To Gain Economical Operation

 

To Gain Economical Operation

Planning minimizes costs because of the emphasis on efficient operation and consistency. It substitutes joint directed effort for uncoordinated piecemeal activity, even flow of work for uneven flow, and deliberate decisions for snap judgments.

 The economy of planning is plainly seen at the production level. No one who has watched the assembly of automobiles in one of the larger factories can fail to be impressed with the way that the parts and subassemblies come together. This implies extensive detailed planning without which the manufacture of automobiles would be chaotic and impossible costly.

However, managers need to pay close attention to the critical path of PERT network – the sequence of events and activities requiring the longest period of time to complete. This path is called critical because a delay in completing this sequence results in a delay in completing the entire project.