ME 213: Module 7 - Part 2 Flashcards
It is the process of ascertaining whether organizational objectives have been achieved; if not why not; and determining what activities should then be taken to achieve objectives better in the future.
CONTROLLING
This completes the cycle of management functions.
CONTROLLING
are set at the planning
stage are verified as to achievement or completion at any given point in the organizing and implementing stages
Objectives and goals
It will help the organization achieve its goal in the most efficient and effective manner possible.
controlling
These measures minimize the ill effects of such negative occurrences
Proper control measures
This minimizes, if not totally eliminates losses in inventory
effective inventory control system
4 Steps of the Control Process
- Establishing performance objectives and standards
- Measuring actual performance
- Comparing actual performance to objectives and standards
- Taking necessary action based on the results of the comparisons
5 Examples of Objectives and Standards
- Sales Targets
- Production targets
- Worker attendance
- Safety record
- Supplies used
which are expressed in quantity or monetary terms
Sales Targets
which are expressed in quantity or quality
Production targets
which are expressed in terms of rate of absences
Worker attendance
which is expressed in number of accidents for given periods
Safety record
which are expressed in quantity or monetary terms for given periods
Supplies used
In construction firms, these are useful standards.
project completion dates
In chemical manufacturing firms, these certain pollution measures form the basis for standard requirement.
certain pollution measures
This is needed so that when shortcomings occur adjustments could be made. The adjustments will depend on the actual findings.
measure actual performance
Once actual performance has been determined, this will be compared with what the organization seeks to achieve. Actual production output, for instance, will be compared with the ________________.
target output
What is the purpose of comparing actual performance with the desired result?
to provide management with the opportunity to take corrective action when necessary.
It is when management anticipates problems and prevents their occurrence.
feedforward control
This type of control provides the assurance that the required human and non-human resources are in place before operations begin
Feedforward Control
The manager of a chemical manufacturing firm makes sure that the best people are selected and hired to fill jobs. Materials required in the production process are carefully checked to detect defects. The foregoing control measures are designed to prevent wasting valuable resources. If these measures are not undertaken, the likelihood that problems will occur is always present.
Which type of control supports this example?
Feedforward Control
It is when operations is already on going and activities to detect variances are made.
Concurrent Control
It is always possible that deviations from standards will happen in the production process. When such deviations occur, adjustments are made to ensure compliance with requirements.
Concurrent Control
The manager of a construction firm constantly monitors the progress of the company’s projects. When construction is behind schedule, corrective measures like the hiring of additional manpower are made.
Which type of control supports this example?
Concurrent Control
It is when information is gathered about completed activity and in order that evaluation and steps for improvement are derived.
Feedback Control
These are aimed at improving future activities are features of feedback control.
Corrective actions
This validates objectives and standards. If accomplishments consist only of a percentage of standard requirements, the standard may be too high or inappropriate.
Feedback control
The supervisor who discovers that continuous overtime work for factory workers lowers the quality of output. The feedback information obtained leads to some adjustments in the overtime schedule.
Which type of control supports this example?
Feedback Control
Is an important management responsibility that deals with the “procurement and administration of funds with the view of achieving the objectives of business”.
finance function
Is one of the three basic management functions. The other two are production and marketing.
finance function
It is oftentimes unavoidable for firms to extend this to customers.
credit
The maintenance of adequate __________ is crucial to many firms. Raw materials, supplies, and parts are needed to be kept in storage so they will be available when needed
inventory
6 Sources of Funds (CLOSAC)
- Cash Sales
- Loans and Credits
- Ownership contributions
- Sales of assets
- Advance from customers
- Collection of Accounts Receivables
Cash is derived when the firm sells its products or services
Cash Sales
Some engineering firms extend credit to customers. When these are settled,
cash is made available.
Collection of Accounts Receivables
When other sources of financing are not enough, the firm will have to resort to borrowing
Loans and Credits
Cash is sometimes obtained from the sale of the company’s assets
Sales of assets
When cash is not enough, the firm may tap its owners to provide more money
Ownership contributions
Sometimes, customers are required to pay cash advances on orders made. This helps the firm in financing its production activities.
Advance from customers
They recommend that the
following factors must be considered in the best source of financing.
Schall and Haley
6 Factors in Determining the Best Source of Financing FRICT FECS
- Flexibility
- Risk
- Income
- Control
- Timing
- Floatation costCollateral values
- Exposure
- Collateral values Speed
- SpeedExposure
Some fund resources impose certain restrictions on the activities of the borrowers. An example of a restriction is the prohibition on the issuance of additional debt instruments by the borrower.
Flexibility
When applied to the determination of fund sources, this refers to the chance that the company will be affected adversely when a particular source of financing is chosen.
Risk
he various sources of funds, when availed of, will have their own individual effects in the net income of the engineering firm. When the firm borrows, it must generate enough income to cover the cost of borrowing and still be left with sufficient returns for the owners.
Income
When new owners are taken in because of the need for additional capital, the current group of owners may lose __________ of the firm. If the current owners do not want this to happen, they must consider other means of
financing.
Contro
The financial market has its ups and downs. This means that there are times when certain means of financing provide better benefits than at other times. The engineer manager must, therefore, choose the best time for borrowing or selling equity.
Timing
Are there assets available as collateral?
Collateral values
How much will it cost to issue bonds or stocks?
Floatation cost
is a certificate of indebtedness issued by
a corporation to a lender. It is a marketable security that the firm sells to raise funds
bond
It represents ownership of corporation where many investors are placing their money on them
stock
How fast can the funds required be raised?
Speed
To what extent will the firm be exposed to other parties?
Exposure
is a group of activities designed to facilitate and expedite the selling of goods and services.
Marketing
4 P’s of Marketing
- product (or service)
- price
- place
- the promotion
In the marketing sense, this term includes the tangible (or intangible) item and its capacity to satisfy a specific need. The services provided by the engineer manager will be evaluated by the client on the basis of whether or not his or her exact needs are met.
The Product
refers to the money or other considerations exchanged for the purchase or use of the product, idea or service.
Price
It is very important for companies to locate in places where they can be easily reached by their customers. When a company cannot be near its customers, it uses other means to eliminate or minimize the effects of the problem.
Place
Before the buyer makes the purchasing decision, he must be first informed, persuaded and influenced. This activity is referred to as ___________.
promotion
4 Promotional Tools
- Advertising
- Publicity
- Personal Selling
- Sales Promotion
A paid message that appears in the mass media for the purpose of informing and persuading people about particular products, services, beliefs or actions.
Advertising
The promotional tool that publishes news or information about a product, service or idea on behalf of a sponsor but is not paid for by the sponsor.
Publicity
A more aggressive means of promoting sales referred to as the oral presentation in a conversation with one or more prospective purchasers for the purpose of making a sale.
Personal Selling
Any paid attempt to communicate with the customers other than advertising, publicity and personal selling. This includes displays, contests, sweepstakes, coupons, trading stamps, prizes, samples, demonstrations, referral gifts, etc.
Sales Promotion
refers to “any process that accepts inputs and use resources to change those inputs in useful
ways.”
Operations
is an activity that needs to be managed by competent persons.
Operations
According to Aldag and Stearns, this is “the process of planning, organizing, and controlling operations to reach objectives efficiently and effectively.”
Operations Management
They defined operations management as “the process of planning, organizing, and controlling operations to reach objectives efficiently and effectively.”
Aldag and Stearns
is related to “the cost of doing something, or the resources utilization involved”
Efficiency
refers to goal accomplishment
Effectiveness
OWhen one is able to reach his objectives, say produce 10 000 units in 1 month, he is said to be __________.
effective
When a person performs a job at lesser cost than when another person performs the same job
efficient
2 TYPES OF TRANSFORMATION PROCESS
- Manufacturing processes
- Service processes
are those that refer to the making of products by hand or with machinery
Manufacturing processes
A job is one whose productions is “based on sales orders for a variety of small lots. “
Job shop
These are very useful components of the entire production effort, since the manufacture products in small lots that are needed by, that cannot be produced economically by many companies
Job shop
where lots of generally own design products are manufactured
Batch flow
An assembly line refers to production layout arrange in a sequence to accommodate processing of large volumes of standardized product or services.
Worker - paced line flow
This type of production process produces mostly standard products with machines playing significant role.
Machine-paced line flow
This is characterized by “the rapid rate at which items move through the system”. This processing method is very appropriate for producing highly standardized products like
calculators, typewriters, automobile, televisions, cellular phones, etc.
Continuous flow
are those that refer to the provision of service to persons by hand or with machinery.
Service processes
This offers a limited mix of services which results to some economies of scale in operation. This is also affords the company to compete in terms of price and speed of producing the service.
Service factory
It provides services to a large number of people simultaneously. A unique processing method is, therefore, necessary to satisfy this requirement. To be able to serve many people, mass service companies offer limited mix of services.
mass service company
These are companies that provide specialized services to other firms or individuals
Professional service
the process of creating a set of product specifications appropriate to the demands of the situation.
Product design
may be defined as “forecasting the future sales of a given product, translating this forecast into the demand it generates for various production facilities and arranging for the procurement of these facilities.”
Production planning
is the “phase of production control involved in developing timetables that specify how long each operation in the production process takes.”
Scheduling
refers to “the approach that seeks efficiency of
operation through integration of all material acquisition, movement, and storage activities in the firm”
Materials management
the process of establishing and maintaining appropriate levels of reserve stocks of goods.
Inventory contro
the process of determining the physical arrangement of the production system. In the
transformation process, this may be done either haphazardly or orderly.
Work flow layout
refers to the measurement of products or services against standards set by the company. Certain standard requirements are maintained by the management to facilitate production and to keep customers satisfied.
Quality control
