Meaning of Production Standards
Production measure 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, weather 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, industrial plant life capacity, thence on.
Production standards give direction in addition to guidance to the production department. It is also used for controlling the production activities. That is, the actual production tin last compared amongst the production standards, in addition to the departure tin last found out in addition to corrected. It is a signal of reference. It helps to honour out whether the operate was done as per plan.
Image credits © Prof. Mudit Katyani.
Definition of Production Standards
According to Adam in addition to Elbert, production measure is defined as follows:
"Production measure is a quantitative criterion established as a terra firma 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 utter over each reward of production standards i past times one.
1. Optimum purpose of labour
If production standards are fixed beforehand, thence all the operate volition last planned inwards advance So, everyone volition know precisely what to do, how much to do, how to practice it, etc. The performance of the workers tin last evaluated. Their mistakes, if any, tin last corrected inwards time. There volition last no wastage of labour. So, production planning helps to brand optimum purpose of labour.
2. Fixing wages
Production standards assist to create the wages, salaries, bonus, perks, etc. of the workers in addition to managers. The performance of each someone tin last evaluated amongst the assist of production standards. So, each someone volition last paid according to his performance.
3. Basis for advertisement in addition to training
Production standards tin last used as a terra firma 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 last given promotions. The employees whose performance is bad tin last sent for preparation to amend their performance.
4. Customer satisfaction
Production standards assist 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 furnish 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 assist to cut back the wastage of human, fabric in addition to fiscal resources inwards the company. This is because standards are fixed for most 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 amongst the standards. The mistakes, if any, are found out in addition to corrected inwards time. Production standards assist 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 back 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 in addition to maintenance costs, etc. This volition assist to avoid wastage in addition to to cut back the production cost. It volition also cut back 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 departure non considered.
- Difference inwards project methods.
- Rigidity.
Now let's utter over each demerit of production standards i 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 last satisfied. He volition non endeavor to operate to a greater extent than than the standard. He volition non endeavor to increase the standard. After about time, he volition conk lazy.
2. No improvement
Standard are fixed for quantity, time, costs, etc. These standards are non changed for a long menstruum of time. So, during this fourth dimension the quantity of output, character of output, speed of work, cost of production, etc., volition stay the same. There volition last no improvement. This is against Kaizan. Kaizan is a Japanese concept. According to this concept, at that topographic point must last continuous improvements inwards the organisation.
3. Individual departure non considered
Standards practice non consider private departure inwards doing work. The same measure is made for all the employees. However, all the employees are non every bit efficient inwards their work. So, if the measure is made likewise high, thence the less-efficient employees volition non last able to consummate their operate inwards time. Similarly, if the standards are low, efficient employees volition consummate their operate earlier time.
4. Difference inwards project methods
Methods of doing the project are non ever standardized. Most companies alter their methods according to alter inwards machines. It is hard to create standards if the project methods maintain changing. Even if standards are fixed, comparisons conk 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 last changed regularly as per the varying needs in addition to wants of the consumers.
