Question

‘DF Telecom Ltd.’, which produces a range of mobile phones for the Indian market, set a target to produce 30,000 units of mobile phones in the month of December 2025.
This was the benchmark against which actual performance would be measured. At the end of the month, it was found that only 27,000 units were produced.
Concerned with the shortfall, the General Manager asked the Production Manager to find out and resolve the problem.
State the steps related to the process of one of the functions of management which the Production Manager has to take to find out and resolve the problem.

Hint:

Controlling ensures that the "Planned" and "Actual" results are synchronized.
Comparison $\rightarrow$ Analysis $\rightarrow$ Correction.

Answer 1

Step 1: Identify the function of management involved.
DF Telecom had fixed a target of 30,000 mobile phones for December 2025 and only 27,000 were actually produced. Comparing actual output against a pre-set target and fixing the gap is the job of the Controlling function of management.
Step 2: Recall what controlling means.
Controlling is the management function of measuring actual performance against the standards set in advance, finding out why any gap exists, and taking action so the plan gets back on track.
Step 3: Apply the steps of the controlling process to this case.
First, the standard is already fixed, 30,000 units for December. Second, the Production Manager measures actual performance, the 27,000 units actually produced. Third, he compares the two and works out the deviation, a shortfall of 3,000 units, and judges how significant it is. Fourth, he analyses the causes of this deviation, such as machine breakdown, shortage of raw material or labour absenteeism, focusing on critical points rather than every small detail.
Step 4: State the final step and the answer.
Once the cause is known, he takes corrective action, for example repairing the machine, arranging raw material, or reallocating labour, so future output meets the target again. So the steps are: setting the standard, measuring actual performance, comparing actual with standard to find the deviation, analysing the cause of deviation, and taking corrective action.