Operations Control Systems

    Operations Control Systems

Operations control techniques are designed to assess how efficiently and effectively an organization’s transformation processes are working. Many of these techniques were covered in Chapter 19 as we discussed operations management. However, two operations control tools deserve elaboration: TQM control charts and EOQ model.

i)     Control charts show results of measurements over a period of time with  statistically determined upper and lower limits. They provide a visual means of determining whether a specific process is staying within predefined limits

ii)   The EOQ model helps managers know how much inventory to order and how often to order. The EOQ model seeks to balance four costs associated with ordering and carrying inventory.