STATUS STUDY OF DATA PROCESSING SYSTEM OF DEPUTY DIRECTOR (SUPPORT), CENTRAL INTELLIGENCE AGENCY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04723A000500010001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 91
• Document Creation Date: November 11, 2016
• Document Release Date: February 12, 1999
• Sequence Number: 1
• Publication Date: February 19, 1962
• Content Type: STUDY

FOLDER N0J -.._____
BOX NO. _. S________
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3-o A
JOB NO
7Y2
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IL
LEGIB
STATUS STUDY OF
TOTAL DOGS HEREIN
DATA PROCESSING SYSTEM OF
DEPUTY DIRECTOR (SUPPORT),
CENTRAL INTELLIGENCE AGENCY
19 FEBRUARY 1962
ILLEGIB
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LETTER OF TRANSMITTAL
Mr. Joseph Becker
Chief, Automatic Data Processing Staff
Deputy Director (Support)
Central Intelligence Agency
1016 16th Street, N. W.
Washington, D. C.
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We are submitting herewith the status report in compliance
with the above contract. The total report is submitted under
two covers, one containing the printed text, while the other
contains various charts and diagrams that support the text.
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ro ec anager
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Mr. Joseph Becker
Chief, Automatic Data Processing Staff
Deputy Director (Support)
Central Intelligence Agency
1016 16th Street, N. W.
Washington, D. C.
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We are submitting herewith the status report in compliance
with the above contract. The total report is submitted under
two covers, one containing the printed text, while the other
contains various charts and diagrams that support the text.
25X1A5a1
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STATUS STUDY OF
DATA PROCESSING SYSTEM OF
DEPUTY DIRECTOR (SUPPORT),
CENTRAL INTELLIGENCE AGENCY
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material contains information
affecting ztiorr.l d: 'c. l;e of the 11ts'ted
States within of tl:;-~ espionage
laws. Title 18, LT.(.., 79ti, a:Yd 791,
the transmis:s"con or, r-:wc:sit.o. +',hich in
any manner to an unauthorized p
prohibited by law."
19 February 1962
This document consists of ~'__bsgee
No. / ~ofJ 0copies. Series !
. a 2_ C />
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A thirteen week study to determine the status of the data
processing system of the Deputy Director (Support) was
initiated in October 1961. The computer based system
has never functioned to expectation.
This report delineates the present status by use of
charts and descriptions. It points out certain problem
areas 'that have been causing dissatisfactions and ineffi
ciencies within the system. Recommendations are made
for actions, over an extended period, which will alleviate
the difficulties now found within this system.
It is further pointed out that the anticipated savings in
time, costs and personnel have not materialized. This,
report shows that these expectations were not based on
fact and that they have not been achieved. Furthermore,
they are not significant factors in the operation of this
particular system., It is shown that the requirements
must be based on the ability and necessity to complete
assigned tasks. Until a comprehensive systems study
is completed, it is improbable that any rigorously effi-
cient system will come into being.
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LIST OF FIGURES
I. INTRODUCTION
A. Purpose
B. Objective
II. STATEMENT OF WORK
III. ADDITIONS TO STATEMENT OF WORK
IV. DEFINITION OF SYSTEM
V. METHOD OF ANALYSIS
VI. PRESENT SYSTEM (Figures 1 through 10)
A. Organization Charts
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3. Office of Logistics
C. Equipment
VII. MODEL SYSTEM
A. Management's Role
B. Functional Groups
1. Description
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2. Equipment Purchases
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D. Development of a Computer-Based Data
Processing System
VIII.NEED FOR SYSTEMS INDOCTRINATION
A. Training Courses
B. Limitations
IX. EVALUATION OF EDP SYSTEM 94
A. Performance and Progress with Present EDP
System
B. Operating Costs and Computer Operating Time
C. Progress Towards Original EDP Concept
D. Savings in Manpower, Time, and Equipment
E. Equipment
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G. Scheduling Effectiveness
H. Users' Reaction to Computer Services
I. Summary
X. RECOMMENDATIONS
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Figure No. Title
1 Deputy Director/Support- -Organization Chart
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A. Purpose
This is a Status Study of the data processing system of
the Deputy Director of Support (DD/S) as it relates to the RCA
501 Computer located in the Automatic Data Processing Division
of the Office of the Comptroller. The major purpose of this study
is to answer several questions propounded by the DD/S concerning
the achievement of goals that were specified in previous Feasi-
bility Studies made for the DD/S. Another purpose is to provide
a status study following the first year of computer operation. The
Deputy Director wishes to know whether the objectives outlined in
the Management Staff's Feasibility Studies (see Appendix A) have
been fulfilled with regard to the matters of reducing personnel and
saving money. It was upon the basis of the recommendations of
the original Management Staff's studies that a computer was decided
upon and the RCA 501 computer was leased. It was intended that
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B. Objectives
The objective of this status study is not to prescribe an
ideal system for the Agency nor to improve the present system. The
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major objectives of this relatively short investigation are to
delineate the present status and to make recommendations for
definite action which, if applied, will solve most of the problems
disclosed by this study.
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II. STATEMENT OF WORK
The statement of work for this systems study is as follows:
A. Scope
1. Evaluate performance and progress of the EDP
(electronic data processing) system.
2. Determine present operating costs and good computer
time.
3. Report on and analyze the progress being made towards
the fulfillment of the original EDP concept.
4. Access the likelihood of achieving a savings in man-
power, time, and equipment as originally conceived in the
feasibility study.
5. Report on the workload- -present and future.
6. Access the effectiveness of scheduling activities.
B. Method of Analysis
1. Identify system and computer parameters.
2. Contact all levels of operation within the computing
system.
3. Contact the personnel, who provide the computer input
or use computer output.
4. Obtain users' reactions to present operations.
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C. Report s
1. Report on the computer operations of the Automatic
Data Processing Division
2. Report the results of the systems analysis.
3. Recommend various courses of action.
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III. ADDITIONS TO STATEMENT OF WORK
This contractor, after initial investigation of the system, has
decided that it would be in the interests of this report to make certain
additions to the Statement of Work. These in no way change the State-
ment of Work.
The areas covered in these additions are listed in the Table of
Contents and include:
Section VII Model System
Section VIII Comparison of Present and Model Systems
Section IX Need for Systems Indoctrination
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IV. DEFINITION OF SYSTEM
In this report, the term system includes the equipment in the
computer complex, the users of the computer (those who supply input
to the computer as well as those who use the output of the computer),
and the operators of the computer. Since this computer is used to
provide support services to the entire Agency, almost everyone within
the Agency is a part of the system either as a generator of computer
information, a user of computer information, or one involved in equip-
ment operations.
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TAB
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?'`' The method of analysis used in this system study is specified
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in section Il, Statement of Work. This method has been followed
throughout. It is an approach which. provided for the obtaining and
digesting of the maximum amount of information in the minimum
amount of time. All levels of personnel were contacted within the
major areas of this` study. All of these areas are within the DD/S
Ninety per cent of the, information was obtained through personal
contacts with people in these various areas. The remaining ten per
cent was obtained by mail. The method of personal interview proved
most valuable and, from the start, a question and answer routine was
used, one question leading to another logical one.. A formal question-
aire, prepared at the start of this study, was modified as necessary
during the course of the interviews. Questions were asked throughout
the various components, cross referenced, and then verified in other
areas of that component or other components. Thus, within a short
time, it was possible to obtain consistent information. It must be
realized in a study of any type, and especially in one of the complexity
of this, that the inaccuracy of personal communications must be taXen
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into account. Therefore, it was espei Tally important that information
be cross-checked.
The cooperation of all concerned has been much appreciated. It
was only through the freely given opinions and statements and demon-
strations of operations that it was possible to achieve the results that
are discussed in the following sections.
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TAB
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3. Office of Logistics: Supply Division
The Functions of the Office of Logistics are listed.
in Appendix C. The Supply Division represented the only
area of interest to this report. Its most important document
produced by the EDP system is the Stock Status Report.
a. Supply Division
The Supply Division requires immediate
information of stock status in response to inquires
and requirements which are always coming in through
all channels of communication. At present, the Stock
Status Report is listed monthly by the Electronic Data
Processing Division. The list is updated manually
during the month so that immediate status information
is available upon request. The list consists of 56, 000
lines, and spaces are left between line items to per-
mit manual posting for inventory updating. (See "Depot
Stock Control Branch Procedures" Section I Chapter. 5 -
Procedures for Maintenance of the Stock Record Account)
Changes in physical inventory are a result of
requisitioning, procurement or adjustment. The flow
for accomplishing these basic functions are shown in
Figures 35, 36 and 37. Changes in the recorded inven-
tory may take as many different forms as there are
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Nine copies of the Stock Status Report are
printed. Each copy contains 6, 000 pages. The only
copy which is updated is that of the stock analyst.
All other copies are incorrect with respect to any
item which has been requisitioned, replenished or
adjusted at any time after the monthly printing.
Inquires are made to the Chief's office of the Office
of Logistics, and that of the Supply Division, in both
of which these monthly copies are kept. Reference
to these copies can be made only for administrative
information. Stock status information must be
referred by either of these offices to the stock analyst.
Another problem in the use of the Stock Status
Report is its bulk and the delay caused by the manual
search process. Since all stock information is even-
tually put on IBM cards, it is justifiable to look at
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these IBM cards with regard to actually using them
for stock status recording and information at the
stock analyst's desk. This is an application unit
record keeping. All items against which trans-
actions are recorded during a day, could be separated
for repunching and machine record updating. If the
number of transactions per day is limited, the inter-
filing of cards could be done manually. In this way,
the cards would daily represent a master file from
which the latest stock status report could be printed
at prescribed intervals. If the volume of transactions
is such that it is not feasible to interfile manually. The
whole file of 50, 000 cards could be passed for sorting
and collating by machine methods. This however would
consume 3-1/2 to 4 hours. The frequency of repunch-
ing of cards could then be reduced and manual updating
of cards could be accomplished as at present. Again,
at any time a new list is required, only the cards for
which transactions have been made need be repunched,
followed by punching of the entire file.
The management report for the acquisition of
the IBM computer identifies many areas of the Office
of Logistics procedures and reports which can be
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modified. No doubt some of these changes have
already been made. eview of this report
is found in Appendix A.
b. Inspection and Inventory Branch
In addition to its inventory responsibilities,
(see Figure 37) the Inspection and Inventory Branch of
the Supply Division conducts the internal audit of Supply
Division procedures. It reviews regulations, instru-
ctions and responsibilities of the various units of the
Supply Division. It is responsible for identifying
problem areas by personal interview methods and
preparing Supply Division instructions to correct
procedures. In this function the, Inspection and
Inventory Branch acts in a staff capacity responsible
directly to the Chief of the Office of Logistics.
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C. Equipment
The following list is of the equipment leased by the
Automatic Data Processing Division, The electronic data
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Model No.
503
561-2
Electronic Data Processing Machines
(RCA)
Description
Computer
Quantity
Hi Speed Storage (32k 768) Memory Locations 1
581 Tape Station
535 Electro Mechanical Printer
527 Card Punch
538 Card Punch
547-6 Tape Switching Unit
525 Tapewriter Verifier
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A. Management's Role
Management is the art and science of planning, organizing, and
controlling human effort to achieve useful ends. Management proper
is a function concerned with the execution of policy within the limits
set up by administration, and the employment of the organization for
the particular objects set before it. Organization is defined as the
division of work to be done into separate tasks and the assignment
of these tasks to individuals qualified by training and natural charac-
teristics for their efficient accomplishment.
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B. Functional Groups
1. Description
An organization of the governmental, support type
may be divided into three principal functional groups:
Financial., Personnel, and Supply. There is, in addition,
a fourth group, Support Services, that performs those
functions which are not assignable to the three principal
groups. These four groups are shown in Figure 40.
The Financial Group provides the basic functions
of accounting, auditing, budgeting, contracts adminis-
tration, and disbursing. These functions are divided into
additional categories in the cases of accounting and
auditing. The individual functions in the Financial Group,
as well as in the other groups, are defined in the next
section.
The Personnel. Group performs those functions
which concern the relationship between the employees
and the organization.
The Supply Group provides functions that relate
mainly to the acquisition, storage, movement, and
control of materials, supplies, and equipment.
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The Support Services Group provides functions of
a staff nature and also those functions that relate to the
three principal functional groups.
A fifth group, Data Processing, furnishes data
processing services to the three principal functional
groups: Financial, Personnel., and Supply. Owing to
the need for providing relatively comparable services
to these three groups, it is essential that they be
separated organizationally from the Data Processing
Group.
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c. Supply Functions
Cataloging--The collecting and filing of catalogs
and other product and vendor information to enable
later retrieval when required by using personnel.
Inspection--The visual examination of materials
and equipment to insure their adequacy or quality with
respect to specifications or other descriptive literature
and the recording of the results of those examinations.
Inventory Control--The preparing, communi-
cating, accumulating, and summarizing of information
concerning a large number of daily occurrences affect-
ing actual and planned inventory balances; the main-
taining of quantitative, descriptive, and procurement
data regarding each inventory item; and the manipu-
lating, correlating, and review of the above information
as the basis for making inventory decisions and taking
the required actiona the handling and storage of supplies,
materials,and equipment in stock.
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Product Testing--The testing of materials and
equipment to insure their adequacy or quality with
respect to specifications or other descriptive literature
and the recording of the results of the tests.
Purchasing--The translation of purchase requi-
sitions into purchase orders by the process of endeav-
oring to obtain the specified items, of suitable quality,
on or before their required delivery date at the best
possible price; the submission of requests for price
quotations to several vendors in the case of compe-
titive items, the supplying of aid in the selection of the
vendor in this case, and finally the authorization of
purchase.
Quality Control--The determination of the
standards by.which materials and equipment should
be tested and evaluated; the development, selection,
and distribution of statistical methods for insuring that
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the quality of the materials and equipment being
tested is adequate.
Receiving--The receipt of incoming materials
and equipment, the checking of quantities received
with respect to quantities ordered, and the recording
of appropriate specified data concerning incoming
materials and equipment.
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Space Utilization- -The planning for the total
future required work area and the optimum division
of that total area into individual work spaces.
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Transportation- -The provision and maintenance
of an operating supply of vehicles, and the scheduling
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of the efficient usage of these vehicles.
Vendor Qualification- - The determination of the
financial, technical, and production aspects of a vendor's
ability to deliver a product of required quality by a
required date.
d. Support Services Functions
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Grounds and Buildings,--The maintaining of
grounds and buildings in optimum condition, the altera-
tion of grounds and buildings as required, and the
arranging for and supervising of all maintenance and
alterations that are performed by outside vendors on
the company's grounds and buildings.
Legal--The review and analysis, and the approval
of the form, of all legal documents which concern the
company, the providing of assistance to the Contracts
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Programming- -The preparation of programs as
required for the timely and efficient production of
output data by the electronic data processor.
Processor Operating Group--The operation of
the electronic data processor; the printing and issuing
of registers, records, reports, and pay checks; and
the handling and protection of punched card and mag-
netic tape records.
Card Processing Group--The key punching and
verifying of punched cards; the operation of all
punched card machines exclusive of the electronic
data processor.
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C. Information Flow
If information is to be processed effectively and efficiently in
any organization,. it is necessary first to arrange for its proper flow.
For each individual application, such as standard payroll or equip-
ment purchases, this flow will occur both between groups and within
groups. A separate flow chart should be prepared for each of these
two cases. In addition to -the flow charts, there should also be a
written description of the information flow sequence. With this
combined information it is possible to analyze the flow to determine
if duplication of purpose, procedure, or forms exists and if improved
or more appropriate equipment. can be used to process the data.
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2,. Equipment Purchases
A tentative model information flow .sequence is presented
on the next page. This sequence is mainly illustrative of the
,flow that occurs between the various groups. It.is not detailed
as. in the case of Standard Payroll. The model flow for equip-
ment purchases, Figure 43, shows the tentative paths of infor-
mation .flow between groups. A model flow chart similar to
Figure 42 showing data processing operations has not been
included. in this status study.
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D. Development of a Computer-Based Data Processing System
1. Introduction
A data processing system developed and operated by
means of manual or conventional accounting machine methods
lacks three important qualities found in the more advanced
computer-based data processing systems. They are:
1. The information is not sufficiently timely to
meet the requirements for all management decisions
and sometimes is not selective enough to focus
attention on situations requiring immediate attention.
2. The conventional data processing system is
periodic in nature while the operations of an organi-
zation are not.
3. The infornnational reports are organized in such
a manner that the inter-relationship between functions
are not readily apparent.
There are three possible justifications for using a
computer in the management field aside from the obvious
applications in the design and engineering fields. They are:
1. To cut clerical costs.
2. To produce faster and better management control
information than is practicable by alternate methods.
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3. To facilitate the application of mathematical
techniques to the solution of management problems.
To cut clerical costs, we look to changing the nature
of the work we now require from clerks who handle data.
Much of the present clerical effort is directed toward the
endless repetitive tedious monotonies of sorting, filing,
collating, copying, and matching. A computer can equal
the efforts of many clerks in the performance of operations
of this type. The systems designer who takes the approach
that he can simply replace manual or conventional machine
accounting methods with the computer soon finds that he
has created many more problems than he has solved by
speeding up an isolated processing area.
Manual and machine accounting methods are charac-
terized by multiple files and batch operations. Basically,
in a manual system we find many processing operations
proceeding independently of one another, whereas in the
computer the processing cycle is sequential. That is to
say, the computer undertakes every possible operation on
a given piece of data before going on to the next. Therefore,
the processing cycle is necessarily orientated by type of
input document rather than by type of report or operation.
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This means that the input must arrive at the computer on
a scheduled basis in order that the desired output in the
form of reports is both correct and timely.
The key to the solution of this problem, which is
somewhat new to the machine accounting analyst in both
scope and magnitude, lies in the systems approach to
setting up a computer. The systems approach results in
subjipcting the entire data processing operation of an organi-
zation to a critical re-examination in order to determine
the requirements of its information system. During the
study the purpose of each of the present reports is examined
and questioned. The reports are looked upon as a contin-
uous flow of information required to carry on the objectives
of the organization.
During the systems study, the analyst should be
aware that the informational needs of the organization are
not necessarily the output of present procedures. Current
methods are often a patchwork imposed by present machine
limitations, supervisory inflexibility, and reaction to past
emergencies. As a consequence, the information for
policy guidance and control of day-to-day operation may
not be clearly reflected by current office activity, Reports
are meant to convey information and information is meant
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A prime consideration in designing the system is to
determine a method of checking input data to preclude the
introduction of erroneous data. In a manual system, the
input data is characteristically re-checked at each level
of summarization. In a computer system, the data, once
accepted, tends to flow into the various reports without
question as to its validity. As a result, the analyst often
finds that erroneous data has entered so many reports
that it is difficult to devise correction procedures which
are easily handled by the present clerical force and
consequently his system is subject to criticism and correctly
so. Successful computer systems overcome this obstacle
by placing a great deal of emphasis on the possible types
of input errors and devise techniques within the computer
program to detect suspect data and reject it at an early
point of the processing cycle. The rejected data is then
immediately returned to the originating department for
correction. This feedback of erroneous information then
tends to strengthen the data processing cycle rather than
weaken it, as do so many elaborate error-correction
techniques which require the attention of a computer
specialist with a thorough knowledge of the program.
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Systems Study
Having decided that the systems approach to installing
a computer-based data processing system is the preferred
method, the first step is to gather data concerning the
present system. Data is gathered in order to discover the
fundamental requirements of the organization before
describing the step-by-step data collection and processing
operations for the computer programmer. One criterion
most helpful during this initial phase of the study is to keep
in mind that information is the basis for making management
decisions and also it should reflect the result of the decision-
making process. That is to say, it should convey informa-
tion regarding what should be done as well as report on the
effectiveness of previous decisions.
As the analyst tours the organization to gather infor-
mation concerning the nature and volume of all transactions,
records, and reports, it is imperative that his investigation
be systematic and thorough. It is recommended that he have
an organization chart so that he may check authority and
functions in each department to insure that all the informa-
tional needs of the area are determined. As he collects
copies of all forms, records, and reports, he notes on each
where he got it. In each area, the personnel are questioned
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concerning the decisions which they make during the prepara-
tion of the input documents and, specifically, the manner in
which all the data on the source document is obtained. The
records collected should be filled out with actual represen-
tative data since blank forms often convey misleading infor-
mation to the analyst. If the analyst has limited his questions
to the work actually done in each specific area where the
information was obtained, the data should be reasonably
correct. With this data he can now return to his desk and
flow the basic information required to conduct the organi-
zations work in order to plan the computer programs.
The analyst will now investigate methods to simplify
the flow of the documents and, in many cases, by-pass areas
previously receiving copies of source documents and replace
them with reports which will report on an exception basis
the item requiring attention and action. Much of the apparent
duplication of effort found in manual systems has arisen due
to the fact that manual systems, in essence, operate in the
simultaneous mode in order to obtain timely information.
In a computer-based system, however, the information will
be processed in a sequential mode and be timely as well, due
to the computer?s great processing speed.
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The most challenging problem facing the systems
designer is to determine how to provide input data to the
computer so that output data in the form of reports will
be available at the proper time. A common method of
scheduling the production and delivery of reports is to
determine what action is taken as a result of a report
and then determining the priority that this action has in
the operation of the organization rather than asking each
report recipient when he needs the report.
3. Systems Design
Having determined the informational needs of the
organization and established an order of priority based
on the relative importance of management action, the
analyst organizes the data into computer tape files. The
files are organized based on data usage and content. Basic
record files contain master information., usually updated
only when a basic record bit of information changes. Other
files are working files and contain current updated trans-
actions. At each succeeding level of summarization the
information becomes more condensed. It is usually very
important not to build into the system the requirement that
all or any input errors be rectified before further processing
of non-error items proceed. At each processing step, there
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must be an input which is either new data or the output from
a previous step. Those outputs from previous steps deter-
mine the processing. sequence to that point. When this causes
problems in timing of output reports, alternative methods of
gathering the required input must be sought or, perhaps,
duplicate processing of the original inputs may be considered.
Each "test" situation where a computer decision determines
the next course of action can have only one of two possible
solutions. If this is not so, then the information available
to the computer has not been sufficiently detailed to program
the report. All input data, of course, must result in an
output of either intermediate or final reports or the input data
has no place in the information system.
The real need in the reports area is not to super-
impose a great many more reports on the existing informa-
tion structure. Rather, the need is to think critically and
determine what information is really needed or can profit-
ably be used for planning and controlling the organization.
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V::III. NEED FOR SYSTEMS INDOCTRINATION
This status study has pointed out the fact that there is a great need
for overall systems indoctrination within the Agency. It is true that
some training courses were presented by RCA in the computer field;
but they were very inadequate. RCA is one of the younger companies
in commercial computers and cannot be thought of as one of the more
capable when it comes to back'-:up material for their computers. The
courses that they gave were brief (a day or two at the most, in general).
There was a large task to be accomplished because the Agency was just
starting in the field of electronic data processing. For the main part,
the courses that were given were presented to the wrong audiences,
a_s,~,
For instance, management people received the detailed programming
courses and technical people, the executive courses. Be that as it
may, these courses never were sufficient to convey the desired knowl-
edge to the employees of the Agency. It is essential that proper training
be accomplished, however, in order that this multi-million dollar system
composed of equipment and methods can be properly implemented.
Indoctrination, however, is not an easy task when one considers the
involvement. The knowledge to be imparted is not only for present
operations but also for future needs and must cover machine systems
ranging from simple input devices, such as, the typewriter, through
the high-speed computer now in use.
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A. Training Courses
The courses recommended would be of two types: 'general
and specific. The general course would consist mainly of material
on computers and the application of computers to business systems.
Even at this stage of man?s acceptance of computers, it is not
easy to find a good general course that can be presented in a
matter of a week or two to people who are not completely oriented
to receive it. However, there are already many firms who do
offer courses to their employees and most of the computer manu-
facturers do have general courses. In addition, there are books
and certain college courses which can be used as back-up. The
Agency will be using computers as far in the future as we can
see.. It will have to keep up with the general trend toward auto-
matic data processing and there is no doubt that the ensuing years
will find more computer usage, not only by the people presently"
involved but by everyone.
It has been mentioned, there are courses that are already
being given in general business and scientific fields. However,
it must be pointed out very strongly that the work of the Agency
in many cases is unique among Government and industry. Any
course given must not only be general in, order to teach the
basic underlying principles but must also go into the very specific
needs of the Agency.
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B. Limitations
The concept of limitations is one aspect of computer systems
that one does not often find in general courses, especially the
courses given by computer manufacturers. As a result of this
study, however, it has become apparent that this important area
should be presented to Agency personnel. Many of them are
aware of computer capabilities from collateral reading and they
know that an electronic data processor is nothing more than a
tool; however, as a result of lack of indoctrination, the limita-
tions of this tool, are not fuliy,understood. . Most of the personnel
think it will do more than it actually will. The RCA 501 Computer,
however is limited and is on the low end of a medium-sized and
-priced computer. It will not do all of the wonderful things that
one reads about in various publications because it is not a
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large-scale, expensive computer containing the most modern and
up-to-date advancements. Agency needs do not call for that type
of computer. They do call for a typical business computer, which
this is. A typical business computer, however, does not have
the capabilities of the scientific types that we hear about with
large, fast memories with instant access to millions and millions
of bits of data. The 501 is relatively small.. Its use must be
carefully planned. It can handle only one problem at a time.
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Although a computer will, handle many problems, it can only handle
them in the order in which they are programmed. There are many
ramifications of computer limitations and it was not the intention
of this status study to go into them. However, the necessity of
pointing them out, so that personnel will utilize the computer
accordingly, is established. Much of the dissatisfaction involving
this computer will be alleviated when users become aware of the
systematic cooperation that is essential in its operation.
The cooperation of the employees is an important aid to the
success of an electronic data processing program for reasons
such as the following:
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(1) The development of an electronic data process-
ing program is a large project involving the efforts
of numerous individuals, most of whom are not
under the direct supervision of the head of the
program.
(2) The computer program usually cuts across
departmental lines and requires inter-departmental
cooperation.
(3) The development of a sound program often
requires full and ready access to the records of
other departments and an understanding of their
system procedures.
(4) The success of new systems and procedures
depends on the desire of employees to see that they
work properly.
(5) Willingness of employees to transfer to the
electronic data processing organization depends on
their enthusiasm and interest in their new venture.
The same can be said for their willingness to coop-
erate with that organization.
(6) The Agency is greatly compartmentalized and
there are many misunderstandings which arise because
of the fact that communications are limited. Therefore,
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it is necessary for employees in an establishment of
this type to make an effort to maintain cooperative
links of communication.
It is essential that all employees be apprised of the system
because, by definition, the system involves all of the employees.
It is something that need not be gone into in great detail except
as each individual part of it affects each individual's job. How-
ever, it has been found that people of reasonable intelligence
function best when they are aware of what they are doing, what
is expected of them, and what their contributions will add to the
success of the overall effort. The Agency has people of better
than average intelligence. This type of individual is not satis-
fied with routine jobs and the piecework approach to operations.
This type of individual is a professional and once he is apprised
of the relationship of his position. with the rest of the organi-
zation, he works more efficiently toward the common goal.
Because of this inherent intelligence, it can be stated optimis-
tically that proper systems indoctrination and training will.
result in cooperation in the majority of cases.
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should be. It must be pointed out here that this is not a computer
equipment problem alone. It is a systems problem if the input does
not come in at the proper time, or in the proper form or go to
the proper place. It is then impossible for the computer to comply
with the demands that output be delivered at a certain time and in
a certain form.
The peripheral equipment failures, that is, the failure in
the high-speed printer, the card punch, and the card reader have
definitely acted to the detriment of the system. It is impossible
to perform and fulfill Management's role of input-output and
production of reports without the 100% use of these devices.
In the first year of the computer's operation, it was necessary
to spend much time in order to produce computer routines and25X1A
programs. The decision had been made to bring electric acco
ing people up to electronic data processing jobs. Much valuab
time was lost while these people were trained to be programm
and during the first six months of operations certain chaotic
conditions existed. This was due to the fact that some of the
people who had formerly been in charge of electric accounting
machine operations had now left that job and were programming ILLEGIB
ILLEGIB
for the data processor. During this period, the data processor
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1 . Logistics Stock Status Book
This is a book that is printed every month on the
high-speed printer. It contains every line item that is
carried by the Agency. Approximately 66,000 items are
carried in this book. Each book consists of 6, 000 printed
pages and nine copies are made each month. It takes
approximately 33 hours to run these nine copies. The
book is used in Logistics as a reference and also as an
actual working document for stock additions and stock
withdrawals. Whenever stock is obligated the amount is
entered into the book, adjacent to the item, by the stock
analyst. At the same time, the stock analyst fills out a
voucher which is sent to the Automatic Data Processing
Division. This voucher is used to print the next book.
In other words, at the end of the month, all of the vouchers
are tabulated for each item and this gives the amount of
withdrawals. The stock status book is also used for
additions, and whenever stock arrives, it is added into
the book by hand. At the same time, vouchers are sent
to Automatic Data Processing notifying them that addi-
tional stock has arrived. These vouchers are then used
at the end of the month to up-date the stock status book
to give the amount added. Several problems arise here.
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One is the fact that it is necessary to run nine copies of this
book. It is usually run on five-part forms. Therefore, in
order to run nine copies it is necessary to print twice.
Analysis may easily show that only five copies would be
required rather than nine. If some of the receivers of
this volume were to be apprised of the cost and the time
involved to run the listing twice, they may very well realize
that it is not necessary for them to receive a volume. The
first step in any systems analysis is often to check the
advisability of printing certain reports or of printing multi-
ple copies of certain reports . Very often a little ingenuity
can be applied at this point to save time and money. If it
is necessary for everyone to receive one of these reports,
then the time and the money spent can be justified. If it
is not necessary, this fact should be determined and steps
taken accordingly. There has been quite a bit of discussion
pointing toward the fact that stock status should be kept
in a random-access type of computer so that in an instant
the stock being withdrawn or being added to can be updated;
and-also, similarly, within an instant, Management can
query the computer to find out what the exact amount of
stock on hand is. This cannot be done with the present
system without calling the stock analyst--asking him to
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check his books, add up all the withdrawals, add up all
of the receivers, and come up with the actual amount on
hand.
It is not an easy thing to specify a random-access
device or a computer device to be used for Logistics
without studying the situation. Such factors as the time
involved, the people, and the location, must be considered.
If a computer is needed for stock control, all well and good;
but this problem must be very carefully investigated.
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Lbk
13. Summary
These typical problem areas have been chosen to
represent the drawbacks to the performance and progress
of this EDP system which have necessitated this status
study. It has been pointed out in this section that there
are problems and difficulties and that in the main they
stem from the fact that the recommendations of the
Management Staff, pointing up the need for an overall and
complete systems study, were never implemented.
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The operating time of the main electronic components has
been excellent. Whereas, all of the computer peripheral equipment
(card reader, card punch, high-speed printer) have been unsatis-
factory. In the past, it was necessary to skip normal preventive
maintenance because of lack of time. Since the inception of this
study, these procedures have been carried out. The results have
been an improvement in the card reader and card punch operation.
The printer, however, is still unable to turn out really acceptable
work. The failure of this peripheral equipment is more fully
discussed in section E which follows.
C. Progress Towards Original EDP Concept
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concept was a phase-one, phase-two concept in which phase one
would be the one-to-one change over from EAM to EDP and phase
two would be the optimization of all of the programs. This state-
ment about four hours and also a clear definition of phase one and
phase two activities was never seriously presented and, therefore,
should be discounted. In the first place, it would have been very
difficult to determine what the exact operating times of the com-
puter would be when no detailed study had been done of programs
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Therefore, the major concepts that are understood from
the original recommendations are that there would be a saving
both in personnel and in money. It is truly unfortunate that these
were taken as concepts, because a system need not save money or
people in order to be efficient. This Agency?s work is vital, and
must be done in a timely fashion regardless of cost and involve-
ment of personnel. Many years ago when computers were brand
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new, they were sold on the strength of saving money and saving
people. At that time, these were overriding considerations. How-
ever, as computers became more advanced, expensive, and complex,
it was realized that they could very well justify their existence on
other factors such as accuracy, speed, memory, compatibility, and
suitableness for the operation. Therefore, the fact that this. machine
has not saved money (in fact itis more expensive than the EAM equip-
ment) and has not saved people is not a factor that can be seriously
considered at this time. One must forget the desire to save people
and money. The only true judge of a modern computer is does it do
the job in an efficient and satisfactory manner and is it worthwhile?
Does it justify its keep? This computer is not operating in an orderly
system at present. It is not operating in an optimized or idealized
condition and it cannot be fully judged as to whether it earns its keep
until an over-all system is evolved which is based about the com-
puter. Once this optimized system is delineated, it will be apparent
whether a computer does justify itself. One of the basic underlying.
concepts of the original studies was that a detailed systems study
was necessary and that detailed work would be necessary before the
computer arrived. In addition, it stated that programming and all
other systems work must be accomplished, either beforehand or as
soon as possible. This concept was never followed, and the original
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plans for a systems study was never done. The team assembled to
do the systems study in the Automatic Data Processing Division
were also in charge of the programming. This became such an,
involved task, due to the fact that there was no experience and
these people had to learn a new field, that it became impossible
for them to do the systems study. Therefore, the progress toward
the original concept has been negligible. There has been no saving
in money, there has been no saving of people, there has been no
saving in time of processing, and there has been no systems study.
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lease, there has been no great decreaae.._in:,theamount of ec ui - Y
ment being operated. As mentioned previously, there has been
no saving in either time or people. The reasons for this is that
savings cannot be made and optimization cannot be done in a hit-
and-miss fashion. They can only result from an overall con-
scientious effort to devise a completely integrated system in which
there is a relation between all factors in such a manner as to pro-
vide for complete efficiency. Until this is done, there can be none
of these savings. This efficiency has never been achieved and
there have been no appreciable savings in equipment, in time, and
in manpower,
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savings from systems redesign, and that this would.come about
as redesign was accomplished. However, as pointed out previously,
this was never accomplished.
There have been failures and unsatisfactory performance
within the equipment complex. One item of equipment in Room 2,
the: RCA high-speed printer has never turned out satisfactory
copies. One of the greatest problems existing in this system is
due to that fact. The printer is of little value as far as quality out-
put is concerned.. For one thing, its rated speed is unacceptable to
industry. In fact, as of the first of January of this year,. RCA reduced
the.cost of this equipment on.GSAlease to one-half its former price.
ILLEGIB .. Even at that rate it is not acceptable. The card punch and read
16 hours or so per month, yet they are on lease throughout the entire
month. The cost of these are.: $1,174. 00 a month for. the card reader
and.$876. 00 a, month for the card punch. This. is. considerable money
to pay for only 16 hours of use throughout the month. These machines
do specific jobs, and, if those jobs can be modified or changei so that
the reader and the punch are not necessary, great savings can be
effected. clf it is necessary to use them to accomplish the present
,, t.%
jobs then more jobs should be placed. on this leased equipment so that
it will be economically justifiable.
The present combined. rental cost of the reader, punch, and
printer is, $3, 80.1. 00 per month. Since the printer is unacceptable,
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the manufacturer has come up with an interim suggestion. That
is, that a new system involving what is known as a satellite com-
puter be leased. This small computer has a card punch, a card
reader, and a printer. It is compatible with the present system
and is known as the RCA 301. For an additional $573. 00 a month,
or a. total of $4374. 000 a month, it is possible to lease this new
equipment. The RCA 301 does have a satisfactory printer, reader
and punch. Thus, it will be able to produce good results immediately
upon arrival. By substituting equipment,. it will be possible to
eliminate the problems of bad printing. Since this problem extends
to everyone in the Agency who is a user of these reports, this additional
$5000 00 a month will be repaid in good will and in increased efficiency.
The accompanying table shows. a comparision of the cost between the
present RCA 501 equipment and the new RCA 301 computer. Although
cost is not an essential factor here, as stated before, it does enter
into the determination. The main thing to bear in mind here is that
the problems of the punch, reader, and printer can be reduced with no n
need to make :decisions involving hundreds of thousands of dollars.
This RCA 301 equipment can be leased subject to cancellation and, if
future system studies determine that some other course of action should
crJ
be take, it can then be returned.
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Monthly Rental
(200 hours use)
Comparison of
RCA PERIPHERAL EQUIPMENT
$3, 801
Adapter
(393-1)
Adapter
(393-2)
$ 330
Processor 1,803
(303)
Card Reader
(323)
Card Control
(314-1)
Card Punch
(334)
Punch Control
(315)
Printer
(333)
Printer Control
(316-1)
489
$4, 374
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11LKET
to use the present system to its fullest efficiency and optimize it as
much as? possi.ble At the same time, efforts should be
directed toward completing an overall systems study which
is projected at least five years into the future. This study
is the only thing that can indicate whether the present com-
puter facility will, be able to operate in an efficient manner
within the next few years. The course of action, to summarize,
should then, be to retain this computer, upon which employees
have been, trained., until definite deep consideration and delib-
eration. would indicate that it may not be suitable in the future.
G. Scheduling Effectiveness
It has been difficult to assess the scheduling effectiveness of the com-
puter because there has not been an orderly system to provide for feeding
data, into the computer or accepting its output., Scheduling, of course, must
be done for a. device of this type because every minute counts. In a saturated
system such as this, minutes that are not utilized mean that someone's work
is not going to be done.
In this present system, the major work has been accomplished through-
out the day and far into the evening by much overtime work. Scheduh,.ng has
been done and is continuing to be done, however, it is difficult to adhere
to any schedule when the users of the computer information are not fully
aware of how a. computer facility operates. This is pointed out very clearly
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to utilize the present system to efficiency and optimize it as
much as possible.. At the same time, efforts should be
directed toward. completing an overall systems study which
is projected at least five years into the future. This study
is the only thing that can indicate whether the present com-
puter facility will. be able to operate in an efficient manner
within the next few years.. The course of action,, to summarize,
should then be to retain this compute r, upon. which employees
have been trained, until definite deep consideration and delib-
eration would indicate that it may not be suitable in the future.
G. Scheduling Effectiveness
It has been difficult to assess the scheduling effectiveness of the coma
puter because there has not been an orderly system to provide for feeding
oU
date into. the computer or accepting its output.. Scheduling, of course, must,
be done for a device of this type because every minute counts. In a saturated
system such as this, minutes that are not utilized mean that someone?s work
is not going to be done.
In this present system, the major work has been accomplished through-
out the day and far into the evening by much overtime work.. . Scheduling has
been done and.is. continuing to be done, however, it is difficult to adhere
to any schedule when the users of the. computer infprmation are not fully
aware of how a computer facility operates. This is pointed out very clearly
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coming for input. In these cases, it is necessary to shift the schedule.
For this reason this status study has determined that no assessment
of scheduling activities would be significant at this time. Only when
there is an orderly system evolved can it be determined. how scheduling
may be clone effectively. At that time, an evaluation can be made as to
whether these objectives are being met, The only thing that can be stated
is the fact that with all of the difficulties that the Automatic Data Proses-
sing.Division has faced from the outset, it is the opinion of this study that
they have been doing an outstanding job in meeting the requirements placed
upon them. They, of course, have not been complying with the needs of
the Agency, but have been doing more than will be found in a cross section
of computer activities in general. This is more than. should be required,
of them at this point in the development of the system.
H. Users' Reaction to Computer Services
There has been much dis satisfaction throughout the Agency with the
entire system. This study was performed within the DD/S and the dissat-
isfaction was found mainly in these areas. It is only by hearsay that we have
been apprised of some of the thoughts throughout the rest of the Agency.
The major drawback with the computer has been.the fact that reports seem
to be coming out slower the people are unable to get certain reports that
they want, certain, reports are not in the form that is desired, and people
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cannot get. their information exactly when, they want it. There has
been nothing observed by the members of this status. team that would
indicate that the users cannot be satisfied. There is no reason whatso-
ever why an orderly system cannot be evolved which will satisfy the
majority of people. In addition, when there is a general understanding
of what the computer system is all about, what the costs and involve-
ments are in producing reports, changing forms, making exceptions,
and so forth, they will be satisfied,.
I. Summary
This status study has-
(1) Evaluated development of the system to date,
(2) Ascertained the system?s lack
(3) Determined. the misunderstanding resulting from the computer
and electronic data processing system
(4) Discussed the equipment problems
(5) Demonstrated the need for management by exception, and
exception reporting
(6) Delineated large problem areas in flow of information, input
forms, and output reports
(7) Shown areas of inefficiency and error
(8) Indicated a definite lack of communication
(9) Indicated the great effort among employees
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(10) Concluded that everyone wants a change now
(11) Presented flow charts and, details to indicate the present,
status and operation of this system
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X. RECOMMENDATIONS
A. First and. foremost is the recommendation that an overall
systems study be completed in order to permit development of
an effective, orderly system.
B. It is recommended that the detailed study be made by a com-
petent team formed of members who know the intimate work of
the Agency and also of members who are awa4and conversant
with systems of this type.
C.. Complete flow charting of the entire system should be accom-
plished.
D. Portions of this system that are suited. for electronic data proces-
sing should be placed upon a computer.
E. It should be determined if the present computer is suitable
and whether it should be retained.
F. The. need. for additional or replacement computers should be
determined.
G. New peripheral equipment should be obtained as soon as possible
to alleviate the difficulties presently encountered in printing reports and
in punching and reading cards. It is further recommended. that all forms
and reports be studied.to see whether they can be streamlined, optimized,
and reduced in number.
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I. A systems indoctrination for personnel should be initiated
and directed toward the specific needs of the Agency.
J. The entire concept of data processing should. be examined apart
from considerations involving the saving of money and the reduction
of personnel. The proper consideration must be that of evolving
the most suitable operating system for the specific, unusual needs
of this particular Agency.
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