Output control is a  technique for controlling output where actual output is compared to planned output to identify problems at the work center.

An organization must be aware of the products it is putting out into the market. It must be aware of the condition of the finished goods and also how it is being accepted by people.

It must then analyze all this information to predict any mismanagement within the production line or processing, and implement any preventive measure to overcome it, if necessary.

Output control is the technique that analyses the output, which is the finished product, or the services that are being provided by a firm. One thing must be made clear that the output or the end product is apparently the only thing that the customer gets to analyze.

 As a customer is neither accustomed to the high-end production facility a company might provide, nor even if the employees function in an extremely organized manner, or even if the machines and implements used by the company are first quality products, none of it is witnessed by the customer.

The only thing a customer gets his hands upon is the finished goods, or the quality of the service being provided. Thus this is what he tends to judge with and compare between two companies; the one with a lesser impressive performance falls short.

Hence, a company needs to devise a method to keep up the standards of its finished goods. For this, a firm generally appoints a manager to look into the quality of the products being delivered to the customers. A company needs to perform up to its mark and reputation in the market, to keep its good name going.

You cannot expect a quality product every time, without enforcing system control. Establishing a controlling system in a company will keep up the standards by maintaining the quality of the product, look out for any discrepancies, and if found implement methods to correct them.

The system output control might also suggest a prominent change in the manufacturing process or production line up; it might also be a problem with late deliveries and improper packaging that is causing a company to lose out on customers. If no immediate step is taken to remedy these, it may result in a long term setback.

Examples of output control

A famous airline company once found itself losing out on shares and falling far behind its competitors on the trusted list of airlines over a period of time. The managers stepped into the matter and soon it was discovered that not more than 77% of the flights actually reached their destination on time. This was a major issue and had to be solved quickly.

The airlines started organizing elaborate periods of employee training and hired only experienced pilots for a while. They introduced strict policies and penalties for breaking them.  All this had a positive effect, and soon within a period of 5 years the airlines found itself back into the game and had also made a profit of a few million dollars.

One more example of output control. A company producing and selling electronics goods must be sure of the standard of the products and longevity. The finish must be high end to attract the rich and funky and at the same time interest the ones after quality products. One such mobile phone company made a market survey after it’s brand value started going down.

It was found that despite starting at the top of the chart, the mobile phones had fallen out of the competition. It was found that while all its contemporaries had a huge battery capacity, this mobile phone had very little capacity. The company soon kicked back with a newer version with all upgraded features and huge battery capacity and took over the market.

Hence, system output control is an extremely crucial point and is like a preventive measure guarding an organization against imminent failure.

Get more definitions about Output control and other ERP related terms here.


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