Production Standards Important Definition Advantages Demerits

Meaning of Production Standards

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 in addition to equipment, workers, weather condition of work, speed of work, quantity of output, character of output, etc.

Production standards are to a greater extent than oftentimes than non 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 last compared amongst the production standards, in addition to the divergence tin last found out in addition to corrected. It is a signal of reference. It helps to uncovering 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 measure is defined as follows:

"Production measure is a quantitative criterion established as a solid soil for comparing inwards measure or judging output."

Advantages of Production Standards

The merits, benefits, or advantages of production standards are as follows:

Optimum role 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 i past times one.

1. Optimum role of labour

If production standards are fixed beforehand, in addition to thus all the function volition last planned inwards advance So, everyone volition know just what to do, how much to do, how to practise 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 role 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 individual tin last evaluated amongst the aid of production standards. So, each individual volition last paid according to his performance.

3. Basis for advertisement in addition to training

Production standards tin last used as a solid soil 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 aid to give satisfaction to the consumers. This is because production standards are fixed for quantity, quality, time, cost, etc. So, the consumers volition teach 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 back the wastage of human, textile in addition to fiscal resources inwards the company. This is because standards are fixed for nearly 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 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 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 aid 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 divergence non considered.
Difference inwards project methods.
Rigidity.

Now let's hash out each demerit of production standards i past times one.

1. Limiting factor

Some experts experience that a measure is a limiting factor. H5N1 measure is a quantitative goal. Once the employee achieves this goal he volition last satisfied. He volition non endeavour to function to a greater extent than than the standard. He volition non endeavour to increase the standard. After only about time, he volition drib dead 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 last no improvement. This is against Kaizan. Kaizan is a Japanese concept. According to this concept, in that place must last continuous improvements inwards the organisation.

3. Individual divergence non considered

Standards practise 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 besides high, in addition to thus the less-efficient employees volition non last able to consummate their function inwards time. Similarly, if the standards are low, efficient employees volition consummate their function earlier time.

4. Difference inwards project methods

Methods of doing the project are non e'er standardized. Most companies alter their methods according to alter inwards machines. It is hard to create standards if the project methods drib dead along changing. Even if standards are fixed, comparisons drib dead hard due to alter of methods.

5. Rigidity

Standards are non changed regularly. This results inwards rigidity. However, flexibility is required to expression upwards competition. The production must last changed regularly as per the varying needs in addition to wants of the consumers.