Tools for Planning of principle of Management(1).pptx

It consists of all planning tools of Principle of management

1. TOOLS FOR PLANNING

2. INTRODUCTION Instrument that helps to guide organizational actions steps related to implementation of an program Used to minimize future uncertainty in effective implementation of plan Helps the organization to achieve the organizational goals

3. PLANNING TOOLS

4. FORECASTING Process of predicting future events based on assumptions or premises Helps to recognize future problems and opportunities and implement plan into the action. Examples: Sales and Revenue Forecasting Technological Forecasting Resources forecasting etc. Different techniques like time series analysis, regression analysis, causal model, econometric models and indicators etc.

5. NETWORK TECHNIQUE Developed by US Navy engineers during 1950s to plan and control Polaris Nuclear Submarine Program Technique used to plan and control time and cost of project Program Evaluation and Review Technique(PERT) and Critical Path Method(CPM) are popular network techniques Develops a network of activities and their inter-relationships to highlight critical time interval that affect the overall project CPM is the longest path in which the project can be completed in shortest time

6. EXAMPLE:NETWORK TECHIQUE

7. FLOW CHART Used to identify the task component and work simplification Arrangement of events in order of their desired occurrence Focused to eliminate wasted steps and activities Useful to identify and sequence important events and decisions Impractical in complex situation in which several activities takes place at once as it does not indicate the time required for completion of each steps

8. EXAMPLE: FLOW CHART

9. GANTT CHART Developed by Henry Gantt during early 1900s Graphic scheduling technique used in production activities Focuses on activities and time required to complete them Consists of two dimensions Vertical dimension to schedule activities Horizontal dimension to show time frame Horizontal bar is drawn in each activity showing starting and completion time

10. EXAMPLE: GANTT CHART

11. BREAK-EVEN ANALYSIS Indicates level of activity in which cost becomes equal to revenue Also known as cost-volume profit analysis Used to estimate the volume of output and sales to earn profit Computed by using the following formula: BEP= FC ∕ S-VC, where BEP=Break Even Point FC=Fixed Cost S=Sales Revenue VC=Variable Cost

12. EXAMPLE: BREAK EVEN POINT

13. LINEAR PROGRAMMING Mathematical tool used for optimum combination of scarce resources and activities Mathematical equations are employed to describe the systems in the form of linear relation between variables Used in situations when an objective must be met within a set of constraints Useful for maximizing profit and minimizing cost

14. EXAMPLE: LINEAR PROGRAMMING

15. SIMULATION Represents model to solve real life problems using computer programming Related variables and their inter relationship are put into a system to find out the outcomes Useful in very complex situations characterized by diverse constraints, opportunities and resources Descriptive rather than perspective technique

16. EXAMPLE: SIMULATION

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