Intermediate objective goals
1. Machinery and Equipment: The objectives in the area of machinery and equipment are divided into:
- Acquisition of machinery and equipment.
- Utilization of machinery and equipment.
The adequacy of the existing of the machinery should be considered and proper additions and replacements should be made according to the requirements. Efforts should also be made to increase the utilization rate of machinery through repair, maintenance and maximum occupancy of the machines .
2. Materials: The materials objectives must be prescribed in terms of units rupee value and space requirements. The per unit materials costs should be specified and efforts should be made to increase the inventory turnover of all types of inventories raw materials work in progress and finished goods.
3. Manpower: Manpower is an important as well as typical input in manufacturing activities. So the objectives of the production activities are as regards manpower must be closely allied with the objectives of selection, placement, training, rewarding and utilization of manpower. Generally these objectives are considered in terms of employee turnover rates, safety measurements, industrial relations, absenteeism and so on.
4. Manufacturing Services: The provision of proper and adequate services directly affects the utilization of other inputs such as men machines and materials. Proper objectives should be set for the installation of important facilities such as power, water supply material handing etc. In a condensed form it can be stated that the objectives of the manufacturing activities are to manufacture a quality product, on schedule at the lowest possible costs with maximum asset turnover, to achieve consumer satisfaction. This statement is closely related to the ultimate and intermediate objectives of the production function