Non budgetary control techniques

This presentation discusses about non budgetary control techniques in Principles of Management

1. NON –BUDGETARY CONTROL
TECHNIQUES
R.Arun Kumar, AP/Mech, RIT

2. NON–BUDGETARY CONTROL :
Controlovertheorganizationotherthanthefinancialresources
arecalledasnon–budgetarycontroltechniques.
Nonbudgetarycontroltechniquesareclassifiedinto:
Traditionaltechniques
Moderntechniques
R.Arun Kumar, AP/Mech, RIT

3. 1.Traditionaltechniques:
1a.Statisticaldataandchart:
R.Arun Kumar, AP/Mech, RIT

4. 1.Traditionaltechniques:
1a.Statisticaldataandchart:
R.Arun Kumar, AP/Mech, RIT

5. 1.Traditionaltechniques:
1a.Statisticaldataandchart:
R.Arun Kumar, AP/Mech, RIT

6. 1.Traditionaltechniques:
1b.Personalobservation:
R.Arun Kumar, AP/Mech, RIT

7. 1.Traditionaltechniques:
1c.Operationalaudit:
R.Arun Kumar, AP/Mech, RIT

8. 1.Traditionaltechniques:
1d.Breakevenanalysis:
Usedtodeterminethepointatwhichallfixedcostshavebeen
recoveredandprofitabilitybegins.Costs Variable Unit-Price Unit
Costs Fixed Total
Breakeven:
R.Arun Kumar, AP/Mech, RIT

9. 1.Traditionaltechniques:
1e.Specialreports:
R.Arun Kumar, AP/Mech, RIT

10. 1.Traditionaltechniques:
1f.Responsibilityaccounting:
Onthebasisofachievementemployeewillberewarded.
R.Arun Kumar, AP/Mech, RIT

11. 1.Traditionaltechniques:
1g.Balancedscorecard:
Balancedscorecardincludesthedetailsof
1.Financialexpenditure
2.Customerneedsandsatisfaction
3.Internalprocess
4.People/employee’sgrowth
R.Arun Kumar, AP/Mech, RIT

12. 1.Traditionaltechniques:
1g.Balancedscorecard:
R.Arun Kumar, AP/Mech, RIT

13. 1.Traditionaltechniques:
1g.Balancedscorecard:
R.Arun Kumar, AP/Mech, RIT

14. 2.Moderntechniques:
2a.Linearprogramming:
Helpsinselectingwhichisthemostsuitableoroptimistic
methodtofindthesolution.
R.Arun Kumar, AP/Mech, RIT

15. 2.Moderntechniques:
2b.PERT:
Aflowchartdiagramthatdepictsthesequenceofactivities
neededtocompleteaprojectandthetimeorcostsassociated
witheachactivity.
Tounderstandthisonemustknowthefollowingterms:
1.Events:endpoints for completion.
2.Activities: time required for each activity.
3.Slack time:Time an individual activity can be delayed.
4.Critical path:Most time consuming sequence of events.
R.Arun Kumar, AP/Mech, RIT

16. 2.Moderntechniques:
2b.PERT:
StepsinPERTAnalysis:
1.Identifyeverysignificantactivitythatmustbeachievedfora
projecttobecompleted.
2.Determinetheorderinwhichtheseeventsmustbecompleted.
3.Diagramtheflowofactivitiesfromstarttofinish
4.Computeatimeestimateforcompletingeachactivity.
5.Determineascheduleforthestartandfinishdatesofeach
activityandforheentireproject.
R.Arun Kumar, AP/Mech, RIT

17. 2.Moderntechniques:
2b.PERT:
R.Arun Kumar, AP/Mech, RIT

18. 2.Moderntechniques:
2c.Criticalpathmethod:
R.Arun Kumar, AP/Mech, RIT

19. 2.Moderntechniques:
2d.GanttChart:
R.Arun Kumar, AP/Mech, RIT

20. 2.Moderntechniques:
2e.LoadChart:
R.Arun Kumar, AP/Mech, RIT

21. 2.Moderntechniques:
2f.Benchmarking:
R.Arun Kumar, AP/Mech, RIT