ME1309 Industrial Management Control for I 6.0 credits

Industriell ekonomistyrning för I

The aim of the course is to provide you with the ability to understand, design and handle methods in the area of management control for industrial organisations.

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Course information

Content and learning outcomes

Course contents *

The course gives a broad overview of financial control in industrial enterprises and its relation to the environment in which the company acts. To plan and control the performance of the organisation at different levels, efficient control is required, based on the organisation's value creation strategy and the individual co-worker´s behaviour. A central field in the course therefore deals with how to implement a general strategy and use it to control the activities.

The course consists of two parts.

During the first part of the course, students will learn to analyse and interpret financial reports. The students will acquire knowledge on analysing and understanding financial consequences of strategic and operational decisions. A distinction is made between use of financial reports for planning and for measuring and following up results. The students will carry out financial analyses of real companies on the basis of accounting information found in the financial reports (the profit and loss account, the balance sheet and the cash flow analysis). Different categories of key indicators are introduced and used to compare companies, e.g. profitability measures.

The second part of the course focuses on management control. In this part, the students will work based on the analyses that were done during the first part of the course and design control systems to create sustainable profitability. In order for this to happen, the management must ensure that the activities are carried out according to established plans and that strategic aims are achieved. An important control mechanism to achieve this is the organisational structure that consists of different responsibility units in different parts of, and at different levels in the company. Another central field in the second part of the course is the control process. Which measures are used in the company and how well do these measures catch central aspects of the activities? How does one know when performance is ”good”, i.e. what is the performance compared with? Which reward systems are used by the company to create a desirable behaviour, and to which indicators are rewards connected? Finally, in what way does one ensure that the correct investments are made to satisfy the company's strategic goals?

Intended learning outcomes *

The course gives a broad overview of financial control in industrial enterprises and its relation to the environment in which the company acts. To plan and control the performance of the organisation at different levels, efficient control is required, based on the organisation's value creation strategy and the individual co-worker´s behaviour. A central field in the course therefore deals with how to implement a general strategy and use it to control the activities.

On completion of the course, the student should be able to:

  1. Calculate, account and analyse important financial and non-financial key indicators as performance measurements.
  2. Quantitatively and qualitatively evaluate and analyse the financial position of an industrial enterprise and identify improvement measures.

  3. Based on scientific studies, describe and account for the different aspects of the strategic financial control

  4. Describe and interpret the financial development in an industrial company from the company's financial situation, based on concepts from the subject of financial control.

  5. Qualitatively compare, evaluate and discuss different types responsible units of  in a company .

  6. Account for and justify when different methods for internal pricing are appropriate.

  7. Quantitatively and qualitatively evaluate and analyse different financial and non- financial performance measures, standards, budgets and incentives.

  8. Account for behavioural aspects on financial control and the need to adapt the financial control to the situation and present and discuss ones conclusions and the knowledge behind these, as well as propose investments and improvement measures.

Course Disposition

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Literature and preparations

Specific prerequisites *

ME1314 Introduction to Industrial Engineering and Management completed

Recommended prerequisites

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Equipment

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Literature

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Examination and completion

Grading scale *

A, B, C, D, E, FX, F

Examination *

  • SEM2 - Seminar assignment, 1.5 credits, Grading scale: P, F
  • TEN2 - Exam, 4.5 credits, Grading scale: A, B, C, D, E, FX, F

Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.

The examiner may apply another examination format when re-examining individual students.

Opportunity to complete the requirements via supplementary examination

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Opportunity to raise an approved grade via renewed examination

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Examiner

Mohammad Akhbari

Further information

Course web

Further information about the course can be found on the Course web at the link below. Information on the Course web will later be moved to this site.

Course web ME1309

Offered by

ITM/Industrial Economics and Management

Main field of study *

Technology

Education cycle *

First cycle

Add-on studies

The socond level course ME2097 Strategic Management Control overlaps this course.

Contact

Mohammad Akhbari, 08/ 790 67 47

Ethical approach *

  • All members of a group are responsible for the group's work.
  • In any assessment, every student shall honestly disclose any help received and sources used.
  • In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.

Supplementary information

Replace ME1301 (4D1124).

Only for CINEK.

Not for exchange students.