Breakdown The Functions Into Smaller Activities Essay

Breakdown The Functions Into Smaller Activities Management Essay

The process of controlling the cost is very important and divided into two parts. One part is to identify cost standards and basis of those costs. This can help in setting up a system with the ability to make changes or alterations to reduce the cost and keep it in pre-estimated limits. The other part is to make it possible to match up and evaluate with the actual cost. By these two activities a cost model can be developed. The right and timely feedback is a necessary requirement for this cost control system.

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To understand a complex manufacturing system, it is suggested to breakdown the functions into smaller activities. A model can also be set up to represent a complex system. A reference model illustrates an actual system structure, comparatively independent functioning parts, which is described according to internationally defined terms of these parts (Biemans, 1989). There have been a discussion on manufacturing models for many years and many reference models developed to understand the actual systems.

There is another possible way to represent decomposition, which is architecture. Architecture can be described as an outline or structure which explains the workings, that are necessary to execute an activity of a set up, by the inputs and outputs (Arentsen, 1995).

(Lutters, 1997a) states that the chances of communication during the engineering activities are subject to the presence and reach to the information. During the making of the independent cycle of product development, engineering information play a very basic role (Billo, 1987).

To define a relationship between the cost control and process of manufacturing, Liebers (1998) developed a model, which is used in context of manufacturing planning and cost control. This model consists of three main components of planning, execution and control. The planning component further divided into three sub-components as strategic planning, technological planning and logistic planning. This planning part covers the whole resources attaining and allocation required to produce a product. Second part of technology focuses on the process planning and engineering. The third part logistics is about to provide required resources at right place on time. After planning phase, execution of that planning is done to produce the planned product. There are also many problems during execution, as physical product deviates from the planned specifications. This may force to rework and additional planning as well.

The final component of control is also further divided into sub-components like data collection, processing of data, quality control of ongoing process, time and cost control. This is very important to collect information by observation at the time of execution to identify and control the differences between actual product and the decided specifications. On the basis of collected data, functions and activities can be re-designed or adjusted to obtain the desired output.