This presentation discusses about non budgetary control techniques in Principles of Management

1. NON – BUDGETARY CONTROL
TECHNIQUES
R.ArunKumar,AP/Mech,RIT

2. NON – BUDGETARY CONTROL:
 Control over the organization other than the financial resources
are called as non – budgetary control techniques.
 Non budgetary control techniques are classified into:
 Traditional techniques
 Modern techniques
R.ArunKumar,AP/Mech,RIT

3. 1. Traditional techniques:
1a. Statistical data and chart:
R.ArunKumar,AP/Mech,RIT

4. 1. Traditional techniques:
1a. Statistical data and chart:
R.ArunKumar,AP/Mech,RIT

5. 1. Traditional techniques:
1a. Statistical data and chart:
R.ArunKumar,AP/Mech,RIT

6. 1. Traditional techniques:
1b. Personal observation:
R.ArunKumar,AP/Mech,RIT

7. 1. Traditional techniques:
1c. Operational audit:
R.ArunKumar,AP/Mech,RIT

8. 1. Traditional techniques:
1d. Break even analysis:
 Used to determine the point at which all fixed costs have been
recovered and profitability begins.
CostsVariableUnit-PriceUnit
CostsFixedTotal
Breakeven:
R.ArunKumar,AP/Mech,RIT

9. 1. Traditional techniques:
1e. Special reports:
R.ArunKumar,AP/Mech,RIT

10. 1. Traditional techniques:
1f. Responsibility accounting:
 On the basis of achievement employee will be rewarded.
R.ArunKumar,AP/Mech,RIT

11. 1. Traditional techniques:
1g. Balanced scorecard:
 Balanced scorecard includes the details of
1. Financial expenditure
2. Customer needs and satisfaction
3. Internal process
4. People / employee’s growth
R.ArunKumar,AP/Mech,RIT

12. 1. Traditional techniques:
1g. Balanced scorecard:
R.ArunKumar,AP/Mech,RIT

13. 1. Traditional techniques:
1g. Balanced scorecard:
R.ArunKumar,AP/Mech,RIT

14. 2. Modern techniques:
2a. Linear programming:
 Helps in selecting which is the most suitable or optimistic
method to find the solution.
R.ArunKumar,AP/Mech,RIT

15. 2. Modern techniques:
2b. PERT:
 A flow chart diagram that depicts the sequence of activities
needed to complete a project and the time or costs associated
with each activity.
 To understand this one must know the following terms:
1. Events: endpoints for completion.
2. Activities: time required for each activity.
3. Slack time: Time an individual activity can be delayed.
4. Critical path: Most time consuming sequence of events.
R.ArunKumar,AP/Mech,RIT

16. 2. Modern techniques:
2b. PERT:
Steps in PERT Analysis:
1. Identify every significant activity that must be achieved for a
project to be completed.
2. Determine the order in which these events must be completed.
3. Diagram the flow of activities from start to finish
4. Compute a time estimate for completing each activity.
5. Determine a schedule for the start and finish dates of each
activity and for he entire project.
R.ArunKumar,AP/Mech,RIT

17. 2. Modern techniques:
2b. PERT:
R.ArunKumar,AP/Mech,RIT

18. 2. Modern techniques:
2c. Critical path method:
R.ArunKumar,AP/Mech,RIT

19. 2. Modern techniques:
2d. Gantt Chart:
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20. 2. Modern techniques:
2e. Load Chart:
R.ArunKumar,AP/Mech,RIT

21. 2. Modern techniques:
2f. Bench marking:
R.ArunKumar,AP/Mech,RIT