Controlling

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Department of Economics, Management and Humanities

Synopsis:

The aim of the course is to present Management Control as a modern approach to Management of Enterprise, based on the Process and Activity Based Management which supports innovative changes by the application of Project Management principles. The focus is on the integrative potential of Management Control in the Management of Enterprise and on the key role played by Project Management. Special attention is paid to technical-financial integration and its impact. The emphasis is on Project Management of innovation processes, which guarantee the company not merely to survive, but also to achieve high performance. The computerized models are used for presentation key principles, procedures and also key links between the controlled entities and used managerial tools.

Requirements:

Regularly attending on the seminars is required and the attendance on the lectures is strongly recommended. Point system during the term is applied to estimated and motivated students to the continuous work during the term. The points are granted according to activities during the seminars, to each presentation, to in time finished cases, to 3 partial tests in the term and to one final test and according to the quality of the semestrial work. To be credited requires to gain at least 50 points and create and defended semestrial work that is the set of solved cases. The concluding exam is in the form of debate, firstly on the way in which the goals of each of the case is fulfilled and secondly is about the student's ability to prove the understanding of management control principles, methods and techniques.

Syllabus of lectures:

1. Course objectives and rules. Controlling (Management Control-MC) as the way to manage Enterprise. Convergent Controlling Concept - CCC. Controlling thinking. Role of integration in Management Control. Basic entities in Enterprise Control.

2. Cost Control as the part of Management Control - II. Key links inside the Cost Control. Models presentation.

3. Cost Control as the part of Management Control - I. Cost as the consequences of managerial decision making. Cost as the integration factor in MC. Models presentation.

4. Methods and techniques of Cost Control. Hour cost tariff method and its alternatives. Other costing methods. Costing structure. Cost consequences of different financing of investment. Cases and models presentation.

5. Integrative role of planning system 3th and 4th view of CCC. Integration in planning system. Models presentation.

6. Managerial tools-I (5th view of CCC) and the application with the emphasis on their integrative features. Financial calculations in MC. Risks and its inclusion in calculations. Models presentation.

7. Managerial tools-II and the application with the emphasis on their integrative features. Activity and Process control approach. Other managerial tools. Models presentation.

8. Managerial tools-III and the application with the emphasis on their integrative features. value chain. Target Costing. Other managerial tools. Models presentation.

9. Managerial tools-IV and the application with the emphasis on their integrative features. Balanced Scorecard. CRM. Other managerial tools. Models presentation.

10. Performance management due to MC thinking and applying. How to construct the measures (KPI).The role of standardization and formalization (6th view of CCC). Ways of the learning and learning up (7th view of CCC).

11. Integrative features of MC (4th view of CCC). Content and formal integration. Technical-financial integration. Other integrative levels. How to fix integrative links into MC. Quality information concepts (J. Vysusil, J. Martin).

12. Debate to key points of the course. Models presentation.

13. Summary. Recommendations. Conclusions.

Syllabus of tutorials:

Exercise-1: Introducing Assignment-1: (a) Specification of the Model enterprise and its Process scheme + (b) Controlling line (spiral). Entrance (introducing) test of the knowledge.

Exercise-2: 1. Assignment-1: presentation by students. Its analysis with the emphasis on controlling features of the management control. Introducing Assignment-2: Allocation of the Resources to the Activities and Capacity Plan.

Exercise-3: Assignment-2: presentation by students. Its analysis with the emphasis on fulfilling all tasks of the Assignment.

Exercise-4: Assignment-2: presentation by students. Its analysis with the emphasis on fulfilling all tasks of the Assignment. Introducing Assignment-3: Drafting of the Operational Budget in the sense of the ABM (on the level of the Activities). Test-1.

Exercise-5: Assignment-3: presentation by students. Its analysis with the emphasis on fulfilling all tasks of the Assignment. Introducing Assignment-4: Drafting the Costing structure for products in Return-Cost form.

Exercise-6: Assignment-4: presentation by students - 1. part. Its analysis with the emphasis on fulfilling all tasks of the Assignment. Test-2.

Exercise-7: Assignment-4: presentation by students - 2. part. Its analysis with the emphasis on fulfilling all tasks of the Assignment. Introducing Assignment-5: Cost and financial evaluation of the investment development project.

Exercise-8: Assignment-5: presentation by students. Its analysis with the emphasis on fulfilling all tasks of the Assignment. Introducing Assignment-6: Suggestion for the increasing of the Enterpise + Term project completion.

Exercise-9: Assignment-6: presentation by students - 1. part. Its analysis with the emphasis on fulfilling all tasks of the Assignment. Test-3.

Exercise-10: Assignment-6: presentation by students - 2. part. Its analysis with the emphasis on fulfilling all tasks of the Assignment.

Exercise-11: Final test.

Exercise-12: Evaluation of the final test. Additional presentations.

Exercise-13: Evaluation of the course results. Crediting.

Study Objective:

The aim of the course is to present Management Control as a modern approach to Management of Enterprise, which supports innovative changes by the application of Project Management principles. The focus is on the integrative potential of Management Control in the Management of Enterprise and on the key role played by Project Management. Special attention is paid to technical-financial integration and its impact. The emphasis is on Project Management of innovation processes, which guarantee the company not merely to survive, but also to achieve high performance.

For presentation and explanation key principles are used solved cases and prepared excel's models that illustrate the key integration links and their serving by selected managerial tools. The course follows up to previous courses namely in the area of management, project management and financial management. This course is also the major prerequisite for following course on Project of Innovation of Enterprise Management Control System.

Students prove gained knowledges and ability to solve the problems on cases, which are linked with their model enterprise, suggested either from industrial or project or engineering or IT area. All cases are presented and discussed in interaction with other students and with the lector on the seminars to get feedback. The students work in 2-4 members teams.

Final solutions of cases in the form of the report (.docx), presentation (.pptx) and calculation modul (.xlsx) is basic condition to be credited. The way in which way (with which managerial tools and with using which KPI) the goals of each of the case is fulfilled is estimated also during the final classifying exam debate. The other part of final classifying debate is ability to prove the understanding of management control principles, methods and techniques. They are also written three partial tests and one final test to verify the ability to apply the basic principles and managerial tools, during the term. During the tests the work is strictly individual.

Study materials:

Basic Bibliography:

Zralý, M.: Pracovní podklady ke kurzu (prezentace, slajdy, řešené úlohy) v elektronické formě

Zralý, M.: CRPP_textový podklad.pdf

Zralý, M.: Vývoj pojetí controllingu, Controlling, 1/2003, str. 3-9, ISSN 1801-6251, vydává Společnost pro controlling a podnikové řízení

Zralý, M.: Manažerské využití hodinové nákladové sazby, Controlling, 2/2008, str. 5-14, ISSN 1801-6251, vydává Společnost pro controlling a podnikové řízení

Zralý M.: Řízení nákladů - Sbírka úloh, skripta ČVUT (částečně)

Other Recommended bibliography:

Baťa, T.: Úvahy a projevy, IŘ, 1993

Brealey, R.A., Myers, S.C.: Corporate Finance (česky: Teorie a praxe firemních financí), John Wiley & Sons, (česky: Computer Press, Praha)

Cokins, G.: Activity-Based Cost Management: An Executive Guide, ISBN: 0-471-44328-X, John Wiley & Sons, 2001

Cokins, G.: Performance management: Finding the Missing Pieces (To close the gap), John Willey & Sons, Inc., 2004

Davila, T., Epstein, K. J., Shelton, R.: Making Innovation Work, How to Manage It, Measure It and Profit from It, Pearson Education Inc., Wharton School Publishing

Drucker, P.F.: The Essential Drucker, Harper Collins Publishers Inc., N.Y., 2005

Eschenbach, R.: Controlling, Schäffer-Poeschel Verlag, Stuttgart, 1996, česky 2000

Horváth P.: Controlling, Vahlen München, 2002, ISBN 3-8006-2731-0

Kaplan, R.S., Norton D.P.: Alignment, Harvard Business School Press, Boston, 2006

Kaplan R.S., Anderson S.R.: Time Driven Activity-Based Costing, Harvard Business School Press, Boston, 2007

Král B. a kol.: Manažerské účetnictví, Management Press, Praha, poslední vydání

Zralý M., Profota L.: Jak jsou řízeny české firmy? Výsledky benchmarkingového projektu „Manažerská navigace“, Controlling, 4/2003, pp. 3-7, SCPR

Zralý M. a kol: Controlling a manažerské účetnictví jako nástroj integrace v podnikovém řízení, závěrečná publikace shrnující výsledky stejnojmenného projektu, stran: 239, ISBN: 80-01-03362-7, Vydavatelství ČVUT v Praze, 2005

Other reference will be done on the lectures.

Note:

Further information:

https://moodle.fel.cvut.cz/courses/B1M16CTR1

No time-table has been prepared for this course

The course is a part of the following study plans:

• Electrical Engineering, Power Engineering and Management - Management of Power Eng. and Electr. (compulsory elective course)