Del Pilar, Lavapie, Santos Engineering Management

BS ECE 4-2

Chapter 3: Planning Technical Activities

Planning Defined

 A plan, which is the output of planning, provides a methodical way of achieveing desired
results.
 According to Nickels and others, planning refers to the management function that
involves anticipating future trends and determining the best strategies and tactics to
achieve organizational activities.
 According to Aldag and Stearns, planning is the selection and sequential ordering of
tasks required to achieve an organizational goal.
 According Cole and Hamilton, planning is deciding what will be done, who will do it,
when, where, and how it will be done, and the standards to which it will be done.

Planning at Various Management Levels

1. Top management level – strategic planning

This refers to the process of determining the major goals of
the whole organization. Under certain standards and existing
policies, the manager doing a strategic plan must visualize and see
the organization from above. He/she must consider the company’s
objectives and available resources. In the end, the goal of the
strategic plan will be a long-range goal and all along, the course of
action to be taken to achieve these goals.
 done by the president or the general manager of the
company
 timeframe of one to ten years
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BS ECE 4-2
2. Middle management level – intermediate planning
This refers as to what the sub-units of the company can
contribute to the company and ultimately to achieving the goals set
by the strategic plan. The manager doing an intermediate planning
must follow a certain guide provided whilst utilizing an allocated
resource. The intermediate plan is designed to support the strategic
plan.
 done by the marketing manager, production
manager, finance manager, and personnel manager
 timeframe of six months to two years

3. Lower management level – operational planning

This type of planning is done to support the strategic and
intermediate plans. It will consider what actions to take to achieve
a specific task’s goal.
 done by the industrial engineering manager, factory
manager, and quality control manager
 timeframe of one week to one year

The Planning Process

1. setting organizational, divisional, or unit goals

- The first task of an engineer manager is to set a sense of direction to his
company (for the president of the company, to his division (for the
division head), or to his unit (for the supervisor). By setting the goals,
everyone will have a sense of direction, which all leads to achieving the
goals.
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BS ECE 4-2
2. developing strategies or tactics to reach those goals
- After setting the goals, plotting a course of action comes next. This course
of actions, called strategies, will lead into the realization of the goals. This
is the concern of the top management. The two lower levels must make
their own strategies in order to achieve their own goals.

Strategy – defined as a course of action aimed at ensuring that the

organization will achieve its objectives.
Tactics – a short-term action taken by the management to adjust to
negative internal or external influences.
3. determining resources needed
- After strategising, the engineer manager must then determine the quality
and quantity of the resources needed, which include human and non-
human resources. They must specify it even though the resources are
already available. Too much resources will be wasteful; too little will
mean loss of opportunities for maximizing income.
4. setting standards
- A standard for measuring performance or quality must be set during the
planning stage. If not met, everyone must compromise to be able to
achieve or even surpass the standard. Corrections or reinforcements can
also be used to achieve this standard.

Standard – a quantitative or qualitative measuring device designed to the

performances of people, capital goods, or processes.

Determining Resources Needed

- After strategising, the engineer manager must then determine the quality and
quantity of the resources needed, which include human and non-human
resources. They must specify it even though the resources are already
Del Pilar, Lavapie, Santos Engineering Management
BS ECE 4-2
available. Too much resources will be wasteful; too little will mean loss of
opportunities for maximizing income.

Types of Plans

In terms of Functional Area Plans:

1. Marketing plan – a written document for implementing the marketing activities related to a
particular marketing strategy.

2. Production plan – a docment that stated the quantity and quality of the output of the company

3. Financial plan – it is a document that summarizes the current financial situation of the
company, and also a recommendation of direction for financial activities

4. Human resources management plan – a document that indicated the humen resource need
of the company detailed in terms of quality and quantity ad based on the requirement of the
strategic plan

In terms of Time Horizon:

1. Short-range plans – plans that are intended to cover a period of less than one year.
Supervisors and site managers are mostly concerned with these plans.
2. Long-range plans – these plans can cover a span of more than one year. These plans are
undertaken by intermediate and top managers.

According to Frequency of Use:

1. Standing Plans – plans that are used again and again and focus on situations that occur
repeatedly. They may be further classified as follows:
a. Policies – they are broad guidelines to aid the manager at every level
in making decisions about recurring situations
b. Procedures – they are plans that describe the ecat series of action to
be taken in a given situation
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BS ECE 4-2
c. Rules – they are statements that either require or forbid a certain
action
2. Single-Use Plans - plans that are specifically developed to implement courses of action
that are relatively unique and are unlikely to be repeated. They may be further classified
as follows:
a. budgets –according to Weston and Brigham, budget is a plan which
sets forth the projected expenditure for a certain activity and explains
where the required funds will come from.
b. programs – designed to coordinate a large set of activities
c. projects – a single-phase plan that is limited in scope in program and
is sometimes prepared to support a program

Parts of the Various Functional Plans

1. The Contents of the Marketing Plan

-the structure and content of the marketing plan vary depending on the nature of
the organization adapting them.
a. Exclusive Summary – presents the overall view of the marketing project
and its potential
b. Table of Contents
c. Situational Analysis and Target Market
d. Marketing Objectives and Goals
e. Marketing Tactics
f. Schedule and Budgets
g. Financial Data and Control

2. The Contents of the Production Plan

a. the amount of capacity the company must have
b. how many employees are needed
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BS ECE 4-2
c. how much material must be purchased
3. The Contents of the Financial Plan
a. an analysis of the firm’s financial condition based on the most recent
statements
b. a sales forecast
c. the capital budget
d. the cash budget
e. a set of projected financial statements
f. the external financing plan
4. The Contents of the Human Resources Plan
a. personnel requirements of the company
b. plans for recruitment and selection
c. training plan
d. retirement plan

Parts of the Strategic Plan

1. Company or corporate mission – refers to the strategic statement that identifies why
an organization exists, its philosophy of management, and its purpose as
distinguished from other similar organizations.
2. Objectives or goals
3. Strategies

Making Planning Effective

1. recognize the planning barriers

the barriers according to Plunkett and Attner:

a. managers inability to plan

b. improper planning process
c. lack of commitment to the planning process
d. improper information
Del Pilar, Lavapie, Santos Engineering Management
BS ECE 4-2
e. focusing on the present at the expense of the future
f. too much reliance on the planning department
g. concentrating on only the controllable variables

2. use of aids to planning

a. gather as much information as possible
b. develop multiple sources of information
c. involve others in the planning process

Summary

 Technical activities, like other acitivities, require effective planning

 A plan is a methodical way of achieving results.
 Planning is undertaken at various management levels.
 Various steps are required in the planning process depending on the management level.
 Plans may be classified in terms of functional areas, time horizon, and frequency of use.
 Plans consist of various parts that the engineer manager must be familiar with.
 Plans can be made effective by recognizing the planning barriers and making use of aids
to planning.