3: Fine Tuning Your Control System

Control

Getting the results yoy expect. Control increases the probability of meeting project objectives and having and operation that is stable and effective.

Control Benefits

1. Assess productivity

2. Detect early warning signals

3. Assesses risk

4. Enacts reality checks

5. Determined ownership and teamwork

6. Facilitates learning

Control guideline

Focus on the vital few and not the trivial many

Secret to using control

Create a balance between over controlling and under controlling

Too much control can

Suppress ideas

Too little control can

Result in undesirable consequences as in too much power going to the wrong place at the wrong time

Finding a good balance of control for you and your team can result in

Better relationships and trust among the team

Situational leadership

Flexible way or working with people and enabling control. People with high readiness require little or no oversight while those with low readiness require just the opposite. This type of leadership uses the word “readiness” to describe an individuals capability to complete tasks.

Reliable

Data must be stable so that you trust it 100% of the time. The process used to produce data needs to be trustworthy.

Prompt

Information must be available in a timely manner. Collect and analyze data in time to generate improvements.

Legitimate

Demand data that is unbiased and understandable.

Focused

Avoid irrelevant data. Use information that is targeted at areas where problems are most likely to occur

Cost effective

Compare the cost of o training and using data to the benefit of taking control and solving a problem. Make sure the benefits exceed the costs

Compatible

Control measures must be compatible with the way the company operates. It should be a natural part of your operation and fit with the values of organization. Must be acceptable to members of your organization

Adaptable

Must be flexible so that it can adapt to changes such as reorganizations, new product lines, new markets.

Effective control systems

Have these characteristics: Reliable, prompt, legitimate, focused, cost-effective, compatible, and adaptable

Measurement methods

Determine how you will know if processes are I. Control by identifying sources for your measurement standards: historical, external, or engineered standards

Historical standards

Based on past performance

External standards

Provided by other organizations ( ex. Industry associations)

Engineered standards

Set by internal analysis of what is capable. Time studies are excellent sources of engineered standards

Measurement frequency and magnitude

Determine the number of measurements you take and how often you take them.

Authority

Identify who takes measurement, who reviews data and who takes action.

Feedback

As you discover and resolve problems, determine the flow of information. Decide who needs to be notified about problems and solutions.

Mechanics of a Control System

1. Measurement methods

2. Measurement frequency and magnitude

3. Authority

4. Feedback

Prerequisites for control

1. Develop a plan- plan must exist with SMART objectives that are clear and complete

2. Specify organizational responsibility- specify who is responsible for monitoring and detecting differences from the plan and who is responsible for minimizing differences (taking corrective action)

3. Be objective and flexible- make sure standards are objective , accurate and suitable. Make sure to update controls in light of changed plans and unforeseen circumstances.

7 step control process

1. identify characteristics

2. Set a standard

3. Collect information

4. Measure performance

5. Compare results

6. Take corrective action

7. Review actions taken

Problems with control process

1. Standards may be difficult to develop

2. Measurements may be difficult

3. Standards may measure the wrong activity

4. Standards may sacrifice the long run for the short run

5. Reporting may be biased

Feedback control

Focus on end results. Occurs after the fact, meaning it occurs after something has happened. Least preferred because undesired events have already taken place.

Screening Control

Takes place when a process in about to occur. Concurrent control. Monitor as it’s happening.

Feedforward control (preliminary control)

identifies undesirable events before they happen. Brings to light what problems will happen if corrective action is not taken now.

Feed forward control cycle

1. Identify all relevant input variables (time, volume, and money

2. Have a dynamic model representing the actual process and keep it updated

3. Collect data and enter it into the system

4. Perform regular assessment of projected variations from the plan

5. Take action before a problem occurs

Types of Control

1. Feedback

2. Screening

3. Feedforward

Control Techniques

1. Budgets

2. Charts

3. Audits