Chapter 5 - Control

Question 1

Controlling

Answer 1

Process of measuring performance & taking action to ensure desired results

• purpose = Make sure plans are achieved & actual performance is greater than objectives
• Based on information

Question 2

Alter-Action Review

Answer 2

Structured review of lessons learned & results accomplished thru a completed project, task, etc

• Started by US army
• Encourages everyone to take responsibility for their actions, performance efforts and accomplishments
• Potential benefits of learning are realized only when learning is translated into corrective actions

Question 3

Output standards

Answer 3

Measures performance results in terms of quantity, quality, cost or time.
- Measures actual outcomes or WORK RESULTS

Question 4

Input standards

Answer 4

Measures work EFFORTS that go into a performance task; measures WORK EFFORTS
- Ex. work attendance, conformance w/ rules

Question 5

Control equation

Answer 5

Need for action = Desired performance - Actual performance

Question 6

Actual < Desired

Answer 6

Performance threat or deficiency

Question 7

Actual > Desired

Answer 7

Performance opportunity

Question 8

Engineering comparisons

Answer 8

Used to identify desired performance

• Ex.UPS measuring routes to establish expected delivery day
• Historical and relative comparisons also used

Question 9

Management by exception

Answer 9

Focuses attention on differences b/w actual & desired performance

• Giving attention to high priority situations that show greatest need for action
• Adds discipline
• • Highest priority, needs for action focused**

Question 10

Internal control

Answer 10

Self control that occurs as people take personal responsibility for their work. ( Self discipline)

Question 11

External control

Answer 11

Uses bureaucratic, clan and market control systems so things happen as planned

Question 12

Bureaucratic control

Answer 12

Influences behavior through authority, policies, procedures job descriptions, budgets, day to day supervision.

• Used to make sure people behave in ways consistent.
• Emphasizes hierarchy & authority

Question 13

Clan control

Answer 13

Influences behavior through social norms & peer expectations. Power of collective identity

Question 14

Market control

Answer 14

Influence of competition on the behavior of organizations and members. “Keeping up w/ competition”

Question 15

Managing by objectives

Answer 15

Process thru which team leaders work w/ team members to “jointly” set performance objectives & “jointly” review results.

• Planing & controlling w/in teams.
• 2 Types of objectives

Question 16

2 types of objectives

Answer 16

Improvement objectives & Personal development objectives

Question 17

Improvement objectives

Answer 17

Increase performance specifically

Question 18

Personal development objectives

Answer 18

Focus on expanding job knowledge or skills

Question 19

Total Quality Management

Answer 19

Describes efforts to make quality an everyday performance objective & strive to do things right the 1st time

• Core element = Continuous improvement
• You can never be satisfied, something always can and will be done better

Question 20

Measurement is the cornerstone of control

Answer 20

True

Question 21

Control charts

Answer 21

Graphical ways of displaying trends so that exceptions to quality standards can be identified
- Often used in manufacturing and actg

Question 22

Six Sigma

Answer 22

A quality standard of 3.4 defects or less per million products or service deliveries = perfection rate of 99.99%
- Common quality standard

Question 23

Projects

Answer 23

One time activities w/ many component tasks that must be completed in proper order & budget

Question 24

Gantt chart

Answer 24

Graphically displays the scheduling of tasks required to complete a task

• Shows what needs to be done, when, & allows for progress
• helps w/ activity sequencing

Question 25

Biggest problem w/ projects is

Answer 25

Delays in early activities = delays in later ones

Question 26

CPM/PERT

Answer 26

Combination of the critical path method and the program evaluation & review technique
- Uses network charts that breaks projects into sub activities w/ beginning and end points (called “nodes”)

Question 27

Critical path

Answer 27

Pathwat from project start to conclusion that involves activities w/ the longest completion time
- Represents quickest time entire project can be finished

Question 28

Inventory control

Answer 28

Ensures inventory is only big enough to meet immediate needs

- 2 techniques to help inventory control are economic order quantity and just in time scheduling

Question 29

Economic order quantity

Answer 29

Method that places new orders when inventory levels fall to predetermined points

Question 30

Just in time inventory

Answer 30

(JIT) Routes materials to work stations just in time for use

• Made by Jap’s
• Lowers cost & increase work flow
• Can be a negative when product delays

Question 31

Break even point

Answer 31

Fixed costs / (Price - Variable Costs)

Question 32

Break even analysis

Answer 32

What if calculations under different revenues & cost conditions

Question 33

Who advocates a balanced scorecard

Answer 33

Robert Kaplan and David Norton

Question 34

Balanced scorecard

Answer 34

Measures performance on financial, customer services, internal process and innovation & learning goals.

• To do well and win, you have to keep score
• 1st step = clarify mission/vision & then ask Q’s
• Organizations perform better when they keep score