Control Chart

Topics: Control chart, Management, Statistical process control Pages: 20 (7889 words) Published: December 16, 2012
Executive Summery

Controlling is a four-step process of establishing performance standards based on thefirm's objectives, measuring and reporting actual performance, comparing the two, andtaking corrective or preventive action as necessary. It actually is a process of monitoring performance and taking action to ensure desired results. Performance standards come from the planning function. No matter how difficult, standards should be established for every important task. Although the temptation may be great, lowering standards to what has been attained is not a solution to performance problems. On the other hand, a manager does need to lower standards when they are found to be unattainable due to resource limitations and factors external to the business. Control helps an organization adapt to changing conditions, limits the compounding of errors, helps an organization cope with complexity, and helps minimize cost. In today’s complex and turbulent environment, all organizations must contend with change. If managers could establish goals and achieve them instantaneously, control would not be needed. But between the time a goal is established and the time it is reached, many things can happen in the organization and its environment to disrupt movement toward the goal or even to change the goal itself. A properly designed control system can help managers anticipate, monitor, and to changing circumstances. Small mistakes and errors do not often seriously damage the health of an organization. With the passage of time, however, small errors may accumulate and become very serious. When a firm purchases only one raw material, produces but one product, has a simple structure, and enjoys constant demand for its product, its managers can probably maintain control with a note pad and pencil. But in an organization that produces many products from myriad raw materials, has a large market area and complicated organization structure, and operates in a competitive environment, it is difficult to maintain adequate control without and elaborate control system. When control is practiced effectively, it can help reduce costs and boosts output. Effective control system can eliminate waste, lower labor costs, and improve output per unit of input. So in management Controlling plays a major role in achieving a specific target.

Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs.” Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course.” Corrective action is necessary when performance is below standards. If performance is anticipated to be below standards, preventive action must be taken to ensure that the problem does not recur. If performance is greater than or equal to standards, it is useful to reinforce behaviors that led to the acceptable performance. It sees to it that the right things happen, in the right ways, and at the right time. Donewell, it ensures that the overall directions of individuals and groups are consistent with short and long range plans. It helps ensure that objectives and accomplishments are consistent with one another throughout an organization. It also helps maintain compliance with essential organizational rules and policies.

As a part of our “Management of organization” course we are working on Controlling. We believe this study will help us learning the concept of controlling in detailed with various perspective in it. Further more this study will help us learn how to take a group decision effectively as well as how to work in a group efficiently toward a single group task....
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Ops 571 Statistical Process Control
  • Statistical Quality Control Essay
  • Solution of Control chart Essay
  • Sqc
  • Control Charts Essay
  • spc charts Essay
  • Control Chart Essay

Become a StudyMode Member

Sign Up - It's Free