MANAGEMENT CONTROL SYSTEM

ASSIGNMENT
SUBMITTED BY

AJMALBABU.C

ROLL NO.6

4TH SEM
MBA

DCMS
A)Enterprise Resource Planning
(ERP)
Enterprise resource planning (ERP) is a process used by
companies to manage and integrate the important parts of their
businesses. Many ERP software applications are important to
companies because they help them implement resource planning by
integrating all of the processes needed to run their companies with a
single system. An ERP software system can also integrate planning,
purchasing inventory, sales, marketing, finance, human resources, and
more. ERP applications also allow the different departments to
communicate and share information more easily with the rest of the
company. It collects information about the activity and state of
different divisions, making this information available to other parts,
where it can be used productively.

B)Balanced Scorecard
The Balanced Scorecard, referred to as the BSC, is a framework to
implement and manage strategy. It links a vision to strategic objectives,
measures, targets, and initiatives. It balances financial measures with
performance measures and objectives related to all other parts of the
organisation. It is a business performance management tool. It was
originally published by Dr Robert Kaplan and Dr David Norton as a
paper in 1992. And then formally as a book in 1996. Both the paper
and the book led to its widespread success. It is interesting to note that
although Kaplan and Norton published the first paper, they were
anomalously referenced in a work by Art Schneiderman who is believed
to be the balanced scorecard creator.
C)Benchmarking
Benchmarking is a process of measuring the performance of a company’s
products, services, or processes against those of another business considered to
be the best in the industry, aka “best in class.” The point of benchmarking is to
identify internal opportunities for improvement. By studying companies with
superior performance, breaking down what makes such superior performance
possible, and then comparing those processes to how your business operates, you
can implement changes that will yield significant improvements.

D) Pareto Analysis
Pareto analysis is a technique used for business decision-making, but which also
has applications in several different fields from welfare economics to quality
control. It is based largely on the "80-20 rule." As a decision-making technique,
Pareto analysis statistically separates a limited number of input factors either
desirable or undesirable. which have the greatest impact on an outcome. Pareto
analysis is premised on the idea that 80% of a project's benefit can be achieved by
doing 20% of the work or, conversely, 80% of problems can be traced to 20% of
the causes. Pareto analysis is a powerful quality and decision-making tool. In the
most general sense, it is a technique for getting the necessary facts needed for
setting priorities.
E) Just-in-Time Approach
The just-in-time (JIT) inventory system is a management strategy that aligns raw-
material orders from suppliers directly with production schedules. Companies
employ this inventory strategy to increase efficiency and decrease waste by
receiving goods only as they need them for the production process, which
reduces inventory costs. This method requires producers to forecast demand
accurately.

One example of a JIT inventory system is a car manufacturer that operates with

low inventory levels but heavily relies on its supply chain to deliver the parts it
requires to build cars, on an as-needed basis. Consequently, the manufacturer
orders the parts required to assemble the cars only after an order is received.

F) Total Quality Management(TQM)

Total quality management (TQM) is the continual process of detecting and
reducing or eliminating errors in manufacturing, streamlining supply chain
management, improving the customer experience, and ensuring that employees
are up to speed with training. Total quality management aims to hold all parties
involved in the production process accountable for the overall quality of the final
product or service. TQM was developed by William Deming, a management
consultant whose work had a great impact on Japanese manufacturing. While
TQM shares much in common with the Six Sigma improvement process, it is not
the same a six sigma TQM focuses on ensuring that internal guidelines and
process standards reduce errors, while six sigma reduce looks to reduce defects.
G) Theory of Constraint
The Theory of Constraints is an organizational change method that is focused
on profit improvement. The essential concept of TOC is that every
organization must have at least one constraint. A constraint is any factor that
limits the organization from getting more of whatever it strives for, which is
usually profit. The Goal focuses on constraints as bottleneck processes in a
job-shop manufacturing organization. However, many non-manufacturing
constraints exist, such as market demand, or a sales department’s ability to
translate market demand into orders.

H) Profitability analysis
When a company is incepted, one of the sole purposes of it is to make profits.
Basically, to earn more than you spend is what every business owner wants for his
company. Thus, to assess the growth of your business, careful study on profit is
important, and that is pretty obvious. However, the nuances that secretly lie
under various financial statements, will give you the real picture of your
company’s profits.

Analysing of the profits which is basically the money remaining from the capital
after subtracting all the overhead costs, will help you keep a track of your
business’ performance. Profitability analysis allows companies to maximise their
profit. Thus, resulting in maximising the opportunities that business can take
advantage of, in order to continue growing in an extremely dynamic, competitive,
and vibrant market. Profitability analysis helps businesses identify growth
opportunities, fast/slow-moving stock items, market trends, etc, ultimately
helping decision-makers see a more concrete picture of the company as a whole.