MANAGE PRODUCTION OPERATION
Managing production Operations Information Sheet
LO1: Develop operational plan
INTRODUCTION
Production/manufacturing is the process of converting raw materials or semi-finished products into
finished products that have value in the market place. This process involves the contribution of labor,
equipment, energy, and information.
Production function is that part of an organization, which is concerned with the transformation of a
range of inputs into the required outputs (products) having the requisite quality level. Production is
defined as “the step-by-step conversion of one form of material intoanother form through chemical or
mechanical process to create or enhance the utility ofthe product to the user.” Thus production is a
value addition process. At each stage of processing, there will be value addition.
EdwoodBuffa defines production as ‘a process by which goods and services are created’. Some
examples of production are: manufacturing custom-made products like, boilers with a specific capacity,
constructing flats, some structural fabrication works for selected customers, etc., and manufacturing
standardized products like, car, bus, motor cycle, radio, television, etc.
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Concept of Operations
An operation is defined in terms of the mission it serves for the organization, technology it employs
and the human and managerial processes it involves. Operations in an organization can be categorized
Into manufacturing operations and service operations. Manufacturing operations is a conversion
Process that includes manufacturing yields a tangible output: a product, whereas, service operation a
conversion process that includes service yields an intangible output: a deed, a performance, an effort.
The operation function of an organization is the part that produces the organization’s products. The
product may be physical goods or services. This function performs several activities to ‘transform’ a set
of inputs into a useful output using a conversion process. The conversion process is the process of
changing inputs of labor, materials, capital and management into outputs of goods and services. The
basic elements of a conversion process are shown in the Figure 1.1
Figure 1.1 Basic Elements of Conversion Process
The production process consists of number of activities and operations. These operations and activities
can be applied in different combinations and order to achieve the desired objective. The operations
can be purchase of raw materials, maintenance of inventories, transportation of goods etc. The
combination of two or more constitutes a system. In any production process two or more systems can
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be combined in series or parallel e.g. number of factories producing produce similar products to supply
several markets areas then they constitute a parallel system. According to Webster “System is a
regularly interacting or interdependent group of items forming a unified whole.” Any systems may
have many components and variation in one component is likely to effect the other components of a
system e.g. change in rate of
Production will affect inventory, overtime hours etc.
“Production” is directly related to the manufacturing of goods (products are produced). In the world of
services, production refers to the service delivery.
“Operations” has to be understood as in: “Military operations” or in “Stock Exchange operations”. It
refers to the daily actions necessary for the production system to work.
Production management means planning, organizing, directing and controlling of production
activities. Production management deals with converting raw materials into finished goods or
products. Production management also deals with decision-making regarding the quality, quantity,
cost, etc., of production. It applies management principles to production.
Production management is a part of business management. It is also called "Production Function."
Production management is slowly being replaced by operations management.
The main objective of production management is to produce goods and services of the right quality,
right quantity, at the right time and at minimum cost. It also tries to improve the efficiency. An efficient
organization can face competition effectively. Production management ensures full or optimum
utilization of available production capacity.
Production management also called operations management, planning and control of industrial
processes to ensure that they move smoothly at the required level. Techniques of production
management are employed in service as well as in manufacturing industries. It is a responsibility similar
in level and scope to other specialties such as marketing or human resource and financial
management. In manufacturing operations, production management includes responsibility for
product and process design, planning and control issues involving capacity and quality, and
organization and supervision of the workforce.
Definition of production management.It may be defined as:
• The performance of the management activities with regards to selecting, designing, operating,
Controlling and updating production system.
• It is the processes of effectively planning, coordinating and controlling the production that is the
operations of that part of an enterprise, it means to say that production and operations Management
is responsible for the actual transformation of raw materials into finished products.
• Production management is a function of Management, related to planning, coordinating and
controlling the resources required for production to produce specified product by specified methods,
by optimal utilization of resources.
• Production management is defined as management function which plans, organizes, coordinates,
directs and controls the material supply and processing activities of an enterprise, so that specified
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products are produced by specified methods to meet an approved sales program. These activities are
being carried out in such a manner that Labor, Plant and Capital available are used to the best
advantage of the organization
Production/operations management is the process, which combines and transforms various resources
used in the production/operations subsystem of the organization into value added product/services in
a controlled manner as per the policies of the organization. Therefore, it is that part of an organization,
which is concerned with the transformation of a range of inputs into the required (products/services)
having the requisite quality level.
The set of interrelated management activities, which are involved in manufacturing certain products, is
called as production management. If the same concept is extended to services management, then the
corresponding set of management activities is called as operationsmanagement. For over two
centuries operations and production management has been recognized as an important factor in a
country’s economic growth. The traditional view of manufacturing management began in eighteenth
century when AdamSmith recognized the economic benefits of specialization of labor. He
recommended breaking of jobs down into subtasks and recognizes workers to specialized tasks in
which they would become highly skilled and efficient. In the early twentieth century, F.W. Taylor
implemented Smith’s theories and developed scientific management.
The production system is a system whose function is to transform an input into a desired output by
means of a process (the production process) and of resources. Of an organization is that part, which
produces products of an organization.
The definition of a production system is thus based on four main elements: the input, the resources,
the production process and the output. It is that activity whereby resources, flowing within a defined
system, are combined and transformedin a controlled manner to add value in accordance with the
policies communicated by management.
A simplified production system is shown above.
The production system has the following characteristics:
1. Production is an organized activity, so every production system has an objective.
2. The system transforms the various inputs to useful outputs.
3. It does not operate in isolation from the other organization system.
4. There exists a feedback about the activities, which is essential to control and improve System
performance.
Types of Production Systems
A production system can be defined as a transformation system in which a saleable product or service
is created by working upon a set of inputs. Inputs are usually in the form of men, machine, money,
materials etc. Production systems are usually classified on the basis of the following:
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Production systems can be classified as Job Shop, Batch, Mass and Continuous Production
Systems.
JOB SHOP PRODUCTION
Job shop production are characterized by manufacturing of one or few quantity of products designed
and produced as per the specification of customers within prefixed time and cost. The distinguishing
feature of this is low volume and high variety of products. A job shop comprises of general purpose
machines arranged into different departments. Each job demands unique technological requirements,
demands processing on machines in a certain sequence.
Characteristics
The Job-shop production system is followed when there is:
1. High variety of products and low volume.
2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as a challenge because of uniqueness.
4. Large inventory of materials, tools, parts.
Advantages
Following are the advantages of job shop production:
1. Because of general purpose machines and facilities variety of products can be produced.
2. Operators will become more skilled and competent, as each job gives them learning opportunities.
3. Full potential of operators can be utilized.
4. Opportunity exists for creative methods and innovative ideas.
Limitations
Following are the limitations of job shop production:
1. Higher cost due to frequent set up changes.
2. Higher level of inventory at all levels and hence higher inventory cost.
3. Production planning is complicated.
4. Larger space requirements.
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BATCH PRODUCTION
Batch production is defined by American Production and Inventory Control Society (APICS) “as a form
of manufacturing in which the job passes through the functional departments in lots or batches and
each lot may have a different routing.” It is characterized by the manufactureof limited number of
products produced at regular intervals and stocked awaiting sales.
Characteristics
Batch production system is used under the following circumstances:
1. When there is shorter production runs.
2. When plant and machinery are flexible.
3. When plant and machinery set up is used for the production of item in a batch and change of set up
is required for processing the next batch.
4. When manufacturing lead time and cost are lower as compared to job order production.
Advantages
Following are the advantages of batch production:
1. Better utilization of plant and machinery.
2. Promotes functional specialization.
3. Cost per unit is lower as compared to job order production.
4. Lower investment in plant and machinery.
5. Flexibility to accommodate and process number of products.
6. Job satisfaction exists for operators.
Limitations
Following are the limitations of batch production:
1. Material handling is complex because of irregular and longer flows.
2. Production planning and control is complex.
MASS PRODUCTION
Manufacture of discrete parts or assemblies using a continuous process are called mass production.
This production system is justified by very large volume of production. The machines are arranged in a
line or product layout. Product and process standardization exists and all outputs follow the same
path.
Characteristics
Mass production is used under the following circumstances:
1. Standardization of product and process sequence.
2. Dedicated special purpose machines having higher production capacities and output rates.
3. Large volume of products.
4. Shorter cycle time of production.
5. Lower in process inventory.
6. Perfectly balanced production lines.
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Advantages
Following are the advantages of mass production:
1. Higher rate of production with reduced cycle time.
2. Higher capacity utilization due to line balancing.
3. Less skilled operators are required.
4. Low process inventory.
5. Manufacturing cost per unit is low.
Limitations
Following are the limitations of mass production:
1. Breakdown of one machine will stop an entire production line.
2. Line layout needs major change with the changes in the product design.
3. High investment in production facilities.
4. The cycle time is determined by the slowest operation.
CONTINUOUS PRODUCTION
Production facilities are arranged as per the sequence of production operations from the first
operations to the finished product. The items are made to flow through the sequence of operations
through material handling devices such as conveyors, transfer devices, etc.
Characteristics
Continuous production is used under the following circumstances:
1. Dedicated plant and equipment with zero flexibility.
2. Material handling is fully automated.
3. Process follows a predetermined sequence of operations.
4. Component materials cannot be readily identified with final product..
Advantages
Following are the advantages of continuous production:
1. Standardization of product and process sequence.
2. Higher rate of production with reduced cycle time.
3. Higher capacity utilization due to line balancing.
4. Manpower is not required for material handling as it is completely automatic.
Limitations
Following are the limitations of continuous production:
1. Flexibility to accommodate and process number of products does not exist.
2. Very high investment for setting flow lines.
Objectives of Production Management
The objective of the production management is ‘to produce goods services of right quality and quantity
at the right time and right manufacturing cost’.
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1. RIGHT QUALITY
The quality of product is established based upon the customers’ needs. The right quality is not
necessarily best quality. It is determined by the cost of the product and the technical characteristics
as suited to the specific requirements.
2. RIGHT QUANTITY
The manufacturing organization should produce the products in right number. If they are produced
in excess of demand the capital will block up in the form of inventory and if the quantity is produced in
short of demand, leads to shortage of products.
3. RIGHT TIME
Timeliness of delivery is one of the important parameter to judge the effectiveness of production
Department. So, the production department has to make the optimal utilization of input resources
to achieve its objective.
4. RIGHT MANUFACTURING COST
Manufacturing costs are established before the product is actually manufactured. Hence, all attempts
should be made to produce the products at pre-established cost, so as to reduce the variation between
actual and the standard (pre-established) cost.
Distinction between Manufacturing Operations and Service Operations
Following characteristics can be considered for distinguishing manufacturing operations withservice
operations:
1. Tangible/Intangible nature of output
2. Consumption of output
3. Nature of work (job)
4. Degree of customer contact
5. Customer participation in conversion
6. Measurement of performance.
Manufacturing is characterized by tangible outputs (products), outputs that customers
consumeOvertime, jobs that use less labor and more equipment, little customer contact, no customer
participation in the conversion process (in production), and sophisticated methods for measuring
Production activities and resource consumption as product are made.
Service is characterized by intangible outputs, outputs that customers consumes immediately, jobs
that use more labor and less equipment, direct consumer contact, frequent customer participation in
the conversion process, and elementary methods for measuring conversion activities and resource
consumption. Some services are equipment based namely rail-road services, telephone services and
some are people based namely tax consultant services, hair styling.
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A Framework for Managing Operations
Managing operations can be enclosed in a frame of general management function. Operation
managers are concerned with planning, organizing, and controlling the activities which affect human
behavior through models.
PLANNING
Activities that establishes a course of action and guide future decision-making is planning.
The operations manager defines the objectives for the operations subsystem of the organization, and
the policies, and procedures for achieving the objectives. This stage includes clarifying the role and
focus of operations in the organization’s overall strategy. It also involves product planning, facility
designing and using the conversion process.
ORGANIZING
Activities that establishes a structure of tasks and authority. Operation managers establish a structure
of roles and the flow of information within the operations subsystem. They determine the activities
required to achieve the goals and assign authority and responsibility for carrying them out.
CONTROLLING
Activities that assure the actual performance in accordance with planned performance. To ensure
that the plans for the operations subsystems are accomplished, the operations manager must exercise
control by measuring actual outputs and comparing them to planned operations management.
Controlling costs, quality, and schedules are the important functions here.
BEHAVIOUR
Operation managers are concerned with how their efforts to plan, organize, and control affect human
behavior. They also want to know how the behavior of subordinates can affect management’s
planning, organizing, and controlling actions. Their interest lies in decision-making behavior.
MODELS
As operation managers plan, organize, and control the conversion process, they encounter many
problems and must make many decisions. They can simplify their difficulties using models like
aggregate planning models for examining how best to use existing capacity in short-term, break even
analysis to identify break even volumes, linear programming and computersimulation for capacity
utilization, decision tree analysis for long-term capacity problem of facility expansion, simple median
model for determining best locations of facilities etc.
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SCOPE OF PRODUCTION AND OPERATIONS MANAGEMENT
Production and operations management concern with the conversion of inputs into outputs, using
Physical resources, so as to provide the desired utilities to the customer while meeting the other
Organizational objectives of effectiveness, efficiency and adoptability. It distinguishes itself from
Other functions such as personnel, marketing, finance, etc., by its primary concern for ‘conversion
by using physical resources.’ Following are the activities which are listed under production and
Operations management functions:
1. Location of facilities
2. Plant layouts and material handling
3. Product design
4. Process design
5. Production and planning control
6. Quality control
7. Materials management
8. Maintenance management.
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LOCATION OF FACILITIES
Location of facilities for operations is a long-term capacity decision which involves a long term
commitment about the geographically static factors that affect a business organization. It is an
important strategic level decision-making for an organization. It deals with the questions such as
‘where our main operations should be based?’The selection of location is a key-decision as large
investment is made in building plant and machinery. An improper location of plant may lead to waste
of all the investments made in plant and machinery equipments. Hence, location of plant should be
based on the company’s expansion plan and policy, diversification plan for the products, changing
sources of raw materials and many other factors. The purpose of the location study is to find the
optimal location that will results in the greatest advantage to the organization.
PLANT LAYOUT AND MATERIAL HANDLING
Plant layout refers to the physical arrangement of facilities. It is the configuration of departments,
work centers and equipment in the conversion process. The overall objective of the plant layout is to
design a physical arrangement that meets the required output quality and quantity most economically.
According to James Moore, “Plant layout is a plan of an optimum arrangement of facilities including
personnel, operating equipment, storage space, material handling equipment’s and all other supporting
services along with the design of best structure to contain all these facilities”.
‘Material Handling’ refers to the ‘moving of materials from the store room to the machine and from
one machine to the next during the process of manufacture’. It is also defined as the ‘art and science of
moving, packing and storing of products in any form’. It is a specializedactivity for a modern
manufacturing concern, with 50 to 75% of the cost of production. This cost can be reduced by proper
section, operation and maintenance of material handling devices.
Material handling devices increases the output, improves quality, speeds up the deliveries and
decreases the cost of production. Hence, material handling is a prime consideration in the designing
new plant and several existing plants.
PRODUCT DESIGN
Product design deals with conversion of ideas into reality. Every business organization have to design,
develop and introduce new products as a survival and growth strategy. Developing the new products
and launching them in the market is the biggest challenge faced by the organizations. The entire
process of need identification to physical manufactures of product involves three functions: marketing,
product development, manufacturing.
Product development translates theneeds of customers given by marketing into technical specifications and
designing the various features into the product to these specifications. Manufacturing has the
responsibility of selecting the processes by which the product can be manufactured. Product design
and development provides link between marketing, customer needs and expectations and the
activities required to manufacture the product.
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PROCESS DESIGN
Process design is a macroscopic decision-making of an overall process route for converting the raw
material into finished goods. These decisions encompass the selection of a process, choice of
technology, process flow analysis and layout of the facilities. Hence, the important decisions in process
design are to analyses the workflow for converting raw material into finished product and to select the
workstation for each included in the workflow.
PRODUCTION PLANNING AND CONTROL
Production planning and control can be defined as the process of planning the production in advance,
setting the exact route of each item, fixing the starting and finishing dates for each item, to give
production orders to shops and to follow up the progress of products according to orders.
The principle of production planning and control lies in the statement ‘First Plan Your Workand then
Work on Your Plan’. Main functions of production planning and control includes planning, routing,
scheduling, dispatching and follow-up.
Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning
bridges the gap from where we are, to where we want to go. It makes it possible for things to occur
which would not otherwise happen.
Routing may be defined as the selection of path which each part of the product will follow, which
being transformed from raw material to finished products. Routing determines the most advantageous
path to be followed from department to department and machine to machine till raw material gets its
final shape.
Scheduling determines the programme for the operations. Scheduling may be defined as ‘the fixation
of time and date for each operation’ as well as it determines the sequence of operations to be
followed.
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QUALITY CONTROL
Quality Control (QC) may be defined as ‘a system that is used to maintain a desired level of quality in a
product or service’. It is a systematic control of various factors that affect the quality of the product.
Quality control aims at prevention of defects at the source, relies on effective feedback system and
corrective action procedure.
Quality control can also be defined as ‘that industrial management technique by means of which
product of uniform acceptable quality is manufactured’. It is the entire collection of activities which
ensures that the operation will produce the optimum quality products at minimum cost.
The main objectives of quality control are:
 To improve the companies income by making the production more acceptable to thecustomers
i.e., by providing long life, greater usefulness, maintainability, etc.
 To reduce companies cost through reduction of losses due to defects.
 To achieve interchangeability of manufacture in large scale production.
 To produce optimal quality at reduced price.
 To ensure satisfaction of customers with productions or services or high quality level, tobuild
customer goodwill, confidence and reputation of manufacturer.
 To make inspection prompt to ensure quality control.
 To check the variation during manufacturing.
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MATERIALS MANAGEMENT
Materials management is that aspect of management function which is primarily concerned with the
acquisition, control and use of materials needed and flow of goods and services connected with the
production process having some predetermined objectives in view.
The main objectives of materials management are:
 To minimize material cost.
 To purchase, receive, transport and store materials efficiently and to reduce the related cost.
 To cut down costs through simplification, standardization, value analysis, import substitution,
etc.
 To trace new sources of supply and to develop cordial relations with them in order toensure
continuous supply at reasonable rates.
 To reduce investment tied in the inventories for use in other productive purposes and
todevelop high inventory turnover ratios.
MAINTENANCE MANAGEMENT
In modern industry, equipment and machinery are a very important part of the total productive effort.
Therefore, their idleness or downtime becomes are very expensive. Hence, it is very important that the
plant machinery should be properly maintained.
The main objectives of maintenance management are:
1. To achieve minimum breakdown and to keep the plant in good working condition at thelowest
possible cost.
2. To keep the machines and other facilities in such a condition that permits them to be usedat
their optimal capacity without interruption.
3. To ensure the availability of the machines, buildings and services required by other sectionsof
the factory for the performance of their functions at optimal return on investment.
Factory Level Production management
1. Planning
2. Production Management
3. Manufacturing production scheduling (MPS)
4. Material requirement planning (MRP)
5. Just in time (JIT)
6. Bill of Materials
7. Capacity Planning
8. Inventory Control
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Operational Plans
–
Specify the details of how the overall goals are to be achieved.
–
Cover short time period.
 Production/operations management is the process, which combines and transforms
variousresources used in the production/operations subsystem of the organization into value
addedproduct/services in a controlled manner as per the policies of the organization.
 The set of interrelated management activities, which are involved in manufacturing
certainproducts, is called as production management.
 If the same concept is extended to servicesmanagement, then the corresponding set of
management activities is called as operationsmanagement.
– it should aim to change the future
- there is no one right way to plan
– they must influence peoples’ behavior
There are three types of plan used at different levels within an organization:
1. Strategic plan
2. Business plan
3. Operational plan
1. Thestrategic plan; is developed for long-term planning and covers a period of aboutfive years.
The strategic plan specifies the missions and goals of the organization including decisions on
how resources, both capital and human, will be allocated to meetorganizational goals.
2. Business plans; sit between the highest-level plan (the strategic plan) and the operationalplan.
A business plan is a formal statement of a set of business goals and objectives thatare to be
achieved to meet the strategic objectives of the organization. The business planincludes the
reasons why the goals and objectives are believed to be attainable, the planfor reaching those
goals inclusive of relevant information about the organization.
3. An operational plan; focuses on the short-term objectives: what needs to be accomplishedin
the near future in order that the company can progress towards achieving its strategic
objectives. Operational plans generally have a focus of less than one year and are quitedetailed
in terms of what needs to be implemented and how.
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An operational plan is an annual work plan. It describes short-term business strategies; it explains
how a strategic plan will be put into operation (or what portion of a strategic plan will be addressed)
during a given operational period (fiscal year). An operational plan is the basis for and justification of
an annual operating budget request. Therefore, a strategic plan that has a five-year lifetime would
drive five operational plans funded by five operating budgets.
What Is Strategic Planning Versus Operational Planning?
Strategic Planning
 A strategic planning process is used when there is a broad and open question to be answered, and
many paths are on the table.
Strategic Planning ProcessComponents
Within any strategic planning exercise the followingactivities will occur:
A visioning exercise
creating mission and goals
establishing objectives
establishing strategic directions
developing a framework to establish and monitorsuccess – a balanced scorecard approach
Creating an implementation plan/timetable.
Operational Planning
 An operational planning process starts from a point of aspecific objective, for example to increase
the numberof clients served.
 Operational planning will include:
 statement of purpose/deliverables/target to beachieved/success indicators
 use of available and relevant data and information
 Stakeholder engagement (who needs to fund, deliverexpanded services?)
 selection of priority action approach (new programdesign)
 developing an implementation timetable and budget
1.1.
Develop operational plan and consult with relevant personnel
Operational Planning is short term and is about the inputs, process / activities and outputs
The steps you follow in OP development process
 Information for planning
 Stakeholders analysis and mapping
 Mapping the available resources
 Defining your Work in the plan Framework
 Defining Human Resources Need for implementation
 Assign Responsibility for implementation
 Measurement and Evaluation for your Operational Plan
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Step 1: Prepare and compile the necessary information
Policy documents e.g. National Policy on production or any other
New Surveys and surveillance (observation) that may affect your Prioritization Process
Progress reports from previous operational plans including challenges and lessons learned
Measurement and Evaluation Framework
Others
Structure of the operational plan:
The operational framework is structured in four parts
Program Information Note that outlines a brief history of the program, highlights the strategic
approach, rationale and overall scope
Strategic framework outlines the strategic objectives, major activity areas and tasks under each
activity
Monitoring framework outlines the key indicators for each strategic objective with annual and
overall targets
Financial framework outlines the costing templates per strategic objective and per activity and task
with yearly costs and funding sources (where known).
Please note: the strategic, monitoring and financial framework are written separately
HOW TO: Prepare an Operational Plan
Define
Organization
Mission
ns
Assess
Competitive
Position
Set
Objective
for organizations
Evaluate the
result and
refine plan
Create strategies
for competitive
differentiation
Turn strategies
into action
Basic Operational Plan Requirements
 As required by, an operational plan (OP) must be prepared and submitted byeach
department/agency (or budget unit) as part of its "total budget request document." An OPdraws
directly from agency and program strategic plans to describe agency and programmissions and
goals, program objectives, and program activities. Like a strategic plan, anoperational plan
addresses four questions:
Where are we now?
Where do we want to be?
How do we get there?
How do we measure our progress?
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 To answer those questions, meaningful data must be included for prior fiscal(economic) years, the
currentfiscal year, and the ensuing fiscal year (the fiscal year for which funding is requested).
 The OP isboth the first and the last step in preparing an operating budget request.
 As the first step, the OPprovides a plan for resource allocation; as the last step, the OP may be
modified to reflect policydecisions or financial changes made during the budget development
process.
 The OP must link department/agency goals, program goals and objectives, and program
performance.
 To do this, the OP provides information about the department/agency (budget unit)
submitting the budget request; the program or programs operated by the
department/agency (budget unit); and activities included in each program. Specifically, the
OP includes:
 Department/agency (budget unit) name, number, and description (mission and
goals);
 Program name and authorization for each program in budget unit;
 Program description (including mission, goals, and activities) for each program in
budget unit;
 Program objectives (with link to strategic plan) for each program in budget unit;
 Program performance indicators for each objective for each program in budget
unit;
 Organization and program structure chart for budget unit; and
 Program contact person(s).
 The OP is based on the premise (idea) that existing funding levels will be extended, with
adjustments,into a continuation level budget.
 Therefore, the OP should describe a program as it currentlyexists and as it would be at a
continuation budget level. (Continuation budget is defined as "thatfunding level for each budget
unit and program that reflects the financial resources necessary tocarry on all existing programs
and functions of the budget unit at their current level of service inthe ensuing fiscal year, including
any adjustments necessary to account for the increased cost ofservices or materials due to inflation
and estimated increases in workload requirements resultingfrom demographic or other changes.)
 Full justification, citing performance data, for anyworkload adjustments included in an agency's
continuation level calculation must be provided inthe Continuation Budget (CB forms).
 To implement components of their strategic plans, manyagencies seek program enhancements in
their operating budget requests.
 Program enhancementsshould be justified (complete with new or modified objectives and
performance indicators) inNew or Expanded Service Forms (NEs).
An operational plan indicates;
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�Results
�Activities
�Quantity and units of inputs
�Unit Cost
�Total cost
�Funding source
�Time frame
�Implementing agency/Responsibility
�Grand total cost = Financing or resource requirement
LO2: Plan and manage resource acquisition
The lifecycle of a resource begins with its acquisition. How and whenresources are acquired can play a
critical role in the functioning of asoftware system. By optimizing the time it takes to acquire resources,
System performance can be significantly improved.Before a resource can be acquired, the most
fundamental problem tobe solved is how to find a resource. The Lookup patternaddresses this problem
and describes how resources can be madeavailable by resource providers, and how these resources
can befound by resource users.Once a resource has been found, it can be acquired. The timing
ofresource acquisition is important, and is mainly addressed by LazyAcquisition and Eager Acquisition.
While Lazy Acquisition
Defers acquisition of resources to the latest possible point in time, Eager Acquisition instead strives to
acquire resources as early as possible. Both extremes are important and are heavily dependent on the
use of the resources. If resources that are acquired are not used immediately it can lead totheir
wastage. Lazy Acquisition addresses this problem and consequently leads to better system scalability.
On the other hand, some systems have real-time constraints and stringent requirements for the timing
of resource acquisition. Eager Acquisition addresses this problem, and consequently leads to better
system performance and predictability.
A resource of large or unknown size may not be needed completely,and therefore it might be sufficient
to acquire only part of theresource. The Partial Acquisition (81) pattern describes how theacquisition
of a resource can be partitioned into steps to allow onlypart of the resource to be acquired. Partial
Acquisition can serve as abridge between Lazy Acquisition and Eager Acquisition. The first stepof
Partial Acquisition typically acquires part of the resource eagerly,while subsequent steps defer further
resource acquisition to a laterstage.
The Lookup pattern can be used with both reusable and non-reusableresources. Furthermore, it can
support both concurrently accessibleresources and exclusive resources. This is because Lookup
onlyfocuses on providing access to resources, and does not deal with howthe resources are actually
used.
Lazy Acquisition, Eager Acquisition and Partial Acquisition can alsobe used with both reusable and nonreusable resources. However, ifa reusable resource is concurrently accessible, the three patterns
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canprovide certain optimizations such that the resource is only acquiredonce and can then be shared
by the concurrent users. Such anoptimization requires special handling in the case of
PartialAcquisition. This is because the amount of a resource that is partiallyacquired can vary among
the concurrent users.
Resource Acquisition (gaining)

Specify the plan for acquiring the resources and assets, in addition to personnel, needed to
successfully complete the project.

Describe the resource acquisition process.

Specify the assignment of responsibility for all aspects of resource acquisition.

Specify acquisition plans for equipment, computer hardware and software, training, service
contracts, transportation, facilities, and administrative and janitorial services.

Specify when in the project schedule the various acquisition activities will be required.

Specify any constraints on acquiring the necessary resources.
The Lookuppattern describes how to find and access resources,whether local or distributed, by using a
lookup service as a mediatinginstance.resource provider can publish the availability of existing
resources tointerested resource users is by periodically sending a broadcastmessage. Such messages
need to be sent on a periodic basis to ensurethat new resource users joining the system become aware
of availableresources. Conversely, a resource user could send a broadcast
message requesting all available resource providers to respond. Oncethe resource user receives replies
from all available resourceproviders, it can then choose the resource(s) it needs. However, bothof
these approaches can be quite costly and inefficient, since theygenerate lots of messages, which
proliferate across the network in thecase of a distributed system. To address this problem of
allowingresource providers to publish resources and for resource users to findthese resources in an
efficient and inexpensive manner requires theresolution of the following forces:
 Availability. A resource user should be able to find out on demandwhat resources are available
in its environment.
 Bootstrapping. A resource user should be able to obtain an initialreference to a resource
provider that offers the resource.
 Location independence. A resource user should be able to acquirea resource from a resource
provider independent of the location ofthe resource provider. Similarly, a resource provider
should be ableto provide resources to resource users without having knowledgeof the location
of the resource users.
 Simplicity. The solution should not burden a resource user whenfinding resources. Similarly, the
solution should not burden aresource provider providing the resources.
Provide a lookup service that allows resource providers to makeresources available to resource users.
The resource provideradvertises resources via the lookup service along with properties that
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Describe the resources that the resource providers provide. Allowresource users to first find the
advertised resources using theproperties, then retrieve the resources, and finally use the resources
For resources that need to be acquired before they can be used, theresource providers register
references to themselves together withproperties that describe the resources that the resource
providersprovide. Allow resource users to retrieve these registered referencesfrom the resource
providers and use them to acquire the availableresources from the referenced resource providers.
For resources, such as concurrently reusable services, that do notneed to be first acquired and can
instead be accessed directly, theresource providers register references to the resources together
withproperties that describe the resources. Allow resource users todirectly access the resources
without first interacting with theresource providers.
The lookup service serves as a central point of communicationbetween resource users and resource
providers. It allows resourceusers to access resource providers when resources need to beexplicitly
acquired from the resource providers. In addition, thelookup service allows resource users to directly
access resources thatdo not need to be acquired from resource providers. In both cases, theresource
users need not know about the location of the resourceproviders. Similarly, the resource providers
don’t need to know thelocation of the resource users that want to acquire and access theresources
that they provide.
The following participants form the structure of the Lookup pattern:
 A resource user uses a resource.
 A resource is an entity such as a service that provides some type offunctionality.
 A resource provider offers resources and advertises them via thelookup service.
 A lookup service provides the capability for resource providers toadvertise resources via
references to themselves, and for resourceusers to find these references.
The following class diagram illustrates the structure of the Lookuppattern.
What is strategic HRM?
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Strategic HRM is developed through three steps:
1. Decide on the strategic goals
2. Identify employee skills and behaviors necessary for success
3. Formulate HR management policies and practices that will produce these
required skills
 The Strategic Management Process begins by developing a strategic plan that describes how
internal strengths and weaknesses will be matched with external opportunities and threats
Steps in Strategic Management
Step 1: Define the current business
Begin by asking these questions:
– What products do we sell?
– Where do we sell these products?
– How do our products or services differ from our competitors?
Step 2: Perform External and Internal Situational Audits
• The key to success is adaptation
• Situational audits require SWOT (strengths, weaknesses, opportunities, and threats) analysis
Step 3: Formulate a New Business Direction
• What should our new business be in terms of product, placement and competitive advantage?
• The vision statement describes the following:
What do we want to become?
• The mission statement explains the following:
Where are we now?
Step 4: Translate the Mission into Strategic Goals
• Operationalize the mission for managers
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• What does the mission mean to each department?
• What goals follow implementation?
Step 5: Formulate Strategies to Achieve the Strategic Goals
• What is the game plan?
• Decide on a course of action
– Best strategies are concise
– Easily communicated
Step 6: Implement the Strategies
• Get the game plan going
• Do what needs to be done
– Hire or fire people
– Build or close plants
– Adding or eliminating products and product lines
Step 7: Evaluate Performance
• Evaluate, evaluate, evaluate
• Ongoing process vis-à-vis strategic control
• Addresses the following questions:
– Are resources being utilized as planned?
– Are inconsistency explained?
– Do changes in our situation suggest change?
1.1. Develop and implement Strategies to ensure that physical resources and services are acquired
Planning and managing resource acquisition
 Resources can be classified as
 human resources,
 physical resources and
 Services.
 Human resource management generally includes the recruitment of people to work in the
organization. This process needs to be undertaken in accordance with the recruitment policies of
the organization in terms of selection and induction.
 The acquisition of resources also needs to comply with the policies and procedures of
yourorganization.
 Using appropriate strategies to determine what resources and services are required, at what time
and effective use of the resources is important for ongoing operation of the business.
If necessary, expand this subsection to lower levels, to accommodate acquisition plans for various
types of resources
The Process of Strategic Management
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• Mission statement
• Environmental analysis
• Organizational self-assessment
• Establishing goals & objectives
Process of Strategic Management
Mission Statement
• Explains purpose & reason for existence
• Usually very broad
• No more than a couple of sentences
• Serves as foundation for everything organization does
Solectron Mission Statement
“Our mission is to provide worldwide responsiveness to our customers by offering the highest quality,
lowest total cost, customized, integrated, design, supply-chain and manufacturing solutions through
long-term partnerships based on integrity and ethical business practices.”
Analysis of Environment
• Critical components of external environment
– Competition
– Industry structure
– Government regulations
– Technology
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– Market trends
– Economic tends
Organization Self-Assessment
• Identify primary strengths & weaknesses
• Find ways to capitalize on strengths
• Find ways to improve or minimize weaknesses
• Examine resources
– Physical
– Human
– Technological
– Capital
• Examine internal management systems
– Culture
– Organization structure
– Power dynamics & policy
– Decision-making processes
– Past strategy & performance
– Work systems
Establishing Goals & Objectives
• Goals& Objectives should be: SMART
LO3: Monitor and review operational performance
1.1. Develop, monitor and review Performance systems and processes
PREPARING A PERFORMANCE MONITORING PLAN
 Monitoring the implementation of the operational plan:
Specific process indicators will be developed to monitor and track progress of implementation
of activities and tasks in the operational plan. Quarterly monitoring reports will be reviewed by
stakeholders at the district, provincial and national level.
Changes will be done to the plan as per lessons learned and best practices. An annual work plan
will be developed each year using the operational plan as the framework for activities and
tasks.
It is proposed to implement decentralized planning, starting at district level, and ensuring
integration, thereafter, collating all district plans to provincial (regional)level and then final
collation at national level.
What Is a Performance Monitoring Plan?
 A performance monitoring plan (PMP) is a tool operating units use toplan and manage the
collection of performance data. Sometimes the plan alsoincludes plans for data analysis, reporting,
and use.
 Reengineering guidance requires operating units to prepare PMPs once theirstrategic plans are
approved. At a minimum, PMPs should include:
 a detailed definition of each performance indicator
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 the source, method, frequency and schedule of data collection, and
 the office, team, or individual responsible for ensuring data areavailable on schedule
As part of the PMP process, it is also advisable (but not mandated) foroperating units to plan for:
 how the performance data will be analyzed, and
 how it will be reported, reviewed, and used to inform decisions
Why Are PMPs Important?
 A performance monitoring plan (PMP)is a critical tool for planning, managing, anddocumenting
data collection. It contributes to the effectiveness of theperformance monitoring system by
assuring that comparable data will becollected on a regular and timely basis. These are essential to
the operation of acredible and useful performance-based management approach.
 PMPs promote the collection of comparable data by sufficiently documentingindicator definitions,
sources, and methods of data collection. This enablesoperating units to collect comparable data
over time even when key personnelchange.
 PMPs support timely collection of data by documenting the frequency andschedule of data
collection as well as by assigning responsibilities. Operatingunits should also consider developing
plans for data analysis, reporting, andreview efforts as part of the PMP process.
Benefits of Performance Management
There are 6 key benefits of Performance Management in any organization
1. Greater Understanding of Performance
 Process encourages managers to review data to assess performance, which enables the business to
better understand major variances against plan, and uncover operational issues.
 Performance reports become the “one version of the truth” and are an historical repository of the
business’s performance.
2. Enables Improvement
 Management can understand where actual performance sits relative to performance targets and
budget so that actions can be put in place to recover performance, if appropriate.
 Monitoring actual performance provides the baseline for measuring improvements.
 Allows the success of actions already in-place to be measured on a regular basis.
3. Increases Accountability
 Tracking performance against defined metrics allows people to be held accountable for the
performance of areas under their responsibility.
 Operational performance can be linked to incentives and rewards.
 Individual performance reviews can be linked to operational performance indicators and results
4. Instills a Performance Culture
 Reviewing performance regularly instills a performance improvement culture.
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 Monitoring performance removes “silos” –sites and specialities are more aware of the impact they
have on overall performance.
 Allows comparisons across business units, highlighting quality issues and/or inefficiencies, or high
performance which should be replicated in other areas.
5. Focus on theproduction
 The strategic intent of the organization is the focus of the performance management framework.
 Key performance metrics are aligned with outcomes achieved for the production
 Performance improvement initiatives are designed to improve the patient journey and the
outcomes achieved.
6. Delivering Quality product
 Safety and quality indicators are included in the performance management framework to monitor
and assess the organization’s performance.
 Safety and quality indicators are aligned and reported at all levels within the organization.
Program Performance Indicators
 To justify funding for a program, it is necessary to demonstrate and document the effectiveness,
efficiency, and excellence of the program.
 Performance indicators are the tools used to measure performance, progress, and
accomplishments. They are reported in the operational plan and other budget forms.
 Performance indicators consist of two parts:
 Indicator name and
 Indicator value.
 The indicator name describes what you are measuring. The indicator value is the numeric
amount or level actually achieved or to be achieved.
Types of Performance Indicators
 Louisiana's management processes use five types of indicators to measure performance:





Input,
output,
outcome,
efficiency, and
Quality.
 These indicators are based on systems logic (how a process works) and each type is designed to
answer different questions. Together, these indicators provide a balanced view of performance.
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 Input indicators measure resource allocation and demand for services. They identify the amount
of resources needed to provide a particular service.
 Inputs include labor, materials, equipment, facilities, and supplies. They also can represent
demand factors such as characteristics of target populations.
 Input indicators are useful in showing the demand for a service, the total cost of providing a
service, the mix of resources used to provide a service, and the amount of resources used for one
service in relation to other services.
 Input indicators are often paired with output and outcome indicators to develop an
input/output comparison.
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 Output indicators measure quantity. They measure the amount of products or services provided
or number of customers served. Output indicators are volume-driven. They focus on the level of
activity in providing a particular program.
 Output indicators are useful for resource allocation decisions (particularly for calculation and
justification of workload adjustments in operating budget requests). However, they are limited
because they do not indicate whether program goals and objectives have been accomplished; nor
do they reveal anything about the quality or efficiency of the service provided.
 Outcome indicators measure success. They measure results and assess program impact and
effectiveness.
 Outcome indicators are the most important performance measures because they show whether
or not expected results are being achieved. Policy makers are generally most interested in
outcome indicators.
 Efficiency indicators measure productivity and cost-effectiveness. They reflect the cost of
providing services or achieving results.
 Cost can be expressed in terms of dollars or time per unit of output (or outcome). Efficiency
measures can also portray (represent) the relationship of inputs to outputs (or outcomes).
 Ratios are often used to express these relationships. Efficiency indicators can gauge the
timeliness of services provided.
 Efficiency measures are important for management and evaluation. They help organizations
improve service delivery. Often they are used to justify equipment acquisitions or changes to
systems or processes.
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Performance Standard
 Performance standard is the expected level of performance associated with a particular
performance indicator for a particular fiscal year and funding level.
 Performance standards are proposed during the budget development process and established
during the appropriation process. Performance standards are commitments for service; they
identify the level of performance linked with the level of funding budgeted/appropriated.
Purpose of monitoring
• To document progress and results of project
• To provide the necessary information to Management for timely decision taking and corrective
action (if necessary)
• To promoteaccountability to all stakeholders of a project (to beneficiaries, donors, etc)
Information collected for monitoringmust be:
• Useful and relevant
• Accurate
• Regular
• Acted upon
• Shared
• Timely
Monitoring is an implicit (imbedded) part of an evaluation.
It is often done badly:
– Routine data collection not done routinely!
– Data collection done poorly
– Information not processed/used in a timely manner
– Focus only on process indicators and neglecting (lack of) preliminary impact
Monitoring
• Monitoring compares intentions with results
• It guides project revisions, verifies targeting criteria and whether assistance is reaching the
people intended.
• It checks the relevance of the project to the needs.
• It integrates and responds to community feedback
• It enhances transparency and accountability
Performance Standards
 Qualitative;
 Quantitative;
 Benchmark (In line with Customer expectations).
 No. of damaged packages;
 No. of lost packages;
 Missed pickups;
 Aircraft delays;
 Reopened complaints (complaints not solved first time);
 Wrong day late deliveries;
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 Right day wrong delivery;
 Abandoned calls;
 Invoice adjustment requests;
 Missing proof of deliveries
 Evaluation:The aim is to determine relevance and fulfilment ofobjectives, as well as efficiency,
effectiveness, impactand sustainability of a project.
Performance Metrics
1. Performance metrics based on Earned Value Analysis (EVA)
2. Other performance indices
Project Progress Performance on basis of EVA – Some useful metrics
 Resource Flow Variance (RV)
 Resource Flow Index (RI)
 Cost Variance (CV)
 Cost Index (CI)
 Schedule Variance (SV)
 Schedule Index (SI)
 Time Variance (TV)
Resource Flow Variance (RV)
Definition: A progress performance metric that compares how much weexpect to spend during a given
time-frame with what we actually spent (regardless of how much work got done!)
Computation: RVt = BCWSt – ACWPt
Interpretation: If RVt is +ve, we are experiencing under run
If RVt is –ve, we are experiencing overrun
If RVt is 0 or close, we are on target
Where: BCWSt -Budgeted Cost of Work Scheduled or programmed ($): the value of work scheduled to
be accomplished in a given period of time
ACWPt -Actual Cost of Work Performed ($): the costs actually incurred in accomplishing the
work performed within the control time
Resource Flow Variance (RV)
Definition: A progress performance metric that compares how much weexpect to spend during a given
time-frame with what we actually spent (regardless of how much work got done!)
Computation: RVt = BCWSt – ACWPt
Interpretation: If RVt is +ve, we are experiencing underrun
If RVt is –ve, we are experiencing overrrun
If RVt is 0 or close, we are on target
Where: BCWSt -Budgeted Cost of Work Scheduled or programmed ($): the value of work scheduled to
be accomplished in a given period of time
ACWPt - Actual Cost of Work Performed ($): the costs actually incurred in accomplishing the
work performed within the control time
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Cost Variance (CV)
Definition: A progress performance metric that …
compares the budgeted value of work done vs. the actual value of work done.
Computation: CVt = BCWPt – ACWPt
= Earned Value (EVt) – Actual Value (AVt)
Interpretation: If CVt is +ve, underrun or gain of value
If CVt is –ve, overrrun, or loss of value
If CVt is 0 or close, we are on budget
Where: BCWSt -Budgeted Cost of Work Scheduled or programmed ($): the value of work scheduled to
be accomplished in a given period of time
ACWPt - Actual Cost of Work Performed ($): the costs actually incurred in accomplishing the
work performed within the control time
Cost Index (CI)
Definition: Same as that for Cost Variance, but involves a ratio instead of a difference.
Computation: CIt = BCWPt/ACWPt
= Earned value (EVt)/Actual Value (AVt)
Interpretation: If CIt>1,underrun or gain of value
If CIt<1, overrrun, or loss of value
If CIt = 1, we are right on budget
Where: BCWSt -Budgeted Cost of Work Scheduled or programmed ($): the value of work scheduled to
be accomplished in a given period of time
ACWPt - Actual Cost of Work Performed ($): the costs actually incurred in accomplishing the work
performed within the control time
Schedule Variance (SV)
Definition: A progress performance metric that compares the budgeted value of work done vs. the
earned value of work done.
Computation: SVt = BCWPt – BCWSt
= Earned Value (EVt) – Budgeted Value (BVt)
Interpretation: If SVt is +ve, project is ahead or has gained time
If SVt is –ve, project is behind or has lost time
If SVt is 0 or close, project is on schedule
Where: BCWSt -Budgeted Cost of Work Scheduled or programmed ($): the value of work scheduled to
be accomplished in a given period of time
ACWPt - Actual Cost of Work Performed ($): the costs actually incurred in accomplishing the
work performed within the control time
Schedule Index (SI)
Definition: Same as that for Schedule Variance,
but involves a ratio instead of a difference.
Computation: SIt = BCWPt / BCWSt
= Earned Value (EVt)/Budgeted Value (BVt)
Interpretation: If SIt> 1, project is ahead or has gained time
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If SIt< 1, project is behind or has lost time
If SIt = 1, project is on schedule
Where: BCWSt -Budgeted Cost of Work Scheduled or programmed ($): the value of work scheduled to
be accomplished in a given period of time
ACWPt - Actual Cost of Work Performed ($): the costs actually incurred in accomplishing the
work performed within the control time
Time Variance or Duration Variance (TV)
Definition: A progress performance metric that assesses whether the project is spending more time (or
less time) for an activity compares the scheduled duration (ST) of work performed vs. the actual
duration (AT) of work performed.
Computation: TVt = STWPt – ATWSt
Interpretation: If TVt is +ve, project is ahead or has gained time
If TVt is –ve, project is behind or has lost time
If TVt is 0 or close, project is on schedule
Where: scheduled duration (ST) of work performed
Actual duration (AT) of work performed
Time Index (TI)
Definition: Same as that for Time Variance but involves a ratio rather than a difference.
Computation: TIt = STWPt /ATWSt
Interpretation: If TIt is +ve, project is ahead or has gained time
If TIt is –ve, project is behind or has lost time
If TIt is 0 or close, project is on schedule
Where: scheduled duration (ST) of work performed
Actual duration (AT) of work performed
1.2. Analyze and interpret Budget and actual financial information to monitor and review profit
and productivity performance
For effective monitoring, these should be the characteristics of your budget:
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1.3. Identify Areas of under -performance and take solutions recommended
10 Keys to Delivering Performance Reviews
Schedule Sufficient Time in a Private Setting
 Schedule enough time to discuss the formal review and answer your direct report’s questions.
All performance feedback should be conducted in a private, one-on-one setting without any
interruptions
Rehearse the Conversation Prior to the Meeting
 Rehearse the conversation for a meaningful discussion, particularly for delivering development
feedback. In addition, rehearsing helps ensure that you are confident and professional throughout,
and do not appear to be anxious.
Provide the Employee with Performance Review Documentation
 Offer a copy of the notes and online formal downward review to the employee and allow a few
minutes to read the document before starting the conversation.
Begin with Strengths and Then Discuss Development Areas
 Emphasis on strengths in formal reviews has the greatest potential impact (36%) on employee
performance; consequently, managers should initiate the feedback with strengths, followed by
development opportunities.
Focus Development Areas on Employee Behaviors, Not Personality Traits
 Focus on the employee’s behaviors, not his/her personality, while delivering development
feedback. Emphasizing weaknesses can actually damage performance by 27%.
Provide Examples to Substantiate the Review
 Validate your perspective with tangible examples. Focus on consistent behaviors and frequent
incidents, rather than one-off examples of good or bad behavior.
Provide Suggestions for Performance Improvement
 Accompany negative feedback with suggestions for doing the job better. Constructive comments
on development and specific suggestions for improvement are clearly very valuable and have a
potential impact of approximately 7% on performance.
Use Clear and Simple Words During the Discussion
 Maintain a structured flow during the conversation and cover one topic at a time to ensure
clarity. Include a short introduction, and avoid using jargon/obscure words to describe
strengths and development areas. (For a checklist of detailed dos and don’ts, refer to the tearout on the next page.)
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Solicit the Employee’s Questions or Comments
 Give the employee a few minutes to reflect on the feedback once you have delivered the
review, and ask for questions or thoughts. (For more information on addressing employee
reactions, refer to CLC’s guide on Managing Employee Reactions to Feedback.)
End on a Positive Note and Discuss Next Steps
 End the discussion on a positive note with a summary of the performance review. Schedule
follow-up meetings to build the individual development plan (IDP) and monitor progress.
1.4.
Plan and implement Systems to ensure that mentoring and coaching
 Either for monitoring or evaluation data must be collected to collect the data there must be plan
for data collection and the plan must implemented accordingly.
Examples of data collection methods
for M&E
Quantitative Methods
Administering structured oral or written
interviews with closed questions
Qualitative methods
Semi structured interviews e.g. key
informant
Population based surveys
Focus group discussion
Reviewing medical and financial records
Observing
Completing forms and tally sheets
Case studies
Direct measurement (anthropometry,
biochemical analysis, clinical signs)
Mapping, ranking, scoring
Lot quality assessment
Problem sorting, ranking
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Monitoring & Evaluation systems
•
Main components of M&E systems:
– M&E work plan for data collection and analysis, covering baseline, on-going M&E
– Logical framework, including indicators and means/source of verification
– Reporting flows and formats
– Feedback and review plan
– Capacity building design
– Implementation schedule
– Human resources and budget
Evaluation
It aims to
–
Improve policy and practice
–
Enhance accountability
Evaluations are done when / because
– Monitoring highlights unexpected results
– More information is needed for decision making
– Implementation problems or unmet needs are identified
– Issues of sustainability, cost effectiveness or relevance arise
– Recommendations for actions to improve performance are needed
– Lessons learningare necessary for future activities
•
Evaluation involves the same skills as assessment and analysis
•
Evaluation should be done impartially and ideally by externalstaff
•
Evaluation can also occur during (e.g. mid-term) and after implementation of the project
One of the most important sources of information for evaluations is data used for monitoring
Indicators
•
An indicator is a measure that is used to show change in a situation, or the progress in/results
of an activity, project, or programme.
What are the Qualities of a Good Indicator?
•
Specific
•
Measurable
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• Achievable
•
Relevant
•
Time-bound
Types of indicators
Indicators exist in many different forms:
 Direct indicators correspond precisely to results at
any performance level.
Direct
Indirect /
proxy
Qualitativ
e
Quantitativ
e
Global /
standardised
Locally
developed
1.5.
 Indirect or "proxy" indicators demonstrate the
change or results if direct measures are not feasible.
 Indicators are usually quantitative measures,
expressed as percentage or share, as a rate, etc.
 Indicators may also be qualitative observations.
 Standardised global indicators are
comparable in all settings.
 Other indicators tend to be context specific
and must be developed locally.
Negotiate and approve recommendations for variations to operational plans
 Recommendations for variations to operational plans are negotiated and approved by designated
persons/groups
 M&E in emergency?
YES
Any project without Monitoring and/or Evaluation is BAD project
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