LESSON 3

PLANNING TECHNIQUES AND

TOOLS AND
THEIR APPLICATION
GANTT CHART
GANTT CHART
• Henry L. Gantt, American engineer and social scientist
• Developed as a production control tool in 1917
GANTT CHART
MILESTONE CHART
• an action or event marking a significant change or
stage in development.
MILESTONE CHART
CRITICAL PATH CHART
• A mathematical way of planning and scheduling for
programmed management to ensure a timeless and
minimum use of resources.
CRITICAL PATH CHART
DECISION TREES
• a complete graphical visualization of a possible
decision under conditions of risk which permits a
manager to make a diagram of outcome of different
alternatives
DECISION TREES
PAYBACK ANALYSIS
-comes in handy if a manager needs to decide
Whether to purchase a piece of equipment.
PAYBACK ANALYSIS
-is a mathematical method that finds out how
long the investment on an asset or project will
pay for itself.
PAYBACK ANALYSIS
Payback Period = Initial Investments /
Annual Net Cash Flow

Example
Payback Period = Initial Investments / Annual Net Cash Flow
Payback Period = Php 105M / Php25M = 4.2 years
SIMULATION
-is model building type of activity that tries to
mimic an existing situation in simpler manner.
TRAINING
-An effective training simulation presents a
realistic environment for users to experience
complex situations and try out new techniques.
PROCESS IMPROVEMENT
-Simulation models of business processes help
analysts examine business practices in order
to improve them.
PREDICTING OUTCOMES
- Using spreadsheets, one can simulate what
might happened if certain conditions
exists.
MANAGING RISK
- Manipulating data enables one to examine
how much he can invest or afford to lose
under certain simulated circumstances.
BENCHMARKING
- Is the process of calculating an organization’s
Internal processes by identifying, understanding,
and adapting exceptional practices from other
organizations considered to be best-in-class.
BENCHMARKING
1. Recognize the need for benchmarking, determine
the methodology to be used, and identify the participants
in the project.
2. Determine the most appropriate vehicle for data collection.
3. Validate all data to establish its accuracy and completeness
4. Report the analysis in a clear, concise, and easily under-
stood format via an appropriate medium.
5. Plan and implement improvement actions.
6. Institutionalize learning.
There are several types of benchmarking, which are:

1. BEST PRACTICES
- This is a benchmark report where companies
choose to look at a company or companies
that they aspire to be like
2. PEER BENCHMARKING
- This is a benchmark report where companies
choose look at other business very similar to
themselves.
3. SWOT
- This is a type of benchmarking report where
companies gather data by looking at
strength, weaknesses, opportunities,
and threats help understand their climate.
4. COLLABORATIVE BENCHMARKING

- This is benchmarking as a part of a group.

Many industries have associations they can
join.