Engineering Management - Controlling
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Questions and Answers

What does operational control regulate?

The day-to-day output relative to schedules, specifications, and costs

Operational control does not require significant resources for managing, collecting data, and enhancing operations.

False (B)

One of the goals of operational control is to streamline processes to minimize costs and optimize speed and efficiency.

True (A)

Controlling is not considered to be an end function.

<p>False (B)</p> Signup and view all the answers

Controlling is a function that's only relevant to specific areas of the business.

<p>False (B)</p> Signup and view all the answers

Controlling as a function focuses on the present and does not consider future implications.

<p>False (B)</p> Signup and view all the answers

Controlling is a static function that does not adapt to changes.

<p>False (B)</p> Signup and view all the answers

Controlling is a function that exists independently of planning.

<p>False (B)</p> Signup and view all the answers

What are the targets that need to be achieved in the course of a business function?

<p>The targets that need to be achieved in the course of a business function are called standards.</p> Signup and view all the answers

Standards can also function as criteria for evaluating performance.

<p>True (A)</p> Signup and view all the answers

Which of the following are examples of measurable/tangible standards?

<p>Expenditure (A), Output (B), Time (C), Cost (D), Profit (E)</p> Signup and view all the answers

Which of the following are examples of non-measurable/intangible standards?

<p>Manager's performance (A), Employee morale (F)</p> Signup and view all the answers

It is always easy to assess performance levels.

<p>False (B)</p> Signup and view all the answers

Measuring tangible standards is always easy because they can be expressed in quantifiable terms.

<p>True (A)</p> Signup and view all the answers

It is as challenging to measure the performance of a manager as measuring the output of a machine.

<p>False (B)</p> Signup and view all the answers

Which of the following are considered ways to measure the performance of a manager? (Select all that apply)

<p>Development in worker attitudes towards the work environment (B), Communication with superiors (C), Attitude of the workers they supervise (D), Morale of the workers they supervise (E)</p> Signup and view all the answers

What is defined as the gap between actual performance and planned targets?

<p>Deviation</p> Signup and view all the answers

What are the two key things a manager needs to determine regarding deviation?

<p>The manager must assess both the extent of deviation and the cause of deviation.</p> Signup and view all the answers

What are the two categories of deviation?

<p>Minor deviation (A), Major deviation (C)</p> Signup and view all the answers

A manager should focus solely on major deviations and ignore minor deviations.

<p>False (B)</p> Signup and view all the answers

What is the primary objective when addressing the cause of deviation?

<p>To identify the factors that led to the deviation.</p> Signup and view all the answers

Taking remedial actions is not a crucial part of the control process.

<p>False (B)</p> Signup and view all the answers

A manager should only focus on correcting past errors when taking remedial actions.

<p>False (B)</p> Signup and view all the answers

Controlling activities can be effective without planning.

<p>False (B)</p> Signup and view all the answers

Planning is useless without controlling.

<p>True (A)</p> Signup and view all the answers

Planning occurs before controlling, and controlling occurs after planning.

<p>True (A)</p> Signup and view all the answers

Planning and controlling are separate and distinct functions in management.

<p>False (B)</p> Signup and view all the answers

Planning and controlling are not crucial for the smooth operation of an organization.

<p>False (B)</p> Signup and view all the answers

Flashcards

Operational Control

Regularly monitors daily output against planned schedules, specifications, and budgets.

Operational Control Cost

Operational control requires significant resources for management, data collection, and process improvement.

Operational Control Efficiency

Streamlining processes to reduce costs and maximize speed and efficiency.

Controlling Function: End

Controlling is the final step in the management process, aiming to ensure plans are achieved.

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Controlling Function: Pervasive

Controlling applies to all areas of the organization, from individual tasks to overall goals.

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Controlling Function: Forward Looking

Controlling anticipates future issues and adjusts plans proactively to avoid problems.

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Controlling Function: Dynamic

Controlling is an ongoing process that adapts to changing conditions and new information.

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Controlling Function: Planning Relationship

Controlling is closely tied to planning, using plans as benchmarks for performance evaluation.

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Control Standard

Targets or goals set for a specific business function, serving as benchmarks for performance evaluation.

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Control Standard Example

Control standards can be cost, output, profit, expenditure, or time.

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Control Standard: Tangible

Standards that are measurable and quantifiable, like cost, output, or profit.

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Control Standard: Intangible

Standards that are difficult to quantify, like employee performance or work attitude.

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Performance Measurement

The process of assessing actual performance against established standards to identify any deviations.

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Performance Measurement: Reports

Performance measurements are often gathered through various reports that provide data on different areas.

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Performance Measurement: Tangible vs Intangible

Measuring tangible performance, like units produced, is easier than measuring intangible aspects like employee morale.

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Measuring Intangible Performance

Intangible standards like employee morale, leadership quality, and workplace environment are assessed indirectly.

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Deviation

The difference between planned and actual performance, highlighting areas needing attention or improvement.

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Deviation Assessment

Managers need to determine the extent and cause of any deviations to plan effective corrective actions.

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Deviation: Extent

Determining whether the deviation is positive (exceeding the goal), negative (falling short), or within acceptable limits.

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Deviation: Criticality

Focusing on significant deviations that have a major impact on business performance.

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Deviation: Minor vs Major

Classifying deviations as minor (easily corrected) or major (requiring more extensive action).

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Deviation: Cause

Identifying the root cause of deviations to understand why performance fell short of expectations.

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Remedial Actions

Steps taken to correct deviations, restoring performance to planned levels or adjusting plans as needed.

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Remedial Action: Corrective

Focuses on addressing deviations that have already occurred, restoring performance to the desired standards.

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Remedial Action: Revision

Adjusting targets or plans based on performance deviations, acknowledging that circumstances may have changed.

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Planning and Controlling Interdependence

Planning provides the framework for controlling, while controlling ensures that plans are implemented effectively.

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Planning and Controlling: Systems Approach

Planning and controlling are integrated parts of a larger management system, working together for the overall success of the organization.

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Study Notes

Engineering Management - Controlling

  • Operational Control regulates daily output against schedules, specifications and costs.
  • Operational Control requires significant overhead for management, data collection and improvements.
  • Operational Control involves streamlining processes to minimize costs and maximize efficiency.

Features of Controlling Function

  • Controlling is a final function in a process.
  • Controlling is a pervasive function affecting all parts of an operation.
  • Controlling is forward-looking, anticipating future needs.
  • Controlling is a dynamic process, constantly adapting.
  • Controlling is closely related to planning.

Processes of Control - Establishment of Standards

  • Standards are targets set for business functions.
  • Standards act as criteria for performance evaluation.

Measurement of Performance

  • Determining deviations becomes easier by measuring actual performance.
  • Performance measurement is sometimes achieved through reporting.
  • Measuring performance levels can be straightforward for some aspects but difficult for others.
  • Tangible standards (e.g., units, costs, money) are easily measured.
  • Measuring intangible aspects of performance (e.g., manager performance, worker attitudes) is more complex.
  • Manager performance can be ascertained by observing worker attitudes, morale and their communication with superiors.
  • The manner in which the working environment affects worker morale and attitude is also often considered.

Comparison of Actual and Standard Performance

  • Deviation is the difference between actual and planned performance.
  • Managers need to quantify the extent and identify the reasons for deviations.

Extent of Deviation

  • Determining whether a deviation is positive, negative, or if actual performance aligns with plans.
  • Identifying deviations that have significant implications for business.
  • Classifying deviations as either minor or major.

Cause of Deviation

  • Determining the reasons why deviations occur.

Taking Remedial Actions

  • Managers must identify and correct errors.
  • Managers may implement corrective measures to address discrepancies.
  • Managers can revise targets if actual performance significantly differs from plans.

Planning and Controlling

  • Controlling activities lack direction without proper planning.
  • Planning becomes meaningless without controlling to monitor and adjust as necessary.

According to Billy Goetz

  • Planning precedes controlling, and controlling follows planning.
  • Planning and controlling are inextricably linked as essential management functions.
  • Planning establishes the framework, and controlling ensures adherence to the framework.
  • The process of planning and controlling is based on a Systems Approach.
  • Both planning and controlling are integral to an organization's smooth operation.

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Engineering Management Controlling PDF

Description

This quiz covers the principles and processes of controlling within engineering management. Learn about operational control, the features of the controlling function, and the establishment of performance standards. Test your understanding of how controlling impacts efficiency and planning in organizations.

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