Module 3 Planning Technical Activities

Module No.
PLANNING TECHNICAL
ACTIVITIES
ENGINEERING MANAGEMENT
ENG’R. ISAGANI C. FLORES

Department of Engineering and Architecture
Module 3 PLANNING TECHNICAL ACTIVITIES
BATAAN HEROES COLLEGE
Module Description
This module deals with the planning activities of an organization undertaken at various
management levels which is required if objectives and goals of the organization are to be
successfully achieved. It includes the steps in the planning process as well as the planning
barriers and how to overcome them.
Objectives of the module :

After finishing this module, the student must be able to :
1. define what an effective planning is.
2. different planning activities at various management levels.
3. identify the steps in the planning process
4. describe the planning barriers and their remedies.
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 effectively 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. Why and how this is so shall be described in this
chapter.
1. THE NATURE OF THE PLANNING

There are many instances when managers are overwhelmed by various activities which at
times becloud his judgment. This must be expected since anybody who is confronted by several
situations happening simultaneously will lose sight of the more important concerns. To minimize
mistakes in decision-making, planning is undertaken.
Module 3 Planning Technical Activities

Eng’r. Isagani C. Flores Page 1
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. Without the plan,
some minor tasks may be afforded major attention which may, later on, hinder the
accomplishment of objectives.
An example of the difficulty of not having a plan is illustrated below.
The management of an engineering firm was able to identify the need to hire additional
three employees. The manager proceeded to invite applicants, screen them, and finally hired
three of them. When the hiring expense report was analyzed was, it involved more than double
the amount spent by another firms in hiring thee same number of people.
When an inquiry was made, it was found out that the manager committed some errors of
judgment. For instance, he used an expensive advertising layout of newspaper when a simple
message will do.
Also, it was found that the absence of a hiring plan contributed to the high cost of hiring.
2. PLANNING DEFINED
Various expects define planning in various ways, all of which are designed to suit
specific purposes.
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. “This definition is useful because it relates the future to what could be
decided now.
Aldag and Stearns, on the other hand, planning as “the selection and sequential ordering
of tasks requires to achieve an organizational goal”. This definition centers on the activity
requires to accomplish the goals.
The definition of Cole and Hamilton provides a better guide on how effectively perform
this vital activity. According to them is “deciding what will be done, who will do it, where, when
and how it will be done, and the standards to which it will be done”.

For our purpose, it will suffice to define planning as selecting the best course of action so
that the desired result may be achieved. It must be stress that the desired result take first priority
and the course of action chosen is the means to realize the goal.
3. PLANNING AT VARIOUS MANAGEMENT LEVELS

Since engineer managers could be occupying, position in any of the various management
levels, it will be useful for them to know some aspects of planning undertaken at the different
management levels.
Planning activities undertaken at various levels are as follows:
1. Top management level – strategic planning
2. Middle management level – intermediate planning
3. Lower management level – operational planning
3.1 STRATEGIC PLANNING

The term strategic planning refers to the process of determining the major goals of the
organization and the policies and strategies obtaining and using resources to achieve those goals.
The top management of any firm is involved in this type of planning.
In strategic planning, the whole company in considered, specially its objectives and
current resources. The output of strategic planning is the strategic plan which spells out “the
decision about the long-range goals and the course of action to achieve these goals”.
3.1.1 PARTS OF THE STRATEGIC PLAN

The strategic plan must contain the following:
1. Company or corporate mission
2. Objective 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 organization in terms of product, services, and markets.

3.2 INTERMEDIATE PLANNING

Intermediate planning refers to the “process of determining the contributions that
subunits can make with allocation resources. “The type of planning is undertaken by middle
management.
Under intermediate planning, the goals of a subunit are determined and a plan is prepared
to provide a guide to the realization of the goals. The intermediate plan is designed to support the
strategic plan.
3.3 OPERATIONAL PLANNING

The term operational planning refers to “the process of determining how specific task can
best be accomplished on time with available resources. “This type of planning is a responsibility
of lower management. It must be perform in support of the strategic plan and the intermediate
plan.
Fig. 3.1 Types of Planning

Fig. 3.2 The Organization and Types of Planning Undertaken
4. THE PLANNING PROCESS

The process of planning consists of various steps depending on management level that
performs the planning task. Generally, however, planning involves the following:
1. Setting organization, divisional, or unit goals
2. Developing strategies or tactics to reach those goals
3. Determining resources needed and
4. Setting standards.
4.1 Setting Organizational, Divisional, or Unit Goals

The first task of the engineer manager is to provide a sense of direction to his firm (if he
is the chief executive), to his division (if he heads a division), or to his unit (if he is a supervisor).
The setting of goals provide an answer to the said concern. If everybody in the firm (or division

or unit, as the case may be) is aware of the goals. There is a big chance of that everybody will
contribute his share in the realization of such goals.
Goals may defined as the “precise statement of result sought, quantified in time and
magnitude, where possible. “Example of the goals are provided in figure 3.3
Fig. 3.3 Examples of Goals , by Organizational Level
4.2 Developing Strategies or Tactics to Reach Goals

After determining the goals, the next task is to advise some means to realize them the
ways to realize the goals are called strategies and these will be the concern of top management.
The middle and 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”.
An example of strategy is as follows:
The decision of a construction firm’s management to diversify its business by engaging
in the trading of construction materials and supplies.
When the above mentioned strategy is implemented, it may help the construction firm
realize substantial saving in the material and supply requirements used in their construction

activities. The firm will also have greater control in the timing of deliveries of materials and
supplies.
A tactic is a short-term action taken by management to adjust to negative internal or
external influences. They are formulated and implemented in support of the firm’s strategies.
The decision about short-term goals and the course of action are indicated in the tactical plan.
An example of a tactical is the hiring of contractual workers to augment the company’s
current work place.
4.3 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 resources requirements are currently available, they must be specified.
The quality and quantity of resources needed must be correctly determined. Too much
resources in terms of either quality or quantity will be wasteful. Too little will means loss of
opportunity for maximizing income.
To satisfy the strategy requirements, a general statement of needed resources will suffice.
The specific requirements will be determined by th different units of the company.
To illustrate:
Suppose the management of a construction firm has decided, in addition to its current
undertakings, to engage in trading of construction materials and supplies.
A general statement of requirement of resources will be as follows: A new business will
be organized to deal with the buying and selling of construction materials and supplies. The
amount of Php 50 million shall be set aside to finance the activity. Qualified person shall be
recruited for the purpose.
4.4 Setting Standards

The standards in measuring performance may be set at the planning stage. When the
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 monitoring the performances of the people, capital good, or processes”.
An example of a standard is the minimum number of unit that must be produced by a
worker per day in a given work situation.
5. TYPES OF PLANS
Plans are different types. They may be classified in terms of functional areas, time
horizon, and frequency of use.
Fig. 3.4 Types of Plans
5.1 Functional Area Plans

Plans may be prepared by according to the needs of the different functional areas. Among
the types of functional areas plan are the following:

1. Marketing Plan – this is written document or blueprint for implementation and

controlling an organization’s marketing activities related to a particular marketing
strategy.
2. Production Plan – this is a written document that states the quantity output of company
must produce in broad terms and by production family.
3. Financial Plan – this is a document that summarize the current financial situation of the
firm. Analyze financial needs, and recommends a direction for financial activities.
4. Human Resources management Plan – it is a document that indicates the human resource
need of company detailed in terms of quantity and quality and based on the requirements
of the ‘s company’s strategic plan.
5.1.1 The Contents of the Marketing Plan

The structure and content of marketing plans vary depending on the nature of the
organizations adapting them. William Cohen maintains that the following must be include in the
marketing plan:
1. The Executive Summary – which presents an overall view of the marketing project and
its potentials.
2. Table of Contents
3. Situational Analysis and Target Market
4. Marketing Objectives and Goals
5. Marketing Strategies
6. Marketing Tactics
7. Schedule and Budgets
8. Financial Data and Control

Figure 3.5 an Example of a Marketing Plan Schedule
UNIT AMOUNT
PRODUCT A
January 85,000 Php 430,500

February 90,000 455,500
March 95,00 481,500
Total 1st Quarter 270,000 Php 1,367,500
Total 2nd Quarter 260,00 1,317,000
Total 3rd Quarter 190,000 962,500
Total 4th Quarter 280,000 1,419,000
Total A 1,000,000 Php 5,066,000
UNIT AMOUNT
PRODUCT B
January 34,000 Php 69,900

February 41,000 84,500
March 45,000 92,600
Total 1st Quarter 120,000 Php 247,000
Total 2nd Quarter 95,000 278,000
Total 3rd Quarter 95,000 195,500
Total 4th Quarter 150,000 308,500
Total B Php 1,029,00
Total A + B Php 6,095.00
5.1.2 The Contents of the Production Plans

The production plan must contain the following:

1. The amount of capacity the company must have
2. How many employees are required
3. How much materials must be purchased
Figure 3.6 an Example of a Production Plan Schedule
Buenavista Manufacturing Company

Detailed Production Plan
For the Year Ending December 31, 1998
Required Additional
Less Initial of
for Inventory of Total Units to be
Inventory of
sales Finished Required Finished Goods Complete
Goods
PRODUCT A
January 85,0000 225,000 310,000 240,000 700,000
February 90,000 215,000 305,000 225,000 80,000
March 95,00 200,000 295,000 215,000 80,000
Total 1st Quarter 270,000 200,000 470,000 240,000 230,000
Total 2nd Quarter 260,00 180,000 440,000 200,000 240,000
Total 3rd Quarter 190,000 220,000 410,000 180,000 230,000
Total 4th Quarter 280,00 200,000 480,000 220,000 260,000
Total 1,000,000 200,000 1,200,00 240,000 960,000
PRODUCT B
January 34,000 100,000 134,000 100,000 34,000
February 41,000 95,000 136,000 100,000 36,000
March 45,000 88,000 133,000 95,000 38,000
Total 1st Quarter 120,000 88,000 208,000 100,000 108,000
Total 2nd Quarter 135,000 93,000 228,000 88,000 140,000
Total 3rd Quarter 95,000 125,000 220,000 93,000 127,000
Total 4th Quarter 150,000 120,000 270,000 125,000 145,000
Total 500,000 120,000 620,000 100,000 520,000

5.1.3 The Contents of Financial Plan

The components of the financial plan are as follows :
1. An analysis of the firm’s current financial condition as indicated by an analysis of the
most recent statements
2. A sales forecast
3. The capital budget
4. The cash budget
5. A set of pro forma (or projected) financial statement
6. The external financing plan
5.1.4 Contents of Human Resources Plan

The human resources plan must contain the following:
1. Personal requirements of the company
2. Plans for recruitment and selection
3. Training plan
4. Retirement plan
5.2 Plans With Time Horizon

Plans with time horizon consist of the following:
1. Short-range Plans – these are plans intended to cover a period of less than one year. First-
line supervisors are mostly concerned with these plans.
2. Long-range Plans – these are plans covering a time span of more than one year. These are
mostly undertaken by middle and top management.
5.3 Plans According to Frequency of Use

According to frequency of use may be classified as:
1. Standing plans and
2. Single-use plans.

5.3.1 Standing Plans. These are plans that are used again and again, and they focus on
managerial situations that recur repeatedly.
Standing plans may be further classified as follows:
1. Policies – there are broad guidelines to aid manager at every level in making decisions
about recurring situation or function
2. Procedures – there are plans that describe the exact series of actions to be taken in a given
situation.
3. Rules – there are statements that either require or forbid a certain action.
5.3.2 Single-Use Plans. These plans are specifically develop to implemented courses of
action that are relatively unique and are unlikely to be repeated.
Single-Use plans may be further classified as follows:
1. Budgets
2. Programs and
3. Projects.
A budget, according to Weston and Brigham, is “a plan which sets forth the projected
expenditures for a certain activity and explains where the required funds will come from.
A program is a single-use plan designed to coordinate a large set of activities.
A project is a single-use plan that is usually more limited in scope than a program and is
sometimes prepared to support a program.
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 organization in terms of product, services, and markets.
6. MAKING PLANNING EFFECTIVE
Planning is done so that some desired results may be achieve. At times, however, failure
in planning occurs.

Planning may be made successful if the following are observed:

1. Recognizing the planning barriers
2. Use of aids to planning
6.1 The planning Barriers,

According to Plunkett and Attner, are as follows :
1. Manager’s ability to plan
2. Improper planning process
3. Lock of commitment to the planning process
4. Improper information
5. Focusing on the present at expense of the future
6. Too much reliance on the planning department
7. Concentrating on only controllable variables
6.2 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
Review Questions
1. How may “planning “ be defined?
2. What planning activities are undertaken at various management levels?
3. What are the steps in the planning process?
Assesment
1. Why is planning an important activity for engineer managers ?
2. Illustrate by example how an organization’s objectives is hindered by not having a plan?

3. Show how the planning processes contribute to the realization of an organizations

objectives.
Assessment Tool
This will help your instructor to check your output. In this module, holistic rubric is used
to determine and measure your learning through the activities set by your instructor. A
holistic rubric is the most general kind. It lists three to five levels of performance along
with a broad description of the characteristics that define each level. (Gonzales, 2014)
Rubric No. 3 : Freestyle Activity

Criteria Indicators %
Knowledge of How well does the student understand the 50
the concept concept? How well does the presentation
reflect this understanding?
In what way, does the student organize the 20
Organization covered information chronologically and
meaningfully?
Creativity How well does the student inject creativity in 30
his/her presentation ?
Rubric No. 4 : Answering and Justification

Value Indicators
The student’s answer with organized supporting details/ examples
5 that shows higher intellectual competencies (critical, analitycal,
and creative thinking, and multiple forms of expression.)
The student justified well his/her answer with little evidences that
3 result to moderate intellectual competencies.
There is no clear or detailed explanation in answer to the question.
2 The answer is considered as fragment.
Reference :
1. Engineering Management by Roberto G. Medina
Answers to Review Questions

1. Planning may be defined as selecting the best course of action so that the desired result
may be achieved.
2. a. top management level - strategic planning

b. middle management level - intermediate planning
c. lower management level - operational planning
3. a. setting organizational, divisional, or unit goals

b. developing strategies or tactics to reach those goals
c. determining resources needed
d. setting standards


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Module No.

ENG’R. ISAGANI C. FLORES

Objectives of the module :

1. THE NATURE OF THE PLANNING