Explain “Critical point control” with respect to Analyzing deviations, a step in the process of controlling. Give a suitable example.

Question 2:Explain “Critical point control” with respect to Analyzing deviations, a step in the process of controlling. Give a suitable example.

The correct answer is – Critical point control is a technique used in the process of controlling to identify and address significant deviations in the performance of an organization. It involves identifying critical points in the organization’s processes and operations, which, if not managed properly, could have a significant impact on the achievement of the organization’s objectives.

The critical points are identified based on their potential impact on the organization’s performance and the likelihood of them occurring. Once identified, appropriate measures are taken to manage these critical points and prevent them from causing significant deviations.

For example, let’s consider a manufacturing company that produces electronic goods. One critical point in the production process could be the quality control of components used in the final product. If the components do not meet the required quality standards, the final product may malfunction, leading to customer complaints and returns, which could impact the company’s sales and reputation.

To manage this critical point, the company can implement a rigorous quality control process for the components, including testing and inspection at different stages of the production process. Any deviation from the quality standards can be identified and addressed immediately, preventing the faulty components from being used in the final product.

In this example, critical point control helps the manufacturing company to prevent significant deviations in the quality of their final product, which can have a negative impact on the company’s performance. By managing the critical point effectively, the company can ensure that their products meet the required quality standards and maintain customer satisfaction.