PLANNING

TECHNIQUES AND
TOOLS.
--planning, group 1.
Forecasting
This is an attempt to foretell or predict the future
trends, events or conditions from known data and
to prepare for the expected changes in business or
industry.

Under this technique, past and present or current

information is used to predict future events or
conditions.
Some forecasting methods
 Survey method- involves probing the costumer or
respondent through questionnaires or interviews.

 Trend method-it is a time series analysis that is

another technique, where the future is predicted by
projected trends using past data information.

 Econometric method- it uses a model that are based

on statistical methods of analyzing data and making
predictions
2. Break-even analysis
Almost every manager makes a profit plan and
break-even analysis useful for developing it.

In order to make profits, total cost must not exceed

total revenue.

Using these charts, a manager can say whether the

company can sell enough products to break-even
and plan accordingly.
3. Scheduling
 This is the term used for planning time for various
activities in an organization.
 Network analysis is a quantitative technique used for

scheduling. Two well-known network analysis

methods are PERT (program evaluation review
technique) and CPM (critical path method).
Event-an identifiable accomplishment that occur in a
definite point in time.
Activities-are the work required to complete the event.
Three Types of timings
 Optimistic time
--the minimum time it could take

 Pessimistic time
--the maximum time it could take

 Probable time
--the most probable time
The 4 basic steps in developing
PERT
1. Identify and list major tasks in a project
2. Determine the order in which these tasks must be
carried out, in terms of which one comes first,
second and so on, and which activities can be
carried out simultaneously
3. Figure out a pessimistic, probable or most likely
and optimistic times for each activity or task.
4. Estimate the expected completion time by
averaging the above times.