Reunite management and planning

In many companies the planning function has been removed from the mainstream of corporate life. Planning (and planners) have been isolated from the locus of decision- making power and insulated from information vital to the planning process. The outcome has been the generation of irrelevant plans and a proliferation of impotent planners. The author argues for a reintegration of technical expertise and managerial power, a reunion of planning and decision-making processes.     

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.     

Introducing corporate planning in a medium-size company—A case history

Within an organization pursuing a participative style of management, the organizational effort required to implement a corporate planning process—as against a corporate plan—is not generally recognized. In this article the author describes the mechanisms adopted in one company to establish and control the planning process. These include the use of network analysis, the creation of questionnaires to obtain information and necessary data, and the construction of a set of computer models. A full assessment of the success and failures during the first year of the process is given, together with an account of the turning away from planning that has taken place in subsequent years.     

Organization for long range planning—A survey of German companies

Whilst much is written about the theory of long range planning it is a fact that unfortunately, the organization of long range planning of business strategy within companies, has not proved to be an attractive object of research for business theorists. This paper is the exception. By an examination of more than 200 companies residing in the Federal Republic of Germany, long range planning is shown to be gaining more importance as a tool for company management. The organizational design of the planning system and its integration into the overall company structure is, according to this analysis, shown to be one of the most central problems of the implementation of corporate planning systems. This paper presents a theoretical framework and the empirical findings on structural and procedural aspects of long range planning, systems. The empirical study was carried out by means of interviews and a questionnaire survey. The survey results show some interesting and important features of the problems engendered by corporate planning and some of the advantages accruing from its successful implementation. Additionally, the analysis provides an interesting backcloth against which to view the implementation of planning and the relationships between the different levels of planning.     

Developing strategies for management information systems

This is the first of two articles on a practical approach to Business Information Systems Planning. The articles will outline a formal but practical approach for the development of an information systems strategy. The approach is based on experience gained by the author in the conduct of planning projects in a variety of industries, including wholesale and retail banking, consumer credit, chemicals, multinational manufacturing and distribution and the oil industry. The articles are based on the author's book ‘Planning for Business Information Systems’ (Pergamon Books, 1986).     

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.     

Creating a climate conducive to planning

An improved climate for long-range planning, a better understanding of divergent viewpoints among planning participants and increased satisfaction with planning systems do not automatically occur with more experience in planning. Learning to cope with planning problems requires a continuing investment of management time and energy. Many of the companies included in this study were willing to make this investment—progress has been slow and more needs to be done. This article describes the lessons that mature systems companies have learned.     

Critical Dimensions of Strategic Information Systems Planning

Strategic information systems planning (SISP) is the process whereby an organization establishes a long-range plan of computer-based applications in order to achieve its goals. A number of problems can potentially impede information systems planners as they carry out the process. A survey of 80 firms who completed the SISP process revealed that the problems constitute five factors: the organization, implementation, database, hardware, and cost. A discriminant analysis showed that three factors—the organization, implementation, and database—best distinguished satisfied from dissatisfied information systems planners. A research application of the five factors suggested that organizations with more sophisticated business planning endure significantly less severe hardware and implementation problems.     

The benefits of planning with normative and heuristic approaches

The effectiveness of planning groups that used normative planning approaches and heuristics were investigated. The quality and innovation in plans developed using each planning approach were compared. Two studies were carried out in three organizations. In the first study, a ‘behavioral’ planning approach and a heuristic were used in a single organization. In the second study, a ‘systems’ planning approach and the heuristic were applied in two organizations. The field experiments demonstrated that the normative planning methods produced plans with superior quality and higher information levels. No differences in plan innovation were observed. Some guides for practice were derived from these findings.     

Planning for innovation

This article is based on a presentation given by the authors to the Society for Long Range Planning and reprinted from the NRDC Bulletin. It is concerned with corporate planning in the NRDC and illustrates the philosophy and approach adopted in planning for innovation in an organization whose work is of a longerterm nature than most companies.     

Distributed manufacturing support systems: the integration of distributed group support systems with manufacturing support systems

Current Manufacturing Support Systems (MSS), such as Computer-aided Manufacturing (CAM) Systems, Computer-aided Design (CAD) Systems, Computer Integrated Manufacturing (CIM) Systems, Material Resource Planning (MRP) Systems, and Manufacturing Accounting Control (MAC) Systems, are mostly independent systems that are operated in limited decision spaces, provide mainly formal and quantitative information, and thus pursue a goal of local optimization. To assist modern manufacturing in meeting the needs for integration, communication, collaboration, and decision making, we introduce the concept of integrating MSS with Distributed Group Support System (DGSS) into a Distributed Manufacturing Support System (DMSS). A rigorous system design approach is taken to model the manufacturing information requirements from a global perspective and pattern decision making processes within the structural (organizational design) and infrastructural (information system design) elements of manufacturing. The result is a conceptual DMSS design that provides an intelligent interface, accommodates incremental manufacturing integration, offers controllable message exchange facilities, and allows configurable communication networks.     

Personnel planning and information systems

Today the need for long-range planning is seen by most private and public organizations. Therefore growing attention to it is required of management in companies, in public services, in the armed services and in the school and university area. Some parts of the long-range planning problems have been widely discussed and practised. But there are some parts, which have received less attention in the business world. One of the relatively neglected areas, but one of special importance is long-range planning for personnel from the shop-floor up to top-management. This lack is remarkable, as one finds a lot of research and practical work on the use of other operations research planning systems, which cover for example queueing, inventory, production or investment problems. But in no field, is planning ahead more important than in personnel. Company growth and effectiveness depend on it. For unless a business organization has people with skill, imagination and a capacity for leadership, at the right time, its other plans may well be worthless.     

New Zealand—a newcomer to planning

The geographic location of New Zealand and the relatively small size of the industrial sector frequently creates a lag in the adoption of what would normally be regarded as standard practice in European and American companies. This paper discusses the results of a survey of executive attitudes towards planning in 138 New Zealand companies. The main objective of the survey was to establish the state of development of Corporate Planning in New Zealand.     

Strategies and styles revisited: ‘Strategic control’—is it tenable?

Developments in the companies described in Strategies and Styles in 1987 are updated to 1992, and the management styles framework is reviewed in the light of these experiences. Conclusions concerning the strengths and weaknesses of the Strategic Control style are reviewed, and fresh light is cast on the diversity of portfolios that it can manage effectively. The difficulty of changing style, except in a crisis, is confirmed. An earlier article in the October issue of Long Range Planning reviewed the Strategic Planning and Financial Control styles     

Planning for strategic decision support systems

The emergence of Strategic Decision Support Systems has opened up new vistas for the true integration of formal models into the strategic planning process. However, with these new opportunities also come the need to develop planning mechanisms that will permit these sophisticated systems to achieve their potential. The process of strategic planning for Strategic Decision Support Systems that is described in this article serves to cast the organization's overall plans, strategies and strategic attributes into a framework that can be used to develop formal SDSS plans.     

Meeting the challenges of information systems planning

Strategic information systems planning (SISP) is the process of deciding the objectives of computing for an organization and then identifying the applications that the organization should computerize. SISP has become increasingly important as information systems have begun to play a more critical role in implementing business strategies. However, SISP is beset with problems that hinder organizations from determining their computing objectives and applications. This article identifies the impediments to SISP and offers some constructive actions for business planners to take to increase their chances of success. It also suggests that planners may face greater difficulties implementing their information systems plans than in initially creating them.     

Impact of Information Systems (IS) Steering Committees on IS Planning*

One of the most efficient ways to manage the information systems function is to introduce steering committees. It has been suggested that one of the foremost benefits of a steering committee is that it can improve the information systems planning efforts of an organization. However, there is very little empirical evidence in the literature that deals with how such committees affect planning. This study investigates the impact of steering committees on three phases of information systems planning: strategic planning, systems planning, and implementation of planning. The greatest impact of steering committees appears to be the strategic planning phase, while a lesser effect is observed in the systems planning and implementation of planning phases.     

How are companies planning now?—a survey

This article reports on the changes that have taken place in the long-range planning practices of several U.S. and Canadian firms over the last 5 years. In October 1974, the long-range practices of approximately 400 firms were reported in Long Range Planning. A follow-up survey of these same firms was recently completed. The percentage of responding companies that prepare some type of written long-range plan has not changed; however, there have been some changes in the extent and content of these plans. The mix of objectives, use of external factors, plans for growth, and methods for controlling the plan have all changed slightly between 1974 and 1979.     

Computational complexity of algorithms for MRP and JIT production planning problems in enterprise resource planning systems

An enterprise resource planning system (ERP) is the information backbone of many manufacturing companies. At the core of ERP is a conventional material requirements planning (MRP) production planning system or a variation of MRP when just-in-time (JIT) principles are used in manufacturing. MRP and JIT both organize production planning into a hierarchy of long-, medium- and short-range problems. In all there are eight different problems. Some are common to MRP and JIT, others are specialized for a particular system. This paper analyses the computational requirements of these problems. This is important for ERP because it plans for large numbers of products (e.g. 50 000 products at 3M Company and 44 000 products at States Industries in Oregon) at large numbers of locations (e.g. 82 locations in 21 countries for Visteon Automotive Systems of Michigan and 19 locations at Boeing). We show that adequate algorithms exist for some problems, but better algorithms are needed for other problems if ERP is to provide useful production plans.