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B Why is real time information not good enough for effective control?
Wiki User
∙ 9y ago
Real time information is not good enough for effective control for various reasons. The main reason is that real time will not give you room for consideration and proper analysis of eventualities and this lead to poor control measures.
Wiki User
∙ 9y ago
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Why is real time information not good enough for effective control?
Why_is_real_time_information_not_good_enough_for_effective_control"Real time information may be good enough possibly in the simplest and most unusual cases but in more complex cases which is the rule than the exception in today's world, for example, in the case of quality control it may take considerable time to discover what is causing factory rejects and more lime to put corrective measures into effect. In the more complex case of inventory control particularly in a manufacturing company, which has many items - raw materials, component parts, goods in process, and finished goods - the correction time maybe very long. Once it is known that an inventory is too high, the steps involved in getting it back to the desired level may take a number of months.But this does not mean that prompt measurement of performance is unimportant. The sooner managers know that activities for which they are responsible are not proceeding in accordance with plans, the faster they can take action to make corrections. Even so, the question of whether the cost of gathering real-time data is worth the few days saved. Sometimes it is: In the case of an airline, ready information on seat availability is likely to be crucial to serving customers and filling seats. But in a major defense company producing one of the highest priority defense equipment items, there was little real-time information in an otherwise highly sophisticated information control system. But it was thought that the benefit of gathering real-time data was not worth the expense because the correction process took too long.The feedback loop of management control illustrated below shows clearly that real-time information does not make real-time control possible:
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