Control and Quality management

Characteristics of control

1. management function
2. pervasive (huge) function
3. continuous process
4. dynamic process
5. forward looking
6. measurement and comparison
7. corrective action

Process of Control

1. establishment of standard 
2. measuring actual performance
3. comparison of actual performance with standards
4. analyze the causes of deviation (farak)
5. taking corrective action

Types of Control system

1. pre-control
2. concurrent control
3. post control

Importance of Controlling

1. execution of plan
2. improve efficiency
3. basis of future action
4. aid to decentralization
5. morale checks on employee
6. means of co-ordination
7. effective supervision
8. maximize productivity

Purposes / Objectives of Controlling

1. location of deviation
2. study the causes of deviation
3. taking necessary measutes
4. to prevent causes of deviation
5. reduce cost and maximize profit
6. to maintain discipline
7. helps to maintain coordination

Characteristics of an Effective Control system

1. link with planning
2. simplicity
3. timeliness
4. economical 
5. user-friendly
6. capable to communicate
7. suggestive
8. flexibility
9. corrective action
10. forward-looking

Problem with Control system

1. over control 
2. inappropriate focus
3. reward for inefficiency
4. maximum accountability
5. coordination problem

Types of Budget

a. Financial Budget

1. cash budget
2. capital expenditure budget
3. balance sheet budget

b. Operating Budget

1. sales or revenue budget
2. expense budget
3. profit budget

c. Non-Monetary Budget

1. labor budget
2. space budget
3. production budget

Factors affecting Quality

1. policy
2. information
3. engineering and design
4. materials
5. equipment
6. people

Financial Control

a. Financial statement

1. income statement
2. balance sheet
3. cash flow
4. financial ratios

b. Auditing

1.  internal audit
2. external audit
3. management audit

Tools For TQM

1. benchmarking
2. outsourcing
3. speed
4. ISO 9000
5. statistical quality control  

Principles of Deming Management

1.  quality improvement drives the entire economy
2. the customer always comes first
3. do not blame the person fix the system
4. plan-do-check-act

Deming Quality management Techniques

1. create constancy purpose
2. adopt the new philosophy
3. cease dependence on mass inspection
4. end the practice of awarding business on price tag alone
5. seek continuous improvement
6. institute modem methods of training on the job
7. institute leadership
8. drive out fear
9. eliminate slogans and targets
10. eliminate numerical quotas
11. remove barriers to pride of workmanship
12. take action to accomplish transformation