Principles of Managment

Planning Tools and Techniques

Chapter 9

Presented by

Muhammad Waqas

Shakeel Ahmed Husnain dar Tanvir ul Hassan Abubakar Ashraf

Prensented To :

DR Ijaz Ahmed Qureshi

Outlines

Techniques for Assessing the Enviroment

Techniques for Allocation Resources

Contemporary Planning Techniques

Techniques for Assessing the Enviroment

1. Environmental Scanning2. Forecasting3. Benchmarking

Enviromental Scanning

Monitoring and Scanning

Political, social , Demographics,Global, Competitors etc.

Competitor Intellegence

Identify Competitors , Their Activities , and their Impact on Organization

Advertisement , Annual Report etc

Global Scanning

Information on global forces.

Draws information from sources that provide global perspectives on world-wide issues and opportunities.

Forecasting

Prediction of outcomes

1. Quantative forecasting Applies a set of mathematical rules

to series of past data to predict outcome.E.g: units to be probuced

2. Qualitative forecasting.Use the expert judment and

opinions of knowledge individuals to predict outcomes.E.g: direction of the economy.

Quantitative Time series analysis Regression models Econometric models Economic indicators Substitution effect

Qualitative Jury of opinion Sales force composition Customer evaluation

Forecasting Effectiveness

Dynamic environments decrease the forecasting effectiveness. Shorter timeframes improve forecasting

effectiveness. Simple forecasting techniques are more

effective than complex techniques. Compare every forecast with “no change”. Use multiple forecasting techniques. Forecasting skills improve with practice

Benchmarking

The search for the best practices among competitors and non-competitors that lead to their superior performance.

By analyzing and copying these practices, firms can improve their performance.

Steps in Benchmarking

Form a benchmarking planning team.

Gather internal and external data.

Analyze data to identify performance gaps.

Prepare and implement action plan.

Steps in BenchmarkingContinue..

Techniques for Allocating Resources

Types of Resources

The assets of the organization

• Financial: debt, equity, and retained earnings

• Physical: buildings, equipment, and raw materials

• Human: experiences, skills, knowledge, and competencies

• Intangible: brand names, patents, reputation, trademarks, copyrights, and databases

Allocating Resources: Budgeting

Are numerical plans for allocating resources.

E.g., revenues, expenses, and capital expenditures.

Are the most commonly used and most widely applicable planning technique for organizations.

Types of Budgets

Suggestions for Improving Budgeting

Collaborate and communicate.

Be flexible.

Budgets should not determine goals.

Remember that budgets are tools.

Allocating Resources: Scheduling

Schedules

Plans that allocate resources by detailing what activities have to be done.

Represent the coordination of various activities.

PERT Network Analysis

Program Evaluation and Review Technique (PERT) Network—a flowchart diagram showing the sequence of activities needed to complete a project and the time or cost associated with each activity.

Breakeven Analysis

It is used to determine the point at which all fixed costs have been recovered and profitability begins.

Fixed cost (FC)

Variable costs (VC)

Total Fixed Costs (TFC)

Price (P)

The Break-even Formula:

Costs VariableUnit -PriceUnit

Costs Fixed :

TotalBreakeven

Contemporary Planning Techniques

Project

Set of activities that has a definite beginning and ending point time.

Project Management

The task of getting a project’s activities done on time, within budget, and according to specifications.

Project Planning Process

Terms to Know

environmental scanning.competitor intelligence.Forecasts.quantitative forecasting.qualitative forecasting.Benchmarking.Resources.Budget.Scheduling.

PERT network.Events.Activities.slack time.critical path.breakeven analysis.linear programming.Project.project management.