10:31 % B WB al “il GH90% < Chapter11 Planning Tools and Techniques.pdf Management Stephen P. Robbins Mary Coulter tenth edition “T4 Planning Tools and Techniques Learning Outcomes Follow this Learning Outline as you read and study this chapter Tee t Techniques for Assessing the Environment List the different approaches to assess the environment. *Explain what competitor intelligence is and ways that managers can do it legally and ethically. *Describe how managers can improve the effectiveness of forecasting. List the steps in the benchmarking process. Learning Outcomes Techniques for Allocating Resources * List the four techniques for allocating resources. * Describe the different types of budgets.10:31 & BB all “Hl < Chapter11 Planning Tools and Techniques.pdf SOE SIG USS POT SS eSTENTHErnME preSsoeT Techniques for Allocating Resources * List the four techniques for allocating resources. * Describe the different types of budgets. * Explain what a Gantt chart and a load chart do. * Describe how PERT network analysis works. * Understand how to compute a breakeven point. * Describe how managers can use linear programming. Assessing the Environment * Environmental Scanning — The screening of large amounts of information to anticipate and interpret change in the environment. — Competitor Intelligence * The process of gathering information about competitors—who they are; what they are doing ~ Careful attention to really accessible information from employees, customers, suppliers, the Internet, and competitors themselves * May involve reverse engineering of competing products to discover technical innovations Arm Race in the Cold War -Forecasting Forecasting10:31 & BBall < Chapter11 Planning Tools and Techniques.pdf * Forecasting — Apart of planning including the prediction of outcomes based on information gathered by environmental scanning. + Facilitates managerial NV decision making. * Is most accurate in ae stable environments. -Forecasting Techniques * Forecasting Techniques — Quantitative forecasting * Applying a set of mathematical rules to a series of hard data to predict outcomes (e.g., units to be produced) — Qualitative forecasting * Using expert judgments and opinions to predict less than precise outcomes (e.g., direction of the economy) Oo. er mM aro S * Quantitative10:31 % B WB al “Fi GH90% < Chapter11 Planning Tools and Techniques.pdf + Quantitative + Time series analysis + Regression models + Econometric models + Economic indicators + Qualitative Gs S) + Surveys = + Customer feedbacks rit Accuracy vs Scope Weather Forecast + 24 hours * 60days Market Demand Forecast + 1 year + 20 years sng oo Pees “gl * Types of Resources10:31 & BB all Hl < Chapter11 Planning Tools and Techniques.pdf + Types of Resources —The assets of the organization + Financial: debt, equity, and retained earnings * Physical: buildings, equipment, and raw materials + Human: experiences, skills, knowledge, and competencies * Intangible: brand names, patents, reputation, trademarks, copyrights, and databases >) ; ‘ 4) Techniques for Allocating Resources: is] rel -x-aa eyed Budgeting — Are numerical plans for allocating resources (e.g., revenues, expenses, and capital expenditures). — Are used to improve time, space, and use of material resources. — Are the most commonly used and most widely applicable planning technique for organizations.10:31 % B WB al “Fi GH90% < Chapter11 Planning Tools and Techniques.pdf Tee retains Prvtce Fat “gg Techniques for Allocating Resources: Scheduling Schedules — Plans that allocate resources by detailing what activities have to be done, the order in which they are to be completed, who is to do each, and when they are to be completed. — Represent the coordination of various activities. -Charting * Gantt Chart10:31 % B WB al “il GH90% < Chapter11 Planning Tools and Techniques.pdf -Charting * Gantt Chart — A bar graph with time on the horizontal axis and activities to be accomplished on the vertical axis. — Shows the expected and actual progress of various tasks. * Load Chart — Amodified Gantt chart that lists entire departments or specific resources on the vertical axis. — Allows managers to plan and control capacity utilization. Activity ‘Month copyedit manuscript Design sample pages Draw artwork Print fst pages Print final pages Design cover Actual progress Goals Cade a TSR Editors ‘Month10:31 % B WB al “Fi GH90% < Chapter11 Planning Tools and Techniques.pdf The rag os Prev al “ga Sid me rN IK, Editors Annie Antonio im Maurice Dave Penny Hi Work scheduled Tee tain oe Prev a 15 | + Program Evaluation and Review Technique (PERT) = A flow chart diagram that depicts the sequence of activities needed to complete a project and the time or costs associated with each activity. + Events: endpoints for completion. + Activities: time required for each activity. + Slack time: the time that a completed activity waits for another activity to finish so that the next activity, which depends on the completion of both activities, can start. + Critical path: the path (ordering) of activities that allows all tasks to be completed with the least slack time, Example of PERT Network10:32 4 BURR all 11.90% < Chapter11 Planning Tools and Techniques.pdf £ Example of PERT Network o——- 0: ng tata 70? o@-e+s0+o-7 et Ve mee uP ae cas 1. Identify every significant activity that must be achieved for a project to be completed. 2. Determine the order in which these events must be completed. 3. Diagram the flow of activities from start to finish, identifying each activity and its relationship to all other activities. 4. Compute a time estimate for completing each activity. 5. Using the network diagram that contains time estimates for each activity, determine a schedule for the start and finish dates of each activity and for the entire project.10:32 4 BB al “Fil H90% < Chapter11 Planning Tools and Technique: s.pdf “oo exhibit B-8 SEU aa ou kenataci I Office Building Exhibit Visual PERT Ea Expected Tine Preceding vent Description iinwoeks) vent ‘A Approve design and get permits 10 None B_Digsubteranean garage 6 a Erect ramo and'siing 4 e DB Construct floor 6 € © Inallvaindows. 3 € F Paton root 3 c G —_insatintarna wining 5 ber H Install levator 5 S | Putin floor covering and paneling 4 3D J Putin doors and interior decorative tin, 3 th Tum over to buleing management group. 1 1 ce a “gg Network for Constructing Office Build SABCOGHIK SAB-COLHK a SABCEGHIK 7 SABCEGHIK 7 Critical Path: A-B-C-D- = -Breakeven Analysis + Breakeven Analysis G-H-J-K10:32 4 BURR all 11B89% < Chapter11 Planning Tools and Techniques.pdf eee aE + Breakeven Analysis — Breakeven Point: the point at which total costs have been covered by revenue and profit begins. * Fixed cost (FC) infrastructure, hardware * Variable costs (VC) salary + Total Costs (TC) TC=FCHVC + Price (P) + The Break-even Point: Input (TC) = Profits (PQ) Fixed Costs Breakeven = "05S ____ Unit Price-Unit Variable Costs ea 1 Cees OM ees Ue Total Costs (TC) 40,000 Variable costs E s0000 GS) + Fixed Costs: $27,000 + Unit price: $10 na + Variable costs per unit: $7 10,000 [Fed Costs. Number of units as the breakeven point? 100 200 300 400 600 600 ‘Output fn thousands) “2 AT -Selanaceys4el aaa ay 24 Linear Programming — Allocate resources to maximize profits under constraints.10:32 4 BURR all 11B89% < Chapter11 Planning Tools and Techniques.pdf 100 200 300 400 600 600 ‘Output in thousands) SS ATat=-lem ace el aa aal ay =4 * Linear Programming ~ Allocate resources to maximize profits under constraints. iat as OM ace Mot RRO Sess ace lt Number of Hours Requited (per unit) Potpourri Scented ‘Monthly Production Department Bags Candles Capacity (in hours) Manufacturing 2 4 1,200 Assembly 2 2 900 Profit per unit 310 S18 Tea aed eae Seta Cnc See aaa10:32 4 BB al “i D89% < Chapter11 Planning Tools and Techniques.pdf Exhibit B-12 Graphical Solution to Linear ee aes of Scented Candles Quant 100 200 300 400 500 600 Quantity of Potpourri Bags y] Contemporary Planning Techniques * Project — Aone-time-only set of activities that has a definite beginning and ending point time. * Project Management — The task of getting a project's activities done on time, within budget, and according to specifications. * Define project goals + Identify all required activities, materials, and labor + Determine the sequence of completion (ernis ete Mae tea u I ans10:32 & BB all “Hl < Chapter11 Planning Tools and Techniques.pdf Project iianagement — The task of getting a project’s activities done on time, within budget, and according to specifications. *+ Define project goals * Identify all required activities, materials, and labor + Determine the sequence of completion Exhibit 8-13 Project Planning Proce: Conclusion + Well define featured service in market (strength by criteria-multiple decision making) + Reasonably increase number of consultants (how many?-forecast) + Strategies to secure market share against competitors (detailed course of actions?-game theory)