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.
As with planning, there are many different types of control systems. It is important to decide how much effort you want to put into controlling a particular activity.
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.
MODULE 11CONTROL AND CONTROL SYSTEMS “What gets measured happens” • What is important to know about the control •What are process? some organizational control systems and techniques?
CONTROL AND CONTROL SYSTEMSControl SystemsModule Guide 11.1 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.
CONTROL AND CONTROL SYSTEMSControl Systems Controlling The process of measuring performance and taking action to ensure desired results
CONTROL AND CONTROL SYSTEMSControl Systems Output Standard Measures performance results in terms of quantity, quality, cost, or time. Input Standard Measures work efforts that go into a performance task
CONTROL SYSTEMSTypes Of Control Systems Management By Exception Focuses attention on substantial differences between desired and actual performance Feedforward Controls Ensure the right directions are set and the right resource inputs are available f 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
CONTROL AND CONTROL SYSTEMSOrganizational Control Systems andTechniquesMODULE GUIDE 11.2 Control focuses on work inputs, throughputs, and outputs. Management by objectives integrates planning and controlling. Employee discipline is a form of managerial control. Quality control is a foundation for Total Quality Management. Purchasing and inventory controls help save costs. Breakeven analysis shows where revenues will equal costs.
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUESManagement By Objectives MBO (Management By Objectives) A process of joint objective setting between superior and subordinate
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUESEmployee Discipline Discipline is the act of influencing behavior through reprimand. Progressive Discipline ties reprimands to the severity and frequency of misbehavior. MANAGEMENT TIPS “Hot stove rules” of employee discipline • Issue a reprimand immediately. A hot stove burns the first time you touch it. • Direct a reprimand toward someone’s actions, not their personality. A hot stove doesn’t hold grudges, humiliate people, or accept excuses. • Apply a reprimand consistently. A hot stove burns anyone who touches it, and it does so every time. • Provide an informative reprimand. A hot stove lets a person know what to do to avoid getting burned again: “Don’t touch.” • Give the reprimand within a supportive setting. A hot stove conveys warmth but with an Inflexible rule: “Don’t touch.” • Support a reprimand with the relevant rules. The Don’t-touch-a-hot-stove rule isn’t a power play, a whim, or an emotion of the moment; it is a necessary rule of reason.
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUESQuality 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. Four Absolutes of Quality Control 1. Quality means conformance to standards. Workers must know exactly what performance standards they are expected to meet. 2. Quality comes from defect prevention, not defect correction. Leadership, training, and discipline must prevent defects in the first place. 3. Quality as a performance standard must mean defect-free work. The only acceptable quality standard is perfect work. 4. Quality saves money. Doing things right the first time saves the cost of correcting poor work.
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUESPurchasing And Inventory Controls Purchasing Control buying what is needed at the right quality, at a good price, and for on-time delivery. 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.
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUESBreakeven 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)
ORGANIZATIONAL CONTROL SYSTEMS AND TECHNIQUESBreakeven Analysis