The Comparison of Automated and Manual Control System
The comparison of automated and manual control system
Introduction
Nowadays, with the development of information technology, almost every company has involved in the widely used of computer technology to deal with their daily business transactions. From this point, the control framework has mainly divided into two basic categories: one is manual control which requires an operator to activate or deactivate the control device. Another is automated control which regulates the business activities without much human intervention (Protiviti, 2011). In this section, we discuss the benefits and shortcomings of these two methods and compare them.
Automated control
The standardized, computerised automated control system is no doubt a good choice in terms of the large companies. It can reduce the risk result from the external and internal influences so that the company can save the unnecessary cost (Protiviti, 2011). One of the examples is Nordic bank, which applies more than 5,000 internal and external controls in its processes that dealing with technology, operation and financial. The total yearly saving is about 2,905,000 (Dutta, A. & Dopp, D., 2011).
However, the limitation of automated control is also obvious. Because of the complexity of the application of this system, companies should take special training for personnel so that people know how to use it. This comprises a relatively high cost for the entity.
Manual control
The manual control system is most widely used in the small business because of its simplicity and great sense of control that gives to the business owner. This could be illustrated by using the example like grocery which only carries a small amount of business date to process. For simplicity, the owner can easily keep track with daily business transactions by using a manual system and there is no need for the owner to spend time and money to learn the complex software. Furthermore, the manual control system is also likely to give the
Introduction
Nowadays, with the development of information technology, almost every company has involved in the widely used of computer technology to deal with their daily business transactions. From this point, the control framework has mainly divided into two basic categories: one is manual control which requires an operator to activate or deactivate the control device. Another is automated control which regulates the business activities without much human intervention (Protiviti, 2011). In this section, we discuss the benefits and shortcomings of these two methods and compare them.
Automated control
The standardized, computerised automated control system is no doubt a good choice in terms of the large companies. It can reduce the risk result from the external and internal influences so that the company can save the unnecessary cost (Protiviti, 2011). One of the examples is Nordic bank, which applies more than 5,000 internal and external controls in its processes that dealing with technology, operation and financial. The total yearly saving is about 2,905,000 (Dutta, A. & Dopp, D., 2011).
However, the limitation of automated control is also obvious. Because of the complexity of the application of this system, companies should take special training for personnel so that people know how to use it. This comprises a relatively high cost for the entity.
Manual control
The manual control system is most widely used in the small business because of its simplicity and great sense of control that gives to the business owner. This could be illustrated by using the example like grocery which only carries a small amount of business date to process. For simplicity, the owner can easily keep track with daily business transactions by using a manual system and there is no need for the owner to spend time and money to learn the complex software. Furthermore, the manual control system is also likely to give the
References: Carr, J. & Cohen, G. (2008). Integration of Inventory Control. Retrieved April 26, from http://www.cardiologyhd.com/Inventory-Management/integration-of-inventory-control-systems.html Dutta, A. & Dopp, D. (2011). A Framework for Estimating ROI of Automated Internal Controls. ISAKA, 5, 39. Protiviti. (2011). Making the Business Case for Automated Controls. Protiviti.