CBSE Class 12 Business Studies 2019 Delhi set 1

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Vinber Ltd., set up a manufacturing unit at Bhiwadi in Himachal Pradesh to manufacture electric geysers and supply them to dealers all over the country. Their production target was 500 geysers per week. It was decided by the management that variation in production upto 10 units would be acceptable.
At the end of the first week, the production was 450 geysers. The next week, production increased to 470 geysers. A week later, production was 460 geysers. On investigation, it was found that fluctuation in production was due to irregular supply of electricity.
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Question : 22
Total: 40
The above para discusses some of the steps in the process of one of the functions of management. Explain these steps.
Solution:  
Steps in the process of controlling as discussed in the above case :
(i) Setting performance standards: As in the given case 500 per week is set standard of production.
(ii) Measuring actual performances : After setting up standards the actual result of the given case are 450,470 and 460 geysers per week respectively.
(iii) Comparing actual performance with standards and analysing deviations: As per the given case. Production performance is decreasing every week as compared to standards.
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