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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! 🎯

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💡 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! ⏳

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