What Is Management by Exception?

Management-by-Exception is introduced from management to leadership, which means that leaders should use their main energy and time to deal with the first emergence of fuzzy and random non-procedural issues that need to be dealt with immediately. For recurring decision-making objects, the decision-makers have fixed or routine procedures to deal with, that is, the routine. Because professional managers are expected to be within the control range, professional managers can often use these routines. The processing method is procedural and the subordinates are authorized to handle it, but not the professional manager does not deal with the procedural decision-making.

Exception management

Management-by-Exception is introduced from management to leadership, which means that leaders should devote their main energy and time to

About exception

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Regardless of manual management or computer assistance, the response and resolution of exceptions will depend on the following four key factors: (1) timely perception and confirmation of the occurrence of exceptions; (2) exception information in the enterprise (relevant departments) (3) Pre-arranged business rules for dealing with exceptions; (4) Preventive management of exceptions.

Exception management

During the implementation of ERP software and system, the above-mentioned four measures for responding to exceptions must be provided. ERP software should have a mechanism to find and confirm exceptions in a timely manner and facilitate communication, properly incorporate the business rules for dealing with exceptions into ERP software, and add the necessary steps to prevent exceptions. However, various measures of management exception will inevitably increase the redundancy of the production management process, increase the reserves of resources and overproduction, increase the complexity of software and its implementation, which will increase costs and adversely affect the company's finances. Therefore, it is necessary to take positive measures only when there are frequent and significant exceptions, and the effect of improving customer satisfaction or retaining customers is obtained. Therefore, the response and management of the exception should be moderate. It is unreasonable for some companies to try to prevent accidental events and make the rules or software extremely cumbersome.