The System and Process of Controlling Manali Kumbhar 16-H-08 Viraj Shinde 16-H-15 Ruchi Thakkar 16-H-16 Pratiksha Worlikar - 16-H-26 Manish Pratap Singh Chandel 16-H-29 Pic
What is Controlling? Controlling is the process of monitoring, comparing, and correcting work performance Monitoring Comparing Correcting Why controlling is Important??
Only way that managers know whether organizational goals are being met and if not, the reasons why? Requirements for effective controls Tailoring controls to plans and positions Tailoring controls to individual managers Designing controls to point up exceptions
at critical points Seeking objectivity of controls Ensuring flexibility of controls Fitting the control system to the organization culture Requirements of Effective Controls Achieving economy of control
Establishing controls that lead to corrective action Strategic placement Information quality Quick action Process of Control Setting Standards for Performance
Measuring Actual Performance Pic Process of Control Comparing Actual Performance With Standards This step involves determining if actual performance
compared to standards falls within acceptable limits Responding to Deviations If the deviation from performance is unacceptable, then corrective action is warranted. If the deviation is acceptable, no correction action is necessary Managerial Decisions in the Control Process
Stretch the Standard Stretch the Standard Critical Control Points, Standards & Benchmarking Simple Operation
Large scale operations Principle of Critical Point Control Effective Control requires attention to factors critical to evaluating performance against Plans Types of Critical Control Point Standards Physical Standard
Non-monetary measurements (common at operating level) Reflection of quantities: labor-hours, per unit of output, Lit of fuel/ hour, length of wire/ ton of copper Reflection of quality: hardness, durability, fastness of color, allowance of tolerance Types of Critical Control Point Standards Cost standards:
Monetary measurements (common at operating level) Cost/ unit produced, labor cost/ hour, machine hour cost Capital Standards: Monetary measurements to physical items Related to Capital investment rather than Costs Balance sheet, Ratios current assets to liabilities, RoI etc. Types of Critical Control Point Standards
Revenue Standard Attaching monetary values to Sales (Avg Sales/ customer group) Program Standards: Program to improve QC, Program to develop new product, etc. Intangible Standard: Neither physical nor monetary; difficult to establish these standards Whether the Public Relations program is successful or not? Are Supervisor loyal to the Co.?
Types of Critical Control Point Standards Goals as Standards: In modern management, verifiable Goals can be used as standards Both quantitative & qualitative goals (objectives) can be measured Strategic Plan as Control (Strategic Control) Systematic monitoring of strategic control points
Modifying strategies based on this evaluation Benchmarking An approach for setting goals and productivity measures based on best industry practices. Types of Benchmarking: Strategic Benchmarking Operational Benchmarking Management Benchmarking
Feedback Control System Feedback Control Feedback refers to the process of adjusting future actions on the basis of information about the past performance. Many Systems controls through information feedback, which shows deviations from standards and initiates changes. Feedback Control
Concurrent Control Concurrent Control is what is happening while it is happening. And this has the following advantages: ability to make immediate production adjustments compare these data with standards and to identify deviations.
allows faster decision making Feedforward Control The most desirable type of control is feedforward control which prevents problems because it takes place before the actual activity. Feedforward versus Feedback Simple feedback systems measure output of a process and feed
into the system or the inputs of a system corrective actions to obtain desire outputs. For most management problems, due to the time lags, this process becomes unfavorable. Feedforward system monitors inputs into a process to ascertain whether they are as planned. Feedforward versus Feedback Information Corrective Action
Inputs Feedforw ard Process Desired
value of Outputs (Standard ) Outputs Simple Feedback
Requirements for Feedforward Control make a thorough and careful analysis of the planning as well as the control system and identify the more important input variables by applying careful discrimination develop a model of the system keep the model up-to-date by reviewing it regularly to see whether the identified input variables and their interrelationships still represent realities
Requirements for Feedforward Control collect regularly the data on input variables and assess it properly before putting it into the system keep the feed forward system dynamic by regularly assessing the variations of actual input data from the plannedfor inputs and evaluating their impact on expected end-results take prompt corrective action to solve the problems that are
detected by the Feed forward Control System Control of Overall Performance Planning and Controlling are interrelated system Control helps to measure overall performance of the enterprise or integrated division or project against total goal Overall performance is mainly measured against financial documents i.e profit or loss statements and take necessary
steps accordingly Control techniques and information technology Tools and techniques to aid managers control Budget Formulation of plans for future in numerical terms. Statements of anticipated results
1. Financial dollarizing plans 2. Non-financial Purpose of budgeting A) Revenues i) Sales of products ii) Services iii) Rentals
iv) Royalties v) Miscellaneous sources B) Operating expenses i) Travel ii) Data processing iii) Entertainment iv) Advertising v) Telephone
vi) Insurance Time, space, material and product A) Direct-labour B) Machine hours C) Units of materials D) Square feet allocated
E) Units produced Cash budgets Capital expenditure budget Expenditures for A) Plant B) Machinery
C) Equipment D) Inventories Dangers & Variations in budgeting A) Over-budgeting B) Overriding enterprise goals C) Hiding inefficiencies
D) Causing inflexibility (Less Budgeting) A) Variable B) Flexible Types of Budgets Alternative budgets Supplementary budgets
Zero base budgeting Effective budgetory control A) Top management support B) Participation C) Standards D) Information Traditional non-budgetory control devices 1) Statistical data
2) Special reports and analyses 3) Operational audit 4) Personal observations Time event network analyses Program evaluation and review technique (PERT) 1) Gantt Charts 2) Milestone budgeting 3) PERT Program evaluation and review technique using Critical path method (CPM) (Insert images of GANTT charts, charts with milestones and charts with milestones
and their network) a) Major features b) Strengths and weaknesses Information technology Management information system (MIS) (Describe the planning and control at Volkswagon as an example; chart)
a) Expanding basic data b) Information indigestion c) Intelligence services The use of computers in handling information (can show a video here) Impact of computers on managers at different levels a) Supervisory b) Middle
c) Top Application and impacts of microcomputers Challenges created by IT a) Resistance to computer application b) Speech recognition devices c) Telecommuting d) Computer networks
Video to depict the entire subtopic and a case study Productivity, Operations Management, and Total Quality Management Productivity & Control What is Productivity?
Productivity is the input-output ratio within a time period with due consideration for quality Control. 1. Productivity of Land 2. Productivity of Material 3. Productivity of Machine 4. Productivity of Men (Labour) 5. Productivity of Capital
Japanease Holistic View of Productivity Concept Process Customer Satisfacti on
Pollutants Generate d Effects on Environme nt Employee
Satisfacti on Quality of Work Life Quality of Life Resour
ce Goods / Services Produced Concepts of Productivity 1. Objective Concept 2. Scientific Concept
3. Measure Concept 4. Efficiency Concept 5. Factor Concept Productivity as an Objective Concept Measured against an Universal Standard. Can be monitored for tactical reasons and applied in Organisational Planning.
Can be used for Process Control, Performance Control or Performance to Budget, etc. Productivity as Scientific Concept Can be logically defined. It can be constant or a variable. Can be measured in absolute and relative terms. Productivity as Measure Concept
Useful as a relative measure of output or actual inputs measured across time or against common entities. Productivity as Efficiency Concept Productivity Vs Efficiency Productivity as Factor Concept Partial Factor Productivity
Multifactor Productivity Total Factor Productivity Productivity Improvement Why Productivity Improvement is required? Factors of Productivity Improvement Capital Investment in Production/Technology/Equipment/Facilities. Economies of Scale
Training & Development Technology Change Work Method Change Procedural Change System Change Quality Management CSR Geogarphy
Productivity, Operations Management, and Total Quality Management What is Operations Management Operation is that part of as organization, which is concerned with the transformation of a range of inputs into the required output (services) having the requisite quality level.
The set of interrelated management activities, which are involved in manufacturing certain products , is called as production management. If the same concept is extended to services management, then the corresponding set of management activities is called as operations management. Productivity & Control
What is Productivity? Productivity is the input-output ratio within a time period with due consideration for quality Control. 1. Productivity of Land 2. Productivity of Material 3. Productivity of Machine 4. Productivity of Men (Labour)
5. Productivity of Capital Japanease Holistic View of Productivity Concept Process Customer Satisfacti
on Pollutants Generate d Effects on Environme nt
Employee Satisfacti on Quality of Work Life Quality of Life
Resour ce Goods / Services Produced Factors of Productivity Improvement
Capital Investment in Production/Technology/Equipment/Facilities. Economies of Scale Training & Development Technology Change Work Method Change Procedural Change System Change Quality Management CSR
Geogarphy Techniques for Measurement of Productivity Techniques for Measurement of Productivity JIDOKA HEIJUNKA
KAIZEN 5S Of Housekeeping Muda Elimination Poka Yoke SMED TPM JIT KANBAN POM
Visual Management Work Standerd The PDCA/SDCA Cycle SPC Suggesstion System Work Study JIDOKA
HEIJUNKA KAIZEN 5S OF HOUSEKEEPING MUDA Elimination Poka Yoke
Single Minute Exchange of Die Total Productivity Maintenance Just In Time KANBAN
Process Oriented Management VISUAL MANAGEMENT SDCA/PDCA Stastistical Process Control SUGGESTION SYSTEM
WORK STUDY Productivity Operations Management & Control What is Operations Management Operation is that part of as organization, which is concerned
with the transformation of a range of inputs into the required output (services) having the requisite quality level. The set of interrelated management activities, which are involved in manufacturing certain products , is called as production management. If the same concept is extended to services management, then the corresponding set of management activities is called as
operations management. Operations Management - Overview Process Analysis and Design Process Control and Improvement
Operations Strategy Process Analysis Job Design Manufacturing Facility Layout Services
Waiting Line Analysis and Simulation Quality Management Statistical Process Control Supply Chain Management
Project Management Supply Chain Strategy Just in Time Planning for Production
Consulting and Reengineering Capacity Management Aggregate Planning Inventory Control Materials Requirement Planning
What is Value Engineering? Value engineering, is the process of analyzing the operations of the product or service, estimating the value of each operation, and attempting to improve that operation by trying to keep costs low at each step or part. Work simplification
A quality circle (QC) Total quality management (TQM) Work Simplification Quality Circle Total Quality Managemet
The Rickshawalla What is Value Engineering? Value engineering, is the process of analyzing the operations of the product or service, estimating the value of each operation, and attempting to improve that operation by trying to keep costs low at each step
or part. Work simplification A quality circle (QC) Total quality management (TQM) GLOBAL CONTROLLING What is Global Controlling? Highly mobile, deployable command and control system supporting forces
for joint and multinational operations across the range of military operations, any time and anywhere in the world with compatible, interoperable, and integrated command, control, communications, computers, and intelligence systems. Also called GCCS. Global environment, in this part the focus is on controlling - Global managers have to understand the culture of the place in which they are operating to make their managerial actions successful in getting approval their staff in the place.
Controlling practices in Japan, The United States and China Here the western managers, controlling involves setting standards, measuring performance and correcting undesirable deviations, but for Japanese, this process is less direct, as shown in below table: Japanese
0by peers Control the United States Control by superior China Control by group leader (superior)
Control focus on group Control focus on individual performance performance partly on individuals
Avoiding of fixing blame on Practice of fixing blame on Tendency to save face and avoid individuals to save face of individuals blaming individuals employees
Extensive use of quality control Limited use of quality control circles circles circles Extensive use of quality control Increasing use of total quality control Little information on the use of total
quality control Primary control focus on groups, Limited use of quality control Thank You
