Corporate Planning and Control in German industry

This article records some important results of an extensive empirical investigation in GFR. In so doing the structure and the stage of development of Corporate Planning and Control Systems in 355 industrial companies were analyzed—in addition other systems were investigated. Within the context of the planning and Control Systems, the multi-echelon organization of the system, the time scale and the differentiation of the plans as regards content, co-ordinated planning between various management levels (multi-echelon co-ordination) as well as the harmonization, adaptation and formalization of the plans and the planning, were investigated. Furthermore the content of the planning— for example, objectives, programmes, resources, and budgets—, the various sectional plans of the company, the organizational units, information as well as the interrelationship between the different management levels as regards information and the instruments for planning and control, were surveyed. In relation to the other systems, the organization, information, and management development systems as well as the general management system were analyzed.Within the context of the empirical investigation the structure and developmental stage of Planning and Control Systems in 355 industrial companies in the GFR were analyzed. As the basis for the empirical study a technological concept for Planning and Control Systems was worked out, which is based on a comprehensive planning and control theory.     

A production management information model for discrete manufacturing

The Manufacturing Systems Integration (MSI) project at the National Institute of Standards and Technology is developing a system architecture that incorporates an integrated production planning and control environment. The development of this architecture includes the definition of information models describing the information which needs to be shared among production management systems (production planning, scheduling and control systems) in order to achieve the integration of manufacturing systems. This paper presents the production management information model within the MSI project. The main focus of the model is to identify and characterize the relationships between orders and workpieces, to identify the information necessary to achieve workpiece tracking and to identify the information necessary to achieve resource requirements specifications for process plans.     

CIM implementation for job-shop environments

Abstract

Abstract. The small to medium-sized job-shop manufacturing industry can benefit most from the implementation of computer integrated manufacturing (CIM) technology, to meet the increasing demand for high-quality and economically priced products. The injection mould making industry is a typical representative for this group, where a manufacturer would generally produce moulds which consist of parts that are standard to every mould type or very similar. Thus, manufacturing techniques, such as group technology (GT), and production planning and control (information) management systems could make significant contributions in improving the efficiency of design and production operations.

The objective of the project, presented in this paper, was the development of a GT-based classification and coding (C/C) system for injection mould parts especially for the design and process planning phases, and the development of a production planning and shop-floor control (SFC) information management system.

An extensive investigation was carried out on existing GT-based C/C systems. This investigation, followed by a thorough examination of many injection mould parts for determining geometric similarities, led to the development of part families (classes) required for GT implementation. An OPITZ-type GT system was developed, thereafter, for the C/C of the manufactured parts of the target company.

The production planning and control software that has been developed for the target company utilizes a relational data base management system. It consists of 13 application programs, which provide a tool of organizing information for efficient production planning and SFC. The programs are designed to cover all manufacturing operations of a job from the proposal to the final testing stage. Shop orders and dispatch lists are created using this software for effective and prioritized SFC. Shop status and job status reports are generated based on feedback information received through time card entries.     

REQUIREMENTS PLANNING FOR CONTROL OF INFORMATION RESOURCES

Producing reports assembled from files, records, and raw data is a major function of the computer in modern organizations. Transaction processing, records management, file organization, and data-base management are aspects of the information production function that have received a good deal of attention. But planning, scheduling, and controlling the production of information products have been neglected. For complex applications involving assembly of reports from multilevel information sources, the requirements planning model is suggested as an effective alternative to present methods. Thus, our suggestion is that the computer be used to plan, schedule, and control computer production of information products. Presently available material requirements planning software may be employed with minor modifications that depend on the given information system characteristics. In this paper an example of requirements planning as applied to production of information in a satellite control system is presented.     

A modified hierarchical production planning system integrated with MRP: A case study

In this paper, a hierarchical planning system is proposed which integrates aggregate capacity planning with MRP. This system is to be implemented in a metal box manufacturing company which multi-user MRP system covering manufacturing activities as well as procurement sales order processing and accounting systems. The hierarchical planning system includes a medium-range aggregate planning model adapted to the firm's requirements and strategies. The model consists of a mathematical formulation which covers labour capacity has already installed a constraints and includes certain cost estimations in the objective function. The planning horizon of the medium range planning is taken as twelve months in order to cover sales seasonality. The aggregate production quantities resulting from the optimized medium-range planning model are disaggregated according to procedures already found in the literature. Furthermore, the theoretical infeasibilities pertaining to the disaggregation procedures are also resolved in an heuristic manner. Using the latter modified disaggregation procedure, a feasible disaggregated plan is generated for the whole planning horizon. The proposed plan is compared with the current production policy of the firm and it is observed that the proposed plan leads to backorder reduction.     

Planning and control systems in materials management-an empirical study

The article presents a conceptual framework for the planning and control system in materials management. By an empirical analysis, three phases of development of the planning and control system in materials management are derived. These are related significantly with the kind of materials management. The main influencing factors are quality of management, quality of controlling, importance of materials management, and importance of the goals of materials management.     

Making strategic planning work in local government.

Since decisions are made through the political process in local government, planners are being advised to modify their style of planning. Planners acknowledge the need to modify the practice of planning, but reforms are introduced within the framework of the comprehensive plan which continues to serve as the principal planning instrument. This results in internal conflicts within the planning process. In this paper a proposal is made for a planning system which is composed of a series of interacting building blocks. The planning process is molded to fit the management function and capability of those involved in the decision process. Plans are developed as management tools and the planning process accommodates the multiple centres which interact to produce a community's policies and strategies.     

Long range planning of U.K. and Japanese corporations—A comparative study

The author conducted mail surveys on long-range planning systems in Japanese and British corporations. He also made a number of visits to corporations in both countries to analyse the similarities and differences in the planning systems.In the U.K., the clarification of goals and the resource allocation are emphasized but in Japan clarification of goals and basic problem finding are stressed.The strategic projects are not necessarily formulated in the long-range planning process. The relationship between the project and the long-range planning was analysed and in both countries, the trend of long-range planning is towards more strategy orientation than quantitative computation.The planning process in Japan is more centralized. The management committee plays an important role in reviewing and making the final decision. In the U.K., the plan initiation is more decentralized, and in the final decision the board of directors plays a more important role. The trends are, however, from bottom up approach to top down approach.Goals expressed in the long-range plan of the U.K. corporations put more emphasis on financial goals, but that of the Japanese corporations emphasizes growth and employee welfare.Regarding the style of strategic decision-making the subjective responses show that it is partly analytical and partly intuitive. There are some differences between two countries, but this problem needs to be analysed further.To cope with uncertainty, multiple scenarios and contingency plans are more frequently used in the U.K., whereas in Japan the sequential decision is more commonly used. British corporations are better prepared for uncertainty than Japanese corporations.The key success factors of long-range planning are similar in both countries. The involvement of top management and cooperation of line management are two important items. Differences are that in the U.K. the planning system is emphasized in addition to the other factors, but in Japan clear goals are more emphasized.     

Tioxide: Computerization—The key to the future in financial planning

As the capability of new computer systems becomes increasingly sophisticated, so does the application of computer techniques to financial and strategic planning become more relevant to management. Planning and practically all forms of decision-making are concerned with the future, which necessarily is uncertain and therefore difficult to plan for. Forecasting methods, however, can suggest trends and it is possible to reduce the number of possible futures to a manageable number, in effect, creating scenarios. But the viewing of multiple scenarios in a manual accounting system is impractical, given the sheer volume of work, and this is where the facilities offered by computerization can assist decision-making greatly. The case study illustrated here concerns a multinational company with production facilities in seven different countries, using a sophisticated financial software packege for strategic and financial planning applications. The article traces the development of Tioxide's association with a financial modelling package, Planmaster, from initial use on a time-sharing basis to the changes in hardware manufacture which made it possible to run what is essentially a mainframe program on the desk-top microcomputer of the planning department.     

Hierarchische Planung für industrielle Logistikdienstleister

In this paper a planning and control system for logistics service providers (called LPS system) is developed under consideration of their specific flexibility potentials. Due to the complexity of such planning decisions (different planning levels and data quality of these levels as well as time horizons etc.), a multi-stage, hierarchical planning system is proposed which minimizes the relevant costs under consideration of the flexibilities. The advantage of a hierarchical planning concept consists in a limited planning complexity because otherwise data collection and solution development would lead to unsolvable problems in practice. The results of using LPS systems for a real-life case show a significant pay-off for logistics service providers due to the remarkable cost savings by applying a hierarchical planning concept.     

The value of accuracy in information for planning and control

In the operation of planning and control systems we have to utilize information which in many categories possesses errors. It is important, therefore, to be able to assess the impact of inaccurate information on our plans. The author discusses some approaches to this problem when the planning system involves formulae of the management accounting type or models of the operational research variety. The value of information is clearly related to its accuracy and the most appropriate method for quantifying information value in management information systems is through Bayesian analysis and decision trees.     

Engineering of a decision support system for underground coal mine planning and production scheduling

This paper reports on the development of a computer-based management information system at Datong Coal Company, the largest subsidiary of China National Coal Corporation. Particularly presented is the development methodology of a decision support system for underground coal mine planning and production scheduling, including an integration of computer graphics, database management, mathematical modelling and knowledge engineering techniques and a coupling of life cycle and prototyping software engineering processes to support systems quality assurance.     

Long range planning— Japan-USA— A comparative study

This article reports on a comparative study carried out in the U.S.A. and Japan. He concludes that in the U.S.A. long range planning is used to integrate the strategies of divisions and to control the divisions. The planning process is usually bottom-up rather than top-down.In Japan, long range planning is used for improving strategic decisions of top management, so the planning process is a centralized interactive process.Project emphasis rather than quantitative planning is a common characteristic in both the U.S.A. and Japan. However American corporations are more advanced in this respect. Many Japanese corporations suggest that project emphasis is the key success factor for planning.To cope with uncertainty, American corporations tend to update their plans every year or even at shorter intervals, while adopting contingency plans.To the same end, Japanese corporations are using two time horizon plans which are composed of a long range strategy and a medium range plan.With respect to follow-up and implementation, American corporations follow-up more closely and long range planning is used for the evaluation of managers of divisions. The quality of plan and accomplishment are reflected to the economic rewards.Japanese corporations are less inclined to follow up the long range plan itself, but it is considered as important to implement it through the budget and also through the project plan. Project teams are quite frequently used.     

Defining goals—A systems approach

Most planning strategies include a goal development phase, yet very little concrete information is available in the program planning literature to help the planner know what a goal is or should be. Goals play an important role in systems theory and the theory offers a structure for the careful defining of goals. This article identifies the function of goals in systems as being the facilitation of evaluation and control. From this system functional analysis viewpoint, several specific characteristics of goals are derived and discussed.     

Simplified production management software for the small manufacturing firm

This paper proposes design rules in order to simplify current MRP II software systems and make them suitable for the small manufacturing firm. Simplification rules apply to production data management by reducing database complexity. This has consequences for medium-term requirements planning which is moved toward the realization of simultaneous material and capacity planning. The simplification procedure is completed by applying aggregate decision models to shop floor control which allow the introduction of a minimal transaction processing system. Object-oriented analysis concepts are used for the design of the primary production data model, which has a consistent effect on transaction data and decisional procedures throughout the whole production management software system.     

How managers plan—the analysis of managers' activities

This paper analyzes the positions of Mintzberg and planning experts on the extent to which managers plan and the importance of planning to management. Mintzberg contends that managers do not plan. The ‘planning literature’ contends that planning leads to effective management. In a replication of Mintzberg's study, the authors found support for the planning literature's position. The discrepancy between Mintzberg and the planning literature is explained by the shortcomings of the observational method used by Mintzberg. A suggested modification of Mintzberg's method is given.     

Strategies for planning

In recent years there has been a good deal of discussion amongst planning specialists and academics about the gap which exists between the theory of planning as set out in journals and textbooks, and the practice of planning in private and public organizations. Planners are continually complaining about the resistance to planning by top management and operating managers in divisions and departments.In this article the author aims to produce a reconciliation between theory and practice and to discuss what alternative strategies are open to planners in devising planning systems for their organizations.He suggests that the problem has its origin in the fact that corporate planning theory was first developed by management scientists as a total systems approach. Corporate planners have failed to sell an integrated planning system either as programme budgeting or as corporate planning. Research suggests that a management team can only adopt and implement a comprehensive planning system in very special circumstances, e.g. when the organization's survival is threatened, a new management team has been appointed and the staff of the organization are ready to accept radical change.In normal circumstances the planner is wrong to advocate a ‘root and branch’ solution. He must diagnose the planning needs of the organization and his objective must be not merely to establish a particular planning procedure but rather to discover how he can best improve the quality of management decisions.Recent studies on strategy formation indicate that the introduction of a formal planning procedure is only a partial answer to the problem of improving the quality of management decisions.The paper reviews various approaches to planning and considers how they relate to organizations with different strategic problems, with differing organization structures and various management styles.     

Strategic Manufacturing Planning Systems and Their Linkage to Planning System Success

Academics and practitioners alike are focusing more attention on manufacturing strategy after having recognized the important role it plays in shaping the success of industrial firms. Even though research in this area has increased in the last decade, the focus of much of that work has been on the content rather than the process of the manufacturing strategy. Consequently, this study attempts to understand the important elements of the strategic manufacturing planning process and its effectiveness. Borrowing from the extant literature in the fields of strategic management and information systems, we propose a research model that relates strategic manufacturing planning system design to planning system success. Using structured questionnaires, empirical data is collected from over 200 manufacturing executives to test the model hypotheses. Planning process in manufacturing was found to be a bottom‐up approach from a corporate or business perspective, which differs from the top‐down planning process prevalent in strategic information systems planning process. Findings also indicate that greater planning system success in manufacturing is associated with a planning system that combines some “rational” elements (formality, comprehensiveness, control focus, longer horizon) with others that lend adaptability (wider participation and more intense interaction). But the strategic manufacturing planning system is more than just a collection of independent planning characteristics. Instead, it can be viewed as a gestalt planning system whereby planning characteristics move together in affecting overall planning system success.     

Production planning of mixed-model assembly lines: a heuristic mixed integer programming based approach

Process technology capabilities are becoming increasingly important as flexible manufacturing continues to be more prevalent, and as competition compels companies to provide expanded variety, at ever lower cost, so introducing plant and processes technological constraints. Model flexibility can also benefit from an appropriate production planning process, especially concerning mixed-model assembly lines, since it can facilitate master scheduling and line balancing activities, which are essential aspects of flexibility. Robust and practical planning approaches have to take into account two different aspects: the first consists in ensuring that the elaborated aggregate plan can be disaggregated into at least one detailed feasible plan for the realised demand, whereas the second in ensuring that this detailed plan is feasible at the operational level. This article faces the model flexibility challenge, reviewing and discussing the planning problem of a real world assembly manufacturing system, producing high volume and a variety of agricultural tractors and machines, analysing and resolving some important issues related to technological, organisational and managerial constraints. This article illustrates the implementation of an Advanced Planning System integrated with a mixed integer-programming model, which is solved by a new iterative heuristic approach capable of achieving interesting planning improvements for model-flexibility management.     

How corporate planning responds to uncertainty

This article is based upon an SSRC research project into the influence of computer methods on decision making. During this research, information on the planning systems of a cross-section of British industry was obtained.The paper illustrates how managers in these firms were coping with planning in the present conditions of extreme uncertainty about the future, combined with adverse economic and business conditions. Conventional planning theory, together with some modern observations on it, are briefly described and then the paper shows how, in the firms visited, the structure of planning was more complex than this theory.It goes on to show that today's critical conditions were not leading to management putting aside their plans and computer models and “muddling through’. They were actually leading to an acceleration in the adoption of formal planning and decision making methods but in a somewhat different manner to conventional planning theory.Seven different modes of planning were identified with integrated operational planning being the most common, possibly the most essential to survival and sometimes the only planning possible into today's conditions. A trend to extend the operational plan to 2 to 3 years and to reduce the firm's long range plan from 5 to 3 years was also observed.Long range plans were being considered as planning and decision making tools and not as blue-prints of the firm's future, as accurate long range forecasting was impossible. Three types of strategic planning were identified with that carried out at intervals probably being the most appropriate for medium sized firms in today's conditions.