Strategic Management: Formulation and Implementation

Production Measures

There are three categories of control standards and measures:

* Precontrol (of inputs) focuses on predetermining standards and measures for the quantity and quality of resources inputs (labour resources, capital resources and materials).

* Concurrent control relates to how much and when outputs will be produced and is typically termed production scheduling. Popular tools for production scheduling include various network models such as the Program Evaluation and Review Technique (Pert) and linear programming models.

* Postcontrol focuses on actually analyzing the output. Two techniques are widely used postcontrol. First, standard cost analysis involves estimating and combining the direct labour, direct materials, and overhead costs to find actual per unity costs. Second, statistical quality control focus on detecting low-quality or defective output.

Policies And Procedures

Policies and procedures are the rules and regulations that prescribe correct behaviour. Managers use these to bring activities back in line. In many organizations these are referred to as standard operating procedures.