UOlndit 2 ope hs Pla lag & torrho! ¢- ! “Plating 9 (Mar niing in advance) "What is te 4 ; WNCcoemi ae Ne alee cap etary) = OWS ti be: lon abel Wh we Ww 4d whi we by whom it ic to be ane ee te Feact Feat, Limpertace “Focus on aehiew ing goals o Provides Airecon : Priva function Pe ce ot Unconiaiwity., * Pevasi we bad os oveniap ping at Work “ Crtingsur functm + Ryo mols imvatine idear + Pubanisthic. * Foci) on objeet vis * Tavolves decision makiog + Pavidts Stauclarel for Coville, Limitations ee Cw ment "Reduce Crealivity ~ Lnvolwes Cost * Time Consumi ‘ Oper not Guarantee Lucers Planning freces- Setting up of objectives dwelepiog premisn - Lipkly vamous allunadives » Evaluching differnt cbrrnatcves , Selecting an abberrating Dmplemerteog tte plan Follow whPlanning Process: ‘The process of planning includes the determination of objectives and outlining the future actions that are needed to achieve these objectives. Various steps that are followed in the process of planning are: (i) Identifying the problem: It involves the identification of the aim for the fulfillment of which the plan is being formulated. If a new plan is require or the modification of an existing plan could help in achieving these aims. (ii) Gathering information about the activities involve: An effective plan needs complete knowledge of the activities involved and their effect on other external and internal activities. (iii) Analysis of information: This information is then analysed minutely and the information related with similar subjects is classified so that similar type of data can be kept together. (iv) Determining alternate plans: There are alternate plans available for the achievement of the objectives and ingenuity and creativeness are required as some plans are also developed at this stage. (v) Selecting the plan: At this stage the plan which is acceptable to the operating personnel is proposed. The adaptability and the cost of the plan are also taken into consideration. (vi) Detailed sequence and timing: Detailed like who will perform which activity under the plan and the time within which the plan should be carried out is determining in this step. (vii) Progress check of the plan: The provisions are made for the follow up of the plan as the success of any plan can be measured by the results only. ‘Computational support for planning: 1, An analysis of historical data to obtain relationship useful for projection, 2. Various projection and forecasting techniques to estimate future value. 4, Computations internal to the plan and computation required for outputs. 5, Output of the results in a meaningful planning format. Historical data analysis techniques Historical data analyzed to discover pattern or relation that will be useful in projecting the future value of significance variables. Even when the quantitative relations are not sufficiently stable to use in forecasting data analysis is useful for input into the judgmental forecast, Historical extrapolation techniques Historical data describes the past planning that involve the future estimating is generally based on analysis of past history combined with various technique to generate data for planning purposes. Models that involve financial plan need to provide for various computation and analyses commonly required for ‘measuring or evaluating profitability example are depreciation computation rate of return analysis and break even analysis. Depreciation is a significant computation in most financial planning it affect profit computation because it is an expense and it effect cash flow because of its impact on taxes. There are several methods for computing deprecation all of which should be available to the planner, These methods are straight line double declining balance sum of the year digits and production or use basis. ‘Type of Planning: Three major types of plans can help managers achieve their organization's goals: strategic, tactical, and operational. Operational plans lead to the achievement of tactical plans, which in turn lead to the attainment of strategic plans. An operational plan is one that a manager uses to accomplish his or her job responsibilities. Supervisors, team leaders, and facilitators develop operational plans to support tactical plans (see the next section). Operational plans can be a single-use plan or an ongoing plan. + Single-use plans apply to activities that do not recur or repeat. A one-time occurrence, such as a special sales program, is a single-use plan because it deals with the who, what, where, how, and how much of an activity. A budget is also a single-use plan because it predicts sources and amounts of income and how much they are used for a specific project. + Continuing or ongoing plans are usually made once and retain their value over a period of years while undergoing periodic revisions and updates, The following are examples of ongoing pla