Chapter 7: Planning, Controlling, and Decision Making

Question 1

Basic Elements of Planning

Answer 1

Planning begins by establishing general concepts, goals, and objectives, which are operational definitions of those goals. The planning objectives determine how effective the overall plan and process will be. Planning means defining:

• where you are now
• where you want to go
• how you’re going to get there
• when you’re going to get there
• who’s going to be responsible for getting you there

Question 2

The Planning Process: Key components to include in all plans

Answer 2

A clear statement of specific goals to be accomplished and in which order they are to be reached
A step-by-step description of tasks that must be completed to achieve the goals
A schedule of labor, supplies, equipment, materials, and space necessary to accomplish the tasks in order to reach the goals
A description of how performance and progress will be controlled and measured.

Question 3

The 8 Steps of a Planning Cycle

Answer 3

Analyze the Current Position
Define the Goal
Explore/Evaluate Alternative Options
Select the Best Alternative
Establish a Plan to Achieve the Goal
Review the Plan
Implement the Plan
Solidify the Plan

Question 4

The 10 basics for Effective Planning

Answer 4

Determining policy
Collect and organize available resources
Budgeting
The time element must be recognized and controlled
Keep plans and plan elements simple
Clearly define procedures, desired outcomes, and results
Establish a priority of actions
Plan for conflict resolution
Put the plan in writing
Provide adequate control and monitoring.

Question 5

Top-Down Planning

Answer 5

Creates timelines and budgets, but typically lacks detail and achievability. Begins with upper level management.

Question 6

Bottom-Up Planning

Answer 6

Creates detailed plans, but is often mundane and lacks challenging objectives. Begins at the lowest levels within the organization. Those closest to the operating system, such as group managers, customers, and suppliers, are responsible for driving the plan. Works best when success depends on customer needs and demands being effectively met.

Question 7

Planning and Types of Constraint Factors

Answer 7

Natural: those bound by the laws of nature
External: those enforced by outside influences and/or agents
Perceived: Those assumed to be impossible, undesirable, or restrictive (internal or external)

Question 8

3 Key Components of a Control System

Answer 8

1) Measuring
2) Evaluating
3) Correcting

Question 9

3 Common ways that control systems are classified include:

Answer 9

• type of input
• the dimension of control
• timing controls

Question 10

4 Common dimensions of control are:

Answer 10

1) quality
2) quantity
3) time
4) cost