Compare the actual performance with the standards for the electric-car.
This paper intends to explain the benefits of controls in an organization, and they help in ensuring that the organization is working to achieve its goals. The article also provides a detailed explanation of why Sleek Motors needs to be concerned with their electric cars. It indicates the mistakes made during the production processes and the correction actions that should be taken. The paper also compares the actual performance with standards for electric cars and concluding facts presented on the table. Finally, this paper aims at explaining the benefits of Total Quality Management to organizations such as Sleek Motors.
Control is a general technique used to guide the operation of an apparatus, machine or a system. In a business setting, control includes the procedures and activities that monitor, lead and protect a business. Power is among the four primary managerial functions together with leading, organizing and planning. One example of controls organization use is financial policies. These economic principles may not be communicated to all members of the organization. However, they exist even in smaller firms. These controls assist in preventing fraud and errors besides ensuring that the organization’s goals are being met. Many organizations have implemented top-down control. The top-down control ensures that important decisions are made by high-rank executives and information flows down to the lower-level workers of the firm.
The three major types of organizational control include proactive, feedback and concurrent powers. Implementing regulatory controls involves formulating rules, procedures and other essential protocols which help direct the work performed by workers in the organization and other vital processes such as monitoring work (Lumen Learning, n.d). Organizational control plays a crucial role in management because they enable managers and other employees to detect errors and deviation from set standards so that corrective actions may be taken to ensure that the firm achieves its goals. The primary function of organizational control is to ensure that particular roles in an organization are performed according to the set standards.
Sleek Motors should need to be concerned with results with the result for the electric car because most of the vehicles produced did not meet the standards the organization set. The rigid implementation of the control process affected the production of the cars. It seems that the management at Sleek Motors over-relied on the set standards and over-relaxation led to the relaxation in supervision and allows some members of the organization to avoid following the set procedures. The organization failed to meet its set standards because in many cases, employees always follow the set rules when under strict watch. However, if they are left without supervision, they may fail to follow the set standards strictly. The organization should also worry because it seems like the organization formulated and implemented the wrong controls. The faulty controls may expose a firm to various errors and fraud. In this case, Sleek Motor’s authorities presented the organization to multiple mistakes during the production of the vehicles. It is always important to set realistic controls which can be easily met by the organization during the production of its goods and services. Sleek Motors should worry because the set standards did not enable it to produce electric vehicles matching the set criteria.
According to the Sleek Motor’s the standard cost of producing the electric vehicles was set as 13, 500. However, this was not the case during the actual product before the cost of production was more than the set standards, and it was less in some branches. In branches such as Fort Wayne, Georgetown, Kansas City and Lingotto, the firm spent more money on the production of the electric cars. In Koenigsegg, the cost of production was lower than the set standard cost. This indicates that there was a problem with the standard price because all the branches did not meet the standard cost of production. Coming to the manufacturing time, the firm set the standard manufacturing time to be 15 hours for a single-vehicle. No branch managed to produce a single vehicle according to the usual time. Some branches spent more time manufacturing an only car while others spent less time on a single-vehicle. This lack of uniformity indicates that there was a problem with standard time. The organization should have put into consideration various issues such as the equipment and workforce in the branches before settling on a specific time.
The firm also set the yield to be at 98%. However, this yield was not met by any branch. Some branches’ yield was higher than the standard yield and lower in some departments. The organization should set realistic returns to ensure that it meets the production of all its branches. Sleek Motors also expected that only 2% of all the vehicles produced were to be defective or recalled because of various issues. The percentage was higher in some branches such as Lingotto and lower than the set standard in Fort Wayne. The Scrap rate also differed in different departments with some branches experiencing higher scrap rate while others are experiencing a lower scrap rate. Sleek Motors also expected to produce 45, 000 vehicles each year in all its branches; however, the result was below the expectation in some branches and above expectation in other branches. From the results in the table, Sleek Motors should consider changing the organization’ standards. Before formulating a number of setsstandards, the firm should put various aspects into consideration to ensure that the standards are met. Some branches were making multiple mistakes during production standards. For example, Lingotto cost of production was slightly higher than the standard price of production, the firm managed to manufacture its vehicles in less than the usual time, and it was slightly below the standards yield. However, the branches’ recall rate was higher than the other branches. Therefore, the organization should examine all its branches and ensure that they establish realistic standards that can be met by all its branches without straining or making mistakes to meet the standards.
Developing Total Quality Management can help the organization develop a solution I solve its problems in various ways. Total Quality Management ensures that the organization can monitor and modify tasks to maintain a desirable level of quality or excellence(Lumen Learning, n.d). Developing Total Quality Management will ensure that the organization can monitor the production processes in all its branches to ensure that every car produced meets the set company’s standards.
Controls play an essential role in the success of an organization. Companies should ensure that they implement controls in various departments and in the overall organization to guide and monitor the firm. Controls help in providing that errors are detected before they affect the organization’s processes. For example, in the case of Sleek Motors, the firm should have implemented Controls in its production processes to ensure that all its branches detect errors during the production process and take corrective action to ensure that the production process is not affected by the error.
Reference
Lumen Learning (n.d). Waymaker Principles of Management