Ultimate objective, Operation Management

Assignment Help:

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.


Related Discussions:- Ultimate objective

Efforts to reduce materials waste & procure materials, 1. In the hypothetic...

1. In the hypothetical manufacturing company (figure) what other actions do you think management might take in addition to their efforts to reduce materials waste, procure material

Explain project procurement management, When concerned with project procure...

When concerned with project procurement management regarding a project, list the different steps of the supply process and reasons why or why not the project would have been more s

Explain why champion the plaintiff is suing, Champion v.Dunfee case a) W...

Champion v.Dunfee case a) What happened in this case as to why Champion the plaintiff is suing? b) Who did Dunfee try to bring into the case and why? c.) As to the girlfri

Explain how many pounds of pepperoni would you order, Charlie's Pizza order...

Charlie's Pizza orders all of its pepperoni, olives, anchovies, and mozzarella cheese to be shipped directly from Italy. An American distributor stops by every eight weeks to take

Explain staff time is saved in the form of reduced staff, As throughput imp...

As throughput improves, staff time is saved in the form of reduced staff worked hours per unit of service

Control charts for attributes - statistical process control, Control Charts...

Control Charts for Attributes - Statistical Process Control Attribute data assume only two values, such as pass/fail or good/bad: they are counted rather than measured. Many q

Explain case studies with ethnographic research, 1. What benefits can be ga...

1. What benefits can be gained from case studies? What dangers, if any, are there in using case studies? In what ways are they useful? Support your answers. 2. Provide some exam

Explain mcdonald''s prospects of success against competitor, Choose at leas...

Choose at least one of McDonald's competitors and discuss its position relative to McDonald's. Comment on McDonald's prospects of success against this competitor.

How to prepare for career advancement, After reviewing the chapter, suggest...

After reviewing the chapter, suggest all possible ways that Scott can prepare herself for career advancement

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd