Engineering Management Lecture 5
Engineering Management Lecture 5
Engineering Management Lecture 5
Planning
The Foundation of Successful
Management
• Planning
coping with uncertainty by formulating
future courses of action to achieved
specified results
can be defined as setting goals and
deciding how to achieve them
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Planning
HOW CAN PLANNING HELP MANAGERS
DEAL WITH UNCERTAINTY?
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Planning
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Planning
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How Planning Helps You
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Uncertainty
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Planning & Uncertainty
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The Adaptive Cycle
• Adaptive Cycle
businesses are continuously cycling
through decisions about three kinds of
business problems: (1) entrepreneurial, (2)
engineering, and (3) administrative
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Planning & Uncertainty
Firms continuously make decisions about three
kinds of business problems:
1. entrepreneurial - selecting and making
adjustments of products and markets
2. engineering - producing and delivering the
products
3. administrative - establishing roles,
relationships, and organizational processes
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Fundamentals Of Planning
WHAT IS INVOLVED WITH PLANNING?
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Fundamentals Of Planning
Figure 5.2: Making Plans
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Three Types of Planning for Three
Levels of Management
• Strategic planning
Is done by top management where long-
term goals are determined and available
resources are identified
determine what the organization’s long-
term goals should be for the next 1-5 years
with the resources they expect to have
available
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Three Types of Planning for Three
Levels of Management
• Tactical planning
is done by middle management where
contributions their departments or similar
work units can make are determined
determine what contributions their
departments can make during the next 6-
24 months
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Three Types of Planning for Three
Levels of Management
• Operational planning
by first-line managers where how specific
tasks will be accomplished using available
resources is determined
how to accomplish specific tasks within the
next 1-52 weeks
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Three Levels of Management, Three
Types of Planning
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Goals, Action Plans, & Operating
Plans
• Goals
specific commitment to achieve a
measurable result within a stated period of
time
also known as an objective
strategic, tactical, operational
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Goals, Action Plans, & Operating
Plans
Type of Goals
•Strategic goals focus on objectives for the
organization as a whole
•tactical goals focus on the actions needed to
achieve strategic goals
•operational goals are concerned with short-
term matters associated with realizing tactical
goals
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Types of Planning Reports
• Specific
• Measurable
• Attainable
• Results-oriented
• Target dates
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What Is Management by Objectives
(MBO)?
• A planning technique for setting goals
developed by Peter Drucker in 1954
1. Jointly set objectives
2. Develop action plan
3. Periodically review performance
4. Give performance appraisal and
rewards, if any
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The Planning/Control Cycle
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The Planning/Control Cycle
Figure 5.5
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Project Planning
• Project management
achieving a set of goals through planning,
scheduling, and maintaining progress of
the activities that comprise the project
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The Project Life Cycle
Figure 5.6
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The Project Life Cycle
3. During the execution stage, the
management style and control tools are
established
4. Closing occurs when the client accepts
the project
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