O Reilley Associates

Submitted By: Parth Shah (44) CMS DDU - 15

Case Facts
Time Zone 1990s Major Characters Anil Chitkara, Chairman, president and treasurer

Organization Structure
President Chairman
Account Management

Treasurer

Creative Management

Information Management

Media Management

Administrative Management

Productive Management

Major Issue
Profitability T & D Corporations account

Management Control System

Best suited Management Control System for OReilley 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 Chitkaras 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 Chitkaras 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