Interdepartmental planning

Interdepartmental planning
See also
Baumol model Maximum stock level Production cycle Agile supply chain management Dependent demand Order point Distribution cost Economic batch size Purchasing in the case of discontinuities in needs

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

References

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