Management By Exception Provision of information to management in which only significant deviations from budgets or plans are reviewed as the basis for corrective action.(always pointing out what has not been done)
Management By ObjectivesA system of management based on the overall objectives of the company in which targets are set and key results areas identified for individual managers as a basis for greater efficiency and increased motivation. Often linked with Budgetary Control.
Budgetary Control A means of controlling the activities of a company by forecasting the level of each activity and converting these estimates into monetary values. Actual costs are compared with these figures periodically showing a positive or negative variance. Make a plan. Measure performance. Compare actual with estimates. Reveal variances. Take action (if necessary).
Organisation Chart A graphic representation of the formal relationships and inter-relationships within an organisation, showing lines of authority and responsibility also the channels established for communication and co-ordination.
Staff Appraisal The assessment of performance and progress in the exercise of a given responsibility over a set period. A means of feedback giving control and correction.
Activity Sampling Rather than record everything a man or machine does throughout the day it is possible to make an accurate estimate of how he spends his time, breakdown rates, etc. by making observations at random intervals of time. The same principle of random information can be used to sample accounting information for checking invoices etc.
Brainstorming A group of people, not necessarily all from the marketing department, get together to answer a question such as "In how many ways can we improve our product (or packaging of our service)?" If suggestions, however wild, are vigorously encouraged and all criticism of them is banned - this is vital - a large number of ideas, some of them entirely new, are often created. They are evaluated rationally after the brainstorming session.
Break Even Analysis A method of examining the relationships between sales revenue, fixed costs and variable costs to determine the minimum volume of production necessary to break even. Often shown by graphical representation as a Break Even Chart.
Critical Path Method A technique for planning complex projects. The approach involves: breaking down the project into a set of individual jobs arranging these into a logical network according to the sequence in which they must be performed estimating the duration of each job examining the network to find out which jobs determine the time to complete the whole project. this is the critical path. Activities that lie on the critical path are the ones that really matter and to which the project manager should give his greatest attention. critical path method is one variant of a group of techniques collectively known as network analysis which also include Programme Evaluation and Review Technique and Critical Path Analysis.
Cost benefit Analysis A comparison between the cost of providing a service or activity and the value or effects resulting in financial and social terms.
Decision Tree A method of displaying the effects of a decision as a branching tree diagram in which the probabilities of outcomes of each decision are shown to help evaluate the best immediate choice. In some respects this is a form of Algorithm.
Ergonomics This is the study of the physical relationship between man and machine and is used to decide such things as the best shape for a typist's chair, the least fatiguing position for a steering wheel, the best angle for accurate reading of control instruments by process operators, etc.
Method Study This is part of the technique known as Work Study. By systematically studying any job - from packing eggs to building an office block - it is possible to improve the way it is done and in Method Study the accent is on the word systematic. An analysis is made of the product itself to see if any parts can be eliminated or redesigned, the method of assembly is studied, the flow of work through the factory, the activities of people and groups of people.Method study depends heavily on the ability to measure the time it takes to perform each job or part of a job - this is known as Work Measurement.
Organisation And MethodsO & M is the study of organisation and of the clerical (in the broadest sense) methods used in a business. It is much wider than work study in the office for it is concerned with such questions as who should receive what information as well as office equipment, printing, duplicating, typing, office layout etc.
Value Analysis By carefully analysing what each part of a product is for, why it is that shape, why of that material, etc. it is often possible to simplify the product, reduce its cost, improve its appearance or efficiency.Brainstorming is often used in association with value analysis.
Variety Reduction For many companies it will be found that 80% of the profits come from only 20% of the products and a detailed analysis of the cost of maintaining a large range of products can point to improved profits.
Work Measurement The application of techniques designed to establish the time for a qualified worker to carry out a specified job at a defined standard of performance. It is concerned with the investigation and reduction of ineffective time.
Work Study A term used to embrace the techniques of Method Study and Work measurement which are employed to ensure the best possible use of human and material resources in carrying out a specific task.