Tools and techniques of

planning
Berta, Lisa, Coutinho, Fortunate, Vickas and Michael

Learning objectives:
-Techniques for assessing the environment
-Tools for allocating resources
-Tools for production planning
-Techniques for scenario/contingency planning
-Creativity

Tools for Assessing the environment

.Environmental scenario

.Forecasting

-Simulation techniques

-Delphi techniques

.Benchmarking

Tools for Allocating Resources

.Budgeting-a numerical plan for allocating resources to specific activities

Tools for production planning

.Scheduling tools

-Gantt charts

-loads charts

-Linear programming

Project planning Tools

.Flow chart

.PERT(program evaluation review technique) network

Process Decision Program Chart

-Tree Diagram

Scenario Planning

.Scenarios are descriptions or stories of possible futures

.Enhances managerial thinking

-move from advocacy to exploration

.Anticipation of change brings faster reaction to uncontrollable events

Creativity Aids

Osborn

Model
Fact-finding
Idea finding
Solution finding
Anatomy of a Creative Moment
Preparation
Incubation
Illumination
Translation
Four Tools for Creativity
Belief in your own creativity
Absence of judgement
Precise observation
Penetrating questions

Brainstorming Rules

.Never criticize ideas

.defer judgement

Display all ideas

.so team members can see and build on them
.record each idea as expressed , without interpretation

Seek quantity of ideas

. they breed quality

Set a time limit

.30 minutes or less

Planning tools and technique summary

-Techniques for assessing the environment

-Tools for allocating resources-budgeting

-Tools for production planning-scheduling

-Project planning tools

-Scenario/contingency planning

-Creativity aids

ENVIRONMENTAL SCANNING

The screening of large amounts of information to anticipate and interpret change in the
environment

COMPETITOR INTELLIGENCE

The process of gathering information about competitors-who they are?;what are they doing?

Is not spying but rather careful attention to readily accessible information from employees ,
customers , suppliers , the internet , and competitors themselves

May involved reverse engeneering of competing products to discover technical innovations

GLOBAL SCANNING

Screening a broad scope of information on global forces that might affect the organization

Has value to firms with significant global interests

Draw information from sources that provide global prespectives on world-wide issues and
opportunities.

Assessing the environment Cont

FORECASTING

The part of organizational planning that involves creating predictions of

outcomes based on information gathered by environmental scanning.

Facilitates managerial decision making

Is most accurate in stable environment

TYPES

Quantitative forecasting

Applying a set of mathematical rules to a serial of hard data to predict outcomes

COLLABORATIVE PLANNING , FORCASTING , AND REPLENISHMENT (CPFR)

A standardized way for organisations to use the internet to exchange data

Forecasting Techniques

QUANTITATIVE

Time series analysis

Regression models

Econometric models

Economic indicators

Substitution effect

QUALITATIVE

Jury of opinion

Sales force composition

Customer evaluation

Making forecasting more effective

-Use simple forecasting methods

-Compare each forecast with its corresponding no change forecast

Dont rely on a single forecasting method

Dont assume that the turning point in a trend can be accurately identified

Shorten the time period covered by a forecast.

Remember that forecasting is developed managerial skill that supports

decision making

The benchmarking process

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.

FORM A BENCHMARKING TEAM

Identify what is to be benchmarked , select comparison organisations , and

determine data collection methods.

COLLECT INTERNAL AND EXTERNAL DATA ON WORK METHODS.

ANALYZE DATA TO IDENTIFY PERFORMANCE GAPS AND THE CAUSE OF DIFFERENCES

PREPARE AND IMPLEMENT AN ACTION PLAN TO MEET OR EXCEED THE STANDARDS

OF OTHERS.

Steps in benchmarking

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
Intangibles : brand names , patents , reputation , trademarks , copyrights , and databases
Structural /cultural : history culture , work systems , working relationships , trust , and
policies
Budgets
Numerical plans for all allocating resources to specific activities.
Used to improve time , space , and use of material resources.
Are the most commonly used and most widely applicable planning technique for
organizations.

Types of budgets

Suggestion for improving budgeting

Be flexible

Goals should drive budgets-budgets should not determine goals

Coordinate budgeting throughout the organization

Use budgeting/planning software when appropriate

Remember that budgets are tools

Remember that profits result from smart management , not because you are
budgeted for them.

Allocating resources: scheduling , charting

SCHEDULES

Plans that allocate resources by detailing what activities have to be done , the order in
which they have to be completed.

Represent the coordination of various activities

GANTT CHART

A bar graph with time on the horizontal axis and activities to be accomplished on the
vertical axis

Shows the expected and actual progress of various tasks

LOAD CHART

A modified Gantt chart that lists entire departments or specific resources on the vertical
axis

Allows managers to plan and to control capacity utilization

Gantt chart and Load chart

Contemporary planning techniques

PROJECT

A one-time-only set of activities that has a definite beginning and ending

point time.

PROJECT MANAGEMENT

The task of getting a projects activities done on time , with budget , and
according to specifications.

Define project goals

Identify all required activities , materials , and labor

Determine the sequence of completion

SCENARIO

An attempt not to try to predict the future but to reduce uncertainty by

playing out potential situations under different specified conditions.

Project planning process

Planning steps

.Setting the objectives

.Defining the goal

.Identifying aids and barriers

.Setting and developing course of action

PLANNING STEPS EXPLANATION

STEP 1:This has to do with realizing what the organization want to achieve. Such
objective can either be qualitative or quantitative in nature.It is impossible to plan
without realizing the objective.

STEP 2:This is the next step after setting the objectives.This has to do with realizing
the output of the objective.

STEP 3:This looks at analyzing the SWOT analysis or cooperate appraisal of the
organization.Identifying the aid and barriers enables the organization to know where it
stands and falls inlight of realizing the objectives.This is an important step to planning.

STEP 4:This step arises after realizing the aids and barriers of the organisation.
Developing a set of actions is a delicate process as it needs to be done in such a way
that enables the company to stand firm inlight of accomplishing its goals. Since both
aids and barriers have been discovered,developing set of actions should be done inorder
to take advantage of its aids and come against its barriers.