The objective of the production management is ‗to produce goods and services of Right Quality and Quantity at the Right time and Right manufacturing cost‘.
1. Right Quality: The quality of product is established based upon the customers need. The right quality is not necessarily being the best quality. It is determined by the cost of the product and the technical characteristics as suited to the specific requirements.
2. Right Quantity: The manufacturing organisation should produce the products in right number. If they are produced in excess of demand the capital will block up in the form of inventory and if the quantity is produced in short of demand, leads to shortage of products.
3.Right Time: Timeliness of delivery is one of the important parameter to judge the effectiveness of production department. So, the production department has to make the optimal utilization of input resources to achieve its objective.
4. Right Manufacturing Cost: Manufacturing costs are established before the product is actually manufactured. Hence, all attempts should be made to produce the products at preestablished cost, so as to reduce the variation between actual and the standard (preestablished) cost.
