Ultimate objective, Operation Management

Ultimate Objective

1. Manufacturing costs: The unit cost of the product should  be estimated carefully and every effort should be made to stick to the cost standards. For  this purpose the efforts must be made to separate the costs into two direct costs and variable costs. Efforts should be made for the followings.

  • Reduction in the  variable costs,
  • Reduction in the fixed costs.
  • Raise in the volume of production and hence the fixed costs may be spread over more production resulting in the reduction in the per unit absorption.
  • The allocation of the fixed overheads should be made on scientific basis.

 

2. Product Quality: Generally the product quality standards are often established by  the product specifications or by the  consumers.The manufacturing organization should try  to translate such  quality prescriptions  into some  measurable objectives. It must be noted that the product feature comes in conflict with the manufacturing cost objective and the manufacturing time schedule. The safeguarding of the quality must not result in increase in manufacturing costs or delay in the production. A proper balance should be maintained among quality and costs as well as quality and time schedule.

3. Manufacturing  Schedule: There are many forces which  compel  side tracking  in the  manufacturing activity. The time plan  must not be set for the  shipment alone it should be broken up into all the sub systems like operating cycle time inventory turnover rate, machine utilization rate direct and indirect man hours per unit, capacity utilization machine and labour idle time set up repair and maintenance time etc. Time schedule objective directly affects the cost quality and the goodwill of the business in terms of regularity of shipment.

Posted Date: 12/11/2012 5:09:16 AM | Location : United States







Related Discussions:- Ultimate objective, Assignment Help, Ask Question on Ultimate objective, Get Answer, Expert's Help, Ultimate objective Discussions

Write discussion on Ultimate objective
Your posts are moderated
Related Questions
A bank manager wants to determine the percent of time that tellers are working and idle. She decides to use work sampling, and her initial estimate is that the tellers are idle 30

We have all worked with someone who did not seem to fit the role for which he or she was hired, or did not seem to fit in with the organization, or did not have the right skills fo

A popular concept in healthcare administration these days is the service line. Let us put you in the CFO position for this question. For your own hospital, are you in favor of serv

1. What are the order winning criteria for this organisation? Where does the company sit in Schmenner's Service-Process matrix and can you detect the adoption of the principles und

Production Control Meaning and Definition Production control involves implementation of production plans or schedules by coordinating different activities. It seeks to

WHAT WOULD BE A GOOD RESEARCH QUESTION ON THIS TOPIC FOR A GROUP PROJECT

The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure, w

Distinguish between a general benefit and a specific benefit. Why do customers respond positively to specific benefits?

What are the factors to effect capacity levels? Factors effecting capacity levels are as follows: • Resources accessible for example, labour and skills, machine time and

Process Solutions provides a computer-based document processing service. The accountant has produced the following analysis.   Standard Modifi