Business Control and Management Report for Sleek Motors Production

This report examines the business control and management practices of Sleek Motors, focusing on the production of their electric cars. It begins with an introduction to control setting, including embedded, visual, and procedural controls. The report then analyzes the company's performance, comparing actual results with standard specifications across various metrics such as manufacturing unit cost, manufacturing cycle time, and downtime. It identifies deviations from these standards for different branches, including Fort Wayne Georgetown, Koenigsegg, and Kan, and provides a deviation analysis for each metric. The report suggests corrective actions, including increasing the number of units manufactured, improving production downtime and manufacturing cycle time, and addressing shipping problems, defective rates and scrap rates. The report concludes by emphasizing the importance of implementing total quality management (TQM) and control setting to achieve the company's goals and eliminate deviations from the standards, with references to relevant literature.

Running header: Business Control and Management 1
Business Control and Management
By [Name]
Institution

Business Control and Management 2
Contents
Introduction..........................................................................................................................3
Control.................................................................................................................................3
Control setting..................................................................................................................3
Why sleek motors should be concerned with the results for electric car.........................3
Standard Specifications.......................................................................................................4
Comparison between the actual and standard performance.............................................4
Deviation analysis from the standard for each metric......................................................4
Taking more control in electric car production................................................................5
Corrective Action: Total quality management in sleek motors...........................................6
Conclusion...........................................................................................................................6
References............................................................................................................................7

Business Control and Management 3
Introduction
A newly opened business organization needs proper management and control of its
operations. To facilitate, there have to be standards specifications that serve as guidelines to its
operations. They serve as points of comparison that help in business management and provide
direction.
Control
Control setting
Control setting in a business entails the processes and procedures that provide a guideline
for the operation of the business. It is one of the primary managerial functions in a business, and
it regulates and protects the business (Becker, Carlson, Edwards, & Spector, 2016). Control
setting is divided into three types; Embedded controls that provide standards for the production
of a certain commodity, the visual control which lets the personnel in charge see to it that things
are done in the right way(checklist) and procedural control which brings in an unrelated party in
the business to monitor its operation.
Why sleek motors should be concerned with the results for electric car
Running of the electrical – car business involves incurring some expenses, especially in
terms of capital, time, energy, and labor. The company makes a close follow-up, ensuring that
profits are made, and losses are minimized. More losses than profits can lead to business
shutdown (Kim, 2015).
The results ensure that the electric car business is operating within the set down
standards. Slights deviations from the margin of operation help the owner apply appropriate
strategies.

Business Control and Management 4
The company is also new, and therefore these results can be used as future references.
There can be a change in business management, or different personnel can come in to run the
business. These results can be used as reference points for efficiency.
Standard Specifications
Comparison between the actual and standard performance
The sleek motors production department has a standard manufacturing unit cost of
13,500. Fort Wayne Georgetown branch manufactures the vehicle at a total unit cost of 15,250, a
deviation of 1750. Factors like the purchase of high-cost quality raw materials could lead to high
total manufacturing unit cost, hence failure in the production department (Beaverstock, 2016).
Koenigsegg branch manufactures the electric car at a relatively higher manufacturing
total unit cost than the standard. The price is 14100, which deviates from 13500 by 600. This
indicates that some factors controlling the manufacturing are not properly managed to make the
process to fail.
Kan branch lies below the standard manufacturing total unit cost by 750, an indication
that some of these factors controlling the manufacturing process are managed hence driving the
business towards its success.
Deviation analysis from the standard for each metric
Forte Wayne Georgetown and Koenigsegg- Forte Wayne Georgetown and Koenigsegg
deviate above the standard(positive) in the following parameters; Manufacturing cycle time,
Total cost to manufacture, and Average Production Downtime. This due to high production costs
and individual item specifications, making the manufacturing cost go high (Biech, 2019).

Business Control and Management 5
Forte Wayne Georgetown, Koenigsegg, and Kan -The three branches have positive
deviations in these metrics; Average Production Downtime, Scrap Rate, Shipping
Problems/Damage (per 10,000 units) and Safety Incident per Employee. These metrics can only
be approximated and are attained through achieving maximum efficiency and taking appropriate
safety precautions in the whole production process.
Koenigsegg and Kan- The two branches have these deviations in common; Yield and
Defective Rate/Recall Rate. Kan has a lower yield as it minimizes the expenses to produce its
commodities. As a result, the resultant product has a lower quality than the expected final
product.
Taking more control in electric car production
The utilization rate in all the three cases is below the set standard utilization rate. Thus,
for standards to be changed, the set utilization rate standard should have been exceeded (Jaggia,
Sriananthakumar, Beg, & Leighton, 2016). Additional measures that should be put into action
include the following.
The number of units manufactured per year should be increased to match that existing in
the standards. This can be achieved through improving the production downtime and
manufacturing cycle time. Improving the production is attained by minimizing time wastage in
the manufacturing process and while repairing the operation machines when a breakdown
occurs.
Shipping problems/damages are high in the three branches compared to the standard one.
The use of modern technologies can help solve this problem by improving the utilization rate.

Business Control and Management 6
The defective rate and scrap rate should also attain the specified standards (Nowak & others,
2016).
Corrective Action: Total quality management in sleek motors
The sleek motors company strategize and respond to customer demand in a manner that
they are left satisfied. It should align the vehicles in terms of a branch with respect to customer
preference. Members of this organization can take responsibility for visiting a firm that got its
success while using this standardization method. They can then come and build on whatever
response they get from that company (Serra & Kunc, 2015).
The organization should access modern trends in quality management. It should apply a
supply chain management strategy to manage its resources, whereby it identifies one potential
supplier who meets its standards like supplying quality raw materials. The raw materials should
be provided relatively low cost, thus lowering the manufacturing cost (Jaggia, Sriananthakumar,
Beg, & Leighton, 2016).
Conclusion
The success of the sleek motors company can be achieved through the implementation of various
controls discussed above. The deviations from the standards can be eliminated; corrective action
using TQM and control setting should be implemented as well.

Business Control and Management 7
References
Beaverstock, J. V. (2016). International business travel and the global economy: setting the
context. In International business travel in the global economy (pp. 27--34). Routledge.
Becker, T. E., Carlson, K. D., Edwards, J. R., & Spector, P. E. (2016). Statistical control in
correlational studies: 10 essential recommendations for organizational researchers.
Journal of Organizational Behavior, 37, 157--167.
Biech, E. (2019). The New Business of Consulting: The Basics and Beyond. Biech, Elaine.
Fleisher, C. S., & Bensoussan, B. E. (2015). Business and competitive analysis: effective
application of new and classic methods. FT Press.
Jaggia, S. a., Sriananthakumar, S., Beg, R., & Leighton, C. (2016). Essentials of Business
Statistics: communicating with numbers. McGraw-Hill Education.
Kim, S. K. (2015). Business model innovation performance: when does adding a new business
model benefit an incumbent. Strategic Entrepreneurship Journal, 9, 34--57.
Nowak, E., & others. (2016). Deviation analysis as an instrument of cost control in an
organization. Prace Naukowe Uniwersytetu Ekonomicznego we Wroc{\l}awiu, 140--147.
Serra, C. E., & Kunc, M. (2015). Benefits realization management and its influence on project
success and the execution of business strategies. International Journal of Project
Management, 33, International Journal of Project Management.