Medium-term decisions

• Determining the production budget

  • Components that will affect price of the product
  • cost of the building, the factory layout, cost of raw materials, wages of people, etc...
  • The cost accountant -> has to give accurate estimates of costs which enables the business to determine a competitive selling price
  • works for financial, production and operation functions to determine where to minimise costs without sacrificing
• Determining production quantities

  The production quantities will be determined by: If

  • Capital investment is needed to obtain the required equipment
  • large scale may be better to ensure the optimum return on investment
  • Final Product allows for a high level of standardisation
  • large-scale production will benefit most
  • Service with local demand
  • e.g nail tech is typically a small business but can be franchise
  • Nature of a product: exclusive product
  • smaller production
• Materials management (stock control)

  • ensure production process runs smoothly by ensuring current materials
  • monitoring takes place to keep production in flow by making sure that all needed materials are there in time and the correct quality
  • deterimined optimum stock level is set based on operations
  • EPOSSE is commonly used
• Safety measures

  • Workers need to understand the rules, regulations and risks as well as what to do and how to do it safely and understand the importance creating a safer and more productive working environment
  • Training Programmes

  *Employee Orientation, Refresher Training, Skills Training, Safety Awareness Training, Audit and Accidental, Investigation Techniques

  • Promotional Activities

  *Display Factory Safety Policy, Display Safety Signs, Display Accident Statistics, Provide Safety Handbooks, Practice Emergency Drills, Safety Campaigns, Promote Safety Improvement Teams
• Maintenance

  Maintenance prevents unnecessary break downs which may result in a slower (and less economical) production process

  Benefits of Maintenance

  • Improved Safety
  • Increased Lifespan of Equipment
  • Lower Operation Costs
  • Reliability of Production
• Types of maintenance

  • Corrective maintenance or remedial maintenance
  • Repairing already broken machine
  • Preventative maintenance
  • Done as soon as a problem arises to forestall machine breakdowns and preventing lost production time
  • Conditional maintenance
  • regular interval routine maintenance