PLANNING

ENGINEERING MANAGEMENT EMGT311 – MODULE 4

 UNIT EXPECTED OUTCOMES
At the end of this unit, the students are expected to:

1. Define planning and understand the importance of planning

in Engineering Management
2. Identify and describe the processes of Planning
3. Understand the types of plans.
4. Learn how to make effective planning.

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 PRESENTATION OUTLINE
1. The Nature of Planning
2. Planning Defined
3. Planning at Various Management Levels
4. The Planning Process
5. Types of Plans
6. Making Planning Effective

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1 NATURE OF PLANNING
 NATURE OF PLANNING
A plan, which is the output
of planning, provides a
methodical way of achieving
desired results. In the
implementation of activities,
the plan serves as a useful
guide.
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Without the plan,
some minor tasks may
be afforded major
attention which may,
later on, hinder the
accomplishment of
objectives.
2 PLANNING DEFINED
 PLANNING DEFINED

“ Planning, according to Nickels and others, refers to “the

management function that involves anticipating future
trends and determining the best strategies and tactics to
achieve organizational objectives.”

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 PLANNING AT VARIOUS
3 MANAGEMENT LEVELS
 PLANNING AT VARIOUS
MANAGEMENT LEVELS
TOP OPERATIONAL
INTERMEDIATE
STRATEGIC PLANNING
MANAGEMENT LEVEL PLANNING

MIDDLE referstoto“the
It refers “the
the process
process
processofof of
determining
determiningthe major
contributions
how goals of
specific
MANAGEMENT LEVEL the
that organization
sub-units
tasks can bestcan and
bemake
the with
policies
allocated and
resources
accomplished strategies
on timeforwith
LOWER
LOW obtaining and using resources
available resources
MANAGEMENT LEVEL to achieve those goals.

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 PLANNING AT VARIOUS
MANAGEMENT LEVELS

Chief Executive TOP Strategic Planning

Officer MANAGEMENT 1 to 10 years
Functional Manager
President MIDDLE Intermediate Planning
Product Line Managers
Vice Presidents MANAGEMENT 6 months to 2 years
Department Heads
General
Unit Manager
Managers LOWER
Division MANAGEMENT Operational Planning
First line Heads
Supervisors
1 week to 1 year
4 PLANNING PROCESS
 PLANING PROCESS
1 2 33 4

Setting
Developing
Organizational,
Standards
Determining Strategies
Resources
Divisional
or Tactics to
Needed or reach
Unit Goals
Goals
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 PLANING PROCESS
1 2 3 4
Setting organizational, divisional or unit goals
The first task of the engineer manager is to provide a sense of
direction to his firm.

The setting of goals provides an answer to the said concern.

If everybody in the firm is aware of the goals, there is a big chance that
everybody will contribute his share in the realization of such goals.
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 GOALS DEFINED

“ Goals may be defined as the “precise

statement of results sought, quantified in time
and magnitude, where possible.”

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 PLANING PROCESS
1 2 3 4
Developing Strategies or Tactics to reach those goals
After determining goals, the next task is to devise some means to
realize them.

The ways to realize the goals are strategies and these will be the
concern of top management.

The middle and lower management will adapt their own tactics to
15 implement the plans of top management.
 STRATEGY DEFINED

“ A strategy may be defined as “a course of

action aimed at ensuring that the organization
will achieve its objectives.”

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 TACTIC DEFINED

“ A tactic is a short-term action taken by

management to adjust to negative internal or
external influences.

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 PLANING PROCESS
1 2 3 4
Determining Resources Needed
When particular sets of strategies or tactics have been devised, the
engineer manager will, then, determine the human and nonhuman
resources required by such strategies or tactics.
Even if the resource requirements are currently available, they must
be specified.
The quantity and quality of resources needed must be correctly
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 PLANING PROCESS
1 2 3 4
Setting Standards
The standards for measuring performance may be set at the planning
stage.
When actual performance does not match with planned performance,
correction may be made or reinforcements will be given.

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 STANDARD DEFINED

“
A standard may be defined as “quantitative or
qualitative measuring device designed to help
monitor the performances of people, capital
goods, or processes.”

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5 TYPES OF PLAN
 TYPES OF PLAN
FUNCTIONAL AREA PLANS WITH TIME PLANS ACCORDING
PLANS HORIZON TO FREQUENCY OF
USE
◇ Marketing Plan ◇ Short Range Plans
◇ Production Plan ◇ Long Range Plans ◇ Standing Plans
◇ Financial Plan ◇ Single Use Plans
◇ Human Resource
Management Plan
 FUNCTIONAL AREA PLANS
Marketing Plan Production Plan
This is the written document A quantity of output a
or blueprint for company must produce in
implementing and broad terms and by
controlling an organization’s products family.
marketing activities related
to a particular marketing
strategy.

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 FUNCTIONAL AREA PLANS
MARKETING PLAN
HUMAN RESOURCE
MANAGEMENT PLAN
Indicates the human resource
needs of a company detailed in
terms of quantity and quality
and based on the requirements
of the company’s strategic
plan.
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PRODUCTION PLAN
FINANCIAL PLAN
Summarizes the current
financial situation of the
firm, analyzes financial
needs, and recommends a
direction for financial
activities.
 PLANS WITH TIME HORIZON

SHORT RANGE PLANS LONG RANGE PLANS

Plans intended to cover a Plans that cover a time

period of less than one span of more than one
year. First - line year. These are mostly
supervisors are mostly undertaken by middle
concerned with these and top management.
plans.

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 PLANS ACCORDING TO
FREQUENCY OF USE

STANDING PLANS SINGLE USE PLANS

These are plans that are These plans are specifically
used again and again and developed to implement courses of
they focus on managerial action that are relatively unique
situations that recur
and are unlikely to be repeated.
repeatedly.
 PLANS ACCORDING TO
FREQUENCY OF USE
RULES
They are statements that either
require or forbid a certain action.
STANDING PLANS
POLICIES They are broad guidelines to aid managers at every level in
making decisions about recurring situations or functions.
PROCEDURES They are plans that describe the exact series of action to be
taken in a given situation.
 PLANS ACCORDING TO
FREQUENCY OF USE
BUDGET
A plan which sets forth the projected
expenditure for a certain activity and SINGLE USE PLANS
explains where the required funds will
come from. PROJECT
PROGRAM usually more limited in scope than a
A single-use plan designed to program and is sometimes prepared to
coordinate a large set of activities. support a program.
 PARTS OF STRATEGIC PLAN
1. Company or corporate mission
2. Objectives or goals
3. Strategies

Company of corporate mission refers to the “Strategic Statement that

identifies why an organization exists, its philosophy of management, and
its purpose as distinguished from other similar organizations in terms of
products, service and markets.

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 MAKING PLANNING
6 EFFECTIVE
 Planning may be made successful if
the following are observed:

1. Recognize the planning barriers

2. Use of aids to planning

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 According to Plunkett and Attner,
planning barriers are:
1. Manager’s inability to plan
2. Improper planning process
3. Lack of commitment to the planning process
4. Improper information
5. Focusing on the present at the expense of the future
6. Too much reliance on the planning department
7. Concentrating on only the controllable variables

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 Among the aids to planning that
may be used are:

1. Gather as much information as possible

2. Develop multiple sources of information
3. Involve others in the planning process

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 Thanks!
Any questions?

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