PART III

1. Management Information System
Management by Objectives
(MIS ) is a formal system
(MBO) is an effective means providing information to managers.
for setting objectives. It also can be While not essential most
used for control purposes. Once MBO is management information systems
implemented, it used for control include the use of a computer .
purposes.
The basic idea is to provide
information in a systematic and
integrated manner, rather than in a
sporadic and piecemeal manner.
Control Methods and Systems

2. Organizational Control Systems
Information and Financial
– Activity-based costing - the true cost of all products and services.
– Economic value added - examine the value added by all activities.
– Understand the implication of key financial measures of (ratios)
organizational performance
Operations Management and Control
Purchasing
- Economic Order Quantity
- automatic reorder points
- Just-In-Time Scheduling
Project Management
Program Evaluation and Review Technique (PERT) - Identifies and controls the many
separate events in complex projects.
Statistical Quality Control
Based on the establishment of upper and lower control limits, that can be
graphically and statistically monitored to ensure that products meet standards

3. Accounting concepts and techniques as control devices
Inventory Control
For most small businesses,
inventory functions as the largest investment
the company makes. Numerous financial and
service related advantages exist for the
company that manages to effectively control
its inventory; these include leaner operations
and reduced operational expenses.