Novak, Ralph S.||Sims, Clarence A.
M.S. (Master of Science)
Department of Business Administration
Purpose of the Study The cognizance of rising costs has caused companies to seek ways in which to cope with this situation. One of the ways employed by many companies is to computerize parts of their operation. While few people deny that this method may reduce costs, the relative newness of computers has created a lack of detailed cost information regarding results obtained by a computer system. The purpose of this study was twofold. First, to determine the cost effects arising from a conversion from an IBM 1401 computer system to an IBM 1410 computer system. Second, to establish a relationship regarding job functions and their effects on a computer application. Summary and Conclusion The research for this study was conducted on the premises of Alpha Company. The time was used to obtain data through observations, interview, and other research methods. Six months prior to the conversion was devoted to gaining information on the 1401 system, and six months after the conversion was required to obtain similar statistics regarding the 1410 system. Conclusions The first conclusion was that adoption of the 1410 system resulted in additional yearly costs to Alpha Company of $77,064.00. The effects of the conversion on related costs were as follows: 1. Computer hours decreased by 9.0 per cent. 2. Computer efficiency decreased by 2.4 per cent. 3. Computer rental increased by 42.0 per cent. 4. The number of computer related employees increased by 7.0 per cent. 5. Employee overtime hours increased by 17.0 per cent. 6. Employee payroll increased 4.4 per cent. The second conclusion was that specific job functions are indicative of an operation being profitably applied to a computer system. The job functions were as follows: 1. Accessibility 2. Mathematical calculations 3. Control 4. Volume 5. Maintenance of records 6. Reports.
Holley, Charles Thomas, "A cost study : cost effects resulting from a change in computer systems" (1965). Graduate Research Theses & Dissertations. 240.
vii, 68 pages
Northern Illinois University
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