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Control Systems Guide
- 1. CONTROL AND CONTROL SYSTEMS “What gets measured happens” • What is important to know about the control process? •What are some organizational control systems and techniques?
- 2. CONTROL AND CONTROL SYSTEMS Control Systems Controlling is one of the four management functions. Control begins with objectives and standards. Control measures actual performance. Control compares results with objectives and standards. Control takes corrective action as needed. Control focuses on work inputs, throughputs, and outputs.
- 3. CONTROL AND CONTROL SYSTEMS Control Systems Controlling The process of measuring performance and taking action to ensure desired results
- 4. CONTROL AND CONTROL SYSTEMS Control Systems
- 5. CONTROL SYSTEMS Types Of Control Systems Management By Exception Focuses attention on substantial differences between desired and actual performance Feed forward Controls Ensure the right directions are set and the right resource inputs are available Concurrent Controls Ensure the right things are being done as part of work-flow operations Feedback Controls Ensure that final results are up to desired standards
- 6. CONTROL SYSTEMS Types Of Control Systems
- 7. ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES Management By Objectives MBO (Management By Objectives) A process of joint objective setting between superior and subordinate
- 8. ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES Employee Discipline Discipline is the act of influencing behavior through reprimand. Progressive Discipline ties reprimands to the severity and frequency of misbehavior.
- 9. ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES Quality Control Total Quality Management (TQM) commits to quality objectives, continuous improvement, and doing things right the first time. Quality Circle is a small group that meets regularly to discuss ways of improving work quality.
- 10. ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES Purchasing And Inventory Controls Purchasing Control buying what is needed at right quality, price, and on-time. Supply Chain Management uses information technology to link suppliers and purchasers in cost efficient ways. Inventory Control ensures that inventory is only big enough to meet immediate needs. Economic Order Quantity places new orders when inventory levels fall to predetermined points. Just-in-time Scheduling routes materials to workstations just in time for use.
- 11. ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES Breakeven Analysis Breakeven Point is the point at which revenues equal costs Breakeven Analysis calculates the point at which sales revenues cover costs. How to Calculate a Breakeven Point Breakeven Point = Fixed Costs / (Price - Variable Costs)
- 12. ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUES Breakeven Analysis
Editor's Notes
- Another similar common expression is “People will behave the way you measure them.”
- Controlling is the last of the four management functions. It is intended to allow management to see if things are going according to plan.
- The sooner you can take corrective action, the easier it will be to correct the problem.
- Input standards include material, labor and overhead in the form of administrative and operating costs.
- There is also the principal of Management By Sufficiency. It focuses on large important items even if they are on track.
- As previously mentioned, it is usually a whole lot less expensive to solve problems before they occur.
- It is important to have regular (monthly) reviews. Once or twice a year is not enough to stay on track.
- Discipline is necessary but it has to be done properly to avoid legal problems. If you have any doubts about how to do it, have an HR person with you.
- TQM applies to the entire organization. It is not limited to manufacturing.
- These are all tools used by operations managers to run efficient and effective production lines.
- Fixed costs include all costs that do not normally vary with the amount of product being produced.
- It is important to include one time “start up” costs in the calculation. These are costs that occur once at the beginning of operations. They are not fixed or variable costs.