control function in a manufacturing business

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 4-5 pages in length excluding the title page and reference page.   

Create a title page with a title, 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. 

(Look at table in document)

Use the following headings and instructions to complete the project:

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.

The body of the paper will cover the following:

 Controls

• Explain what control means in a business setting.  
• Explain why Lacks Tracks must be concerned with the actual production metrics at its plants.

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. 
• 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. 
• 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. 

Total Quality Management 

• Explain why the implementation of a Total Quality Management (TQM) program could improve  operational efficiency at Lacks Tracks.  

Conclusion

Create a concluding paragraph.  The conclusion paragraph highlights the major findings covered in the paper. 

References:

12

2%

3%

2.50%

2%

1%

0.50%

0.75%

4

2

1

3

1.50%

0.75%

3%

2%

1.90%

Metrics	Standard	Maryland	Delaware	New Jersey	Texas	Alaska
Total Cost to Manufacture (per unit)	1 3 , 5 00	15 , 2 50	1 4 ,100	12 , 7 50	1 6 ,000	14,250
Manufacturing Cycle Time (time to complete single vehicle – in hours)	15	1 8	16		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	4%		1.90%
Average Production Downtime		0.50%		1.50%			0.75%
Training Time (hours per month)	8	6		3	5	7		4
Shipping Problems/Damage (per 10,000 units)		1		2
Safety Incident per Employee	2.25%
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%

Sources:

Why It Matters: Control

Control in the Business Setting

The Control Process

Levels and Types of Control

The Need for a Balanced Scorecard

Financial and Nonfinancial Controls

Putting It Together: Control

https://asq.org/quality-resources/total-quality-management