Controlling activities and operations (chapter 6) Flashcards
What do we measure
Keeping cost within budget, quantity and quality of units, employee absenteeism, productivity levels etc…
How do we measure?
Personal observation, statistical report, oral or written report etc…
Compare
-what is…
compare actual performance against standard
-The range between the actual performance and the target/standard is the range of variation
2 types of corrective action
Immediate corrective action
-Corrects problems at once to get performance back on track
Basic corrective action
-Determines how and why performance deviated (root cause) before correcting the source of deviation
Revise standard
-Actual performance has surpassed the target or way below the standard or target
-Could mean that target set was not realistic
3 types of control
Feedforward control
- Managers put in place before a problem occurs (just in case)
Concurrent control
- Manager use while the problem is occurring
- to minimise the problem
- to ensure that the problem is kept under control
Feedback control
- Managers implement after the problem has occurred