The Importance Of Planning Essay Research Paper — страница 2

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should also include what product range to develop and produce. A clear aim is set. This provides a sense of direction. By setting a goal, one opens the possibility to diversify the resources availible. Both machinery and people have limited resources, which should be used in the most effective way. This also means that controlling becomes more important, but also easier because each employer and employee have clear tasks to perform. If we are about to reach the goals we have set within the deadline, we must know our progression. This information is obtained through control. In order to guide our plans and decisions it is crucial to have a clear goal. To obtain this strategic goal we need a strategic plan (plan designed to meet an organisation?s broad goal ). Without a strategic

plan it is hardly possible to have a view of the situation. People must know what to be aiming at, whom they shall cooperate with and when a task must be finished. This is quite obvious, but it requires a plan to obtain. A strategic plan is long term. Therefore we must be cautious when developing such a plan. Often it requires a great deal of changes, both financial and personal, to be able to follow this plan. If the organisation must change its strategic goals, which they often have to, their plans also must change. So, this must also be taken into consideration when making a strategic plan. To be successful, we must always be prepared to make changes at all stages in the organisation. Clearly the consequences can be fatal for a firm?s existence, if not the development of a

strategic plan is done properly. Strategic planning does not involve the actions taken in an organisation from day to day. It is more a scope, or a direction for which the organisation is heading. That is, the top managers in an audio manufactory might say that the firm shall be market leaders in design innovation and sound quality. How to obtain this is set in the operational plan. Operational plans are a short term plans, ?showing how strategic plans will be implemented in day-to-day activities. These plans form a hierarchy of plans that are linked by interrelated goals? . ?Operational plans fall into two general classes, Single-use plans and Standing plans. Single-use plans are designed to be dissolved once they have achieved specific, nonrecurring goals. Standing plans, in

contrast, are standardised approaches to handling recurrent and predictable situations? . As mentioned earlier, an organisation must be able to change its plans and it is (normally) this plans that must be changed. In Sonics case there are no plans to be changed, thereby no chance to respond fast to the new range of audio equipment from the Asian producer. Much of the components an audio manufacturer use in their production are imported. That the engineering change and updates are meticulously defined is then important. This requires a ?material requirement planning system?, which is another short term plan. The MRP provides easy access to, and visibility of information on the stocks and flows of material within the supply chain and the physical capacities of selected operations.

The MRP also includes a short term review of materials required in each operations, and a survey of materials availible. Without the MRP (or a similar system) it is hard to obtain the production control, and to keep on track with the operational and strategic plan. In the electronic manufacturing also the application of just in time manufacturing has resulted in significant benefits. This mainly because these companies used to operate with high work-in-process inventory levels and long lead times. There are also several other important features which is essential to ensue a strategic plan. Achieve greater responsiveness from suppliers on price, frequency of delivery and so on, set-up-time reduction, right firs time production, a streamlined organisation, etc. are such features.

It is the combination of all this short term activities that makes up the strategic plan. In the audio manufacturing industry new products are launched quite rapidly. It is not necessarily innovative products, but even product improvements from other manufactures must be considered as a treat. Asian producers have the last 10-15 years been leaders in the home stereo market , both in product innovation and in design. Hence they have obtained quite a goodwill in the market, get higher returns, and thereby they can afford improvements and new product developments. It is of severe importance to keep up with the Asian audio technology. Quick response to changes, and preferably new technology development must thereby be considered as the main goal in the European audio manufacturing