Planning, Programming and Budgeting

8/7/2019 Planning, Programming and Budgeting

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Planning, Programming andBUDGETING


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TWO TYPES OF FACILITY PLANNING

Strategic or long rangeShort or mid-range


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STRATEGIC OR LONG RANGE

Our purpose is to eliminate the sometimes

exasperating funding of noncritical year-endprojects simply because they require little time todesign and execute. The longer-term work planhelps promote an important concept: the series of

work plans as spaces on a continuum rather thandiscrete entities.


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SHORT OR MID-RANGE

We are committed to good mid-range planning.

We feel the ideal length is eighteen to thirty-sixmonths, and that the first draft of each annual

work plan derives from the mid-range plan. Atleast 70 percent of the mid-range should be

translatable into an annual work plan once theplanning process is mature.


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If facility planning is to be successful, it

will reap its greatest rewards in mid-range planning.

A sample format for both mid-rangeand strategic plans is given in Exhibit4-3. The difference is only in the regard

to specificity of assumptions anddegree of detail.


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FACILITY PLAN FORMAT

Introduction

Environment Assumptions

Constraints

Discussion

Fiscal Projected

Rational


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INTRODUCTION

The introduction sets the stage and tone.

Commonly there is a purpose statement andsome bridge material to the correspondingbusiness plan, from which the facility plan

has evolved or to other plans based on thisdocument.


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ENVIRONMENT

The planning team extracts from the business plan pertinentenvironmental considerations that will affect facilities.

That fact is known by the facility department but probably not by theorganizations business planners. On the other hand, factors heremight be general comments regarding utility rate trends, local laborrate projections, or changing company attitudes toward administrativeexpenses.

The facilities plan will concentrate more on internal companyenvironment than does the business plan.


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CONSTRAINTS

Constraints should be stated only to the extent that they

exist.

Constraints, as applicable can come from the companybusiness plan. They are an effective way to shape the

planning process, but should be used only when you arecertain that they are supported and supportable.


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DISCUSSION

Although preparation is more difficult, and the

plan becomes more voluminous, you shouldinclude multiple scenarios. By showing a rangeof values, the plan more appropriatelyrepresents its degree of accuracy. Also,

scenarios insulate you best from failure whichscenarios to consider varies.


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ThankYou!!!

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Planning, Programming and Budgeting