MT6316 LESSON 5 Flashcards
What refers to the systematic process of regulating organizational activities to make them consistent with the expectations?
Organizational control
Effectively controlling an organization requires?
information about performance standards and actual performance
actions taken to correct any deviations from the standards.
Controlling involves ____,____, and _____ performance to accomplish an objective as it was planned
measuring, restraining and correcting
Controlling also involves _____ of certain elements against _______ and the _______ of various personnel in the organization
measurement of certain elements such as time, quality, quantity and cost against standards or models
evaluation of the work or performance of various personnel in the organization
A good control system should?
- be flexible so managers can respond as needed.
- provide accurate information about the
organization. - provide information in a timely manner, and
- encourage each employee to exercise self- control.
3 stages of control?
Input
Conversion
Output
What stage of control: Feedforward
Input
What stage of control: Anticipate problems before they occur
Input
What stage of control: Concurrent
Conversion
What stage of control: Manage problems as they occur
Conversion
What stage of control: Feedback control
Output
What stage of control: Manage problems after they have arisen
Output
Components of the feedback control model?
Establish standards of performance
Measure actual performance
Compare performance to standards
Take corrective action if inadequate and do nothing/ provide reinforcement to establish strategic goals if adequate
Involves using feedback to determine whether performance meets established standards.
feedback control model
Performance standard must be expressed in quantitative or qualitative terms?
quantitative
Address how well the work is performed and/or how accurate or how effective the final product is.
Quality
Addresses how quickly, when or by what date the work is produced.
Timeliness
Involves monitoring and influencing employee behavior through extensive use of rules, policies, hierarchy of authority,
written documentation, reward systems, and other formal mechanisms.
Hierarchical control
Foster compliance with organizational goals through the use of organizational culture, group norms, and a focus on goals rather than rules and procedures.
Decentralized control
Hierarchical or Decentralized: Basic assumption of people being incapable of self discipline and cannot be trusted, they need to be monitored and controlled closely
Hierarchical
Hierarchical or Decentralized: Uses detailed rules and procedures
Hierarchical
Hierarchical or Decentralized: Top-down authority, position power, quality control inspectors
Hierarchical
Hierarchical emphasizes on what kind of rewards?
Extrinsic
Hierarchical or Decentralized: Features rigid organization culture, distrust of cultural normals and means of control
Hierarchical
Hierarchical or Decentralized: Employees following instructions and do just what they are told
Hierarchical
Hierarchical or Decentralized: Employees absenteeism and turnover is high
Hierarchical
Hierarchical or Decentralized: Basic assumption is that people work best when they are fully committed
Decentralized
Hierarchical or Decentralized: Limited use of rules, relies on values, group and self control, selection and socialization
Decentralized
Hierarchical or Decentralized: Result-based job descriptions, emphasizes on goals to be achieved
Decentralized
Decentralized control emphasizes on what kind of rewards?
Extrinsic and Instrinsic
Hierarchical or Decentralized: Adaptive culture recognized as a means for uniting individuals, team, and organizational foals for overall control
Decentralized
Hierarchical or Decentralized: Employees take initiative and seek responsibility
Decentralized
Hierarchical or Decentralized: Employees actively engage and commit to their work
Decentralized
Hierarchical or Decentralized: Turnover is low
Decentralized
Hierarchical or Decentralized: Total Quality Management
Decentralized
The TQM philosophy focuses on?
teamwork, increasing customer satisfaction, and lowering costs.
Organizations implement TQM by?
encouraging managers and employees to collaborate to identify areas for improvement
______ becomes part of the day-to-day business of every employee rather than being assigned to specialized departments.
Quality control
Include groups of six to 12 volunteer employees who meet regularly to discuss and solve problems affecting the quality of their work.
Quality circles
Continuous process of measuring products, services, and practices against major competitors or industry leaders
Benchmarking
Quality control approach that emphasizes a relentless pursuit of higher quality and lower costs.
Six Sigma
Involves assigning dedicated personnel within a particular functional area of the business to identify opportunities for improvement throughout the work process.
Quality partnering
Implementation of a large number of small, incremental improvements in all areas of the organization on an ongoing basis.
Continuous improvement, or kaizen
What are the different TQM Techniques?
Quality circles
Benchmarking
Six Sigma
Quality partnering
Continuous improvement
Steps of THE SIX SIGMA CONCEPT?
- Define
- Measure
- Analyze
- Improve
- Control
What step of six sigma: Quality variables valued by the customer are measured, and goals are set for improvement.
Measure
What step of six sigma: The root causes of the current defect levels are identified, and alternatives are considered for process changes.
Analyze
What step of six sigma: The process is changed and checked for improvement.
Improve
What step of six sigma: This step uses a control chart or measurements to ensure that the process improvement is not lost over time.
Control
What step of six sigma: The process is selected for improvement, and the project charter is specified.
Define
Once a process is selected for improvement, what is formed and why?
a cross-functional team
since most processes cut across functional lines.
Who is chosen to lead the improvement team?
A full-time trained process improvement specialist, usually called a “black-belt”
Lean or Six Sigma: Understand process flow and eliminate waste
Lean
Lean or Six Sigma: Primarily high volume processes
Lean
Lean or Six Sigma: Basic principles and “cookbook” style implementation based on accepted practices
Lean
Lean or Six Sigma: Driven by local supervisor
Lean
Lean or Six Sigma: Usually about 1 week - 2 months
Lean
Lean or Six Sigma: Mostly ad-hoc, minimal formal training
Lean
Lean or Six Sigma: Learning by doing
Lean
Lean or Six Sigma: Improve process capability and eliminate/minimize variation
Six sigma
Lean or Six Sigma: Any business processes
Six sigma
Lean or Six Sigma: Well understood problem-solving approach relying on statistics
Six sigma
Lean or Six Sigma: BPM and gap analysis
Six sigma
Lean or Six Sigma: Usually about 2-6 months
Six sigma
Lean or Six Sigma: Dedicated resources, broad-based training
Six sigma
Lean or Six Sigma: Learning by classroom and doing
Six sigma
7 Quality Control Tools for Continuous Improvement?
Flow chart
Fishbone diagram
Check sheet
Histogram
Pareto Chart
Scatter diagram
Control chart
What QC tool: Describe the flow of work and the relationships among steps in the process, and reveal any unnecessary steps and waste that can be eliminated
Flowcharts
What QC tool: Identify possible problems that need to be investigated via further data collection and analysis
Flowcharts
What QC tool: Shows the relationship of factors and variables that might have led to the occurrence of issues
Cause-and-effect (CE) diagram
What QC tool: Identifies the problem itself, the effect, which is placed on the right side of the diagram
Cause-and-effect (CE) diagram
What QC tool: Fleshes out the various potential causes of the problem that are shown along the spine of the diagram and categorized
Cause-and-effect (CE) diagram
What QC tool: Shows an appearance of a diagram that suggests a fishbone analogy
Cause-and-effect (CE) diagram
What QC tool: Data collection done, which are put in a tabular list representing collected data about the process
Check sheets
What QC tool: Contain critical process measurements taken at periodic intervals during the day and tabulated by the time taken
Check sheets
What QC tool: Used to tabulate the frequency of certain defects or other quality-related events
Check sheets
What QC Tool: Show the relationship between two variables
Scatter diagrams
In a scatter diagram, if a particular cause and effect are suspected to be related, the relationship
will be apparent as?
a linear or curved pattern on the scatter diagram
Once improvements have been made, the new process should be _________ by using a _________.
stabilized to hold the gains
new control chart.
T or F: The original control chart from before process improvement, will still be appropriate following the improvements.
F, no longer appropriate
What QC tool: Frequency count using data from the check sheet to show the form and shape of the distribution of the data
Histogram
What do histograms indicate?
indicates that some data points are outliers, odd shapes to the distribution that indicate skewness or more than one mode or peak in the distribution
What QC tool: Constructed to show the most important problems
Pareto diagram
Who created Pareto diagram?
Vilfredo Pareto
What did Vilfredo Pareto observe?
few items in any population constitute a significant percentage of the entire group
What is in Pareto’s law?
a few of the failure modes account for most of the observed
defects.
What is included in the cost of quality?
prevention, appraisal, internal failure, and external failure categories.
T or F: Prevention, appraisal, internal failure, and external failure categories are all costs of not doing things right the first time.
F, everything except prevention
T or F: When a cost is assigned to poor quality, it can be managed and controlled like any other cost.
T
One of the most commonly used forms of managerial control
Budgetary control
Budgetary control is a process of?
setting targets for an organization’s expenditures, monitoring results and comparing them to the budget, and making changes
Reports that list planned and actual expenditures for cash, assets, raw materials, salaries, and other resources
budgets
T or F: There is only one budget for the whole organization
F, it is created for every division or department within an organization,
Budget reports usually list the variance between?
the budgeted and actual amounts for each item.
Defined as any organizational department or unit under
the supervision of a single person who is responsible for its activity.
A responsibility center
Outlines the anticipated and actual expenses for a responsibility center.
expense budget
Lists forecasted and actual revenues of the organization
revenue budget
Estimates receipts and expenditures of money on a daily or weekly basis to ensure that an organization has sufficient cash to meet its obligations
cash budget
A budget that plans and reports investments in major assets to be depreciated over several years
capital budget
Has been expanded to refer to the framework of systems, rules, and practices by which an organization ensures accountability, fairness, and transparency in its relationships with all stakeholders
Corporate governance
Comprehensive management control system that balances traditional financial measures with measures of customer service, internal business processes, and the organization’s capacity for learning and growth.
A balanced scorecard
What THE FOUR PERSPECTIVES IN A BALANCED SCORE CARD?
Financial performance
Customer service
Internal business processes
Potential for learning and growth
Reflects a concern that the organization’s activities contribute to improving short- and long-term financial performance
Financial performance
Includes traditional measures such as net income and return on investment.
Financial performance
How customers view the organization and customer retention and satisfaction
Customer service
Data may be collected in many forms, including testimonials from customers describing superlative service or from customer surveys.
Customer service
What does Internal business processes focus on?
production and operating statistics
For clinical laboratories, business process indicators may include?
fast turn-around-time in releasing results, use of fully-automated systems to accommodate high-volume samples, and adherence to safety guidelines.
Focusing on how well resources and human capital are being managed for the company’s future
Potential for learning and growth
In Potential for learning and growth, metrics may include?
employee retention and the introduction of new products.
Who records, analyzes, and discusses these various metrics to determine how well the organization is achieving its strategic goals?
Managers
The balanced scorecard is an effective tool for?
managing and improving performance only if it is clearly linked to a well-defined organizational strategy and goals.
