But typical planning is replete with uncertainties, problems of capital shortages, and intangible factors, and so evaluation is usually very difficult, even with relatively simple problems.
Control is a fundamental management function that ensures work accomplishment according to plans. The benefits of production planning and control are as follows: That is, know what you are going to do next and know how risk may disrupt your plans. Edwards Deming during the s as a universal improvement methodology.
There is seldom a plan for which reasonable alternatives do not exist, and quite often an alternative that is not obvious proves to be the best. Effective control through efficient superiors can only be a guarantee for success.
Whilst this method has its root in manufacturing and quality control it follows basic cybernetic theory. A well thought production planning ensures that overall production process is streamlined providing following benefits: Production planning is required for scheduling, dispatch, inspection, quality management, inventory management, supply management and equipment management.
It ensures that inventory level are maintained at optimum levels at all time, i. In fact, control is the process of checking to determine whether or not proper progress is being made towards the objectives and goals set by management while doing planning.
But a balanced viewpoint is that both the management and the employees should be put under some kind of control. The concept, which is founded on statistical quality control, is simple: Typically, this is depicted as the project planning and control Planning and control.
How you achieve this is a matter of choice. The importance of project planning and control cycle — or the project control cycle — cannot and should not be understated. If planning is looking ahead, control is looking back. It is not unusual for chief executives in well- managed companies to force top managers with differing views, through group deliberation, to arrive at a set of major premises that all can accept.
This elimination process helps the manager determine which alternative would best accomplish organizational objectives. Project Planning and Control The Project Control Cycle Similarly, in project management the project manager needs to create an environment where any change to the project plan is fed back as information.
Often it is said that planning is the basis, action is the essence, delegation is the key, information is the guide and control is the lifeblood of the success of any business enterprise. Because the number of alternative courses in most situations is legion and the numerous variables and limitations are involved, evaluation can be also exceedingly complex.
Production planning and subsequent production control follow adaption of product design and finalization of a production process.
Control should be engrained in the basic policies of any type of business organization. The overall budgets of an enterprise represent the sum total of income and expenses with resultant profit or surplus and budgets of major balance—sheet items such as cash and capital expenditures.
Companies will be able to identify problems that will occur in the future and then have ample time to correct them in the most effective way. Watch a webcast to hear discussions on IPC and recommendations for improvements. Production control ensures that production team can achieve required production target, optimum utilization of resources, quality management and cost savings.
It is therefore usually necessary for the planner to reduce by preliminary examination the number of alternatives to those promising the most fruitful possibilities or by mathematically eliminating, through the process of approximation, the least promising ones.
Main steps in the planning process 1. It reduces overall production cost by driving in efficiency. One course may appear to be the most profitable but require a large cash outlay and a slow payback; another may be less profitable but involve less risk; still another may better suit the company in long—range objectives.
A company may wish to enter a new product line primarily for purposes of prestige; the forecast of expected results may show a clear financial loss, but the question is still open as to whether the loss is worth the gain.
And to do this effectively, the project manager needs to plan. Objectives specifying the results expected indicate the end points of what is to be done, where the primary emphasis is to be placed, and what is to be accomplished by the network of strategies, policies, procedures, rules, budgets and programs.
To ensure capacity utilization is in tune with forecast demand at all the time.
Enterprise objectives should give direction to the nature of all major plans which, by reflecting these objectives, define the objectives of major departments. These are forecast data of a factual nature, applicable basic policies, and existing company plans. The project planning and control cycle assumes that there is an agreed plan Once this is in place the project manager needs to continually measure progress against the plan, re-forecast to the end of the stage or project and take any steps necessary to bring the project back on course.
The author shares his insights into improving operational performance, customer service, and financial bottom lines by properly applying IPC. Regulate inventory management Optimum utilization of resources and production process The advantages of robust production control are as follows:Control and planning are interrelated so closely that they cannot be separated from each other.
Without control all the planning is fruitless because control consists of the steps taken to ensure that the performance of the organization conforms to the plans.
Properly applying Integrated Planning and Control (IPC) improves operational performance, customer service, and the financial bottom line.
Planning and Control are very important for success of an operation unit.
For effective operation in a manufacturing unit, it is essential to integrate the production planning and control. Planning and control are critical management activities regardless of the type of organization being managed. Modern managers face the challenge of sound planning and control in small and relatively simple organizations as well as in large, more complex ones, and in nonprofit organizations.
Inventory planning and control is a typical of independent demand planning and control. Responding to Demand Dependant and independent demand concepts are closely related to how the operation chooses to respond to demand.
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