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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 Pic
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What is Controlling? Controlling is the process of monitoring, comparing, and correcting work performance Monitoring Comparing Correcting
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Why controlling is Important??
Only way that managers know whether organizational goals are being met and if not, the reasons why?
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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
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Requirements of Effective Controls
Achieving economy of control Establishing controls that lead to corrective action Strategic placement Information quality Quick action
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Process of Control Setting Standards for Performance
Measuring Actual Performance Pic
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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
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Managerial Decisions in the Control Process
Stretch the Standard Stretch the Standard
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Critical Control Points, Standards & Benchmarking
Simple Operation Large scale operations
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Principle of Critical Point Control
Effective Control requires attention to factors critical to evaluating performance against Plans
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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
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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.
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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.?
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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
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Benchmarking An approach for setting goals and productivity measures based on best industry practices. Types of Benchmarking: – Strategic Benchmarking – Operational Benchmarking – Management Benchmarking
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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.
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Feedback Control
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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
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Feedforward Control The most desirable type of control is feedforward control which prevents problems because it takes place before the actual activity.
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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.
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Feedforward versus Feedback
Inputs Process Outputs Desired value of Outputs (Standard) Simple Feedback Feedforward Corrective Action Information
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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
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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
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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
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Control techniques and information technology
Tools and techniques to aid managers control
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Budget Formulation of plans for future in numerical terms.
Statements of anticipated results Financial dollarizing plans 2. Non-financial
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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
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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
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Dangers & Variations in budgeting
A) Over-budgeting B) Overriding enterprise goals C) Hiding inefficiencies D) Causing inflexibility (Less Budgeting) A) Variable B) Flexible
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Types of Budgets Alternative budgets Supplementary budgets
Zero base budgeting Effective budgetory control A) Top management support B) Participation C) Standards D) Information
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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
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Information technology
Management information system (MIS) (Describe the planning and control at Volkswagon as an example; chart) Expanding basic data Information indigestion Intelligence services
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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
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Challenges created by IT
Resistance to computer application Speech recognition devices Telecommuting Computer networks Video to depict the entire subtopic and a case study
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Productivity, Operations Management, and Total Quality Management
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Productivity & Control
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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
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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
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Concepts of Productivity
1. Objective Concept 2. Scientific Concept 3. Measure Concept 4. Efficiency Concept 5. Factor Concept
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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.
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Productivity as Scientific Concept
Can be logically defined. It can be constant or a variable. Can be measured in absolute and relative terms.
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Productivity as Measure Concept
Useful as a relative measure of output or actual inputs measured across time or against common entities.
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Productivity as Efficiency Concept
Productivity Vs Efficiency
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Productivity as Factor Concept
Partial Factor Productivity Multifactor Productivity Total Factor Productivity
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Productivity Improvement
Why Productivity Improvement is required?
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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
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Productivity, Operations Management, and Total Quality Management
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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.
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Productivity & Control
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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
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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
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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
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Techniques for Measurement of Productivity
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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
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JIDOKA
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HEIJUNKA
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KAIZEN
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5S OF HOUSEKEEPING
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MUDA Elimination
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Poka Yoke
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Single Minute Exchange of Die
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Total Productivity Maintenance
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Just In Time
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KANBAN
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Process Oriented Management
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VISUAL MANAGEMENT
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SDCA/PDCA
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Stastistical Process Control
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SUGGESTION SYSTEM
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WORK STUDY Productivity
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Operations Management & Control
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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.
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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
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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)
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Work Simplification
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Quality Circle
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Total Quality Managemet
The Rickshawalla
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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)
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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.
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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
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Thank You
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