Case Problems · Q14
Q.A garment manufacturing company set a target of producing 10,000 shirts per month with a defect rate below 2%. At the end of the month, the company produced only 8,200 shirts with a defect rate of 5%. The management reviewed the figures, discussed the causes with the production department, and decided to introduce an extra quality-check stage before packing, along with additional operator training. Based on this situation, answer:
(a) Which management function is illustrated by management's actions after reviewing the figures, and
(b) list, in order, the steps of that function's process as shown in this case.
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Start your 14-day free trial to unlock the full solution →- Identifying the function: The sequence described — a standard being set, actual results being measured, the two being compared, causes being investigated, and corrective steps being introduced — is precisely the definition of controlling, the management function of establishing standards, measuring performance, comparing the two, analysing deviations, and taking corrective action.
- Mapping the case onto the standard controlling process, in order:
- Setting performance standards — the company had set a target of 10,000 shirts per month with a defect rate below 2%. This target is the standard against which the month's performance will later be judged.
- Measuring actual performance — at month's end, actual results were recorded: 8,200 shirts produced, with a 5% defect rate.
- Comparing actual performance with standards — management reviewed the figures, revealing two deviations: a shortfall of 1,800 shirts from the quantity target, and a defect rate 3 percentage points above the quality standard.
- Analysing deviations — management discussed the causes with the production department, seeking to understand why output fell short and defects rose (for example, this discussion might reveal issues like machine downtime, inadequately trained operators, or supply delays).
- Taking corrective action — based on this analysis, management decided on two concrete corrective steps: introducing an extra quality-check stage before packing (to address the defect-rate problem) and providing additional operator training (likely to address both the output shortfall and the quality issue going forward). …
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