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Unit 8: Controlling logistics activities - Coggle Diagram
Unit 8: Controlling logistics activities
Factors affecting the control process
Stability in pESTle,
Degree of uncertainty in operational environment
Level of focus required
impact cycle of decisions
Extent of impact of decisions on business
Characteristics of the control process, Aims of control systems(Csys):
Csys acts as trigger for management action, focus on important issues
Strategic control is a long-term in nature, with reviews of objectives taking place every 12-18 months,
results should be quantified so higher management level can evaluate if the proposed plan is viable.
Strategic Csys trigger entrepreneurial plans with managers being responsible for developing innovative plans with achieving the objectives of the organizations
Tactical control is aimed at improving short-term organizational performance
both controls are predictive in nature, wide in focus, consider future changes in cause-and-effect relationships, trigger entrepreneurial plans and include budgetary control
Technical control is aimed at performing according to standards
Actual current performance, trigger corrective actions, narrow focus
Tech control systems; yardstick, standards, range of satisfactory performance, frequency of measurement and reporting system
The planning and control cycle:
Cyclical process, the continual reviewing and revisiting plans, policies and operations,
reliant on info for control process
The concept of quality:
Closely related to customer service excellence,
unseen process with impact on customer satisfaction
give customers what they want at a price they will pay
consistent service/quality at contained costs
Examples of quality control systems: TQM, ISO 9000 and 6 sigma
TQM, the principles used to achieve continuous improvement in as organisation:
Quality principles,
customer focus and customer involvement
process-oriented
consistency of purpose
Act according to facts
Kaizen
Problem-solving discipline of TQM:
Define the problem
Identify possible causes and select root cause
Generate solutions
Plan and implement improvement
Measure for improvement
Process standardization
ISO(International Organization for Standardization): ISO;
Network of national standards institutes of 148 countries
consistent application of specifications and criteria
Facilitates trade and transfer of tech
Assurance about quality, safety and reliability
ISO9000:
Quality requirements in B2B dealings
ISO 9001: 2000-conformity assessment
Ensure consistency and regulatory compliance
Various requirements
Controlling: " incl. the monitoring and reviewing performance to ensure that the logistics process satisfies customers effectively; the organizations resources are deployed efficiently, and corrective action is taken when performance is not in line with goals and objectives
simple terms control is a continuous, dynamic process of management to achieve business's goals
Benchmarking: A form of comparative performance measurement that compares against industry competitors or best-in-class
Characteristics:
process of transformation
continuous improvement
products, service and processes
comparable, not identical
leading organization
Benchmarking partners:
internal
industry competitors
non-competitor organizations
other(incl. database, press articles, reverse engineering, etc.)
Conducting a benchmarking exercise:
Ensure management support and set objectives
Find a benchmarking partner
Assemble a benchmarking team
Measure and understand you own performance
Measure and understand partners performance
compare performance
Develop best practices
continue with benchmarking process
