Answer:
A. Concurrent Control
Explanation:
Management control represents organisational effort to set objectives and design adequate monitoring mechanisms to be able to constantly compare actual performance of systems to the set objectives or standards. In situations where deviations are recorded, adequate mechanisms are put in place to measure the level of the deviations and also take corrective actions.
There are three different types of controls that an organisation can employ in its strategic management efforts. They include Feedforward, Concurrent and Feedback Controls. Controls are meaure taken by organisations focusing on
The feedforward control concentrates on input regulation to ensure that predetermined objectives and performance standards are achieved with little or no deviations. Feedforward system is also called a preventive, steering and a predictive system. It ensures that resources such as finance, human and capital resources are adequately regulated.
The feedback system waits for the output of processes to find out if there were deviations in the performance standard set or not. If there were deviations, then controls are put in place to ensure that the next batch of production meet standard.
Concurrent Control on the other hand, is a control system that seeks to ensure that adequate output and performance standard is maintained by regulating ongoing processes to ensure conformity to standard. It is also called the screening or yes-no control. It also requires a close monitoring of the tasks and activities on-going and making relevant queries to stop deviations or minimize deviations
Contours, Inc already knows that the limit of the drill bit is 100,000 holes and if allowed to reach this limit, the out in form of hole sizes will deviate from the standard, it will be smaller than the expected specification. Contours is therefore ensuring that the drill does not get to its limit by changing the bit at 95,000 uses to ensure that standards are met and deviations are avoided.
This is the concurrent control, the yes-no query is this:
Are we at 95,000 drills? If yes, change the drill, if no, continue the drilling
Of course, it will cost Contours more financial obligation because, the drill can still make about 5,000 holes before it deviates but it is a chance the organisation is not ready to take.
