Importance of the control function in a manufacturing business.

 

Understand the importance of the control function in a manufacturing business. You will compare actual performance with desired production standards, measure progress toward company goals, and address deviations in performance through corrective action.

• Develop measures and assess outcomes against plans and standards to improve organizational effectiveness.
How to Set Up the Paper
• Create a Word or Rich Text Format (RTF) document that is double-spaced using 12-point font. The final product will be 5-6 pages in length, excluding the title and reference pages.
• Create a title page with a title, date, course number and section, your name, and the instructor’s name.
Scenario
The following chart displays the results of the first year’s production of the, Lacks Tracks Cycles, an electric-powered chopper-style motorcycle produced by Lacks Tracks Cycles to compete with Harley-Davidson’s Electra Glide. The metrics table below was created from data supplied by Lacks Tracks Cycles five (5) plants. The purpose of the table is to provide data for management to decide what controls and actions are needed to increase production efficiency.
You recently joined the Lacks Tracks Cycles’ headquarters staff as a quality assurance associate. Your manager has requested you to analyze the first year’s motorcycle production results. This information will be used by management to evaluate and improve overall production efficiency.
Lacks Tracks Cycles is known for producing high-quality products at reasonable prices. They plan to compete against Harley’s top-end model by developing superior production efficiency that will allow them to price significantly below Harley Davidson’s Electra Glide model.
The chart below lists the desired production standards and the actual production metrics for each stage of the electric motorcycle’s manufacturing process that must be completed to determine the overall production efficiency at each of Lacks Tracks Cycles’ five (5) production facilities.
A comparison of the production standard to the actual production outcomes using all the relevant metrics allows management to determine which of its facilities is the most efficient producer of the electric motorcycle. This knowledge will help Lacks Tracks Cycles’ management team to determine what controls need to be put into place at their various production plants to match the production efficiency of their most efficient plant. More efficiency means higher production at lower per unit (cycle) costs.
Metrics Standard Maryland Delaware New Jersey Texas Alaska
Total Cost to Manufacture (per unit) 13,500 15,250 14,100 12,750 16,000 14,250
Manufacturing Cycle Time (time to complete a single vehicle – in hours) 15 18 16 12 12 14
Yield (percentage of cars produced to specifications first time without rework) 98% 99% 97% 96.50% 97.50% 95.15%
Defective Rate/Recall Rate 2% 1% 3% 3.50% 2.50% 4.85%
Scrap Rate 2% 3% 4% 2.50% 2% 1.90%
Average Production Downtime 0.50% 1% 1.50% 0.75% 0.50% 0.75%
Training Time (hours per month) 8 6 3 5 7 4
Shipping Problems/Damage (per 10,000 units) 1 2 4 2 1 3
Safety Incident per Employee 1.50% 2.25% 0.75% 3% 2% 1.90%
Number of units manufactured per year 45,000 43,000 27,000 42,500 48,000 45,500
Utilization Rate (Capacity rate facility is utilizing during available production time) 81.82% 78.18% 49.09% 77.27% 87.27% 82.73%
Use only the BOLDED centered and left-justified headings to write your paper.
Introduction
• Write an Introduction paragraph. The introduction paragraph is the first paragraph of the paper and will describe to the reader the intent of the paper, explaining the main points covered in the paper. This intent should be understood before reading the remainder of the paper so the reader knows exactly what is being covered in the paper. The introduction is often written after the paper is completed. (Use in-text citations, as needed, and include the references in the Reference section.)
The body of the paper will cover the following:
Controls
• Explain what control means in a business setting. (Use headings below and in-text citations as required.)
• Explain why Lacks Tracks must be concerned with the actual production metrics at its plants. (Use headings below and in-text citations as required.)
Control Defined
Importance of Lacks Tracks Production Metrics
Standard Specifications
• Compare the metrics table standards to the actual performance outcomes at each of the five (5) plants and explain your findings for each plant. (Use headings below and in-text citations, as appropriate.)
• Identify the four (4) most important and common deviations from the standards among the plants and explain why this data is important to Lacks Tracks management. (Use headings below and in-text citations, as appropriate.)
• Using course materials, identify and explain two (2) types of controls that could be used by Lacks Tracks management to attempt to correct the deviations from standards at its plants. (Use headings below and in-text citations, as appropriate.)
Metrics Table Plant Performance Comparisons
Four Most Significant Deviations
Two Recommended Controls
Total Quality Management
• Explain why implementing a Total Quality Management (TQM) program could improve operational efficiency at Lacks Tracks. (Use in-text citations, as appropriate.)
Conclusion
Create a concluding paragraph. The conclusion paragraph highlights the major findings covered in the paper. (Use in-text citations, as appropriate.)
References

Sample Solution

The control function is a critical component of effective management in any organization, particularly in manufacturing. It involves setting standards, measuring performance, and taking corrective action to ensure that organizational goals are achieved. By comparing actual performance with desired standards, managers can identify areas for improvement and make data-driven decisions to enhance operational efficiency.

Control Defined

Control refers to the process of ensuring that organizational activities are carried out as planned and that goals are achieved. It involves setting standards, measuring performance, comparing actual performance with standards, and taking corrective action as needed.

Importance of Lacks Tracks Production Metrics

The production metrics provided in the table are essential for Lacks Tracks Cycles to assess its operational efficiency and identify areas for improvement. By comparing actual performance to the established standards, management can:

  • Identify deviations: Determine which plants are not meeting production standards and identify specific areas of concern.
  • Measure progress: Track progress towards organizational goals and identify trends over time.
  • Make data-driven decisions: Use data to inform decisions about resource allocation, process improvement, and performance evaluation.

Metrics Table Plant Performance Comparisons

Metric Maryland Delaware New Jersey Texas Alaska
Total Cost to Manufacture (per unit) 15,250 14,100 12,750 16,000 14,250
Manufacturing Cycle Time (hours) 18 16 12 12 14
Yield (%) 99% 97% 96.50% 97.50% 95.15%
Defective Rate/Recall Rate 1% 3% 3.50% 2.50% 4.85%
Scrap Rate 3% 4% 2.50% 2% 1.90%
Average Production Downtime 1% 1.50% 0.75% 0.50% 0.75%
Training Time (hours per month) 6 3 5 7 4
Shipping Problems/Damage (per 10,000 units) 2 4 2 1 3
Safety Incident per Employee 2.25% 0.75% 3% 2% 1.90%
Number of units manufactured per year 43,000 27,000 42,500 48,000 45,500
Utilization Rate 78.18% 49.09% 77.27% 87.27% 82.73%

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Four Most Significant Deviations

Based on the data, the four most significant deviations from the standards are:

  1. Total Cost to Manufacture: The Texas plant has the highest cost per unit, exceeding the standard by $2,500.
  2. Defective Rate/Recall Rate: The Alaska plant has the highest defective rate and recall rate, indicating quality issues.
  3. Scrap Rate: The Delaware plant has the highest scrap rate, suggesting inefficiencies in the production process.
  4. Utilization Rate: The New Jersey plant has the lowest utilization rate, indicating underutilization of capacity.

Two Recommended Controls

To address these deviations, Lacks Tracks management could implement the following controls:

  1. Statistical Process Control (SPC): SPC involves using statistical techniques to monitor and control production processes. By tracking key metrics and identifying trends, management can detect deviations from standards early on and take corrective action.
  2. Root Cause Analysis (RCA): RCA is a systematic approach to identifying the underlying causes of problems. By investigating the root causes of deviations from standards, management can implement targeted solutions to prevent recurrence.

Total Quality Management

Implementing a Total Quality Management (TQM) program could further improve operational efficiency at Lacks Tracks. TQM is a philosophy that emphasizes continuous improvement, customer satisfaction, and employee involvement. By adopting a TQM approach, Lacks Tracks can create a culture of quality throughout the organization and drive improvements in all aspects of its operations.

Conclusion

The control function is essential for ensuring that manufacturing organizations achieve their goals and maintain competitiveness. By setting standards, measuring performance, and taking corrective action, Lacks Tracks can identify areas for improvement, enhance operational efficiency, and deliver high-quality products to its customers.

 

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