Question

what are the types of planning in organisation?

Answer 1

There are basically three types of planning in an organisation:

Long range planning:

This planning deal with a time frame of beyond 5 years.Long range planning is preparing today for tomorrow. Strategic Planning also comes under long range planning where the organization looks for opportunities and threat in the outside environment and its internal strengths and weaknesses to decide the long term course of action.

Planning for new products, Expansion of existing plant,Plant location, Selection of process,Planning for capacity of plants based on market forecasts , Plant Layout , etc comes under long range planning.

Medium Range Planning:

Medium range plans have time horizon of 1-3 years.

Annual Budgets are medium range plan

Other medium range plans are:

Resource aggregate planning

Materials Requirement Planning

Manufacturing Resource Planning

At this level of planning decisions are taken on issues like make or buy, batch quantity,inventory policy etc

Short term planning:

These planning horizon are less than one year.

Example of Short term planning are:

Production Planning and control

Machine Scheduling

Sales Planning

Job allocation

Job Scheduling