UNIT 5: CONTROLLING Flashcards
sets the organization on course; checks if the achievement of goals is successful, and if there is a need to re-route the road map.
Controlling
Refers to the systematic process of regulating
organizational activities to make them consistent
with the expectations established in plans, targets,
and standards of performance
Organization Control
T/F: Effectively controlling an organization requires information about performance standards and actual performance, as well as actions taken to correct any deviations from the standards
T
One of the core elements to measure
performance and correct deviations is root cause analysis via
OSIR Approach (Objectives Status Issues and Resolutions)
Involves measuring, restraining and correcting
performance to accomplish an objective as it was planned
Controlling
It involves the measurement of certain elements
such as time, quality, quantity and cost against
standards or models which have been established, and the evaluation of the work or performance of various personnel in the organization
Controlling
Should be flexible and encourage employees to exercise self-control
Control System
Types of Control
ICO
Input Stage
Conversion Stage
Output Stage
Stage: Feedforward control (Anticipate problems before they occur)
Input Stage
Stage: Concurrent stage or real-time control (Manage problems as they occur)
Conversion Stage
Stage: Feedback control (Manage problems
after they have arisen)
Output Stage
Four Steps of Feedback Control
- Establish standards of performance
- Measure actual performance
- Compare performance to stand
- Take corrective action
involves using feedback to determine whether performance meets established standards
Feedback Control
Performance Standards must be expressed in ________ (quanti/quali) terms whenever possible
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
A decentralized control approach that focuses on teamwork, increasing customer satisfaction, and lowering costs
Total Quality Management
T/F: Each quality improvement is a step toward
perfection and meeting a goal of zero defects.
T
becomes part of the day-to-day
business of every employee rather than being
assigned to specialized departments
Quality control
offer one technique for implementing
TQM and include groups of six to 12 volunteer
employees who meet regularly to discuss and solve problems affecting the quality of their work.
Quality circles
TQM technique; continuous process of measuring products, services, and practices against major competitors or industry leaders
Benchmarking
is a 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 partnerning
implementation of a large number of small, incremental improvements in all areas of the
organization on an ongoing basis
Continuous improvement
can be applied to processes in manufacturing, service, or administrative areas
Six Sigma approach
Six Sigma: Meaning of DMAIC
Define
Measure
Analyze
Improve
Control
In the DMAIC roadmap, once a process is selected for improvement, a
___________ team is formed since most
processes cut across functional lines
cross-functional
A full-time trained process improvement specialist chosen to lead the improvement team
black-belt six sigma trainee
Basic principles and
“cookbook style”
implementation
based on accepted practices
LEAN
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
Identify possible problems that need to be
investigated via further data collection and analysis
Flowcharts
Shows the relationship of factors and variables that might have led to the occurrence of issues
Cause and Effect Diagram (Fishbone)
Identifies the problem itself, the effect, which is
placed on the right side of the diagram
Cause and Effect Diagram (Fishbone)
Fleshes out the various potential causes of the
problem that are shown along the spine of the
diagram and categorized, for example, as materials, workers, inspection, and tools
Cause and Effect Diagram (Fishbone)
data put in a tabular
list representing collected data about the process
Check Sheets
Contain critical process measurements taken at
periodic intervals during the day and tabulated by the time taken
Check Sheets
Used to tabulate the frequency of certain defects or other quality-related events
Check Sheets
Show the relationship between two variables
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
Scatter Diagram
Example of a control chart
Levey-Jennings
T/F: The original control chart from before process improvement, will no longer be appropriate following the improvements
T
New charts with new center lines and upper and
lower limits can be created, based on data from the
improved process
Control Chart
Is a frequency count using data from the check
sheet to show the form and shape of the
distribution of the data
Histogram
Indicates that some data points are outliers, or
there may be odd shapes to the distribution that
indicate skewness or possibly more than one mode
or peak in the distribution.
Pareto Diagram
includes prevention, appraisal, internal failure, and external failure categories
*T/F: All these, except prevention, are costs of not doing things right the first time
Cost of Quality
T
T/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
process of setting targets for an organization’s
expenditures, monitoring results and comparing them to the budget, and making changes as needed
Budgetary Control
reports that list
planned and actual expenditures for cash, assets,
raw materials, salaries, and other resources
Budgets
Budget reports usually list the ________ between the budgeted and actual amounts for each item
variance
is defined as any organizational department or unit under the supervision of a single person who is responsible for its activity
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 obligation
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, including investors, employees,
customers, and the general public
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
Balanced Scorecard
effective tool for managing and improving performance, but only if it is clearly linked to a well-defined organizational strategy and goals
Balanced Score Card
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 performance regarding money
Financial Performance
includes traditional measures such as net income and return on investment
Financial Performance
measure information
such as how customers view the organization and customer retention and satisfaction
Customer Service
These data may
be collected in many forms, including testimonials
from customers describing superlative service or from customer surveys
Customer service
Business process indicators focus on production
and operating statistics
Internal Business Processes
may include fast turn-around-time in releasing results, the use of fully-automated systems to accommodate high-volume samples, and adherence to safety guidelines
Internal Business Processes
focuses on how well resources and human
capital are being managed for the company’s future
Potential for Learning and Growth
Metrics may include things such as employee retention and the introduction of new products
Potential for Learning and Growth
