Modern Control Techniques – The Pro Tools! 🛠️

As business got complex, simple budgets weren't enough. We needed better tools.

1. ROI (Return on Investment) 💰

The Ultimate Metric.

• Formula: (Net Profit / Total Investment) x 100
• Why it's great: It tells you if the money is working hard.
• Example:
  • Project A Profit: ₹10 Lakhs (Investment: ₹1 Crore) -> ROI = 10%.
  • Project B Profit: ₹5 Lakhs (Investment: ₹20 Lakhs) -> ROI = 25%.
  • Winner: Project B! (Even though profit is lower, efficiency is higher).

2. PERT & CPM (Network Techniques) 🕸️

Used for Projects (Construction, Launching a Rocket).

• PERT (Program Evaluation and Review Technique): Used when time is uncertain (e.g., R&D).
• CPM (Critical Path Method): Used when time is known (e.g., Building a house).

The Critical Path: The longest path in the project. If this gets delayed, the whole project gets delayed.

• Control: Focus all energy on the Critical Path!

3. Management Audit 🕵️‍♂️

Auditing the Boss!

• Regular audit checks accounts (money).
• Management Audit checks the efficiency of management.
• Question: "Is the Planning good? Is the Org Structure working?"

4. MIS (Management Information System) 🖥️

• Computerized systems that give real-time data to managers.
• Dashboard: CEO opens laptop -> Sees Sales, Stock, Cash instantly.

Quiz Time! 🎯

💡 Final Wisdom: "If you can't measure it, you can't manage it. ROI and PERT are just fancy rulers to measure success." 📏

Next up: Management by Exception - The final lesson! The Golden Rule of saving time! ⏳