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QUESTION

 Controlling    

Project 4: Controlling

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Instructions

 

BMGT 364 Project 4 (Week 7) – Controlling

Project 4 is due on Tuesday of week 7 at 11:59 p.m. eastern time.

Purpose

In this project, you will gain an understanding of 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.

Outcome Met by Completing This Assignment

  • 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 page and reference page.  

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 being 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 do an analysis of 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 needs to 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 be used to describe to the reader the intent of the paper explaining the main points covered in the paper.  This intent should be understood prior to 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 as needed appropriate in-text citation 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 heading below and in-text citation as required)
  • Explain why Lacks Tracks must be concerned with the actual production metrics at its plants. (Use headings below and in-text citation 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 the headings below and citations and references 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 the headings below and citations and references 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 the headings below and citations and references as appropriate.)

Metrics Table Plant Performance Comparisons

Four Most Significant Deviations

Two Recommended Controls

                                                              Total Quality Management

  • Explain why the implementation of a Total Quality Management (TQM) program could improve operational efficiency at Lacks Tracks.  (Use as needed appropriate in-text citation)

                                                                          Conclusion

Create a concluding paragraph.  The conclusion paragraph highlights the major findings covered in the paper. (Use as needed appropriate in-text citation)

                                                                         References

Review the Paper

Read the paper to ensure all required elements are present.

The following are specific requirements that you will follow.  Use the checklist to mark off that you have followed each specific requirement. 

 

 

 

 

 

Subject Business Pages 3 Style APA

Answer

Controlling

Lacks Tracks Cycles is a multinational corporation that produces an electric powered chopper motorcycle across various states in the US. The company needs improvements in all its branches mentioned in the standard specification. Intuitively, the measurable factor linked to each branch is either below or above the standards that the company has set. As a fact, some of its branches could use various control techniques to create more consistency with the set standards. Therefore, this paper examines the data provided by the Lacks Tracks Cycles regarding the production of motorcycle production department. The paper also compares each of the production plants with the production department of the Lacks Tracks Cycles to the standards that were instructed to achieve. Lastly, it incorporates corrective measures that should be taken.

Controls

            Control plays a critical function in business. From the business perspective, it encompasses advising employees, activities and improving a system to attain goals and maintain safety standards while adhering to regulations and rules set by the external environment (Colledani et al., 2014). Some of the major types of control include operational, tactical, strategic, top down, and non-financial controls (Colledani et al., 2014).

Lacks Tracks Cycles production chart from the first year has certain concerns that must be addressed. The production plants include Maryland, Delaware, New Jersey, Texas and Alaska.  In all the production plants described above, the total number of motorcycle produced are below the set standard apart from that of that of Maryland. With the production of motorcycles below the set standard, it is apparent that depicts that Lacks Tracks Cycles has negative signs in terms of its measurable factors and this could negatively halt its operations in the long run. The whole control process of control comprises of only a few steps that include setting standards, evaluating the performance, comparing performance with standards, examining deviations and instituting corrective actions (Kabeyi, 2019). Therefore, bringing on board control will positively influence profits, organization, as well as, production when carried out appropriately.

Secondly, the findings show that there exist a strong correlations amongst the inappropriate use of resources, as well as, increase in quality control challenges, damages, shipping problems, as well as, safety and health issues. As such, Mennig and Stoeckhert (2013) noted that continuation of this poor quality will consequently cause Lacks Tracks Cycles to loose profits and revenues. This is a consequence of inefficiency brought about by low productivity coupled with mismanagement of resources that consequently increases the operating costs (Sharma, Kumar, & Kumar, 2006). Apart from costs, many issues such as expectations of stakeholders and customers will equally be affected. These individuals will be unhappy when quality standards are not achieved, thereby resulting in a negative image of the company and the organization.

Standard Specifications

             The key factors that have been examined include the cost, the quality control problem, the time it took for production, the training time, dames and shipping challenges, the safety and health issues, as well as, the number of motorcycles that were produced by each manufacturing plant. The standards for each factor was provided for easy comparison between the standards that each production plant intend to attain and the real performance of the various departments. In this paper, five plants would be examined and they include Maryland, Delaware, Texas, New Jersey and Alaska.

            Based on the information provided in the chart, New Jersey had the least total cost to manufacture the motorcycle at 12,750 against the set standards of 13,500. Moreover, it had the fastest manufacturing cycle time of 12 hours against the set standards of 15 hours. Nonetheless, it experienced certain challenges along its production process. First, its defective rate was relatively higher than the standard rate. As a fact, the rate stood at 3.5% against the 2% standard rate. Moreover, it explained the reason for such a large number and this increased rate was because of the time of training. As illustrated in the chart, the standard time set for training is 8 hours but the plant only offered 5 hours for the training. This contributed to the incidences of jump witnessed in the workplace. As shown in the chart, the safety incident per employee for New Jersey is 3% as opposed to the standard one which is 1.5%. The data in the table has equally shown an increase in damage or shipping challenges because the plant records 2 problems against the standard which is 1. Nonetheless, the plant compensates for this challenge by producing 42, 500 units against the set standard of 45,000 units. The plant also uses 77.27% of its resources.

            The next production plant that recorded the least total cost of producing the mini car was Delaware. It recorded 14, 100 against the set standard of 13,500. Nonetheless, it is evident that the plant equally experienced certain challenges. First, its duration to produce the car stands at 16 hours against the standard of 15 hours. This difference is minimal but more apparent in the scrap rate and defective rate. However, the defective and scrape rate stand at 3% and 4% respectively against the standard rate of 2%. This can be related to the time spent on training. As shown in the table, the plant only spent 3 hours per month for the training against the standard of 8 hours. This also increases the damages and shipping incidences since it has been depicted that the plant records 4 against the standard rate of 1. Strangely, the safety incidents are far below the set standards as it is illustrated that the branch has a percentage of 0.75 against the standard of 1.5%. Nonetheless, the least incidents recorded come with more negative effects because the plant produced 27, 000 units against the 45,000 standard.

            The next production plant is Alaska that had the total cost of production of 14,250 against the standard cost of 13.500. Unfortunately, the plant has the greatest defective rate recording a rate of 4.85% against the standard rate of 2%. Nonetheless, its scrap rate is relatively lower than the standard one. The rate stands at 1.90% against the standard of 2%. Moreover, the plant only offer 4 hours of training against the standard training time of 8 hours. The plant also recorded the highest damaged units. Precisely, it recorded 3 units against 1. These damages can be attributed to low hours of training per month. Similarly, the safety incidents stand at 1.90% against the standard rate of 1.5%. However, the units produced matches the standard rate of 45,000 units.

            Another production plant that has the least cost of production is Maryland. This production plant has a total production cost of 15,250 against the set standard of 13,500. Moreover, its production hours surpasses the set standard and stands at 18 hours per car against the set standard of 15 hours per car.  Its defective rate stands at 1%, a figure that is relatively lower than the standard rate of 2%. However, the plant has a scrap rate of 3% and a training time of 6 hours against the standard time of 8 hours. Moreover, its damage units is 2 units and its safety incidents is regarded as one of the highest among the plants. In particularly, its safety incident stands at 2.25% against the standard rate of 1.5%. However, the quantity of units produced is 43,000 against the standard rate of 45, 000.

            The last production plant to be evaluated is the Texas. It has the greatest cost of manufacturing of 16, 000 against the standard rate of 13, 500. Nonetheless, it takes few hours to produce a single car. Precisely, it takes 12 hours to manufacture a car against the standard time of 15 hours. It has one of the least defective rate which is 2.5% against the standard of 2%. Its scrap rate is the same as the standard rate of 2%. On a positive note, it offered the highest number of hours for training of 7 hours against the set standard of 8 hours. Similarly, it’s sitting or damages stand at 1 unit, a figure that is the same as the set standard. Moreover, its safety standard is 2% and produces more units of 48, 000 that is greater than the set standard of 45, 000.

Corrective Action

             Adopting Total Quality Management in some production plants would assist these branches attain the necessary applicable standard. Some of the benefits of Total Quality Management encompass reduced costs, higher productivity, better employee morale, effective cost management, as well as, improved customer retention and loyalty (Munizu, 2013). Some production plants are in need of following the standards with regards to production and cost and for this reason TQM has myriad of solutions that can help them achieve this. Muruganantham, Vinodh, Arun and Ramesh (2018) stated that TQM is a management framework for customer based organization that encompasses clients and employee improvement and retention.

Conclusion

             This paper has examined the data offered by Lacks Tracks Cycles. It has established that there exist negative relationships and findings. The paper has established that there is a connection between the time spent on training, as well as the cost and duration spent producing the cars. The less time dedicated to training the more the time spent in production and the higher the expenses. Moreover, the paper has established that when more time is spent on training, minimal cases of safety, health, shipping and defects are experienced. More importantly, the paper has shown the performance of each plant in terms of their production. It has been established that some plants perform better while others perform poor. To correct the challenges experienced in the production process, the firms should adopt total quality management.

 

 

 

 

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Reference

Colledani, M., Tolio, T., Fischer, A., Iung, B., Lanza, G., Schmitt, R., & Váncza, J. (2014). Design and management of manufacturing systems for production quality. Cirp Annals63(2), 773-796.

Kabeyi, M. (2019). Organizational strategic planning, implementation and evaluation with analysis of challenges and benefits. International Journal of Applied Research and Studies5(6), 27-32.          

Mennig, G., & Stoeckhert, K. (2013). Manufacturing and Machining Methods. Mold-making Handbook (Third Edition): Hanser, 471-606.

Munizu, M. (2013). The Impact of total quality management practices towards competitive advantage and organizational performance: Case of fishery industry in South Sulawesi Province of Indonesia. Pakistan Journal of Commerce and Social Sciences (PJCSS)7(1), 184-197.

Muruganantham, G., Vinodh, S., Arun, C. S., & Ramesh, K. (2018). Application of interpretive structural modelling for analysing barriers to total quality management practices implementation in the automotive sector. Total Quality Management & Business Excellence29(5-6), 524-545.

Sharma, R. K., Kumar, D., & Kumar, P. (2006). Manufacturing excellence through TPM implementation: a practical analysis. Industrial Management & Data Systems.

 

 

 

 

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