You're controlling 2 things here: oxygen getting to your fuel and air flow through the firebox, through the cooking chamber, and out the vent.
The more oxygen you get to your fuel, the hotter it burns. The hotter it burns, the cleaner it burns. Cleaner fires will usually give you plenty of smoke without overdoing it. The smoke coming out the stack should be barely visible, not ashy.
Hotter fires will also draw more air than cooler fires, so the oxygen part also affects the draft component.
I've always heard to keep the exhaust damper wide open to avoid getting too ashy, and tweak the inlet damper to control heat if needed. I've also heard that it's better to control temp by controlling how much fuel you put in.