Question

‘DF Telecom Ltd.’, which produces a range of mobile phones for the Indian market, set a target to produce 30,000 units of mobile phones in the month of December 2025. This was the benchmark against which actual performance would be measured. At the end of the month, it was found that only 27,000 units were produced.

Concerned with the shortfall, the General Manager asked the Production Manager to find out and resolve the problem.

State the steps related to the process of one of the functions of management which the Production Manager has to take to find out and resolve the problem.

Answer 1

1. Comparing Actual Performance with Standards: The first step is to compare the actual production (27,000 units) with the set target or benchmark (30,000 units). This comparison helps identify the “deviation,” which in this case is a shortfall of 3,000 units.
2. Analyzing Deviations: The manager must determine if this deviation is within acceptable limits. Using techniques like Management by Exception or Critical Point Control, the manager identifies the causes, such as machine breakdown, labour issues, or power outages, to see why the target was missed.
3. Taking Corrective Action: Once the cause is identified, the manager must take steps to ensure it doesn’t happen again. This might involve repairing machinery, providing additional training to workers, or arranging for better raw material flow to bring future performance back on track with the planned targets.