PLANNING TECHNICAL ACTIVITIES

INTRODUCTION
If managing an organization is to be pursued vigorously, planning will
constitute the most important activity. Managers who plan are afforded with the
opportunity to carefully analyze situations which directly contribute to effective
decision making. The engineer manager, regardless of his management level,
will have to devote some of his time to planning. The higher the management
level the engineer manager is in, the more sophisticated his planning
activity becomes.
The 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.
Primary function of management.
Focuses on future course of action.
Specifies the objectives involving defining the organizations goals;
establishing an overall strategy to achieve those goals; developing plans
for organizational work activities.
It is the blue print of action and operation.
Planning Defined
Planning is the management function that involves anticipating future trends
and determining the best strategies and tactics to achieve organizational
objectives. Nickels and others
It is the selection and sequential ordering of tasks required to achieved an
organizational goal. Aldag and Stearns
Planning is that function of maner in which he decides in advance what he
will do. It is a decision making process of a special kind, its essence is futurity.
Hayness and Massie
PLANNING AT VARIOUS MANAGEMENT LEVELS
1. Top management level strategic planning
2. Middle management level intermediate planning
3. Lower management level operational planning
Strategic Planning
Strategic planning is the process of determining the major goals of the
organization and the policies and strategies for obtaining and using
resources to achieve those goals.
Strategic plan is the output of strategy planning which is the decision
about long range goals and the course of action to achieve these goals.
Parts of Strategic Plan: Company or corporate, objectives and goals, and
strategies
Intermediate Planning
Intermediate planning is the process of determining the contributions
that subunits can make with allocated resources.
Operational Planning
Operational planning is the process of determining how specific tasks
can best be accomplished on time with available resources.

THE PLANNING PROCESS

1. Setting organizational, divisional, or unit goals;
2. developing strategies or tactics to reach those goals;
3. determining resources needed; and
4. 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.
Goals are defined as precise statement of the results sought, quantified in
time and magnitude, where possible.
Developing Strategies or Tactics to Reach Goals
After determining the goals, the next task is to devise some means to
realize them. The ways to realize the goals are called strategies and these
will be the concern of top management.
Strategy is defined as a course of action aimed at ensuring that the
organization will achieve its objectives.
Tactic is a short term action taken by management to adjust to negative
internal or external influences.

Determining Resources Needed

To satisfy strategic requirements, a general statement of needed resources
will suffice. The specific requirements will be determined by the different
units of the company.
Setting Standards
A standard may be defined as a quantitative or qualitative measuring
device to help monitor the performances of the people, capital goods, or
processes.
TYPES OF PLANS
Functional Area Plans
1. Marketing Plan
The Executive Summary
Table of Contents
Situational Analysis and Target Market
Marketing Objectives and Goals
Marketing Strategies
Marketing Tactics
Schedules and Budgets
Financial Data and Control
2. Production Plan
The amount of capacity the company must have
How many employees are required
How much material must be purchased
3. Financial Plan
An analysis of the firms current financial condition as indicated
by an analysis of the most recent statements.
A sales forecast
He capital budget
The cash budget
A set promo forma financial statements
The external financing plan
4. Human Resources Plan
Personnel requirements of the company
Plans for recruitment and selection
Training plan
Retirement Plan
Plans with Time Horizons
1. Short range plans
2. Long range plans
Plans according to Frequency of Use
1. Standing Plans
Policies
Procedures
Rules
2. Single Use Plans
Budgets
Programs
Projects
MAKING PLANNING EFFECTIVE
1.
2.

Recognize the planning barriers

Use of aids to planning
Planning Barriers, (Plunkett and Attner)
1. Managers 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; and
7. concentrating only on the controllable variables.
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.

Prepared by Group 1
Ara Micah Alfaro, Shiela Mae Baurile and Sheena Ann Bradbury
Reference: Engineering Management by Roberto Medina