Transfer of ADP Programming Functions, Including Personnel and Records Related Thereto, From the Data Processing Center, Technical Services Department, to the Management Planning Department

July 12, 1968 REVENUE MEMORANDUM ORDER NO. 38-68 SUBJECT : Transfer of ADP Programming Functions, Including Personnel and Records Related Thereto, From the Data Processing Center, Technical Services Department, to the Management Planning Department Section II.6 of Revenue Administrative Order No. 1-67 dated January 3, 1967, provides that the Management Planning Department "develops and coordinates programs, systems and methods and procedures for data processing activities". Up to now, programming (the writing of machine language instructions) and the development of some methods and procedures are with the Data Processing Center. The problems attendant to transfer of functions from one unit to another as well as the new emphasis placed on data processing activities have delayed the full implementation of the said provision. As there has been sufficient time for a period of adjustment for both units of organization to resolve the internal problems prior to implementation, the programming function, as well as the necessary personnel, records and equipment relative thereto, are hereby transferred from the Data Processing Center to the Office of the Revenue Operation Head (Management Planning). This Order fixes responsibility and control over systems work which is one of the major functions of the Management Planning Department. It also places under one responsible supervisor the responsibility for systems development and design, ADP programming, and ADP policy formulation the Revenue Operations Head (Management Planning) being also the Chairman of the ADP Policy Committee. To carry out the function, there shall be created in the Office of the Revenue Operations Head (Management Planning) a Systems and Programming Staff; the Programming Section of the Data Processing Center is therefore abolished. The primary functions and responsibilities of the Staff shall be as follows: 1. Review, analyze, and evaluate the existing ADP system, together with all the forms, methods and procedures involved, for possible improvement; 2. Study, design and develop additions and/or improvements to the system; 3. Prepare flow charts and block diagrams for new job applications; 4. Write machine language programs for job applications adopted; 5. Prepare instructional materials for the training of employees involved in the implementation of the ADP system; 6. Prepare written instructions and manuals on the ADP system for the guidance of all concerned; 7. Perform such other functions as may be assigned from time to time. So as to provide support to the Data Processing Center, maintenance ADP programmers shall be retained in the Data Processing Center. Their functions shall as follows: 1. Resolve operational problems pertaining to existing programs already is use; 2. Coordinate closely with the programmers of the Systems and Programming Staff (Management Planning); 3. Revise or prepare new programs required by existing job applications after consultations with the Systems and Programming Staff; 4. Finish programs already began in the Programming Section, Data Processing Center, and up-date existing ones in use; and 5. Explain to machine operators features of programs prepared and resolved problems when they occur. Any problem relative to the system that cannot be resolved by the Data Processing Center shall be immediately brought to the attention of the Revenue Operations Head (Management Planning). In no instance shall any program prepared in the Management Planning Department be revised or changed by the maintenance programmers without the consent and knowledge of the head of the Systems and Programming Staff. No job order shall be entertained by the Data Processing Center without the approval of the Chairman, ADP Policy Committee. The Chief, Data Processing Center, shall set aside, upon request, some computer time for purposes of program evaluation by the Systems and Programming Staff. cdt The Revenue Operations Head (Administrative Services) shall see to it that the records and equipment encompassed in this Order shall be transferred with the least possible delay. A report thereof shall be submitted to this Office. This Order takes effect immediately. MISAEL P. VERA Commissioner of Internal Revenue REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE MANILA July 30, 1968 MEMORANDUM for The Commissioner of Internal Revenue In connection with the memorandum of the Revenue Operations Head (Technical Services) concerning his objections to the proposed transfer of the ADP programming functions to the Management Planning Department, hereunder are comments to his objections. 1. First objection was for better coordination between the systems programmers and the operating personnel. The main function of the systems/programmers are defining general procedures and data processing systems and preparation of computer programs. On the other hand data processing operations are confined to establishing and maintaining schedules, records, and controls for the flow of documents, preparation of accurate and legible source data, error detection and correction, and production and distribution of reports. It is very clear then that the functions of the Systems and Programming Staff are distinct and different from the operations unit. To put them together in one unit is inviting confusion. For what would prevent programmers from doing operations work to the detriment of their primary responsibilities? Coordination loses its effectiveness in the absence of fixed responsibilities. 2. Second objection was that separation of functions between programmers and the operating personnel is good only for large enterprises, like the IRS. This is not true. The EDP Installation of the Bureau of Lands with about forty personnel has its Programming Unit separate and independent from the Operating Unit. The GSIS, SSS, ESSO, PHILSUGIN, IBM, SAN MIGUEL, FGU, are only a few of our local EDP installations where the Programming Unit is divorced from the Operating Unit. The BIR has one of the largest EDP installations in the Philippines. In a research study on Advance Business Systems, the American Management Association has this to report: " . . . when a company starts its systems development with a few applications on one departments computer, then gradually adds applications used by other departments, its frequently does not relocate the systems unit. As a result, the company evolves into advanced systems with a cumbersome organization structure. When such a situation occurs, someone-preferably the chief executive-has to make the decision to move the system unit to a more strategic location." 3. The final reason stated was that systems development activities are already being done by the Management Planning Department. A programmer's job should not be confined only to the operations of DPC. A programmer, to be most effective, must have a broader outlook and must encompass all other aspects of the application being programmed. This includes from the time when the source document is prepared outside the DPC up to the time when the output is finally prepared by the DPC. This broader outlook can be attained only when these programmers are exposed to the systems development activities of the Management Planning Department. As early as 1966, Mr. Monroe Berg, AID American Consultant on ADP, has advocated for the transfer of the Systems and Programming Staff to the Management Planning Department. In 1967, Revenue Administrative Order No. 1-67 clearly states that programming and systems work is the function of the O & M under Management Planning Department, not of the DPC. In 1968, Mr. Walter Marceli, another AID consultant on ADP also reiterated in his recommendation the transfer of the programmers. Lately, on July 1, 1968, Revenue Memorandum Order No. 37-68 reactivated the ADP Policy Committee making the Systems and Programming Staff as its working force. Evidently, the main function of the Systems and Programming Staff as envisioned is not confined to the activities of the DPC but of the entire BIR. In view thereof, we are reiterating our original proposal to transfer the systems and programming work to this Office for the good of the revenue service. cd LAURO D. ABRAHAN Revenue Operations Head (Management Planning) July 26, 1968 MEMORANDUM FOR: The Commissioner This is in connection with the proposed Revenue Memorandum Order transferring the ADP programming functions including personnel, etc. to the Management Planning Department, which was referred to the undersigned for comment. The opinion of the Chief, Data Processing Center was requested on the matter and this is contained in his attached memorandum in which he contends that: 1. The retention of the ADP programming functions in the DPC is more beneficial to the service because there is better coordination between the work of the programmers and that of the other personnel of the division. 2. That the assignment of the programming functions in another unit may be good in very large enterprises like those obtaining in the U.S. Internal Revenue Service. In smaller areas as in the BIR, it is much better if the programmers are in the same unit. 3. That after all, the systems development activities or any planning for the improvement in the DPC is still the general function of the Management Planning Department and this can be retained in that department. In view of the foregoing, the undersigned agrees with the Chief, Data Processing Center to have the programming functions retained in his division. cdll Respectfully submitted, S. BATAC Revenue Operations Head (Technical Services) July 25, 1968 MEMORANDUM FOR: The Revenue Operations Head (Technical Services) This is in connection with the attached proposed Revenue Memorandum Order transferring the ADP programming functions, including personnel and records related thereto, from the Data Processing Center to the Management Planning Department, which you referred to me for comment. Our comments are as follows: 1. In automatic data processing, in addition to (1) document scheduling and control and (2) operations, systems development and design and the preparation of machine language programs are two of the indispensable activities. These four activities are so interrelated that the absence of any one of the four renders the other three useless. Systems development and programming work are separate and distinct activities and performed by separate groups of technicians. Both may be performed in a single unit of organization or each in separate units. In big organizations where every field office has a complete set of electronic data processing equipment and only magnetic tapes are sent to the data processing center, programming and systems work are done outside the data processing equipment installation for purposes of uniformity or instructions and report formats. In small installations such as ours where the programmers often are utilized as machine operators when problems in their programs are encountered, the separation of programming activities from the work unit where the computers are installed may not be very practical . The systems work toward the improvement of the existing systems and procedures may be done outside the unit where the machines are installed. In fact, we are doing this now because we always asked for the assistance of O & M Division for the purpose of improving our existing systems and procedures. 2. In the proposed Memorandum Order, the maintenance of operational programs is the responsibilities of the Data Processing Center. From our experience, the maintenance of existing programs does not just mean the insertion of the necessary instructions to meet changes in requirements and policies. In many instances, it is easier and quicker to re-write the whole program for a particular job when changes are to be made rather than just incorporate in the program changes contemplated. This is so because of the limited core capacity of our machine and re-writing programs and combining instructions or eliminating some saves memory core. 3. Our experience also show that it is extremely difficult for one programmer to update or correct a program prepared by another. Invariably when errors are encountered during the run of the programs, the programmer who prepared the program is the same programmer who analyzes and looks for the errors in the program and correct the same. If original programs are prepared in another unit and the maintenance thereof will be done in the Center, as explained above, maintenance and up-dating will be difficult and will result in production delays . cd 4. The preparation of a program is not a " one shot affair " whereby after the programmer has declared his program operational everything is alright. There are many unforeseen conditions of data invariably not incorporated in the programs prepared. Because of this during the runs there is a constant consultation between the machine operator and the programmer . In unusual situations and in order to expedite the completion of the desired reports the programmer himself not only stays in the machine room ready to correct his program but also actually operate the computers and analyze the console messages. If programmers and computer operators will work under different work units the things that have been described above in order to expedite work can not be done anymore . The operator has to stop the run of the program and wait for the programmer to resolve the problem encountered. 5. If programming work is done under one Revenue Operations Head and the use of such programs is done under another Revenue Operations Head, the resolution of problems encountered during the program runs will be delayed because the information about the problems to the Revenue Operations Head under these supervision the program has been prepared will, as required under present administrative procedures, be passed thru the Revenue Operations Head charged with the supervision of the activities of the people operating the machines. Separating therefore programming activities from machine operation activities will mean an increase in administrative work steps . Modern management practices strive to minimize and simplify administrative work steps . 6. Many of those who have been trained as programmers are in the Data Processing Center at present although they are not yet actually engaged in programming work. These people are looking forward to the day when their skills and knowledges in programming will be utilized when turn-over of the present programmers occur. The transfer of programming activities to another unit outside the Data Processing Center closes that avenue of hope of those who have been trained as programmers because recommendations for the filling of vacant items of programmers will no longer be coming from the Technical Services Department . 7. I believe that both systems development activities and EDP programming activities will be coordinated effectively under the present Chairman, ADP Policy Committee because he (Mr. Abrahan) possesses a well rounded knowledge not only of the requirements of data processing activities but also of his good grasp and understanding of the electronic data processing equipment use in automatic data processing. It was because of these knowledges that he was designated Chairman of the ADP Policy Committee even when he was in the Assessment Department. He continued to be the chairman even when he was transferred to the Management Planning Department. It is my guess that because of his special knowledge of computer systems and the activities relating thereto, he will continue to be chairman even if he were transferred to another department or shall have been promoted Deputy Commissioner of Internal Revenue. Even now that ADP systems work is mostly done in the O & M. Division and programming in the DPC, Mr. Abrahan does a wonderful job of coordinating both activities. If programming activities is transferred to the Management Planning Department now and Mr. Abrahan is transferred elsewhere after the transfer of the activity has been effected and another one who does not have a good grasp of electronic data processing concept and techniques replaces him, the effective coordination of the important elements of automatic data processing shall slide back if not entirely lost. In that event the revenue service shall be the loser. In view of all the foregoing, it is my personal honest belief that under the present conditions and considering the small size of our data processing installation, systems work and programming work need not necessarily be in the same work unit. In other words, systems work by systems analysts can still be effectively done in the Management Planning Department . Whatever systems improvement are adopted upon the recommendation of the systems analysts can effectively be carried out by programmers working in the Data Processing Center . It may be mentioned in this connection that it is always advantageous and expeditious for programmer to have and easy access to the computers for the assembling, testing and evaluation of their programs. Considering further the lack of competent and qualified computer personnel, it will be to the advantage of the revenue service if programmers can be made to double-up as machine operators when the exigency of the service so require. This arrangement can not be done if programming activities is done outside the Data Processing Center. Programming work is technical work . In fact that positions of programmers have been filled by non-civil service eligibles but posses the technical skill required of the technical position. As such, I believe that incumbents of these technical positions should properly belong to the Technical Services Department . cdta Respectfully submitted, FIDEL S. BAARES Chief, Data Processing Center 1st Indorsement July 22, 1968 Referred to the Revenue Operations Head (Technical Services) B.I.R., Manila, the herewith enclosed proposed Revenue Memorandum Order transferring the ADP programming functions, including personnel and records related thereto, from the Data Processing Center, Technical Services Department, to the Management Planning Department, and requesting his comment. cdi MISAEL P. VERA Commissioner of Internal Revenue