Traditional Control Techniques – The Classics! 🎻

These methods have been used for 100 years and still work.

1. Budgetary Control (The King 👑)

Definition: A plan expressed in numbers.

• How it works:
  1. Make a Budget (e.g., "Marketing Budget: ₹1 Lakh").
  2. Spend money.
  3. Compare Actual Spend vs Budget.
  4. If you spent ₹1.5 Lakhs -> Explain why!

Types of Budgets:

• Sales Budget: How much will we sell?
• Production Budget: How much will we make?
• Cash Budget: Do we have enough cash to pay salaries?

2. Break-Even Analysis (No Profit, No Loss) ⚖️

The Point: Where Total Cost = Total Revenue.

• If you sell below this point -> Loss.
• If you sell above this point -> Profit.
• Control: Managers try to lower the Break-Even Point (by reducing costs) so they can make profit faster.

3. Personal Observation (MBWA) 🚶‍♂️

MBWA = Management By Walking Around.

• Method: The boss doesn't sit in the cabin. He walks on the factory floor.
• Why?
  • He sees things reports hide (e.g., unhappy faces, dirty machines).
  • Workers work harder when they see the boss.
• Example: Sam Walton (Walmart) visited his stores constantly.

4. Statistical Reports 📊

• Averages, Percentages, Ratios.
• "Sales are up 5%." "Absenteeism is down 2%."
• Numbers don't lie.

Quiz Time! 🎯

Loading quiz…

💡 Final Wisdom: "A budget tells your money where to go instead of wondering where it went." 💸

Next up: Modern Control Techniques - The high-tech stuff! PERT, CPM, and ROI! 🚀