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CONTROLLING
Overview of Control

Controlling is defined as a systematic effort to

set performance standards with planning
objectives.

Control Process

Establishes Standards of
Performance

Measures Performance

Take Corrective Action

Controlling * Property of STI

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Overview of Control

Types of Control

1. Pre-action Controls

2. Steering Controls

3. Screening Controls

4. Post Action Controls

Controlling * Property of STI

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Features of an Effective Control System

1. Accurate and adequate

2. Timely and relevant

3. Economically and organizationally realistic

o Objective, Measurable and Comprehensible

o Flexible and acceptable

Controlling * Property of STI

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Financial Controls

1. Financial Statements

o Balance Sheet

o Income Statement

2. Ratio Analysis

Profit after Taxes Current Assets

Total Assets Current Liabilities

Profitability Ratio Liquidity Ratio

Total Debts Sales

Total Assets Inventory

Leverage Ratio Activity Ratio

Controlling * Property of STI

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Financial Controls

3. Break-even Analysis
TR
Revenue Cost
PROFIT TC

BREAK-EVEN POINT
50

Fixed Cost
LOSS

Quantity
50

TR > TC = denotes PROFIT while;

TR < TC = denotes LOSS

4. Budgets

5. Audits

Controlling * Property of STI

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 Production Control

Controlling
1. GANNT Chart (Henry Gannt)

Gantt Chart Diagram used for Automobile Production

* Property of STI
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Production Control

2. Network Techniques

a. PERT

Involves 4 categories:
o Optimistic (OT)

o Most probable ( MPT)

o Pessimistic (PT)

o Expected (ET)

Controlling * Property of STI

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Production Control

b. CPM (Critical Path Method)

3. Quality Control

Methods Used:

o Inspection

o Testing

o Sampling Techniques

Controlling * Property of STI

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