Every Manager Needs To Make The
Right Things Happen
… and therefore needs the right decision
support tools in order to ensure effective controls. With the right
selection of tools made available to managers, the business gets
better control and can operate more effectively. Objectives are
attainable. We can see consequences, evaluate alternatives, communicate
approved plans, measure performance and achieve predicted results.
The tools and techniques available from Production Modelling are
used throughout the business community for the crucial task of planning
the efficient and successful performance of
- Factories
- Supply chains
- Warehouses
- Call centres
- Hospitals
Ensure Your Success
Business leaders will often say that, “planning and preparation
prevent poor performance”.
Questions include: how do we plan, how do we review, how do we ensure
that our plans are communicated effectively, and how do we know
that our plans are achievable?
Successful business plans are often formulated
at various degrees of resolution and to clarify this point we often
talk about the following terms:
Strategic Planning:
A company strategy will often be used to establish long term objectives
and budgets for the business. It may lead to decisions such as plant
capacities and locations, distribution centres etc.
Tactical Planning:
In making the strategy work, some tactical planning is required
to establish the implications of how the strategy may operate within
the constraints imposed by various plant and line capacities, manpower,
working practices, operational and transport costs. A tactical plan
will often form the basis for what is to be done within the next
6 months to 2 years.
Operational Planning
At some point we need to plan what we are going to do today, for
the rest of the week and perhaps for the rest of the month. In making
an operational plan we need to consider more operational detail.
For example, what orders have we got, who is available, what is
the factory situation etc.
The strategic plan feeds the tactical plan which
in turn feeds the operational plan.
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We can see that the plans formulated at
different levels are linked and plans need to be achievable
at all levels. For example the tactical plans need to achievable
at the operational level. It is therefore important to retain
some of the detail at the higher planning levels and to avoid
over simplifications.
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The Importance of constraints
and reviews:
The execution of the operational plan generates revenue and profit.
Profit can be reinvested back up the planning chain and the planning
cycle becomes cyclic. It therefore makes sense for the manager‘s
tools to help the review process as well as the planning process.
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Reviews are oftens seen as critical to
success. When planned performance differs significantly from
the actual performance, then problems start. For example:
If we overestimate what can be achieved
we inevitably fall short, so that future investment is at
risk. If we underestimate what can be achieved, we underestimate
the potential returns so investments are less attractive.
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It is also important to review the business constraints,
as they will often change:
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- With a different product mix
- As a result of investment
- As a result of rationalisation
- With new manufacturing processes
- With new manufacturing methodologies (such as Kanban /
JIT)
- With different tactical plans
- With different operational scheduling methods
- As a result of initiatives such as a Lean Manufacturing
programme
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Tools and techniques such as simulation
help us to understand the constraints.
Tools and techniques such as those embodied within
Orchestrate help us to share
a common understanding of the planning task, and the review task,
throughout the business and throughout the supply chain. This means
that a director can see how the supply chain is working at all levels.
He can take the data off line, and use it to ensure success ahead
of time.
To reiterate: The business gets
better control and can operate more effectively. Objectives are
attainable. We can see consequences, evaluate alternatives, communicate
approved plans, measure performance and achieve predicted results. |
