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Engineering
management
PREPARED BY: NASH ANDREI P. DUCOT
Planning as the primary function of the Government because it is a predetermined course
of action to achieve a specified goal. It is also an intellectual process characterized by
thinking before doing; an attempt on the part of manager to anticipate the future in order to
achieve better performance.refers to the process of deciding what to do and how to do it.
Planning occurs at many levels, from day-to-day decisions made by individuals and families,
to complex decisions made by businesses and governments.
This paper focuses on community land use and transport planning, but most principles
described apply to any planning activity. In simple words, planning is deciding in advance
what is to be done, when where, how and by whom it is to be done.
INTRODUCTION
PLANNERS
Planners are
professionals who
facilitate decision-making.
WHAT
PLANNERS
DO:
Planners do not make decisions
themselves; rather, they support
decision-makers (managers,
public officials, citizens) by coordinating
information and activities. Their role is to create a
logical, systematic decision-making process that
results in the best actions. Although grounded in
the mundane, planners help nurture a
community’s deepest aspirations, such as love,
hope and beauty.
Planners translate theoretical goals into specific
actions. Planning is an art as well as a science. It
requires judgment, sensitivity and creativity.
Planning often deals with in-between issues and so requires perception of what
artists call negative space (spaces between objects). For example, architects
are concerned with building designs while planners are concerned with the
spaces between buildings. Similarly, planners are responsible for integrating
various transport system components (walkways, parking facilities, driveways,
roads, terminals, ports, etc.). They create connections between different
agencies, sectors and jurisdictions. As a result, planners must collaborate with
diverse interest groups.
Planners facilitate change and so must overcome entrenched practices and
interests.
Planners who follow professional practices generally do a pretty good job of
identifying the best course of action.
THE NATURE OF PLANNING
The essential nature of planning can be highlighted by the four major aspects of
planning:
a) Contribution to Purpose and
Objectives:
The purpose of every plan and all
derivative plans is to facilitate the
accomplishment of enterprise
purpose and objectives. This
principle derives from the nature of
organized enterprise, which exists for
the accomplishment of group
purpose through deliberate
cooperation.
b) Primacy of Planning:
Planning is the primary management
function, the one that precedes and
is the basis for the organizing,
influencing, staffing, eading and
controlling functions of managers.
c) Pervasiveness of Planning:
Planning is a function of all managers,
although the character and breadth of
planning will vary with their authority
and with the nature of policies and
plans outlined by their superiors. It is
virtually impossible to circumscribe the
area of choice where they can exercise
no discretion, and unless they have
some planning responsibility, it is
doubtful that they are truly managers.
d) Efficiency of Plans:
The efficiency of a plan is measured by the amount it contributes
to purpose and objectives as offset by the costs and other
unsought consequences required to formulate and operate it. A
plan can contribute to the attainment of objectives, but at too high
or unnecessarily high costs. This concept of efficiency implies the
normal ratio of input to output, but goes beyond the usual
understanding of inputs and outputs in terms of pounds, labor
hours, or units of production to include such value as individual
and group satisfactions.
IMPORTNACE OF PLANNING
The planning function has four important
goals:
A. To offset uncertainty and change.
B. To focus attention on objectives,
C. To gain economical operation, and
D. To facilitate control.
A) To Offset Uncertainty and Change
Organizational planning has two purposes: protective and affirmative. The
protective purpose of planning is to minimize risk by reducing the
uncertainties surrounding business conditions and clarifying the
consequences of related management actions. The affirmative purpose is to
increase the degree of organizational success.
B) Focus Attention on Objectives
Because all planning is directed toward achieving enterprise objectives, the
very act of planning focuses attention on these objectives. Considered overall
plans unify interdepartmental activities. Managers, being typically immersed
in immediate problems, are forced through planning to consider the future
It enhances
the decision
making
process
It emphasizes
on the organizational
objectives
It pushes
It helps managers to
angers to be coordinate
future their decisions
oriented
It helps in the
establishment of
organizational
direction
It helps as a
measurement of the
accomplishment
The benefits
and
importance of
planning
WHY IS PLANNING NEEDED?
PLANNING PROCESS
1. Recognizing Need for Action:
The first step in planning process is the awareness of business opportunity
and the need for taking action. Present and future opportunities must be
found so that planning may be undertaken for them. The trend of economic
situation should also be visualized. For example, if thinking of the
government is to develop rural areas as industrial centres, a farsighted
businessman will think of setting up units suitable to that environment and
will avail the facilities offered for this purpose. Before venturing into new
areas the pros and cons of such projects should be evaluated. A beginning
should be made only after going through a detailed analysis of the new
opportunity.
2. Gathering Necessary Information:
Before actual planning is initiated relevant facts and figures are collected.
All information relating to operations of the business should be collected in
detail. The type of customers to be dealt with, the circumstances under
which goods are to be provided, value of products to the customers, etc.
should be studied in detail. The facts and figures collected will help in
framing realistic plans.
3. Laying Down Objectives:
Objectives are the goals which the management tries to achieve. The
objectives are the end products and all energies are diverted to achieve
these goals. Goals are a thread which bind the whole company. Planning
starts with the determination of objectives. The tie between planning and
objectives helps employees to understand their duties. Objectives are the
guides of employees. It is essential that objectives should be properly
formulated and communicated to all members of the organization.
4. Determining Planning Premises:
Planning is always for uncertain future. Though nothing may be certain in
the coming period but still certain assumptions will have to be made for
formulating plans. Forecasts are essential for planning even if all may not
prove correct. A forecast means the assumption of future events. The
behaviour of certain variables is forecasted for constituting planning
premises.
Forecasts will generally be made for the following:
(a) The expectation of demand for the products.
(b) The likely volume of production.
(c) The anticipation of costs and the likely prices at which products
will be marketed.
(d) The supply of labour raw materials etc.
(e) The economic policies of the government.
(f) The changing pattern of consumer preferences.
ADVANTAGES AND
DISADVANTAGES
OF PLANNING
ADVANTAGES
1. First, it creates a unity of purpose for the organization, since the objectives
are formally expressed and the methods and procedures to obtain these
objectives are clearly defined.
2. Second, proper planning helps in the process of motivation. If plans are
properly communicated to all members of the organization, then everyone can
feel involved in carrying them out.
3. Third, it reduces the elements of risk and uncertainty, since accurate
forecast of future is an integral part of effective planning. Also, since planning
is done in advance of actions, it prevents hasty judgements and results in
disciplined thinking.
4. Fourth, proper planning results in effective utilization of organizational
resources. This will reduce unproductive work, idle time for workers, downtime
for machines, thus resulting in minimum cost of operations.
5. Fifth, it improves the competitive strength of the company. Since the
operations are planned in advance, the company is able to take its time in
shopping around for best and competitive rates for raw materials, equipment
and parts and for human resources.
DISADVANTAGES
1. Planning kills creativity and innovation because employees have to work
according to plan and if an employee has some innovative idea or way of
working then it is not easy for the employee to implement that as any deviation
even if it leads to the benefit of the company will not be implemented leading to a
loss for the company.
2. When it comes to the corporate world in today’s times where technology and
consumer taste change so rapidly planning may not be fruitful as every
assumption about the plan may not be turn out to be valid due to dynamic nature
of the business and economic environment.
3. Planning is expensive in the sense that it requires detailed analysis about the
future which involves a lot of manpower, money and other running expenses
leading to financial strain on the company, hence before going for extensive
planning a company should take the financial aspect also into consideration.
4. Lack of accuracy is another major limitation of planning because no matter
how accurate the data is but since the nature of planning is such that it always
dependent on the future and we all know that future is always uncertain which in
turn leaves the scope of planning being inaccurate.

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Engineering management planning process and importance

  • 2. Planning as the primary function of the Government because it is a predetermined course of action to achieve a specified goal. It is also an intellectual process characterized by thinking before doing; an attempt on the part of manager to anticipate the future in order to achieve better performance.refers to the process of deciding what to do and how to do it. Planning occurs at many levels, from day-to-day decisions made by individuals and families, to complex decisions made by businesses and governments. This paper focuses on community land use and transport planning, but most principles described apply to any planning activity. In simple words, planning is deciding in advance what is to be done, when where, how and by whom it is to be done. INTRODUCTION
  • 3. PLANNERS Planners are professionals who facilitate decision-making. WHAT PLANNERS DO: Planners do not make decisions themselves; rather, they support decision-makers (managers, public officials, citizens) by coordinating information and activities. Their role is to create a logical, systematic decision-making process that results in the best actions. Although grounded in the mundane, planners help nurture a community’s deepest aspirations, such as love, hope and beauty. Planners translate theoretical goals into specific actions. Planning is an art as well as a science. It requires judgment, sensitivity and creativity.
  • 4. Planning often deals with in-between issues and so requires perception of what artists call negative space (spaces between objects). For example, architects are concerned with building designs while planners are concerned with the spaces between buildings. Similarly, planners are responsible for integrating various transport system components (walkways, parking facilities, driveways, roads, terminals, ports, etc.). They create connections between different agencies, sectors and jurisdictions. As a result, planners must collaborate with diverse interest groups. Planners facilitate change and so must overcome entrenched practices and interests. Planners who follow professional practices generally do a pretty good job of identifying the best course of action.
  • 5. THE NATURE OF PLANNING The essential nature of planning can be highlighted by the four major aspects of planning: a) Contribution to Purpose and Objectives: The purpose of every plan and all derivative plans is to facilitate the accomplishment of enterprise purpose and objectives. This principle derives from the nature of organized enterprise, which exists for the accomplishment of group purpose through deliberate cooperation. b) Primacy of Planning: Planning is the primary management function, the one that precedes and is the basis for the organizing, influencing, staffing, eading and controlling functions of managers. c) Pervasiveness of Planning: Planning is a function of all managers, although the character and breadth of planning will vary with their authority and with the nature of policies and plans outlined by their superiors. It is virtually impossible to circumscribe the area of choice where they can exercise no discretion, and unless they have some planning responsibility, it is doubtful that they are truly managers.
  • 6. d) Efficiency of Plans: The efficiency of a plan is measured by the amount it contributes to purpose and objectives as offset by the costs and other unsought consequences required to formulate and operate it. A plan can contribute to the attainment of objectives, but at too high or unnecessarily high costs. This concept of efficiency implies the normal ratio of input to output, but goes beyond the usual understanding of inputs and outputs in terms of pounds, labor hours, or units of production to include such value as individual and group satisfactions.
  • 7. IMPORTNACE OF PLANNING The planning function has four important goals: A. To offset uncertainty and change. B. To focus attention on objectives, C. To gain economical operation, and D. To facilitate control. A) To Offset Uncertainty and Change Organizational planning has two purposes: protective and affirmative. The protective purpose of planning is to minimize risk by reducing the uncertainties surrounding business conditions and clarifying the consequences of related management actions. The affirmative purpose is to increase the degree of organizational success. B) Focus Attention on Objectives Because all planning is directed toward achieving enterprise objectives, the very act of planning focuses attention on these objectives. Considered overall plans unify interdepartmental activities. Managers, being typically immersed in immediate problems, are forced through planning to consider the future
  • 8.
  • 9. It enhances the decision making process It emphasizes on the organizational objectives It pushes It helps managers to angers to be coordinate future their decisions oriented It helps in the establishment of organizational direction It helps as a measurement of the accomplishment The benefits and importance of planning WHY IS PLANNING NEEDED?
  • 11. 1. Recognizing Need for Action: The first step in planning process is the awareness of business opportunity and the need for taking action. Present and future opportunities must be found so that planning may be undertaken for them. The trend of economic situation should also be visualized. For example, if thinking of the government is to develop rural areas as industrial centres, a farsighted businessman will think of setting up units suitable to that environment and will avail the facilities offered for this purpose. Before venturing into new areas the pros and cons of such projects should be evaluated. A beginning should be made only after going through a detailed analysis of the new opportunity. 2. Gathering Necessary Information: Before actual planning is initiated relevant facts and figures are collected. All information relating to operations of the business should be collected in detail. The type of customers to be dealt with, the circumstances under which goods are to be provided, value of products to the customers, etc. should be studied in detail. The facts and figures collected will help in framing realistic plans.
  • 12. 3. Laying Down Objectives: Objectives are the goals which the management tries to achieve. The objectives are the end products and all energies are diverted to achieve these goals. Goals are a thread which bind the whole company. Planning starts with the determination of objectives. The tie between planning and objectives helps employees to understand their duties. Objectives are the guides of employees. It is essential that objectives should be properly formulated and communicated to all members of the organization. 4. Determining Planning Premises: Planning is always for uncertain future. Though nothing may be certain in the coming period but still certain assumptions will have to be made for formulating plans. Forecasts are essential for planning even if all may not prove correct. A forecast means the assumption of future events. The behaviour of certain variables is forecasted for constituting planning premises.
  • 13. Forecasts will generally be made for the following: (a) The expectation of demand for the products. (b) The likely volume of production. (c) The anticipation of costs and the likely prices at which products will be marketed. (d) The supply of labour raw materials etc. (e) The economic policies of the government. (f) The changing pattern of consumer preferences.
  • 15. ADVANTAGES 1. First, it creates a unity of purpose for the organization, since the objectives are formally expressed and the methods and procedures to obtain these objectives are clearly defined. 2. Second, proper planning helps in the process of motivation. If plans are properly communicated to all members of the organization, then everyone can feel involved in carrying them out. 3. Third, it reduces the elements of risk and uncertainty, since accurate forecast of future is an integral part of effective planning. Also, since planning is done in advance of actions, it prevents hasty judgements and results in disciplined thinking. 4. Fourth, proper planning results in effective utilization of organizational resources. This will reduce unproductive work, idle time for workers, downtime for machines, thus resulting in minimum cost of operations. 5. Fifth, it improves the competitive strength of the company. Since the operations are planned in advance, the company is able to take its time in shopping around for best and competitive rates for raw materials, equipment and parts and for human resources.
  • 16. DISADVANTAGES 1. Planning kills creativity and innovation because employees have to work according to plan and if an employee has some innovative idea or way of working then it is not easy for the employee to implement that as any deviation even if it leads to the benefit of the company will not be implemented leading to a loss for the company. 2. When it comes to the corporate world in today’s times where technology and consumer taste change so rapidly planning may not be fruitful as every assumption about the plan may not be turn out to be valid due to dynamic nature of the business and economic environment. 3. Planning is expensive in the sense that it requires detailed analysis about the future which involves a lot of manpower, money and other running expenses leading to financial strain on the company, hence before going for extensive planning a company should take the financial aspect also into consideration. 4. Lack of accuracy is another major limitation of planning because no matter how accurate the data is but since the nature of planning is such that it always dependent on the future and we all know that future is always uncertain which in turn leaves the scope of planning being inaccurate.