Controlling the production in such away that there should not be much variance between actual performance of the system and the standard performance of the system and taking appropriate corrective action if any variance is observed.
Contd
4. Techniques for measuring and recording data on machine utilization, scrap and indirect labor that can serve as a basis for manufacturing action leading to optimum utilization of facilities and low cost operation. 5. An information system for display, recording and retrieval as well as processing and flow of data.
Nature of production
Continuous flow process operation ex: soap, paste, petrochemical industries Intermittent process operation. ex: toys, automobile spares Multi-operation production. ex: furniture industry, automobile industry
Complexity of operations
Number of ultimate parts in the end product. Number of different operations on each part Extent to which processes are dependent on the completion of previous operations Variations in production rates of machines used in process Number of discrete parts and assemblies Degree to which customers orders with specific delivery dates occur Receipt of many small lot orders
Magnitude of operations
The size of operation i.e. time taken to complete an operation and the distance travelled by the parts from one operation to operation For centralized production control organizations and for formal procedures as the size of operation increases and dependent operations are more physically separated.
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Competitive advantage 1. Reliable delivery to customers. 2. Shortened delivery schedules to customers. 3. Lower production costs and greater pricing flexibility, 4. Orderly planning and marketing of new or improved products.
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