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
Activity Instructions There are two parts to this assignment. Part 1: Revise the previous flowchart you created based on any new or different information you gleaned during the las

1. How could Denver B-cycles use other wired or wireless network technologies to gain a competitive advantage? 2. What Information not described in the case can Denver B-cycle u

Explain objectives of job evaluatio. Objectives of job evaluation: a) Decides the relative values of various jobs in an organization.  b) Helps to formulate a suitable a

Paranzino claims she deposit $200,000 in a bank but was given a receipt for only $100,000, but she did not notice the mistake until later. She sued the bank, but attended court ord

Suppose 40 observations of a random system component have been recorded as shown in the table below (these numbers are sorted). 0.0345 0.1079 0.1313 0.1452 0.1788 0.2101 0.2249

Of the six reasons that scheduling resources is important, select which one of the six reasons appears to be the top priority and justify your position.

Explain functions in which industrial manager is involved? The Industrial Manager is occupied in the given functions:- (i) Design products which will find acceptance in comp

Cunningham Performance Auto, Inc. modifies 375 autos per year. The manager, Peter Cunningham, is interested in obtaining a measure of overall performance. He has asked you to provi

What are the Chase demand strategies? Chase demand strategies: It is just the opposite of a level capacity strategy. The organisation frequently chases customer demand an

Variables - Statistical Process Control The output of many processes can be measured, and an individual measurement may take any value on a continuous scale. For example, this