GROUP 8 LOCATION, FACILITIES, AND CAPACITY PLANNING; AND LAYOUT STRATEGY

Location Planning
● The location of a business unit affects the costs, selling price, and demand of the
product.

I. Factors that Influence Location Planning

A. Raw Materials
- For Manufacturing Companies, raw materials inventory requires detailed
budgeting and special frameworks. Examples of raw materials are steel,
lumber, plastic, coal, and minerals.
B. Proximity to Market
- Ability of providers to stay close to customers as to be in a position to
accurately read and analyze customer needs and respond to it quickly.
C. Climate
- A region’s position determines its fundamental climate.
D. Culture
- A strategy that positions the brand as symbolic of a specific foreign
consumer culture

II. Need for Location Decisions

A. Marketing Strategy
- Involves defining a brand's unique position in the minds of consumers
based on its geographic location.
B. Cost Doing Business
- Cost will reduce profits and a location directly impacts the business
especially if it includes transportation costs
C. Growth
- The growth of the company is one of the factor for the need to find a more
suitable location
D. Depletion of Resources
- Limited resources in a specific location will affect the growth of the
company

III. Nature of Location Decisions

A. Strategic Importance
- Long term commitment / cost
- Impact on investment, revenues, and operations
- Supply chains
B. Objectives
- Profit potential
- No single location may be better than others
- Identify several locations from which is more suitable to choose
C. Options
- Expand existing facilities
- Add new facilities
- Move to a new facility

IV. Location Evaluation Methods

A. Transportation Model
- Decisions are based on the movement costs of raw materials or finished
goods.
B. Factor Rating
- Decisions are based on quantitative and qualitative inputs
 C. Center of Gravity Model
- Decisions are based on minimum distribution of costs.

Facility Planning
● Buildings where people, material, and machine come together for a stated purpose,
typically to make a tangible product or provides service.

I. Facility Planning Objectives

1. Support the organization’s mission through improved material handling, materials
control and good housekeeping.
2. Effectively utilize people, equipment, space, and energy.
3. Minimize capital investments.
4. Be flexible and promote ease of maintenance.
5. Provide for employees’ safety and job satisfaction.

II. Engineering Design Process

- Series of steps that guide engineering team as they solve the problems. The
design process is iterative which means that it repeats the steps as many times
as needed, making improvements to arrive at greater solutions.

III. Procedure for Solving Engineering Design Problems

1. Formulate or identify the problem
2. Analyze the problem
3. Search for alternative solutions.
4. Select preferred design
5. Implement the design

IV. Application of the Engineering Design Process to Facility Planning

1. Define the objective of the facility
2. Specify the primary and support activities to be performed in accomplishing
objective.
3. Determine the interrelationship among all activities
4. Determine space requirement
5. Generate alternative facility plan.
6. Evaluate alternative facility plans
7. Select a facility plan
8. Implement the facility plan.
9. Maintain and adapt the facility plan.
10. Redefine the objective of the facility.

V. Important Factors to Evaluate Facility Plans

A. Layout Characteristics
- Total distance traveled
- Manufacturing floor visibility
- Overall aesthetics of the layout
- Ease of adding future business
B. Material handling Requirements
- Use of the current material handling equipment
- Investment requirements on new equipment
- Space and people requirement
C. Unit Load Implied
- Impact on Work-in-Progress levels
- Space Requirements
- Impact of material handling equipment
 D. Storage Strategies
- Space and people requirements
- Impact on material handling equipment
- Human factor risks
E. Overall building Impact
- Estimated cost of alternatives
- Opportunities for business

Capacity Planning
● Capacity - specific ability of an entity measured in quantity and level of quality over an
extended period of time.
● Capacity Planning - process of determining the amount of capacity required to meet
market demand for products and services.

I. Capacity Planning Strategies

A. Lead Strategy
- Most aggressive approach
- Company increases its production capacity in advance of anticipated
increase in demand.
- It is riskier compare to the other strategies
B. Lag Strategy
- It is much more conservative than the lead strategy.
- Responds to actual increase in demand.
C. Match Strategy
- Emphasizes small incremental modification to capacity based on
changing conditions.
- It is risk-averse however it takes more effort and is harder to accomplish

II. Measurement of Capacity Planning

A. Design Capacity
- Planned or engineered rate of output of goods or services under normal
or full scale operating conditions.
B. System Capacity
- Maximum output of the specific product or mix of products that the
workers and machines are capable of producing as an integrated whole.

III. Process of Capacity Planning

- Capacity Planning is concerned with defining the long-term and short-term
capacity needs of an organization and determining how those needs will be
satisfied. Decisions are taken based upon the consumer deman and is merged
with the human, material, and financial resources of the organization.

1. Short-term Capacity Strategy

- concerns on issues of scheduling, labor shifts, and balancing resource
capacities. The goal of this is to handle unexpected shifts in demand in an
efficient economic manner.
2. Long-term Capacity Strategy
- mainly concerned with accommodating major changes that affect the
overall level of the output and is more difficult to determine due to
uncertainty in future demands and technology.

IV. Short-Term Strategies are:

1. Inventories - stock of finished goods during periods to meet the demands during
peak periods.
 2. Backlog - build-up work that needs to be accomplished
3. Employment Level - hiring and firing of employees
4. Employee Training - develop multi-skilled employees through training.
5. Subcontracting - practice of outsourcing, the process of entering a contractual
agreement with an outsider
6. Process Design - act of transforming an organization’s vision, mission, and goals
into measurable outputs.

V. Parameters that Affect the Long Range Capacity Decisions

1. Multiple Products
- Companies produce more than one products using the same facilities in
order to increase profit.
2. Phasing in Capacity
- In high technology industries or companies, the product should be
brought in the market fast if the product is reliant on its phase.
3. Phasing out Capacity
- Phasing out should be done in humanistic way without affecting the
community.

Layout Strategy
● Layout strategy is the process of designing the physical arrangement of resources within
a facility to optimize efficiency, productivity, and overall performance.
● The goal is to create a layout that minimizes costs, maximizes output, and improves the
quality of work life

I. Objective of the Layout Strategy

1. Develop an economic layout that meets the firm's competitive requirements
2. Improve the flow of information, materials, or people
3. Enhance employee morale and safety.
4. Improve customer/client interaction.
5. Increase flexibility

II. Types of Layout

1. Office Layout
- The grouping of workers, their equipment, and spaces/offices to provide
for comfort, safety, and movement of information.
- The layout is typically in state of flux due to frequent technological
changes.
2. Retail Layout
- An approach that addresses flow, allocates space, and responds to
customer behavior.
- These layouts are based on the idea that sales and profitability vary
directly with customer exposure to products.
3. Warehouse Layout
- A design that attempts to minimize total cost by addressing tradeoffs
between space and material handling.
- Material handling costs are all costs related to the transaction.
4. Fixed-Position Layout
- Addresses the layout requirements of stationary projects
5. Process-Oriented Layout
- A layout that deals with low volume, high variety production; like
machines and equipment are grouped together
6. Product-Oriented Layout
- Arranges resources in a linear sequence to facilitate the production of a
 specific product or product family.
7. Cellular Layout
- Groups machines and workers into cells to produce a family of products,
improving efficiency and quality

III. Layout Design Considerations

1. Space Utilization
2. Material Handling
3. Worker Efficiency
4. Safety
5. Customer Satisfaction
6. Flexibility

IV. Layout Design Tools and Techniques

1. Relationship Charts
- Visualizing the relationship between departments or workstations.
2. Activity Charts
- Analyzing the movement of workers and materials
3. Flow Process Charts
- Identifying and eliminating waste in processes.
4. Computer-Aided Design (CAD)
- Creating detailed layouts and simulations
5. Simulation
- Modeling and analyzing different layout configurations to evaluate
performance
GROUP 9: MATERIAL AND INVENTORY MANAGEMENT

MATERIAL MANAGEMENT
- Is a critical function that involves planning, procuring, storing, and handling construction
materials to ensure a smooth workflow and achieve project milestones on time and
within budget.

Effective Material Management Poor Material Management

1. Right materials available at the right time, 1. Delays,
2. Reduced costs, 2. Increased costs, and
3. Minimized wastes 3. Poor quality

KEY COMPONENTS OF MATERIAL MANAGEMENT

1. Material Planning and Estimation

- Involves forecasting and estimating the materials required for the project.
Accurate estimation prevents under-ordering or over-ordering, which can lead to
delays or excess costs.

2. Procurement
- Involves sourcing and purchasing the materials. It requires coordination with
suppliers, negotiation of prices, and ensuring quality compliance.

3. Storage Management
- Materials need proper storage to maintain quality and prevent damage. It
ensures materials are available when needed without holding excessive stock.
Techniques like FIFO (First In, First Out) and JIT (Just In Time) are commonly
used to manage inventory.

4. Material Handling
- Proper handling of materials, especially those that are fragile or hazardous, is
necessary to prevent damages. This involves moving materials from storage to
the construction site, ensuring minimal damage during transit.

5. Waste Management
- Construction projects produce significant waste, often due to poor handling,
breakage or excess-ordering. A sound material management system includes
practices to reduce, reuse, and recycle materials, reducing environmental impact
and saving costs.

GOALS AND OBJECTIVES OF MATERIAL MANAGEMENT

- Ensuring Material Availability: timely availability of materials to avoid delays

- Cost Control: reducing material costs through bulk procurement practices
- Waste Reduction: minimizing material waste to lower costs and reduce environmental
impact
- Quality Assurance: ensuring materials meet project specifications and quality
standards
- Efficient Storage and Handling: minimizing storage costs and handling losses by
organizing material storage efficiently

LIMITATIONS IN MATERIAL MANAGEMENT

1. Supply Chain Issues

 - Delays from suppliers leads to schedule disruptions and shortage of materials
2. Costs Fluctuations
- Prices for construction materials can be volatile, making budgeting challenging
3. Space Constraints
- Limited space on construction sites can complicate material handling
4. Weather Conditions
- Weather can damage materials stored on-site, especially if not properly covered
or stored

IMPORTANCE OF MATERIAL MANAGEMENT IN CONSTRUCTION

1. Increased Efficiency
- By accurately forecasting and controlling material costs, construction projects can
significantly reduce expenditure, delays, minimizes rework, and improves the
overall workflow on the construction site

2. Timely Project Completion

- Ensuring timely material availability prevents project delays

3. Quality Control
- Properly managed materials maintain quality standards, which is essential for
project durability and structural integrity

4. Environmental Impact
- Reducing material waste and recycling minimizes the environmental footprint of
construction projects

5. Safety and Organization

- Organized storage and handling contribute to a safer worksite and better project
organization

BEST PRACTICES FOR EFFECTIVE MATERIAL MANAGEMENT

1. Detailed Planning: develop a comprehensive materials plan based on project

requirements, timeline, and budget
2. Supplier Relationship Management: Establish strong relationships with reliable
suppliers to ensure quality and timely deliveries
3. Use of Technology: employ management softwares for inventory tracking, supplier
management, and forecasting demand
4. Staff Training: equip the team with knowledge on handling and storing materials
properly
5. Lean Practices: adopt lean management principles, such as Just-in-Time (JIT), to
reduce material waste

INVENTORY MANAGEMENT
- Refers to the process of ordering, storing, using, and selling a company’s inventory. This
includes raw materials, components, and finished products, as well as the warehousing
and processing of these items

Key Takeaways
- Inventory management is the entire process of managing inventories from raw materials
to finished products
 - Inventory management tries to efficiently streamline inventories to avoid both gluts and
shortages
- Four major inventory management methods include just-in-time management (JIT),
materials requirement planning (MRP), economic order quantity (EOQ), and days
sales of inventory (DSI)
- There are pros and cons to each of the methods

BENEFITS OF INVENTORY MANAGEMENT

- Asset and Risk Balance: inventory is a valuable asset in sectors like retail and
manufacturing but also carries risks, such as spoilage, theft, and demand changes

- Efficiency and Cost Savings: effective inventory management ensures products are
available when needed, reducing costs related to excess stock and disposal.

- Tools and Technologies: small businesses may use spreadsheets, while larger
companies rely on ERP systems or AI-driven software to optimize stock levels.

- Industry-Specific Needs: different industries have unique storage and demand

patterns. For instance, oil can be stored long-term, while perishable goods need precise
timing to avoid losses.

ACCOUNTING FOR INVENTORY

Inventory is classified as a current asset in accounting because companies typically plan to sell
finished goods within a year. Before being listed on the balance sheet, inventory must be
physically counted or measured. Many businesses use advanced inventory management
systems to track stock levels in real-time.

Inventory can be accounted for in several ways: first-in-first-out (FIFO) costing;

last-in-first-out (LIFO) counting; or weighted-average costing. An inventory account typically
consists of four separate categories:

1. Raw materials represent the various materials a company purchases for its production
process. These materials must undergo significant work for a company to transform
them into a finished good ready for sale.
2. Work in progress (also known as goods-in-process) represents raw materials in the
process of being transformed into a finished product
3. Finished goods are completed products readily available for sale to a company’s
customers
4. Merchandise represents finished goods a company buys from a supplier for a future
resale

INVENTORY MANAGEMENT METHODS

1. Just-in-Time Management (JIT)

- The Just-in-Time (JIT) inventory model, developed in Japan in the 1960s and
1970s and popularized by Toyota, allows companies to minimize waste and costs
by holding only the inventory needed for immediate production and sales. This
approach reduces storage, insurance, and disposal expenses. However, JIT can
be risky - unexpected demand spikes or delays in supply can lead to bottlenecks,
unmet customer expectations, and potential loss of business to competitors

2. Materials Requirement Planning (MRP)

 - Depends on sales forecasts, where manufacturers use past sales data to predict
inventory needs and coordinate timely orders with suppliers. For instance, a ski
manufacturer may stock materials like plastic and wood based on forecast
demand. Inaccurate forecasting, however, can lead to stock shortages and
unfulfilled orders.

3. Economic Order Quantity (EOQ)

- The Economic Order Quantity (EOQ) model helps companies determine the ideal
batch size to add to inventory, minimizing total inventory costs under the
assumption of constant demand. It balances holding costs and setup costs,
aiming to avoid frequent orders and excess inventory, ultimately reducing both
costs to the lowest possible level.

4. Days Sales of Inventory (DSI)

- A financial ratio that shows the average number of days it takes a company to
convert its inventory, including work-in-progress items, into sales. Also called
days inventory outstanding or days in inventory, DSI indicates inventory liquidity
by estimating how long a company’s current stock will last. Typically, a lower DSI
is preferable, as it suggests faster inventory turnover, although the average DSI
varies by industry.

Inventory Management Red Flags

- Frequent changes in inventory accounting methods may indicate that management is
attempting to make the company’s financial position appear stronger than it is. Regular
inventory write-offs can signal challenges in selling goods or issues with inventory
becoming obsolete, raising concerns about the company’s competitiveness and its ability
to produce market-relevant products.

The Bottom Line

- Inventory management is a crucial part of business operations. Proper inventory
management depends on the type of business and the products it sells. There may not
be one perfect type of inventory management because there are pros and cons for each.
But taking advantage of the most appropriate type of inventory management can go a
long way toward ensuring a company’s success.
GROUP 10: DESIGNING WORK STANDARDS AND MANPOWER PLANNING

WORK STANDARD
- standardized work (also called standard work) refers to the process of analyzing and
finding the current best practices for performing tasks and processes.
- a clear set of instructions, they make it easy for a process to be done consistently,
timely, and in a repeatable manner
- The purpose of work standards is to document processes that will consistently
deliver a level of quality that a team needs. Teams create work standards to make sure
everyone is completing the process the same way every time.

WHY DOCUMENT THE PROCESSES INTO WORK STANDARDS?

- It acts as a roadmap for your business, when you are creating new processes or want
to improve existing processes, process documentation acts as a best practice guide for
how to build and execute them.

HOW TO CREATE A WORK STANDARD?

- Work standards are usually created at the end of improvement work. Improvement
involves team working to understand a problem, identifying areas for improvement, then
conducting Plan-Do-Study-Act cycles to improve the process. It is important to have a
stable and reliable process in place before moving onto the next step of creating a work
standard.

STEPS IN CREATING WORK STANDARD: (“ALWAYS GIVE FRESH DOUGHNUTS, PLEASE

REPORT” )
● Step 1: Analyze current operations
- Observe and gather data on how the work is currently being performed. Perform
an as-is process analysis and create a visual process diagram that documents
the current workflow.
- An As-is Process Flow is a process management strategy that documents how
business processes are currently implemented. Studying your current state helps
organizations document, track, and optimize processes for better performance,
greater efficiency, and improved outcomes
● Step 2: Get input when looking for best practices
- Many employees have their own way of doing things, which leads to variations in
the final output.
- Collaborating with the operators and listening to their ideas encourages buy-in to
proposed changes.
● Step 3: Find the current best practice
- These common practices can be the basis for defining the current best practice.
Look for ways to combine tasks to make the process more efficient.
 - Create a value stream map to visualize and analyze the steps that employees
currently take for each task in the production process
- VALUE STREAM MAP
● tool used to improve flow of materials and information.
● identifies both value adding activities and non-value-adding activities
● Step 4: Document everything
- When you have identified and defined the current best-known practice, document
it.
- There are several different ways to document your standardized work and a
commonly used way is visuals.
● Step 5: Provide training
- After the processes have been documented, it is important to train everybody on
how to follow them
● Step 6: Rinse and repeat
- A work standard process is a living document that allows for updates.
- Perform a root-cause analysis to figure out solutions to problems that come up.
- Root cause analysis refers to any problem-solving method used to trace an
issue back to its origin. You’ll discover what happened, how it happened, why it
happened, and what steps are needed to prevent similar issues.

MANPOWER PLANNING
- known as human resources planning.
- is a continuous process of systematic planning ahead to achieve optimum use of an
organization ' s most valuable asset—quality employees
- it enables management to have the right kinds of employees in the right number in the
right place at the right time

WHAT IS "HARD" VS. "SOFT" HUMAN RESOURCE PLANNING?

● Hard HRP - treats employees as resources that need to be managed efficiently. It
focuses on quantitative metrics like staffing levels, costs, and productivity.
● Soft HRP - focuses on the human aspects of employees, viewing them as valuable
assets essential for organizational success.It emphasizes employee development,
engagement, and well-being.
APPROACHES FOR DEVELOPING MANPOWER PLANNING

1. Planning for the Status Quo: involves preparing for changes in personnel, such as
promotions or departures, to ensure that the organization maintains its operational
effectiveness.

Example: Management succession planning is a key aspect of this process. It ensures that
there is always a qualified individual ready to step into a higher-level management role when
needed. This proactive approach helps prevent disruptions in leadership and maintains
continuity within the organization

2. THUMB RULE: refers to established guidelines or ratios that organizations use to predict
future staffing needs based on historical data and operational efficiency.

Examples: A company may use a ratio of one production supervisor for every 12 workers, which
has proven effective in managing workflow.

Another rule might state that one worker can produce 2,000 units per day, leading to the
conclusion that five employees can collectively produce 10,000 units. These rules help
organizations maintain optimal staffing levels and ensure productivity based on past
performance.

3. Markov Analysis (MA): forecasting method that predicts the future value of a variable based
solely on its current state, without considering any past actions or states. This approach utilizes
the concept of a Markov Chain, where the next state depends only on the present state.

4. Unit Forecasting: referred to as the "Bottom Up Approach" aggregates input from

lower-level management to estimate future human resource needs. This method involves
collecting feedback and projections from supervisors and managers regarding staffing
requirements for the upcoming year.

TYPES OF MANPOWER PLANNING

1. Level Based manpower planning
● National Level (Macro Level) : Central government plans for human resources for the
entire nation, it anticipates the demand for supply of human requirements at national
level
● Industrial Level (Micro level) : in this level, planning is done to suit manpower needs of
a particular industry. E.g engineering, heavy industries, paper industries, public utilities,
etc
2. Period based manpower planning
● Short term
○ Prepared for a period of 1 year
 ○ useful at any company
○ These types of plans are made as a part of 5 year plans at national level.
● Medium Term
○ made for 2-5 years
○ prepared as a financial planning at national level
○ for employment opportunities and training development of employees
● Long Term
○ made for 10-15 years
○ estimates manpower needs of nation
○ rises educational and training

MARKET PLANNING, BUSINESS DEVELOPMENT, & FINANCIAL MANAGEMENT

MARKETING PLAN
- Market plan refers to a plan that describes market conditions and strategy related to
how products and services will be distributed, priced and promoted in the market.
- A small business typically creates a one-year marketing plan.
- Larger businesses may develop five-year marketing plans.

5 BASIC ELEMENTS OF A MARKETING PLAN

1. Market Research
- is the process of gathering, analyzing, and interpreting information about a market,
including information about the target customers, competitors, and the industry as a
whole. It helps businesses identify opportunities and threats, enabling informed
decision-making to better meet customer needs and remain competitive.
- Key Components of Market Research:
● Market Size
● Industry Standards
● Market Dynamics/Seasonality
● Competition Analysis
● Product/Service Analysis.
2. Target Market
- Knowing who your customers are is critical to crafting effective marketing messages.
Identifying your target market helps you avoid wasted efforts and ensures your
product/services reaches the most interested audience.
- When identifying your target market look at the following data:
● Age
● Gender
● Language
● Interest
3. Goals
- Setting the right goals will help you to define the most appropriate marketing strategies
and budgets. When setting your marketing goals, you should first consider analyzing the
goals of your business/organization.
- Goal setting should be divided into:
● Business goals - are broad, long-term objectives focused on the growth,
profitability, and sustainability of the company as a whole. They cover areas like
revenue, customer satisfaction, and market expansion.
● Marketing goals - are specific targets aimed at supporting business growth by
reaching and engaging customers. They focus on activities like increasing brand
awareness, generating leads, and boosting sales through targeted campaigns.
4. Marketing Strategy
- A marketing strategy is the plan for promoting your business to achieve its goals. After
researching the market and understanding the target audience, choose tactics that align
best with your objectives.
- Options include:
● Advertising
● Public Relations
● Direct Marketing
● Creative Tactics
5. Budget
- Budgeting is essential to determine the scale and success of your marketing plan.

BUSINESS DEVELOPMENT
- Focuses on creating growth opportunities, forming strategic partnerships, and enhancing
the value proposition.
- This includes identifying new revenue streams, optimizing customer acquisition
processes, and building relationships that drive business success.

ELEMENTS OF BUSINESS DEVELOPMENT

1. Identifying Opportunities and Market Research
- The foundation of business development lies in identifying opportunities for growth. This
involves conducting thorough market research to understand industry trends, customer
needs, and gaps in the market. By leveraging data and insights, businesses can pinpoint
areas with the highest potential for expansion.

2. Building and Maintaining Relationships

- Strong relationships are the cornerstone of business development. This includes
nurturing connections with existing clients, partners, and stakeholders, as well as forging
new relationships. Effective communication and consistent engagement help build trust
and loyalty, which are vital for long-term success.
3. Developing and Implementing Growth Strategies
- A well-defined growth strategy is essential for guiding business development efforts. This
involves setting clear objectives, identifying target markets, and outlining the steps
needed to achieve these goals. Strategies may include expanding product lines, entering
new markets, or enhancing service offerings.
4. Enhancing Brand Reputation and Awareness
- Marketing plays a critical role in business development by enhancing brand reputation
and awareness. This includes creating compelling content, leveraging social media, and
utilizing various marketing channels to reach and engage the target audience. A strong
brand presence helps attract new customers and retain existing ones.
5. Collaboration and Partnerships
- Collaborations and strategic partnerships can significantly boost business development
efforts. By partnering with other businesses, organizations can access new markets,
share resources, and benefit from each other’s strengths. These alliances can lead to
innovative solutions and increased market reach.
6. Continuous Improvement and Adaptation
- The business environment is constantly evolving, and so should your business
development strategies. Regularly reviewing and adjusting your approach based on
market feedback and performance metrics is crucial. This ensures that your strategies
remain relevant and effective in achieving your business goals.

FINANCIAL MANAGEMENT
- Financial Management involves planning, organizing, controlling, and monitoring
financial resources to effectively and sustainably achieve project and business
objectives.
- Financial management is crucial to ensuring projects stay within budget, resources are
optimally allocated, and long-term business growth is supported.

FOUR ELEMENTS OF FINANCIAL MANAGEMENT

● PLANNING - A plan, which is the output of planning, provides a methodical way of
achieving desired results. Without the plan, some minor tasks may be afforded major
attention which may, later on, hinder the accomplishment of objectives. Planning helps
ensure that projects have enough funding from start to finish.
● ORGANIZING AND DIRECTING - Structuring financial resources effectively and
directing them toward achieving goals. This includes allocating funds to various
departments or projects, optimizing resource use, and making sure financial policies are
followed.
● CONTROLLING - Monitoring financial activities to ensure they align with the budget and
plan. This involves tracking expenses, managing cash flow, and adjusting expenses as
needed to keep projects and operations within budget.
● MONITORING - Regularly reviewing financial activities to ensure they align with the plan
and support long-term growth.