CONTROL TECHNIQUES

Organization must control their activities in order to be effective and efficient. Activities must be performed as planned as planned and the result must be consistent with expectations. Management has at its disposal a number of control techniques. The type of control technique employed would depend upon the type of situation that exists. Budgetary control, inventory control and quality control are the control techniques used.

BUDGETARY CONTROL
Budgets are quantitative statements that allocate resources to various units of the organization and cover a specific period of time, usually a time period of the year.

BENEFITS OF BUDGETORY CONTROL

y Allocation of funds in an appropriate manner. y Budgets acts as controlling devices to correct any deviations. If the expenditure for a given activity exceed the allotted budget at any point in time, this will signal a deviation from the prescribed course, requiring attention and action by the management. y Budget help in the just measurement of performance. Due to quantification of budgets. The measurement of performance becomes more objective in nature thus eliminating biases that might be introduced due to subjective evaluations. y The budgeting process helps management learn from past experience. y The budgeting process includes the management shift attention to the future operations

y Budgets facilitate communications throughout the organization y Budgets help new people and lower-level managers see where the organization is going and where they fit in the organization.

QUALITY CONTROL
It can be defined as The systematic control of those variables which affect the quality performance of the produced item . These variables which result from the application of men, material, machines and operations must be regulated so that their input does not significantly deviate from the prescribed standards of the end product.

BENEFITS
The finished product is more uniform in quality, more reliable in service and its performance is predictable It introduces quality consciousness in the minds of employees as well as management It minimizes the waste of time and the waste of materials since fewer items would be rejected It give the organization the flexibility of reducing prices and gaining a market share It improves the public relations concept b/w the producer & the consumer & builds up positive image of the producer

QUALITY ASSURANCE
It assures that the product will perform as desired & promise. It is a reflection of product reliability which is designed & built into the product

INVENTORY CONTROL
It is concerned with systematic acquisition, storage and recording of materials in such a manner as to furnish the desired degree of service to the operating departments and to the customer at the lowest cost.

PERT
PERT stands for program evaluation and review technique. It was developed by U.S. Navy in 1957-58 in connection with polaris weapon system.

PERT IN CONTROLLING
y It displays graphically a project s activities y It provides estimates of how long the project and its component activities will take y It indicate as to which activities are most critical at the time of project completion and suggest how long an activity within the project can be delayed without delaying the entire project

CPM
In this technique, the times and cost of activities are known. It accommodates situations in which sets of standardized activities are a part of the project for which sets of standardized activities are a part of the project for which the times for completion of these activities can be more accurately calculated.