1. The System and Process of Controlling
Manali Kumbhar – 16-H-08
Viraj Shinde – 16-H-15
Ruchi Thakkar – 16-H-16
Pratiksha Worlikar H-26
Manish Pratap Singh Chandel – 16-H-29
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2. What is Controlling?
Controlling is the process of monitoring, comparing, and correcting work performance
Monitoring
Comparing
Correcting

3. Why controlling is Important??
Only way that managers know whether organizational goals are being met and if not, the reasons why?

4. 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

5. Requirements of Effective Controls
Achieving economy of control
Establishing controls that lead to corrective action
Strategic placement
Information quality
Quick action

6. Process of Control Setting Standards for Performance
Measuring Actual Performance
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7. 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

8. Managerial Decisions in the Control Process
Stretch the Standard
Stretch the Standard

9. Critical Control Points, Standards & Benchmarking
Simple Operation
Large scale operations

10. Principle of Critical Point Control
Effective Control requires attention to factors critical to evaluating performance against Plans

11. 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

12. 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.

13. 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.?

14. 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

15. Benchmarking
An approach for setting goals and productivity measures based on best industry practices. Types of Benchmarking: – Strategic Benchmarking – Operational Benchmarking – Management Benchmarking

16. Feedback Control System
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.

17. Feedback Control

18. 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

19. Feedforward Control
The most desirable type of control is feedforward control which prevents problems because it takes place before the actual activity.

20. 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.

21. Feedforward versus Feedback
Inputs
Process
Outputs
Desired value of Outputs (Standard)
Simple Feedback
Feedforward
Corrective Action
Information

22. 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 inter- relationships still represent realities

23. 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 planned—for 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

24. 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

25. Control techniques and information technology
Tools and techniques to aid managers control

26. Budget Formulation of plans for future in numerical terms.
Statements of anticipated results
Financial  dollarizing plans
2. Non-financial

27. Purpose of budgeting B) Operating expenses A) Revenues Travel
Sales of products
Services
Rentals
Royalties
Miscellaneous sources
B) Operating expenses
Travel
Data processing
Entertainment
Advertising
Telephone
Insurance

28. Time, space, material and product A) Direct-labour B) Machine hours
C) Units of materials
D) Square feet allocated
E) Units produced
Capital expenditure budget
Expenditures for
A) Plant
B) Machinery
C) Equipment
D) Inventories
Cash budgets

29. Dangers & Variations in budgeting
A) Over-budgeting
B) Overriding enterprise goals
C) Hiding inefficiencies
D) Causing inflexibility (Less Budgeting)
A) Variable
B) Flexible

30. Types of Budgets Alternative budgets Supplementary budgets
Zero base budgeting
Effective budgetory control
A) Top management support
B) Participation
C) Standards
D) Information

31. 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)
Gantt Charts
Milestone budgeting
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)
Major features
Strengths and weaknesses

32. Information technology
Management information system (MIS)
(Describe the planning and control at Volkswagon as an example; chart)
Expanding basic data
Information indigestion
Intelligence services

33. The use of computers in handling information
(can show a video here)
Impact of computers on managers at different levels
Supervisory
Middle
Top
Application and impacts of microcomputers

34. Challenges created by IT
Resistance to computer application
Speech recognition devices
Telecommuting
Computer networks
Video to depict the entire subtopic and a case study

35. Productivity, Operations Management, and Total Quality Management

36. Productivity & Control

37. 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

38. Japanease Holistic View of Productivity Concept
Goods / Services Produced
Customer Satisfaction
Quality of Life
Pollutants Generated
Effects on Environment
Resource
Process
Employee Satisfaction
Quality of Work Life

39. Concepts of Productivity
1. Objective Concept
2. Scientific Concept
3. Measure Concept
4. Efficiency Concept
5. Factor Concept

40. 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.

41. Productivity as Scientific Concept
Can be logically defined.
It can be constant or a variable.
Can be measured in absolute and relative terms.

42. Productivity as Measure Concept
Useful as a relative measure of output or actual inputs measured across time or against common entities.

43. Productivity as Efficiency Concept
Productivity Vs Efficiency

44. Productivity as Factor Concept
Partial Factor Productivity
Multifactor Productivity
Total Factor Productivity

45. Productivity Improvement
Why Productivity Improvement is required?

46. 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

47. Productivity, Operations Management, and Total Quality Management

48. 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.

49. Productivity & Control

50. 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

51. Japanease Holistic View of Productivity Concept
Goods / Services Produced
Customer Satisfaction
Quality of Life
Pollutants Generated
Effects on Environment
Resource
Process
Employee Satisfaction
Quality of Work Life

52. 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

53. Techniques for Measurement of Productivity

54. 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

55. JIDOKA

56. HEIJUNKA

57. KAIZEN

58. 5S OF HOUSEKEEPING

59. MUDA Elimination

60. Poka Yoke

61. Single Minute Exchange of Die

62. Total Productivity Maintenance

63. Just In Time

64. KANBAN

65. Process Oriented Management

66. VISUAL MANAGEMENT

67. SDCA/PDCA

68. Stastistical Process Control

69. SUGGESTION SYSTEM

70. WORK STUDY
Productivity

71. Operations Management & Control

72. 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.

73. Operations Management - Overview
Process Analysis
and Design
Process Control
and Improvement
Supply Chain Management
Project
Management
Operations
Strategy
Quality
Management
Supply Chain
Strategy
Process Analysis
Statistical
Process Control
Just in Time
Job Design
Planning for Production
Consulting and
Reengineering
Manufacturing
Capacity Management
Facility Layout
Aggregate
Planning
Services
Inventory Control
Waiting Line Analysis and Simulation
Materials Requirement Planning
Introduction

74. 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)

75. Work Simplification

76. Quality Circle

77. Total Quality Managemet
The Rickshawalla

78. 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)

79. 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.

80. 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 the United States China
Control by peers Control by superior Control by group leader (superior)
Control focus on group Control focus on individual Primary control focus on groups,
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 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

81. Thank You