An approach to management control by application of the principle of management by exception. - Page 80 |
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73
! excessive consideration in overcoming potential delays in j
^receipt of material may develop increments of inefficiency !
|which will be more costly than excessive delay. Representative
examples of over-precautions are (1) excessive supply
stocks requiring increased capital to support inventory,
(2) high ratio of obsolete items and materials, and (3)
lethargy on the part of personnel who support the organisation
in these functions.
Objectives. The objective established for this
organisational area commonly has been that of best relative
cost, minimal delay in receipt of items or materials that j
are not of a critical nature, and procurements which do notl
create excesses of high-value items. An extension of the
objective in development of a goal or goals has then led
to a point where progressive evaluation of the following
specific points takes places jI
i i ! 1. Selection of strategic points. An examination
of procedures and consultation with subordinates
will indicate the point where rate of delinquency
in receipt is known. A further factor
needing consideration at this time is that of
the predominate approach being used for evaluation,
i.e., conformance, economy, or timeliness.j
! Assuming that cost, degree of delinquency,
and timeliness are the primary factors under
v
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| Title | An approach to management control by application of the principle of management by exception. - Page 80 |
| Repository email | cisadmin@lib.usc.edu |
| Full text | 73 ! excessive consideration in overcoming potential delays in j ^receipt of material may develop increments of inefficiency ! |which will be more costly than excessive delay. Representative examples of over-precautions are (1) excessive supply stocks requiring increased capital to support inventory, (2) high ratio of obsolete items and materials, and (3) lethargy on the part of personnel who support the organisation in these functions. Objectives. The objective established for this organisational area commonly has been that of best relative cost, minimal delay in receipt of items or materials that j are not of a critical nature, and procurements which do notl create excesses of high-value items. An extension of the objective in development of a goal or goals has then led to a point where progressive evaluation of the following specific points takes places jI i i ! 1. Selection of strategic points. An examination of procedures and consultation with subordinates will indicate the point where rate of delinquency in receipt is known. A further factor needing consideration at this time is that of the predominate approach being used for evaluation, i.e., conformance, economy, or timeliness.j ! Assuming that cost, degree of delinquency, and timeliness are the primary factors under v |
