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  • 8/10/2019 Operational Planning and Decision Making Assignment

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    Contents

    Contents......................................................................................................................................1

    1.0 Introduction to the Logistics Unit........................................................................................2

    1.1 Assignment.......................................................................................................................4

    2.0 Introduction to Operational Planning and Decision Maing...............................................!

    ".0 #e$ issues in operational planning......................................................................................%

    ".1 &teps in planning..........................................................................................................'

    ".1.1 &etting the direction..................................................................................................'

    ".1.2 (esource Assessment................................................................................................'

    Acti)ities in resource assessment...................................................................................*

    ".1." Identi+ication and Anal$sis o+ Alternati)es...............................................................*

    ".1.4 Alternati)e &election...............................................................................................10

    ".2 Pro,lem -ierarch$.........................................................................................................10

    4.0 #e$ issues in Decision Maing..........................................................................................11

    &tep 1 Identi+$ the pro,lem.................................................................................................12

    &tep 2 List alternati)es........................................................................................................14

    &tep " /)aluation o+ each course o+ action and selecting the ,est alternati)e....................14

    &tep 4 Choice maing and decision implementation Implement the chosen alternati)e....1!

    &tep ! Monitoring and /)aluation M/.........................................................................1%

    !.0 Conclusion..........................................................................................................................13

    %.0 i,liograph$.......................................................................................................................1'

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    1.0 Introduction to the Logistics Unit

    5he general de)elopment o+ an$ societ$ encompasses the health o+ the indi)iduals in that

    societ$. 5his implies that health is a d$namic process. In 6im,a,7e8 the Ministr$ o+ -ealth

    and Child 9el+are MO-C9 continuousl$ changes its +unctions and structure to ,etter meet

    the e)er:e)ol)ing challenges and demands. 5he ;o)ernment o+ 6im,a,7e ;O6 desires to

    ha)e the highest possi,le le)el o+ health and inance and

    Administration8 Oral -ealth &er)ices8 ?ursing &er)ices8 5raditional Medicines8 La,orator$

    &er)ices8 &5I8 -I@8 AID& and 5 Unit8 Polic$ and Planning8 Monitoring and /)aluation8

    ualit$ Assurance8 Chie+ Internal Audit8 /pidemiolog$ and Disease Control8 (eproducti)e

    -ealth8 /n)ironmental -ealthB and Pharmac$ &er)ices.

    5his assignment 7ill ,e limited to the Pharmac$ &er)ices. 5he Directorate o+ Pharmac$

    &er)ices encompasses the Logistics Unit LU 7hich is responsi,le +or managing essential

    medicines and medical supplies including -I@AID& commodities distri,ution s$stems and

    the related Logistics Management In+ormation &$stems LMI&. In addition8 the LU +orecasts

    and und to +ight AID&8 5 and Malaria ;>A5M8

    United &tates Agenc$ +or International De)elopment U&AID and the Clinton >oundation.

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    LU Manager

    Deput$LUManager

    4 LogisticsO++icers

    Upstream

    LogisticsCoordinato

    r

    PM5C5Coordinato

    r

    Adminstrati)eAssistant

    O++iceOrderl$

    MI& O++icer

    "

    Data/ncoders

    5he Logistics Unit is made up o+ 5he LU Manager8 the Deput$ LU Manager8 Upstream

    Logistics Coordinator8 Pre)ention o+ Mother to Child 5ransmission PM5C5 Coordinator8

    Management In+ormation &$stems MI& O++icer8 three data encoders8 an Administrati)e

    Assistant8 an O++ice Orderl$ and +our Logistics O++icers at the -arare o++ice.

    Figure 1: Organogram of the LU

    O+ the +ourteen mem,ers at the LU -arare o++ice8 2 are pharmacists8 " are pharmac$

    technicians8 and the rest ha)e no pharmac$:related ,acground. 5his diagram ,elo7 sho7s

    that the team is composed o+ mem,ers +rom di)erse pro+essional +ields. /ach mem,er ,rings

    di++erent sills to gi)e a potential +usion o+ epertise.

    "

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    Figure 2: LU staff by professional bacground

    PharmacistsB 2

    Pharmac$ 5echniciansB "

    Logistics:related ,acgroundB "

    In+ormation 5echnolog$ ,acgroundB 4

    O++ice ManagementB 1

    OtherB 1

    1.1 !ssignment

    Operational Planning and Decision Maing are e$ to the success o+ the organisation8 a

    discussion 7ith eamples +rom the Directorate o+ Pharmac$ &er)ices8 Logistics Unit o+ the

    Ministr$ o+ -ealth and Child Care.

    2.0 Introduction to Operational "lanning and #ecision $aing

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    Planning is a mental acti)it$ intended to7ard anticipating8 +orecasting8 and handling change.

    It is meant to $ield a recommended course o+ action to deal 7ith pro,a,le +uture

    de)elopments. Planning helps in ris management since a manager can deal 7ith pro,lems

    proacti)el$ rather than reacti)el$. It also creates a sense o+ mission 7hich allo7s a manager

    to moti)ate and measure the per+ormance o+ people under himher. Plans are ,ridges +or the

    gap ,et7een 7here an organi=ation is and 7here it 7ants to ,e in the +uture.

    Corporate:le)el managers are concerned 7ith planning o)erall corporate strateg$8 rate o+

    gro7th8 and ne7 maretsproducts. usiness Unit:le)el managers are concerned 7ith

    planning a high degree o+ coordination 7ith minimal o)erlapping among organi=ational units

    and the enhancement o+ resource utili=ation among these units. Line managers and

    super)isors plan the implementation o+ policies and procedures8 7or acti)ities8 and 7a$s to

    enhance the e++ecti)eness and e++icienc$ o+ 7or operations. Planning occurs at all le)els and

    needs in+ormation +lo7 up8 do7n8 and side7a$s in the organi=ation to ,e e++ecti)e.

    Plans succeed 7hen the$ are used8 monitored8 and changed as 7or progresses. Plans +ail i+

    the$ are not ept up:to:date8 realistic8 or clear. It is imperati)e that 7hoe)er is planning must

    ,e a,le to mae decisions8 sound decisions. It is also important to note that +ailure to plan is a

    EdecisionF8 al,eit a ,ad one. A decision is a choice ,et7een alternati)es and decision maing

    is the process o+ choosing one alternati)e o)er the others. Maing good decisions should ,e a

    process. It is a process o+ identi+$ing pro,lems and resol)ing them8 or o+ identi+$ing

    opportunities and taing gain o+ them.

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    %.0 &ey issues in operational planning

    Plans ma$ ,e classi+ied ,$ short: or long:term8 ,$ +unction8 or ,$ ,readth or scope. Long:

    term plans are done at upper management le)els and encompass a num,er o+ $ears8 such as

    mo)ing into another maret sector. 5hese long:term plans are usuall$ strategic plans

    designed to identi+$8 determine8 and shape the direction o+ the organi=ation. 5he DP& has the

    ?ational Medicines Polic$ and maes use o+ &trategic Plans +or the success+ul per+ormance

    o+ the programs it maintains. 5hese are cra+ted ,$ Central Le)el sta++ o+ the Directorate.

    &hort:term plans are done at lo7er management le)els and encompass a short period o+ time8

    such as +or a proGect or ,udget. 5hese plans are usuall$ operational plans helping 7ith da$:

    to:da$ operation. 5he LU creates 7or plans 7hich it su,mits to the DP& +or appro)al. 5hese

    are operational plans 7hich detail the da$:to:da$ undertaings o+ the unit. >unction plans

    ma$ ,e de)eloped +or e$ organi=ational +unctions8 such as engineering or +inance. /ach o+

    these plans could ,e e)aluated +or potential con+licts ,et7een +unctional areas. 5he LU 7or

    plans are also aligned to ,udgets appro)ed ,$ the administration department.

    readth or scope plans ma$ address o,Gecti)es8 policies8 procedures8 methods8 or rules. 5here

    are )arious programs under the realm o+ the MO-CC 7hich are ser)iced ,$ the DP&. 5hese

    include the antiretro)iral8 58 malaria8 essential medicines and PM5C5 programs. 5he DP&

    has de)eloped distri,ution s$stems +or each o+ them. As such8 the DP& has cra+ted standard

    operating procedures +or each o+ the s$stems. O,Gecti)es pro)ide general statements a,out the

    mission o+ the organi=ation or 7hat is to ,e done. 5hese o,Gecti)es +ilter do7n through the

    organi=ational hierarch$ 7here plans are created to achie)e them.

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    %.1.1 'etting the direction

    5he totalit$ o+ goals and o,Gecti)es must ,e de+ined to ser)e as the measure against 7hich

    success is to ,e Gudged. ;oals esta,lish the milestones that 7arrant achie)ement. 5he$

    delineate the di++erences ,et7een 7here and 7hat the organisation is no78 and 7here and

    7hat the manager 7ants to ,e in the +uture. Determine the purpose o+ planning ,$ stating

    $our o,Gecti)es in concrete +orm. 5he o,Gecti)es should ,e speci+ic8 achie)a,le8 measura,le8

    and operational rather than a,stract.

    5he$ need to ha)e timelines to them. (oles and responsi,ilities o+ the people 7ho 7ill ,e

    in)ol)ed in planning including those authori=ing8 coordinating8 de)eloping8 appro)ing8 and

    participating in planning should ,e discussed and agreed upon. 5he Directorate o+ Pharmac$

    &er)ices has a mission to ensure that medicines 7hich are sa+e8 e++icacious and o+ good

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    !cti)ities in resource assessment

    Identi+ication o+ other resources and +acilities +or implementing the plan8 such as

    materials8 supplies8 e

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    needs liel$ to result +rom each alternati)e should ,e assessed. 5his is a stage not +ocused on

    ,$ the DP&.

    %.1.* !lternati)e 'election

    >inall$8 a+ter all the alternati)e com,inations are anal$sed8 the com,ination o+ alternati)es

    7hich most nearl$ meets the totalit$ o+ pharmac$ ser)ices goals and o,Gecti)es is selected.

    5he selection process should not gi)e undue emphasis to personal goals are not gi)en undue

    emphasis o)er +inancial goals. A+ter a plan has ,een selected as the most appropriate one8 a

    realistic schedule +or it should ,e de)ised. 5his plan should ,e monitored and e)aluated

    ,asing on agreed metrics so that it can ,e amended 7hene)er necessar$. 5he 1':month

    suppl$ plan +or the DP& is monitored through the use o+ Pipeline so+t7are. 5he plan is

    changed i+ necessar$ ,asing on the actual consumption o+ the medicines.

    %.2 "roblem +ierarchy

    Long:term or strategic planning concerns the achie)ement o+ goals o+ the resource o7ners

    o)er se)eral $ears. Long:term plans generall$ a++ect maGor changes in the 7a$ resources are

    used to achie)e goals. Once implemented8 plans at this le)el cannot ,e altered

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    ho7 to ,est e++ect or implement long:term plans. Decisions resulting +rom tactical planning

    are liel$ to ,e repeated at least annuall$. &hort term or operational planning is characteri=ed

    ,$ those man$ decisions that must ,e made in a short time:+rame. Plans +or the da$Hs or

    7eeHs acti)ities are eamples o+ operational plans commonl$ made. 5hese are plans made ,$

    the LU sta++ +or their dail$ acti)ities and can ,e changed easil$.

    *.0 &ey issues in #ecision $aing

    As 9ilco 1*'2 stated in his ,oo on gra=ing management the success+ul rancher is that

    one 7ho can8 +irstl$ identi+$ the di++erent +actors 7hich 7ill a++ect operation o+ the ranch8 and

    secondl$8 can anticipate the changes in them that 7ill in+luence his success. 5his success+ul

    rancher is the one 7ho a)oids crisis in the running o+ his enterprise... ?o operator should

    allo7 himsel+ to get into the crisis situation8 ,ut should arrange his management st$le to

    anticipate the changes 7hich 7ill ,e necessar$ in the operation and mae those changes

    a++ecting in a timel$ manner.

    Lie7ise8 9hite et al. 1*'3 stated 5his Janticipating changeK is an impossi,le tas i+ the

    ranch has not de)eloped a logical and practical approach +or anal$sing in+ormation8

    e)aluating plans8 and directing dail$ operations... It is dou,t+ul that an$ person can accuratel$

    assimilate the mass o+ in+ormation and predict the o)erall ranch outcome 7ithout detailed

    planning and e)aluation. 5his ad)ice +rom a gra=ing management points to a need +or

    no7ledge management 7ithin organisations. It calls +or Elearning organisations.F 5he LU has

    a Logistics Management In+ormation &$stems LMI& +or consumption data management.

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    ;reen7ell 1**' 7rote that the e++ecti)eness o+ a manager in using a)aila,le in+ormation has

    a ps$chological ,asis deri)ing +rom memor$8 perception and pro,lem sol)ing sills and eists

    onl$ in the social contet in 7hich the manager +unctions. -e said le)el o+ ac

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    right pro,lem must ,e +ound and identi+ied. During pro,lem diagnosis8 it is common to

    con+use s$mptoms and pro,lems. 5his ma$ lead to poor decisions 7hich are o+ten correct

    solutions to the 7rong pro,lem.

    'teps in "roblem #iagnosis include

    Con+irm i+ there is a pro,lem:Compare the results $ou ha)e 7ith the results $ou

    7anted to achie)e. I+ the$ are the same or ,etter8 a pro,lem does not eist. I+ $ou

    ha)e in+erior results8 then a pro,lem eists.

    In)estigate causal agents:>ind the reasons ,ehind de)iations +rom o,Gecti)es.

    Approach the pro,lem anal$ticall$ and realisticall$ +inding the distance ,et7een

    7anted and actual results8 maGor de+icienc$ +actors8 ,arriers to success8 and

    satis+actor$ solution reocus on causal pro,lems rather than de)iations +rom de+ined standards8 such as

    emplo$ee turno)er rate 7hich ma$ ,e due to the personnel departmentHs inadeocus on the real pro,lem and its possi,le causes

    'tep 2: List alternati)es

    Managers need to de)elop a list o+ possi,le courses o+ action that 7ill sol)e the pro,lem.

    Managers must loo +or standard ans7ers and also creati)e ans7ers. 5he techni

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    and the su,ordinates. In ,rainstorming8 e)er$one comes up 7ith as man$ alternati)es as

    possi,le. /mplo$ees should eperience a nurturing en)ironment 7here e)er$one 7ill +eel lie

    contri,uting. &hooting do7n an idea 7ill stop the +ree +lo7 o+ echange.

    5he team should mae a thorough and comprehensi)e e++ort to identi+$ all logical alternati)es

    to the pro,lem. Inno)ation should allo7 +or enough +lei,ilit$ to de)iate +rom the traditional

    7a$ o+ doing things i+ it is promising to do so8 or taing no action on the pro,lem8 to use

    intuition and ad)ice +rom others 7ho ha)e handled similar pro,lems. Managers must guard

    against ,arriers in eploring options such as egotistic desires to control the solution

    personall$ or 7anting to +ocus on short:term rather than long:term e++ects.

    'tep %: ,)aluation of each course of action and selecting the best alternati)e.

    /)aluating options is part o+ selecting a desira,le alternati)e. As part o+ the e)aluation8 the

    potential e++ects o+ each choice should ,e listed o,Gecti)el$. 5he merits and demerits o+ each

    alternati)e should ,e 7eighed using pre:determined metrics. A set o+ attri,utes8 such as cost8

    resource utili=ation8 ris8 and schedule slippage +or rating the alternati)es need to ,e

    de)eloped +rom the o,Gecti)es set out earlier. 5hese attri,utes should ,e used to come up

    7ith a raning s$stem +or the di++erent choices and result in an e)aluation matri. A

    discussion o+ those e++ects should lead to a decision ,ased on 7hat is ,est +or the

    organi=ation. 5he DP& is mainl$ 7orried a,out cost:,ene+it anal$ses in choosing medicines

    to include in the essential medicines list.

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    'tep *: Choice maing and decision implementation Implement the chosen alternati)e.

    Ideas themsel)es on their o7n do no good. 5he chosen alternati)e must ,e turned into action.

    5his is critical. All o+ $our success+ul anal$sis 7onFt do an$ good i+ $ou are a+raid to act.

    9hether the implementation is eas$ or hard8 $ou must tae action. In all lielihood8 there 7ill

    not ,e one or more per+ect alternati)es +rom 7hich to choose ,ecause o+ the d$namic nature

    o+ the organi=ationHs en)ironment8 incomplete in+ormation8 ha)ing to reduce the compleit$

    o+ the pro,lem to a le)el at 7hich a human ,eing can handle the possi,le alternati)es8 lac o+

    time8 and ris. -o7 a decision is implemented 7ill ha)e a ,earing upon its success.

    A plan o+ action should ,e created to announce the decision8 to gather the resources to

    implement the decision8 and to assign responsi,ilit$ to the indi)iduals 7ho carr$ out the

    implementation. #eep in mind that people are more apt to participate in decision

    implementation i+ the$ ha)e ,een gi)en the opportunit$ to participate in the decision maing.

    5his is 7h$ the DP& holds

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    and compare them to the desired results o+ the o,Gecti)es8 mae sure the steps to implement

    the decision ha)e ,een carried out8 and determine ho7 7ell the decision 7as accepted ,$

    those in)ol)ed.

    5he LU collects M/ data to ena,le program managers to pro)ide +eed,ac to sta++

    throughout the medicine and medical consuma,les suppl$ chain to impro)e s$stem

    per+ormanceB to report results to +unders and other staeholdersB and to Gusti+$ the need +or

    additional resources8 7hen appropriate. One important reason to do M/ is to impro)e

    program management and8 ultimatel$8 the logistics s$stem per+ormance. Impro)ing program

    management and s$stem per+ormance are critical +or impro)ing customer ser)ice and +or

    ensuring commodity security that clients ha)e the products 7hene)er and 7here)er the$

    need them. I+ the pro,lem is not resol)ed8 a manager must go ,ac through the process and

    loo at other alternati)es.

    -.0 Conclusion

    Planning is an acti)it$ that helps organi=ations and proGects proceed 7ith current and +uture

    7or in an organi=ed and s$stematic 7a$. Planning is the primar$ +unction o+ management

    and a continuous process 7here plans are re+ined and adGusted o)er time as more complete

    in+ormation ,ecomes a)aila,le. It assists an organi=ation map the direction +or the

    achie)ement o+ its o,Gecti)es. 5he process ,egins 7ith re)ie7ing the current operations o+ the

    organi=ation and identi+$ing 7hat needs to ,e impro)ed operationall$ in the coming periods.

    It later in)ol)es en)isioning the results the organi=ation 7ants to achie)e8 and determining

    the steps necessar$ to arri)e at the intended destination.

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    Decision maing is a critical acti)it$ that helps to mitigate ris 7ith di++icult pro,lems8 such

    as signi+icant de)iations +rom planned o,Gecti)es. De)iations +rom o,Gecti)es must ,e

    in)estigated thoroughl$ to +ind the root pro,lem rather than deal 7ith s$mptoms. &olutions to

    the pro,lem ma$ ,e +ound through the use o+ an e)aluation matri allo7ing a++ected parties

    to participate in the decision maing process. Creati)it$ in decision maing can ,e enhanced

    ,$ looing at the pro,lem elements +rom other perspecti)es8 such as using charts and graphs.

    9ithout decision maing di++erent managerial +unction such as planning8 organi=ing8

    directing8 controlling8 sta++ing cannot ,e conducted.

    >or an$thing to ,e done8 a decision has to ,e made. 5here+ore8 7e can sa$ that decision is

    important and per)asi)e element to implement the managerial +unction. Decisions can ,e

    used to e)aluate sta++ per+ormance. It is correct to ,elie)e that all emplo$ee actions +ollo7

    their decisions and there+ore decisions made are used to Gudge the e++icienc$ o+ an emplo$ee.

    An$ polic$ or plan is esta,lished through decision maing. 9ithout decision maing8 no

    plans and policies are per+ormed. In the process o+ maing plans8 appropriate decisions must

    ,e made +rom so man$ alternati)es. 5here+ore decision maing is an important process 7hich

    is help+ul in planning since decision maers e)aluate )arious merits and demerits o+ e)er$

    alternati)e and select the ,est alternati)e. It +ollo7s there+ore that success+ul organisational

    operations are a result o+ decide to plan and planning to decide. In this competiti)e 7orldB

    organi=ation can eist 7hen the correct and appropriate decisions are made. 5here+ore correct

    decisions help in success+ul operation o+ ,usiness.

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    .0 ibliography

    1. ;reen7ell8 M. 1*''. #no7ledge engineering +or epert s$stems. /llis -or7ood Ltd.

    Chichester8 /ngland.

    2. 9hite8 L.D.8 5.(. 5roel8 N.;. Pena and D./. ;u$nn. 1*''. 5otal ranch management:

    meeting goals. p. !*3:%0". In L.&. Pope ed8 ee+ cattle science hand,oo. @ol. 21.

    &pillman Press. &acramento8 Cali+.

    ". 9ilco8 D.;. 1*'2. 5he importance o+ +lei,ilit$ in ranch management strategies8 p.

    1!:2%. In Proc. 1*'2 International (anchers (oundup eds. L.D. 9hite and L.(.

    -oermann. 5eas Agr. /t. &er).8 U)alde.

    1'