FEEDFORWARD, CONCURRENT, AND FEEDBACK CONTROL EXERCISE

OBJECTIVES

To demonstrate the need for control procedures.

To gain experience in determining when to use feedforward, concurrent, and feedback controls.

INSTRUCTIONS

Read the Control Problem Situation and be prepared to resolve those control problems in a group setting.

Each group should complete the Feedforward, Concurrent, and Feedback Control Worksheet by achieving consensus on the types of control that should be applied in each situation. The group also develops a response to the discussion question.

The group presents findings in the form of a presentation and submits a summary of findings.

DISCUSSION QUESTION

For which control(s) was it easier to determine application? For which was it harder? Explain.

CONTROL PROBLEM SITUATION

Your management consulting team has just been hired by Technocron International, a rapidly growing producer of electronic surveillance devices that are sold to commercial and government end users. Some sales are made through direct selling, and some through industrial resellers. Direct-sale profits are being hurt by what seem to be exorbitant expenses paid to a few of the salespeople, especially those who fly all over the world in patterns that suggest little planning and control. There is trouble among the resellers because standard contracts have not been established and each reseller has an entirely different contractual relationship. Repayment schedules vary widely from customer to customer. Also, profits are reduced by the need to customize most orders, making mass production almost impossible. However, no effort has been made to create interchangeable components. There are also tremendous inventory problems. Some raw materials and parts are bought in such small quantities that new orders are being placed almost daily. Other orders are so large that there is hardly room to store everything. Many of these purchased components are later found to be defective and unusable, causing production delays. Engineering changes are made that make large numbers of old components still in storage obsolete. Some delays result from designs that are very difficult to assemble, and assemblers complain that their corrective suggestions are ignored by engineering. To save money, untrained workers are hired and assigned to experienced worker-buddies who are expected to train them on the job. However, many of the new people are too poorly educated to understand their assignments, and their worker-buddies wind up doing a great deal of their work. This, along with the low pay and lack of consideration from engineering, is causing a great deal of worker unrest and talk of forming a union. Last week alone nine new worker grievances were filed, and the U.S. Equal Employment Opportunity Commission has just announced intentions to investigate two charges of discrimination on the part of the company. There is also a serious cash flow problem because a number of long-term debts are coming due at the same time. The cash flow problem could be relieved somewhat if some of the accounts payable could be collected.

The CEO manages corporate matters through five functional divisions: operations, engineering, marketing, finance, and human resources management and general administration.

Feedforward, Concurrent, and Feedback Control Worksheet

Technocron International is in need of a variety of controls. Complete the following matrix by noting the feedforward, concurrent, and feedback controls that are needed in each of the five functional divisions.

Divisions

Feedforward Controls

Concurrent Controls

Feedback Controls

HRM and general administration

Operations

Engineering

Marketing

Finance