OPERATIONS CONTROL

Objectives:
1. To identify and implement process improvements, explore new technologies, and seek innovative
solutions to challenges
2. To ensure the efficient and effective use of resources to accomplish a company’s goals
3. To determine the impact of Operations Control on Business Performance
4. To understand the Role of Operations Control in Business Management
5. To improve the company’s profitability with Operations Control in Business Management
6. To identify and mitigate operational risks that could impact the business, including disruptions to
the supply chain or unexpected events.
7. Properly allocating and managing resources such as manpower, materials, and technology.

Introduction:
Operational control is the process of checking if specific tasks or transactions are delivered in
efficient and effective way. All activities might be measured in terms of input (resources) and
output (consumes: goods, services, other effects).
Operational business controlling is used to regulate the internal processes necessary to monitor
and direct of the company in the short term.
Operations control plays a crucial role in evaluating the effectiveness of a business’s operations
and helping visualize its entire production system. With operations control, businesses can
understand where resources are being used most efficiently and how they can improve on them.

The main tasks of operational controlling include:

 Controlling of the results. Controlling results involves monitoring and evaluating the actual
outcomes of operational activities against planned or expected outcomes. When results deviate
from the desired outcomes, operation control allows for timely identification of issues. This
enables management to take corrective action, adjust strategies, and improve future performance.
 Liquidity planning. Liquidity planning is essential for ensuring that the organization has
sufficient cash and liquid assets to meet its short-term obligations. It involves forecasting cash
flows and planning for the timing of inflows and outflows. Adequate liquidity helps mitigate
financial risks, ensuring that the organization can weather economic downturns, unexpected
expenses, or disruptions without compromising its ability to operate.
 Monitoring of profitability. Monitoring profitability is a core aspect of operation control as it
assesses the organization's ability to generate profits from its operations. This includes analyzing
revenue, costs, and overall financial performance. Profitability monitoring provides valuable
insights for decision-making, helping management identify areas for improvement, allocate
resources strategically, and optimize the product or service mix.
 Improving effectiveness of use of existing resources. Operation control involves a continuous
effort to enhance the efficiency of resource utilization. This includes human resources,
machinery, time, and other assets. Improving the effectiveness of resource use helps control costs
and eliminate wasteful practices. This is critical for maintaining competitiveness and maximizing
the value derived from existing resources.

References:
https://ceopedia.org/index.php/Operational_controlling?
fbclid=IwAR0IvK2PRLkRXN9roMtb4JJSiNrCcj44qfTdKj_mRKJuH0stEG_XbLt73Ms
https://upmetrics.co/business-terms/operations-control?
fbclid=IwAR085Zy_JyGC79TYG4unzrY77XiYraYnhAW7Gp1AMFSqC_-xXCLjPOka_OY