1. Chapter Five
Planning and Control

2. Planning and Control
Operations planning and control is concerned with managing the ongoing activities of the operations so as to satisfy the customer demand.
All operations require plans and require controlling, although the degree of formality and details may vary.

3. Application of Planning and Control
Service Planning
Manufacturing planning
Project planning
Main objective is coordinating between supply and demand.

4. Example of Planning and Control
Consider the following example of a routine surgery in a hospital showing how supply and demand situation are coordinated to satisfy a patient.
Planning
Much of the planning is done when potential patient is booked for surgery, for example;
Doctors and nurses are already informed.
Appropriate pre-operative and post-operative care is organised.

5. Planning and Control Control Patient arrives and admitted.
Patient checked to make sure all information provided is correct.
Blood, if required will be cross matched and reserved.
Medication required will be made available.
Last minute changes may require some degree of re-planning for example patient show unexpected symptoms. If symptoms make it compulsory rescheduling may be required for this patient.

6. Definition of Planning
Planning can be defined as follows
Planning is a formalization of what is intended to happen at some time in the future. For example an undergraduate student takes formal admission in a university to complete a bachelor degree in coming four years.

7. Features of Planning
A plan does not guarantee that an event will actually happen, it is a statement of intention. For example By taking admission does not guarantee that the student will necessarily obtain his or her degree.
Although plans are based on expectations, during their implementation things do not always happen as expected. For example an undergraduate student studying for full time bachelor degree changes his or her course to distance learning or external degree due to change in circumstances. This may take more than four years as initially planned.

8. Control
Control on the other hand is defined as a process of coping with any changes that affect the plan.

9. Comparison of Planning and Control
Planning is deciding
What activities should take place in the operation?
When they should take place?
What resources should be allocated to them
Control is
Understanding what is actually happening in the operation
Deciding whether there is a significant deviation from what should be happening
(If there is deviation) changing resources in order to affect the operation’s activities.

10. Types of Planning and Control
Long Term
Midterm
Short Term

11. Long Term Planning Long-term Planning Control
Long-term plans are drawn for a long period involving years of developing a facility. Consider an example of planning a Hospital for 2000 Patients.
For long-term planning of hospital following steps will be taken.
Use forecast of likely demand.
Similarly resources will be planned in an aggregate form.
Budget will be planned.

12. Midterm Planning
This type of plans are for shorter period involving months and year.
Plans are normally concerned with more details and re-planning as compared to long-term planning and control.
Medium-term plans might look ahead to assess the overall demand which operation must fulfil in a partially disaggregated manners.
Resources are also set at disaggregated levels.
Contingencies are put place which allow slight deviation from plans.

13. Short term Planning
There is only possibility of ‘intervention’ if things are not going according to plan.
At this stage demand is assessed on a totally disaggregated bases.
Individual patients will have identifies by names, specific time slot booked their treatment.
In short-term planning understanding of priorities will form the background to decision-making. Managers do not get time to make detailed calculations.

14. Time Horizon between Planning and Control
Hours/days
Days/weeks/months
Months/years
Long-term planning and control
Uses aggregated demand forecasts
Determines resources in aggregated form
Objectives set in largely financial terms
Medium-term planning and control
Uses partially disaggregated demand forecasts
Determines resources and contingencies
Objectives set in both financial and operations terms
Short-term planning and control
Uses totally disaggregated forecasts or actual demand
Makes interventions to resources to correct deviations from plans
Ad hoc consideration of operations objectives.

15. Activities of Planning and Control
There are four major activities of planning and control shown in the following Diagram
Sequencing refers to the order in which planning activities and control activities are undertaken. Concentrate on class exercise.
Scheduling refers to the time when activities are to be performed.
Loading refers to the work load allocated or assigned to any work station. Concentrate class exercise
Monitoring and control refers to question whether activities are going according to plan, if there are deviation re-planning is undertaken to put plan back on track.

16. Planning and Control Activities
Scheduling
Loading
Sequencing
Monitoring and control
When to do things?
In what order to do things?
How much to do?
Are activities going to plan?

17. Thank You!