Learning Objectives:

The learners shall be able to apply

appropriate planning techniques and
tools.
 Using a standardized and universally
techniques and tools wins acceptance
and confidence among clients and other
business engagements.
Use of well-defined and proven
planning methods will help the manager
complete the task faster and easily.
Henry L. Gantt
was an American mechanical
engineer and management
consultant who is best known
for his work in the
development of scientific
management. He created
the Gantt chart in the 1910s.
 Gantt Chart
 It is a planning technique that
graphically documents and presents
schedule of a plan and real progress of a
project.
 Gantt Chart
It is constructed with a horizontal axis
representing the total time span of the
project, broken down into increments (for
example, days, weeks, or months) and a
vertical axis representing the tasks that
make up the project.
 Horizontal bars
Varying lengths represent the
sequences, timing, and the time
span for each task.
 Vertical line
 Used to represent the report date.
 This chart allows everyone to see at a
glance:
1. What are the various activities
2. When each activity begins and end
3. How long each activity is scheduled to last
4. Where activities overlap with other activities,
and by how much
5. The start and end date of the whole project
 Milestone Chart
 It is focuses on planned significant events
scheduled to occur at specific times in the
program. Such events could be the initiation
or completion of a particularly important or
critical activity, equipment deliveries, reviews,
or approval dates.
 The following are the simple steps in
crafting a Milestone chart:
1. Name the important dates, deadlines and
deliverables of the project.
2. Evaluate the tasks necessary to finish each
milestone. Include the estimates on how long
each milestone will take to complete.
3. Prioritize milestone based on dependencies;
if there is none fit them in the project
timeline.
 Critical Path Method
 It is a mathematical way of planning
and scheduling for programmed
management to ensure a timeless and
minimum use of resources.
Morgan R. Walker and James. E.
Kelley Jr.
 In 1956 James E. Kelley Jr. (of Remington Rand)
and Morgan R. Walker (of DuPont) began
developing algorithms for project scheduling
at DuPont, building on work that had been
done at the company during the Manhattan
Project. The program was first trialed on plant
shutdowns in 1957, and they published the
first paper on critical path scheduling in 1959.
 DuPont
 DuPont is using science and innovation to
make the world a safer, healthier, and better
place to live. It's how we're helping to invent a
better now.
In applying the CPM, there are several steps that can be
summarized as follows:
1. Identify the mandatory task and list them down in
order.
2. Construct a diagram illustrating the relation of each
task to the others.
3. Name the critical and non-critical path among tasks.
Payback analysis
 Is a mathematical method that finds out how long the
investments on an asset or project will pay for itself .
 Payback period -refers to the amount of time it takes
to recover the cost of an investment. Simply put, the
payback period is the length of time an investment
reaches a breakeven point.
The formula can be stated mathematically
as follows:
Payback Period = Initial Investment ÷ Annual
Net Cash Flow
A Sample Payback Analysis:
Serrano Company is planning to undertake a
project requiring initial investment of Php105
million. The project is expected to generate
Php25 million per years. Calculate the
payback period of the project.
To get payback period:
Payback Period = Initial Investment ÷ Annual
Cash Flow
Payback Period = Php105M ÷ Php25M = 4.2
years
 Simulations
 It is the model building type of activity that
tries to mimic an exact situation in simpler
manner.
 Is to show the user the different possible
outcomes of his decisions, along with the
probability that each outcome will occur.
There are practical way of using
simulations:
1. Training – an effective training simulation
presents a realistic environment for user to
experience complex situations and try out new
techniques.
2. Process Improvement – Simulation models
of business process help analysis examine
business practices in order to improve them.
3.Predicting Outcomes – using spreadsheets, one can
simulate what might happen if certain condition
exist. This helps him generate more accurate
forecast.
4. Managing Risk – manipulating data enables one to
examine how much he can invest or afford to lose
under certain simulated circumstances.
Benchmarking
 It is the process of calculating an
organization’s internal process by
identifying, understanding, and
adapting exceptional practices from
other organization considered to best-
in-class.
Benchmarking
It set standards for operation
through measuring scientific, or
business methods, is a concept that
has developed a series of steps that
benefit industry or a business as a
whole.
Types of benchmarking
 Best practices – this is a benchmark
report where companies choose look at
company or companies that they aspire to
be like.
 Peer benchmarking – this is a
benchmark report where companies
choose look at other business very similar
to themselves. This allows companies to
make sure they are staying competitive
with similar business.
 SWOT – this is a type of
benchmarking report where companies
gather data by looking at strengths,
weakness, opportunities, and threats
help understand their climate.
 Collaborative benchmarking – this
is benchmarking whereby a number of
organization in the same industry pool
data so that all members can determine
where their organization stands in.