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General Information Manual
An Introduction to
IBM Punched Card Data Processing
Contents
Fundamentals of IBM Accounting ........................................................ 2
The IBM Card .......................................................................................... 3
Coding Data ............................................................................................ 5
Punching and Verifying Data .............................................................. 6
Principles of IBM Machine Processing ...................... ............................ 9
Sorting Data ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... .......................... 10
The Accounting Machine ...................................................................... 12
The Control Panel .................................................................................. 16
Accounting Controls .............................................................................. 17
Other Punched Card Machines ............................................................ 18
The Use of Prepunched Data ................................................................ 20
Glossary .................................................................................................... 20
An Introduction to
IBM Punched Card Data Processing
For almost three quarters of a century the punched of recording the census data crosswise on a long strip
card has been utilized to solve record-keeping problems. of paper. The facts were recorded by punching holes
Since the first governmental application of punched in the strip in a planned pattern so that each hole in
cards, their use has extended into virtually every type a specific location meant a specific thing. A special ma-
of commercial and scientific enterprise. The develop- chine was able to examine the holes and electrically
ment of the cards, and the machines to process them, perform the tabulation as the long strip was passed over
began as the result of a specific need. Demands from a sensing device. For ease of handling and for dura-
government, science and industry have brought about bility the paper strips soon were replaced by cards of
today's IBM punched card data processing machines and a standard size and shape. Each card was used to record
large electronic computers. They are called data process- the facts about an individual or a family - a unit situ-
ing machines because their primary function is to proc- ation. These cards were the forerunners of today's
ess business, scientific or commercial information (data) punched cards, or "unit records."
in such a fashion as to give desired results. Results may The first users of the punched cards employed them
take the form of a paycheck, a commission statement, a for vital statistics. Some of the early users were the City
purchase order, a customer invoice, a sales report, a of Baltimore, the Bureau of Vital Statistics of New Jer-
profit or loss statement, or an inventory report. All of sey and the Board of Health of New York City. In 1890
these tasks, and many others, may be performed on the tabulating equipment was used for the first time in
same set of equipment. census work with great success in reducing the time nec-
The development of the punched cards and the ma- essary to complete census reports. The completed re-
chines to process them was stimulated by the needs of ports were available for use in two and one-half years,
the United States Census Bureau. In 1880 the ten-year or about one-third of the time spent on the previous
census was taken for the tenth time as required by law. compilation, despite an increase in population from
Census data was handwritten on large cards. In order 50 million to 62 million in the intervening ten years.
to compile facts, the cards had to be hand-sorted into Through the next years the equipment became more
the proper classifications (such as home owner, occupa- developed for the purposes of the Census Bureau. Then
tion, etc.) and counted manually for desired totals. came a wider application of the idea. If the equipment
They were then sorted and tallied again and again to was satisfactory for use in tabulating the census, might
complete the whole Census Report. This method was it not also be suitable for business? The answer was yes,
tedious, cumbersome and costly, as millions of cards and firms found uses for the equipment, mostly statis-
were involved. The possibilities for error were great tical. Insurance companies adopted the machines for
and checking for accuracy was nearly impossible. analyzing risks in various classifications (actuarial work).
By 1885 the Census Bureau was still struggling to Railroads were early users for the analysis of freight
compile the collected facts of the 1880 census into use- statistics. A large department store used punched cards
ful and meaningful form. When it became apparent for sales analysis. Cost accounting in a steel company
that in the future the compilation could take longer was a commercial use for punched cards prior to 1900.
than the ten-year span between each census, the need In the late 1800s and early 1900s, market areas were
was realized for a faster and more accurate way to per- widened by improved transportation, and manufactur-
form the required task. By 1887, when the 1880 Census ers were adopting mass production techniques. Com-
Report was finally completed, Doctor Herman Hol- mercial enterprises were growing. Their record-keeping
lerith, a statistician with the Census Bureau, had worked and accounting functions required more and more per-
out the basis for a mechanical system of recording, com- sonnel. Each individual in the office was performing a
piling and tabulating census facts. His system consisted smaller part of the overall operation. The time neces-
sary to combine the individual's results with all of the more productive tasks. The importance of this is that
others was excessive. Accounting results were often re- many firms maintain thousands of different items in
ceived so late by management that they were of an stock.
historical rather than operational nature. The solution In recent years record-keeping problems have multi-
to many such problems was the use of data processing plied because of the size of business, its competitive
machines, which were employed to reduce the moun- nature and the demands of management in wanting
tains of paperwork, to effect standardization of methods, up-to-date facts with which to guide their business.
to speed up results and to reduce the cost of record IBM punched card data processing equipment has been
keeping. augmented by the development of the electronic com-
In addition, the application of punched cards to puter which enables the user to accomplish data proc-
commercial problems has resulted in the ability to man- essing tasks hitherto determined impossible. The tre-
age "by exception." Management is notified of those mendous power of the electronic computer is the direct
situations which call for decision at a specific time. For outgrowth of the need for it.
example, in using punched cards for inventory control, The use of the punched card has spread to almost
only those items which are overstocked or understocked every area of commerce, science and industry, and to
(according to previously established standards) are almost every size of enterprise within each area. The
called to management's attention. The items for which punched card meets the record-keeping requirements
there are adequate inventory amounts are automati- of the small wholesaler, the scientist or the small town
cally passed over. Management does not have to exam- just as easily as those of the largest. The success of the
ine each inventory record to locate the few calling for punched card in meeting these requirements is ex-
attention. The time of the individual may be spent on pressed through its widespread use in the world today.
Fundamentals of IBM Accounting
The basic principle of IBM accounting: information is the result of a sale are to sales records, accounts receiv-
recorded once in an IBM card which is then available able ledgers, inventory records, and salesmen accounts.
as required to give desired results by machine process- Each posting requires a different sorting of the same
ing. Data is registered in IBM cards in the form of source document. Totals are taken manually and
punched holes. Once the punching is completed there posted manually after each sort.
is a lasting record which may be processed at machine
Utilizing the IBM method of accounting, the details
speeds to obtain desired or needed results, when re-
of the transactions are punched - one transaction to
quired. Transactions of a similar type are processed
a card, or unit record. Once the accuracy of the punch-
together to increase machine effectiveness.
ing is verified, the grouping by account may be accom-
In accounting, one transaction usually affects more
plished on a sorting machine at a high rate of speed;
than one account. The source document on which the
then the total may be summarized by group mechani-
transaction is recorded is used to post to all affected
cally. After that the cards are re-sorted and resumma-
accounts. However, if more than one transaction occurs
rized by machine. This continues until all the necessary
in a given period, the usual method is to summarize
totals have been taken and the entries made.
the transactions for that period by each account and
then post the total to the appropriate account. In summary, the basic principle of IBM accounting
This system requires the sorting of documents manu- is that information once recorded in an IBM card may
ally to obtain the proper groupings. Totals are taken be used time and time again. Data is punched and veri-
by each group and then posted. For example, in a sales fied and may then be classified (sorted) and summarized
enterprise some of the entries which might be made as to produce desired results by machine processing.
2
The IBM Card
The IBM card measures 7% inches by 3~ inches and are fed through machines either "9 edge first" or "12
is .007 inches in thickness. The card stock is of con- edge first." "Face up" means the printed side is facing
trolled quality which must meet rigorous specifications up and "face down" means the opposite.
in order to provide strength and long life. This is nec- Each column of the card is able to accommodate a
essary to insure the accuracy of results, the proper oper- digit, a letter or a special character. Thus the card may
ation of IBM data processing machines and the contin- contain up to eighty individual pieces of information.
ued usability of information long after it is recorded. Digits are recorded by holes punched in the digit punch-
The card is divided into eighty vertical areas called ing area of the card from 0 to 9. For example, in the
"columns" or "card columns." They are numbered one card in Figure 1, there is a 1 punched in column 63, a
to eighty from the left side of the card to the right. 9 in column 72 and a 4 in column 77.
Each column is then divided into twelve punching posi- The top three punching positions of the card (12, 11
tions. Thus in the IBM card there are 960 punching or X, and 0) are known as the zone punching area of
positions altogether. The punching positions are desig- the card. (It should be noted that the 0 punch may be
nated from the top to the bottom of the card by 12, 11 either a zone punch or a digit punch.) In order to ac-
or X, 0, 1, 2, 3, 4, 5, 6, 7, 8 and 9. The punching posi- commodate any of the 26 letters in one column, a com-
tions for digits 0 to 9 correspond to the numbers printed bination of a zone punch and a digit punch is used.
on the card. The top edge of the card is known as the The various combinations of punches which represent
"12 edge" and the bottom of the card is known as the the alphabet are based upon a logical structure (or
"9 edge." These designations are made because cards code).
CARD
UPPER LEFT
CORNER CUT
COLUMN
1~ r THE 12 PUNtHING
POSITIONS ,
THE "12 EDGE" OF THE CARD
W~----~----------~~~~~---------------.
I 12PUNCH
I 11 OR X PUNCH . A 1 PUNCHED IN
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