Question

In: Accounting

disadvantages of non involvment between production department and controlling department

disadvantages of non involvment between production department and controlling department

Solutions

Expert Solution

Production planning and Controlling refers to strategies that work cohesively throughout the manufacturing process.Production planning involves what to produce,when to produce it,how much to produce,and more.A long-term view of production planning is necessary to fully optimize the production flow.Production control uses different control techniques to reach optimum performance from the production sysytem to achieve throughput targets

Disadvantages of Non-involvement between Production department and Controlling Department:

  • Lack of sound Basis- Production planning and control are based on certain assumptions or forecasts about the availability of inputs like materials,power,equipment,etc. and customers orders.In case these assumptions and forecasts do not go right,the sysytem of production planning and control will become effective.
  • Rigidity in Plants Working- Production planning and control may be responsible for creating a rigidity in the working of the plant if there's no coordination.Once the production planning has been completed,any subsequent change may be resisted by the employees.
  • Time Consuming Process- Production Planning is a time consuming process.Under Emergencies,the involvement(co-ordination) between control department will be less,therefore it could affect the entire manufacturing process due to improper production planning.
  • Costly Device or Machine-Production planning and control is not only time consuming process,but is a costly process also.Its effective implementation requires services of specialists for performing functions of routing,scheduling,loading,dispatching and expediting.Small firms cannot afford to employ specialists for the effecient performance of these functions.
  • External Limitations-The effectiveness of production planning and control is limited because of external factors which are beyond the control of production manager such as Sudden Break-out of war,Government controls,natural calamities,changes in Fashion,change in Technology,etc which are factors which harm the implementation of production planning and control.

In simple words we can explain the disadvantages of non-involvement between production department and acontrolling department as follows:

1.It will lead to poor Supplier communication for the raw materials procurement.[In-Effective Purchasing]

2.It will impact the regular and timely delivery of materials(disorganised delivery)

3.Investment in Inventory(stock) may go higher as a result of over-stocking due to improper cordination between both departments.[Improper Invnetory Management]

4.Hamper(hinder) the smooth flow of all production processes.

5.Production costs may increase through inefficiency in operations.

6.Increased wastage of resources.

7.Increased production costs leads to losses.

8.Work Stoppages and delay in dispatch of goods.

9.Belated purchases leads to idleness of men and machines,as well as timeloss.

10.When production doesn't go as per schedule,it leads to over-time work.


Related Solutions

What are the advantages and the disadvantages of acquiring either controlling and non-controlling interest shares in...
What are the advantages and the disadvantages of acquiring either controlling and non-controlling interest shares in a corporation? Explain advantages and disadvantages of each.
why is non controlling interest included in the equity if non controlling interest is not attributable...
why is non controlling interest included in the equity if non controlling interest is not attributable to the shareholders? And which part in assets section records this portion in accordance to dual effects?
What does the term “non-controlling” interest mean? How is the non-controlling interest in a subsidiary company...
What does the term “non-controlling” interest mean? How is the non-controlling interest in a subsidiary company calculated as of the end of a reporting period?
Question 8 Explain non-controlling interest. Calculate the non-controlling interest to be presented in the consolidated financial...
Question 8 Explain non-controlling interest. Calculate the non-controlling interest to be presented in the consolidated financial statement
In the presence of non-controlling interests, if dividends are declared by a subsidiary and by a...
In the presence of non-controlling interests, if dividends are declared by a subsidiary and by a parent entity, which dividends payable will be shown in the consolidated balance sheet?
How are non-controlling interests affected by intragroup transactions?
How are non-controlling interests affected by intragroup transactions?
Controlling production costs are critical to any manufacturing company. Explain the difference between fixed and variable...
Controlling production costs are critical to any manufacturing company. Explain the difference between fixed and variable costs and how they interact with changes in volumes? Short answer question, about a PG long. Thanks!
What is parent company, subsidiary, non controlling interest in consolidated?
What is parent company, subsidiary, non controlling interest in consolidated?
Discuss the differences between production and service department costs and direct and indirect department costs. Provide...
Discuss the differences between production and service department costs and direct and indirect department costs. Provide examples
Explain the treatment of non-controlling interest in the consolidated Statement of Comprehensive Inc
Explain the treatment of non-controlling interest in the consolidated Statement of Comprehensive Inc
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT