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By B. H. Walley (auth.)

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Ii) Improvements to machine design, work flow and plant layout to be carried out effectively and in keeping with the requirements of the cost reduction and overall profit plans. (iii) Effectiveness of machine utilisation and factory services to be maintained at predetermined levels. (C) Production planning and control manager (i) Maintain balance between sales demand and factory capacity. (ii) Maximise machine and labour utilisation, and so output. (iii) Ensure delivery requirements are met, once delivery dates have been agreed.

1. Define the company's business so that it helps in deciding between all the trade-offs. 2. In the light of the definition stated in step 1, discuss the various trade-offs which face the company. Choose those which appear to be relevant and appropriately 'weight' them. 3. Consider the company's internal and external environments (especially technological change, competition, resources generally and competence) and the past performance of the company. Decide upon the figures which legitimately might be achieved- that is, in return on equity, gross profit, market shares, and so on.

EstabHshing Objectives 49 (D) Trade-off situations A trade-off is the activity of balancing the advantages of competing alternatives. Some objectives may be mutually exclusive- growth and short-term profit, profit and market share, profit. and non-profit goals, and so on. An evaluation of the comparative advantage of each objective is required, and a choice made of those which best serve the interests of the company. 5 SOME FACTORS WHICH MAY HELP TO ESTABLISH QUANTI FlED OBJECTIVES 1. 2. 3. 4. 5.

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