Group 6

DREAMLINERSDREAMLINERS

StrategyThe determination of the basic long term

goals and an objectives of an enterprise and the adoption of the course of action and allocation of resources necessary for carrying out these goals.

Alfred chandler

What is Strategic Planning?

ProcessProcess to establish priorities on what you will to establish priorities on what you will accomplish in the futureaccomplish in the future Forces you to make choices on what you will doForces you to make choices on what you will do and what you will not doand what you will not do Pulls the entire organization together around aPulls the entire organization together around a single game plan for executionsingle game plan for execution Broad outline on where resources will get Broad outline on where resources will get allocatedallocated

Why do Strategic Planning?

If you fail to plan, then you plan to fail – beIf you fail to plan, then you plan to fail – be proactive about the futureproactive about the future Strategic planning improves performanceStrategic planning improves performance Counter excessive inward and short-term Counter excessive inward and short-term thinkingthinking Solve major issues at a macro levelSolve major issues at a macro level Communicate to everyone what is most Communicate to everyone what is most importantimportant

Strategic Planning Process

Mission Vision Guiding Principles

Gap Analysis

Strategies

Objectives

STRATEGIC QUALITY

PLANNING PROCESS

Define vision, mission and major improvement opportunities.

A strategic vision is a road map showing the route a company intends to take in developing and strengthening its business. It paints a picture of a company’s destination and provides a rationale for going there.

A mission statement is a message designed to be inclusive of the expectation of all stakeholders for the company's performance over the long run.

Ex.: GEWe will become number one or number two in every market we serve, and revolutionize this company to have the speed and ability of a small enterprise.

Gather critical planning inputs.

Are customer and market requirements and expectations, the competitive environment, financial market and technology.

Ex:-TATA NANO CAR

Develop strategic alternatives.

“more than one way to skin a cat.“

"What do we do?""For whom do we do it?""How do we excel?“

EX:--- •  TATA NANO PLANT 1) singur west bengal 2) karnataka hubli dharwad 3) gujarat

Develop overall strategies.

Finally you must develop a strategy.  This will most likely be a combination of various alternatives. 

Ex:-- “TVS APPACHI”

Develop major improvement opportunities for each organization and dimension.

EX:- BAJAJ PULSAR

•DEVELOP SUPPORTING PROJECTS AND MILESTONES

NEW YORK -- Global Security Consulting Ltd. 4C Controls Inc. (OTCBB: FOUR), announced the formation of three important strategic operating unit companies which will further support the Company's growth strategy and expansion plans to become a full spectrum provider of turnkey integrated solutions for sophisticated high-technology systems, including but not limited to, civil and homeland security and defense. Each of the three new operating unit companies have been formed with partners who have extensive successful track records and experience, with highly professional management, engineering, and project implementation skills. Each of the new operating units are majority owned subsidiaries of 4C Controls. The operating unit partners are based in Greece. The high engineering skills and cost efficiencies in Greece are expected to significantly enhance the anticipated profitability of Company projects. Formation of the business units also reflects the first steps of anticipated acquisition of direct majority stakes by 4C Controls in the operating unit partners.

•ALLOCATE RESOURCES In strategic planning,is a plan for using available

resources, for example human resources, especially in the near term, to achieve goals for the future. It is the process of allocating resources among the various projects or business units.

The plan has two parts: Firstly, there is the basic allocation decision and secondly there are contingency mechanisms. The basic allocation decision is the choice of which items to fund in the plan, and what level of funding it should receive, and which to leave unfunded: the resources are allocated to some items, not to others.

There are two contingency mechanisms. There is a priority ranking of items excluded from the plan, showing which items to fund if more resources should become available; and there is a priority ranking of some items included in the plan, showing which items should be sacrificed if total funding must be reduced.

•FINALISE ANNUAL PLANWhat the company wants to achieve and do at the end of

the year?

Eg:Utility vehicle manufacturing leader Mahindra and Mahindra (M&M) is all set to put up a $1 billion tractor assembly plant in Tanzania.

A team from M&M will be visiting Tanzania in the coming months to finalise the location of the plant.

In the first phase, after the plant completion, the company intends to roll out 3,000 tractors in a year,”

•PLAN AND IMPLEMENT PROJECT.

REVIEW PROGRESS AND PERFORMANCE REVIEW PROGRESS AND PERFORMANCE. adidas Group For the eighth year running the sporting goods

company adidas Group has published a report on its efforts to be a sustainable business. This year the report runs on the theme of ‘Sport Matters’, re-emphasising the fact that the Group takes its values from sport.

Two sections have been expanded to provide a more detailed explanation of strategic priorities and of the issues that challenged the Group in 2008: There is more performance analysis, highlighting key findings and trends from the company’s data. The review also explains how targets the company has set have helped to deliver its strategy, plus the reasons for the progress that was made and what was learnt from the Group’s efforts.

•ANNUALY ASSES AND IMPROVE THE PLANNING PROCESS. Johnson Controls (JCI) is a global leader in automotive

experience, building efficiency and power solutions. In the post-merger integration process, the global ERP template was deployed, impacting existing processes. As a result, the business team started to develop non-standard applications to meet their requirements so they could continue forecasting and planning business functions. In addition, a company-wide survey of the finance employees indicated significant challenges with the current planning and forecasting process.

planning and forecasting being conducted primarily with stand-alone spreadsheets, the company was struggling to respond quickly to global market changes. Given the challenging forecasting and planning process, as well as frequent changes, employee morale was impacted, as indicated in an employee survey. The business team was frustrated with working in Excel spreadsheets and started to develop its own solutions (non-standard IT architecture/platform) by business unit.

The assessment found that the average cycle time to complete the annual profit plan and quarterly updates lagged behind industry leaders. It also noted that the most accurate source of forecasting data was located in different systems that were not integrated. In addition, there existed a lack of industrialization in process.

inefficiencies in the planning process. Perhaps most importantly, Johnson Controls needed to develop a comprehensive global IT strategy or standard for planning and forecasting systems. Following the assessment, the team developed a roadmap for the future state that would enable Johnson Controls to leverage common and integrated forecasting processes, tools and data to create, iterate and finalize an accurate forecast/profit plan in nine weeks. The roadmap identified a number of opportunities, including:

• improving the forecast accuracy (e.g.,

data quality and integrity)

• improving the employee experience

• reducing effort and time needed for today’s manual forecasting

process. To build momentum, Capgemini recommended short foundational process improvement projects that would position Johnson Controls to Implement leading practices and provide quick hits that could improve forecasting and planning.

These included:

• sales forecasting requirements assessment and tool harmonization profit plan review cycle time reduction.

Using TQM for a Competitive Advantage in Business

The Total Quality Management (TQM) philosophy of doing business emphasizes on Lowering costs by reducing waste, Helping suppliers provide quality products andSatisfying the customer with quality goods and

services.

Companies that can produce goods at lower costs than their competitors, while delivering quality products that satisfy their customers will have an advantage over those companies that do not duplicate those feats.

Implementing TQM can help a company gain a competitive advantage in their business. By answering the below questions a company can easily attain competitive advantage:

How can our company reduce costs?What to help suppliers and workers in work?How does customer satisfaction give an

advantage?

Reducing CostsAchieving lower costs for getting or making

products gives a company a great competitive advantage over their competition.

For Example: Wal-Mart has formed alliances with their suppliers, such that they are able to purchase goods at a discount that their competitors cannot achieve. The result is that Wal-Mart is able to offer products at such low prices that have actually driven many competitors out of business.

Example: Low-cost leadership

Use information systems to achieve the lowest operational costs and the lowest prices

E.g. Wal-Mart

Inventory replenishment system sends orders to suppliers when purchase recorded at cash register

Minimizes inventory at warehouses, operating costs

Efficient customer response system

Japanese automobile manufacturers Toyota and Honda have greatly lower worker pension and healthcare costs than the "Big-3" American manufacturers, General Motors (GM), Ford and Chrysler. This is true even for the Toyota and Honda facilities in the United States.

The cost per car for worker benefits paid is:$1360 for GM, $735 for Ford and $630 for Chrysler. Meanwhile, it costs Toyota $180 and Honda $106 per car. This results in much higher profits or lower prices for the Japanese autos.

Also, the Big-3 each have about 18,000 in "excess workers" that drive up their costs.

Helping Suppliers with QualityThe first part of providing the customers with

quality goods involves purchasing those products from suppliers or getting quality parts to make your own product.

An important aspect of Kurtusian TQM is to help the supplier provide quality to your company.

Often companies browbeat their suppliers into providing goods at low costs.For Ex: Wal-Mart has been known to be very tough on suppliers, even driving some out of business if they did not bend to Wal-Mart's demands. Other companies have also used such negative tactics.

Helping Workers towards QualityYour workers proved services that allow you to

make quality products.Courteous sales representatives can make for

a pleasant buying experience for the customers.

Some companies even demand that the sales people smile and act friendly, even if they don't feel like it.

Making the workers part of the team and helping them provide quality work can give you a good competitive advantage on competition that may have an unhappy workforce.

Customer SatisfactionA customer that is satisfied or even pleased with

the products and services received, sees them as value-added.

They will be glad to return to the company to purchase other items. They will refer others to the company.

The company needs to make sure the material is to specification and gives them the assurance that they can count on your company to provide such quality good in the future.

Customer satisfaction is the ultimate advantage a company can have over their competitors.

Examples of companies that achieved

Competitive Advantage with the help of

Various Strategies for Customer

Satisfaction.

On the Dell Inc. Web site, customers can select the options they want and order their computer custom built to their specifications.

Dell’s assemble-to-order system is a major source of competitive advantage.

Hilton Hotel’s OnQ System analyzes data collected on guests to determine preferences and guest’s profitability

Chrysler: Uses IS to facilitate direct access from suppliers to production schedules.This permits suppliers to decide how and when to

ship supplies to Chrysler factories, allowing more lead time in producing goods.

Amazon: Keeps track of user preferences for purchases, and recommends titles purchased by others

MANAGEMENT AND PLANNING TOOLS

AFFINITY DIAGRAMAn Affinity Diagram (sometimes referred to as

a "KJ", after the initials of the person who created this technique, Kawakita Jiro)

Gather large numbers of ideas, opinions, or issues and group those items that are naturally related

Identify, for each grouping, a single concept that ties the group together

An Affinity Diagram is especially useful when:

Chaos existsThe team is drowning in a large volume

of ideas Breakthrough thinking is required Broad issues or themes must be

identified

Interrelationship Digraph This tool displays all the interrelated cause-

and-effect relationships and factors involved in a complex problem and describes desired outcomes. The process of creating an interrelationship diagraph helps a group analyze the natural links between different aspects of a complex situation.

An example: Issues surrounding implementation of a business plan

The ID offers many benefits: It encourages team members to think

in multiple directions rather than linearly

It explores the cause and effect relationships among all the issues, including the most controversial;

It allows the key issues to emerge naturally rather than allowing the issues to be forced by a dominant or powerful team member

It allows a team to identify root causes even when credible data doesn’t exist.

•A tree diagram maps out the paths and tasks A tree diagram maps out the paths and tasks necessary to complete a specific project or necessary to complete a specific project or reach a specific goals.reach a specific goals.•A tree diagram brings the issues and problems A tree diagram brings the issues and problems revealed by the affinity diagram and the inter-revealed by the affinity diagram and the inter-relationship digraph down to the operational relationship digraph down to the operational planning stage.planning stage.

TREE DIAGRAMTREE DIAGRAM

How to understand it

Example

When to use it Use it when planning.Use it when investigating a problem.Use it only when the problem can be broken down in a

hierarchical manner.

MATRIX DIAGRAMMatrix diagram are ‘spreadsheets’ that

graphicaly display relationships between ideas and activities in such a way as to provide logical connecting points between each item.

How to understand it

EXAMPLE

When to use it• Use it when comparing two lists to understand

the many-to-many relationship between them • Use it to determine the strength of the

relationship between either single pairs of items or a single item and another complete list.

• Use it when the second list is generated as a result of the first list, to determine the success of that generation process.

Matrix Data AnalysisMatrix data analysis takes data and arranges

them to display qualitative relationship among variables to make them more easily understood

It is a rigorous, statically based ‘factor analysis’ technique.

This tool is used to prioritize items and describe them in terms of weighted criteria. It uses a combination of tree and matrix diagraming techniques to do a pair-wise evalutaion of items and to narrow down options to the most desired or most effective.

Examplerequirement

Importance weight

Best competition evaluation

Micro tech evaluation

difference

Price 0.2 6 8 +2

reliability 0.4 7 8 +1

delivery 0.1 8 5 -3

Technical support

0.3 7 5 -2

When to use it

Use it when investigating factors which affect a number of different items, to determine common relationships.

Use it to determine whether or not logically similar items also have similar factor effects.

Use it to find groups of logically different items which have similar factor effects.

Process Decision Program Chart

A process decision program chart is a method for mapping out every conceivable event and contingency that can occur when moving from a problem statement to possible solutions.

This tool maps out events that must occur when performing a specific task. It is used to plan a possible sequence of events and contingencies or to describe an existing process.

How to understand it

EXAMPLE

When to use it

Use it when making plans, to help identify potential risks to their successful completion.

When risks are identified, use it to help identify and select from a set of possible countermeasures.

Also use it to help plan for ways of avoiding and eliminating identified risks.

ARROW DIAGRAM These are usually used in the form of CPM

and PERT project planning techniques.In many projects or activities, the work is

divided into a set of interdependent tasks, where the order of tasks is important, but where some tasks may be performed concurrently. The Activity Diagram allows this ordering to be displayed in a simple diagram 

This tool is used to plan the appropriate sequence or schedule for a set of tasks and related subtasks. It is used when subtasks must occur in parallel. The diagram enables one to determine the critical path (longest sequence of tasks).

How does it work

Summery

Strategic planning is a systematic process to identify the future outcomes an organization wants to achieve

Strategic planning involves the process of envisioning the organization's future and developing the necessary procedures and operations to achieve that goal. It involves the formulation of strategies for creating a sustainable competitive advantage for a business organization.

Managers use a variety of tools and techniques, known as the seven management and planning tools to implement policy deployment.

MANAGEMENT AND PLANNING TOOLS FOR IMPLEMENTING POLICY DEPLOYEMENT Affinity diagramInter-relationship diagramTree diagramMatrix diagramMatrix data analysisProcess decision program charts andArrow diagrams.