Controlling

Project 4 (Week 7) – Controlling 

Purpose 

In this project, you will gain an understanding of the control function in a business setting.  You will compare actual performance with standards, and measure the progress toward the organizational goals, addressing any deviations 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 3-4 pages in length excluding the title page and reference page.  Write clearly and concisely. 

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 a new electric-car produced by Sleek Motors.  The table was created from data supplied by the company’s entire production department managed by Isaac Newton, as a means of controlling production output.   You recently joined the production department as a quality assurance associate after grading with a degree in business.   Your manager, Tomas has asked you to do an analysis on the first year’s production results.  Tomas indicated that this information will be used by the Vice President in his evaluation of areas of improvement, change, or processes used by the production department in the production of the mini-car.  The company aims for the highest possible quality products for consumers. 

The chart below describes the standards set by the department and the results for each branch of Sleek Motors.  A comparison of the standard to the results allows the reader to form conclusions about the success or failure of the production department to meet the goals envisioned by the company. It also allows the reader to recognize patterns from the data from which conclusions can be drawn as to the relationship between elements (e.g. cost expended vs time expended; those who spent more time had a higher cost).

Metrics	Standard	Fort Wayne	Georgetown	Koenigsegg	Kansas City	Lingotto
Total Cost to Manufacture (per unit)	13,500	15,250	14,100	12,750	16,000	14,250
Manufacturing Cycle Time (time to complete 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 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. 
• Consider writing the introduction last to ensure that all of the main points are covered.

 Controls

• Explain what control means in a business setting
• Explain why Sleek Motors needs to be concerned with the results for the electric-car

 Standard Specifications

• Compare the actual performance with the standards for the electric-car drawing conclusions from what is evident from the data in the table.  Make sure to discuss each standard and explain the results for each branch.
• Analyze the deviations between the branches and the standards for each metric. 
• Determine whether more control is necessary or if the standard should be changed.  Explain the reasoning.

Corrective Action 

• Explain how implementing Total Quality Management can develop solutions to resolve Sleek Motors’ issues with meeting the standards and/or make changes to processes or behaviors.

Conclusion

Create a concluding paragraph.  The Conclusion summarizes the main topics discussed in the paper.

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.