The control process is a continuous flow in Taj between measuring, comparing and action. Naturally Taj follows the four steps in the control process: establishing performance standards, measuring actual performance, comparing measured performance against established standards, and taking corrective action.

Step 1: Establish Performance Standards. Taj's Standards are created when objectives are set during the planning process. Its standard is a guideline established as the basis for measurement. It is a precise, explicit statement of expected results from a product, service, machine, individual, or organizational unit. It is usually expressed numerically and is set for quality, quantity, and time. Tolerance is permissible deviation from the standard.

· Time controls relate to deadlines and time constraints. Material controls relate to inventory and material-yield controls. Equipment controls are built into the machinery, imposed on the operator to protect the equipment or the process. Cost controls help ensure cost standards are met. Employee performance controls focus on actions and behaviors of individuals and groups of employees. Examples include absences, tardiness, accidents, quality and quantity of work. Budgets control cost or expense related standards. They identify quantity of materials used and units to be produced.

· Financial controls facilitate achieving the organization's profit motive. One method of financial controls is budgets. Budgets allocate resources to important activities and provide supervisors with quantitative standards against which to compare resource consumption. They become control tools by pointing out deviations between the standard and actual consumption.

· Operations control methods assess how efficiently and effectively an organization's transformation processes create goods and services. Methods of transformation controls include Total Quality Management (TQM) statistical process control and the inventory management control. Statistical process control is the use of statistical methods and procedures to determine whether production operations are being performed correctly, to detect any deviations, and to find and eliminate their causes. A control displays the results of measurements over time and provides a visual means of determining whether a specific process is staying within predefined limits. As long as the process variables fall within the acceptable range, the system is in control. Measurements outside the limits are unacceptable or out of control. Improvements in quality eliminate common causes of variation by adjusting the system or redesigning the system.

Inventory is a large cost for Taj like other manufacturing firms. The appropriate amount to order and how often to order impact the firm's bottom line. The economic order quantity model (EOQ) is a mathematical model for deriving the optimal purchase quantity. The EOQ model seeks to minimize total carrying and ordering costs by balancing purchase costs, ordering costs, carrying costs and stock out costs. In order to compute the economic order quantity, the supervisor needs the following information: forecasted demand during a period cost of placing the order, that value of the purchase price, and the carrying cost for maintaining the total inventory.

· The just-in-time (JIT) system is the delivery of finished goods just in time to be sold, subassemblies just in time to be assembled into finished goods, parts just in time to go into subassemblies, and purchased materials just in time to be transformed into parts. Communication, coordination, and cooperation are required from supervisors and employees to deliver the smallest possible quantities at the latest possible date at all stages of the transformation process in order to minimize inventory costs.

Step 2: Measure Actual Performance. Supervisors collect data to measure actual performance to determine variation from standard. Written data might include time cards, production tallies, inspection reports, and sales tickets. Personal observation, statistical reports, oral reports and written reports can be used to measure performance. Management by walking around, or observation of employees working, provides unfiltered information, extensive coverage, and the ability to read between the lines. While providing insight, this method might be misinterpreted by employees as mistrust. Oral reports allow for fast and extensive feedback.

In Taj computers give supervisors direct access to real time, unaltered data, and information. On line systems enable supervisors to identify problems as they occur. Database programs allow supervisors to query, spend less time gathering facts, and be less dependent on other people. Supervisors have access to information at their fingertips. Employees can supply progress reports through the use of networks and electronic mail. Statistical reports are easy to visualize and effective at demonstrating relationships. Written reports provide comprehensive feedback that can be easily filed and referenced. Computers are important tools for measuring performance. In fact, many operating processes depend on automatic or computer-driven control systems. Impersonal measurements can count, time, and record employee performance.

Step 3: Compare Measured Performance against Established Standards. Comparing results with standards determines variation. Some variation can be expected in all activities and the range of variation - the acceptable variance - has to be established. Management by exception lets operations continue as long as they fall within the prescribed control limits. Deviations or differences that exceed this range would alert the supervisor to a problem.

Step 4: Take Corrective Action. The supervisor must find the cause of deviation from standard. Then, he or she takes action to remove or minimize the cause. If the source of variation in work performance is from a deficit in activity, then a supervisor can take immediate corrective action and get performance back on track. Also, the supervisors can opt to take basic corrective action, which would determine how and why performance has deviated and correct the source of the deviation. Immediate corrective action is more efficient; however basic corrective action is the more effective.


Conclusion:

Let us conclude by saying that there are good reasons to feel confident that these manufacturing companies such as Taj, although likely to be difficult and take time, will succeed.

The government program has identified improved performance as a key objective of reform and this offers clarity of purpose which can be widely understood.

The melamine manufacturing companies (such as Taj) are consistent with the goal of EU accession which provides an external anchor

But most persuasive is the fact that the focus on service delivery to the people, if realistically managed, will reinforce popular support for such melamine manufacturing companies (such as Taj).

We believe these melamine manufacturing companies (such as Taj) will benefit from the involvement of civil society organizations which have an inherent interest in improving government performance and in monitoring and providing objective feedback that is essential to any self-correcting system.

The World Bank stands ready to support these melamine manufacturing companies (such as Taj) with knowledge and financial assistance, as required. We would be pleased to react positively to any government request for technical and financial assistance. We are particularly glad to have contributed in this report as further support to the melamine manufacturing companies (such as Taj) being introduced by the authorities.