invoices on the IBM cter type accounting machine in a typical application there are three Master cards for every invoice the customer cards the miscellaneous data cards and the product cards in accordance with the information shown on the salesman's order the operator selects the customer cards and the miscellaneous data card she inserts these cards in the cotype control unit and de presses the start key as the heading information is being typed she enters into the auxiliary keyboard the customer order number and the invoice number the first typewriter is producing the customer's invoice the other typewriter is an invoice register although not shown in this particular application it is possible to have additional typewriters producing at the same time from the same cards shipping labels packing slips and bills of lighting [Music] in addition a Carter type punch can make sales analysis cards for all line items new inventory cards and accounts receivable cards for invoice totals after the invoice has been produced she removes the product cards from the cotype and puts them in the IBM transceiver this transceiver is connected by telephone circuits to another transceiver at the home office many miles away the punched cards will be duplicated at the home office simultaneously the sales detail that she has relayed to the home office will be used there in a 650 electronic data processing system the answers to these questions are obvious and it is because of these possibilities that American industry is so enthusiastic the same enthusiasm has encouraged the entire office equipment industry to proceed with the development of new attachments and new machines so that the same ideas may be applied in all functions of Business by each industry at this point however I wish to emphasize the fact that several different coded media will be used I also want to clarify the idea of the common language for example one of the coded media will be a punched tag made by the Dennison manufacturing company this tag when used in a unit which will read the information contained will actuate a cache register a charge account plate may also actuate a cash register as a result of the ability of the cash register to read the information in these two forms it will also prepare the Sal slip and in addition a punched paper tape this tape when used in a data processing center May produce punched cards when used in a tape card converter or such a tape may fit directly into an electronic computer in which case the information is transferred to magnetic. form in that simple illustration we have used a Common Language but it was in five different forms therefore coded common language is Common Language if it has the ability to be read by the machines required in a system and if it has the ability to be reproduced in that same form or some other form which will permit the perpetuation of the information to be written by other machines the national cash register point of sale recorder as charge plates and clerk tokens are inserted into the machine the information is converted to punched paper tape in addition punched price tags are read by the machine and the information is converted to punched code form this information is printed on the Sal slip and is available for use in tape to card converters or to be used in electronic equipment so far we have examined only those machines which will read coded information and perpetuate it through tapes in business as you know there is a requirement for a great number of written documents where it is impossible prior to writing to capture the information in code form as these documents are written however there is a need for perpetuation of certain information there is a growing list of these original transaction Business Machines which meet this vital need we will demonstrate each in connection with a typical application although each machine fulfills a requirement in various other areas of form writing than those Illustrated this is Burrow's Corporation sensematic to tape which in this case is being used in the preparation of accounts payable checks the machine is electrically connected to the perforator program console the tape punch controlled by the perforator console operates automatically at a speed of over 30 punched codes per second in the tape punching process the interpretation of program instructions from the sensematic and the appropriate tape codes are controlled by the wiring of the control board the ad Punch machine manufactured by the freeden calculating machine company has a tape punch which may be programmed to punch all or selected data functional command codes may be punched from all or selected actuating Keys variable field length or constant field length may be controlled automatically in a retail store data from sales slips can be converted into punched tape all of this data is printed on an adding machine tape the punched tape is then used in a tape to card converter where the data is punched into tabulating cards thus providing management with accounting machine reports of current transactions this machine is the IBM model 884 typewriter to tape punch in the demonstration we are preparing a declaration form for an automobile insurance company as the information is typed we may punch all or portions of the typed information into a paper tape output unit this tape may be transmitted to other locations via wire Communications equipment or it may be fed into a tape to card converter or directly into an electronic computer for further processing if there is a need for punching such information directly into punched cards the need is answered by the IBM 826 typewriter card punch which we see in operation in the preparation of an invoice form information that is typed may be punched into the cards on a selective basis including only that data which is required for punch card accounting the synchrome Andro adding machine incorporates a punch unit which will perforate 5 6 7even or eight Channel tape at a speed of up to 1,800 perforations per minute these machines are available in 10 to 14 column capacity the cchrome and row accounting machines are actually adding machines with tabulating carriages in this demonstration we illustrate a simple stock Ledger posting routine the old balance account number amount received and amount delivered are entered and punched then the new balance automatically is printed and punched a proof pickup is made and the net amount is printed and accumulated as a proof figure pertinent information is punched in coded paper tape where tabulating cards are required immediately and there is no need for punched paper tape it is possible to use the synchrome and row connected to key punch equipment these machines may be used for payroll and distribution vouchers payable and payables distribution stock Ledger department store audit Etc the next machine is National Cash Register company class 2000 with paper tape recorder this is the window posting machine for use in Savings Banks this machine combination posts the depositor's pass book at the teller's window and at the same time creates a record of the transaction in punched paper tape which may later be used in the processing center in punch card accounting machines another of Nationals machines is the class 31 general purpose accounting machine connected with a paper tape recorder in the demonstration the operator will prepare a voucher in an accounts payable system as you can see we have also prepared a punched paper tape which contains selected information which may be used in other data processing machines for the various analytical reports which may be required the national cash register company class 31 is also available with with punched card output which may be used in those cases where there is a need for tabulating cards immediately the national cash register company adding machine with tape recorder makes available for use punched paper tape output for the recording of statistical information so the tabulating cards may be prepared automatically in a tape to card converter and used in the preparation of reports for production planning and scheduling inventory and ordering Control job cost and labor accounting the new point of sale recorder manufactur Ed by Remington Rand is designed to speed recordkeeping applications in retail stores for example a multiple copy sales slip is placed in a chute on top of the register a punched customer charge tag is placed on the tag reading mechanism and the information is punched into paper tape as well as being printed on the sales slip the merchandise tag is inserted into the reader and price and description are printed on the Sal slip and punched into paper tape supplementary information is added from the keyboard and this is also punched into paper tape all of the information pertinent to the sail is recorded on the sail slip as well as in punched code form the tape may be wir transmitted used in tape to card converter or used in an electronic data processing center such as the model univac which we see here the Underwood data flow usually usually involves at least two typewriters the forms used on the Master machine may vary in size and design from those used on the slave units the various typewriters are controlled in typing and spacing by a programming device which also controls the punching of information from the various data punch units are available for five six seven or eight channel tapes the Underwood elom Compu computer model 50 may be actuated by 5 6 7 or eight Channel tape there are two output printing units one of which incorporates a backward or forward Carriage operation in addition tape units are available for Selective handling of punched paper tape this machine adds subtracts multiplies and stores results in 100 registers in addition it will compare results in various units there is a frequent need for capturing information from typewritten documents which are written at several different locations an encoding mechanism installed on an electric typewriter enables us to encode the document itself making it the perpetuating media handwritten documents may be encoded in a similar manner by installing an encoder on an autographic register the codes are sensed at the rate of 15,000 digits per minute then translated into the necessary form in the stomatic machine manufactured by The Standard Register company the codes may be converted to Magnetic Tape as we see here or they may be converted to tabulating cards Five Card punch units may be actuated simultaneously producing 500 tabulating cards per minute with 30 digits [Music] each now for a few dos and don'ts that are recommended for those who are about to initiate an IDP system don't buy equipment first then attempt to determine what to do with it do think your system through after you have done this determine the proper machines to do the job that is required don't try to do it all yourself any good IDP system will take the processing of data across divisional lines sometimes I feel that the word division should not be used yet literally it is an excellent descriptive word because usually there is a division of Interest a division of problems and a division of incentive as long as that division exists with regard to IDP your company will have problems do get the men from the other operating functions on your ball team form a committee with one member of each participating function represented not only will you find this will Aid materially in getting the complete facts you will also find that these men will help immeasurably in the installation of this new and different way of doing things don't try to use the same forms that you now have on manually operated equipment as you integrate one form with another you will find that these forms even though they contain the same information probably are dissimilar in design and construction do redesign your forms so that you are able to take advantage of all of the automatic features of the equipment that you intend to use also redesign to make certain that the forms are compatible with each other don't buy a pig in the poke you can be disillusioned in a hurry do check your forms on the machines that you want installed to make sure that the system will operate the way you want it don't think you have an easy job it can be difficult therefore don't make a half-hearted attempt it won't work do roll up your sleeves and tackle the problem headon make sure that the other members of your committee do the same and that all of you cover the entire chain reaction of data processing I'm sure you will agree after having seen these examples of integrated data processing that Optimum benefits are derived from an IDP system when information is captured at the very earliest point in the procedure and perpetuated to the very last document whereas such information may be required during this presentation we explained the meaning of integrated data processing now we will explain what integrated data processing means to American industry it means lower clerical costs faster processing of basic documents a considerable reduction in transcription errors and a virtual elimination of the confusion that such errors cause it means that we have an opportunity to improve customer relations by providing accurate information with regard to customers orders on a much faster basis than was previously possible it means fast processing of documents for the reports to management so that decisions can be based upon current facts not past history finally it provides an opportunity for the correlation of information from various sources for comprehensive reports to management so that they can take advantage of changes in the market price changes inventory prod uction and many other factors which can have an effect on the overall operation of business I believe you will agree that the machines which are available from practically every business machine company are ready to do a job for you in almost any area of your data processing where you have an appreciable volume of work to be handled you have seen only a few examples of IDP your imagination and genius will bring about many more may I say that the longer you wait the more you will miss