question_answer

RK & Co Ltd is engaged in manufacturing machine components. The target production is 300 units daily. The company had been successfully attaining this target until two months ago. Over the last few months, it has been observed that daily production varies between 150-200 units. (i) Identify the possible causes for the decline in production and the steps to be taken to achieve the desired targets. (ii) Which function of management is being discussed in the above question?

Answer:

(i) The possible causes for the decline in production and the steps which are to be taken to achieve the desired targets are:

S.No.	Causes	Corrective Steps
[a]	Defective material	Change the quality specification for the materials used.
[b]	Defective machinery	Repair the existing machine or replace the machinery, if it cannot be repaired.
[c]	Defective Process	Modify the existing process.
[d]	Defective physical condition of work	Improve the physical conditions of work.
(e)	Obsolete machinery	Undertake technological upgradation of machinery.
(f)	De-motivated employees	Declare various incentives to motivate the employees.

(ii) The function of management being discussed in the question (i) is 'controlling', that refers to the comparison of actual performance with the planned performance and taking corrective actions in case of deviations between actual and planned performance.