8-3. Designing the control system

Background

  1. Purpose is to correct errors, not to punish the guilty
  2. Investments in control subject to diminishing returns
  3. Must consider impact on creativity and innovation
  4. Be careful not emphasize short-run results at the expense of long-run objectives
  5. Dangers of across the board cuts

Control Tools

  1. Variance Analysis
  2. Trend Projections
  3. Earned Value Analysis
  4. Critical Ratio

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