mcs presentation final07

8/7/2019 mcs presentation final07

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Prepared by:-

Amit Narkar 41

Sachin Pandule 42

Krunal Patel 43Paresh patil 44

Pratima Pawar 45

Dinesh Phadtare 46

Shailesh Ranade 47



Service Organizationsy Service organizations are those which provide services to the

members and the society.

y It includes hotel, hospital, airlines, transport, etc.

y It also includes professional organizations.

y New org. like telecommunications, entertainment, software

are also included in service organizations.



Characteristicsy Labour intensive

y No buffer inventory

y Multi- unit organizations

y Quality control



Factors impacting Service Orgn

y Human Resources

y Quality of service

y Control of management

y Proper funding

y Allocation of resources



Health care organizationsy Provide special features.

y It include, nursing homes,hospitals,medical clinics,medical laboratories & health maintenance organization.

y Profit oriented organization.

y Quality of services.

y Flexible in nature.



Government organizations

y O wned & operated by the Government.

y Established for Social objective.

y Some organization are electricity, airlines, water, post andtelegraphs and railways.

y Attitude of the managers of these organization towards the

customer is not good.

y Providing Poor services.

y Strategic planning to be highly important.



Professional service organizations

y It provide quality services to their customers by appointing

experts.

y These organizations include R & D, law firms, accounting &

consulting firms, advertising firms, etc.



Special characteristicsy Labour intensive.

y Professionals tend to give inadequate weight

to financial implications of their decisions.

y output cannot be measured in physical form.

y Revenues are related to quality of servicesrendered.

y Non repetitive work by professionals.



y Difficult to plan the time required for a task to set reasonable

standards for task performance.

y Some professionals are reluctant to keep a track of time spend

by them and it leads to complications.

y Certain firm are very small and operates on a single location and

hence there is less need for sophisticated MCS with profit

centers.

y Lack of separation between marketing and production activities.



Financial Service Organizations

y It include banks, insurance companies, mutual funds

merchant bankers, etc.

y These firms accounted for more than 5% of GDP in USA.

y New forms of financial instruments are designed which

sometime may turn in to loss of millions.



Special characteristics

y Monetary Assets

yTime period

y Risk and Reward

y technology



Non Profit Organizations[NPO]y An NPO is an organization that cannot distribute

assets or income for the benefit of its members.

y It compensates their employees for service

rendered.

y It is established for a special purpose.

y Modest amount of profit need to be earned in orderto finance their Working Capital.

y For e.g. Schools, Colleges, Universities, Charitable

trusts, etc.



Special characteristics of an NPOy Contributed capital

yAbsence of profit

y Fund accounting

y Financial accounting

y Governance



MCS in Non Profit Organizations

y It gives inadequate attention to their pricing policies.

y Following points can be taken into accounty Product pricing

y Strategic planning

y Budgeting

y Performance evaluation



Management control system in professional

organizations

y Strategic planning

y Budgeting

y Pricing

y Operation control

y Performance measurement



Management control system in service

organizationsy Strategic planning:

y It is the process of deciding on the programmes. In thisprocess management arrives at the goal of the organization.steps are

a) Reviewing and updating the strategic plan from the last year

b) Deciding on assumption and guidelinesc) First review of the new strategic plan

d) Analysis

e) Second review of the new strategic plan.

f) Final review and approval.



y Budget preparation:

it is effective short term planning.budgetpreparation process

To issue guidelines

Coordinate and publish every year

Information properly communicate with interrelated units.

Provide assistance to the manager

To administer the process of making budget

Analyze proposed budget and make recommendation

To coordinate the work of budget department.

To analyse reported performance against the budget



Analyzing financial performance report

y Focus on analyzing financial performance measures.

y Comparison of actual result with the budgeted andascertainment of variances.

y Difference known as variance

y It could be adverse or favorable.



Process of variance analysis

Identification of key causal factor affecting revenue.

Decomposition or break down of the overall revenue

variances

To focus attention of the impact of profit

Computation of specific, separable portion of eachcasual factor

Sequential addition of complexity starting fromextremely basic commonsense level

To conclude the process



Performance measurment1)Critical success factor

3) key performamceindicators

y 4) strategic factors

5) Key success factors

2) Key variables

mcs presentation final07

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