Action plans usually keep a more current time frame in mind, often six months or a year. No matter how long the time frame is, it is important to recognize that planning is not a one-time activity. It is a continual, repeating process which uses information gathered from the environment and operating results to review and recast plans on a regular basis. Several specific tools are used by planners. One of the most important planning tools is forecasting.
Managers forecast in several ways.
They often employ qualitative techniques, using the expert judgement of staff personnel. A firm exercising the TQM philosophy would benefit from involving many personnel in forecasting sales. A firm may also use quantitative techniques in either time series or regression analyses. This is the application of statistical models to describe past relationships among quantitative data relevant to the firm's operations, and then projecting those relationships into the future. TQM firms will use statistical and benchmarking tools adapted from quality analysis in quantitative forecasting.