Engineering Management Controlling PDF

Engineering Management CONTROLLING Engr. Renz Cyrill S. Fontanilla  01 OPERATIONAL CONTROL  OPERATIONAL CONTROL Regulates the day-to-day output relative to schedules, specifications, and costs  OPERATIONAL CONTROL Requires substantial overhead for ma...

Engineering Management CONTROLLING Engr. Renz Cyrill S. Fontanilla  01 OPERATIONAL CONTROL  OPERATIONAL CONTROL Regulates the day-to-day output relative to schedules, specifications, and costs  OPERATIONAL CONTROL Requires substantial overhead for management, data collection, and operational improvement Streamlining the process to minimize costs and work as quickly and efficiently as possible  FEATURES OF CONTROLLING FUNCTION 1. Controlling is an end function. 2. Controlling is a pervasive function. 3. Controlling is forward looking.  FEATURES OF CONTROLLING FUNCTION 4. Controlling is a dynamic process. 5. Controlling is related to Planning.  02 PROCESSES OF CONTROL  ESTABLISHMENT OF STANDARDS Plans the targets which have to be achieved in the course of business function they can also be called as the criterions for judging the performance  MEASURABLE / TANGIBLE Cost, output, expenditure, time, profit, etc. NON-MEASURABLE / INTANGIBLE Performance of a manager, deviation of workers, their attitudes towards a concern  MEASUREMENT OF PERFORMANCE Finding out deviations becomes easy through measuring the actual performance. Sometimes done through various reports Performance levels are sometimes easy to measure and sometimes difficult.  MEASUREMENT OF PERFORMANCE Measurement of tangible standards is easy as it can be expressed in units, cost, money terms, etc. Quantitative measurement becomes difficult when performance of a manager has to be measured.  MEASUREMENT OF PERFORMANCE Performance of a manager can be measured only by: ○ Attitude of the workers ○ Their morale to work ○ The development in the attitudes regarding the physical environment ○ Their communication with the superiors  COMPARISON OF ACTUAL AND STANDARD PERFORMANCE Deviation can be defined as the gap between actual performance and the planned targets. The manager has to find out: 1) extent of deviation, and 2) cause of deviation.  EXTENT OF DEVIATION Find out whether the deviation is positive or negative or whether the actual performance is in conformity with the planned performance  EXTENT OF DEVIATION Find out those deviations which are critical and important for business EXTENT OF DEVIATION Minor Deviation Major Deviation  CAUSE OF DEVIATION Think about various causes which have led to a deviation  TAKING REMEDIAL ACTIONS The manager has to detect those errors and take remedial measures.  TAKING REMEDIAL ACTIONS 1. Take corrective measure for deviations which have occurred. 2. If the actual performance is not in conformity with plans, the manager can revise the targets.  PLANNING AND CONTROLLING Without the basis of planning, controlling activities become baseless. Without controlling, planning becomes a meaningless exercise.  ACCDG. TO BILLY GOETZ Planning precedes controlling and controlling succeeds planning. Planning and controlling are inseparable functions of management. Activities are put on rails by planning and they are kept at right place through controlling.  ACCDG. TO BILLY GOETZ The process of planning and controlling works on Systems Approach Planning and controlling are integral parts of an organization as both are important for smooth running of an enterprise.