Professional Documents
Culture Documents
Planning and Forecasting: Managing Engineering and Technology
Planning and Forecasting: Managing Engineering and Technology
Planning and Forecasting: Managing Engineering and Technology
Fifth Edition
Morse and Babcock
Chapter Objectives
Planning
1. Provides method for identifying
objectives
2. Design sequence of programs and
activities to achieve objectives
Plans
Documents that outline how goals are to be accomplished
Describe how resources are to be allocated and establish
activity schedules
76
Types of Goals
Financial Goals
Are related to the expected internal financial
performance of the organization.
Strategic Goals
Are related to the performance of the firm
relative to factors in its external environment
(e.g., competitors).
Strategic Goals
Higher dividends
Wider profit margins
Higher returns on invested
capital
Stronger bond and credit
ratings
Bigger cash flows
A rising stock price
Recognition as a blue chip
company
A more diversified revenue
base
Stable earnings during
recessionary periods
Types of Plans
79
Exhibit 7.2
Types of Plans
Strategic Plans
Apply to the entire organization.
Establish the organizations overall goals.
Seek to position the organization in terms of its
environment.
Cover extended periods of time.
Operational Plans
Specify the details of how the overall goals are to be
achieved.
Cover short time period
Short-Term Plans
Plans with time frames on one year or less
Specific Plans
Clearly defined, no room for interpretation
Directional Plans
Flexible plans that set out general guidelines, provide
focus, yet allow discretion in implementation.
Standing Plans
Ongoing plans that provide guidance for
activities performed repeatedly.
713
Approaches to Establishing
Goals
Approaches to Establishing
Goals (contd)
Management By Objectives (MBO)
Measurable and
quantifiable
Specifically defines how the
outcome is to be measured
and how much is expected.
Challenging yet
attainable
Low goals do not motivate.
High goals motivate if they
can be achieved.
Written down
Focuses, defines, and
makes goal visible.
Communicated to all
Puts everybody on the
same page.
Developing Plans
Dependency Factors in a Managers Planning
Managers level in the organization
Strategic plans at higher levels
Operational plans at lower levels
Approaches to Planning
Establishing a formal planning department
A group of planning specialists who help
managers write organizational plans.
Planning is a function of management; it should
never become the sole responsibility of planners.
Contemporary Issues in
Planning
Criticisms of Planning
Planning may create rigidity.
Plans cannot be developed for dynamic
environments.
Formal plans cannot replace intuition and
creativity.
Planning focuses managers attention on todays
competition not tomorrows survival.
Contemporary Issues in
Planning (contd)
Effective Planning
Plan to plan
People who are supposed to implement
plan should be involved in preparing
plan
Dont be reactive, be proactive
Planning
Planning
What is the Problem/Purpose?
Establish Goal/Objectives
What Client Need Is Being Satisfied
by the Project?
Identify Success Criteria
Planning process
Assignment
Write down your mission in life
OR
Assume that you own a company
and write down its mission.
It should not be more than two
lines/sentences.
Strategic Planning
Vision/Mission
SWOT Analysis
Gap Analysis
Goals
Objectives
Strategies
Mission
Goal 1
Objective 1
Goal 2
Objective 2
Strategy 1
Strategy 2
Goal 3
Strategic Plan
Suggests ways (strategies) to
identify and to move toward desired
future states
Consists of the process of
developing and implementing plans
to reach goals and objectives
Vision
A vision statement describes in
graphic terms where the goal-setters
want to position themselves in the
future.
High organizational values
High aspirations for the future
Provides inspiration
Vision Example
Oxfam
A just world without poverty (5)
Save the Children
Our vision is a world in which every child
attains the right to survival, protection,
development and participation. (18)
Planning
Mission Statement
First step in planning process
What we do (primary purpose)
For whom we do it (customers,
stakeholders)
How we will get it done
What do we want to do
Mission Statement
Resembles a vision statement
Has a more immediate business
focus with a time horizon
Mission Example
Oxfam
To create lasting solutions to poverty,
hunger, and social injustice. (10)
Save the Children
To inspire breakthroughs in the way the
world treats children and to achieve
immediate and lasting change in their
lives. (20)
Strategic Planning
External
Opportunities
Growing population
Education focus
Threats
Competing universities
Lack of highly educated
faculty
Gap Analysis
Tool that helps companies compare actual
performance with potential performance.
At its core are two questions:
"Where are we?"
"Where do we want to be?"
Objectives
Specific, measurable outcomes
Help to achieve a goal
Identify projects, activities, and tasks
Planning
Goal Statement
Official vs Operative goals
Why?
What do we do?
For whom do we do it?
Planning
Goal Statement
Gives purpose and direction
Used as continual point of reference
for questions regarding scope or
purpose
Planning
Objectives
Planning
Develop Objectives
Specific
Measurable
Attainable/Achievable
Realistic
Time-limited
Objectives
Characteristics
Outcome - what is to be
accomplished
Time Frame - expected completion
date
Measure - metrics for success
Action - how the objective will be met
Market Share
Innovation
Productivity
Physical and Financial Resources
Manager Performance and Development
Worker Performance and Attitude
Profitability
Social Responsibility
Agile Process
Clear group mission
Ground rules
Pursue the mission
Interim conditions
Periodic reviews
Short-term goals
Keep people focused
Keep customer involved
Systems of Plans
Project statement of
work
Work breakdown
structure
Project Schedule
Project budget
Specifications
Management plan
Security plan
System test plan
Production plan
Tooling plan
Make-or-buy plan
Quality assurance plan
Facilities plan
Training plan
Logistics support plan
Reliability plan
Transportation plan
Configuration plan
Behavioral Guidelines
Policies
Guides for decision-making
Room for interpretation and discretion
Procedures
How things should be done
Reviews, approvals, communications
Rules
Strict, enforceable