O’ Reilley Associates

Group 14Dimple Singh 20081014Mayank Gaur 20081029

Rohan Sharma 20081044Vishnu Mangal 20081059

Case Facts Time Zone – 1990’s

Major Characters –Anil Chitkara, Chairman, president and treasurer

Organization Structure

PresidentChairman Treasurer

President

Chairman Treasurer

Major Issue Profitability T & D Corporation’s

account

Management Control System

Best suited Management Control System for O’Reilley could be “Control of Operations”

Preparation of project plan• Scope• Schedule• Cost

Communication to employees about the plan

Management Control System

Important to fill the time sheets Timely reports Comparison of reports Deviations can be measured

Anil Chitkara’s report Issues pertaining to Income Statement Cost of direct payroll was 88.2%

(100*136,250/154,500) of revenue, in contrast to be less than 55% for being profitable.

It was unclear why direct payroll under art category was charged; rather artwork was performed by T&D itself.

It is unclear on what basis such a low commission & fees was charged to the client.

Anil Chitkara’s report - Recommendations

Commission and fee should be based on billing hour plus expenditure plus commission basis. And commission should be around 15%

Learning Outcomes We have learned that how

management controls system in service industry differs from manufacturing industry.

In service industry primary assets are Human resources so more importance is given to employees work hour.

Thank You