Including bonuses for reducing expenses in the list of bonus payments for the production manager is a risky move. In pursuit of savings, the director may reduce costs so much that the quality of the product suffers. At the same time, if you do not demand from the manager an economical use of resources, he may build the production cycle in such a way that the costs will be inflated.
Production Manager
Any production activity is associated with the need for significant capital investments, which are spent on purchasing raw materials, paying for electricity, and paying wages office 365 database to personnel. Miscalculations in planning are not always the result of malicious intent. The production manager has a lot of daily concerns, solving which he may not notice the problem as a whole. The director solves the problem of a machine malfunction, replaces an employee who skips a shift, gets a new batch of material from suppliers to replace the defective one. In this routine, he may not even see that costs have increased by 5% over the year, and the share of defective products has increased by 10%. These results seem to the manager to be a temporary phenomenon, beyond his control, although they bring losses to the company.
Careful planning of resource consumption rates, which may be deliberately understated, helps solve these problems. This forces the manager to optimize production. Limiting the funding budget can also help to spend funds economically.
Ignoring safety requirements to achieve planned indicators
This problem, unfortunately, is relevant for Russian realities. Limited resources often encourage the manager not to optimize production, but to save on items that are not directly related to the production cycle. These often include measures to ensure the safety of workers and production workshops. As a result, accidents and incidents occur, fires that not only cause losses to the company, but also take lives.
There are many examples of man-made accidents. The Sayano-Shushenskaya hydroelectric power station, the Chernobyl nuclear power station, the explosion in the oil and gas separator at the Zenit oil and chemical engineering plant. The causes and consequences in each of these cases are different, but in all of them one thing is constant: the human factor. Following the investigation of each of these incidents, the guilty parties were identified and brought to criminal liability for violating safety requirements.
Selecting a production manager is far from a simple task, the successful solution of which determines the stability and competitiveness of the company. At the same time, it is necessary not only to find a candidate who meets all job requirements, but also to establish control over his work. This will protect against abuse on the part of the manager and ensure