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Insights on operations management, process optimization, and industrial analytics

3-2-1 reporting – control the whole by controlling the parts

In the previous article I explained the concept of a hierarchical management control and reporting system based on the principle of time-scale separation (i.e. separating hourly, daily, and weekly decision-making). However, this is only one dimension of hierarchical management. In this article, I introduce task decomposition, and the concept of 3-2-1 reporting, which is how decentralized decisions in a large, integrated facility are coordinated to ensure the overall operation achieves its objectives.

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Short interval control for management

The principle of short interval control, which I described in a previous article, also applies to management control at daily, weekly, and monthly frequencies. In this article I explain how a hierarchical management control and reporting system with feedback loops is essential to change behaviours and drive continuous improvement.

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