control techniques
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COMMONLY KNOWN CONTROL TECHNIQUESCOMMONLY KNOWN CONTROL TECHNIQUES
BUDGET AS CONTROL TECHNIQUESBUDGET AS CONTROL TECHNIQUES FINANCIAL RATIO ANALYSISFINANCIAL RATIO ANALYSIS OTHER FINANCIAL CONTROL TECHNIQUESOTHER FINANCIAL CONTROL TECHNIQUES E.V.AE.V.A M.V.A M.V.A B.E.P ANALYSIS B.E.P ANALYSIS BALANCED SCORECARDBALANCED SCORECARD BENCHMARKINGBENCHMARKING
LINEAR PROGRAMMINGLINEAR PROGRAMMING GANTT CHARTGANTT CHART PROGRAM EVALUATION & REVIEW PROGRAM EVALUATION & REVIEW
TECHNIQUES(PERT)TECHNIQUES(PERT) INFORMATION TECHNOLOGYINFORMATION TECHNOLOGY MANAGEMENT BY EXCEPTIONMANAGEMENT BY EXCEPTION VALUE CHAIN ANALYSISVALUE CHAIN ANALYSIS INVENTORY MANAGEMENTINVENTORY MANAGEMENT
FINANCIAL RATIO ANALYSISFINANCIAL RATIO ANALYSIS
RATIO-RATIO-IN SIMPLE WORDS, RATIO MEANS COMPARISON OF IN SIMPLE WORDS, RATIO MEANS COMPARISON OF ONE FIGURE WITH ANOTHER RELEVANT FIGURE OR ONE FIGURE WITH ANOTHER RELEVANT FIGURE OR FIGURES. IT MAY ALSO BE TERMED AS NUMBER EXPRESSED FIGURES. IT MAY ALSO BE TERMED AS NUMBER EXPRESSED IN TERMS OF ANOTHER NUMBER.IN TERMS OF ANOTHER NUMBER.
NO ANALYSIS IS POSSIBLE ON THE BASIS OF ABSOLUTE NO ANALYSIS IS POSSIBLE ON THE BASIS OF ABSOLUTE FIGURES. HENCE VARIOUD RATIOS ARE CALCUKATED FOR FIGURES. HENCE VARIOUD RATIOS ARE CALCUKATED FOR FINANCIAL ANALYSIS AND CONTROL.FINANCIAL ANALYSIS AND CONTROL.
SOME OF SUCH IMPORTANT RATIOS ARE AS FOLLOWS:-SOME OF SUCH IMPORTANT RATIOS ARE AS FOLLOWS:-
LIQUIDITY RATIOSLIQUIDITY RATIOS 1)1) CURRENT RATIOCURRENT RATIO
2)2) ACID TESTACID TEST
CURRENT ASSETSCURRENT ASSETS
CURRENT LIABILITIESCURRENT LIABILITIES
C.A- INVENTORIESC.A- INVENTORIES
C.LC.L
LEVERAGE RATIOSLEVERAGE RATIOS 1)1) DEBT TO ASSETSDEBT TO ASSETS
2)2) TIMES INT. TIMES INT. EARNEDEARNED
TOTAL DEBTTOTAL DEBT
TOTAL ASSETSTOTAL ASSETS
PBITPBIT
TOTAL INT. CHARESTOTAL INT. CHARES
ACTIVITY RATIOSACTIVITY RATIOS 1)1) INVENTORY INVENTORY TURNOVERTURNOVER
2)2) TOTAL ASSETS TOTAL ASSETS TURNOVERTURNOVER
SALESSALES
INVENTORYINVENTORY
SALESSALES
T.AT.A
PROFATABILITY PROFATABILITY RATIOSRATIOS
1)1) PROFIT MARGIN PROFIT MARGIN ON SALESON SALES
2)2) ROIROI
NPATNPAT
TOTAL ASSETSTOTAL ASSETS
NPATNPAT
TOTAL ASSETSTOTAL ASSETS
OTHER FINANCIAL CONTROL MEASURESOTHER FINANCIAL CONTROL MEASURES
EVA-EVA- IT IS A TOOL FOR MEASURING CORPORATE AND IT IS A TOOL FOR MEASURING CORPORATE AND DIVISIONAL PERFORMANCE. IT IS A WAY TO DETERMINE DIVISIONAL PERFORMANCE. IT IS A WAY TO DETERMINE VALUE CREATED ABOVE THE REQUIRED RATE OF RETURN, VALUE CREATED ABOVE THE REQUIRED RATE OF RETURN, FOR THE SHAREHOLDERS OF A COMPANY.FOR THE SHAREHOLDERS OF A COMPANY.
FORMULA:-FORMULA:-
EVA= (r- c). K = NOPAT- c. KEVA= (r- c). K = NOPAT- c. K
WHERE-WHERE-
r= NOPAT , called the return on invested capital.r= NOPAT , called the return on invested capital.
KK
NOPAT= net operating profit after taxNOPAT= net operating profit after tax
C= weighted avg. cost of capitalC= weighted avg. cost of capital
K= capital employedK= capital employed
MVA- MVA- IT ADDS A MARKET DIMENSON SINCE IT MEASURES IT ADDS A MARKET DIMENSON SINCE IT MEASURES THE STOCK MARKET’S ESTIMATE OF THE VALUE OF A FIRMS THE STOCK MARKET’S ESTIMATE OF THE VALUE OF A FIRMS PAST AND EXPECTED CAPITAL INVESTMENT PROJECTS. IT IS PAST AND EXPECTED CAPITAL INVESTMENT PROJECTS. IT IS THE DIFFERENCE BETWEEN THE CURRENT MARKET VALUE THE DIFFERENCE BETWEEN THE CURRENT MARKET VALUE OF A FIRM AND THE CAPITAL CONTRIBUTED BY INVESTORS.OF A FIRM AND THE CAPITAL CONTRIBUTED BY INVESTORS.
FORMULA:-FORMULA:-
MVA=V-KMVA=V-K
WHERE- WHERE-
V= market value of the firm, including the value of the firms V= market value of the firm, including the value of the firms equity and debtsequity and debts
K= capital invested in the firm.K= capital invested in the firm.
B.E.P ANALYSISB.E.P ANALYSIS
BREAK-EVEN POINT IS DEFINED AS THAT LEVEL OF VOLUME BREAK-EVEN POINT IS DEFINED AS THAT LEVEL OF VOLUME AT WHICH REVENUE EXACTLY EQUALS TO THE TOTAL AT WHICH REVENUE EXACTLY EQUALS TO THE TOTAL COST. THROUHGH A GRAPHIC REPRESENTATIONTHE COST. THROUHGH A GRAPHIC REPRESENTATIONTHE BREAK-EVEN POINT PROVIDES A POINT OF CAPACITY BREAK-EVEN POINT PROVIDES A POINT OF CAPACITY WHERE OPERATIONS PASS FROM BEING PROFITABLE TO A WHERE OPERATIONS PASS FROM BEING PROFITABLE TO A LOSS OR VICE-VERSA. THIS HELPS MANAGEMENT IN LOSS OR VICE-VERSA. THIS HELPS MANAGEMENT IN DECIDING THE LEVEL OF OUTPUT AND SALES.DECIDING THE LEVEL OF OUTPUT AND SALES.
BUDGETINGBUDGETING
BUDGETING: BUDGETING: THE FORMULATION OF PLANS FOR A GIVEN THE FORMULATION OF PLANS FOR A GIVEN FUTURE PERIOD IN NUMERICAL TERMSFUTURE PERIOD IN NUMERICAL TERMS
SOME BUDGET DEVELOPMENT METHODS ARE AS FOLLOWSSOME BUDGET DEVELOPMENT METHODS ARE AS FOLLOWS
TOP-OWN BUDGETINGTOP-OWN BUDGETING
BOTTOM-UP BUDGETINGBOTTOM-UP BUDGETING
ZERO-BASED BUDGETINGZERO-BASED BUDGETING
FLEXIBLE BUDGETING FLEXIBLE BUDGETING
ADVANTAGES OF BUDGETINGADVANTAGES OF BUDGETING
• BUDGETING IS AN INSTRUMENT WHEREBY MANAGEMENT BUDGETING IS AN INSTRUMENT WHEREBY MANAGEMENT DECIDES THE FUTURE COURSE OF ACTION.DECIDES THE FUTURE COURSE OF ACTION.
• BUDGET IS ALWAYS RELATED TO A SPECIFIED PERIOD.BUDGET IS ALWAYS RELATED TO A SPECIFIED PERIOD.
• BUDGET IS EXPRESSED IN QUANTATIVE TERMS.BUDGET IS EXPRESSED IN QUANTATIVE TERMS.
• BUDGET IS ONLY AN ESTIMATED PLAN OF ACTION.BUDGET IS ONLY AN ESTIMATED PLAN OF ACTION.
• BUDGET PROVIDES STANDARD TO BE ACHIEVED.BUDGET PROVIDES STANDARD TO BE ACHIEVED.
LIMITATIONSLIMITATIONS
• PROVES DANGEROUS WHEN BASED ON WRONG PROVES DANGEROUS WHEN BASED ON WRONG ESTIMATES.ESTIMATES.
• SOMETIMES BUDGETRY CONTROL BECOMES SOMETIMES BUDGETRY CONTROL BECOMES COMBERSOME.COMBERSOME.
• BUDGET OFTEN CONTROLS WRONG THINGS.BUDGET OFTEN CONTROLS WRONG THINGS.
BENCHMARKINGBENCHMARKING
BENCHMARKING: BENCHMARKING: THE SEARCH FOR BEST PRACTICES THE SEARCH FOR BEST PRACTICES AMONG THE COMPETITORS OR NON-COMPETITORS THAT AMONG THE COMPETITORS OR NON-COMPETITORS THAT LEAD TO THEIR SUPERIOR PERFORMANCE.LEAD TO THEIR SUPERIOR PERFORMANCE.
BENCHMARK: BENCHMARK: THE STANDARD OF EXCELLENCE AGAINST THE STANDARD OF EXCELLENCE AGAINST WHICH TO MEASURE AND COMPARE.WHICH TO MEASURE AND COMPARE.
THE METHADOLOGY ADOPTED IS AS UNDER:THE METHADOLOGY ADOPTED IS AS UNDER:
IDENTIFY THE PROBLEM AREAS.IDENTIFY THE PROBLEM AREAS.
IDENTIFY OTHER INDUSTRIES.IDENTIFY OTHER INDUSTRIES.
IDENTIFY ORGANIZATIONS THAT ARE LEADERS IN THESE IDENTIFY ORGANIZATIONS THAT ARE LEADERS IN THESE AREAS.AREAS.
SURVEY COMPANIES FOR MEASURE AND PRACTICES.SURVEY COMPANIES FOR MEASURE AND PRACTICES.
VISIT THE “BEST PRACTICE” COMPANIES TO IDENTIFY VISIT THE “BEST PRACTICE” COMPANIES TO IDENTIFY LEADING EDGE PRACTICES.LEADING EDGE PRACTICES.
IMPLEMENT NEW AND IMPROVED BUSINESS PRACTICES.IMPLEMENT NEW AND IMPROVED BUSINESS PRACTICES.
BALANCED SCORECARDBALANCED SCORECARD
BALANCED SCORECARD: BALANCED SCORECARD: A PERFORMANCE A PERFORMANCE MEASUREMENT TOOL THAT LOOKS AT FOUR AREAS- MEASUREMENT TOOL THAT LOOKS AT FOUR AREAS- FINANCIAL, CUSTOMER, INTERNAL PROCESSES AND FINANCIAL, CUSTOMER, INTERNAL PROCESSES AND PEOPLE/ INNOVATION/ GROWTH ASSETS THAT PEOPLE/ INNOVATION/ GROWTH ASSETS THAT CONTRIBUTES TO A COMPANIES PERFORMANCE.CONTRIBUTES TO A COMPANIES PERFORMANCE.
THE FOUR GENERAL PERSPECTIVE WHICH HAVE BEEN THE FOUR GENERAL PERSPECTIVE WHICH HAVE BEEN PROPOSED BY BALANCED SCORECARD ARE AS UNDER:PROPOSED BY BALANCED SCORECARD ARE AS UNDER:
FINANCIAL PERSPECTIVEFINANCIAL PERSPECTIVE
CUSTOMER PERSPECTIVECUSTOMER PERSPECTIVE
INTERNAL PROCESSES PERSPECTIVEINTERNAL PROCESSES PERSPECTIVE
INNOVATION AND LEARNING PERSPECTIVEINNOVATION AND LEARNING PERSPECTIVE
LIMITATIONSLIMITATIONS
SCORES ARE NOT BASED ON ANY PROVEN ECONOMIC OR SCORES ARE NOT BASED ON ANY PROVEN ECONOMIC OR FINANCIAL THEORY.FINANCIAL THEORY.
BALANCED SCORECARD DOES NOT PROVIDE A BALANCED SCORECARD DOES NOT PROVIDE A BOTTOMLINE SCORE.BOTTOMLINE SCORE.
LINEAR PROGRAMMINGLINEAR PROGRAMMING
ACCORDING TO WILLIAM M. FOX ACCORDING TO WILLIAM M. FOX “LINEAR PROGRAMMING IS A PLANNING TECHNIQUE THAT “LINEAR PROGRAMMING IS A PLANNING TECHNIQUE THAT PERMITS SOME OBJECTIVE FUNCTION TO BE MINIMISED PERMITS SOME OBJECTIVE FUNCTION TO BE MINIMISED OR MAXIMISED WITHIN THE FRAMEWORK OF GIVEN OR MAXIMISED WITHIN THE FRAMEWORK OF GIVEN SITUATIONAL RESTRICTIONS.”SITUATIONAL RESTRICTIONS.”
REPRESENTATION-REPRESENTATION- AX1+BX2AX1+BX2≤Z≤Z
REQUIREMENTS-REQUIREMENTS-• OBJECTIVE FUNCTION.OBJECTIVE FUNCTION.• CONSTRAINTS.CONSTRAINTS.• LINEARITY.LINEARITY.• NONEGATIVITY.NONEGATIVITY.• FINITENESS.FINITENESS.
ADVANTAGESADVANTAGES
• FACILITATES LOGICAL THINKING AND STUDY OF DATA.FACILITATES LOGICAL THINKING AND STUDY OF DATA.
• ONE CAN EVALUATE THE COSTS AND BENEFITS OF ONE CAN EVALUATE THE COSTS AND BENEFITS OF DIFFERENT ALTERNATIVES.DIFFERENT ALTERNATIVES.
• HELPFUL IN MAKING ADJUSTMENTS IN THE PLAN.HELPFUL IN MAKING ADJUSTMENTS IN THE PLAN.
• CAN BE APPLIED TO A VARIETY OF MULTIDIMENSIONALCAN BE APPLIED TO A VARIETY OF MULTIDIMENSIONAL PROBLEMS. PROBLEMS.
LIMITATIONSLIMITATIONS
SOLVES PROBLEM OF LINEAR NATURE.SOLVES PROBLEM OF LINEAR NATURE.
CANNOT PROVIDE SOLUTIONS TO PROBLEMS WHICH CANNOT PROVIDE SOLUTIONS TO PROBLEMS WHICH INVOLVE VARIABLES NOT CAPABLE OF BEING EXPRESSED INVOLVE VARIABLES NOT CAPABLE OF BEING EXPRESSED QUANTITATIVELY.QUANTITATIVELY.
UNCERTAINTIES ARE NOT CONSIDERED.UNCERTAINTIES ARE NOT CONSIDERED.
RESULT UNDER THIS TECHNIQUE ARE NOT NECESSARILY RESULT UNDER THIS TECHNIQUE ARE NOT NECESSARILY TO BE IN WHOLE NUMBERS.TO BE IN WHOLE NUMBERS.
GANTT CHARTGANTT CHART
THIS CHART SYSTEM WAS DEVELOPED BY THIS CHART SYSTEM WAS DEVELOPED BY HENRY L. HENRY L. GANTT.GANTT.
GANTT CHART-GANTT CHART- A BAR CHART THAT SHOWS THE TIME A BAR CHART THAT SHOWS THE TIME RELATIONSHIPS BETWEEN THE “EVENTS” OF A RELATIONSHIPS BETWEEN THE “EVENTS” OF A PRODUCTION PROGRAM.PRODUCTION PROGRAM.
MILESTONE BUDGETING OR MILEPOST-MILESTONE BUDGETING OR MILEPOST- ADVANCED TECHNIQUE OF GANTT CHART MILESTONE ADVANCED TECHNIQUE OF GANTT CHART MILESTONE BREAKS A PROJECT DOWN INTO CONTROLLABLE PIECES.BREAKS A PROJECT DOWN INTO CONTROLLABLE PIECES.
A
B
C
D
E
I GANTT CHART
J F M A M J JU A S
A
B
C
D
E
1 2 3 4
5 6 7 8
9 10 11 12
13 14
15 16 17 18 19
II GANTT WITH MILE STONE
J F M A M J JU A S
A
B
C
D
E
1 2 3 4
5 6 7 8
9 10 11 12
13 14
15 16 17 18 19
JAN MARFEB APRIL MAY JUNE JUL AUG SEP
III GANTT WITH MILE STONES AND NETWORK OF MILESTONES
CRITICAL PATH METHOD(CPM)CRITICAL PATH METHOD(CPM)
DEVELOPED BY M.R. WALKER OF USA IN 1956.DEVELOPED BY M.R. WALKER OF USA IN 1956. IT IS USED FOR OPTIMISING RESOURCE ALLOCATION AND IT IS USED FOR OPTIMISING RESOURCE ALLOCATION AND
MINIMISING OVERALL COST FOR A GIVEN PROJECT.MINIMISING OVERALL COST FOR A GIVEN PROJECT.
PROCEDURE-PROCEDURE- • BREAK DOWN THE PROJECT INTO VARIOUS ACTIVITIES BREAK DOWN THE PROJECT INTO VARIOUS ACTIVITIES
SYSTEMATICALLY.SYSTEMATICALLY.• NUMBER ALL THE EVENTS AND ACTIVITIES.NUMBER ALL THE EVENTS AND ACTIVITIES.• CALCULATE THE EARLIEST START TIME, EARLIER FINISH CALCULATE THE EARLIEST START TIME, EARLIER FINISH
TIME, LATEST START TIME AND LATEST FINISH TIME.TIME, LATEST START TIME AND LATEST FINISH TIME.• DETERMINE TOTAL FLOAT TIME.DETERMINE TOTAL FLOAT TIME.• IDENTIFY THE CRITICAL ACTIVITIES AND CONNECT THEM IDENTIFY THE CRITICAL ACTIVITIES AND CONNECT THEM
WITH DOUBLE LINE ARROW.WITH DOUBLE LINE ARROW.• CALCULATE TOTAL DURATION OF PROJECT.CALCULATE TOTAL DURATION OF PROJECT.
CPM NETWORK DIAGRAMCPM NETWORK DIAGRAM
4
1 2 3 6
5 7 8
4
9
2 3
1
107
2
5
6
ADVANTAGESADVANTAGES
HIGHLIGHTS THE CRITICAL ACTIVITIES.HIGHLIGHTS THE CRITICAL ACTIVITIES.
PROVIDES A TECHNIQUE OF PLANNING AND SCHEDULING.PROVIDES A TECHNIQUE OF PLANNING AND SCHEDULING.
GIVES COMPLETE INFORMATION OF ACTIVITY.GIVES COMPLETE INFORMATION OF ACTIVITY.
HELPS TO IDENTIFY POTENTIAL BOTTLENECKS.HELPS TO IDENTIFY POTENTIAL BOTTLENECKS.
LIMITATIONSLIMITATIONS
OPERATES ON ASSUMPTION OF PRECISE TIME.OPERATES ON ASSUMPTION OF PRECISE TIME.
DOES NOT INCORPORATE STATISTICAL ANALYSIS IN DOES NOT INCORPORATE STATISTICAL ANALYSIS IN DETERMINIG TIME ESTIMATES.DETERMINIG TIME ESTIMATES.
FOR EVERY CHANGE INTRODUCED ENTIRE PROJECT FOR EVERY CHANGE INTRODUCED ENTIRE PROJECT EVALUATION HAS TO BE REPEATED.EVALUATION HAS TO BE REPEATED.
NOT SUITABLE FOR A SITUATION WHICH DOES NOT HAVE NOT SUITABLE FOR A SITUATION WHICH DOES NOT HAVE DEFINITE START AND FINISH TIME.DEFINITE START AND FINISH TIME.
PROGRAM EVALUATION AND REVIEW PROGRAM EVALUATION AND REVIEW TECHNIQUE(PERT)TECHNIQUE(PERT)
PERTPERT-- A TIME EVENT NETWORK ANALYSIS SYSTEM IN A TIME EVENT NETWORK ANALYSIS SYSTEM IN WHICH THE VARIOUS EVENTS IN A PROJECT OR PROGRAM WHICH THE VARIOUS EVENTS IN A PROJECT OR PROGRAM ARE IDENTIFIED WITH A PLANNED TIME ESTABLISHED FOR ARE IDENTIFIED WITH A PLANNED TIME ESTABLISHED FOR EACH.EACH.
METHODOLOGYMETHODOLOGY PREPARATION OF THE NETWORK .PREPARATION OF THE NETWORK . NETWORK ANALYSIS.NETWORK ANALYSIS. SCHEDULING.SCHEDULING. TIME COST TRADE OFFS.TIME COST TRADE OFFS. RESOURCE ALLOCATION.RESOURCE ALLOCATION. PROJECT CONTROL.PROJECT CONTROL.
1
2 9
4 8
3 7 10 13
116
512
PERT FLOWCHARTPERT FLOWCHARTEVENTS(MAJOR MILESTONES OF PROGRESS) IN THE MAJOR ASSEMBLY OF ANEVENTS(MAJOR MILESTONES OF PROGRESS) IN THE MAJOR ASSEMBLY OF AN AI RPLANEAI RPLANE
(1)ORDER PROGRAM GO AHEAD (2)I NITIATE ENGI NE PROCUREMENT(3)COMPL(1)ORDER PROGRAM GO AHEAD (2)I NITIATE ENGI NE PROCUREMENT(3)COMPLETE PLANS AND ETE PLANS AND SPECI FI CATIONS (4)COMPLETE FUSELAGE DRAWI NGS (5)SUBMIT GFAE* REQUSPECI FI CATIONS (4)COMPLETE FUSELAGE DRAWI NGS (5)SUBMIT GFAE* REQUIREMENTS (6)AWARD TAIL IREMENTS (6)AWARD TAIL ASSEMBLY SUBCONTRACT (7)AWARD WINGS SUBCONTRACT (8)COMPLETE MANUASSEMBLY SUBCONTRACT (7)AWARD WINGS SUBCONTRACT (8)COMPLETE MANUFACTURE OF FUSELAGE FACTURE OF FUSELAGE
(9)COMPLETE ASSEMBLY OF FUSELAGE ENGI NE (10)RECEIVE WINGS FROM S(9)COMPLETE ASSEMBLY OF FUSELAGE ENGI NE (10)RECEIVE WINGS FROM SUBCONTRACTORS (11)RECEI VE UBCONTRACTORS (11)RECEI VE TAIL ASSEMBLY FROM SUBCONTRACTOR (12)RECEI VE GFAE (13)COMPLETE ATAIL ASSEMBLY FROM SUBCONTRACTOR (12)RECEI VE GFAE (13)COMPLETE AIRCRAFTIRCRAFT
* GFAE:GOVERNMENT FURNISHED AI RPLANE EQUIPMENT* GFAE:GOVERNMENT FURNISHED AI RPLANE EQUIPMENT
17.3
102.1
52.0
40.6 18.6
8.6
10.017.3
56.0
12.3 10.3 40.08.0
8.6
12.0
ADVANTAGESADVANTAGES
FORCES MANAGER TO PLAN.FORCES MANAGER TO PLAN.
FORCES PLANNING ALL THE WAY DOWN THE LINE.FORCES PLANNING ALL THE WAY DOWN THE LINE.
CONCENTRATES ATTENTION ON CRITICAL ELEMENT THAT CONCENTRATES ATTENTION ON CRITICAL ELEMENT THAT MAY NEED CORRECTION.MAY NEED CORRECTION.
MAKES POSSIBLE A KIND OF FORWARD LOOKING CONTROL.MAKES POSSIBLE A KIND OF FORWARD LOOKING CONTROL.
ENABLES MANAGERS TO AIM REPORTS AND PRESSURE FOR ENABLES MANAGERS TO AIM REPORTS AND PRESSURE FOR ACTION AT THE RIGHT SPOT AND LEVEL IN THE ACTION AT THE RIGHT SPOT AND LEVEL IN THE ORGANISATION STRUCTURE AT THE RIGHT TIME.ORGANISATION STRUCTURE AT THE RIGHT TIME.
LIMITATIONSLIMITATIONS
TECHNIQUE IS NOT USEFUL WHEN THE PROGRAM IS TECHNIQUE IS NOT USEFUL WHEN THE PROGRAM IS NEBULOUS AND NO REASONABLE ESTIMATES OF NEBULOUS AND NO REASONABLE ESTIMATES OF SCHEDULE CAN BE MADE.SCHEDULE CAN BE MADE.
PERT HAS ITS EMPHASIS ONLY ON TIME AND NOT COST.PERT HAS ITS EMPHASIS ONLY ON TIME AND NOT COST.
NOT PRACTICABLE FOR ROUTINE PLANNING OF RECURRING NOT PRACTICABLE FOR ROUTINE PLANNING OF RECURRING ACTIVITIES. ACTIVITIES.
INFORMATION TECHNOLOGYINFORMATION TECHNOLOGY
THE DEVELOPMENTS IN INFORMATION TECHNOLOGY GREATLY THE DEVELOPMENTS IN INFORMATION TECHNOLOGY GREATLY FACILITATES ORGANISATIONAL CONTROL AT A RELATIVELY FACILITATES ORGANISATIONAL CONTROL AT A RELATIVELY LOW COST.LOW COST.
INFORMATION TECHNOLOGY HAS PROMOTED THE INFORMATION TECHNOLOGY HAS PROMOTED THE DEVELOPMENT OF MANAGEMENT INFORMATION SYSTEM.DEVELOPMENT OF MANAGEMENT INFORMATION SYSTEM.
MANAGEMENT INFORMATION SYSTEM-MANAGEMENT INFORMATION SYSTEM- A FORMAL SYSTEM OF GATHERING, PROCESSING AND A FORMAL SYSTEM OF GATHERING, PROCESSING AND
DISPERSING INFORMATION INTERNAL AND EXTERNAL TO DISPERSING INFORMATION INTERNAL AND EXTERNAL TO THE ENTERPRISE IN A TIMELY, EFFECTIVE, AND EFFICIENT THE ENTERPRISE IN A TIMELY, EFFECTIVE, AND EFFICIENT MANNER TO SUPPORT MANAGERS IN THEIR JOBS.MANNER TO SUPPORT MANAGERS IN THEIR JOBS.
HOW MIS IS USEDHOW MIS IS USED
• MANAGERS NEED INFORMATION TO MONITOR MANAGERS NEED INFORMATION TO MONITOR ORGANISATIONAL PERFORMANCE AND TO CONTROL ORGANISATIONAL PERFORMANCE AND TO CONTROL ORGANISATIONAL ACTIVITIESORGANISATIONAL ACTIVITIES
• 2. COMPUTERS ARE BEING USED TO COLLECT AND 2. COMPUTERS ARE BEING USED TO COLLECT AND STORE INFORMATION FOR CONTROL PURPOSES.STORE INFORMATION FOR CONTROL PURPOSES.
• USE TO MONITOR EACH EMPLOYEE’S COMPUTER USAGE USE TO MONITOR EACH EMPLOYEE’S COMPUTER USAGE TO MEASURE EMPLOYEE PERFORMANCE.TO MEASURE EMPLOYEE PERFORMANCE.
LIMITATIONS OF INFORMATION LIMITATIONS OF INFORMATION TECHNOLOGY CONTROLTECHNOLOGY CONTROL
1.1. PERFORMANCE LIMITATIONSPERFORMANCE LIMITATIONS
2.2. BEHAVIOURAL LIMITATIONSBEHAVIOURAL LIMITATIONS
3.3. HEALTH RISKSHEALTH RISKS
MANAGEMENT BY EXCEPTIONMANAGEMENT BY EXCEPTION
CONCEPT OR POLICY BY WHICH MANAGEMENT DEVOTES CONCEPT OR POLICY BY WHICH MANAGEMENT DEVOTES ITS TIME TO INVESTIGATING ONLY THOSE SITUATIONS IN ITS TIME TO INVESTIGATING ONLY THOSE SITUATIONS IN WHICH ACTUAL RESULTS DIFFER SIGNIFICANTLY FROM WHICH ACTUAL RESULTS DIFFER SIGNIFICANTLY FROM PLANNED RESULTS.PLANNED RESULTS.
ATTENTION IS GIVEN ONLY TO THOSE MATERIAL ATTENTION IS GIVEN ONLY TO THOSE MATERIAL DEVIATIONS REQUIRING INVESTIGATION.DEVIATIONS REQUIRING INVESTIGATION.
THE TOOLS THAT FACILITATES THIS CONCEPT INCLUDE THE TOOLS THAT FACILITATES THIS CONCEPT INCLUDE DECISION SUPPORT SYSTEM, PERFORMANCE REPORT ETC.DECISION SUPPORT SYSTEM, PERFORMANCE REPORT ETC.
VALUE CHAIN MANAGEMENTVALUE CHAIN MANAGEMENT
VALUE CHAIN MANAGEMENT- VALUE CHAIN MANAGEMENT- PROPOSED BY MICHAEL PROPOSED BY MICHAEL PORTER OF H.B.S AS A COMPANY TOOL FOR IDENTIFYING PORTER OF H.B.S AS A COMPANY TOOL FOR IDENTIFYING WAYS TO CREATE MORE CUSTOMER VALUE. IT IS A WAYS TO CREATE MORE CUSTOMER VALUE. IT IS A PROCESS OF MANAGING SEQUENCE OF ACTIVITIES AND PROCESS OF MANAGING SEQUENCE OF ACTIVITIES AND INFORMATION ALONG THE ENTIRE PRODUCT CHAIN. IT INFORMATION ALONG THE ENTIRE PRODUCT CHAIN. IT INVOLVES ANALYZING EVERY STEP IN PROCESS, RANGING INVOLVES ANALYZING EVERY STEP IN PROCESS, RANGING FROM THE HANDLING OF RAW MATERIALS TO SERVICING FROM THE HANDLING OF RAW MATERIALS TO SERVICING END USERS, PROVIDING THEM WITH THE GREATEST VALUE END USERS, PROVIDING THEM WITH THE GREATEST VALUE AT LOWEST COST.AT LOWEST COST.
INVENTORY MANAGEMENTINVENTORY MANAGEMENT
INVENTORY CONTROL IS CONCERNED WITH ADEQUATE INVENTORY CONTROL IS CONCERNED WITH ADEQUATE CONTROL OVER THE COST, ACQUISITION, SAFETY AND CONTROL OVER THE COST, ACQUISITION, SAFETY AND HANDLING OF MATERIALS.HANDLING OF MATERIALS.
THE MAIN TECHNIQUES OF INVENTORY MANAGEMENT ARE AS THE MAIN TECHNIQUES OF INVENTORY MANAGEMENT ARE AS FOLLOWS:-FOLLOWS:-
1.1. ECONOMIC ORDER QUANTITY (EOQ)ECONOMIC ORDER QUANTITY (EOQ)
2.2. JUST IN TIMEJUST IN TIME
3.3. ABC ANALYSIS ABC ANALYSIS
4.4. VED ANALYSISVED ANALYSIS
ECONOMIC ORDER QUANTITY-ECONOMIC ORDER QUANTITY- IT MEANS THAT QUANTITY IT MEANS THAT QUANTITY WHICH SHOULD BE PURCHASED AT A TIME, BEING MOST WHICH SHOULD BE PURCHASED AT A TIME, BEING MOST ECONOMICAL.ECONOMICAL.
CONCLUSIONCONCLUSION
PLANNING IS SUICIDAL WITHOUT CONTROL AND PLANNING IS SUICIDAL WITHOUT CONTROL AND VICEVERSA. ORGANISATIONS USE VARIOUS TOOLS FOR VICEVERSA. ORGANISATIONS USE VARIOUS TOOLS FOR CONTROLLING. HOWEVER APPLICATION OF THESE CONTROLLING. HOWEVER APPLICATION OF THESE CONTROL TECHNIQUES DEPEND ON SITUATION AND CONTROL TECHNIQUES DEPEND ON SITUATION AND REQUIREMENTS OF THE ORGANISATION.REQUIREMENTS OF THE ORGANISATION.
REFERENCESREFERENCES
MANAGEMENT- HEINZ WEIHRICH, MARK V. CANNICE,MANAGEMENT- HEINZ WEIHRICH, MARK V. CANNICE, HAROLD KOONTZ. HAROLD KOONTZ.
MANAGEMENT- STEPHEN P. ROBBINS, MARY COULTERMANAGEMENT- STEPHEN P. ROBBINS, MARY COULTER MANAGEMENT- STONER, FREEMAN, AND GILBERT.MANAGEMENT- STONER, FREEMAN, AND GILBERT. PRINCIPLES AND FUNCTIONS OF MANAGEMENT- J.K.JAIN.PRINCIPLES AND FUNCTIONS OF MANAGEMENT- J.K.JAIN. WWW.WIKIPEDIA.ORG.. WWW.ASK.COM.. WWW.GOOGLE.COM. .
THANK YOUTHANK YOU