production measure

CHAPTER ONE THE NEEED FOR CONTROL FUNCTION WITHIN AN ORGANIZATION Control is the regulation of organization’s activities so that some targeted element of performance remains within acceptance limit. Without this regulation, organization has no indication of how well they perform in relation to their goals. Industrial/organizational control compares where the organization is in terms of performance (financial, productive, or otherwise) to where it is suppose to be. Control provides an organization with a mechanism for adjusting its course if performance falls outside of acceptable boundaries. F or instance, if NIGERIAN Distillers has a performance goal of delivery 99% (percent) of its Eagle schnapps on time, eventually, on-time deliveries falls to 97% (percent), control systems will signal the problem to manager so they can make necessary adjustment in operations to regain the target level of performance. An organization without effective control procedures is not likely to read its goal. As a result of this, Griffins (1999;611 – 612) pointed out the need and purpose of effective control as follows: 1. Adapting to Environmental Change: If managers could establish goals and achieve them instantaneously, control would not be needed. But between the time a goal is establish and the time it is reached, many things can happen in the organization and its environment to disrupt movement towards the goal or even change the goal itself. A properly designed control system can help managers anticipate, monitor, and respond to changing circumstances. In contract an improperly designed system can result in organizational performance that force far below acceptance level. For instance, the quality content to boost it quality, productivity and profitability. 2. Limiting the Accumulation of Error: Small mistakes and errors do not often seriously damage the financial health of an organization. Small error may accumulate and become very serious for instance, a company that has a high demand of its product and as a result of this, stopped worrying about improving its product point may be impaired at the long run. If the defeat rate of the company quality rise from 6% to 10%, to 18% and eventually reached 28%. One day, the manager will realize that 120 of the firm’s 270 employees were spending all their time fixing defective units and that N2 million worth of inventory was awaiting repair. Had the company adequately controlled as it responded to increased demand, the problem would have never reached such proportions. 3. Coping with Organization complexity: when the firm purchases only one raw material, produces one product has a simple organization design and enjoy constant demand for its product, its managers can maintain control with a very basic and simple system. But a business that produces many products from multiple raw materials and that has a large market area, a complicated organization design, and many competitors needs a sophisticated system in order to maintain adequate control. 4. Minimizing Costs: When it is practiced effectively, control can also help reduce costs and boost output. A firm can its control system to calculate the total amount of raw materials required for production. Effective control system can eliminate waste, reduce labor costs, and improve output unit of input. ESSENTAIL FUTURES OF INDUSTRAIL CONTROL SYSTEM 1. Integration with planning: control should be linked with planning. The explicit and precise this linkage is, the more effective is the control system. The best way to integrate planning and control is to account for control as plans develop. As goals are set during planning process, attention should be paid to developing standards that will reflect how well the plan is realized. 2. Flexibility: