Here, we’ll look at some of the factors that support effective control.
Use of critical control points
These are the points where personal control (decisions) have to happen. They should be built into plans and procedures.
example
The decision about which supplier to buy from after accepting offers or tenders is a critical control point. Another is when to hire more, or fewer, staff.
Use of relevant data and techniques
Accounting systems can be set up to make regular calculations and warn managers when there is a problem. Non-accounting data can be collected and used in a similar way. For example, quality management measures quality variations. If this is computerised, the significance of variations will be automatically calculated.
Use of information technology
The use of computers in all areas of business, but especially in the fields of accounting and quality control data, makes a huge impact on the effective running of a business. Computers simplify control.
Quality systems
These are used to achieve or maintain standards of performance. Quality control is often used in manufacturing, but it is also used in service industries such as banks and schools.
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