O’ Reilley Associates

Group 14
Dimple Singh 20081014
Mayank Gaur 20081029
Rohan Sharma 20081044
Vishnu Mangal 20081059
 Case Facts
 Time Zone – 1990’s


Major Characters –Anil Chitkara,

Chairman, president and treasurer



Organization Structure
 Major Issue
Profitability T & D Corporation’s
account
 Management Control
System
Best suited Management Control
System for O’Reilley 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 Chitkara’s 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 Chitkara’s 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