What is the Definition and Characteristics of Global Planning in Business?

If you want your business to meet the objectives that have been established and to achieve the determined vision, a fundamental step to achieve it is planning. Today we will talk about global planning, what is the definition of this term and what are the characteristics of global planning in business? Get to know them and implement them in your business, so that you can achieve a successful corporate strategy.

Definition of global planning in business

In general terms, planning involves thinking, establishing and organizing the activities necessary to achieve a goal or objective. In the case of business, global planning refers to the entire process that includes the design of a program that establishes the general operations of the company. This program determines the activities to be carried out in order to balance the levels of production and demand.

team with global plan

Comprehensive planning is also known as aggregate planning, aggregate production planning or aggregate scheduling. In general, it covers a short to medium-term operational strategy, that is, the organization of activities for a period of 3 to 18 months. Its main objective is to minimize production costs and meet demand satisfactorily in the scheduled period.

A global plan encompasses, as its main element, everything concerning the production units. That is, the production goals for the manufacture of a product, the hours worked, the units achieved during a period and any other element that allows determining the steps necessary to finish a project efficiently.

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Characteristics of global planning in business

Depending on the type of business or company, global planning may have different elements and methods of control and evaluation. However, for the program to meet its objective, it must have the following 4 characteristics:

  • A method of analysis, control and evaluation of the production process and sales, using a general logical unit. At this point, it is important to consider the financial strategies of the business.
  • Must include a method of demand forecast. In this way, the periods to be planned and the scope of the objectives can be more accurately established, taking into account market variations and other factors.
  • One way to determine production costs. This element will allow to know the production requirements applied to the machinery or the hours of work per employee according to the demand.
  • A model that allows to link demand and costs, this will help design a program or a calendar with activities that must be done in the planned time.

Steps to carry out the strategic planning of your business

To develop an overall plan or aggregate plan, all the factors that make up the operation of the business. And depending on the type of business, some elements may be more or less different, but in general the steps are as follows:

  1. Establish the forecast sales for each product or service, indicating quantities or units per week or month.
  2. Add the global total of claims, using a general unit for all products if possible.
  3. Transform global demand into the necessary requirements to cover it, be it these workers, hours of work, materials, inventory, machinery, among others.
  4. Select one production strategy that is better adapted and allows to meet the demand, this strategy must meet the objectives of the company efficiently. That is, using resources effectively and clearly establishing costs and budgets. In this way, the plan will maximize profits and improve customer service.

business planning

Without a doubt, make a global planning for your business can help you maintain an effective strategy to continue offering your services or products competitively. Likewise, it avoids delays and situations of risk or losses in the company, by anticipating, through market demand, total production.

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Likewise, it is important to link strategic, tactical and operational planning in global programming to take into account all the aspects that can contribute to the smooth running of the business. To do this, there are several methods that can help you in the plan design process, so that it encompasses the best proposals.

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