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Ch 12 Management Activities 3: Controlling - Coggle Diagram
Ch 12 Management Activities 3: Controlling
Steps in Mgt Activity of Control
Set the Standard
Measure Performance
Compare performance with standard
Take corrective action(if needed)
Types of Mgt Control
1. Stock Contro
l
Types of Stock
Raw materials
Work in progress
Finished goods
Merchandise
Key terms in Stock Contro
l
Optimum stock level
Maximum stock level
Minimum stock level
Re-order level
Lead time
Methods of Managing Stock Levels
Manual stock take
2.Electronic Data Interchange (EDI)
Just in Time (JIT)
Benefits of Stock Control
Increased efficiency
Feedback
Reduced Costs
Theft
Effective Stock Control
Too much stock can lead to:
Lower profits
Obsolete Stock
Theft
Inefficient use of cash
Too little stock can lead to:
Loss of sales
Loss of economies of scale
Storage costs
Production delays
Types of Mgt Control
2. Quality Control
Purpose of Quality Control
Detect
Prevent
Correct
Improve
Achieving Quality Control
Inspections
Quality Circles
Quality Awards e.g. Bord Bia Quality Awards, ISO 9000 series, Q Mark
Benefits of Quality Awards
Consumer Trust
Marketing
Exports
Pricing
Total Quality Management (TQM)
Benefits of Quality Control
Customer Satisfaction
Quality Awards
Reduced Costs
Types of Mgt Control
3. Credit Control
A. Set Credit Limits
B. Check Customers' Creditworthiness
C. Efficient Administration
D. Debt Collection Procedure
Benefits of Credit Control
Lower risk of bankruptcy
Reduces bad debts
Increased sales and profits
Types of Mgt Control
4. Financial Control
Cash flow forecast
Ratio Analysis
Budget Allocation
The Importance of Financial Control
Business goals
Maximise resources
Employee Motivation
Increases sales and profits
Terms
Debtor
Bad Debts
Credit Controller
Liquidation
Bankruptcy
Economies of Scale