Supply and demand affect planning and control If planning and control is the process of reconciling demand with supply, then the nature of the decisions taken to plan and control an operation will depend on both the nature of demand and the nature of supply in that operation.
By contrast, a small painter and decorator serves the domestic and small business market. It is the process by which managers establish goals and define the methods by which these goals are to be attained. A planner chooses the most appropriate alternative. Larger jobs that take more time will not enable the business to invoice as quickly.
With the determining of objective, the way to achieve the objective is decided in the planning. Manufacturing instructions and purchasing request will all be dependent upon this figure. Local village carnivals, for example rarely work to plan.
Major decisions regarding the capacity of power stations are made many years in advance. Similarly, the physical nature of the equipment used may determine sequence. It is easier and faster to move the cutting equipment to an adjacent size up or down than it is to reset the machine to a very different size.
All these activities of scheduling, coordination and organization are concerned with the planning and control of the hospital. They will use forecast of likely demand which are described in aggregated terms. Planning quite logically, therefore, comes first before executing of all other managerial functions as it involves establishing the objectives necessary for all group efforts.
The weather also affects demand, and is more uncertain, but can to some extent be predicted.
While an effort is made to find out these answers, the possibility of social, economic, technical and changes in legal framework are kept in mind.
Enterprise objectives should give direction to the nature of all major plans which, by reflecting these objectives, define the objectives of major departments.
Soon after the patient arrives, he or she will be checked 1 to make sure that the condition is as expected in much the same way as material is inspected on arrival in a factory.
An objective can be defined as the end point goal toward which management directs its efforts and resources. Similarly, different categories of staff will have been identified and broad staffing levels in each category set. First look for the smallest processing time.
It is a relatively simple task to represent alternative schedules even if it is a far from simple task to find a schedule which fits all the resources satisfactorily. Similarly, planning is the base of other functions like directing and controlling.
Since agreement to utilize a given set of premises is important to coordinate planning, it becomes a major responsibility of managers, starting with those at the top, to make sure that subordinate managers understand the premises upon which they are expected to plan.
Otherwise, wasteful inefficiencies would give rise to higher prices, severe shortages, and great public dissatisfaction. However, although longest operation time sequencing keeps utilization high, this rule does not take into account delivery speed, reliability or flexibility.
The nature of the decisions taken to plan and control an operation will depend on both the nature of demand and the nature of supply in that operation.
Uncertainty in Supply and Demand Uncertainty makes both planning and control more difficult. 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. Supply and demand affect planning and control If planning and control is the process of reconciling demand with supply, then the nature of the decisions taken to plan and control an operation will depend on both the nature of demand and the nature of supply in that operation.
The planning and control necessary for this kind of operation can be called resource to order planning and control. Other operations might be sufficiently confident of the nature of demand, if not its volume and timing, to keep in stock most of the resources it requires to satisfy customers.Download