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The document discusses different types of planning including strategic planning, operational planning, short-range planning, and long-range planning. It defines each type of planning and provides examples of their key activities and purposes. Strategic planning sets the long-term direction of an organization, operational planning maps out department goals and budgets, short-range plans apply to a specific time frame of 6 months to 1 year, and long-range plans span 5 to 20 years and help organizations cope with their environment.

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Christian J Sebellino
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525 views23 pages

Planning-Engineering-Management For Posting

The document discusses different types of planning including strategic planning, operational planning, short-range planning, and long-range planning. It defines each type of planning and provides examples of their key activities and purposes. Strategic planning sets the long-term direction of an organization, operational planning maps out department goals and budgets, short-range plans apply to a specific time frame of 6 months to 1 year, and long-range plans span 5 to 20 years and help organizations cope with their environment.

Uploaded by

Christian J Sebellino
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 2:

Planning
ENGINEERING MANAGEMENT
 Planning is the first of essential managerial functions. Planning is
important as by nature it enquirers about organizational goals and
involves decision making about desired ways and means to achieve goals.
 Planning is the process by which managers establish goals and define the
methods by which these goals are to be attained. Planning involves
selecting missions and objectives and the actions to achieve them; it
requires decision making, which is choosing from among alternative
future courses of action.
Three Characteristics of Planning

1. Planning involves future.


- It helps us to take a peep into the future and decide in advance the way to deal with
the situations, which we are going to encounter in future.

2. Planning requires action.


- Planning is preparing a sequence of action steps to achieve some specific goal. If a
person does it effectively, they can reduce much the necessary time and effort of
achieving the goal.
3. There must be a personal or
organizational identification.
- Planning promotes team building and a spirit of cooperation. When the plan is completed
and communicated to members of the organization, everyone knows what their
responsibilities are, and how other areas of the organization need their assistance and
expertise in order to complete assigned tasks.
Four Specific Tasks of Planning

 1. Defining goals and establishing their priorities.


- When you are seeking to accomplish multiple goals at the same time, it is necessary
to prioritize and determine which goals are the most important and why. Doing so helps you to
maintain a clear focus on reaching the most important goals first and taking the steps to ensure
that you do.
 2. Stating and implementing policies which direct work activities to
planned target.
 3. Forecasting future events which can affect accomplishment of work.
 4. Making plans operational through detailed work activities and budgeting.
Importance of Planning
 1. To offset uncertainty and change.
- Planning allows the organization to determine
the constraints, specify the planned target, select the
number of options, monitor and control the
implementation so as to allow re-planning if necessary.
2. To focus attention to planned targets.
- planning unifies the work activities of
the different personnel of the organization to
act as one party.
 3. To gain economical and efficient operation.
- Planning minimizes costs. Its emphasis is on
efficient and effective operations and consistency of
procedures and methods.

4. To facilitate control.
- Managers cannot always check on the
accomplishments or failures of their subordinates. It is
important to have planned targets against which to measure
the performance of people or units.
Guidelines for Good Planning

 1. A plan should have specific planned targets. It should be clear about what it
intends to accomplish. It is important that much attention be devoted in defining
the results of the plan. The planned targets should be clearly understood by all
concerned in t heir implementation.

 2. A good plan should facilitate action. A plan without action remains a piece of
paper, a figment of the imagination or a statement of aspiration potentially alive
but inactive and dormant. Good plans lead to good actions.
 3. If many people are involved in the planning, coordination and
communication are very important. There is a need for constant
communication and revision to arrive at realistic results.

 4. Planning is the first function of engineering management and is


involved in all the other four functions of organizing, staffing, directing,
and controlling. Revisions along the way is required.
 5. Good plans are plans that can be constantly improved, redrafted,
and re-planned. Improvement, redrafting, and re-planning
recognize the reality that many of the basic assumptions upon
which a plan is based may change as environment factors or
resources also change. For instance, if a plan for five years is
completed, reviews must be conducted every year to revise the plan
accordingly without changing the basic planned targets or end
results desired.
 6. Planning may be delegated to a formal planning staff or group
within the company. Or it may be a full-time job of the planning
officer. Or it may be contracted to an outside consultant.

 7. All plans are tentative and interim. They are never final. Good
plans should be flexible, not rigid.
Kinds of Planning
1. Strategic planning

 - is an organizational management activity that is used to set priorities, focus energy and
resources, strengthen operations, ensure that employees and other stakeholders are
working toward common goals, establish agreement around intended outcomes/results,
and assess and adjust the organization’s direction in response to a changing environment.
It is a disciplined effort that produces fundamental decisions and actions that shape and
guide what an organization is, who it serves, what it does, and why it does it, with a focus
on the future. Effective strategic planning articulates not only where an organization is
going and the actions needed to make progress, but also how it will know if it is
successful.
 the process of deciding the planned targets of the organizations, the resources needed to attain
targets, the policies that govern the acquisition, the use and disposition if this resources.
 Strategic planning is important to an organization because it provides a sense of direction and
outlines measurable goals. Strategic planning is a tool that is useful for guiding day-to-day
decisions and also for evaluating progress and changing approaches when moving forward.
 It sets the long term direction of the organization in which it wants to proceed in the future.
 It involves the analysis of various environmental factors and the competition
 It focuses on how to achieve goals three to five years in the future.
Activities in Strategic Planning

 Choosing company planned targets – deciding what’s best for the customer
 Planning the organization – setting goals to meet or exceed employment opportunity.
 Setting personal policies
 Setting financial policies – refers to the policies related to the regulation, supervision and
oversight of the financial and payment systems.
 Setting marketing policies - the marketing policy of the enterprise aims the productions
the items only of high quality. Directs toward maximal satisfaction of customer’s demand
and guaranteeing the highest of client’s service.
2. Operational Planning

 the process of assuring that specific projects are carried out effectively and efficiently.

 It’s future-oriented: it maps out department budgets and goals to propel the success of the strategic plan with
specific, team-based activities for the next 1-3 years.
 Operational planning is built to support the objectives for each department. This includes defining the roles of each
team member, the goals each team has to better support the strategic plan of the organization and the budget and
resources it needs to make it happen. For example, the budget for your strategic plan comes from your strategic
budget, while your operational budget comes from your team’s annual budget.
 is what happens when a team or department draws from a company-wide strategic plan and puts it under a
microscope. It's future-oriented: it maps out department budgets and goals to propel the success of the
strategic plan with specific, team-based activities for the next 1-3 years.
Activities in Operational Planning

 Controlling hiring
 Monitoring the implementation of policies – is a
process by which stakeholders follow and assess policies.
 Controlling credit extension
 Scheduling production
Short- and Long-Range Planning

 Short-range plan
- are plans for a short period of time, say six months to one
year. Generally apply to a specific time frame in w/c a specific
series of operations will be carried out, assessed and measured.
 Long-range plan
- are plans for long period of time, say five to twenty years.
Long-range strategic planning is the process by which
organizations cope with their environment.
They do so by:

 1. Analyzing the opportunities and risks of the environment sector or markets in


which they operate.
 2. Analyzing the sources, capabilities, and distinctive competence of the
organization ang choosing a role.
 3. Defining priorities, commitments and planned targets of the organization.
 4. These external opportunities, internal capability, mission commitments are
matched against each other to arrive at a set of strategies. Strategies are long-
range at their scope, coverage, and time, and relate the organization to the outer
environment enabling it to cope with competition and changes
The Planning Approach

 1. Select the planned targets. This is the most critical step in the strategic planning
process.
 2. analyze the environment.
 3. Establish a measurable planned targets. It is important to put up performance indicator;
this will show whether performance is according to plans or not.
 4. Sub-units develop their own plan. Once top management states the basic long term
goals, then the lower level managers in turn decide the objective of their own sub-units.
There is integration from top to bottom and vice versa.
 5. Compare lower level plan with strategic plan.
 6. Close the gap.
 7. Implement the strategic plan.
 8.Measure and control the program of the plan. It is
important to have standards and performance indicators.

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