1. Technical / Economic planning and projections

Organization

Generally

Technical / Economic planning and projections is a support function for a company´s board of directors and its executive directors decisions in comprehensive product- and process development.
The aim and direction is the responsiblities for
product assortment,product quality, raw material utilization,energy technique, process technique, production and process control.

To achive that:

  • Follow and watch the development within current business activity
  • Analyse,coordinate and develop direction/strategy for product and process development
  • Initiate proceedings for development in the company based on thorough investigations of initiatives and ideas.
  • Draw up short-and long-term plans and budget models.

    • Long-term plans could have a 10-20-yers perspective while the short-term model might comprise designs for the company´s activities over a 1-5 yers perspectiv.
  • The bord of directors and /or the company´s executive directors determine project feasibility and direction.The costs and returns element is related to the formula for calculations and development.
  • Agreed upon projects can be controlled from central technical / economic units, local units, or in cooperation between them.

    • The models work with input of data from costs, receipts, state of the market, policy, product type and the possibility of realisation.
  • The short-term-model should also be a one-year budget model wich optimizes production and quality with respect to basic data from customer, orders, prices, product mix and sheets of  received orders.

    • The one-year optimal budget model shuld be developed with the purpose of balancing current availabel information based on profitability for the company.

    The biggest problem in such a model is the difficulty of obtaining relevant data input from the market and the sales side.

    Advantage and disadvantage in diffrent forms of organisation:

    The company, a concern, assumes a number of units in production, geographicaly separated where each unit has a main responsibility in both production and administration.
    Administrative functions assumes, in addition, also exists in the concern´s central position comprehensive cooperation and control of the geographicaly separated units for production.
    The operations can be carried out in diffrent ways:
    Comprehensive and controlling technical / economic planning can be operated centrally, with the submission continuous information in long-term and short-term planning to the board of directors and the executive directors.
    The operation proceeds in cooperation with the production units.
    During recent time in Sweden, central staff size has been greatly reduced.
    Instead has the respective units of production the mainparts of corresponding responsibility for technical / ekonomic planning.
    One can certainly reflect over wich type of organisation to prefer.
    The prerequisite for effective decentralised funktions is adequate knowledge and experience of the specialists and coordinators within their respective unit of the production facilities.
    The advantage is that the organisation is closer to the operation and will be a inspiration for everyone working in the production facility.
    The disadvantage is that the full-time workers for the functions costly load several units in the production.Costs for technical / economic planning may be more costly in comparison to following the technical development externally,along with coordinating and supervising technical planning.
    If opposing operations are placed centrally and technical / economic operations within the production facilities are reduced to limited personnel only for the productive operation and its needs of administration and maintenance at the same time maintaining only a few persons in work with planning and projections this will reduse the personnel costs for the company.

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