Is there any way to not require email address or disable notification upon setting up a member?

Maybe the simplest way is to make a quick plugin that has your own form for inserting users.

wp_insert_user() doesn’t require an email address or password, and doesn’t generate an email notification.

function wpa70409_add_user(){
    $userdata = array(
        'user_login' => 'testuser',
        'display_name' => 'Test User'
    );
    wp_insert_user( $userdata );
}