The objectives of production management are “to produce goods and services of the right quality, in the right quantities, according to the time schedule and a minimum cost”.
Objectives of production management may be amplified as under:
Producing the right kind of goods and services that satisfy customers’ needs (effectiveness objective).
Maximizing output of goods and services with minimum resource inputs (efficiency objective).
Ensuring that goods and services produced conform to pre-set quality specifications (quality objective).
Minimizing throughput-time- the time that elapses in the conversion process- by reducing delays, waiting time and idle time (lead time objective).
Maximizing utilization of manpower, machines, etc. (Capacity utilization objective).
Minimizing cost of producing goods or rendering a service (Cost objective).