Strategic Planning

Enterprise planning can be divided into three categories:

Disaggregate Planning

Aggregate Planning

Strategic Planning

 

Strategic planning :

Strategic planning is the process by which the guiding members of the organization develop a vision of the future and define a road-map for attaining that future. Strategic planning is different than traditional "long - term planning" which is merely an extrapolation of the current state of the organization.

Strategic planning considers a horizon of five or more years. While strategic planning is usually conducted for the organization as a whole, functional units of the organization and particular lines of business may also conduct business strategic planning. The process of deploying and implementing the strategic plan has been termed as strategic management and/or operational/tactical planning and management.

Strategic planning is a long range planning that focuses on future capacity, products and production plant locations.

 

Aggregate Planning:

Aggregate planning is a medium range planning (from 2 to 18 months) which includes the levels of employment, output, inventories, backorders, subcontractors.

 

Disaggregate Planning:

Disaggregate planning is a short range planning (up to 2 months) which includes machine loading, part routing, job sequencing, safety stock, order quantities.

Traditionally, strategic planning includes the decisions made at the highest management level, while aggregate and disaggregate planning include broad enterprise participation.

Lead Time:

Customer Lead Time: The time a customer is willing to wait for the delivery of a product after an order is placed.

Manufacturing Lead Time: Maximum length of time between the receipt of an order and the delivery of a finished product.

 

Links

Organizational Solutions Group™ Strategic Planning

LTAP Strategic Planning Workbook

History of Strategic Planning

Strategic Planning--CheckMATE Software

Strategic Management Club Online

Businessweek Online

Strategic Marketing Plan Sotware

Aggregate Planning

Capacity Planning

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Last Update: September 10, 2000

Prepared by : Serdar Z. Elgun