ENGINEERING MANAGEMENT

Planning

Presented by
Group 3
 Outline of Presentation
Planning at
The
The Nature Planning Various
Planning
of Planning Defined Management
Process
Levels

Types Making
of Plans Planning
Effective

INTRODUCTION
The higher the management level the
engineer manager is in, the more
sophisticated his planning activity
becomes
What is a
PLAN?
The output of planning, provides a
methodical way of achieving desired
results. In the implementation of activities,
the plan serves as a useful guide. Without
the plan, some minor tasks may be
afforded major attention which may, later
on, hinder the accomplishment of
objectives.
 Planning Defined
Nickels and others,
"the management function that involves anticipating future trends
and determining the best strategies and tactics to achieve
organizational objectives." This defi- nition is useful because it relates
the future to what could be decided now.

Aldag and Stearns

"the selection and sequential ordering of tasks required to achieve an
organizational goal."

Cole and Hamilton

deciding what will be done, who will do it, where, when and how it will
be done, and the standards to which it will be done
The desired result takes first
priority and the course of
action chosen is the means
to realize the goal.
 PLANNING AT
VARIOUS
MANAGEMENT
LEVELS
Since engineer managers could be
occupying positions in any of the
various management levels, it will be
useful for them to know some aspects
of planning undertaken at the different
management levels.
Planning activities undertaken at
various levels are as follows:

Top Middle
management management level-
level strategic intermediate
planning planning

Lower
management
level operational
plan
STRATEGIC The process of determining the

PLANNING major goals of the organization and

the policies and strategies for
obtaining and using resources to
achieve those goals. The top
management of any firm is involved
in this type of planning.

In strategic planning, the whole

company is considered, specifically
its objectives and current resources.
 INTERMEDIATE
The goals of a subunit are determined
and a plan is prepared to provide a PLANNING
guide to the realization of the goals.
The intermediate plan is designed to
support the strategic plan.
 the process of determining how
specific tasks can best be
accomplished on time with available
resources.

ERA TI ON AL planning involves the following:

OP
setting organizational, divisional, or
unit goals

PL AN NIN G developing strategies or tactics to

reach those goals
determining resources needed; and
setting standards. Setting
Organizational, Divisional, or Unit
Goals
Developing
Strategies or Tactics
to Reach Goals
The ways to realize the goals are called
strategies and these will be the
concern of top management.

A strategy may be defined as "a

course of action aimed at ensuring
that the organization will achieve its
objectives.
SETTING
STANDARD
A standard may be defined as "a quantitative
or qualitative measuring device designed to
help monitor the performances of people,
capital goods, or processes.
 FUNCTIONAL AREA PLANS
Plans may be prepared according to the needs of the
different functional areas. Among the types of
functional area plans are the following:

1. Marketing plan- this is the written document or

blueprint
2. Production plan- this is a written document that
states the quantity of output a company must
produce in broad terms and by product family

3. Financial plan- it is a document that summa- rizes

TYPES OF the current financial situation of the firm, analyzes

financial needs, and recommends a direction for

PLANS financial activities

Plans with time horizon consist of the following:
1. Short-range plans these are plans intended
to cover a period of less than one year. First-line
supervisors are mostly concerned with these PLANS WITH
plans. TIME HORIZON
2. Long-range plans - these are plans covering
a time span of more than one year. These are
mostly undertaken by middle and top
management.

Plans According to Frequency of Use
1. standing plans and
2. single-use plans. Standing Plans
Standing plans
1. Policies they are broad guidelines to aid
managers at every level in making decisions
about recurring situations or function.
2. Procedures they are plans that describe the
exact series of actions to be taken in a given
situation.
3. Rules-they are statements that either
require or forbid a certain action.
 LE USE PLA
NG NS
SI
Single-use plans may be further
classified as follows:
1. budgets
2. programs, and
3. projects.

These plans are specifically developed to

implement courses of action that are
relatively unique and are unlikely to be
repeated.
 DGET
BU
A budget, according to
Weston and Brigham, is "a
plan which sets forth the
projected expenditure for a
certain activity and explains
where the required funds will
come from."
ROGRAM ROJECT
P P
A program is a single- A project is a single-use plan
use plan designed to that is usually more limited in
coordinate a large set of scope than a program and is
activities," sometimes prepared to
support a program.
PARTS OF THE
VARIOUS
FUNCTIONAL
AREA PLANS
The Contents of the Marketing Plan
The structure and content of marketing
plans vary depending on the nature of the
organizations adapting them.

William Cohen maintains that the

following must be included in the
marketing plan:"
PARTS OF THE
VARIOUS The Executive Summary-
FUNCTIONAL which presents an overall
AREA PLANS view of the marketing project
and its potential.
The Contents of the Marketing Plan Table of Contents
Situational Analysis and
The structure and content of marketing
Target Market
plans vary depending on the nature of the
Marketing Objectives and
organizations adapting them.
Goals
Marketing Strategies
William Cohen maintains that the
Marketing Tactics
following must be included in the
Schedules and Budgets
marketing plan:"
Financial Data and Control
PARTS OF THE The components of the

VARIOUS financial plan are as follows.

FUNCTIONAL An analysis of the firm's

AREA PLANS current financial condition as

The Contents of the Production Plan
1. the amount of capacity the company
must have
2. how many employees are required
3. how much material must be purchased
indicated by an analysis of
the most recent statements
A sales forecast
The capital budget
The cash budget
A set of pro forma (or
projected) financial state-
ments
The external financing plan
PARTS OF THE
VARIOUS personnel requirements of the
FUNCTIONAL company
AREA PLANS plans for recruitment and
selection
Contents of the Human training plan
retirement plan
Resources Plan
PARTS OF A
STRATEGIC PLAN
THE STRATEGIC PLAN
MUST CONTAIN THE
FOLLOWING
1. Company or corporate mission
2. Objectives or goals
3. Strategies

Planning may be made
successful if the following
are observed:
1. recognize the planning
barriers
2. use of aids to planning
The planning barriers,
according to Plunkett and
Attner, are as follows:
1. manager's inability to plan
2. improper planning process
3. lack of commitment to the
planning process
4. improper information
5. focusing on the present at
the expense of the future
6. too much reliance on the
planning department
7. concentrating on only the
controllable variables
Among the aids to
planning that may be used
are:
1. Gather as much
information as possible.
2. Develop multiple sources
of information
3. Involve others in the
planning process
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.
SUMMARY
Technical activities, like other activities,
require effective planning, i.e., if
objectives and goals are to be realized.
A plan is a methodological 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.
THANK YOU
FOR
LISTENING

Presented by
Group 3