Planning

Technical
Activities

Introduction
If managing an organization is to be pursued
vigorously, planning will constitute the most
important activity.

The engineer manager, regardless of his

management level, will have to devote
some of his time to planning.

The Nature of Planning

There are many instances when managers
are overwhelmed by various activities
which at times becloud his judgment.
To minimize mistakes in decision-making,
planning is undertaken.

Planning Defined
the management functions that involve
anticipating future trends and determining
the best strategies and tactics to achieve
organizational objectives.
Nickels and others
the selection and and sequential ordering of
task required to achieve an organizational goal.
Aldag and Stearns

Planning at Various Management Levels

Top management level Strategic Planning

Middle management level Intermediate
Planning
Lower management level Operational
Planning

Strategic Planning

The term strategic planning refers to

the process of determining the major
goals of the organization and the
policies and strategies for obtaining
and using resources to achieve those
goals.

Intermediate Planning

Intermediate planning refers to the

process of determining the
contributions that subunits can make
with allocated resources.

Operational
Planning
The term
operational planning refers
to the process of determining how
specific tasks can best be
accomplished on time with available
resources.

e
Offic
er,
Pres
iden
t,
Vice
Pres
iden
ts,
Gen
Functional
Managers,
eral
Product Line
ManManager,
Department
ager Heads
,
Divi
Unit Managers
sion
Hea
First Line ds
Supervisors

Types of Planning

Top management

Middle
Management

Lower
Management

Strategic
planning
(one to ten years)

Intermediate
planning
(six months to
two years)

Operational
planning
(one week to
one year)

The organization and Types of Planning Undertaken

President/
General
Manager
Responsible for strategic

planning

Marketing
Manager
responsible for
intermediate planning

Industrial
Manager
responsible for
operational planning

Production
Manager
responsible for
intermediate planning

Factory
Manager
responsible for
operational planning

Finance
Manager
responsible for
intermediate planning

Quality Control
Manager
responsible for
operational planning

Personnel
Manager
responsible for
intermediate planning

Setting organizational, divisional, or unit

The Planning Process

goals

Developing strategies or tactics to reach

those goals
Determining resources needed and
Setting standards

Setting Organizational, Divisional, or Unit Goals

Organizational Level

Example Of Goal

Company

Buenavista
Construction
Corporation

To attain a return on
investment of 25%

Division

Project
Management
Division

To increase the number

of projects undertaken
by the Company

Unit

Personnel
Services
Unit

To increase the number

of project engineers

Developing Strategies and Tactics to Reach

Goals

After determining the goals, the next task

is to devise some means to realize them. A
tactic is a short term action taken by
management to adjust to negative internal
or external influences.

Determining
Resources
Needed
When particular
sets of strategies or tactic
have been devised, the engineer manager
will then, determine the human and non
human resources required by such strategies
or tactics.

Setting the Standards

The standards for measuring performance
may be set at the planning stage.

TYPES OF PLAN
Marketing Plan- this is the written document or blueprint for
implementing and controlling an organizations marketing
activities related to a particular marketing strategy.

Production Plan- a written document that states the quantity of output

a company must produce in broad terms and by product company.

Financial Plan- a document that summarizes the current financial

situation of the firm, analyzes financial needs, and recommends a
direction fo financial activities.
Human Resource Management Plan- a documents that indicate a
human resource needs of a company detailed in terms of quantity and
quality and base on the requirements of the companys strategic plan.

PLANS WITH TIME HORIZON

Short range plans These are plans
intended to cover a period less than one
year
Long-range plans These are plans
covering a time span of more than a year

PLANS ACCORDING TO FREQUENCY OF USE

Standing plans
1. Policies
2. Procedures
3. Rules
Single-use plans
1. Budgets
2. programs
3. projects

Parts of the Various Functional Area Plans

The ever present possibility of moving
from one management level to the
next and from one functional area to
another presses.

Types of
Plans
Functional
Area Plans

Plans with
Time
Horizon

Marketting
Plan

Short Range
Plan

Production
Plan

Long Range
Plan

Plans with Varied

Frequency of Use
Standing
Plan

Single-use
Plan

Policies

Budget

Financial Plan

Procedures

Program

Human
Resource Plan

rules

Project

The Contents of Marketing Plan

The executive summary
Table of contents
Situational analysis and target market
Marketing objectives and goals
Marketing strategies
Marketing tactics
Schedules and budgets
Financial data and control

The Contents of the Production Plan

The amount of capacity the company must
have
How many employyes are required
How much material must be purchased

The Contents of Financial Plan

An analysis of the firms current financial
condition as indicated by an analysis of the
most recent statement
A sales forecast
The capital budget
The cash budget
A set of pro forma financial statement
The external financing plan

Contents of Human Resources Plan

Personnel requirements of the company
Plans for recruitment and selection
Training plan
Retirement plan

Parts of Strategic Plan

. Company or corporate mission
Objectives or goals
Strategies

Making Planning Effective

Planning may be successful if the following
are observed
1. Recognize the planning barriers
2. Use of aids to planning

Recognize the planning barriers

Managers inability to plan

Improper planning process

Lack of commitment to the planning process
Improper information
Focusing on the present at the expense of the
future
Too much reliance on the planning department
Concentrating on only the controllable variables

Use of aids to planning

Gather as much Information as possible

Develop multiple sources of information
Involve others in the planning process

Thank you!