Question

In: Operations Management

What happens in the absence of control? Give an example of a standard for sustainability. What...

What happens in the absence of control?

Give an example of a standard for sustainability.

What impact would achieving Six Sigma quality have on a company’s costs?

If one activity costs the most, how would you decide if this is a case of overspending?

You manage the tech support department for your company. How might market controls affect your costs?

Would you expect more clan control with standardized jobs or creative positions?

Solutions

Expert Solution

In the absence of control the processes go out of control, this leads to production in wrong specifications and so rework, wastage and increase in productions costs in the longer run. Apart from this there are several certifications, acreditions which require the process compliance as a consistency parameter, as consistency is a by product of good process control, without it, this is a function of chance.

One standard of sustainability is

International. Sustainability and. Carbon. Certification. (ISCC)

What impact would achieving Six Sigma quality have on a company’s costs?

The overall impact is positive, in the very short run the expenses are higher and so costs go up but in the medium and long term the costs are grossly reduced due to low wastage, less rework, and consistent production with higher quality guaranteed. As the defects are less these ensure low cost.

If one activity costs the most, how would you decide if this is a case of overspending?

This can be checked by having some control over the activity and regular monitoring, removing the extras if possible, if still the costs do not reduce then its not overspending. But when there are controls in place, if there is drop in costs the we can ensure there was overspending and even stricter control is recommended.

You manage the tech support department for your company. How might market controls affect your costs?

As the demand of the tech support is based on the market, there are few things which can increase or decrease the cost:

  • Speed of delivery: High technology capability, the resources, human and devices and software needs to be advanced and this will ensure the market rate is matched or efficiently better.
  • If there are several similar players, then the demand is less and supply is more, so the rates go down so as per that resources will become cheaper as well as tech support staff will be easily available.
  • Minimum quality standard by market forces or competitive forces in the market, which means there needs to be higher quality control mechanisms, initial costs will be higher with the implementation of new systems QA processes, but at the end the control will make the process efficient and in the long run might become cheaper.

Would you expect more clan control with standardized jobs or creative positions?

BOth of these are demand dependent and industry specific. In art and design related work creative positions are benefitial with minor control and adherence in processes and deadlines and at the same time in the standardized products and generic engineering and production, it is better to have clan control with standardized jobs, this ensure the jobs are well in place and process fully streamlines.


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