Engineering Management:

Planning Technical Activities

Submitted by:
Baoas, Christine
Fulugan, Ceazar Justin
Madrial, Andrea Coleen

BSChE 4-1

Submitted to:
Engr. Milagros R. Cabangon

January 12, 2016

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 TABLE OF CONTENTS
Definition of Planning
Planning 5
Management Planning 6
Factors of Management Planning 7
Significance of Planning
Reasons Why People Neglect Planning 8
Importance of Planning 9
Planning at Various Management Level
Strategic Planning 12
Intermediate Planning 13
Operational Planning 14
The Planning Process
Setting Organizational, Divisional, or Unit Goals 16
Developing Strategies or Tactics to Reach those Goals 17
Determining Resources Needed 23
Setting Standards 26
Types of Plans
Functional Area Plans 27
Plans With Time Horizon 28
Plans According to Frequency Use 28
Parts of the Various Functional Area Plans
The Contents of Marketing Plan 29
The Contents of Production Plan 35
The Contents of Financial Plan 35
The Contents of Human Resource Plan 37
Parts of Strategic Plan

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 Executive Summary 40
Mission, Vision and Core Values 40
Environmental and SWOT Analysis 41
Goals, Priorities and Strategies 41
Making Planning Effective 46
References 47

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 OBJECTIVES

General Objective

To define planning of technical activities on human behavioral organization and to come

up with examples that relate to real life situations

Specific Objectives

To define planning in organization

To enumerate the importance of planning in an organization
To illustrate planning in various management level
To enumerate the steps in the planning process
To identify and distinguish the types of plans
To identify the different parts of various functional areas and strategic plan
To enumerate the hindrances and aids to use in making planning effective

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DEFINITION OF PLANNING and MANAGEMENT PLANNING

Whether your organization is a one-person volunteer operation or a multi-program giant

with dozens of staff, it needs a management plan to make sure that it operates smoothly and gets
everything done. The plan for a tiny organization can obviously be a lot simpler than that for a
huge one, but the intent in both cases is still the same: to carry out the mission of the organization
and the day-to-day tasks needed to support that mission and keep the organization running as
effectively as possible.

Planning means looking ahead and chalking out future courses of

action to be followed. It is a preparatory step. It is a systematic activity
which determines when, how and who is going to perform a specific job.
Planning is a detailed program regarding future courses of action.

It is rightly said Well plan is half done. Therefore, planning takes

into consideration available & prospective human and physical resources of the organization so as
to get effective co-ordination, contribution & perfect adjustment. It is the basic management
function which includes formulation of one or more detailed plans to achieve optimum balance of
needs or demands with the available resources.

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 According to Urwick, Planning is a mental predisposition to
do things in orderly way, to think before acting and to act in the light
of facts rather than guesses. Planning is deciding best alternative
among others to perform different managerial functions in order to
achieve predetermined goals.

According to Koontz & ODonell, Planning is deciding in

advance what to do, how to do and who is to do it. Planning bridges
the gap between where we are to, where we want to go. It makes possible things to occur which
would not otherwise occur.

When planning is applied in organization, the term

management planning comes in. Management planning is the
process of assessing an organization's goals and creating a
realistic, detailed plan of action for meeting those goals. Much
like writing a business plan, a management plan takes into
consideration short- and long-term corporate strategies. The
basic steps in the management planning process involve creating a road map that outlines each
task the company must accomplish to meet its overall objectives.

The first thing a manager would do in an organization is planning. Many believe that
management planning is the most fundamental function of management. All other functions,
including organizing, leading, controlling and staffing, stem from planning function.

After knowing what is a management planning, the manager is

now ready to make a management plan. A management plan is a
blueprint for the way your organization is run, both day-to-day and over
the long term. It includes the standard methods for doing various things
-- handling money, dealing with the actual work of the organization,
addressing the way people in the organization do their jobs -- and the overall philosophical and
intellectual framework in which these methods operate.

The management plan for your particular organization depends on a number of factors:

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 What is the organization trying to accomplish? A
neighborhood initiative that exists to achieve a single
goal -- keep a historic building from being torn down,
preserve a piece of open space, build a playground --
has very different management needs than, say, a
health clinic that plans to serve the community for
years. Issues that are both important and ongoing for the clinic (staff pay and
benefits, for instance) may simply not exist for the other organization.
What actually needs to get done day-to-day to
keep the organization running? The actual tasks
that keep the organization alive, maintain its
standing with funders and the community, and allow
it to accomplish its goals, need to be carried out
efficiently and on time. Who's responsible for that, how many people will it take,
and what are the mechanisms that will allow it to happen for your particular
organization?
What degree of freedom do people at all levels of
the organization need in order to do their jobs
well? If nothing can get done without going through
several layers of management, the organization isn't
going to be very effective.
What are the resources available for carrying out
a management plan? How many administrators
could the organization support, given its finances? If
the answer is one (or one part-time), your
management plan will look very different than it
would if the answer were three.

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 How does the management plan fit in with the
mission and philosophy of the organization?
It's important, both for the internal workings of
the organization and for the way it's viewed in the
community, that there be consistency between
what the organization says about itself and the way it runs. If an organization claims
to be democratic, but keeps its staff totally powerless, it is not only violating its
own principles -- and thereby making it less likely it will accomplish its goals -- but
also compromising its reputation.

SIGNIFICANCE OF PLANNING

You don't have to be in leadership very long to learn that planning pays off. Even so,
many people don't plan. Here are four reasons why people neglect planning.

They don't possess planning skills or knowledge.

Some people don't have an innate ability to project
themselves into the future. They've never been taught to
prioritize their day or to prepare for tomorrow.

They're caught in the tyranny of the urgent, and they believe

that they don't have time. Some people allow themselves to be
pulled into the vortex of minutiae. As a consequence, they end
up buried under a sea of details, and they can't pull their heads
above water long enough to plan.

They don't like the perceived hassle of planning.

Instead of planning one event at a time, they become
overwhelmed by the mountain of things to plan.

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 Many people don't plan because the outcome varies greatly.
"After all," they say, "When I do make a plan, it normally doesn't
end up happening, so why bother?"

Granted, a lot of work goes into keeping an organization going. Why can't it just get taken
care of as it comes up? Why go to the trouble of creating an actual plan for just doing what needs

to be done?

The general answer here is that your organization is too important for you to leave things
to chance. If there's no plan, everyday tasks may fall through the cracks, emergencies may arise
with which no one knows how to cope, responsibilities may not be clear, and--the bottom line--the
work of the organization may not be done well or at all. A good management plan helps you
accomplish your goals in a number of ways:

It clarifies the roles and responsibilities of everyone in

the organization so that everyone knows what she and
everyone else is supposed to do. Staff members know
who they need to go to for information, consultation,
supervision, etc. They also know what the boundaries of
their own positions are -- when they can do something
without checking with someone else, and when they
can't.

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 It divides the work of the organization in reasonable
and equitable ways, so that everyone's job is not only
defined, but feasible.

It increases accountability, both internally (when

something doesn't get done, it's obvious whose
responsibility it was) and externally (the better the
management of the organization, the better it will serve the
community).
It ensures that necessary tasks are assigned to the
appropriate staff members, and creates a time schedule
to get them accomplished. Bills get paid on time, staff
members are where they're supposed to be to provide the
organization's services, funding proposals get written and
submitted, problems are dealt with, and the organization functions smoothly as a
result.

It helps the organization define itself. By developing a

plan that's consistent with its mission and philosophy, an
organization can be clear on what it believes in and
communicate this with clarity to its staff, its target
population, and the community as a whole.

PLANNING AT VARIOUS MANAGEMENT LEVEL

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

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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

President/General
Manager
responsible for
STRATEGIC PLANNING

Marketing Production Personnel

Finance Manager
Manager Manager Manager
responsible for responsible for responsible for responsible for
INTERMEDIATE PLANNING INTERMEDIATE PLANNING INTERMEDIATE PLANNING INTERMEDIATE PLANNING

Industrial
Quality Control
Engineering Factory Manager
Manager
Manager
responsible for responsible for responsible for
OPERATIONAL PLANNING OPERATIONAL PLANNING OPERATIONAL PLANNING

Fig. 2 The Organization and Types of Planning

Undertaken
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Strategic Planning

This refers to the process of determining the

major goals of the organization and 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.

Strategic plan is the foundational basis of the organization and will dictate decisions in
the long-term. The scope of the plan can be two, three, five, or even ten years.

Managers at every level will turn to the strategic plan to guide their decisions. It will also
influence the culture within an organization and how it interacts with customers and the media.
Thus, the strategic plan must be forward looking, robust but flexible, with a keen focus on
accommodating future growth.

Example reference, Mr. Vergara is the president for Coco Paper Industries. As a top-
level manager, Mr. Vergara must use strategic planning to ensure the long-term goals of the
organization are reached. For Mr. Vergara, that means developing long-term strategies for
achieving growth, improving productivity and profitability, boosting return on investments,
improving customer service and finding ways to give back to the community in which it operates.

For example, Mr. Vergara's strategic plans for achieving growth, improving productivity
and profitability and boosting return on investments are all part of the desired future of the
company. Strategic plans also tend to require multilevel involvement so that each level of the
organization plays a significant role in achieving the goals being strategically planned for. Top-
level managers, such as Mr. Vergara, develop the organizational objectives so that middle- and
lower-level managers can create compatible plans aligned with those objectives.

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Intermediate Planning

It 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.

Intermediate planning is also known as tactical planning.

Tactical plans support strategic plans by translating them into specific plans relevant to a distinct
area of the organization. Tactical plans are concerned with the responsibility and functionality of
lower-level departments to fulfill their parts of the strategic plan.

The tactical plan describes the tactics the organization plans

to use to achieve the ambitions outlined in the strategic plan. It
breaks down the broader mission statements into smaller, actionable
chunks. If the strategic plan is a response to What?, the tactical
plan responds to How?.

Creating tactical plans is usually handled by mid-level managers.

For example, when Engr. Juan, the middle-level manager (production manager) at Coco
Paper Ind., learns about Mr. Vergara's strategic plan for increasing productivity, Engr. Juan
immediately begins to think about possible tactical plans to ensure that happens. Tactical planning
for Engr. Juan might include things like testing a new process in making paper that has been proven
to increase the yield of pulp or perhaps looking into purchasing a better equipment that can speed
up the amount of producing paper. As a tactical planner, Engr. Juan needs to create a set of
calculated actions that take a shorter amount of time and are narrower in scope than the strategic
plan is but still help to bring the organization closer to the long-term goal.

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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.

The operational plan describes the day to day running

of the company. The operational plan charts out a roadmap to achieve the tactical goals within a
realistic timeframe. This plan is highly specific with an emphasis on short-term objectives.
Increase sales to 150 units/day, or hire 50 new employees are both examples of operational
plan objectives.

Creating the operational plan is the responsibility of low-level managers and supervisors.

Example, Mr. Vergara has just informed you that part of the corporate strategic plan is to
increase the return to shareholders over the next five years. The division manager's tactical plan to
support the corporate goal has three parts. First, he wants to cut costs by ten percent over the next
year. Next, he also wants to avoid layoffs and to increase production by three percent. He asks you
to prepare an operational plan for your plant that will show him what you will do to help him
achieve these goals. He wants to know very specifically what actions you will take, when these

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actions will occur and who will perform them. He also wants to know if you will require any
additional financial resources or manpower to implement your plan.

Some ideas about what you can do

Table 1 Comparison of Strategic, Tactical, and Intermediate Plan

THE PLANNING 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
4. Setting standards

For Example #2

Critical to employee safety is fire emergency preparation planning. The effectiveness of

response during emergencies depends on the amount of planning, training, and drilling previously
performed.

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 Identifying key elements of a fire emergency preparation plan starts with the development
of a written plan. The emergency preparedness plan should address all potential emergencies that
can be anticipated in the workplace (e.g., floods, earthquakes, and windstorms) and recovery plans.
This guide is limited to fire emergency preparedness planning.
The written emergency preparedness plan should be provided to all departments and be
accessible to all employees. Department managers and supervisors should be familiar with all
elements in the written plan and have conducted training/drilling to assure that their department
employees clearly understand their roles in fire emergencies.
As an engineer manager, we must ensure the overall workplace and employees safety. To
do so, we must establish a fire emergency preparedness planning for the case of fire emergency.
Regarding the topic, we will apply the four steps in planning process using such planning method.

Setting Organizational, Divisional, or Unit Goals

Figure 3 Examples of Goals, By Organizational Level

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 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 setting 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. Examples of goals are provided in Figure 1.

For Example #2

The objective of the Emergency Preparedness Plan is to minimize the danger to life and
property in the event of a plant emergency. To achieve this goal, we have outlined well-defined,
clear-cut steps to be taken should an emergency occur. For the purpose of this Plan, emergency
procedures shall be implemented for fires, explosions, bomb threats, hazardous material spills or
natural disasters which require immediate emergency action and/or evacuation of the plant

Developing Strategies or Tactics to Reach Goals

After determining the goals, the next task is to devise some means 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.

An example of a strategy is as follows:

The decision of a construction firms management to diversify its business by engaging

also in the trading of construction materials and supplies.

When the above mentioned strategy is implemented, it may help the construction firm
realize substantial savings in the material and supply requirements used in their construction
activities. The firm will also have greater control in the timing of deliveries of materials and
supplies.

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 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 firms strategies. The
decision about short-term goals and the courses of action are indicated in the tactical plan.

An example of a tactic is the hiring of contractual workers to augment the companys

current workforce.

For Example #2:

1. Training for Emergencies

1.1. Evacuation Team Training

1.1.1. members of the Evacuation Team shall familiarize themselves with all means of
egress from the building, the location of the manual pull boxes and the
designated gathering areas.

1.1.2. team members shall lead employees to the nearest exit, and assure that all
employees in their respective areas have been evacuated by making a visual
sweep of their respective areas prior to exiting the building.

1.1.3. once all employees have evacuated the building, team members are to lead and
gather with their area employees in the designated gathering area.

1.1.4. team members shall then take a head count and relay the count to their area
supervisor and/or manager at the guard station.

Note: the building should be evacuated within 2-3 minutes.

1.2. Emergency Team Training

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 1.2.1. The Emergency Team shall be trained to attempt to control small, incipient fires
only; those which are localized in a contained area and which are in their initial
stages only.

1.2.2. Emergency Team members are NOT to attempt to fight any fire which is out of
control and has spread to become a large or major fire.

1.2.3. Emergency Team members shall be trained initially and annually in the
following areas:

1.2.3.1. fire extinguisher use

1.2.3.2. knowledge and location of fire extinguishers

1.2.3.3. types of fires to attempt to control

1.2.3.4. procedure for having used fire extinguishers recharged

1.2.3.5. notification procedures

1.3. Hazardous Material Release Responders:

1.3.1. shall become familiar with the location and use of Material Safety Data Sheets
(MSDS)

1.3.2. shall know the location of the manual pull alarm boxes

1.3.3. shall learn how to control a chemical spill that does not require the use of a
respirator

1.3.4. shall be trained and familiar with notification procedures

1.4. Employee Training

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 1.4.1. all employees shall be instructed to shut off machinery (if possible).

1.4.2. all employees shall be made aware of the alarm system and evacuation
procedures.

1.4.3. all employees shall be made aware of the location of the manual pull alarm boxes
and instructed to pull the alarm should they detect a fire.

1.4.4. all employees shall be made familiar with emergency exits in the building and
the evacuation plans posted by each exit.

1.4.5. all employees shall be instructed to evacuate the building in an orderly manner
immediately whenever the alarm is sounded or whenever they are instructed to
evacuate the building and shall be informed of the designated gathering areas.

2. Security Guard Procedures

2.1. If the alarm is sounded during your shift:

2.1.1. man the telephones/Closed-Curcuit TV monitors at guard station (Command

Center).

2.1.2. all incoming, non-emergency telephone calls shall be instructed that an

evacuation is underway and the phones must remain clear.

2.1.3. be prepared to assist fire department personnel.

2.1.4. direct fire department personnel to the fire area or spill area if requested to do
so.

2.1.5. notify General Ambulance when instructed to do so.

2.1.6. contact the Plant Nurse immediately and the Safety Manager or

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 2.1.7. fill out a complete report of the incident.

3. Evacuation Team Procedures

3.1. The building shall be evacuated when any of the following occur:

3.1.1. the alarm sounds

3.1.2. the Plant Emergency Coordinator or his/her representative orders an evacuation

3.1.3. the fire department - or other emergency response personnel order an evacuation
(example: chemical spill, bomb threat, etc.)

3.2. Once the alarm sounds or an evacuation as been ordered, the Evacuation Team shall
immediately initiate this Plan:

3.2.1. department Leads and/or area supervisors shall immediately instruct all
personnel to exit the building by using the nearest designated fire exit.

3.2.2. Designated Fire Exits are as follows:

3.2.2.1. East Wing - East Wall Fire Door

3.2.2.2. East Wing - South Wall Fire Door (adjacent to 1st & 4th floor
cafeterias)

3.2.2.3. West Wing - Southwest Corner

3.2.2.4. West Wing - South Wall adjacent to Tunnel

3.3. Department Leads shall escort all area personnel to the designated gathering areas in an
orderly fashion.

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3.3.1. Designated Gathering Areas are as follows:

3.3.1.1. Main Street Parking Lot - for all Production employees (Molding-
East Lot/Assembly-West Lot) who exit the East Wing

3.3.1.2. Manufacturer's Lane Parking Lot - for all Molding & support
employees who exit the West Wing

3.3.1.3. Visitors Parking Area - for all visitors, office & clerical support
personnel

3.3.1.4. Handicapped Parking/Guard Station - for all Managers &

Emergency Team Members

3.4. Area Supervisors and/or Department Leads shall:

3.4.1. make a visual sweep of their respective areas for missing

personnel, exit the building and go to the designated
gathering area for a head count

3.4.2. take a head count and verify

3.4.3. report the head count to the Emergency Team Command

Center

3.4.4. immediately report any missing personnel but DO NOT

re-enter the building

3.5. Attend to injured employees until emergency personnel arrive.

3.6. Area Supervisors shall, at the conclusion of the evacuation, instruct

Department Leads to escort employees into the building upon
receiving authorization from emergency personnel.

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 4. Medical Services

4.1. Medical Services shall be prepared to assist company-trained first responders with medical
treatment to injured personnel when in the facility.

4.2. After hours, the Plant Emergency Coordinator shall insure that General Ambulance is
notified if any injuries are sustained due to an incident.

4.3. While waiting for General Ambulance to arrive, the plant nurse and/or trained first
responders shall attend to all injured personnel and turn over those duties to trained
General Ambulance personnel when instructed to do so.

4.4. In the event that personnel must be transported to the local hospital, the guard shall contact
the area hospital(s) and notify hospital personnel of the number of people being
transported and the extent of the injuries.

Determining Resources Needed

When particular sets of strategies or tactics have been devised, the manger 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.

To illustrate:

Suppose the management of a construction firm has decided, in addition to its current
undertakings, to engage in the trading of constructions materials and supplies.

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 A general statement of required resources will be as follows: A new business unit will be
organized to deal with the buying and selling of construction materials and supplies. The amount
of Php 50 million shall be set aside to finance the activity. Qualified persons shall be recruited for
the purpose.

For Example #2:

Personnel and Responsibilities:

1.1. Plant Emergency Coordinator: Vice President of Operations

Responsibilities: The Plant Emergency Coordinator shall assume overall responsibility for
all emergency operations.
This person shall decide if the entire building will be evacuated. Exception: in any case
where the emergency alarm system is sounded; then, the entire building will be evacuated.

Once a decision to evacuate the building has been made, the Emergency Coordinator shall
ensure that the evacuation order has been issued.

He/she will then determine when it is safe for everyone to return to the building. In the
event of a fire, this determination shall be made with the assistance of the local fire
department.

1.2. Alternate Emergency Coordinator: Manager of Manufacturing Technical Support

Responsibilities: In the absence of the Plant Emergency Coordinator, the Alternate

Coordinator shall assume overall responsibility for all emergency operations. If neither the
Coordinator nor Alternate Coordinator are in the plant, the management member
designated by the Emergency Coordinator shall assume overall responsibility.

1.3. Evacuation Team Members:

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 1.3.1. Department Managers must be assured that all personnel in their respective areas
have been accounted for and report this to the Plant Emergency Coordinator.

1.3.2. General Supervisors and/or Group Leads shall be assured that all personnel in
their respective areas are accounted for in the absence of the department
manager.

1.3.3. Area Supervisors and/or Group Leads shall physically determine that all
personnel are accounted for and shall report this to the department
manager/general supervisor at the guard station (Command Center).

1.3.4. Leads (all groups) shall assist the area supervisor in assuring that all personnel
have evacuated the building by way of the nearest exit and have assembled in
the designated area. Leads shall remain with area personnel until given
permission to return to the building.

1.4. Emergency Team Members:

1.4.1. Technical Manager/Team Coordinator shall coordinate emergency response

procedures with his/her personnel.

1.4.2. Plant Electricians/Electrical Contractors shall attend to all electrical

emergencies, and disconnect and reconnect power when instructed to do so.

1.4.3. Plant Maintenance Personnel - All shall be trained in the use of fire fighting
equipment and handle small, incipient fires whenever possible during their shift.
A member of maintenance shall be designated on each shift as the team
coordinator to act in the absence of the Technical Manager.

1.4.4. Hazardous Materials Response Coordinator - Safety Coordinator shall

coordinate hazardous material spill control when in the facility. In the event this
person is not in the facility, the guard shall contact him/her. He/she shall

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 immediately come to the plant or provide instruction to the Emergency Team
Coordinator by way of telephone. Material Safety Data Sheets for all hazardous
chemicals shall be maintained at the security desk for use by hazardous response
personnel.

1.4.5. Safety Manager shall assist and council the Plant Emergency Coordinator in all
aspects of this Plan. He/she shall be immediately notified by the guard when an
emergency response procedure is initiated. Upon completion of the response,
he/she shall immediately commence an investigation of the incident.

1.5. Security Guard on Duty and Security Supervisor

All security guards shall be trained in this procedure. The Safety Manager, the Supervisor
of guards shall be notified immediately in the event that the plant must be evacuated. The
Supervisor of guards shall come immediately to the plant and supervise the conduct of the
evacuation. The Emergency Coordinator shall be notified as soon as possible by the
Supervisor or the Safety Manager. The Supervisor shall provide a written report to the
Safety Manager at the conclusion of the event.

Setting Standards

The standards for measuring performance may be set at the planning stage. When actual
performance does 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 numbers of units that must be produced by a

worker per day in a given work situation.

For Example #2

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 In planning fire safety emergency drill, there is an evaluation for the rate of the response
and awareness of the employee once the drill alarm sounded. And, this evaluation is discussed
among the constituents of the workplace.

TYPES OF PLANS

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

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:

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 1. Marketing Plan this is the written document or blueprint for implementing and
controlling an organizations marketing activities related to a particular marketing strategy.
2. Production Plan this is a written document that states that the quantity of output a
company must produce in broad terms and by product family.
3. Financial Plan it is a document that summarizes the current financial situation of the
firm, analyzes the financial needs, and recommends a direction for financial activities.
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 companys strategic plan.

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.

Plans According to Frequency of Use

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

1. Standing Plans
2. Single-Use Plans

Standing Plans 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
3. Rules they are statements that either require or forbid a certain action.

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 Single-Use Plans are plans that 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 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.
2. Program is a single-use plan designed to coordinate a large set of activities.
3. Project is a single-use plan that is usually more limited in scope than a program and is
sometimes prepared to support a program.

PARTS OF THE VARIOUS FUNCTIONAL AREA PLANS

The engineer manager may be familiar with the engineering plans, knowing the details from
beginning to end. However, the ever present possibility of moving from one management level to
the next and from one functional area to another presses the engineer manager to be familiar as
well with other functional area plans.

1. Marketing Plan
The structure and content of marketing plans vary depending on the nature of the
organizations adapting them. William Cohen maintains that the following must be included
in the marketing plan.

Executive Summary
The purpose of including an executive summary in a marketing plan is to introduce
the company and explain all the key elements of the plan in a shorter form.
Example:
This five-year marketing plan for Blue Sky Clothing has been created by its two
founders to secure additional funding for growth and to inform employees of the
companys current status and direction. Although Blue Sky was launched only
three years ago, the firm has experienced greater-than-anticipated demand for its

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 products, and research as shown that the target market of sport-minded consumers
and sports retailers would like to buy more casual clothing than Blue Sky currently
offers. They are also interested in extending their product line as well as adding
new product lines. In addition, Blue Sky plans to explore opportunities for online
sales. The marketing environment has been very receptive to the firms high-
quality goodscasual clothing in trendy colors with logos and slogans that reflect
the interests of outdoor enthusiasts around the country. Over the next five year,
Blue Sky can increase its distribution, offer new products, and win new customers.

Situational Analysis and Target Market

The situation analysis provides an outline of the marketing environment. A SWOT
analysis helps marketers and others identify clearly a firms strengths, weaknesses,
opportunities, and threats. Again relationships are a focus. Blue Sky has also conducted
research on the outdoor clothing market, competitors, and consumers to determine how
best to attract and keep customers.
Example:
The marketing environment for Blue Sky represents overwhelming opportunities.
It also contains some challenges that the firm believes it can meet successfully. In
just three years, Blue Sky has built some impressive strengths while looking
forward to new opportunities. Its dedicated founders, the growing number of
brand-loyal customers, and sound financial management place the company in a
good position to grow. However, as Blue Sky considers expansion of its product
line and entrance into new markets, the firm will have to guard against marketing
myopia (the failure to recognize the scope of its business) and quality slippages.
As the company finalizes plans for new products and expanded Internet sales, its
management will also have to guard against competitors who attempt to duplicate
to products. However, building strong relationships with consumers, retailers, and
suppliers should help thwart competitors.

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 A target market is the market a company wants to sell its products and services to,
and it includes a targeted set of customers for whom it directs its marketing efforts.
Identifying the target market is an essential step in the development of a marketing plan. A
target market can be separated from the market as a whole by geography, buying power,
demographics and psychographics.
Example:
The target market for Blue Sky products is active consumers between the ages of
25 and 45people who like to hike, rock climb, bicycle, surf, figure skate, in-line
skate, ride horses, snowboard or ski, kayak, and other such activities. In short, they
like to Go Play Outside. They might not be experts at the sports they engage in,
but they enjoy themselves outdoors.
These active consumers represent a demographic group of well-educated
and successful individuals; they are single or married and raising families.
Household incomes generally range between $60.000 and $120,000 annually.
Despite their comfortable incomes, these consumers are price conscious and
consistently seek value in their purchases. Regardless of their age (whether they
fall at the upper or lower end of the target range), they lead active lifestyles. They
are somewhat status oriented but not overly so. They like to be associated with
high-quality products but are not willing to pay a premium price for a certain brand.
Current Blue Sky customers tend to live in northern New England, the South,
California, and the Northwest. However, one future goal is to target consumers in
the Mid-Atlantic states and Southwest as well.

Marketing Objectives and Goals

It is important to state a firms mission and goals, including financial and
nonfinancial goals.
Example:
Blue Skys mission is to be the leading producer and marketer of
personalized, casual clothing for consumers who love the outdoors. Blue Sky wants
to inspire people to get outdoors more often and enjoy family and friends while

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 doing so. In addition, Blue Sky strives to design programs for preserving the
natural environment.
During the next five years, Blue Sky seeks to achieve the following financial
and nonfinancial goals:
Financial Goals
1. Obtain financing to expand manufacturing capabilities, increase distribution, and
introduce two new product lines.
2. Increase revenues by at least 50 percent each year.
3. Donate at least $25,000 a year to conservation organizations.
Nonfinancial goals
4. Introduce two new product linescustomized logo clothing and lightweight
luggage.
5. Enter new geographic markets, including southwestern and Mid-Atlantic States.
6. Develop a successful Internet site, while maintaining strong relationships with
retailers.
7. Develop its own conservation program aimed at helping communities raise
money to purchase open space.

Marketing Strategies
An organization's strategy combines all of its marketing goals into one comprehensive
plan. A good marketing strategy should be drawn from market research and focus on the
product mix in order to achieve the maximum profit and sustain the business. The
marketing strategy is the foundation of a marketing plan.
Example:
The company relies on personal contact with retailers to establish the
products in their stores. This contact, whether in-person or by phone, helps convey
the Blue Sky message, demonstrate the products unique qualities, and build
relationships. Blue Sky sales representatives visit each store two or three times a
year and offer in-store training on the features of the products for new retailers or
for those who want a refresher. As distribution expands, Blue Sky will adjust o

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 meet greater demand by increasing sales staff to make sure it stores are visited more
frequently.
Sales promotions and public relations currently make up the bulk of Blue
Skys promotional strategy. Blue Sky staff works with retailers to offer short-term
sales promotions tied to event and contests. In addition, Nick Russell is currently
working with several trip outfitters to offer Blue Sky items on a promotional basis.
Because Blue Sky also engages in cause marketing through its contribution to
environmental programs, good public relations have followed.

Marketing Tactics
Once you have goals, including specific strategies for achieving your goals,
determine how you will implement your strategies. If you want to increase your revenues,
one tactic might be to raise your prices in conjunction with rebranding a product or service
as upscale.
Example:
Nontraditional marketing methods that require little cash and a lot of
creativity also lend themselves perfectly to Blue Sky. Because Blue Sky is a small,
flexible organization, the firm can easily implement ideas such as distributing free
water, skiers, and discount coupons at outdoor sporting events. During the next
year, the company plans to engage in the following marketing efforts:
Create a Blue Sky Tour, in which several employees take turns driving around the
country to campgrounds to distribute promotional items such as Blue Sky stickers
and discount coupons
Attend canoe and kayak races, bicycling events, and rock climbing competitions
with our Blue Sky truck to distribute free water, stickers, and discount coupons for
Blue Sky shirts or hats.
Organize Blue Sky hikes departing from participating retailers.
Hold a Blue Sky design contest, selecting a winning slogan and logo to be added
to the customized line.
Budgets, Schedules and Monitoring

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Example:

Though its history is short, Blue Sky has enjoyed a steady increase in sales
since its introduction three years ago. Figure A shows these three years, plus
projected sales for the next three years, including the introduction of the two new
product lines. Additional financial data are included in the overall business plan
for the company.

Annual Sales for Blue Sky Clothing

The timeline for expansion of outlets and introduction of the two new
product lines. The implementation of each of these tasks will be monitored closely
and evaluated for its performance.

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 Timeline for First Three Years of Marketing Plan

2. Production Plan
Production Plan contains the following:
a. The amount of capacity the company must have
Capacity is the maximum level of output that a company can sustain to
make a product or provide a service. Planning for capacity requires management to
accept limitations on the production process. No system can operate at full capacity
for a prolonged period; inefficiencies and delays make it impossible to reach a
theoretical level of output over the long run.
b. How many employees are required
c. How much material must be purchased
3. Financial Plan
The components of the financial plan are as follows:

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 a. An analysis of the firms current financial condition as indicated by an analysis of
the most recent statements
b. A sales forecast
c. The capital budget
d. A set of projected financial statements
e. The external financing plan

Example of Production and Financial Plan:

Jan is a home-based potter who makes custom mugs by the case. Her capacity is no more
than 15 cases of mugs per week. She has calculated the variable cost for each case, including clay,
glaze and packaging to be $50 per case. It costs Jan $3,000 per week to run her business, including
her wage. The cost per case, when we include the $3,000 per week in fixed costs, changes
depending on the number of cases produced each week. This is calculated in the table following.

Notice that the break-even is not a point, but it varies for each different price point. If she can get
$425 per case for her mugs, she needs to be able to produce and sell eight cases of mugs per week.
We can plot this on a graph as follows:

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4. Human Resource Plan
The human resource plan must contain the following:
a. Personnel requirements of the company
Example:
Listed below are the roles and responsibilities for the Blue Sky project team:

Senior Project Director

Plans, directs and oversees the project, and ensures that deliverables and
functionality are achieved as defined in the Project Charter, funding documentation,
and subsequent project plans
Maintains accountability for the management of all resources assigned to the
project
Serves as the primary liaison between the project and the Project Sponsor and the
Steering Committee

Quality Manager
Manages both product and process quality activities for the project
Maintains the requirements management traceability matrix
Provides insight into project health by reviewing process and product activities
for adherence to standards and plans
b. Plans for recruitment and selection

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 Example:
Staff Acquisition
The Senior Project Director, with support from the Executive
Sponsor, will negotiate with functional and department managers to identify
and assign resources in accordance with the project organizational structure
approved in the project charter. This plan shall also identify various
external sourcing mechanisms to hire new project resources. All resources
and their anticipated project assignment timeframe must be approved by the
appropriate functional/department manager before the resource may begin
any project work.

c. Training plan
Example:
Staff Training
When new staff joins the project, the Senior Project Director (or
delegated project staff) will provide a project orientation. The orientation
should include discussions related to the following topics:
Background of the Project
Current Status of the Project
Specific Job Duties and Expectations
Introduction to the Staff and Consultants
Overview of the Facility and Infrastructure
Overview of the Project Processes, including time reporting, attendance,
and status meetings

d. Retirement plan
Among the different types of retirement plans, there are four main types:
government-sponsored plans, personal plans, annuities, and employer-sponsored
plans. Employer-sponsored plans are further divided into two which are the
qualified plans and the non-qualified plans.

38
 Qualified retirement plans meet the Internal Revenue Code requirements
and the Employee Retirement Income Security Act of 1974 (ERISA) requirements.
These plans offer several tax benefits: they allow employers to deduct annual
allowable contributions for each participant; contributions and earnings on those
contributions are tax-deferred until withdrawn for each participant; and some of the
taxes can be deferred even further through a transfer into a different type of IRA.

Types of Qualified Plans:

Defined benefit plans are company retirement plans, such as pension plans,
in which a retired employee receives a specific amount based on salary
history and years of service, and in which the employer bears the investment
risk.

Defined contribution plans allow the employer and/or employee to make

contributions, so that the final benefits depend on how much was in the
account and the rate earned by the account's investments. An individual
account must be set up for each participant in the plan. The federal
government does not guarantee a participant's benefits; instead, the plan is
participant-directed, meaning that the employee makes the investment
decisions based on the employer's options.
Non-qualified retirement plans are plans that do not meet the IRC or
ERISA requirements. These plans are funded by employers and are more flexible
but they do not have the tax benefits qualified plans do. Benefits are paid at the
retirement age in the form of annuities, which are taxed as ordinary income tax, or
in lump sum payments, which can be transferred into an IRA to defer taxes.

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PARTS OF STRATEGIC PLAN

Strategic planning is an organizational management activity

that is used to set priorities, focus energy and resources,
strengthen operations, ensure that employees and other
stakeholders are working toward common goals, establish
agreement around intended outcomes/results, and assess and
adjust the organization's direction in response to a changing
environment. It is a disciplined effort that produces fundamental
decisions and actions that shape and guide what an organization is, who it serves, what it does, and
why it does it, with a focus on the future. Effective strategic planning articulates not only where
an organization is going and the actions needed to make progress, but also how it will know if it
is successful.

1. Executive Summary
An executive summary, or management summary, is a short document or section of a
document, produced for business purposes, that summarizes a longer report or proposal or a group
of related reports in such a way that readers can rapidly become acquainted with a large body of
material without having to read it all.

2. Mission, Vision and Core Values

Vision is a statement that describes the organization as it would
appear in a future successful state. When developing a vision statement,
try to answer this question: If the organization were to achieve all of its
strategic goals, what would it look like 10 years from now? An effective
vision statement is inspirational and aspirational. It creates a mental
image of the future state that the organization wishes to achieve. A
vision statement should challenge and inspire employees.

Mission is a statement that explains the companys reason for existence. It describes the
company, what it does and its overall intention. The mission statement supports the vision and

40
serves to communicate purpose and direction to employees, customers, vendors and other
stakeholders. The mission can change to reflect a companys priorities and methods to accomplish
its vision.

Core Values are the statement that describes what the organization believes in and how it
will behave. Not all organizations create or are able to uphold a values statement. In a values-led
company, the values create a moral compass for the company and its employees. This compass
guides decision-making and establishes a standard that actions can be assessed against. A values
statement defines the deeply held beliefs and principles of the organizational culture. These core
values are an internalized framework that is shared and acted on by leadership.

3. Environmental and SWOT Analysis

An environmental scan, called the e-scan for short, is a process for discovering and
documenting facts and trends in the operating environment of an organization that are likely to
affect the organization in its future work. E-scan findings are used to orient strategic planning
participants on the context in which the organizations mission is carried out. The e-scan can also
include a summary of internal information about the organization and its history including who
has been served, results it has achieved, its current structure, and financial data. It is often put in
the framework of a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis.
Strengths are internal characteristics, qualities, and capacities that are doing well and are part
of the reason the organizations accomplishments.
Weaknesses are internal qualities that need to be improved.
Opportunities refer to external activities or trends that the organization may benefit from,
connect with or take advantage of to grow or enhance its performance.
Threats are external activities or trends that threaten the current and future success of the
organization.
4. Goals, Priorities and Strategies
The strategic direction is a concise statement about the strategy or approach an
organization will take toward its work over a specific period of time. The statement is based on a
combination of both the current environment (the opportunities and threats facing the organization)

41
and the mission and competencies of the organization. It is often a direct response to the strategic
questions asked by an organization.

Goals and objectives set out the broad results that the organization hopes to achieve within
a specific time period (goals) and statements of shorter term results and collections of activities
(objectives) which if achieved will constitute and achievement of the goals.

Example of Executive Summary:

Example of Vision

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Example of Mission:

Example of Core Values:

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Example of SWOT Analysis:

44
Example of Strategic Direction:

Example of Goals and Objectives:

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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; and

2. Use of aids to planning.

On the other hand, the hindrances to planning effectively, according to Plunkett and Attner,
are the following:

1. Managers 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; and
7. Concentrating on only the controllable variables.

Among the aids to planning that may be used are:

1. Gather as much information as possible;

2. Develop multiple sources of information; and
3. Involve others in the planning process.

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 REFERENCES

Components of an Effective Strategic Planning System. (n.d.). Retrieved January 9, 2017, from
Professional Growth Systems: http://www.professionalgrowthsystems.com/library-
articles/components-effective-strategic-planning-system/

Fire Emergency Preparedness Planning. Retrieved January 9, 2017, from http://www.toy-

icti.org/info/planning.html

How To Write A Strategic Plan. (n.d.). Retrieved January 9, 2017, from

https://www.hks.harvard.edu/ocpa/cms/files/communications-program/communications-
workshops/workshop-handouts/RAMAN_strategic-planning.pdf

Medina, R.G. 1999. Engineering Management

Mission & Vision Statements: What is the difference between mission, vision and values
statements? (n.d.). Retrieved January 9, 2017, from Society for Human Resource
Department: https://www.shrm.org/resourcesandtools/tools-and-samples/hr-
qa/pages/isthereadifferencebetweenacompanysmission,visionandvaluestatements.aspx

Sample Strategic Plan. (n.d.). Retrieved January 9, 2017, from

http://www.ecdcus.org/what_we_do/sample_strategicplan-serviceagency.pdf

Target Market. (n.d.). Retrieved January 9, 2017, from Investopedia:

http://www.investopedia.com/terms/t/target-market.asp

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