What is the first step in preparing a long-range plan for equipment and facilities?

The first step in preparing a long-range plan for equipment and facilities involves identifying capital requirements at the activity level. This step is crucial because it lays the foundation for understanding the specific needs of each operation or activity before making broader strategic decisions. By pinpointing these requirements, planners can ensure that resources are aligned effectively with operational goals and that there is a clear picture of what equipment and facilities are necessary to support the mission.

Starting with the identification of capital requirements allows for a more structured approach to later steps in the planning process. It facilitates informed discussions about budget constraints, future forecasts, and the assessment of past expenditures since these elements can be tied directly to the identified needs. Without first understanding what is required at the activity level, any subsequent planning could be misaligned with operational priorities.