Planning Tools and Techniques

BUS 206Erlan 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.

Competitor intelligence - an environmental scanning activity by which organizations gather information about competitors.

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.

Exhibit PM-1: Forecasting Techniques

Exhibit PM-1: Forecasting Techniques (cont.)

Benchmarking

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

Exhibit PM-2: Steps in Benchmarking

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.

Exhibit PM-3: Types of Budgets

Exhibit PM-4: How to Improve Budgeting

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.

Exhibit PM-5: A Gantt Chart

Scheduling (cont.)

Load chart - a modified Gantt chart that schedules capacity by entire departments or specific resources.

Exhibit PM-6: A Load Chart

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.

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.

Exhibit PM-7: Steps in Developing a PERT Network

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

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

Exhibit PM-9: PERT Network forConstructing an Office Building

Breakeven Analysis

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

Exhibit PM-10: Breakeven Analysis

Linear Programming

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

Exhibit PM-11: Production Data forCinnamon-Scented Products

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

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.

Exhibit PM-13: Project Planning Process

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

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?