Chapter 16 Flashcards
4 Steps of Typical Control System (Cycle)
1: Set performance standards.
2: Measure Performance
3: Compare performance with standards.
4: Reward successes, correct problems.
Standard
expected performance for a given goal: a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed
Performance standards can be set with respect to:
1: Quantity
2: Quality
3: Time Used
4: Cost
Principle of Exception
a managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standard
After-action review
a frank and open-minded discussion of four basic questions aimed at continuous improvement
4 Basic question for AAR
1: What were our intended results?
2: What were our actual results?
3: What caused our results?
4: What will we sustain? Improve?
Feedforward Control
the control process used before operations begin, including policies, procedures, and rules designed to ensure that planned activities are carried out properly
(“preliminary control”)
Concurrent Control
the control process used while plans are being carried out, including directing, monitoring, and fine-tuning activities as they are performed
Feedback Control
control that focuses on the use of information about previous results to correct deviations from the acceptable standard
DPMO
defects per million opportunities
Six Sigma
aims for defect free performance (DPMO is 3.4)
Management Audit
an evaluation of the effectiveness and efficiency of various systems within an organization
External Audit
an evaluation conducted by one organization, such as a CPA firm, on another
Internal Audit
a periodic assessment of a company’s own planning, organizing, leading, and controlling processes
Sustainability Audits
an evaluation of how effectively they are serving all stakeholders and protecting the environment
Triple Bottom Line
profit, planet, people (for Sustainability)