1. Control Systems Lecture #19

2. Control Systems Control: Process of ensuring that the organization is attaining its goals

3. Control Process Establish Performance Standards Measure Performance Compare Performance to Standards Corrective Action

4. Establish Performance Standards What level of performance are we requiring? Who sets the standards?

5. Measure Performance Accurate measure of performance When is performance measured? Who measures performance?

6. Compare Performance to Standards If performance matches standards: OK If performance is above standards: MAYBE things are okay If performance is below standards: Corrective Action

7. Corrective Action The purpose of corrective action is to get performance up to standard, not to punish people

8. Control System Example

9. Types of Standards

10. Physical Standards 240 bottles/minute

11. Cost Standards Operating Costs unit cost machine hour cost

12. Capital Standards Inve$tment Cost

13. Revenue Standards Sale$, Profit$

14. Program Standards Deadlines

15. Program Standards Deadlines

16. Intangible Standards Reputation Goodwill