Control Systems for Business Optimization. Part 3.

 

Types of Control Systems:

• Open-loop vs. Closed-loop (https://tinyurl.com/bdzaxr7e): Open-loop systems operate without feedback, while closed-loop systems use feedback to adjust their actions. 

Open loop

These control systems operate with human input. The control action is independent of 

the output. In household use, a washing machine is an example of an open-loop system 

because someone needs to make selections among the settings for it runs. A time-based 

traffic light system is an industrial example of an open-loop control system, where traffic 

engineers must decide the timing for the stop, go and caution lights.

 

Closed loop

These systems can be actively managed or set to operate autonomously. They use feedback 

signals from the system to provide automatic control and maintain specific settings or 

a desired state without human intervention. Some control loops can be switched between 

closed and open modes. When open, a switchable loop is manually controlled; when closed, 

it can be fully automated.

A thermostat is an example of a closed-loop system. It turns a heating system on and off 

based on signals it receives from sensors that monitor air temperature. Temperature control is 

a particularly important part of maintaining a proper data center environment.

In Figure 2, the technician manages a system that can be remotely controlled. The technician 

regularly sends input signals to the device, and it sends output signals via a feedback loop 

and a sensor that monitors the device. When the sensor receives an error signal from 

the device, it sends an alert message over the feedback loop to the technician, who then 

sends instructions to the device as needed to counter the negative feedback.

Figure 2 also depicts a feedback control system. The control system needs feedback data to 

control the device.

• Feedforward, Concurrent, and Feedback (https://tinyurl.com/mrxrfhma): These are different approaches to control, with feedforward anticipating issues, concurrent monitoring during processes, and feedback adjusting based on results.

How Are The Three Types of Control Used In Different Industries?

Control is a crucial aspect of any industry, ensuring that processes and operations run smoothly and efficiently. There are three basic types of control: feedforward, concurrent, and feedback. In this section, we will discuss how these types of control are utilized in different industries. From manufacturing to service industries to healthcare, each type of control plays a vital role in maintaining quality and achieving goals. Let’s take a closer look at how these controls are applied in various sectors and their impact on overall performance.

1. Feedforward Control in Manufacturing

Feedforward control in manufacturing is a crucial process that involves several key steps:

• Anticipating potential issues in the production process.
• Implementing measures to prevent problems from occurring.
• Utilizing advanced technology for predictive analysis.
• Regularly monitoring and adjusting processes to maintain efficiency.

By following these steps, manufacturing companies can proactively address challenges and optimize their production processes.

2. Concurrent Control in Service Industries

• Establish Clear Objectives: Define specific goals for service delivery and quality standards.
• Real-time Monitoring: Use technology to track service processes and identify deviations promptly.
• Immediate Corrective Actions: Address issues as they arise to maintain service quality and compliance.

Pro-tip: Regularly review concurrent control procedures in service industries to adapt to changing service demands and ensure optimal performance.

Feedback is like a doctor’s diagnosis – it tells you what’s wrong and how to fix it, but it’s up to you to actually follow the advice.

3. Feedback Control in Healthcare

1. Healthcare Monitoring: Implement feedback control systems to track patient vital signs, medication effects, and treatment outcomes.
2. Quality Improvement: Utilize feedback control to enhance healthcare service delivery, address patient concerns, and improve overall patient experience.
3. Risk Management: Employ feedback control mechanisms to identify and mitigate potential risks, errors, and adverse events in healthcare operations.
4. Regulatory Compliance: Ensure adherence to healthcare regulations and standards through feedback control processes, promoting patient safety and confidentiality.

Because let’s face it, every type of control has its pros and cons, just like every diet fad and relationship.

What Are The Advantages and Disadvantages of Each Type of Control?

When it comes to managing and maintaining control in any system or organization, there are three basic types of control that can be utilized. Each type offers its own unique advantages and disadvantages, which we will explore in this section. From feedforward control, which aims to prevent problems before they occur, to concurrent control, which monitors ongoing processes, and feedback control, which adjusts based on past results – we’ll discuss the ins and outs of each type and how they can impact a system’s overall performance.

1. Feedforward Control

1. Identify and anticipate potential deviations in processes and outcomes when implementing feedforward control.
2. Establish proactive measures to prevent or minimize anticipated issues.
3. Implement clear and specific guidelines for corrective actions, if required.
4. Regularly monitor and adjust processes based on anticipated changes.

When implementing feedforward control, it’s crucial to conduct thorough risk assessments and stay updated with industry trends to ensure the effectiveness of proactive measures.

2. Concurrent Control

Concurrent control in industries like hospitality is crucial for maintaining real-time service quality, offering immediate resolution of any guest issues, and ultimately ensuring sustained customer satisfaction.

Some key processes for implementing concurrent control include:

1. Identify Key Processes: Determine core activities requiring concurrent control.
2. Establish Standards: Set benchmarks and quality measures for real-time performance evaluation.
3. Implement Monitoring Systems: Utilize technology for continuous oversight of operations and deviations related to concurrent control.
4. Enforce Immediate Corrections: Address issues as they arise to maintain efficient workflow and ensure successful implementation of concurrent control.

3. Feedback Control

• Timing: Feedback control takes place after the process, identifying errors and making necessary adjustments.
• Focus: It is centered on the results and performance of the process.
• Direction: Its goal is to maintain or alter the process in order to achieve desired outcomes.

• Cybernetic, Go/No-Go, and Post-Performance (https://www.praxisframework.org/en/knowledge/control): These are broader categories of control systems. 

The three main types of control systems are cybernetic control, go/no-go control, and 

post-performance control. Cybernetic control uses feedback loops to self-regulate and adjust 

to maintain desired performance. Go/no-go control involves making decisions at specific points

 to proceed or halt a project based on predefined criteria. Post-performance control focuses 

on learning from past projects to improve future ones.

Here's a more detailed explanation:

1. Cybernetic Control:

Focus:

Continuous monitoring and adjustment of a system to maintain a desired state or performance level. 

Mechanism:

Uses feedback loops to compare actual performance with a set standard and make corrections as needed. 

Example:

A thermostat regulating room temperature, or a cruise control system in a car. 

Key Feature:

Automatic operation, often without direct human intervention.

 

2. Go/No-Go Control:

Focus:

Making decisions at critical junctures to determine if a project or activity should proceed or be halted. 

Mechanism:

Predefined criteria are established, and the project is evaluated against these criteria at specific points. 

Example:

A software release approval process, or a construction project milestone review. 

Key Feature:

Decision-making at key points based on pre-set conditions.

 

3. Post-Performance Control:

Focus:

Evaluating the performance of a completed project or activity to identify lessons learned for future projects.

Mechanism:

Analysis of project outcomes, successes, and failures to improve future practices.

Example:

A post-project review that identifies areas for improvement in future project planning or execution.

Key Feature:

Learning from past experiences to improve future performance. 

Three basic types of control systems available to executives are: output control, behavioral 

control, and clan control . Organizations often utilize a combination of these approaches. 

(https://tinyurl.com/2ex7etvh)

Output control focuses on measurable results and outcomes, such as sales figures, production 

quotas, or profit margins. 

Behavioral control emphasizes the methods and processes used to 

achieve those results, often through rules, procedures, and direct supervision. 

Clan control relies on shared values, norms, and culture to guide employee behavior and decision-making. 

While each type of control has its own strengths and weaknesses, a well-rounded control 

system often incorporates elements from all three to achieve organizational goals effectively.

Optimization Techniques:

Model-based optimization: Uses mathematical models to predict optimal performance.

Data-driven optimization: Relies on data analysis to identify areas for improvement.

Hybrid approaches: Combine model-based and data-driven methods.  

Benefits of Control System Optimization:

• Improved efficiency: Streamlined processes and resource allocation.
• Increased productivity: Enhanced output and reduced errors.
• Enhanced safety: Reduced risks and improved security.
• Better decision-making: Informed adjustments based on data and feedback.
• Reduced costs: Efficient resource utilization and minimized waste. 

Key Considerations for Implementation:

• Define clear objectives: Establish measurable goals and targets. 
• Identify critical control points: Determine where deviations are most likely to occur. 
• Choose appropriate control mechanisms: Select the right tools and techniques. 
• Continuously monitor and evaluate: Regularly assess the effectiveness of the control system. 
• Adapt and improve: Make adjustments as needed to optimize performance. 

Key functions of a management controller (https://tinyurl.com/5n73kubn)

In general terms, the management controller is responsible for obtaining information in order 

to evaluate company activity, facilitate decision making and oversee compliance with 

the company’s objectives. They must be in contact with all functional areas and act as 

a bridge between them and senior management.

Their key functions include:

#1 Data analysis

The controller collects and analyzes information from different sources to identify trends. They 

also extract company data to evaluate the fulfillment of strategic objectives. To do this, they 

need to have data measurement systems and to establish key performance indicators (KPIs) 

that allow them to understand the most important aspects.

AI and Business Intelligence tools have revolutionized management control, enabling deeper 

and more efficient data analysis.

Machine learning and predictive algorithms can identify patterns and trends in large volumes 

of data, helping companies to anticipate potential problems and make proactive, early 

decisions.

#2 Business management support

Another key function is reporting. The controller produces advanced reports and analyses and 

presents them to management to guide and reinforce strategic decision-making: data-driven 

decisions multiply business success and drive results.

#3 Budget preparation

One of the controller’s most important tasks is drawing up budgets. To plan and ensure 

efficient use of the company’s financial resources, controllers must evaluate costs and risks, 

establish cash flow forecasts, analyze possible budget deviation and define the resources 

required to carry out the company’s activities or a specific project.

Sometimes, an independent financial controller works in conjunction with the management 

controller. In other cases, both roles are combined in a single person or department.

#4 Monitoring objectives

Monitoring and adjusting business targets through KPIs allows companies to stay on track to 

achieve their goals. There are several project management methodologies that every business 

controller should know, including Agile, Scrum and PMI/PMBOK, to carry out this monitoring.

The purpose of supervision is to enable the detection of process errors, inefficiencies, budget 

deviations or other incidents that could undermine the achievement of objectives, so that they 

can be solved and effectively redressed.

In this regard, controllers have to work collaboratively with the finance department, the human 

resources department and with the various cross-functional teams. This is why it is essential for

 them to have management ability and soft skills that help create collaborative relationships 

and mutual understanding:

Monitoring should aim to create positive and cooperative work dynamics, not to scrutinize and 

point the finger but to detect errors or areas for improvement to work on as a team.

Key performance indicators

The use of key performance indicators (KPIs) is essential for measuring the effectiveness and 

efficiency of business processes. We can divide them into:

#1 Evaluation indicators

Evaluation indicators help evaluate if business actions are meeting an organization’s defined 

strategic goals. These KPIs can include comparison of actual versus projected results and 

trend analysis over time. Some common examples are:

* Budget deviation: measures the difference between the planned budget and the actual 

expenditure, allowing an assessment of the accuracy of financial planning.

* Return on investment (ROI): analyzes the profitability of projects or initiatives, providing a clear 

view of the value generated versus the resources invested.

#2 Compliance indicators

These indicators verify that business operations are aligned with internal company policies and 

legal regulations. They are essential to ensure compliance and avoid legal or reputational risks.

Some examples are:

* Regulatory compliance: assesses the degree of adherence to specific regulations, such as 

sustainability regulations or quality standards.

* Internal audit rating: measures the success of internal reviews in detecting and correcting 

deviations before they impact the operation.

#3 Efficiency indicators

Efficiency indicators focus on the optimal use of resources and the continuous improvement of 

processes. They identify areas where productivity can be maximized and costs can be reduced.

Some of the most useful KPIs include:

* Cost per unit produced: measures the total cost of production per unit, highlighting areas where

expenses could be optimized.

* Process cycle time: evaluates the duration from start to completion of a process, helping to 

identify bottlenecks and opportunities for improvement.