2. engineering management_planning

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Planning Technical Activities


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Planning

According to Nickels and others, refers to the management functionthat involves anticipating future trends and determining the beststrategies and tactics to achieve organizational objectives.

Adlag and Stearns, define planning as the selection and sequentialordering of task required to achieve an organizational goal

According to Cole and Hamilton is deciding what will be done, whowill do it ,where, when ,and how it will be done, and the standards towhich it will be done.


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Planning At Various Management Levels

Planning activities undertaken at various levels are as follows:

1. Top Management Levels Strategic Planning

2. Middle Management Levels Intermediate Planning

3. Lower Management Levels Operational Planning


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Strategic Planning

The term strategic planning refers to the process of determining themajor goals of the organization and the policies and strategies forobtaining and using resources to achieved those goals. The topmanagement of any firm involved in this type of planning.

The output of strategic planning is the strategic plan which spells outthe decision about long-range goals and the course of action toachieved these goals.

Intermediate Planning Intermediate planning refers to the process of determining the

contributions that subunits can make with allocated resources. Thistype of planning is undertaken by middle management


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Under intermediate planning, the goals of a subunit are determinedand a plan is prepared to provide a guide to the realization of the goals.

The intermediate plan is designed to support the strategic plan.

Operational Planning The term operational planning refers to the process of determining

how specific tasks can best be accomplished on time with availableresources. This type of planning is a responsibility of lowermanagement. It must be performed in support of the strategic plan andthe intermediate plan.


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The Planning Process1. Setting Organizational, divisional, or unit goals.

2. Developing Strategies or tactics to reach those goals.

3. Determining Resources Needed

4. Setting Standards

Setting Organizational, Divisional, or Unit Goals The first task of the engineer manager is to provide a sense of

direction to his firm(If he is the Chief Executive), to his division (If heHeads a Division), or to his unit ( If he is a Supervisor). The setting of

goals provide answer to the said concern. If everybody in the firm(orDivision or Unit, as the case may be) is aware of the goals, there is a bigchance that everybody will contribute his share in the realization ofsuch goals.


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The Planning Process

Goals may be defined as the precise statement of results sought,quantified in time and magnitude, where possible.


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Developing Strategies or Tacticsto Reach Goals

After determining the goals, the next task is to devise some means to

realize them. Astrategymay be defined as a course of action aimedat ensuring that the organization will achieve its objectives.

Atactic,on the other hand,is a short-term action taken bymanagement to adjust negative internal or external inf luences. Theyare formulated and implemented in support of the firms strategies.

Determining Resources Needed

After implementing strategies or tactics, the engineer manager will,then, determine the human & nonhuman resources required by suchstrategies or tactics.


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Determining Resources Needed

The quality and quantity of resources needed must be correctlydetermined. Too much resources in terms of either quality or quantity

will be wasteful. Too little will mean loss of opportunities formaximizing income.

To satisfy strategic requirements, a general statement of needed

resources will suffice.

Setting StandardsThe standards for measuring performances may be set at the planningstage. When actual performance match with the planned performance,

corrections may be made or reinforcements given.

A standard may be defined as a quantitative or qualitative measuringdevice designed to help monitor the performances of people, capitalgoods, or processes.


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Types of PlansPlans are of different types. They may be classified in terms of functional

areas, time horizon, and frequency of use.

Functional Area Plans

1. Marketing plan this is the written document or blueprint for

implementing & this is a written document that states the quantity

of output a company controlling an organizations marketing activitiesrelated to a particular marketing strategy.

2. Production plan must produce in broad terms & by product

family.

3. Financial plan it is a document that summarizes the current

financial situation of the firm, analyzes financial needs, and

recommends a direction for financial activities.

4. Human resource management plan a document that indicates the

human resource needs of a company detailed in terms of quantity and

quality and based on the requirements of the companys strategic plan


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Plans with Time Horizon

1. Short-range plans are plans intended to cover a period of less thanone year. First-line supervisors are mostly concerned with these plans.

2. Long-rang plans are plans covering a time span of more than oneyear. These are mostly undertaken by middle and top management.

Plans According to Frequency of Use

1. Standing Plans These are plans that are used again and again, andthey focus on managerial situations that recur repeatedly.

a. Policies they are broad guidelines to aid managers at everylevel in making decisions about recurring situations or function.

b. Procedures are plans that describe the exact series of actions

to be taken in a given situation.c. Rules are statements that either require or forbid a certain action.


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Plans According to Frequency of Use

2. Single-Use Plans plans are specifically developed to implementcourses of action that are relatively unique and are unlikely to berepeated.

a. budgets

b. programs, and

c. projects.

Abudget, according to Weston and Brigham, is a plan which setsforth the projected expenditure for a certain activity and explains wherethe required funds will come from.

Aprogram is a single-use plan designed to coordinate a large set ofactivities.

Aproject is a single-use plan that is usually more limited in scopethan a program and is sometimes prepared to support a program.


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Various Functional Area Plans

Marketing Plan

Production Plan

Financial Plan Human Resources


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Marketing Plan

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


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Production Plan

Contents of Production Plan:

The amount of capacity the company must have How many employees are required

How much material must be purchased


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Financial Plan

Contents of Financial Plan:

An analysis of the firms current financial conditions as indicated by an

analysis of the most recent statements sales forecast Capital budget

Cash budget

A set of pro forma(or projected) financial statements

The external financing plan


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Human Resources Plan

Contents of Human Resources Plan:

Personal requirements of the company

Plans for recruitment and selection Training plan

Retirement plan


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Strategic Plan

The Strategic Plan must contain the ff:

Company or corporate mission

Objectives or goals Strategies


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Making Planning Effective

Planning is done so that some desired results may be achieved.Sometimes failure in planning occurs.

Planning may be made successful if the following are observed: Recognize the planning barriers

Use of aids to planning


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Planning Barriers according to Plunkett and Attner

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


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Aids to Planning

Gather as much information as possible

Develop multiple sources of information

Involve others in the planning process

2. engineering management_planning

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