Horti-Business Management (2+0)

Controlling production: Quantity and quality

• If no control is expressed over operations the process will fail. The principle of exception should be followed. Controlling by exceptions involves comparing the plans with the plant’s performance. In simple systems, this comparison can be made informally by personally observing performance. Orders may be filed by due date, work to be completed in each department may be recorded each day or bar charts may be used. The record is obtained through feedback or by having forms returned with information on work performed. Changes may not be done when performance equals or exceeds the plans. An exception arises when performance does not reach the level desired. Then the operations manager has to decide what to do to improve future performance.
• The methods used in quality control have been developed further than those for other control systems and are used in many other systems, including cost control. The system begins with setting the level of quality desired. The quality level is based on :
1. The value of quality to the customer
2. The cost of the quality
• Then controls should be established to obtain that quality. The cost will increase, if an attempt is made to exceed that level of quality. At the same time, if quality is allowed to go below the level, then the firm will lose its customers.
• Steps needed in any system of control are:
1. Set standards for your quality range
2. Measure your actual performance
3. Compare performance with standards
4. Make corrections when needed
• Standards of quality maybe set for dimension, colour, odour / flavor, strength, content weight, service and other characteristics.