What is Feedback Control
“The measurement of the difference between planned outputs and actual outputs achieved and modification of subsequent action or plan to achieve future required results.”
Primary feedback is reported to line management in the form of control report, comparing actual and budgeted results to make necessary adjustments without the involvement of higher management.
Secondary feedback where feedback is sent to higher management to change positively after reviewing.
How it Works
Company A has received twenty orders to stitch suits. It is planned that suits will be stitched with the cost of Rs. 800/. and profit of Rs. 200/- will be charged, with a total cost of Rs. 1000/. per suit but the actual cost incurred was Rs. 890/- due to the instant purchase of fabric at the higher price from a new supplier when regular supplier went bank corrupted. By implementing feedback control, it is decided to evaluate (regarding all risks) supplier first before making a regular contract for the purchase of fabric.
Why it Matters
An organization must be controlled to keep it on track or to allow it to change safely. Control is dependent on receiving and processing information in the form of feedback or feedforward control.