Ppm Assign

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Techniques of control Traditional technique

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Techniques of control

Traditional technique

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INTRODUCTION

1. To enable managers effectively controlthe organizational activities, a largenumber of controlling techniques are

available.

2. A manager should know thesetechniques and in which situation it

should be applied.

3. There are two types of techniques ofcontrolling.

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Traditional techniques

Modern technique

What is traditional technique ?These techniques of control are beingused by managers since long time &

there foreKnown as traditional techniques.

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TRADITIONAL TECHNIQUES

1. Personal observation

2. Budgeting

3. Break-even analysis4. Financial statement

5. Statistical data & report

6. Quality control

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PERSONAL OBSERVATION

This is the most traditional method ofcontrol.

It helps managers to collect first handinformation.

It also creates a psychological pressure onthe employees to perform well as they areaware that they are being observedpersonally on their job.

How ever it is very time consuming , & not

suitable for all kinds of jobs.

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BUDGETING

Meaning- A budget is a statement which reflects future

incomes ,expenditures & profits of the firm.

Benefit of budgeting-1. Standards of performance

2. Planning

3. Predicting the future4. Financial planning

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BREAK EVEN ANALYSIS

It deals with the study of the relationshipbetween costs,volume, & profit.

It determines the probable profit and

losses at different levels of activity. The sales volume at which there is no

profit,no loss is known as breakeven point.

It can be calculated as , Breakeven point=fixed cost/selling price

per unit – variable cost per unit.

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FINANCIAL STATEMENT

Financial statements shows financial positionof a firm over a period of time,generally oneyear.

These are prepared along with last yearstatements, so that firm can compare itspresent performance with last year’sperformance & improve its future performance.

It offers information on ,1. Liquidity

2. Financial strength

3. profitability

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STATISTICAL DATA &REPORT

Statistical analysis in the form ofaverages,percentages,ratios,..etc.

Data can be used for diagramaticrepresentations like histograms, pie chart,bar graphs..etc.

A Reportis a statement that represents

data in the form of information for carryingout the controlling function.

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QUALITY CONTROL

Quality control uses operational techniquesand activities to sustain quality of the productor service to satisfy customer needs

It is the traditional way to manage quality There are three stages during the process

when inspection is performed-1. When raw material is received.2. When raw material goes through the

production process3. When products are finished-testing takes place

before products are dispatched to customers.

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Thank you

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