Thursday, 26 February 2015

The Major Functions of the Different Planning Time Horizons

STRATEGIC
TACTICAL
OPERATIONAL
  •  Medium to long-term horizon
  • 1-5 years
  • Trade-offs between company functions
  • Overall "structural" decision  
  • Trade-offs with other organizations
  • Corporate functions plans and policies
  • Policies decisions developed into a strategic plan
  • For example; top management

  •  Short term medium term horizon
  • 6 months - 1 year 
  • Subsystem decision are made  
  • Annual budgets provide finance/cost basis
  • The strategic plan detail is made into an operational planning
  • For example; middle and first-line management

  •  Day-to-day decisions making
  • Operation controlled against standards and rules
  • Control via weekly or monthly reports 
  • Implement the work 
  • For example; operating staff

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