This document discusses various non-budgetary control techniques used to manage organizations. It describes traditional techniques like statistical data, personal observation, operational audits, and break-even analysis. It also covers modern techniques such as linear programming, PERT (Project Evaluation and Review Technique), critical path method, Gantt charts, load charts, and benchmarking. PERT is explained in detail as a flow chart that depicts project activities, time estimates, and the critical path for timely completion. Both traditional and modern non-financial control methods allow managers to monitor performance in areas beyond budget figures.

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