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Most bosses of small business make ad hoc decisions sometimes alone without proper planning.

To survive the harsh business environment, all business needs to do SWOT review from time to time so as to develop plans & objectives.

They also should be developing their management to have HOTS abilities to manage changes.

With "Manage by Objectives MBO" discipline, business is inclined to have an Efficient Management Team that can manage on its own without much supervision.




Good Features of MBO

  • Topmost company's objective should be having a Long Life rather than just make a profit.
  • A Vision or Mission statement is also a form of topmost objective.
  • From the topmost objectives, management members should be encouraged to create sub objectives in their area of responsibility.
  • The process for stating an objective should always include looking for alternative solution rather than deciding or selecting one too soon.
  • It is also good to quantify objectives for reporting purposes.
  • Management should then be encouraged to come up with SOP to meet these objectives.
  • Reporting should then be designed to flag out the favorable or adverse variances from this objectives or targets.

      Like us Be thrifty in your planning & execution


How pro Account work with MBO.

With MBO guiding the Accounting work and the staff, the following can be achieved

  • Work is done by staff with much less supervision as they understand what is wanted using their thinking skill.
  • Human Resource numbers and its costs will be low as their work is integrated with the reporting System.  They work smart not hard eg in smart checking of input data. 
  • All operation staff account to Accounting Reports that are tied to objectives.  This ensure  high productivity as they members of the organisation know their scope of work and the standards required of them and reasons why.

3 Essential Start Right Steps  New Biz Start Up?   go

 Mistakes in Start Up comes from lack of awareness & depth 潜-

  • Accounting & Control Function has a very steep learning slope, software is an inanimate entity thus need suitable HR & SOP to drive it.    You are probably too busy & have no time to learn, no allowance for mistakes and limited capacity for so many jobs, the effective way is get partnerlt & leap frog leapfrog.
  • If you thinking of starting up a new food business you may lnkicon visit here to get practical ideas for this business.

1 icon  Must Pass:  Basic Economic Viability - Return on Investment ROI%

Under Stress Test   

  1. Sensitivity analysis to fluctuation of key parameters  (material supply chain, HR dependence, other key dependencies, detrimental contingent events)     
  2. Tech Edge (don't be impressed by the Hardware, necessary Software is key to drive it) 
  3. Worst Case scenario .. What if?     
  4. Breakeven point analysis of the sensitive parameters
  5. Life of project analysis .. making money is a longer term discounted cash flow study
  6. Adequate Financial resources to support the down cycles (the hat may be too big for your head)

2 icon   Definition of Mission & Objectives

  • Essential basis for Management Control (else no control possible)
  • Clear quantified objectives is required to design the Data Collection & Reporting System to achieve HR Accountabiliy.  

3 icon  Defining IT & Data support to execute Financial Control

  • Based on objectives set, determine the specifications of the core financial control system. 
  • A Chart of Accounts based on concept of HR Accountibility is essential.
  • Next define the necessary HR support following the guidelines in this website.

 Activity Control System   2 Start Up Cases @Front End  

*Note:  Get Tailor-Made tailoror at least highly Customized System for this mission critical control; a standard accounting App is not enough.

Remember to use the leap frog leapfrog strategy based on a trusted and proven support to start right.

1a  Process Activity Control:   
                 Normal accounting system can't do this Activity job.
                      This has to be tailor-made tailorto your needs


  • Process Analysis using i) material quantity balance, ii) energy balance, iii) process time & quantity monitoring  (iv) bottle necks & capacity definition; finally defining the points of control for effective operation.   There must be a production log with record of timestamp and quantities.  timestpweighing
    A Process Analysis is necessary to design the system including feedback interface from shop floor.
  • Semi automatic material handling analysis is necessary to optmally balancing HR resouces needs
  • Equipment wear & tear analysis to reduce plant breakdown with scheduled preventive maintenance






Effective Production Record 

Examples of Production Log record to really control processing in Kaolin Plant see below.  Take note that for a 1,000 tonne per month feed material, it is not a small tonnage of 40.

2a  POS Point Of Sales System   
Don't buy system then make your plans from it .. plan your operation then tailor-make your supporting system

Best to Tailor-made tailorthe IT device & architecture to your operation needs

  • Hand held input device eg Windows based or just DeskTop 
    A standalone system can be the most simple configuration
  • Use LAN or / &  Wireless to connect & transfer data to printers to processing stations and to Core PC
    You may want to group the items ordered to be sent to processing stations
  • Provide for extensive order items attributes for more effective operation.
  • An admin printer is useful for periodic reports for improvement of marketing







Best to tailor-made tailorthe POS data processing system after you determine your front & back end operation requirements eg how to check

  • Visual List or Print Out for checking progress of ordering process
  • Provide wait & queueing to process the flow of orders
  • Provide for Receivables setup, interface & control for Wallet Payment and Delivery Service eg Panda
  • Establish the seamless interface with the final accounting system
  • Ensure all best practices of Data Safe are established.

2a  POS Hardware    Prices & brand are indicative for your budget, it is from online purchase eg Lazada


 This is to be the core PC running on Window 10 because following attributes (price is RM685 if SSD is 64G)

  • Touch Screen for more meaningful portability eg a mobile order taking staff.
  • This laptop has all connectivity eg WiFi, LAN.
  • It can act as a StandAlone PC with itself as the only input point;
    one Admin Wifi printer can be availiable to print eg Queue Status List to control ordering
  • Wifi and LAN will not be used for complete protable Stand Alone simplicity.
  • An alternative to a LapTop, a Desk Top can be used which is then not portable.

This is the ideal setup for a simple stall eg heavy volume Coffee Stand


If you need a complicated system (no longer a standAlone) .

  • You start with having more input devices; 8 inch Win Tablets are light to be hand held.


Still on a complicated system with more input devices

  • You will require a Wireless router for all input devices to connect to the main database.


System gets more complex if you want to group items and sent to printer at various kitchen process center .

  • Then you need to have LAN thermal paper printers
  • Visual display is not as good as a simple printer out, queue tracking with serial number.

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Bosses' Worries

  • Cash Flow, AP/AR Aging, CBT
  • SST/GST Accounting & Returns
  • Salary/Daily Workers Accounts
  • Tax Estimation CP204/500
  • Operation/Project: Gross Profit%
  • Staffing / HR Turnover Problems
  • Legal Deadline, Comply & Fines
  • Government Audit (Tax/GST/SST)
  • Operation Control (HR/Reports)
  • Future of your Business . SWOT

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Sep 2020: This is exactly 3 years since this website is first launched.  We rebuild this to reflect our new experiences, knowledge and outlook. As always, let us know if there are mistakes.

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