PLANNING TECHNICAL ACTIVITIES

If managing an organization is to be pursued-vigorously, planning will constitute the most

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

The engineer manager, regardless of his management level, devote some of his time to
planning. The higher the management level the engineer manager is in, the more sophisticated
his planning activity becomes.

THE NATURE OF PLANNING

There are many instances when managers are overwhelmed by various activities which at
times becloud his judgment. This must be expected since anybody who is confronted by several
situations happening simultaneously will loose sight of the more important concerns. To
minimize mistakes in decision-making, planning is undertaken.

A plan, which is the output of planning, provides a methodical way of achieving desired
results. In the implementation of activities, the plan serves as a useful guide. Without the plan,
some minor tasks may be afforded major attention which may, later on, hinder the
accomplishment of objectives.

PLANNING DEFINED

Various experts define planning in various ways, all of which are designed to suit specific
purposes.
Planning, according to Nickels and others,
-"the management function that involves anticipating future trends and
determining the best strategies and tactics to achieve organizational objectives." This
definition is useful because it relates the future to what could be decided now.

Aldag and Stearns

- "the selection and sequential ordering of tasks required to achieve an
organizational goal." This definition centers on the activity required to accomplish the
goals.

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." This definition provides a better guide
on how to effectively perform this vital activity.

For our purpose, it will suffice to define planning as selecting the best course of
action so that the desired result may be achieved. It must be stressed that the desired
result takes first priority and the course of action chosen is the means to realize the goal.

THE PLANNING AT THE MANAGEMENT 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:

1. setting organizational, divisional, or unit goals

2. developing strategies or tactics to reach those goals
3. determining resources needed and
4. setting standards.
Setting Organizational, Divisional, or Unit Goals

The first task of the engineer manager is to provide a sense of direction to his firm (if he
is the chief executive), to his division (if he heads a division), or to his unit (if he is a supervisor).
The settings of goals provide an answer to the said concern. If everybody in the firm (or division
or unit, as the case may be) is aware of the goals, there is a big chance that everybody will
contribute his share in the realization of such goals.
Goals may be defined as the "precise statement of results sought, quantified in time and
magnitude, where possible.

Figure 3.3 Example of Goals, By Organizational Level

ORGANIZATIONAL LEVEL EXAMPLE OF GOAL

To attain a return
COMPANY investment of 25 %

Buenavista Construction
Corporation

To increase the number of

projects undertaken by the
DIVISION company

Project Management
Division

To increase the number of

project engineers
UNIT

Developing Strategies or Tactics to Reach Goals

After determining the goals, the next task is to devise some meas to realize them. The
ways to realize the goals are called strategies and these will be the concern of top management.
The middle and lower management will adapt their own tactics to implement their plans.

A strategy may be defined as "a course of action aimed at ensuring that the organization
will achieve its objectives,"

A tactic is 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.

Determining Resources Needed

Personal Services
When particular sets of strategiesUnit
or tactics
have been devised, the engineer manager 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.
Setting Standards

The standards for measuring performance may be set at the planning stage. When actual
performance dues not match with the planned performance, corrections may be made or
reinforcements given.

A standard may be defined as "a quantitative or qualitative measuring device designed to

help monitor the performances of people, capital goods, or processes.
An example of a standard is the minimum number of units that must be produced by a
worker per day in a given work situation.

PLANNING AT DIFFERENT MANAGEMENT LEVELS

Since engineer managers could be occupying positions in any of the various management
levels, it will be useful for them to know some aspects or planning undertaken at the different
management levels.

Planning activities undertaken at various levels are as follows:

1. Top management level - strategic planning
2. Middle management level - intermediate planning
3. Lower management level - operational planning

Strategic Planning

The term strategic planning refers to the process of determining the major goals of the
organization ends the policies and strategies for obtaining and using resources to achieve those
goals. The top management of any firm is involved in this type of planning.
In strategic planning, 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.

Intermediate Planning

Intermediate planning refers to "the process of determining the contributions that subunits
can make with allocated resources." This type of planning is undertaken by middle management.

Under intermediate planning, 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:

Operational Planning

The term operational planning refers to "the process of determining how specific tasks
can best be accomplished on time with available resources." This type of planning is a
responsibility of lower management. It must be performed in support of the strategic plan and the
intermediate plan.
Figure 3.1 Types of Planning

Figure 3.2 The Organization and Types of Planning Undertaken

PRESIDENT /
GENERAL
MANAGER
responsible for
STRATEGIC
PLANNING

MARKETING PRODUCTION FINANCE

FINANCE PERSONNEL
PERSONNEL
MANAGER MANAGER MANAGER
MANAGER MANAGER
MANAGER
responsible for responsible for responsible for responsible for
INTERMEDIATE INTERMEDIATE INTERMEDIATE INTERMEDIATE
PLANNING PLANNING PLANNING PLANNING

INDUSTRIAL QUALITY
FACTORY CONTROL
ENGINEERING
MANAGER MANAGER
MANAGER
responsible for responsible for responsible for
OPERATIONAL OPERATIONAL OPERATIONAL
PLANNING PLANNING PLANNING

TYPES OF PLANS

Plans are of different types. They may be classified in terms of functional areas, time
horizon, and frequency of use.

A. 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.

Contents of the Marketing Plan by William Cohen

1. The Executive Summary- which presents 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
6. Marketing Tactics
7. Schedules and Budgets
8. Financial Data and Control

2. Production plan - this is a written document that states the quantity of output a company
must produce in broad terms and by product family.

The Contents of the Production Plan

1. The amount of capacity the company must have
2. How many employees are required
3. How much material must be purchased.

3. Financial plan - it is a document that summarizes the current financial situation of the firm,
analyzes financial needs, and recommends a direction for financial activities.

The Contents of the Financial Plan

The components of the financial plan are as follows.
1. An analysis of the firm’s current financial condition as indicated by an analysis of
recent statements
2. A sales forecast
3. The capital budget
4. The cash budget
5. A set of pro forma (or projected) financial statements
6. The external financing plan.

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.

Contents of the Human Resources Plan

1. personnel requirements of the company
2. plans for recruitment and selection
3. training plan
4. retirement plan

B. Plans With Time Horizon

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.

C. Plans According to Frequency of Use

According to frequency of use, plans may be classified as:

1. standing plans and
2. single-use plans
Standing Plans. These are plans that are used again and again, and they focus on managerial
situations that recur repeatedly.

Standing plans may be further classified as follows:

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.

Single-Use Plans. These plans are specifically developed to implement courses of action that are
relatively unique and are unlikely to be repeated.

Single-use plans may be further classified as follows:

1. budgets
2. programs, and
3. projects.

A budget, according to Weston and Brigham, is "a plan which sets forth the
projected expenditure for a certain activity and explains where the required funds will
come from.
A program is a single-use plan designed to coordinate a large set of activities.
A project is a single-use plan that is usually more limited in scope than a program
and is sometimes pre- pared to support a program.

Fig 3.4 Types of Plans

TYPES OF PLANS

Functional Plans with Plans with Varied

Area Plans Time Horizon Frequency of Use

marketing short – range

plan plan
production long – range
plan plan

financial
plan standing plan single use
plan
Human
resource plan

policies procedures rules

budget program
project
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
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
2. Develop multiple sources of information
3. Involve others in the planning process

TOOLS FOR PLANNING

Planning Tools are instruments that help guide organizational action steps related to
implementation of an initiative, program, or intervention. They may provide detailed descriptions
about the county implementation plan and how it was developed.
Some examples of Tools used by the Project Manager for Project Planning;

Network diagrams are one of the project management tools a project manager uses for
project planning. It is also sometimes referred to as an “Arrow” diagram because it uses arrows
to connect activities and represent precedence and interdependencies between activities of a
project.
Critical Path method, or CPM, is an important project planning tool used by project
managers to monitor the progress of the project to ensure that the project is on schedule.

The Program (or Project) Evaluation and Review Technique, commonly abbreviated
as PERT, is a form of the Network Diagram project management tools we just discussed. PERT
is also used for identifying the critical path for the project. This technique was developed to
simplify planning and scheduling large and complex projects and creating more realistic
estimates towards the duration of each activity.

Gantt Chart provides a graphic schedule for planning and controlling the project and
recording progress towards completion of various activities in the project. It’s a great project
planning tool since it represents the project schedule as bar charts spread out over a timeline.

A Work breakdown structure, also called WBS, is a delivery oriented hierarchical

decomposition of work. IIt is often used as a project planning tool to define the total scope for
the project and to identify required deliverables for the project.

Project Documentation refers to creating documents that provide details about the
project. Such documents are used to gain better understanding of the project, preventing and
resolving conflict between stakeholders, and sharing plans and status for the project.
SUMMARY

Technical activities, like other activities, require effective planning, i.e., if objectives and
goals are to be realized
A plan is a methodological way of achieving results.
Planning is undertaken at various management levels.
Various steps are required in the planning process depending on the management level.
Plans may be classified in terms of functional areas, time horizon, and frequency of use.
Plans consist of various parts that the engineer manager must be familiar with.
Plans can be made effective by recognizing the planning barriers and making use of aids
to planning.