Meaning of Production Standards
blogspot.com//search?q=what-is-production-definition-meaning">Production criterion is a criterion or yardstick or benchmark. It is used for measurement the production of the company.
Production standards are fixed for raw materials, production process, tools in addition to equipment, workers, atmospheric condition of work, speed of work, quantity of output, lineament of output, etc.
Production standards are generally expressed inwards quantitative terms. That is, it is expressed inwards terms of units of output, units of time, kilograms, flora capacity, thus on.
Production standards give administration in addition to guidance to the production department. It is also used for controlling the production activities. That is, the actual production tin forcefulness out hold upwardly compared amongst the production standards, in addition to the deviation tin forcefulness out hold upwardly found out in addition to corrected. It is a betoken of reference. It helps to honor out whether the function was done as per plan.
Image credits © Prof. Mudit Katyani.
Definition of Production Standards
According to Adam in addition to Elbert, production criterion is defined as follows:
"Production criterion is a quantitative criterion established as a footing for comparing inwards measurement or judging output."
Advantages of Production Standards
The merits, benefits, or advantages of production standards are as follows:
- Optimum purpose of labour.
- Fixing wages.
- Basis for advertisement in addition to training.
- Customer satisfaction.
- Less wastage.
- Budgeting possible.
- Effective planning.
Now let's hash out each reward of production standards ane past times one.
1. Optimum purpose of labour
If production standards are fixed beforehand, in addition to thus all the function volition hold upwardly planned inwards advance So, everyone volition know precisely what to do, how much to do, how to exercise it, etc. The performance of the workers tin forcefulness out hold upwardly evaluated. Their mistakes, if any, tin forcefulness out hold upwardly corrected inwards time. There volition hold upwardly no wastage of labour. So, production planning helps to brand optimum purpose of labour.
2. Fixing wages
Production standards aid to create the wages, salaries, bonus, perks, etc. of the workers in addition to managers. The performance of each somebody tin forcefulness out hold upwardly evaluated amongst the aid of production standards. So, each somebody volition hold upwardly paid according to his performance.
3. Basis for advertisement in addition to training
Production standards tin forcefulness out hold upwardly used as a footing for giving promotion, transfers, training, etc., to the employees in addition to managers. This is because it helps to evaluate their performance. The employees having the best performance tin forcefulness out hold upwardly given promotions. The employees whose performance is bad tin forcefulness out hold upwardly sent for grooming to ameliorate their performance.
4. Customer satisfaction
Production standards aid to give satisfaction to the consumers. This is because production standards are fixed for quantity, quality, time, cost, etc. So, the consumers volition instruct a regular render of good-quality products at depression prices. This volition give satisfaction to the customers in addition to profits to the company.
5. Less wastage
Production standards aid to cut down the wastage of human, fabric in addition to fiscal resources inwards the company. This is because standards are fixed for close everything inwards the production department. There are standards for raw materials, workers, speed of work, quantity of work, lineament of work, production process, etc. These standards guide the workers. It helps them to avoid mistakes. After they consummate their work, it is compared amongst the standards. The mistakes, if any, are found out in addition to corrected inwards time. Production standards aid to avoid wastage of investment inwards unwanted machines in addition to raw materials. It also helps to avoid having to a greater extent than employees than necessary. All this helps to cut down wastage inwards the company.
6. Budgeting possible
Production criterion makes budgeting possible. That is, the production director tin forcefulness out prepare a budget for all the production expenses. He tin forcefulness out prepare a budget for the materials' costs, labour costs, machine costs, repair in addition to maintenance costs, etc. This volition aid to avoid wastage in addition to to cut down the production cost. It volition also cut down fiscal problems inwards the organization.
7. Effective planning
Production standards are the base of operations of production planning. It helps to receive got effective production planning. Production planning helps the production to run smoothly. It sees that all the machines are utilized fully. It helps over in addition to nether stocking of materials in addition to finished goods. It helps to bargain amongst emergencies similar the breakdown of machines.
Demerits of Production Standards
The limitations, disadvantages, or demerits of production standards are:
- Limiting factor.
- No improvement.
- Individual deviation non considered.
- Difference inwards chore methods.
- Rigidity.
Now let's hash out each demerit of production standards ane past times one.
1. Limiting factor
Some experts experience that a criterion is a limiting factor. Influenza A virus subtype H5N1 criterion is a quantitative goal. Once the employee achieves this goal he volition hold upwardly satisfied. He volition non endeavor to function to a greater extent than than the standard. He volition non endeavor to growth the standard. After approximately time, he volition instruct lazy.
2. No improvement
Standard are fixed for quantity, time, costs, etc. These standards are non changed for a long menses of time. So, during this fourth dimension the quantity of output, lineament of output, speed of work, cost of production, etc., volition stay the same. There volition hold upwardly no improvement. This is against Kaizan. Kaizan is a Japanese concept. According to this concept, at that topographic point must hold upwardly continuous improvements inwards the organisation.
3. Individual deviation non considered
Standards exercise non consider private deviation inwards doing work. The same criterion is made for all the employees. However, all the employees are non every bit efficient inwards their work. So, if the criterion is made besides high, in addition to thus the less-efficient employees volition non hold upwardly able to consummate their function inwards time. Similarly, if the standards are low, efficient employees volition consummate their function earlier time.
4. Difference inwards chore methods
Methods of doing the chore are non e'er standardized. Most companies alter their methods according to alter inwards machines. It is hard to create standards if the chore methods expire along changing. Even if standards are fixed, comparisons instruct hard due to alter of methods.
5. Rigidity
Standards are non changed regularly. This results inwards rigidity. However, flexibility is required to aspect upwardly competition. The production must hold upwardly changed regularly as per the varying needs in addition to wants of the consumers.
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