Operation Planning

• The term operational planning refrers to “the process of

determining how specific tasks can best be accomplished
on time with available resources.” This type of planning is
responsibility of lower management. It must be performed
in support of the strategic plan and the intermediate plan.
 The Planning Process
• 1. Setting organizational, division, or unit goals.
• 2. Developing strategies or tactics to teach those goals
• 3. Determining resources needed and
• $. Setting standards.
Setting Organizational, Divisional, or Unit Goals
• The first task of the engineer manager is to provide a
sense of direction to his firm, to his division, or to his unit.
The setting of goals provide an answer to the said
concern.
• Goals may be defined as the “precise statement of
results, sought, quantified in time and magnitude, where
possible.”
 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. The middle ad lower
management will adapt their own tactics to implement their plans.
• A strategy may be defined as “a course of action aimed at
ensuring that the organization will achieve its objectives.”
• A tactic is a short-term action taken by management to adjust to
negative internal or external influences. The are formulated and
implemented in support of the firm's strategies. The decision
about short-term goals and the courses of action are indicated in
the tactical plan.
 Determining Rosources Needed
• When particular sets of strategies or tactics have been
devised, the engineer manager will be, then, determine
the human and nonhuman resources required by such
strategies or tactics.
• The quality and quantity of resources needed must be
correctly determined.
• To satisfy strategic requirements, a general statement of
needed resouces will suffice.
 Setting Standard
• The standards for measuring performance may be set at
the planning stage. When actual performance does not
match with the planned performance, corrections may be
made or reinforcements given.
• A standard may be defined as “a quantitative or qualitative
measuring device designed to help monitor the
performances of people, capital goods, or processes.”
 Types of Plans

• They may be classified in terms of functional areas, time

horizon, and frequency of use.
 Functional Area Plans
Plans may be prepared according to the needs of the
different functonal areas. Among the types of functional
area plans are the following:

• 1. Marketing plan
• 2. Production plan
• 3. Financial plan
• 4. Human resouce management plan
 Plans with Time Horizon
• Plans with time horizon consists of the following:
• 1. Short-range plans
• 2. Long-range plans
 Plans According to Frequency of Use
• According to frequency of use, plans may be classified as:

• 1. Standing plans
– a. Policies
– b. Procedures
– c. Rules

• 2. Single use plans.