When a company is working towards a target there are various steps involved to achieve it. But don’t you think it is necessary to measure the progress after completing each and every step? Yes. It is called Control Point or Performance Indicator. This is done by the management to sustain the quality and to ensure that they arrive at that particular quality they desired during the commencement of the project.
In the book “DAILY MANAGEMENT THE TQM WAY”, the author has clearly described an operating principle called the PDCA or Plan-Do-Check-Act cycle which is to be used as a discipline to ensure the success of any firm.
In measuring the Control Point it is necessary to rotate the PDCA cycle and give more importance to the Check part of the cycle, thus making the cycle as CAPD. But why should one rotate the benchmark mantra of any firm i.e., the PDCA cycle?
Professor Tatuo Ikezawa emphasizes that the Control Point is an effective and efficient tool for “Check”. The author further goes on to enunciate that whenever an objective is made, the people around you can get a better understanding of it when the steps to be used to acquire the objective is stated clearly.
Daily Management can work efficiently if one sets a useful control point. For example, your objective is to score well in a competitive exam, and then your control points would be understanding the syllabus of the exam, the pattern, a proper time table, necessary book materials etc.
What are Control Levels?
Now given that you need to measure the progress of your objective, the second step would be to set a “Range” for the measurement. This range is called the “Control Level” and the boundary of the levels is called “Control Limits”.
The Control Limits can be classified into two:
- Upper Control Limit
- Lower Control Limit
Whenever one need to check the extent of the control point the control levels are used to find if it is in a controlled or uncontrolled state.
In Daily Management, we have to invent control limits based on common sense unlike physical and chemical indicators used in Normal Distribution.
CONTROL POINT VS KEY PERFORMANCE INDICATOR:
When a control point is designated, it gives an indication to initiate certain actions. The Key Performance Indicator is a widely used term for Control Points in a Management system. The other name for KPI is Key Success Indicator.
Imagine you are working in a Construction company, the monthly performance in the company can indicate the progress which is used as a KPI.
Basically Control point is like a speed breaker for a fast moving car that keeps a “Check” on your speed!