Planning

Planning Tools and

Techniques

Techniques for Assessing the

Environment

1.
Environmental
Scanning

- screening of large
amounts of information
to anticipate and
interpret changes in
the environment

Techniques for Assessing the

Environment

Who are they?

What are
they doing?
How will they
affect us?

Competitor
Intelligence
- Environmental
Scanning process
which
organization
gather
information about
their competitor

Techniques for Assessing the

Environment

80 Reverse
Engineering
Internet
%

Advertisements

Legal and
Legal and Unethical
Ethical

Global

Techniques for Assessing the

Environment

2.
Forecasting
- Predictions
of Outcome

Two
Forecasting
Techniques
1. Quantitative
Forecasting
2. Qualitative
Forecasting

Techniques for Assessing the

Environment

Time series Analysis

Regression Model

Econometric Needs

Economic
Indicators

Quantitative
Forecasting
- applies a set of
mathematical
rules to a
series of past
data to predict
outcomes

Substitution
Effect

Techniques for Assessing the

Environment
Jury of Opinion

Customer Evaluation

Salesforce
Composition
Qualitative forecasting
- uses the judgment and
opinions of knowledgeable
individuals to predict
outcome

Techniques for Assessing the

Environment

3. Benchmarking
- the search for the best
practices among
competitors or noncompetitors that lead
to their superior
performance

Techniques for Assessing the

Environment

Steps in
Benchmarking
Form a
benchmarkin
g team

Gather
Interna
l and
extern
al data

Analyz
e data
to
identif
y
perfor
mance
gaps

Prepare
and
implem
ent
action
plan

Best
Practice
s

Techniques for Allocating

Resources

Resources
- assets of the
organization
including
financial,
physical,
human,
intangible, and

Techniques for Allocating

Resources

Budgeting
a numerical plan for
allocating resources to
specific activities

Techniques for Allocating

Resources

Types of Budget

Profit
Budget
combines
revenue
and
expense of
various
units to
determine
each units
profit
contributio

Cash
Budget
forecast
cash on
hand and
how much
will be
needed

Variab
le
Budge
t

Revenu
e
Budget

projects
future
sales

Fixed
Budg
et

Expense
Budget
list
primary
activities
and
allocates
dollar
amount to
each

Techniques for Allocating

Resources

Scheduling
detailing what
activities have to
be done, the
order in which
they are to be
completed, who is
to do each and
when they are to

Gantt
Chart
Load Chart
Load Chart

PERT Network

Techniques for Allocating

Resources

Sample Gantt Chart

Techniques for Allocating

Resources

Sampl
e
Load
Chart

Techniques for Allocating

Resources

Sample PERT
Network

Techniques for Allocating

Resources

Breakeven
Analysis
- a technique to
identify the point
at which total
revenue is just
sufficient to cover
BE = TFC / (Ptotal cost
VC)

Techniques for Allocating

Resources
Miguels Photocopying Services
Service Charge/
P 0.10
photocopy (P)
Fixed Cost a year
P 27,000.00
(TCF)
Variable Cost/ copy P 0.04
(VC)
BE = TFC / (P-VC)
BE = 27,000.00 / (0.10
0.04)
BE = 450,000 copies / P
45,000.00

Techniques for Allocating

Resources

Linear
Programming
- A mathematical
technique that
solves resource
allocation
problems

Techniques for Allocating

Resources
Numbers of Hour required (per
unit)
Departm Potpou Scente Monthly
ent
rri
d
Productio
Bags Candle
n
s
Capacity
Manufact
2
4
1,200
uring
Assembly
2
2
900
Profit per
P
P
unit
10.00 18.00

2P + 4S <=
1,200.00
2P + 4S <=
900.00

CONTEMPORARY PLANNING
TECHNIQUES

Project Management
is a task of getting a projects
activities done on time, within
budget and according to
specifications
Project
- is a one-time-only set of activities
that has a definite beginning and
ending point in time

CONTEMPORARY PLANNING
TECHNIQUES

Project management
process
Define
Objectives

Compare with
objectives

Identify
Activities and
resources

Determine
project
completion
date

Establish
sequences

Estimate time
for activities

Determine
additional
resource
requirements

Techniques for Allocating

Resources

Scenario
Planning
Scenario
is a consistent view of
what the future is likely
to be

END