Project 4: Analysis of Controlling Mini Car Production, BMGT 364

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This report provides an in-depth analysis of the controlling mechanisms employed by Go Fast Autos in its mini car production. It begins with an introduction to controlling in a business context, emphasizing its importance in managing resources, production, and overall organizational performance. The report then examines the standard specifications set by Go Fast Autos for its various branches, comparing the actual performance against these standards across several key variables, including cost, time, quality control, training time, shipping problems, and health and safety issues. A detailed analysis of deviations from these standards is presented, highlighting areas where branches exceeded or fell short of targets. Based on these findings, the report proposes corrective actions, specifically advocating for the implementation of Total Quality Management (TQM) to enhance efficiency, maintain quality, and achieve production targets effectively. The conclusion reiterates the significance of controlling activities and production within a company, summarizing the analysis and recommendations for Go Fast Autos to improve its mini car production processes.
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Project 4: Controlling
(Your Name)
BMGT 364 (section number)
(Instructor’s Name)
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Introduction
Controlling is the process that helps the organization in managing its various operations,
resources and production in best possible manner. In this report, an attempt is made to analyze
the controlling mechanism of the company with the view of the production of mini cars by GO
Fast Autos (GoFast Company, 2019). A report is framed by discussing the last year production
details of mini cars of Go Fast Company. With this report, attempts are made to review last
year’s performance of mini cars as well as taking corrective measures to control them.
Controls
The word control means directing and monitoring the behavior of both living and non-living
thing. In terms of business, it refers to controlling of the productivity of the organization in terms
of resources, production and functions. It is the process in which, the standards are set, and then
actual performance is conducted. This actual performance is compared to the standard one in
order to find any deviations. After that, corrective actions are taken accordingly (Berry,
Broadbent, & Otley, 2016). It is an important function of management as it helps the
management in identification of any errors or deviations occurred in the production of the
company (Seddon, 2019).
The controlling mechanism of companies plays a very crucial part in the profitability of an
organization (Jeon & Kim, 2016). Go Fast is a US organization that is incorporated in 1996 as a
sports company later on with a motive of placing life on fast growing energetic lifestyle has
emerged rapidly. The company manufactures and sponsor many products and services among
them there are mini cars, which is produced by many branches of organization in US. The mini
cars are the biggest and costliest product of the company. The company has invested a big
amount in these cars. It makes it very crucial for Go Fast Company to bring coordinated
controlled management of its Mini Cars.
Standard Specifications
The Go Fast Company in starting of every year establishes a standard target that must be
achieved by the organization in order to be profitable in nature (Kerzner, 2017). The standards
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help in proper management and further controlling mechanism of the mini cars of the company
(Zawadzki & Żywicki, 2016). This section is going to discuss the standard as well as actual
performance that has set and achieved by various branches of Go Fast in USA over a period
(GoFast Company, 2019). It has some variables with set standards as well as measured actual
performance for each of them, which are analysed in following lines:
Cost (in Millions): The cost factors deals with the cost involved in production and controlling of
mini cars of Go Fast Organization in its various branches. The set target or standard was around
5.65 in millions and the actual cost involvement of Spokane, El Pasco are more than target
showing losses and Wichita, Huntsville and Tijuana showing less involvement of cost hence are
in profit.
Time (in Hours): The set target for involved time in manufacturing and management of mini
cars of Go Fast Organization was 2.36 hours. The time taken by Spokane, Wichita are less then
involved time, means they completed within target time and in rest of the branches the target
time was exceeded that shows in effective controlling.
Quality Control Problem Ratio (per unit): The ratio talked about quality based on per unit
produced. The set target was 1, and every branch of the company have exceeded the target. That
shows that the quality of mini cars of Go Fast Organization is maintained in an effective manner.
Training Time (in hour): The time involved in training a particular employee involved in
production and management of Go Fast company’s mini cars is targeted to be 30 hours on an
average. Only Tijuana branch of the Organization achieved the target of training employees’
within 25 hours on an average. On the other hand, most of the branches exceeded the training
hours by 2 to 4 hours.
Shipping Problems/ Damage: The damages or problems, which the company can bear without
getting in loss is 0.25 percent of the total production. Mostly many branches have shipped within
the targeted or less then that percentage of damage. However, there were two branches, who did
not meet the standards.
Health and Safety Issues (per 10,000): On an average per 10,000 employees, it is expected to
have 0.25 percent health and safety issues, so that they can be dealt with proper care. Only
Tijuana branch of Go Fast Organization has exceeded the target on a large scale.
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Total number of Mini Cars: It is targeted that all branches must produce and manage around
35000 cars in a year. According to the report, it was identified that Spokane produced 40,000,
Wichita produced 50,000 and Tijuana produced 38,000. Their production was more than the
target hence the branches were said to have effective control in production of cars as compared
to other branches.
Corrective Action
It can be seen from in depth analysis of collected data of target as well as actual productivity of
Go Fast mini cars that not all the branches are producing up to the given target. All of them are
lacking in one or more than one factors (Banfield & Kay, 2012). It is important for Go Fast
Company to brining efficiency in their operations in that the branches can include the concept of
Total Quality Management in which they consider quality as well as target of each factor
involved in the production activities and management of mini cars of Go Fast Autos (GoFast
Company, 2019). TQM is a very popular concept that must be used by the management of the
organization in order to bring efficiency in the produce that must be up to target, fulfilling the
quality and must be within specified time.
Conclusion
Controlling of activities and production of a company is the main function that the must be
considered by companies on their highest priorities. In this report, an analysis of one-year
production of mini cars of Go Fast Autos was analysed by involving targets of various factors
and of various branches. It was identified that the branches are not meeting the target effectively;
one or more are missing it. It is advised that eth company must adopt total quality management
concept in order to maintain quality of every factor which in turn can help in achieving fixed
targets within time and with up to quality. This can help Go Fast Autos mini cars effectively and
efficiently.
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References
Bibliography
Banfield, P., & Kay, R. (2012). Introduction to Human Resource Management (2nd Edition ed.).
Oxford University Press.
Berry, A. J., Broadbent, J., & Otley, D. T. (2016). Management control: theories, issues and
practices. Macmillan International Higher Education.
GoFast Company. (2019). About. Retrieved October 3, 2019, from GoFast Company:
https://scholar.google.co.in/
GoFast Company. (2019). Home Page. Retrieved October 2, 2019, from https://gofast.com/
Jeon, S. M., & Kim, G. (2016). A survey of simulation modeling techniques in production
planning and control (PPC). Production Planning & Control , 27 (5), 360-377.
Kerzner, H. (2017). Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Seddon, J. (2019). Freedom from command and control: Rethinking management for lean
service. Productivity Press.
Zawadzki, P., & Żywicki, K. (2016). SMART PRODUCT DESIGN AND PRODUCTION
CONTROLFOR EFFECTIVE MASS CUSTOMIZATION IN THE INDUSTRY 4.0
CONCEPT. Management and Production Engineering Review , 7 (3), 105-112.
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