Thus the objectives of production management are reflected in:

1. Right Quality
2. Right Quantity
3. Predetermined time
4. Pre established cost (Manufacturing cost)

1. Right Quality:
The quality of the product is established based upon the customers needs.
Customers needs are translated in to product specifications by the design or
engineering department. The manufacturing department then translates these
specifications in to measurable objectives.

2. Right Quantity:
The manufacturing organisation should produce the products at the right
number. If the products are produced in quantity excess of demand the capital
will block up in the form of inventory and if it is produced in quantity short of
demand, there will be shortages of products. Thus a decision is to be taken
regarding how much to produce. (Right quantity)

3. Manufacturing Costs:
Manufacturing costs are established before the product is actually
manufactured. The manufacturing department has to manufacture the
products at the pre-established cost. In any case, any variation between the
actual costs and the standard (pre established) should be kept at minimum.

4. Manufacturing Schedule:

Timeliness of delivery (schedule) is one of the important parameter to judge

the effectiveness of production department. There are many reasons like nonavailability of materials at right time, absenteeism, machine break down etc.
Which affect the timely completion of the products. So the manufacturing
department should organize its activities in such a way that the products will
be manufactured as per schedule.
To achieve the above objective, the manufacturing/production department has
to make the optimum utilization of various inputs like men, material and
machine. So to have a better utilization of resources, the production
department has to achieve the other objectives, which are lower in the
hierarchy. These objectives are called intermediate objectives and are going
to optimize the utilization of resources.

Intermediate Objectives:
The intermediate objectives can be stated in terms of:

1. Machinery and Equipments:

The objective concerned to these areas is that the machine and equipment
should be such that they should be able to produce the products as per the
specifications and accuracy required. The total cost of procurement and
running cost should be minimum. Once the machines are procured and put to
productive use, then the next objective is to utilize these resources to the
maximum extent.

2. Materials:

The materials should be made available when required as per the

specifications (shape, size, quality etc.) and at the most economical price. The
production department should aim at maximum utilisation of the material with
minimum wastage and scrap.

3. Manpower
Manpower is an important resource or input to production and the success of
production depends to a greater degree upon the type of manpower an
organisation possesses. Thus, there should be a perfect matching between
the workers & jobs and the manufacturing department climate should be such
that the potential skills and energies of the workers should be channelized in
to constructive outputs. The objectives are set with respect to productivity per
worker labour turnover rate, safety and industrial relations etc.

4. Supporting Services:
This helps indirectly to achieve the other objectives and adequate provision of
the services helps to utilize other inputs effectively. The objectives should be
set for each of the services like water steam, power, material handling, etc.
Thus intermediate objectives are supporting to the primary objectives. The
achievement of these objectives helps the company to satisfy the customer
needs and increase the market share resulting in increased profitability.
Producing right kind of goods

Maximizing output of goods

Quality objective

Capacity utililisation

Cost objective