Principles Of Management Clep--Ic Part 6

Front 1

Controlling

Back 1

the management function which deals with performance--making sure that the performance of the organization is satisfactory, and if not, correcting it

Front 2

three steps to the control process--

Back 2

establish performance standards, measure performance, and produce feedback for corrective action or reinforcement.

Front 3

Feedback

Back 3

a type of control which measures performance effectiveness after the results have been attained

Front 4

exception principle

Back 4

similar to management by exception and states that routine problems should be handled at lower levels of management, and the exceptions should be passed to the higher levels. If the problem is routine, as in there is a policy or procedure for handling such a problem, then it should be dealt with at the lower levels of the organization. Exceptions are then handled by the higher levels.

Front 5

Concurrent controls

Back 5

are actions taken while work is going on to make sure everything is going according to plan

Direct supervision is an example of concurrent control.

Front 6

Pre-controls

Back 6

actions taken before the work is done

exp-training

Front 7

post-controls

Back 7

taken after the work is done.

example-feedback

Front 8

Periodic controls

Back 8

measurements of performance taken at regular, specified time intervals

example, quarterly evaluations

Front 9

occasional controls

Back 9

which occur from time to time

Front 10

constant controls

Back 10

controls which are always in place.

Front 11

Internal controls

Back 11

self-control, where the person or group tries to control its performance to meet standards

Front 12

external controls

Back 12

where someone else is trying to keep you in line with performance standards.

Front 13

Planning tools

Back 13

often work as control tools, as well. Tools used for the Planning function of the management process are often equally valuable for the Control function. For instance, a PERT chart can be used not only to plan the activities, but it can later be used to determine how well the organization is meeting its goals for that plan.

Front 14

Inventory control

Back 14

making sure that inventory use and costs are according to plan.

Front 15

Safety stock

Back 15

inventory kept on hand so that the organization's activities can go on despite unexpected contingencies

Front 16

Economic order quantity (EOQ)

Back 16

amount which should be purchased in order to keep the total inventory costs at a minimum

the lowest total inventory cost

adding the ordering cost (cost of purchasing the materials for the inventory), and carrying cost (cost of keeping the inventory on hand).

ordering costs decrease as the size of the order increases, but carrying costs increase with the size of the order. The carrying costs increase, because the more inventory you have to keep on hand, the more expensive it is. On the other hand, the more you order at once, the more economical the ordering cost is.

Front 17

Just-in-time inventory system

Back 17

scheduling materials to arrive just as they are needed, so that little or no inventory is necessary.

The goal is to maintain Zero Inventory, so that all the carrying costs (the costs of keeping an inventory) fall on the supplier.

This method was developed by the Japanese.

Front 18

Acceptance sampling

Back 18

a sample of the products produced by a business are inspected, and a certain percentage of the sample must meet standards for the batch to be approved.

a way to ensure quality products.

It would be impractical to inspect every product produced, so a small percentage of each batch is inspected and that sample determines the fate of the rest of the batch.

Front 19

Kepner-Tregoe method of problem analysis

Back 19

first, most important step-identify the problem

Front 20

budget

Back 20

a plan for the use of an organization's resources, often in monetary terms.

Front 21

capital budget

Back 21

the budget for purchasing equipment and facilities.

Front 22

operating budget

Back 22

covers non-capital spending plans, such as expenses for labor, materials, etc..

Front 23

Zero-based budgeting

Back 23

the budget for an organization's program is calculated "from scratch," not based on previous expense needs for that program.

requires that every aspect of the budget be justified and accounted for by taking into account goals, activities, and the resources needed, and calculating how much that should cost

Front 24

Henry Gantt

Back 24

developed the Gantt chart

Front 25

developed the Gantt chart

Back 25

which breaks a project down into its activities and shows the estimated time requirements for the individual activities.

Front 26

PERT network

Back 26

program evaluation and review technique)

network breaks down a project into its activities and displays the sequence of activities and events as a network. Timing and sequencing are the two primary concerns of this chart

Front 27

Critical Path method (CPM)

Back 27

variant of the PERT method, but tends to emphasize cost as well as time.

involves a PERT chart, and many consider the two virtually identical. However, CPM assumes previous experience with the work involved and often includes cost estimates as well as timing.

Front 28

arrows

Back 28

activities

Front 29

nodes

Back 29

events-start and end

Front 30

critical path (PERT)

Back 30

he sequence of activities which is the longest in terms of total time.

Front 31

Operations research

Back 31

refers to several management science tools used for making operating decisions, and includes stimulation, queuing theory, linear programming, and probability analysis. Operations research was developed during World War II.

Front 32

Linear programming

Back 32

an operations research technique that is used to solve optimization problems,Linear programming allows a systematic comparison of the choices to find the best one.

Front 33

Queuing theory
waiting-line theory

Back 33

an operations research technique for balancing the cost of the service provided and the availability of service. An example would be in a supermarket, determining the number of cashiers to have working at a certain time, versus how long the customer lines will get, and figuring out the best balance

Front 34

Statistical process control (SPC)

Back 34

where a sample of a production process is checked, and if the sample values fall within the upper and lower control limits, the process is in control.

process for consistently and predictably producing parts within three standard deviations of the average

-verifying that the sample falls between the UCL and LCL (upper and lower control limit).

Front 35

Walter Shewhart 1931

Back 35

Statistical Process Control
book Economic Control of Quality in Manufactured Products.

Front 36

Quality control

Back 36

involves making sure that the finished products or services meet the expectations of clients and consumers.

making sure that the products are defect-free, production processes are reliable, etc..

Front 37

Quality circles

Back 37

small voluntary groups of workers who work with a supervisor to identify problems and propose solutions to them. These are known as quality circles and were developed by the Japanese and increase worker involvement.

Front 38

MIS (management information system)

Back 38

a system for gathering and processing information so that timely and relevant intelligence can be provided to managers.

tries to efficiently get information to managers so that they can make efficient decisions.

Front 39

Information processing

Back 39

raw data is converted into useful information so that managers can make effective decisions. Information Processing is a part of an MIS (management information system) and turns data (statistics, transactions, events) into information useful in making managerial decisions.

Front 40

Valence

Back 40

refers to the value the individual personally places on a reward. Examples are, how much an individual values a pay raise, or a promotion. If the individual highly values the raise or promotion, he is said to have high valence for that reward

Front 41

routine decisions

Back 41

also known as programmed or structured decisions. These are decisions which are usually made by lower levels of management--they are routinely made, and the information needs are known.

Front 42

Decision support systems (DSS)

Back 42

provide information for making unstructured decisions. Decision support systems (DSS) aim to provide information in a timely manner for unstructured decisions, also known as non-routine or unprogrammed decisions. These are decisions where the manager does not known exactly what to do or what info he will need.

Front 43

W. Edward Deming

Back 43

associated with the use of statistical process control and Quality Circles.

influenced Japanese industry in the use of statistical process control and Quality Control Circles. His approach to statistical process control states that if the manufacturing process is in control, then the product does not have to be inspected