O’ Reilley Associates

Group 14 20081014 20081029 20081044 20081059

Dimple Singh Mayank Gaur Rohan Sharma Vishnu Mangal 

Case Facts
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Time Zone – 1990’s Characters –Anil Chitkara, Chairman, president and treasurer

Major
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Organization Structure 

Major Issue
Profitability

T & D Corporation’s

account 

Management Control System
Best

suited Management Control System for O’Reilley could be “Control of Operations” Preparation of project plan
 Scope  Schedule  Cost
Communication

to employees about

the plan
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Management Control System
Important

to fill the time sheets Timely reports Comparison of reports Deviations can be measured 

Anil Chitkara’s report
Issues pertaining to Income Statement  Cost of direct payroll was 88.2% (100*136,250/154,500) of revenue, in contrast to be less than 55% for being profitable.  It was unclear why direct payroll under art category was charged; rather artwork was performed by T&D itself.  It is unclear on what basis such a low commission & fees was charged to the client.
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Anil Chitkara’s report Recommendations
Commission

and fee should be based on billing hour plus expenditure plus commission basis. And commission should be around 15%

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Learning Outcomes
We

have learned that how management controls system in service industry differs from manufacturing industry. service industry primary assets are Human resources so more importance is given to employees work hour.

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In

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Thank You