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Control Process
Control
Types of Control
Bureaucratic and Quality Control Tools and Techniques
Financial and Project Management Tools of Control
Scorecard Management
Control
Managing Control
Control
(continued)
Managing Productivity
Control
Control > Control Process
Control Process
• Setting Objectives and Standards
• Measuring Organizational Performance
• Analyzing Organizational Performance
• Taking Corrective Action
www.boundless.com/management/textbooks/boundless-management-textbook/control-8/control-process-61/
Control > Types of Control
Types of Control
• Strategic, Tactical, and Operational Control
• Feedback, Concurrent Control, and Feedforward
• Internal and External Control
• Internal and External
www.boundless.com/management/textbooks/boundless-management-textbook/control-8/types-of-control-62/
Control > Bureaucratic and Quality Control Tools and Tech...
Bureaucratic and Quality Control Tools and Techniques

• Bureaucratic Control
• The Quality Control Cycle
• Total Quality Management (TQM)
• The RATER Model
• Total Quality Management Techniques
www.boundless.com/management/textbooks/boundless-management-textbook/control-8/bureaucratic-and-quality-control-tools-and-techniques-
63/
Control > Financial and Project Management Tools of Control
Financial and Project Management Tools of Control

• Gantt Charts
• CPM and PERT Charts
• Financial and Budgetary Controls
• Project Management Audits
• Project Management Inventory
• Break-Even Analysis
• Ratio Analysis
www.boundless.com/management/textbooks/boundless-management-textbook/control-8/financial-and-project-management-tools-of-control-64/
Control > Scorecard Management
Scorecard Management
• Balanced Scorecards
• Visual Scorecards
• Scorecard Measurement
www.boundless.com/management/textbooks/boundless-management-textbook/control-8/scorecard-management-65/
Control > Managing Control
Managing Control
• Elements of Managing Control
• Barriers to Managing Control
www.boundless.com/management/textbooks/boundless-management-textbook/control-8/managing-control-66/
Control > Managing Productivity
Managing Productivity
• Defining Productivity
• The Importance of Productivity
www.boundless.com/management/textbooks/boundless-management-textbook/control-8/managing-productivity-67/
Appendix
Control
Key terms
• benchmark When a manager compares metrics such as quality, time, and cost across an industry and against competitors.
• benchmark A standard by which something is evaluated or measured.
• Best practice A method or technique that has consistently shown better results than others, and is used as a benchmark.
• best practices A method or technique that has consistently shown results superior to those achieved with other means and so
therefore is used as a benchmark.
• bureaucracy Structure and regulations in place to control activity. Usually in large organizations and government operations.
• concurrent Happening at the same time; simultaneous.
• continuous improvement An ongoing effort to make products, services, or processes better.
• control Influence or authority over someone or something.
• Critical Path In a CPM diagram, the longest time period that any series of tasks will take. This amount of time becomes the
maximum amount of time needed to complete the project.
• dichotomies Two elements, often mutually exclusive, that stand in juxtaposition to one another.
• efficient Making good, thorough, or careful use of resources; not under- or over-consuming. Making good use of time or energy.
• ex-ante Latin for "beforehand" or "in advance of."
Control
• ex-post Latin for "after the fact."

• feedback Critical assessment on information produced.
• feedforward To respond in advance.
• fixed costs Business expenses that are not dependent on the level of goods or services produced by the business. They tend to
be time-related, such as salaries or rents being paid per month.
• Gap Analysis A tool that helps organizations compare actual performance with potential performance. The thought process is:
"Where are we now and where do we want to be?"
• Gap Analysis A tool that helps organizations compare actual performance with potential performance. It answers the question:
"Where are we now and where do we want to be?"
• hierarchy An arrangement of items in which the items are represented as being "above," "below," or "at the same level as" in
relation to each other.
• input Something fed into a process with the intention of it shaping or affecting the outputs of that process.
• JIT Just-in-Time; to perform an operation (usually compiling).
• Key Performance Indicator An industry term for a type of performance measurement; usually used by an organization to
evaluate its success.
• locus of control A theory in personality psychology referring to the extent to which individuals believe that they can effect or
dictate how events affect them.
• macroeconomic Relating to the entire economy, including growth rate, money and credit, the total amount of goods and
services produced, total income earned, the general behavior of prices, and more.
Control
• microeconomic Relating to the decision-making behavior of individual households and firms that must allocate limited
resources. Typically, it applies to markets where goods or services are bought and sold.
• objectives The goals of an organization.
• operational planning The process of linking strategic goals and objectives to tactical goals and objectives.
• Pareto Analysis A statistical technique that is used to select a limited number of tasks that produce significant overall effect.
• PDCA The cycle of Plan-Do-Check-Act, four-step problem solving process typically used in quality control.
• performance The act of carrying into execution or action; achievement; accomplishment.
• problem solving Using generic or ad hoc methods, in an orderly manner, to resolve issues.
• procure To acquire or obtain.
• productivity The rate at which goods or services are produced by a standard population of workers.
• project management The discipline of planning, organizing, securing, managing, leading, and controlling resources to achieve
specific goals.
• QR Code Black modules (square dots) arranged in a square grid on a white background that can be read and processed by an
imaging device (such as a camera).
• quality The degree to which a man-made object or system is free from bugs and flaws, as opposed to scope of functions or
quantity of items.
Control
• quality control A procedure or set of procedures intended to ensure that goods adhere to a defined set of soundness criteria or
meet the requirements of the client or customer.
• quality control An activity, such as inspection or testing, introduced into an industrial or business process to ensure sound
processes and products.
• ratio A number representing a comparison between two things.
• reliability The quality of being dependable or trustworthy.
• RFID Tag Wireless tags with electromagnetic fields to transfer data, for the purposes of automatically identifying and tracking
tags attached to objects.
• Scarcity An inadequate amount of something; shortage.
• SERVQUAL SERVQUAL or the RATER model is a service quality framework.
• Six Sigma A process improvement method that focuses on statistical methods to reduce the number of defects in a process.
• standards Any norm, convention, or requirement.
• strategic management The art and science of formulating, implementing, and evaluating cross-functional decisions that will
enable an organization to achieve its objectives.
• Strategy Mapping An articulation of organizational perspectives and key goals.
• SWOT Analysis A SWOT analysis (strengths, weaknesses, opportunities, threats) is an exercise undertaken by organizations
to understand their current status and assess how to improve.
Control
• tacit Not derived from formal principles of reasoning; based on induction rather than deduction.
• throughput The movement of inputs and outputs through a production process.
• TQM Total Quality Management; a process improvement method that promotes the importance of quality improvement on a
continuous basis.
• Variance analysis The difference between a budgeted, planned, or standard amount and the actual amount incurred/sold. This
difference can be computed for both costs and revenues.
• vision An ideal or goal toward which one aspires.
Control
Textile manufacturing
During the Industrial Revolution, productivity increased with the implementation of the assembly line.
Wikipedia. "Textile industry." Public domain http://en.wikipedia.org/wiki/Textile_industry View on Boundless.com
Control
Six Sigma
The Six Sigma management philosophy drew inspiration from the quality improvement methodologies of preceding decades, including TQM.
Wikipedia. "File:Six sigma-2.svg - Wikipedia, the free encyclopedia." CC BY-SA http://en.wikipedia.org/w/index.php?title=File:Six_sigma-2.svg&page=1 View on
Boundless.com
Control
Auditing and Communicating to a Project Team

When auditing a project, the project manager needs to be clear that the project team does not become suspicious or feel threatened by it.
Open ClipArt. "OpenclipartPresentationAnonymous." Public domain http://openclipart.org/people/Anonymous/Anonymous_Presentation.svg View on
Boundless.com
Control
Units on a Tape Measure

A balanced scorecard should include specific details, like the units on a tape measure, so that the scorecard can yield useful results.
Flickr. "All sizes | Measuring time | Flickr - Photo Sharing!." CC BY-SA http://www.flickr.com/photos/aussiegall/286709039/sizes/o/in/photostream/ View on
Boundless.com
Control
Business Objectives
A company's objectives help determine what inputs and outputs are needed to achieve company goals.
Wikimedia. "Performance Reference Model." CC BY-SA http://commons.wikimedia.org/wiki/File:Performance_Reference_Model.jpg View on Boundless.com
Control
The balanced scorecard

On a standard balanced scorecard each"perspective" reminds the user to articulate attributes necessary for an effective scorecard: the financial
perspective, the customer's perspective, innovation, and internal processes, all of which come together to form an organization's vision and strategy.
Amazon Web Services. "Boundless." CC BY-SA 3.0 http://s3.amazonaws.com/figures.boundless.com/507b1643e4b04e6a3fb860b5/Slide1.jpg View on
Boundless.com
Control
A visual scorecard
The balanced scorecard is primarily a visual tool.
http://BOUNDLESS. "Boundless." CC BY-SA 3.0 http://BOUNDLESS View on Boundless.com
Control
PERT chart
A PERT chart shows the timing of a project.
Wikimedia. CC BY-SA http://upload.wikimedia.org/wikipedia/commons/3/37/Pert_chart_colored.svg View on Boundless.com
Control
PDCA cycle
Plan, Do, Check, Act
Wikipedia. "File:PDCA Cycle.svg - Wikipedia, the free encyclopedia." CC BY-SA http://en.wikipedia.org/w/index.php?title=File:PDCA_Cycle.svg&page=1 View on
Boundless.com
Control
Quality Checking
A U.S. Navy Aviation Electrician's Mate performs a maintenance check during the course of his duties.
Wikipedia. "EA-6B Prowler maintenance check." CC BY-SA http://en.wikipedia.org/wiki/File:EA-6B_Prowler_maintenance_check.jpg View on Boundless.com
Control
Example of the information feedback process

This image shows how data, information, and feedback flow throughout a management strategy.
Wikimedia. "Information Resource Management Strategy." Public domain http://commons.wikimedia.org/wiki/File:Information_Resource_Management_Strategy.jpg
View on Boundless.com
Control
Feedback
'Feedback' exists between two parts when each affects the other. (W.R. Ashby, "An introduction to cybernetics", 1956)
Wikipedia. "Simple Feedback 02." CC BY-SA http://en.wikipedia.org/wiki/File:Simple_Feedback_02.png View on Boundless.com
Control
Delivering Quality Service

A book by Valarie Zeithaml, A. Parasuraman, and Leonard Berry
Open Library. "Delivering quality service (Open Library)." Public domain http://openlibrary.org/works/OL2972038W/Delivering_quality_service View on
Boundless.com
Control
Operating margin formula

The operating margin is found by dividing net operating income by total revenue.
Wikipedia. "Operating margin." GNU FDL http://en.wikipedia.org/wiki/Operating_margin View on Boundless.com
Control
Gantt chart
Gantt charts are used in project management scheduling.
Wikimedia. CC BY-SA http://upload.wikimedia.org/wikipedia/en/7/73/Pert_example_gantt_chart.gif View on Boundless.com
Control
Business standards
Various standards have been developed over time to track business processes.
Wikimedia. "Standards BPM 2009 11." CC BY-SA http://commons.wikimedia.org/wiki/File:Standards_BPM_2009_11.jpg View on Boundless.com
Control
Bureaucratic control
An example of a bureaucratic feedback system is the military, with its strict hierarchy and clear chain of command.
Wikipedia. "Organizational chart." CC BY-SA http://en.wikipedia.org/wiki/File:Organizational_chart.svg View on Boundless.com
Control
QR code example
Above is a description of a QR code, along with the data implications of various visual aspects of the image (which are processed and reported via
software). Different components of the code reflect position, alignment, and timing.
Wikipedia. "QR Code Example." CC BY-SA 3.0 http://upload.wikimedia.org/wikipedia/commons/thumb/1/1d/QR_Code_Structure_Example_3.svg/640px-
QR_Code_Structure_Example_3.svg.png View on Boundless.com
Control
RFID tree
This image illustrates the information flow of RFIDs, which is then streamlined into large data streams for PMs to track.
Wikipedia. "RFID Tree." CC BY-SA 3.0 http://upload.wikimedia.org/wikipedia/commons/4/47/RFID_search_environment.png View on Boundless.com
Control
Productivity Gains
Wheat production has increased as the productivity gains improve, particularly since the 1980s.
Wikipedia. "Wheat yields in developing countries 1951-2004." Public domain http://en.wikipedia.org/wiki/File:Wheat_yields_in_developing_countries_1951-
2004.png View on Boundless.com
Control
Break-even analysis
Break-even points can be determined based on sales and total costs. The point is found at the number of units where loss and sales are equal.
Wikimedia. "CVP-TC-Sales-PL-BEP." Public domain http://commons.wikimedia.org/wiki/File:CVP-TC-Sales-PL-BEP.svg View on Boundless.com
Control
CPM Chart
A CPM chart is similar to a PERT chart but includes more detail about the latest and earliest possible times at which each stage of the project must be
completed. The earliest possible time (in green) are calculated by determining the earliest start times of all activities on the critical path before that
activity. The latest possible times (in blue) are calculated by adding all of the latest possible times of the activities before the critical path. In this CPM
chart, the critical path is A-B-C-D-E since that pathway takes the most time to complete of any of the other potential pathways available. The total float
time (lime green), or TF, represents the amount of time flexibility a task has between start and end times.
Wikimedia. CC BY-SA http://upload.wikimedia.org/wikipedia/commons/c/cd/SimpleAONwDrag3.png View on Boundless.com
Control
Oscillation and feedback

Output changes over time, creating room for error in the measurement process. Because there is necessarily a delay between measuring data,
analyzing the data and identifying a problem, and ultimately implementing a solution, solutions may be implemented after the problem is no longer
relevant (as shown in the graph—output is already improving before the solution for the prior dip in output is implemented). Timely discovery and
reporting of measurements helps minimize this problem of delay in information flow.
Wikipedia. "Oscillation and Feedback." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Control_(management) View on Boundless.com
Control
Internal control system

This flowchart illustrates how an internal control system can be integrated into the production process: mid-level managers of one department can
monitor and QA other departments' output.
Wikimedia. CC BY-SA http://upload.wikimedia.org/wikipedia/commons/6/66/Set-up-roles.png View on Boundless.com
Control
Example of management levels

The Government Business Reference Model shown here illustrates three levels of control: strategic (purpose), tactical (mechanisms), and operational
(operations support). Strategic control includes policy-forming and -enforcing bodies such as the Department of Homeland Security and law
enforcement; tactical control includes direct services such as financial assistance and credit and insurance companies; and operational control includes
oversight bodies, revenue collection, and resource allocation.
Wikimedia. "Government Business Reference Model." Public domain http://commons.wikimedia.org/wiki/File:Government_Business_Reference_Model.jpg View on
Boundless.com
Control
Example Budget Plan

Budget plans can be used to project incomes and expenses over the span of several months.
Wikimedia Commons. "Example Budget." CC BY-SA 3.0 https://commons.wikimedia.org/wiki/File:Budgetplanatm.JPG View on Boundless.com
Control
Budgeting Example
A budget is essential to tracking and controlling money that is coming in to and being spent on a project. This chart notes estimated receipts and
estimated payments, and at the end reflects the balance at the end of the month.
Google. " Google Image Result for http://www.foxstone.com.au/images/accounting/hires/A11_big.jpg." CC BY
http://www.google.com/imgres?num=10&um=1&hl=en&authuser=0&biw=1275&bih=639&tbm=isch&tbnid=muW-WOTrf-i-
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Control
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Control
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Bureaucratic and Quality Control Tools and Techniques

Financial and Project Management Tools of Control

Bureaucratic and Quality Control Tools and Techniques

Financial and Project Management Tools of Control

• ex-post Latin for "after the fact."

Auditing and Communicating to a Project Team

Units on a Tape Measure

The balanced scorecard

Example of the information feedback process

Delivering Quality Service

Operating margin formula

Oscillation and feedback

Internal control system

Example of management levels

Example Budget Plan

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• Wiktionary. "quality control." CC BY-SA 3.0 http://en.wiktionary.org/wiki/quality_control

• Wikipedia. "Productivity." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Productivity

• Wikipedia. "Inventory." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Inventory%23Business_inventory

• Wikipedia. "Gap Analysis." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Gap%20Analysis

• Wikipedia. "Internal control." CC BY-SA 3.0 http://en.wikipedia.org/wiki/Internal_control

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