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Control Mechanisms and the Boeing Corporation

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Control Mechanisms Paper and The Boeing Corporation

Annette Bauer, Latresha Fowler Ockletree, and Paula Prasatik

MGT/330

Mark Hardee

October 4, 2010

Every organization utilizes some form of control to maintain there organization. Boeing is no exception. Some of the controls that Boeing uses are: six sigma, budgetary controls, Employee Incentive Program (EIP) and Employee Assistance Program (EAP). Control mechanisms are used by organizations to assist in regulating procedures. This paper will identify the way these controls are applied, compare and contrast them, determine the effectiveness of them, examine the positive and negative reactions to the use of these controls and explain how they impact the four functions of …show more content…

Boeing states the following in a company newsletter released August 27, 2009:

Therefore, costs previously recorded for the first three flight-test airplanes will be reclassified from program inventory to research and development expense, resulting in an estimated non-cash charge of $2.5 billion pre-tax, or $2.21 per share, against third-quarter results. This charge will have no impact on the company 's cash outlook going forward.

The comparison, effectiveness, and positive versus negative reactions to the use of these control mechanisms are as follows:

• Six Sigma affords the avoidance of a “hit and miss” approach by breaking into measurable bites an entire chain of events leading to a problem, and then coming up with a corrective action (Roff, 2005, p. 1). According to Bateman and Snell (2009, p. 582), the acceptable failure rate is “99.99966 percent level of accuracy.” Although Six Sigma is a powerful control mechanism, it takes about 2-3 years from the time of implementation until its development is fully realized. It is a method that is most useful to a company when it is tailored specifically to a company’s processes. • Feedback affords the necessary communication between varying units and departments but

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