priciple of management

8/2/2019 Priciple of Management

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g) Finding of alternativesource of supply:

If a particular supplierfails to supply the

materialsin time, it ispossible to develop

alternate sources of supply.the effect of this is that

theproduction work is notdisturbed.h) Fixing

responsibilities:Effective purchase controlfix the responsibilities of

operating unitsand


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individuals connected with

the purchase, storage andhandling of materials.Inshort, the basic objective of

the effective purchase

control is to ensurecontinuity of supply

of requisite quantity of

material, to avoid held up ofproduction and loss in

production and at thesametime reduces the ultimate

cost of the finishedproducts.


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MAINTENANCE

CONTROLMaintenance departmenthas to excercise effective

cost control, to carry outthemaintenance functionsin a pre-specified budget,

which is possible onlythrough the

followingmeasures:First linesupervisors must be

apprised of the costinformation of the various

materials so thattheobjective of the


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management can be met

without extra expenditureon maintenancefunctionsAmonthly review of thebudget provisions and

expenditures actuallyincurred in respect ofeachcenter/shop will

provide guidlines to thedepartmental head toexercise better cost

control.The totalexpenditure to be incurredcan be uniformly spreadover the year for better

budgetarycontrol. however,


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the same may not be true

in all cases particularlywhere overhaulingof equipment has to be

carried out due to

unforseen breakdowns.some budgetary provisionsmustbe set aside, to meet

out unforeseenexigencies.The controllableelements of cost such as

manpower cost andmaterial cost can bediscussedwith the

concerned personnel,

which may help in reducing


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the total cost of

maintenance.Emphasisshould be given to reducethe overhead expenditures,

as other expenditures

cannotbe compromised.It isobserved through studiesthat the manpower cost is

normally fixed, but thesame wayincrease due to

overtime cost. however, thematerial cost, which is the

prime factor inmaintenancecost, can be reduced by

timely inspections


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designed, to detect failures.

If theinspection is carried out as

per schedule, the total

failure of parts may beavoided, whichotherwise

would increase themaintenance cost. theproper handling of the

equipment by theoperatorsalso reduces the frequency

of repair and materialrequirements. Operators,whocheck their equipment

regularly and use it within


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the operating limits, can

help avoid manyunwantedrepairs. In the same way agood record of equipment

failures/ maintenance

wouldindicate the nature offailures, which can then be

corrected even

permanently.QUALITY CONTROLQuality control refers to the

technical process thatgathers, examines, analyze& reportthe progress of theproject & conformance with


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the performance

requirementsThe steps involved inquality control process

are

1) Determinewhat parameter

is to be controlled.2) Establi

sh its criticality and whetheryou need to control before,

during or after resultsareproduced.3) Establish a

specification for theparameter to be controlled

which provides limits

of acceptability and units of


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measure.4) Produce plans

for control which specify themeans by whichthe characteristics will

beachieved and variation

detected andremoved.5) Organize

resources to implement

the plans for qualitycontrol.6) Install a sensor atan appropriate point in theprocess to sense variancefromspecification.7) Collectand transmit data to a place

for analysis.8) Verify

the results and diagnose


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the cause

of variance.9) Proposeremedies and decide onthe action needed

to restore the status

quo.10) Take the agreedaction and check that the

variance has been

corrected.Advantages anddisadvantages

Advantages include betterproducts and services

ultimately establishing a

goodreputation for a


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company and higher

revenue from having moresatisfied customers.

Disadvantages include

needing more manpower/operations to

maintain quality controland

adding more time to theinitial process.

PLANNING

OPERATIONSAn

operational planning


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is a subset of strategic work

plan. It describes short-termwaysof achievingmilestones and explainshow, or what portion of, a

strategic plan will be putintooperation during a given

operational period, in the

case of commercialapplication, a fiscal year oranother given budgetary

term. An operational plan isthe basis for, and

justification of anannualoperating budget request.

Therefore, a five-year


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strategic plan would need

fiveoperational plansfunded by five operatingbudgets.Operational plans

should establish the

activities and budgets foreach part of the

organizationfor the next 1

3 years. They link thestrategic plan with the

activities the organizationwilldeliver and the

resources required todeliver them.An operational

plan draws directly from

agency and program


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strategic plans to describe

agencyand programmissions and goals,program objectives, andprogram activities. Like a

strategicplan, anoperational plan addresses

four questions:

Where are we now?

Where do we want to be?

How do we get there?


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How do we measure our

progress?The OP is boththe first and the last step inpreparing an operatingbudget request. As the

firststep, the OP provides aplan for resource allocation;

as the last step, the OP

may be modified toreflectpolicy decisions or financialchanges made during the

budget developmentprocess.Operational plansshould be prepared by thepeople who will be involved

in implementation.There is


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often a need for significant

cross-departmentaldialogue as plans createdby one part of the

organization inevitably have

implications for otherparts.Operational plans

should contain:

clear objectives

activities to be delivered

quality standards


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desired outcomes

staffing and resourcerequirements

implementation timetables

a process for monitoringprogress.

priciple of management

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