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Managing Individual Performance

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Managing Individual Performance

Set in the practice of production management the concept of operational management refers to the final stage of the process. Operative management of the production is characterized by the adoption of managerial personnel decisions in the real, emerging, or current production situations.

Operational control of any production consists of planning (determining the composition, sequence and timing of operations in a particular period of time), organizing, and accounting for the course of production (planned and unplanned changes in the current state of production, control (scheduling) analysis, monitoring, that is, almost all control functions).

Our company is engaged into manufacturing of machinery used in agriculture.

Mechanical engineering is a key sector of the economy, providing the diverse needs of the society and of an individual through the production of machinery, equipment, and appliances.

The organization of production engineering is a system of knowledge in the field of machinery, equipment, and fixtures, accumulating analysis of past work experience and research. As a system of knowledge, production organization most effectively provides a connection to a unit of production components to produce the final result – engineering products in the enterprise.

At the time of establishment of the enterprise, information collection is not in full. Collection is carried out once a week. However, it is not enough to fully reflect the progress made. The information is not always available on time and in full, and may not be sufficient to maintain general and operational control of the production flow. Establishment of an operational account of the scale of converter are not rationally organized. This is due to the use of modern computer technology in a not comprehensive manner.

Regulation is the final step of the process of developing and implementing solutions in order to prevent deviations and failures during production. Regulation is not in full, due to not making full use of material, time, and organizational provisions. There is a shortage of some materials and preparations, not organized extra shifts, and resources, which are not reallocated between the shops.

To implement solutions to regulate the lack of resource support solutions, i.e. the lack of resources available to those responsible for the implementation, as well as information management, which is the ability to carry out concerted action by all the performers, the following scheme will be utilized:


Figure 1.1

In studying the operational management of the company, the following deficiencies have been identified:

The daily monitoring of the implementation of the production tasks was not carried out;

There were no weekly comparison of the actual state of production process with the planned for this point in time one;

No analysis of the causes of deviations was held out, as well as there were no reports sent to the decision-making unit for the purpose of economic analysis;

The economic planning department did not develop the following outputs in a timely manner: production schedules showing the daily and weekly plans and execution of works, the plan specifying the manufacture of products for a month;

There was a lack of systematic monitoring of the production situation in all the links of the technological enterprises; the case was only in the event of a failure in the production process.

In order to improve the activity of the enterprise of converter, it is necessary to implement a number of measures aimed at improving the operational management of the company. They are as following:

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Monitoring the daily performance of the manufacturing jobs;

Comparing the actual state of production with a planned one for this point of time on a weekly basis;

Analyzing the causes of deviations and transmitting the results of the economic analysis to the decision-making unit;

Planning and Economic Departments should develop operational and production schedules showing the daily and weekly plans of work as well as indicate the plan of manufacturing for a month;

Systematic monitoring of the production situation in all the links of the technological enterprise, consider the questions not only in the event of a failure in the production process;

Monitoring the shipment of goods from the warehouse.

In order to fulfill this task it is necessary to create a service supervisor. The organizational structure then is presented in Fig. 1.2.


Figure 1.2.


Figure 1.2

The development of operational and production plans has been the main responsibility of the technical director. The finished job is sent to the head of the planned production, as well as to the economic planning department, where the information is recorded and compared to a predetermined program and calendar schedule. Production Manager sends the job directly in production. This decision unit controls, on the one hand, the state of the controlled process, and on the other, it corrects the uniformity of output in accordance with a predetermined program.

With production, ready plan target is sent to the dispatcher service, namely to the production and dispatch department, which carries out operational records of the planned targets. Then the processed information supplies operational control department, which includes the information and directs the Department of Economic Analysis. Here it is finally formed. The results are compared with the planned targets. Designed report is sent to the Economic Planning Unit, where the information is processed again, checked with the schedule, and ?a general conclusion to the Technical Director is made .

Production-dispatching department and the department of operational control are collecting and grouping data on the implementation of the planned task daily, and the department of economic analysis – weekly.

The effectiveness of operations management is largely determined by the use of an automated system for monitoring the course of production; hence, the company must implement an automated system of control over the course of production.

The production process


Decision block


Technical Director


Production Manager


Planning and Economic Department


Production and Dispatch Department


The Economist







Production Manager


Decision block


Technical Director


Planning and Economic Department


Operational accounting

Production and Dispatch Department


Operational control


The Economist


Economic analysis


The Economist











The production process



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