lesson 3 planing for Industrial Engineering

lesson 3 planning

1. Planning
PLANNING DEFINED
PLANNING ACTIVITIES
TYPES OF PLAN

2. Objectives:
The students should be able to
Explain the potential benefits of planning
Identify potential drawbacks to planning
Define planning
Distinguishes between different types of plans
Outline the steps in the strategic management process
Explain SWOT analysis

3. Why should we plan?

4. Benefits of Planning
1.Provides direction

2.Reduces the impact of change

3.Minimizes waste and redundancy

4.Sets the standards to facilitate control

5. Arguments against formal
planning
1.Planning may create rigidity
2.Plans can’t be developed for a dynamic
environment
3.Formal plans can’t replace intuition and creativity
4.Planning focuses manager’s attention on today’s
competition, not on tomorrow’s survival
5.Formal planning reinforces success, which may lead
to failure

6. Planning defined

According to Nickels and others

“The management function that involves
anticipating future trends and determining the best
strategies and tactics to achieve organizational
objectives.”

7. Planning defined

According to Aldag and Stearns

“The selection and sequential ordering of tasks
required to achieve an organizational goal.”

8. Planning defined

According to Cole and Hamilton

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.”

9. Planning defined

According to Robbins and Decenzo

“The process of determining objectives and
assessing the way those objective can best be
achieved.”

10. Planning Activities
Planning at various management levels:

1.Strategic Planning

2.Intermediate Planning

3.Operational Planning

11. Planning Activities
Management
Level
Position Planning Horizon

Top
CEO, President, V-
Pres, Gen. Mgr
Division Heads

Strategic
(1-10 years)

Middle
Functional Mgr
Product Line Mgr
Department Head

Intermediate
(6 mo – 2 years)

Lower
Unit Managers
First-line Supervisor

Operational
(1 week – 1 year)

12. The planning Process
Generally planning involves the following:

1.Setting organizational, divisional, or unit goals
2.Developing strategies or tactics to reach those
goals
3.Determining resources needed
4.Setting standards

13. Types of Plan
Breadth of
Use
Time Frame Specificity
Frequency of
Use

Strategic

Long-Term Directional Single-Use

Tactical/
Operational

Short-Term Specific Standing

14. Plans according to Breadth of
Use
Strategic
◦Plans that are organization-wide, establish overall
objectives, and position an organization in terms
of its environment.

Tactical
◦Plans that specify the details of how an
organization’s overall objectives are to be
achieved

15. Plans according to Time Frame
Short-term Plans
◦Plans that covers less than one year
◦First-line supervisors are mostly concerned with
these plans

Long-term Plans
◦Plans that extends beyond five years
◦These are mostly undertaken by middle and top
management

16. Plans according to Specificity

Specific Plans
◦Plans that have clearly defined objectives and
leave no room for misinterpretation

Directional Plans
◦Flexible plans that set out general guidelines

17. Plans according to Frequency of Use
Standing Plans
◦A plan that is ongoing and provides guidance for
repeatedly performed actions in an organization

Further classified as:
1.Policies
2.Procedures
3.Rules

18. Plans according to Frequency of Use
Policies
obroad guidelines to aid managers in making decisions
about recurring situations or function

Procedures
oDescribe the exact series of actions to be taken in a
given situation

Rules
oStatements that require or forbid certain actions

19. Plans according to Frequency of Use
Single-Use Plans
◦A plan that is used to meet the needs of a
particular or unique situation

Further classified as:
1.Budgets
2.Programs
3.Projects

20. Plans according to Frequency of Use
Budget
◦Set forth the projected expenditure for a certain activity and explains where
the fund will come from

Program
◦Designed to coordinate a large set of activities

Projects
◦More limited in scope than a program and is sometimes prepared to support
a program

21. Functional Area Plans

Plans prepared according to the needs of the
different functional areas. These are:

1.Marketing plan
2.Production plan
3.Financial plan
4.Human Resource Management plan

22. Making Planning Effective

Planning may be successful if:

1.One recognizes the planning barriers

2.One use the aids to planning

23. Making Planning Effective
The planning barriers are as follows:

1.Manager’s inability to plan

2.Improper planning process

3.Lack of commitment to the planning process

24. Making Planning Effective
4.Improper information

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

6.Too much reliance on planning department

7.Concentrating only on controllable variables

25. Making Planning Effective
Aids to planning that may be used:

1.Gather as much information as possible

2.Develop multiple sources of information

3.Involve others in the planning process

26. Management by Objectives
(MBO)
A system in which specific performance
objectives are jointly determined by
subordinates and their supervisors

progress toward objectives is periodically
reviewed, and rewards are allocated on the
basis of that progress

27. Elements of MBO
1.Goal specificity

2.Participative decision making

3.Explicit time period

4.Performance feedback

28. SWOT Analysis
Analysis of an organization’s strengths,
weaknesses, opportunities, and threats in
order to identify a strategic niche that the
organization can exploit.

29. END