Meaning of Production Standards
blogspot.com//search?q=what-is-production-definition-meaning">Production measure is a criterion or yardstick or benchmark. It is used for measure the production of the company.
Production standards are fixed for raw materials, production process, tools together with equipment, workers, weather condition of work, speed of work, quantity of output, character 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 together with guidance to the production department. It is also used for controlling the production activities. That is, the actual production tin move compared alongside the production standards, together with the divergence tin move found out together with corrected. It is a indicate of reference. It helps to notice out whether the piece of job was done as per plan.
Image credits © Prof. Mudit Katyani.
Definition of Production Standards
According to Adam together with Elbert, production measure is defined as follows:
"Production measure is a quantitative criterion established as a terra firma for comparing inwards measure or judging output."
Advantages of Production Standards
The merits, benefits, or advantages of production standards are as follows:
- Optimum operate of labour.
- Fixing wages.
- Basis for advertisement together with training.
- Customer satisfaction.
- Less wastage.
- Budgeting possible.
- Effective planning.
Now let's verbalize over each reward of production standards ane past times one.
1. Optimum operate of labour
If production standards are fixed beforehand, together with then all the piece of job volition move 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 move evaluated. Their mistakes, if any, tin move corrected inwards time. There volition move no wastage of labour. So, production planning helps to brand optimum operate of labour.
2. Fixing wages
Production standards aid to ready the wages, salaries, bonus, perks, etc. of the workers together with managers. The performance of each individual tin move evaluated alongside the aid of production standards. So, each individual volition move paid according to his performance.
3. Basis for advertisement together with training
Production standards tin move used as a terra firma for giving promotion, transfers, training, etc., to the employees together with managers. This is because it helps to evaluate their performance. The employees having the best performance tin move given promotions. The employees whose performance is bad tin move sent for preparation 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 larn a regular render of good-quality products at depression prices. This volition give satisfaction to the customers together with profits to the company.
5. Less wastage
Production standards aid to trim down the wastage of human, cloth together with fiscal resources inwards the company. This is because standards are fixed for nigh everything inwards the production department. There are standards for raw materials, workers, speed of work, quantity of work, character of work, production process, etc. These standards guide the workers. It helps them to avoid mistakes. After they consummate their work, it is compared alongside the standards. The mistakes, if any, are found out together with corrected inwards time. Production standards aid to avoid wastage of investment inwards unwanted machines together with raw materials. It also helps to avoid having to a greater extent than employees than necessary. All this helps to trim down wastage inwards the company.
6. Budgeting possible
Production measure makes budgeting possible. That is, the production managing director tin prepare a budget for all the production expenses. He tin prepare a budget for the materials' costs, labour costs, machine costs, repair together with maintenance costs, etc. This volition aid to avoid wastage together with to trim down the production cost. It volition also trim 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 together with nether stocking of materials together with finished goods. It helps to bargain alongside emergencies similar the breakdown of machines.
Demerits of Production Standards
The limitations, disadvantages, or demerits of production standards are:
- Limiting factor.
- No improvement.
- Individual divergence non considered.
- Difference inwards undertaking methods.
- Rigidity.
Now let's verbalize over each demerit of production standards ane past times one.
1. Limiting factor
Some experts experience that a measure is a limiting factor. Influenza A virus subtype H5N1 measure is a quantitative goal. Once the employee achieves this goal he volition move satisfied. He volition non sweat to piece of job to a greater extent than than the standard. He volition non sweat to increase the standard. After approximately time, he volition popular off lazy.
2. No improvement
Standard are fixed for quantity, time, costs, etc. These standards are non changed for a long menstruation of time. So, during this fourth dimension the quantity of output, character of output, speed of work, cost of production, etc., volition rest the same. There volition move no improvement. This is against Kaizan. Kaizan is a Japanese concept. According to this concept, in that place must move continuous improvements inwards the organisation.
3. Individual divergence non considered
Standards exercise non consider private divergence inwards doing work. The same measure is made for all the employees. However, all the employees are non as efficient inwards their work. So, if the measure is made likewise high, together with then the less-efficient employees volition non move able to consummate their piece of job inwards time. Similarly, if the standards are low, efficient employees volition consummate their piece of job earlier time.
4. Difference inwards undertaking methods
Methods of doing the undertaking are non ever standardized. Most companies alter their methods according to alter inwards machines. It is hard to ready standards if the undertaking methods continue changing. Even if standards are fixed, comparisons popular off hard due to alter of methods.
5. Rigidity
Standards are non changed regularly. This results inwards rigidity. However, flexibility is required to confront competition. The production must move changed regularly as per the varying needs together with wants of the consumers.
