Republic of the Philippines

PARTIDO STATE UNIVERSITY

Goa, Camarines Sur

College of Engineering and Technology

Module 3.0
PLANNING TECHNICAL ACTIVITIES
Name of Student: ___________________ Week Number: Week 4
Course Code: E-9
Course Title: Engineering Management

I. Objectives
 Discuss Planning as a Management Function
 Describe planning of technical activities as an engineering manager
 Enumerate process of Planning technical activities
 Identify ways on how to make effective plans
II. Learning Activity
Watch a short animation video about planning.
https://www.youtube.com/watch?v=kxyPkr6iWjg

III. Lessons

“Good Plan= Great Success”

Robbie Christine R. Bathan, https://ourhappyschool.com/education/good-plan-great-success-
planning-technical-activities
Nature of Planning
Planning

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 Republic of the Philippines
PARTIDO STATE UNIVERSITY
Goa, Camarines Sur

- Refers to the management function that involves anticipating future trends and determining the best
strategies and tactics to achieve organizational objectives. Nickels, et. Al
- The selection and sequential ordering of tasks required to achieve an organizational goal. Aldag and
Stearns
- 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. Cole and Hamilton
- For a plain and simple language, planning is thinking ahead.
- selecting the best course of action so that the desired result may be achieved. The desired result
takes priority and the course of action chosen is the means to realize the goal.
Plan
- serves as a useful guide in the implementation of every activity
- the output of planning, provides a methodical way of achieving desired results.
- Without the plan, some minor tasks may be afforded major attention which may, later on, hinder the
accomplishments of activities.

Example of not having a plan from Medina, R.G., 1999, Engineering Management, 1st edition,
p.44
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, it involved more than double the
amount spent by other firms in hiring the same number of people. When an inquiry was
made, it was found out that the manager committed some errors in judgment. For instance,
he used an expensive advertising layout in a newspaper when a simple message will do. Also,
it was found out that the absence of a hiring plan contributed to the high cost of hiring.

Planning Technical Activities

“Managers who plan are afforded with the opportunity to carefully analyze situations which
directly contribute to effective decision-making.”

“The higher the management level the engineer manager is in, the more sophisticated his
planning activity becomes.
PLANNING- AT Medina,
VARIOUSR.G.,
MANAGEMENT LEVEL Management, 1st edition, p.43
1999, Engineering

PLANNING HORIZON

Strategic Planning (one to

ten years)

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 Republic of the Philippines
PARTIDO STATE UNIVERSITY
Goa, Camarines Sur

TYPES OF PLANNING
Intermediate planning (six
months to two years)
CEO,
President,
Vice Presidents,
Top Management General Manager, Operational planning (one
Division Heads Top
week to one year
management

Middle Functional Mangers, Product

Line Managers, Division
Management Heads

Lower
Unit Managers, First Line Supervisors
Management

Types of Planning on different levels of Management

Strategic Planning
- refers to the process of determining the major goals of the organization and the policies and strategies
for obtaining and using resources to achieve those goals.
- Determines where the company is going and how can it go there.
- the whole company is considered, specifically its objectives and current resources
- The output of strategic planning is the strategic plan which spells out “the decision about long-range
goals and the course of action to achieve these goals.”
- The top management of any firm is involved in this type of planning.
- Identifying the companies mission and vision is the first step in strategic planning
Vision statement- describes graphically where the company sees itself in the future
Mission statement- it states the company’s purpose, how they will do it to serve their clients/customer
- Analysis of the company’s current
status is needed to develop future
strategies
o SWOT Analysis - Strength,
Weaknesses, Opportunities
and Threats analysis is a
common tool in analyzing the
company’s status

o Gap Analysis -
techniques used after the SWOT analysis to analyze the company’s current status with
respect to where it is in the future
Intermediate Planning

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 Republic of the Philippines
PARTIDO STATE UNIVERSITY
Goa, Camarines Sur

- “the process of determining the contributions that subunits can make with allocated resources.”
- 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.
- This type of planning is undertaken by middle management.
Operational Planning
- refers to “the process of determining how specific tasks can best be accomplished on time with
available resources.”
- It must be performed in support of strategic plan and the intermediate plan.
- This type of planning is a responsibility of lower management

The Organization and Types of Planning Undertaken

PLANNING PROCESS
The process of planning consists of various steps depending on the management level that
performs the planning task. Generally, however, planning involves the following:

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 Republic of the Philippines
PARTIDO STATE UNIVERSITY
Goa, Camarines Sur

•setting organizational, divisional, or unit goals

1

•developing strategies or tactics to reach those goals

2

•determining resources needed

3

•setting standards.
4

Setting Organizational, Divisional or Unit Goals

- The first task of the manager is to provide a sense of direction to his firm (if he is the chief
executive), to his division (if division chief), or to his unit (if a supervisor).
- If everybody in the firm (or division or unit, as the case
maybe) is aware of the goals, there is a big chance that everybody will contribute his share in
the realization of such goals.
Goals - “precise statement of results sought, quantified in time and magnitude, where possible.”

To attain a return on
investment of 25%
Company

To increase the number of the

projects undertaken by the
company
Division

To increase the number of

Unit
project engineers

Examples of Goals, By Organizational Level

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.
- The middle and the lower management will adapt their own tactics to implement their plans.
Strategy - may be defined as a “course of action aimed at ensuring that the organization will

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 Republic of the Philippines
PARTIDO STATE UNIVERSITY
Goa, Camarines Sur

achieve its objectives.”

Example of strategy from Medina, R.G., 1999, Engineering Management, 1st edition, p.50
The decision of a construction firm’s management to diversify its business by engaging
also, in the trading of construction materials and supplies.
When the above-mentioned strategy is implemented, it may help the construction firm realize
substantial savings 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.

Tactic - 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 courses of action are indicated in the tactical plan.

Example of tactic from Medina, R.G., 1999, Engineering Management, 1st edition, p.50
An example of a tactic is the hiring of contractual workers to augment the company’s current
workforce.

Determining Resources Needed

- When particular sets of strategies or tactics have been devised, the manger 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 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 mean loss of opportunities for
maximizing income.
- 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.

To illustrate determining resources needed from Medina, R.G., 1999, Engineering

Management, 1st edition, p.51
Suppose the management of a construction firm has decided, in addition to its current
undertakings, to engage in the trading of constructions materials and supplies. A general
statement of required resources will be as follows: A new business unit 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 persons shall be recruited for the
Settings
purpose.standards
- The standards for measuring performance may be set at the planning stage.
- When actual performance does not match with the planned performance, corrections may be made
or reinforcements given.
Standard - defined as “a quantitative or qualitative measuring device designed to help
monitor the performances of people, capital goods, or processes.”

Example of standard from Medina, R.G., 1999, Engineering Management, 1st edition, p.52
An example of a standard is the minimum numbers of units that must be produced by a
Engineeringworker
Management Page 6 of 11

per day in a given work situation.

 Republic of the Philippines
PARTIDO STATE UNIVERSITY
Goa, Camarines Sur

TYPES OF PLANS
Plans may be classified in terms of the following:
1. Functional Area Plans
Plans may be prepared according to the needs of the different functional areas. Among the types of
functional area plans are the following:
1. Marketing Plan – this is the written document or blueprint for implementing and
controlling an organization’s marketing activities related to a particular marketing
strategy.
2. Production plan – this a written document that states that the quantity of output a
company must produce in broad terms and by product family.
3. Financial Plan – it is a document that summarizes the current financial situation of the
firm, analyzes the financial needs, and recommends a direction for financial activities.
4. Human resource management plan – it is a document that 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.
2. 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.
3. Plans According to Frequency Use
Plans may be classified as:
1. Standing Plans
These are plans that are used again and again, and they focus on managerial situations that
recur repeatedly.
Classified as:
1. Policies – they are broad guidelines to aid managers at every level in making decisions about
recurring situations or function.
2. Procedures – they are plans that describe the exact series of actions to be taken in a given
situation.
3. Rules – they are statements that either require or forbid a certain action.

2. Single-Use Plans
Classified As:
1. budgets

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 Republic of the Philippines
PARTIDO STATE UNIVERSITY
Goa, Camarines Sur

budget - “a plan which sets forth the projected

expenditure for a certain activity and explains where the required funds will come from.”
Weston and Brigham,
2. programs
program is a single-use plan use designed to coordinate a large set of activities
3. projects
project is a single-use plan that is usually more limited in scope than a program and is
sometimes prepared to support a program

TYPES OF PLANS

Functional Plans with Plans with Varied

Area Plans Time Horizon Frequency Use

Marketing Short- Single use Single use

Plan range plan plan plan

Production long-range
Plan plan

Financial
Plan policies rules
Procedure

Human
resource
plan
budge program Project
t

PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS

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 included
ion the marketing plan.
1. The Executive Summary – which presents an overall view of the marketing project and
its potential.
2. Table of Contents
3. Situational Analysis and Target Market
4. Marketing Objectives and Goals
5. Marketing Strategies

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 Republic of the Philippines
PARTIDO STATE UNIVERSITY
Goa, Camarines Sur

6. Marketing Tactics
7. Schedules and Budgets
8. Financial Data and Control;
The contents of the Production Plan
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 material must be purchased
The Contents of the Financial Plan
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 proforma (or projected) financial statements
6. The external financing plan
Contents of the Human Resources Plan
1. Personnel requirements of the company
2. Plans for recruitment and selection
3. Training Plan
4. Retirement Plan
PARTS OF THE 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, services, and markets.”

MAKING PLANNING EFFECTIVE

Planning is done so that some desired results may be achieved. At times, however, failure in planning
occurs.
Planning may be made successful if the following are observed:
1. recognize the planning barriers
2. use of aids to planning
The planning barriers, according to Plunkett and Attner, are as follows:
1. manager’s inability to plan
2. improper planning process
3. lack of commitment to the planning process
4. improper information

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 Republic of the Philippines
PARTIDO STATE UNIVERSITY
Goa, Camarines Sur

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
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
IV. ASSESSMENT
1. Discuss what you understand after watching the video animation on planning
2. Upon watching the video and reading the module discuss why planning is an important activity of a manager.
3. Develop a SWOT analysis of yourself and make a plan on how you will address your weaknesses.

V. REFERENCES
Schermerhorn, John Jr. R., Management for Productivity, 2nd Edition, New York: John Wiley and Sons, 1986
Morse Lucy C., Babcock, Daniel L., Managing Engineering and Technology, 6th Edition, Pearson Education Limited
2014
Medina, R.G., 1999, Engineering Management, 1st edition
Weston, Fred J and Brigham, Eugene F., Essentials of managerial Finance, 9th Edition, Chicago: The Dryden Press,
1990, p. 362
Aldag and Stearns, p. G-17
Dilworth, James, B., Production and Operations management, Third Edition, New York: random House, 1986, p. 142
Brigham, Eugen F, Gapenski, Louis, C., Financial management, Theory and Practice, 6th Edition, New York: The Dryden
Press, 1991, p. 921

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