UNIT-6

STRATEGIC CONTROL & EVALUATION

TOTAL QUALITY MANAGEMENT

It

is an operational philosophy committed

to customer satisfaction.
It focuses on continuous improvement in
all operations of the organization.
It aims to reduce cost and improve quality.
It emphasizes prevention not correction.

Objectives of TQM
Better
Quicker
Flexibility
Lower cost
Elements of TQM
An intense focus on customer satisfaction
Internal as well as external customer
Accurate measurement of every critical variable in
a companys operation.
Continuous improvement of products and services.
New work relationships based on trust and
teamwork.

ROLE OF STRATEGIC
INFORMATION SYSTEM
It

is intended to communicate
performance measures to the top
management.
It is computer based, manual formal or
informal.
It needs to cover such broad areas as
customer data, operations data,
employee data, supplier data and
financial performance data.

METHODS OF STRATEGIC
INFORMATION SYSTEM
1.
.

Enterprise Resource Planning

Many companies all around the world
use ERP software.
It unites all of a companys major
business activities from order
processing to production within a
single software.
The system provides instant access to
critical information to everyone in the
organization.

2. Electronic Scoreboard

It gathers daily or weekly statistics from

different databases about the inventory,
sales and cost.
It enables managers to know what is
happening and make better on the spot
decisions.
It helps to respond more effectively to
customer inquires and deliver
personalized service.

3. Divisional and Functional Support

It is used to support, enlarge its business
level strategy through its decision
support system.
It helps to take right decision on time.
It uses information system to reduce
costs either by improving labor
productivity or improving the use of other
resources such as inventory or
machinery.

4. Activity Based Costing (ABC)

It is new accounting method for
allocating indirect and fixed costs to
individual products or product lines.
It is useful in doing value chain analysis.
It focuses on accurate allocation of cost
to cost objectives such as products,
clients, profiles or branches.

THE END