3.4.3 The Advanced and Quantitative Techniques and Devices:

a) Program Evaluation and Review Technique (PERT)

b) Control Through Return-on Investment (ROI)

c) Just-In-Time Inventory Control (JIT)

It is a technique for reducing inventories to a minimum by arranging for production components to be delivered to the production facility “just-in-time” to be used. JIT works best in companies that manufacture relatively standardized products for which there is consistent demand.

d)   Ratio Analysis

A ratio is a relationship between two numbers that is calculated by dividing one number into the other. Ratio analysis is the process of generating information that summarizes the financial position of an organization through the calculation of ratios based on various financial measures that appear on the organization’s balance sheet and income statements.

e)    Management by Objective and Appraisal by Results (MBO)

   In MBO, the manager assigns a specialized set of objectives and action plans to workers and then rewards those workers on the basis of how close they come to reaching their goals. This control technique has been implemented in corporations intent on using an employee-participative means to improve productivity.

f)     Decision Tree Analysis

It is a statistical and graphical multi phased decision making technique that can be used in controlling.

g)   Computer-Aided Design (CAD)

h)   Computer-Aided Manufacturing (CAM)

i)     Total Quality Management (TQM)

Refers to a quest in an organization, TQM expands the traditional view of quality–looking only at the quality of the final product or services – to looking at the quality of every aspects of the process that produces the product or service. TQM systems are intended to prevent poor quality from occurring. Successful TQM programs are built through the dedication and combined efforts of everyone in the organization.