Engineering Management Lecture 3

Plan

It provides a methodical way of achieving desired results. In the implementation or execution of activities, the Plan serves as a useful guide.

Nickels et al.

Who said that Planning refers to the management function that involves anticipating future trends and determining the best strategies and tactics to achieve organizational objectives.

Aldag and Stearns

Who said that Planning is the selection and sequential ordering of tasks required to achieve an organizational goal.

Cole and Hamilton

Who said that Planning 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.

Planning

selecting the best course of action so that the desired result may be achieved. The desired result takes first priority and the course of action chosen is the means to realize the goal.

1. Top Management Level – Strategic Planning

2. Middle Management Level – Intermediate Planning

3. Lower or Line Management Level – Operational Planning

Planning by Management Level

Strategic Planning

Process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve these goals.

whole company

In strategic planning, The _________ is considered, specifically its objectives and current resources

Strategic Plan

The output of Strategic Planning is the ___________ which spells out the decision about the long-range goals and the course of action to achieve these goals.

Intermediate Planning

Refers to the process of determining the contributions that sub-units can make with allocated resources.

Intermediate Planning

The goals of a sub-unit are determined and a plan is prepared to provide a guide to the realization of the goals.

intermediate plan

The _________________ is designed to support the Strategic Plan.

Operational Planning

The process of determining how specific tasks can best be accomplished on time with available resources.

Operational Planning

This type of planning is a responsibility of lower management.

Operational Planning

It must be performed in support of the Strategic Plan and Intermediate Plan.

1. Setting organizational, divisional, or unit goals.

2. Developing strategies or tactics to reach those goals.

3. Determining resources needed, and,

4. Setting standards.

The Planning Process Steps:

a sense of direction.

The first task of the Engineer Manager is to provide

_______________

Goals

These are defined as the precise statement of results

sought, quantified in time and magnitude, where

possible.

Strategies

The ways to realize the goals are called _________ and these will be the concern of top management. The middle and lower management will adapt their own tactics to implement their plans.

Strategy

A _____________ may be defined as a course of action aimed at ensuring that the organization will achieve its objectives.

Tactic

A ___________ is a short-term action taken by management to adjust to negative internal or external influences

Tactical Plan

The decision about short-term goals and the courses of action are indicated in the ___________

Standards

____________ are set or defined to measure performance.

planning stage.

Standards should be established right at the ___________

standard

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

• Functional Area Plans

• Plans with Time Horizon

• Plans according to Frequency of Use

Types of Plans

• Company Mission, Vision, and Core Values

• Objectives or Goals

• Strategies

Parts of a Strategic Plan

Company or 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.

• Recognize the planning barriers

• Use of aids to planning

Planning may be successful if the following are observed:

1. Manager’s inability to plan

2. Improper planning process

3. Lack of commitment

4. Improper information

5. Focusing on the present at the expense of the future.

6. Too much reliance on the planning department

7. Concentrating only on the controllable variables

The Planning Barriers, according to Plunkett and Attner:

1. Gather as much information as possible.

2. Develop multiple sources of information.

3. Involve others in the planning process.

Aids to Planning