Interdepartmental planning

Interdepartmental planning is used in industrial business management of labor resources as well as of the means of production.

This kind of planning involves break down of activities between the various production departments according to the products structure. Managers analyze specialization and capacity of departments and controls the execution of the tasks. Interdepartmental planning systems are based on models of control.

Planning system according to the rhythm of production - is based on the size of production batch. It is used in the enterprises engaged in mass production, when dealing with pipelined production processes between the supplier and the recipient. This means that between the various departments specified quantity of products are stored. Size of stored materials corresponds to the demand in a given period and takes into account the potential number of disturbances in supply. This system requires a continuous control of the flow between the supplier and the recipient as well as stock levels to quickly eliminate any deviations,

Program scheduling and inventory system - control model based on the size of the production and storage capacity. It is used in stable production of large quantities. Managers calculate the number of components which are part of the final production in a particular period which is covered by the subject of planning. Plans for departments shall be calculated usually using the so-called chain method. This system requires the establishment of normative inventory levels, the regulation of their status as well as determine the number of products produced by the department in the planned period.

There are also:

• Scheduling System based on inventory level
• Planning System based on production ahead
• Planning System based on production cycle
• Planning System based on scheduled shipments

See also:

• Types of planning

Examples of Interdepartmental planning

• Developing Strategic Plans: Strategic plans are developed by management teams from multiple departments who collaborate to identify the company’s goals and create a plan of action to achieve them. The team will examine the current state of the organization, its resources, and the external environment. They will then develop a strategy and timeline for achieving the desired goals.
• Organizational Structures: Interdepartmental planning is used to create an organizational structure that is tailored to the company’s needs. This involves identifying the individual roles and responsibilities of each department and creating a hierarchy that ensures efficient workflow and communication.
• Budgeting: Interdepartmental planning is also used for budgeting purposes. This includes identifying the costs associated with each department, allocating resources according to these costs, and ensuring that the budget is sufficient to meet the needs of each department.
• Project Management: Interdepartmental planning is used in project management. This involves creating a timeline and assigning tasks to each department in order to ensure that the project is completed on time and within budget.
• Process Improvement: Interdepartmental planning is also used to identify areas of improvement in the various processes of a company. This involves evaluating existing processes and identifying areas where they can be improved. Once identified, the team can then develop a plan to implement the necessary changes.

Advantages of Interdepartmental planning

Interdepartmental planning allows for better coordination and collaboration between different departments within a business organization. It offers a variety of advantages, including:

• Increased efficiency in resource allocation - Interdepartmental planning ensures that resources are allocated to the departments where they can be used most effectively. This means that departments are able to use their resources more efficiently and maximize their output.
• Improved communication and collaboration - Interdepartmental planning facilitates better communication and collaboration between different departments within the organization. This means that departments can share information more quickly and effectively, allowing them to work together to solve organizational problems.
• Reduced costs and improved productivity - Interdepartmental planning helps to reduce costs by eliminating wasteful practices and ensuring that resources are used in the most effective way. This can help improve the overall productivity of the organization.
• Increased employee satisfaction - Interdepartmental planning can also improve employee satisfaction by allowing them to work together in a more effective and efficient way. This can lead to improved job satisfaction and a more positive work environment.

Limitations of Interdepartmental planning

Interdepartmental planning is an important tool for effective business management, but it also has some limitations. These include:

• Lack of communication between departments - Interdepartmental planning relies heavily on communication between departments and when this is lacking, it can be difficult to coordinate efforts and achieve objectives.
• Complexity of planning - The complexity of interdepartmental planning can be a challenge, since it requires a deep understanding of the needs of different departments and the ability to devise a plan that meets those needs.
• Lack of resources - When resources are limited, it can be difficult to implement an interdepartmental plan. This can be especially challenging if departments have conflicting priorities for the use of resources.
• Inability to adapt to changes - When unexpected changes occur, interdepartmental plans may not be able to react quickly enough. This can lead to delays in achieving objectives.
• Time consuming - Interdepartmental planning can be a lengthy process, as it requires extensive coordination and communication between departments. This can be a challenge for businesses with tight timelines.

Other approaches related to Interdepartmental planning

Interdepartmental planning is a key approach to managing resources and production in business management. Other approaches include:

• Strategic Planning: This involves setting long-term goals and objectives, which can be achieved through collaboration between different departments. It requires coordination of resources and the development of plans to reach agreed objectives.
• Total Quality Management (TQM): This focuses on identifying and eliminating errors in production processes, while also ensuring that customer needs are met. It requires departments to work together to identify weaknesses in the production process and improve them.
• Supply Chain Management: This involves managing the flow of goods and services from suppliers to customers. It requires departments to collaborate in order to ensure the smooth flow of goods and services, as well as to identify any potential bottlenecks in the process.
• Continuous Improvement: This involves the implementation of continuous improvement processes that can be used to improve the efficiency and effectiveness of operations. It requires departments to work together to identify areas for improvement, and make changes that can improve the overall performance of the business.

In conclusion, interdepartmental planning is an important approach to managing resources and production in business management. Other approaches such as strategic planning, total quality management, supply chain management and continuous improvement also require collaboration between departments to ensure the success of the business.

Interdepartmental planning — recommended articles

Departmental planning — Planning and control — Resource plan — Management by projects — Organization of managerial work — MRP II — Agile manufacturing — Tactical management — Management by the numbers

References

• Stevenson, W. J., & Sum, C. C. (2009). Operations management (Vol. 8). Boston, MA: McGraw-Hill/Irwin.