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Nature of Planning and Control

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Nature of Planning and Control

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Chapter 10 – The Nature of Planning and Control
The most important issues to consider however are those concerned with the nature of planning and control. Although planning and control are two separate activities, in practice, very difficult to separate.. These determined the ‘ingredients’ to be put into the operation and how those ‘ingredients’ were going to be positioned relative to each other. Planning and control is the next task – taking the designed operation and making it work on a continuous basis. Planning and control is therefore a dynamic activity. Planning and control

Planning and control are different but very closely related. Planning is a formalization of what is intended to happen at some time in the future. A plan does not guarantee that an event will actually happen; it is a statement of intention. Although plans are based on expectations, during their implementation things do not always happen as expected. Control is the process of coping with any changes that affect the plan. It may also mean that an ‘intervention’ will need to be made in the operation to bring it back ‘on track’. Planning involves deciding what to do, when to do it, and what resources should be allocated to them. Control involves making sure that plans are actually taking place in practice and responding when things do not according to plan. Planning looks at activities sometime in the future. Control looks at activities that are happening now. Significance of planning and control

* Long-term planning and control (uses aggregated demand forecasts, determines resources in aggregated form, and Objectives set in largely financial terms) * Medium-term planning and control (uses partially disaggregated demand forecasts, determines resources and contingencies, and objectives set in both financial and operations terms) * Short-term planning and control (uses totally disaggregated forecasts or actual demand, makes interventions to resources to correct deviations from...

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