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Planning Tools and Techniques

Planning Tools and Techniques. BUS 206 Erlan Bakiev, Ph. D. Zirve University Spring 2012. Assessing the Environment. Environmental scanning - the screening of large amounts of information to anticipate and interpret changes in the environment.

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Planning Tools and Techniques

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  1. Planning Tools and Techniques BUS 206 Erlan Bakiev, Ph. D. Zirve University Spring 2012

  2. Assessing the Environment • Environmental scanning - the screening of large amounts of information to anticipate and interpret changes in the environment. • Competitor intelligence - an environmental scanning activity by which organizations gather information about competitors.

  3. Forecasting Techniques • Forecasts - predictions of outcomes. • Quantitative forecasting - forecasting that applies a set of mathematical rules to a series of past data to predict outcomes. • Qualitative forecasting - forecasting that uses the judgment and opinions of knowledgeable individuals to predict outcomes.

  4. Exhibit PM-1: Forecasting Techniques

  5. Exhibit PM-1: Forecasting Techniques (cont.)

  6. Benchmarking • Benchmarking - the search for the best practices among competitors or non-competitors that lead to their superior performance.

  7. Exhibit PM-2: Steps in Benchmarking

  8. Allocating Resources • Resources - the assets of the organization including financial, physical, human, intangible, and structural/cultural. • Budget - a numerical plan for allocating resources to specific activities.

  9. Exhibit PM-3: Types of Budgets

  10. Exhibit PM-4: How to Improve Budgeting

  11. Scheduling • 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 be completed. • Gantt chart - a scheduling chart developed by Henry Gantt that shows actual and planned output over a period of time.

  12. Exhibit PM-5: A Gantt Chart

  13. Scheduling (cont.) • Load chart - a modified Gantt chart that schedules capacity by entire departments or specific resources.

  14. Exhibit PM-6: A Load Chart

  15. Scheduling (cont.) • PERT network - a flowchart diagram showing the sequence of activities needed to complete a project and the time or cost associated with each. • Events - end points that represent the completion of major activities in a PERT network. • Activities - the time or resources needed to progress from one event to another in a PERT network.

  16. Scheduling (cont.) • Slack time - the amount of time an individual activity can be delayed without delaying the whole project. • Critical path - the longest sequence of activities in a PERT network.

  17. Exhibit PM-7: Steps in Developing a PERT Network

  18. Exhibit PM-7: Steps in Developing a PERT Network (cont.)

  19. Exhibit PM-8: Events and Activities inConstructing an Office Building

  20. Exhibit PM-9: PERT Network forConstructing an Office Building

  21. Breakeven Analysis • Breakeven analysis - a technique for identifying the point at which total revenue is just sufficient to cover total costs.

  22. Exhibit PM-10: Breakeven Analysis

  23. Linear Programming • Linear programming - a mathematical technique that solves resource allocation problems.

  24. Exhibit PM-11: Production Data forCinnamon-Scented Products

  25. Exhibit PM-12: Graphical Solution to a Linear Programming Problem

  26. Project Planning • Project - a one-time-only set of activities that has a definite beginning and ending point in time. • Project management - the task of getting a project’s activities done on time, within budget, and according to specifications. • Scenario - a consistent view of what the future is likely to be.

  27. Exhibit PM-13: Project Planning Process

  28. Terms to Know • Environmental scanning • Competitor intelligence • Forecasts • Quantitative forecasting • Qualitative forecasting • Benchmarking • Resources • Budget • Scheduling • Gantt chart Load chart PERT network Events Slack time Critical path Breakeven analysis Linear programming Project Project management Scenario

  29. Review • Describe different approaches to assessing the environment? • Describe four techniques for allocating resources. • What is the project management, and what are the steps managers use in planning projects?

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