BUSINESS ASSIGNMENT

Business Assignment

Business Assignment

The first email is from Andrew, the president of a new division that has been started in the south-east to manufacture customized electrical components. After the first two months he feels that his sales cost are out of control.

Reply

It feels nice to see your mail this morning. Hope that all activities are going well. You have integrated and set a better standard of work or our organization. However, regarding your issue, I would like to suggest you to implant a control system. This control system must be an automated ne which would help you to estimate and project the budgeting figures for customized periods.

The automatic control of a given system (a motor, an industrial plant, a biological function such as heartbeat) seeks to change the behavior of the system to be controlled (or its outputs) through the manipulation of the input quantities. The control system under consideration is assigned to another system purpose-built, said parent system or controller, which is designed after a preliminary study of the system to be monitored to identify the exact mathematical model, using the tools developed by systems theory. The automatic control system is possible only to the extent that the system itself is reachable and observable , i.e., to the extent that you can take in a given internal state acting on its inputs, and trace the current state of the system based on its outputs . (Gossett, 2006)

The control works in all areas and at all levels of an enterprise. Virtually all activities of a company are under some form of control or monitoring. Preferably control system must cover the basic functions and key result areas as:

Control of sales: The forecasts and estimates sales are essential for the establishment of this control. The function of this system is used to measure the performance of the strength of sales compared with sales forecast and take appropriate corrective action.

Control of finances: Provides information about the company's financial situation and performance in monetary terms of resources, departments and activities within it.

The system of control works as per following guidelines:

Setting Standards

A standard can be defined as a unit of measure that serves as a model, guide or pattern based on which control is affected. Standards are criteria against which performance can be measured; represent the expression of the goals of planning for the company or department in such terms that the real accomplishment of the duties assigned can be measured against them. Standards can be physical and to represent quantities of products, units of service, hours- man, speed, volume of rejection, etc., or may be provided for in monetary terms as costs, income or investments, or other terms of measurement. Measuring Results

If the control is set properly and if there are means available for determine exactly what subordinates are doing, a comparison of performance with the expected real easy. But there are activities that are difficult to establish control standards for what is difficult to ...