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The role and process analysis of planning and control in enterprise management

Planning and control is the primary function of enterprise management, which uniformly guides the various business and production activities of enterprises. If an enterprise is compared to a human body, its business strategy is equivalent to a human brain. The new product is its vital blood, production facilities and capacity resources are equivalent to musculoskeletal, and the nervous system that affects the activities of all parts of the human body is planning and control. This metaphor illustrates the position and role of planning and control in the business and production activities of enterprises, and also explains its relationship with the business objectives, products and resources of enterprises

1. The role of planning and control

the essence of planning is how to make enterprises make profits by manufacturing and selling products. Its role is:

(1) to make the output of enterprises (including products and services, quantity and time) meet the needs of the market

(2) effectively utilize various resources of the enterprise and reasonably organize the production of various products

(3) enable input to be converted into output in the most economical way

the function of control is to make the result of plan execution not exceed the allowable deviation. This allowable deviation refers to the deviation that the customer or the market can bear in terms of quantity and time

ERP is an information management system that optimizes the whole supply chain management plan. Although internal integration is only for the internal planning and control of an enterprise, it is the core component of the whole supply chain planning and control. Grasp the main line of planning and control, like the human nervous system, coordinate various business and production activities of the enterprise to achieve the business strategic objectives of the enterprise. Please review figure 1.3 for the relationship between planning and control and core business

2. The planning and control subsystem integrated in ERP is the main line of MRP II system, including the planning and control of materials and costs. Therefore, we sometimes call this part "MRP Ⅱ system" directly. In terms of material planning and control, there are five levels, including four planning levels, namely, business planning, sales and operation planning (product planning), master production planning, and material demand planning. The last fifth level is the implementation level, involving the internal resources of the enterprise is production operation control, as shown in table 15.1. Although the purchase operation belongs to the executive level, it involves external resources of the enterprise, so it does not appear in table 15.1

the purpose of dividing plan and execution levels is to reflect the deepening process of plan management from macro to micro, from strategy to tactics, and from coarse to fine. At the stage when the estimation and prediction of market demand account for a large proportion, the plan content is relatively rough and the plan span is relatively long; Once the objective needs are more specific, the plan content is more detailed, the plan span is relatively short, the amount of information processed increases significantly, and the planning method is also quite different from the traditional manual management. Another purpose of dividing the levels is to make it clear that different management levels are responsible for the formulation or implementation of plans at different levels. When evaluating the implementation performance of MRP Ⅱ, different management levels should be responsible for their respective plan realization rate

do not simply understand plan management from the perspective of "hierarchy", but see that its essence is the planning business workflow of plan management from macro to micro, from coarse to fine. Among the five levels, the operation of professional experimental machines has been recognized and supported by the majority of users for more than 10 years. The planning and sales and operation planning have the nature of macro planning. Master production plan is the level of transition from macro to micro. Material demand plan is the beginning of micro plan, which is a specific detailed plan; Production operation control or workshop operation control is the stage of implementation or control plan. Generally, the first three levels are called masterplanning, which shows that they are the planning levels for formulating and realizing the strategic objectives of the enterprise

the plan of the enterprise must be realistic and feasible, otherwise, no matter how ambitious the goal is, it is meaningless. Any planning level includes demand and supply. For manufacturing industry, it is demand planning and capacity planning. We should balance supply and demand in different depths, and use simulation methods to adjust or revise according to the feedback information. Each planning level should answer three questions:

(1) what is produced? How much is produced? When? (what? howmuch? when?)

(2) how many capability resources are needed

(3) is there any contradiction? How to coordinate

in other words, each level should deal with the contradiction between demand and supply, and balance demand and supply, which is a basic principle of MRP Ⅱ principle. It is feasible to implement the plan without deviating from the objectives of the business plan. The plan of the upper level is the basis of the plan of the lower level, and the plan of the lower level should meet the requirements of the plan of the upper level. If the lower level plan deviates from the business plan of the enterprise, even if the plan is executed well, it is meaningless. The whole enterprise follows a unified plan, the so-called "one plan", which includes the unification of macro and micro plans, the unification of sales production supply plans, and the unification of material and capital plans. This is the core spirit of MRP II plan management

taking business planning as the highest level of planning and control shows that the ERP internal integration system attaches great importance to the importance of the enterprise's business strategy, and everything is subject to the enterprise's business strategy. The informatization strategy of enterprises must serve the business strategy of enterprises

3. Business planning

the plan of an enterprise begins with long-term planning. This strategic planning level is called businessplan in MRP II system. Business planning should determine the business objectives and Strategies of the enterprise and make plans for the long-term development of the enterprise, mainly including the following contents

(1) product development direction, market positioning and expected market share

(2) turnover, sales revenue and profit, capital turnover times, sales profit rate and capital profit rate (R01)

(3) long term capacity planning, technological transformation, enterprise expansion or capital construction

(4) staff training and staff team or curve amplification construction

the objectives of business planning are usually expressed in currency or amount. This is the overall goal of the enterprise and the key performance indicators (KPL) to be achieved. It is the basis for the plans of other layers of the MRP II system. The plan at all levels is only to further detail the operation plan (4) to drain the residual oil in the oil tank, and it is not allowed to deviate from the operation plan

the business plan is jointly formulated by the senior leaders of the enterprise and the heads of the departments of market, production, planning, materials, technology and finance. In case of unexpected circumstances during the implementation, the lower level planners have only the obligation to feedback information and have no authority to change the plan. Changing the business plan can only be formulated by the highest decision-making level of the enterprise. Because the review interval of business planning is long, and the workload of change and processing is relatively small, the general ERP software does not include the business planning subsystem. (end)

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