Unit 6

Controlling
Meaning
• Controlling is process of measuring actual
performance with standard and make comparison
between them, if any deviation is occurred try to
minimize it by taking corrective actions. Prevention is
better than cure is actual controlling.
Purposes
• Primary objectives: definition of controlling
• Subordinate objectives
location of deviation
study of causes
taking necessary action
Prevention
reduce cost
maintain discipline
Process of control
• Establishment of standard: organizational plans
and policies are taken as standard
• Measurement of actual performance: measuring
day to day activities and performance
• Comparison of actual performance with
standard: having both actual and standard
performance, comparison is done between them
• Analyze the causes of deviation: if there is no
deviation, no need control, if deviation occurred
analyze the causes of deviation
• Taking remedial action: to eliminate and reduce
deviation necessary remedial action is taken
Types of control
• Pre-control: control technique applied before
performing task and activities by employees. It is
preventive method. Best techniques of controlling
but not possible in all cases.
• Con-current control: performance of employees
and control technique are simultaneously
conducted. It is tracking technique. It helps to
minimize error and mistake during performance.
• Post control: after completing the task and
activities the control technique is applied. In this
case error and mistake can not be eliminated and
reduced but help for future planning betterment.
Essentials of effective control
• Suitability: control mechanism should be suited as per
organization, employees, time period, situation cost etc.
• Simplicity: easy to understand and apply control
mechanism
• Objectivity: certain objectives are meet after control
• Economical: less expensive and affordable
• Comprehensive: detail information and understandable
• Communicability: from top to bottom level of
management, it must be communicable
• Suggestive: suggestive for improvement and amendment in
near future
• Flexibility: adaptability with changing environment
• Responsibility based: control mechanism mainly based on
responsibility of employees
• Forward looking: control is done being far sighted and
looking ahead future
Tools/Techniques of control
• Personal control: under this technique, superior controls
their subordinates by direct personal visit, interaction,
complain personally. Personal involvement is major tool for
control.
• Bureaucratic control: control based on bureaucratic
management principles, under which performance and
control based on hierarchy.
• Output control: efficiency and inefficiency of employees is
control by output.
• Cultural control: all employees are bound by organization
culture and tradition, it makes employees socialized in
organization
• Incentives control: rewarding method of control. Financial
and non-financial incentives facilitate superior to control
subordinates.
• Internal control: by controlling internal factors of
organization like resources employees, production factors..
Quality: concept and importance
• It is perception of individual of better/excellence
performances of product and service. The meaning
and definition of quality is different for different
situation, time and individual. Different dimensions
of quality, under which quality is measured are:
• Performance
• Features
• Reliability
• Durability
• Aesthetic
• Serviceability
• Perceived quality etc.
Importance of Quality
• Meet competition: different quality dimensions of
organizational product and service facilitate to
compete with competitors, can easily meet
competition in market.
• Increase productivity: quality increase productivity of
organization as people prefer quality product rather
than price now days.
• Minimize competition cost: quality product do not
need to face unfair competition, extra expense is not
required to compete with competitors for quality
product.
• Maintain image: quality product has its own image in
market in front of competitive product. Unique
quality of product is goodwill of the organizational
product.
Total Quality Management (TQM)
• It is a management strategy that is designed to bring
awareness of quality of all organization process. It consists
of quality of return, quality of products and services and
quality of work life
Components of Total Quality Management
• Continuous improvement of skills: as change in technology
and environment, employees skill must be continuously
improved by training and skill development courses
• Use of team work: to maintain TQM, team work must be
used for synergistic effects
• Improving process, product, services: continuously
improving organization process, product, service and
overall aspects TQM can be maintained
• Focus on customer satisfaction: TQM must be in eyes of
customer, making customer satisfied, TQM is maintained
TQM Principles
• Continuous improvement: as environment is very
dynamic, to adapt continuous improvement is required for
TQM
• Focus on customer: TQM must be in eyes of customer not
own. Top priority to customer
• Change in culture: tradition and culture must be change
for TQM as per requirement
• Employees involvement: employee is key actor of TQM, so
in every activities, employees involvement is essential
• Prepared strategic plan: long term strategic plan is
required for TQM
• Focus on team work: synergistic effect only possible
through team work
• Efficiency development: capacity must be developed by
minimizing input and maximizing output
• Mutual relation with suppliers: supplier also has major
role in TQM, they are the sources
• Focus on system approach: system must be followed in
TQM
• Emphasis transformation: changes, transformation is
required for TQM
Tools/Methods of TQM
• Benchmarking: try to meet the basic standard of quality
given by top market leader of same business
• Outsourcing: hire external person and team for better
performance in necessary field
• Speed: high speed in work performance with technological
fit is required
• ISO 9000: producing international standard certified
product and service
• Statistical quality control (SQC): frequent statistical
analysis by using different statistical tools also help to
maintained TQM
Emerging Issues in Quality Management (QM)
• Redesign organization structure: redesigning
organization structure is very challenging due to
consuming high cost, effort and time in QM
• Workforce diversity: managing different human
resources to maintain QM is challenging, outsourcing
may require
• Innovation and change: continuous new innovation
and changes create challenge in QM
• Motivation of employees: as motivation is
psychological, it is very difficult to know psychology
of each employees
• Knowledge management: different employees may
have different knowledge, right knowledge must be
used in right time and at right place, which is very
challenging
• Technological development: huge cost is required for
technology development
• Improving quality of service: quality in product is not
enough, quality must be seen in service as well
• Benchmarking: to meet basic standard
• Assurance of TQM: org should be able to assure their
consumer about quality
Production and Operation Management
• Production and operation management are the conversion
of inputs into outputs by using physical resources.
• Production management is a process of planning,
organizing, directing and controlling the activities of
production process
• Operation management is a branch of quantitative
approach to management, focuses on managing the
process of transforming materials, labor and capital into
useful goods and services .
• The following activities which are listed under production
and operation management
• Location of facilities
• Plant layout and material handling
• Product/process design
• Production and planning control
• Quality control
• Materials management
• Maintenance management
KAIZEN strategy
• Here KAI means change and ZEN means become good. This
strategy focuses in continuous improvement of quality of
goods and services on the basis of changing needs and
expectation of the customers
• Continuous improvement through customer feedback and
complaints. Reducing wastage in organization and constant
improvement in goods.
Deming’s Quality Management
Plan-Do-Check-Act (PDCA) Cycle
• 1. Plan.
• First, identify and understand your problem or
opportunity, set standards.
• 2. Do.
• Once you've identified a potential solution, test it
safely with a small-scale pilot project.
• 3. Check.
• Next, analyze your pilot project's results against the
expectations that you defined
• 4. Act.
• This is where you implement your solution. But
remember that PDCA/PDSA is a loop, not a process
with a beginning and end.
Supply Chain Management(SCM)
• The supply chain involves the processes from the
initial raw materials to final consumption of the
finished products linking across supplier-user
industries.
• SCM is an integrative philosophy to manage the total
flow of a distribution channel from supplier to the
ultimate user.
• SCM follow the following strategies
• Understanding needs of current and future
customers nationally and internationally
• Understanding suppliers core competency in meeting
customers needs
• Finding inefficiencies within supply chain
• Developing relationship and alliances with suppliers
Six Sigma approach to Quality Management
• Six Sigma is a method that provides organizations
tools to improve the capability of their business
processes. This increase in performance and decrease
in process variation helps lead to defect reduction and
improvement in profits, employee morale, and quality
of products or services.
• It is also known as DMAIC
• Define: define what customers want and need
• Measure: measure customers want and need in terms
of quantity and collect data
• Analysis: data is analyzed to find out correction to be
made and improved
• Improve: certain correction and improvement is done
• Control : meet standard with actual performance
taking correction if necessary
The Japanese 5S practice
• Seiri( sort): required and necessary items must be
sorted among pool of items
• Seiton(shine): from sorting, only the important
items are selected, cleaning environment by
disposing unwanted and unnecessary items
• Seiso(set in order): useful and important items
should be set in order, it maintain standard
• Seiketsu(standardize): standardize the items
• Shitsuke(sustain): maintaining standard for long
period