03/02/2023

Administrative control
Systems
Lecture 2-Week 2

Components of a control system

The components of a control

system are:
✓Patterns control
✓Information acquisition
✓ Comparison and corrective
action
✓Restart of the planning cycle.

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Measure a process

Watch the video:

https://youtu.be/5NVjIIi9fkY
Why is important to measure
process?

Management process
Objetive/Goals

Activities

Patterns Comparison Results

Feedback and corrective action

Components of a control system

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CONTROL PATTERNS

• Control patterns consist of information that allows you to

evaluate performance and make decisions.

• They are extracted directly from the objectives (expected

results), from the activities that must be carried out and from
the plans for the application of resources.

CONTROL PATTERNS

Thus, for example, if you

commit to deliver a product
with certain quality
specifications on a certain day,
consuming no more than $1.00,
that data is your control
patterns and is recorded in
planning tools: schedules,
budgets, worksheets, etc.
resource calculation, quality
specifications, etc

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INFORMATION ACQUISITION

The control process

depends on information
about the direction of the
activities and their
progress towards the
objectives.
The production of
information, also called
the monitoring or follow-
up process, is the heart of
any control system.

INFORMATION ACQUISITION

The information system must define what information must be produced, how and
when it must be obtained

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What information?

• The information to be produced

depends on the control patterns.
• If you want to control the quality of
a process, the manager needs
information about the quality,
planned and actual, of products and
services.
• If you want to control the execution
of a budget, the information you
need is only the budget itself and the
expense reports.

How to acquire information?

• There are a variety of means for obtaining

control information available to managers:
• • Visual inspection.
• • Meetings with the team.
• • Customer-filled questionnaires, such as
those used on airplanes and hotels.
• • Automated information collection and
processing systems.
• • Verbal or written reports.
• • Charts and maps.

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What is the best time to measure for

information?

Another important decision is

the choice of the moment in
which the information is
produced: before, during or
after the execution of activities.

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WHAT IS THE BEST TIME TO MEASURE FOR

INFORMATION?
previous control process control control after process

Activity

quality system audit statistical process traditional quality control

control

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EXAMPLE

https://youtu.be/LuBJcrtWdMM
.

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PREVIOUS CONTROL

Information before the activity.

Pre-checks are also used in
certain cases. Personnel
selection tests, quality system
audits, and preventive
maintenance programs are
examples of prior checks.

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PROCESS CONTROL

Information during the activity.

An example is statistical process
control, done throughout the
production process. This
technique controls the
production process itself in
order to prevent defects or
problems, thus avoiding
correction and rejects at the
end of the line.

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Control after process

• For example, the evaluation of

student performance is still done
through tests and exams at the end
of the course. The main shortcoming
of that type of measurement is the
fact that the activity has already
occurred. In the case of a serious
problem, it might be too late to take
any corrective action. Information of
this type shows that the activity
must be modified in the future, but
it does not make it possible to
correct what has already happened.

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COMPARISON AND CORRECTIVE ACTION

In the final stage of the control

process, information about
actual performance is compared
with objectives or patterns.

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COMPARISON AND CORRECTIVE ACTION

The comparison can indicate three situations:

• Actual performance equal to expected. When the goal is accomplished, a reinforcing action may be
appropriate. For example, a prize as an incentive for the team that achieved its goals.
• Actual performance lower than expected. A corrective action must be put in place to bring performance
up to the desired level. For example, more resources can be applied. This information could also reveal
that the target level has been overestimated and needs to be lowered.
• Actual performance higher than expected. The reinforcing action, in this case, has the purpose of
sustaining the performance that exceeded the objective, or an above-average performance. For example,
a larger number of employees can be assigned to the production department to attend to a higher volume
of sales than expected; or the team may be rewarded for exceptionally high performance.

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COMPARISON AND CORRECTIVE ACTION

• https://youtu.be/x8GaoLPARpI Let's watch the video to identify

the corrective actions.

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RESTART OF THE PLANNING CYCLE

• The information produced by the

control process allows decisions
to be made about new objectives
and new control patterns.
• Just as control complements
planning, the reverse also occurs.
Frequently, it is only possible to
plan based on control
information, and not projections
or forecasts about the future.

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RESTART OF THE PLANNING CYCLE

Planning Control

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RESTART OF THE PLANNING CYCLE

https://youtu.be/0m1q8QKxdWE

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Effectiveness of control systems

A control system produces information about the performance of a system so that

someone can make decisions. Setting up a control system implies defining the
procedures and tools for the production, processing and presentation of
information.

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MAIN CHARACTERISTICS OF AN EFFECTIVE

CONTROL SYSTEM

1. Focus on strategic points

2. Precision
3. Speed
4. Objectivity
5. Economy
6. Acceptance of people
7. Emphasis ON THE EXCEPTION
This Photo by Unknown Author is licensed under CC BY-SA

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