In this project, you will understand 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 5-6 pages in length, excluding the title and reference pages.
- Create a title page with a title, date, course number and section, your name, and the instructor’s name.
The following chart displays the results of the first yearâ€™s production of the, Lacks Tracks Cycles, an electric-powered chopper-style motorcycle 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 analyze 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 must 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.
|Total Cost to Manufacture (per unit)||13,500||15,250||14,100||12,750||16,000||14,250|
|Manufacturing Cycle Time (time to complete a 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%|
|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 only the BOLDED centered and left-justified headings to write your paper.
- Write an Introduction paragraph.The introduction paragraph is the first paragraph of the paper and will describe to the reader the intent of the paper, explaining the main points covered in the paper. This intent should be understood before 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. (Use in-text citations, as needed, and include the references in the Reference section.)
The body of the paper will cover the following:
- Explain what control means in a business setting. (Use headings below and in-text citations as required.)
- Explain why Lacks Tracks must be concerned with the actual production metrics at its plants. (Use headings below and in-text citations as required.)
Importance of Lacks Tracks Production Metrics
- Compare the metrics table standards to the actual performance outcomes at each of the five (5) plants and explain your findings for each plant. (Use headings below and in-text citations, as appropriate.)
- 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. (Use headings below and in-text citations, as appropriate.)
- 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. (Use headings below and in-text citations, as appropriate.)
Metrics Table Plant Performance Comparisons
Four Most Significant Deviations
Two Recommended Controls
Total Quality Management
- Explain why implementing a Total Quality Management (TQM) program could improve operational efficiency at Lacks Tracks. (Use in-text citations, as appropriate.)
Create a concluding paragraph. The conclusion paragraph highlights the major findings covered in the paper. (Use in-text citations, as appropriate.)