Operations control and performance measurement

Introduction

Control is an adequate system that will take us by the hand to success by eliminating uncertainty and working on the basis of controllable facts, where each element knows where, when and what it must always do. The control management function is:

Measurement Correction

This function gives effective results according to the leadership of each administrator from all hierarchies, regardless of ranges or levels = Results achieved.

Today, large organizations have been successful based on absolute control of their operations designs, finding the exact point for this depends on creativity. Maintaining this success and achieving balance for decades is the result of good control. According. (Bgm1977).

Development

Operations control

The administrative control function is the measurement and correction of performance in order to guarantee compliance with the company's objectives and the plans devised to achieve them. It is a function of every administrator, from the president to the supervisors of a company.

The techniques and control systems are basically the same as those of the object of control. Wherever you are found and whatever the object of control, the basic process of control involves three important steps:

Setting standards Performance measures based on those standards Correcting variations in standards and plans.

There are several regulations, although deviations in critical points such as: physical regulations, cost regulations, capital regulations, income regulations, program regulations, intangible regulations, goals with regulations and strategic plans must be pointed out. with strategic control points.

The method of setting goals and measures of productivity based on industry practices so-called benchmarking in the country of the United States.

There are three types of strategic, operational and administrative benchmarking.

Administrative control is often perceived as a simple but complex feedback system. However, no matter how quickly information is available about what happens and even information in real time, there are inevitable delays in the analysis of deviations, development of plans for the implementation of corrective actions and implementation of these programs. To combat these control lags, it has been proposed that managers employ an early correction control method and not rely solely on simple feedback.

Performance measurement

Control with early correction requires the design of a model of a process or system and the monitoring of inputs with the operation of detecting future deviations in the results with respect to standards and plans. So that administrators have time to take corrective actions.

The requirements of a functional control system with early correction are:

Carrying out an exhaustive and careful analysis of the planning and control system, and identifying the important input variables. Elaboration of a system model. Permanent updating of the model; in other words, the model should be regularly reviewed to check if the identified input variables and their interrelationships are still representative of reality. Regular collection of data on input variables, and integration of data into the system. Regular assessment of variations in the data of the real inputs with respect to the planned inputs, as well as evaluation of the impact on the desired final result. Carrying out actions. As with any planning and control technique, all the system can do is indicate problems; obviously,it is up to individuals to take action to resolve them.

For controls to be functional, they must be specially adjusted to:

Plans and positions Administrators in the individual Needs for efficiency and effectiveness

To be effective, controls must also be designed to indicate exceptions at critical points, be objective, be flexible, adapt to the organizational culture, be economical and indicate corrective actions

Description according to levels

Control is exercised at all levels of organizations; from the higher or hierarchical levels, to the lower or operational levels.

Control in modern organizations: In the information technology paradigm, where organizations must be able to adapt quickly to changes in the environment, organizations have emerged that are different from the classic hierarchical and rigid organizations. In organizations with organic structures or those with fewer formal rules, control continues to be exercised, although it is usually exercised in a less rigid or formal way. Some causes of this phenomenon are the negative impact that strict control can have on the performance of the personnel of this type of organization and the impossibility of controlling certain activities due to their changing nature or because their performance cannot be measured objectively, for example because they cannot be standardized.

It is important to correctly choose the characteristic to be measured or enumerated, taking into account not only the cost and the possibility of measuring it, but also its importance for the objectives and the possibility of taking corrective measures. After a measure of the chosen characteristics or conditions has been obtained, they should be compared with some standard or norm. Usually these standards or norms were previously established in the planning process. If there is a difference between standard or norm (expected performance) and measurement (observed performance), corrective action may be required.

Control as such is a key function to ensure the achievement of the objectives through the suggested plan, it is therefore a tool that seeks to ensure that things work according to the proposed plan by implementing the preventive and corrective actions that are necessary. In this way, the planning and control of the company's operations are decisive in the future of today's organizations since they determine the guidelines to be followed so that the company can operate in changing situations through strategic planning and in turn control not to deviate from the vision towards which you want to go.

Advantage

Control tools facilitate organizational management, indicate when the plan is not being met, and even determine the reasons why the objective is not being achieved.

Just as the objectives are set for each of the internal processes, strategies and other aspects, it is important to establish how the control of all the company's operations will be in such a way as to ensure compliance.

This originates the different forms of control that the organization uses. For example, in financial activity, the best known way to control management is the budget, since its objective is to program how much it will enter the company during a period and the product of which operations will be achieved. In the same way, it indicates how much it is necessary to invest to achieve the desired objectives.

This must be detailed and specific, taking into account, of course, possible variations depending on the economic, political and social environment in which the company operates.

For operations related to the commercial management of the company, control is used based on the results achieved during the process, in this form of control the management is not evaluated, as well as the results achieved from the implementation of the strategy, identifying its causes and effects.

conclusion

These types of control are very normal within the company and are based on achievements, but in order to establish it, the importance of making commitments between the company and the employee and vice versa must be taken into account so that the latter sees the cost relationship. benefit around you. This same tool can be used to evaluate the performance of all employees in the company, even if they carry out other different operations. Establishing commitments taking into account that the necessary tools are provided to achieve the objectives and that also their achievement will clearly benefit the employee and the company, is vital in an exchange relationship. In production operations, another type of control can be glimpsed, which takes into account not only the result, performance,but also the resources used and the expenses generated during the process.