Control charts and its application in business

Control charts, also known as Shewhart charts, are valuable tools in business for monitoring processes and ensuring stability and quality. They are used across various industries to track data over time, identify patterns, and detect potential issues, allowing for timely interventions and proactive improvements. 

Industries and Applications:

• Manufacturing:

  Control charts are widely used in manufacturing to monitor production processes, ensure product quality, and minimize defects. For example, a manufacturer might use a control chart to track the number of defective parts produced over time, identify trends, and take corrective action when necessary. 
• Healthcare:
• In healthcare, control charts can be used to monitor patient wait times, track infection rates, or evaluate treatment outcomes. This helps identify areas for improvement and ensure the quality of patient care. 
• Finance:
• Control charts can be used to monitor financial transactions, identify unusual activity, and track the performance of investments. For example, a financial institution might use a control chart to track the number of fraudulent transactions or the average daily trading volume.
• 
  
• Software Development:
• Control charts can be used to monitor the number of defects in software releases, track the time it takes to resolve bugs, or monitor the overall stability of the software. This helps identify areas for improvement and ensure the quality of the software product. 
• Human Resources:
• Control charts can be used to monitor employee turnover rates, track absenteeism, or evaluate employee performance. This helps identify areas for improvement and ensure the overall health of the workforce. 
• General Business:
• Control charts can be used in any business process where data needs to be tracked and analyzed over time to identify trends and patterns. For example, a business might use a control chart to monitor customer satisfaction scores, track sales performance, or monitor the number of complaints received. 

Types of Industries and Applications:
Manufacturing:
Quality Control: Control charts are widely used in manufacturing to monitor various process parameters like dimensions, weights, and defects. They help identify when a process is out of control, potentially leading to defective products.
Process Monitoring: By tracking key process variables, manufacturers can ensure that their production lines are operating stably and efficiently, minimizing waste and improving output.
Root Cause Analysis: When a process deviates, control charts provide valuable insights into the underlying causes, allowing for targeted interventions to correct the issue.
Service Industries:
Healthcare: In healthcare, control charts can be used to track patient wait times, infection rates, and treatment outcomes, helping to identify areas for improvement and optimize patient care.
Finance: Financial institutions can use control charts to monitor financial performance indicators, detect fraudulent activities, and assess investment strategies.
Software Development: Control charts can be used to monitor software development processes, tracking metrics like bug rates, code quality, and project timelines, helping to identify bottlenecks and improve development efficiency.
Human Resources: HR departments can use control charts to track employee performance, turnover rates, and training effectiveness, identifying areas for improvement in talent management.
Key Benefits of Control Charts:
Real-time Monitoring:
Control charts provide immediate insights into process deviations, allowing for swift responses to emerging issues.
Process Stability:
By maintaining processes within control limits, businesses can ensure consistent quality and predictability, reducing waste and improving efficiency.
Cost Reduction:
Early detection of anomalies minimizes downtime, reduces scrap rates, and improves overall production efficiency, leading to significant cost savings.
Data-Driven Decisions:
Control charts empower businesses to move from reactive approaches to data-driven, proactive strategies, optimizing processes based on real-time data.

Control charts are widely used in various industries to monitor and control processes, ensuring quality and efficiency. Here are some examples:

Manufacturing Industry

1. *Quality Control*: Monitor product dimensions, weights, or other characteristics to ensure they meet specifications.

2. *Process Control*: Track process parameters, such as temperature, pressure, or flow rate, to maintain optimal conditions.

Service Industry

1. *Customer Service*: Monitor customer satisfaction metrics, such as response times or resolution rates.

2. *Call Center Operations*: Track call volumes, wait times, or agent performance to optimize staffing and improve customer experience.

Healthcare Industry

1. *Patient Safety*: Monitor adverse event rates, medication errors, or patient satisfaction scores.

2. *Clinical Trials*: Track patient enrollment, data quality, or study progress to ensure trial integrity.

Financial Industry

1. *Risk Management*: Monitor financial metrics, such as credit risk, market risk, or operational risk.

2. *Compliance*: Track regulatory compliance metrics, such as audit findings or compliance rates.

Types of Control Charts

1. *X-bar Chart*: Monitors the mean of a process.

2. *R-Chart*: Tracks the range of a process.

3. *p-Chart*: Monitors the proportion of defective items.

4. *c-Chart*: Tracks the number of defects per unit.

Benefits

1. *Improved Quality*: Control charts help detect deviations from expected performance.

2. *Increased Efficiency*: By monitoring processes, organizations can identify areas for improvement.

3. *Reduced Variability*: Control charts enable organizations to maintain consistent performance.

By applying control charts, businesses can ensure quality, efficiency, and consistency in their processes, leading to improved customer satisfaction and reduced costs.

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Attention US CMA students.. Attend today's live session..Gets tips for interpretation tactics for MCQ Questions

 *It's free 🆓*

*Today's classroom session at 12pm Discussions, Guidence on important topics subtopic..how to deal with exam questions ‼️ specially MCQ section MCQ types, how key words Crack difficult MCQ,etc..attend lecture, ask your query,terms concept..from any topics,any source ...*

*It's request to all' students.. suggest max 2 topic subtopic where you are struggling.. example in case of Variance Analysis: variable oh efficiency variance,or in case of Internal control system: limitations of internal control etc*

*Please confirm your availability*

*Don't miss this session*..

Also available 

Online google meet link 🖇️ it's free 🆓 

Call 9773464206..Get access or click here ✍️ 

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CMA PART 1 PART 2.. EXAM STRETEGY..1

GMSISUCCESS

CMA PART1 & PART2  EXAM STRETEGY   …1

1.                    LAST 5 UNITS : BUDGETORY CONTROL , VARIANCE ANALYSIS,  PERFORMANCE MEASUREMENT , INTERNAL CONTROL, SYSTEM CONTROL  AND   TECHNOLOGY & DATA ANALYTICS …COMPETED 100% FROM TEXTBOOK?  >> CONCEPTUALLY CLEARED OR STILL CONFUSION ?

2.                  STILL YOU ARE REFERING TEXTBOOK YES OR NO

3.                HOW MANY QUESTIONS MCQ OR OTHER FORMATS TYPE OF QUESTIONS , SOLVE ON BUDGETORY CONTROL , VARIANCE ANALYSIS & PERFORMANCE MEASUREMENT EACH TOPIC …TELL ME ???    THERE IS NO TIME MANAGEMENT REQUIRED IN THIS TOPIC …MAIN CRITERIA IS UNDERSTANDING CORE PART OF QUESTION & ATTEMPTING QUESTION & CORRECTNESS …THATS IT …OK?  ALLMOST 200+ SCALE OUT OF 500 ARE COVERED IN THIS TOPICS

4.             DO YOU SOLVE MY ALL MOCKTEST , CHALLENGING MOCKTEST???, IF ANY QUESTION WRONGLY ATTEMPTED THEN DO YOU UNDERSTOOD QUESTION , ANSWER EXPLANATION ...YES OR NO?

5.                ANY TERMS , WORDS , PARA , CONCEPTS OF ANY TOPIC SUBTOPIOCS ,,,NOT CLICKED NOT GRASPED …PLEASE ASK AT EARLIEST , GIVE ME SCREENSHOT ..I WILL HELP YOU…

6.             WHICH TOPIC IS PRESENTLY GOING ON …TELL ME ATLEAST THREE TOPICS ….

7.             DO YOU FAMILIAR WITH TYPES OF MCQ QUESTIONS ????   LIKE Q FOLLOWING ARE THE LIMITATIONS OF INTERNAL CONTROL SYSTEM EXCEPT ...WHAT IS MEANING OF QUESTION?  OR Q WHICH ONE OF THE FOLLOWING IS HIGHEST POSSIBILITY OF PREVENTION CONTROL? IT MEANS ALL 4 ARE SUPPORTING TO PREVENTION CONTROL BUT AMONG THEM EXTREM ATTACHED TO PREVENTION CONTROL ...IS YOUR ANSWER

8.                EXAM =4 HOURS >>> FIRST 3 HOURS 100 MCQ …NO NEGATIVE  MARKING , SO IT IS COMPULSORY TO SOLVE ALL 100 MCQ & IF 50+ MCQ CORRECT THEN ONLY SECOND WINDOW …ESSAY SECTION OPEN..WHICH IS FOR 1 HOUR ( 60 MINUTES )…TWO ESSAY ..EACH CARRYING 6 QUESTIONS ..BUT GOOD ASPECT… NO QUESTION IS LOGICAL , YOU CAN READ ESSAY… SIMULATNEOUSLY WRITE YOUR ANSWER AS & WHEN QUESTION FLASHED ON SCREEN , IMA EXPECT YOUR ANSWERF SHORT , TO THE POINT , LOGICAL , NOT VAGUE,MAY BE IN 2 OR THREE SENTENCE ,KEEP IT IN PARA IF IT IS DISCRIPTIVE OR IF THEY ASK TWO MERITE TWO DEMERITS , WRITE MERIT 1 …. MERIT2…. DEMERIT1.. DEMERT2….DONT WRITE IT IN VAGUE PARAGRAPH

9.              HOW TO TAKLE MCQ IS MAIN CHALLENGE FOR YOU… BCOZ NO QUESTION IS REPEATED OR FAMILIAR FROM ANY SOURCES..

MCQ LANGUAGE IS NOT STRAIGHTFORAWRD TO EASILY CLICK BY AVERAGE STUDENTS ...MAX 25 MCQ OUT OF 100 MCQ CAN EASILY SOLVABLE.

NOT A SINGLE MCQ ARE FROM GLIEM, HOCK, BECKER,WILEY PUBLICATIONS QUESTION BANK

REMEMBER ….TYPES OF QUESTIONS THAT WE DISCUSSED DURING LECTURE , REVISION LECTURE , MOCKTEST SESSION …ARE THERE IN EXAM…BUT NO SINGLE QUESTION REPLICA ARE THERE IN YOUR EXAM..DONT EXPECT THAT ..OK?

REMEMBER …IMA EXAM COMMITTEE NEVER PUBLISH ANY SINGLE EXAM QUESTION ON PUBLIC DOMAIN…IMA DO THOROUGH RESEARCH WHILE COMPILING EXAM MCQ QUESTIONS

 

DEFINE BPR , INTERNAL CONTROL ETC :IN ESSAY …THERE IS NO DEFINATION ..YOU JUST DESCRIBE THIS TERMS >>>

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Feel free 🆓 to discuss with me if you want guidence on exam stretegy..Tel 9773464206

How to foster a Growth Mindset in students

 How to Foster a Growth Mindset in Students

Learning how to foster a growth mindset in students requires time and practice. The approach requires consistent instruction that reinforces and demonstrates the idea that students can improve their ability. At the most basic level, mindset techniques involve shifting emphasis away from outcomes and toward efforts and process. Rather than praising an accomplishment, the instructor praises the efforts and learning steps that led to the positive outcome.

Looking at examples of how instruction and language can be altered to encourage a growth mindset illustrates how teachers can change the way that students perceive the learning process:

Fixed mindset statement: “It’s OK if you’re having trouble. Maybe algebra isn’t one of your strengths.”

Growth mindset statement: “When you learn how to do a new kind of problem, it develops your math brain.”

Another example stresses the importance of encouraging students to work through problems:

Fixed mindset statement: “Great effort. You tried as hard as you could.”

Growth mindset statement: “The goal isn’t to get it right immediately. The goal is to improve your understanding step by step. What can you try next?”

Teaching students to be encouraged when they experience difficulty can also reinforce growth mindset:

Fixed mindset statement: “Don’t worry, you’ll get it if you keep trying.”

Growth mindset statement: “That feeling you’re experiencing of algebra being hard is the feeling of your brain developing.”

A growth mindset approach still demands optimal performance from a student—simply rewarding efforts isn’t effective, and, in fact, it can be harmful if the student’s efforts are ultimately fruitless.

Part of growth mindset instruction is teaching students to ask for help and to use any resources that can assist them. Just as students are still responsible for learning the material, teachers are still responsible for giving them the tools they need to learn.

Feel free 🆓 to discuss, comment on this topic 

Regards from Prof Mahaley Head Gmsisuccess Goregaon West Mumbai Tel 9773464206

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Facts about CMA Part 1 Part 2 Exam.. particularly MCQ Questions ⁉️

 Facts about CMA Part 1 Part 2 Exam.. particularly MCQ Questions ⁉️

1.Not a single question asked in exam from Gleim Wiley Hock etc question Bank.

2. IMA never publish exam questions on public domain,so don't depends on any publication or source.

3. Out of 100 question ⁉️ 50 question are tricky or logical or absurd.. IMA Exam study committee do thorough research while compiling such type of questions ‼️ 

4. Lengthy and practical questions asked in exam are not tricky, small question with little details..most probably logical reasoning questions ‼️ 

5. Atleast 2 to 3 MCQ are..without any grade or scale or marks 

6. How to crack such logical,absurd type questions...is real challenge for all students..I will suggest few techniques with MCQ example 

7. Students who are practicing MCQ..only Gleim or only hock..face lots of difficulty..so during my online mocktest session.. students get acquainted with such tactics to deal with such type of questions ‼️ 

8. Students must agree 💯 that...you must be well versed with all topics subtopic.. familiar with each terms,words, phrases,meaning, logical interpretation,few formulas,major topic illustration steps....for sure success...cross 400+ Keep your target 🎯 80%+  even during my online mocktest, challenging mocktest...

9. Atleast 50 MCQ must be correct 💯 to open next window.. Essay section.. please note this ⬆️

10. Remember,2 essay each carrying 6 question read, understand, correlate with essay,write ✍️ in short..one or two line.. time available only 60 minutes.. it's challenging task but one good aspect is.. essay based questions are not tricky.

11. Few more important smart tactics,tricks,tips and stretegy guidlines...in my lecture 

12. For success in this exam needs.. your positive, aggressive approach during study,even during exam..

Best wishes 🍀

From Prof Mahaley Head Gmsisuccess Mumbai 

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Excess capacity and capacity underutilization... Article ✍️ Gmsisuccess

 *Excess Capacity: A Comprehensive Overview*

Excess capacity, also known as unutilized capacity, occurs when a firm operates below its optimum production level, resulting in underutilization of resources. This phenomenon can arise due to various factors, including market recession, increased competition, and mispredicted market demand.

*Causes of Excess Capacity*

Several factors contribute to the emergence of excess capacity:

1. *Overinvestment*: Investing more than necessary in production capacity, leading to underutilization.

2. *Repressed Demand*: Insufficient demand for a product or service, resulting in excess capacity.

3. *Technological Improvement*: Advancements in technology can lead to increased production capacity, potentially creating excess capacity.

4. *External Shocks*: Financial crises, changes in government policies, or other external factors can disrupt demand and create excess capacity.

5. *Mispredicting the Market*: Incorrect forecasts of market demand can result in excess capacity.

6. *Inefficient Resource Allocation*: Poor allocation of resources can lead to underutilization and excess capacity.

*Consequences of Excess Capacity*

Excess capacity can have significant consequences, including:

1. *Reduced Profits*: Underutilization of resources leads to reduced productivity and profitability.

2. *Decreased Motivation*: Excess capacity can demotivate employees, negatively impacting morale and overall performance.

3. *Inefficient Use of Resources*: Excess capacity can result in wasted resources, including labor, materials, and equipment.

*Economies of Scale*

Economies of scale occur when increased production leads to reduced costs per unit. This can be achieved through:

1. *Bulk Purchasing*: Negotiating lower prices for large quantities of inputs.

2. *Improved Infrastructure*: Investing in infrastructure, such as transportation or communication systems, can reduce costs and increase efficiency.

3. *Specialization*: Dividing tasks and responsibilities to increase efficiency and reduce costs.

*Mitigating Excess Capacity*

To mitigate excess capacity, firms can:

1. *Adjust Production Levels*: Reduce production to match demand.

2. *Diversify Products or Services*: Expand product or service offerings to increase demand.

3. *Improve Efficiency*: Implement cost-saving measures and improve operational efficiency.

4. *Invest in Research and Development*: Develop new products or services to increase demand.

By understanding the causes and consequences of excess capacity, firms can take proactive measures to mitigate its effects and optimize resource utilization.

Internal Economies of Scale

Internal economies of scale refer to the cost savings that arise from within a firm as it increases its production scale. These economies are achieved through:

1. *Specialization and Division of Labor*: As production increases, tasks can be divided, and workers can specialize, leading to increased efficiency.

2. *Bulk Purchasing*: Large firms can negotiate lower prices for inputs, reducing costs.

3. *Investment in Technology*: Increased production allows firms to invest in specialized technology, improving efficiency.

4. *Marketing and Advertising*: Large firms can spread marketing and advertising costs over a larger output.

5. *Financial Economies*: Large firms can access capital at lower costs and negotiate better terms.

External Economies of Scale

External economies of scale refer to the cost savings that arise from outside a firm as it increases its production scale. These economies are achieved through:

1. *Industry-Wide Investments*: Infrastructure development, such as transportation networks, benefits all firms in the industry.

2. *Knowledge Spillovers*: Firms can benefit from the research and development efforts of other firms in the industry.

3. *Specialized Labor Market*: A large industry can attract specialized labor, reducing training costs for firms.

4. *Government Support*: Governments may offer incentives, such as tax breaks or subsidies, to support large industries.

Internal Diseconomies of Scale

Internal diseconomies of scale refer to the increased costs that arise from within a firm as it increases its production scale beyond a certain point. These diseconomies are caused by:

1. *Management Complexity*: As firms grow, management becomes more complex, leading to increased costs.

2. *Communication Breakdowns*: Large firms can experience communication breakdowns, leading to errors and inefficiencies.

3. *Bureaucratic Inefficiencies*: Large firms can become bureaucratic, leading to slow decision-making and inefficiencies.

4. *Coordination Problems*: Large firms can experience coordination problems, leading to inefficiencies and increased costs.

External Diseconomies of Scale

External diseconomies of scale refer to the increased costs that arise from outside a firm as it increases its production scale beyond a certain point. These diseconomies are caused by:

1. *Environmental Degradation*: Large-scale production can lead to environmental degradation, imposing costs on firms and society.

2. *Increased Regulation*: Large firms may attract increased regulatory scrutiny, leading to compliance costs.

3. *Negative Publicity*: Large firms may experience negative publicity, damaging their reputation and leading to lost sales.

4. *Increased Competition*: Large firms may attract new competitors, increasing competition and reducing market share.

Understanding internal and external economies and diseconomies of scale is crucial for firms to optimize their production scale and minimize costs.

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The departments in A LTD 's organization structure and their primary responsibilities are: SELECT APPROPRIATE FUNCTION FOR EACH DEPARTMENT .

 TODAYS STUDENT ASSIGNMENT                                                                                            

 A LTD , Company is a manufacturing company that uses forms and documents in its accounting information systems for record keeping and internal control. 

The departments in A LTD 's organization structure and their primary responsibilities are: SELECT APPROPRIATE FUNCTION FOR EACH DEPARTMENT . 

  DEPARTMENT             FUNCTION(Primary responsibilities)

1)Accounts Payable --                  ? 

2)Accounts Receivable –               ?

3)Billing --                                        ? 

4)Cashier --                                      ? 

5)Credit Department --                    ? 

6)Cost Accounting --                        ? 

7)Finished Goods Storeroom –       ?

8)General Accounting --                   ? 

9)Internal Audit --                               ? 

10)Inventory Control –                       ?

11)Mailroom --                                     ? 

12)Payroll --                                         ? 

13)Personnel --                                    ? 

14)Purchasing --                                  ? 

15)Production --                                   ? 

16)Production Planning --                   ? 

17)Receiving --                                      ? 

18)Sales --                                              ? 

19)Shipping --                                        ? 

20)Stores Control --                              ? 

21)Timekeeping --                                             ?

SELECT SUITABLE FUNCTION FROM THIS DATA :

A) place orders for materials and supplies. 

B) manufacture finished goods. 

C)decide the types and quantities of products to be produced. 

D) receive all materials and supplies. 

E) accept orders from customers. 

F) ship goods to customers. 

G)safeguard all materials and supplies until needed for production. 

H) prepare and control time worked by hourly employees

I) authorize payments and prepare vouchers. 

J) maintain customer accounts. 

K) prepare invoices to customers for goods sold. 

L) maintain a record of cash receipts and disbursements. 

M) verify the credit rating of customers. 

N) accumulate manufacturing costs for all goods produced. 

O) maintain the physical inventory and related stock records of finished goods

P)maintain all records for the company's general ledger. 

Q) appraise and monitor internal controls, as well as conduct operational and management audits. 

R) maintain perpetual inventory records for all manufacturing materials and supplies. 

S) process incoming, outgoing, and interdepartmental mail. 

T) compute and prepare the company payroll. 

U) hire employees, as well as maintain records on job positions and employees.

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*Answers*

A LTD  Company is a manufacturing company that uses forms and documents in its accounting information systems for record keeping and internal control. The departments in A LTD 's organization structure and their primary responsibilities are:

1.Accounts Payable -- authorize payments and prepare vouchers.

2.Accounts Receivable -- maintain customer accounts.

3.Billing -- prepare invoices to customers for goods sold.

4.Cashier -- maintain a record of cash receipts and disbursements.

5.Credit Department -- verify the credit rating of customers.

6.Cost Accounting -- accumulate manufacturing costs for all goods produced.

7.Finished Goods Storeroom -- maintain the physical inventory and related stock records of finished goods.

8.General Accounting -- maintain all records for the company's general ledger.

9.Internal Audit -- appraise and monitor internal controls, as well as conduct operational and management audits.

10.Inventory Control -- maintain perpetual inventory records for all manufacturing materials and supplies.

11.Mailroom -- process incoming, outgoing, and interdepartmental mail.

12.Payroll -- compute and prepare the company payroll.

13.Personnel -- hire employees, as well as maintain records on job positions and employees.

14.Purchasing -- place orders for materials and supplies.

15.Production -- manufacture finished goods.

16.Production Planning -- decide the types and quantities of products to be produced.

17.Receiving -- receive all materials and supplies.

18.Sales -- accept orders from customers.

19.Shipping -- ship goods to customers.

20.Stores Control -- safeguard all materials and supplies until needed for production.

21Timekeeping -- prepare and control time worked by hourly employees