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Planning Defined
Planning vs. Coordinating
Planning at Various Management Levels
The Planning Process
Types of Plans

Importance of Planning
Making Planning Effective
Provides direction
Reduces uncertainty
Minimizes waste and redundancy
Sets the standards for controlling
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Top
Management

Middle
Management

Lower Management

Middle
Management

Lower Management

Middle
Management

Lower Management

Middle
Management
Written document for implementing & controlling an
organization’s marketing activities related to a particular
marketing strategy
Written document for that states the quantity of output a
company must produce in board terms and by product
family
Document that summarizes the current financial
situation of the firm, analyzes financial needs, and
recommends a direction for financial activities.
Document that indicates the
human
resource
needs of a company detailed in
terms of quantity and quality and
based on the requirements of the
company’s strategic plan.
Planning reduces uncertainty, risk and confusion in operation.
Planning guides the decision making by the managers.
Planning helps in achieving coordination and facilitates control.

Planning with an element of flexibility makes the organization
adaptable.
Planning leads to economy and efficiency in operations.

Planning begins with the determination of objectives and
directed towards their achievement.
Engineer Hermogenes Ancheta has just received his appointment papers
from his new immediate superior, the Vice President for Operations. He has been
promoted from Assistant Manager to Manager of the Maintenance Department.
After congratulating him, his boss gave him a verbal directive that he should put
some order in his department and make it work in the most effective and efficient
manner possible.
Engineer Ancheta has just passed the board examination for Mechanical
Engineering when he joined Motorbus Company in 1993. By June 1995, he
informed his former classmates at the University of Santo Tomas that he was
promoted as Assistant Manager for Maintenance.
The former manager of the department, Engineer Gaudencio Inductivo, joined the
company since it started operations in 1989. A total of ten buses began plying the
Manila-Isabela route. A maintenance unit was put up at the Manila Terminal in
Sampaloc. Another unit serves the Ilagan, Isabela terminal. Each unit has a fulltime mechanic and one assistant.
When a company bus comes in for repair, the mechanic diagnoses the
various automotive systems in the bus and later produces a list of parts needing
replacement. The mechanic sends the list to Engineer Inductivo, who in
turn, forwards the same to the company accountant for approval of the purchase
request. Oftentimes, Engineer Inductivo performs actual purchasing himself.
Later, he sends the purchased items to the mechanic who made the request.
The maintenance units were operating normally until 40 new buses were
produced by the company in 1993. Since then, every maintenance personnel were
so busy that they threatened to quit their jobs unless additional mechanics and
assistants were recruited. By the end of 1993, each unit has a personnel
complement of 5 mechanics and 5 assistants.
Even with the current developments, the old method of purchasing was
no improved. Purchase requests started to pile up. Mechanics and drivers began
complaining to the VP for Operations about delays in the delivery of needed parts.
The VP for Operations immediately sent a note to Engineer Induvtivo
ordering that the problem should be resolved immediately. Engineer Inductivo
was hard pressed and he could not offer an immediate solution. The next
day, Engineer Inductivo informed the VP for Operations that he is requesting for
the approval of his application for retirement as he is already 62 years old.
The VP forwarded the request to the President with an endorsement
justifying the request. On the same day, the request for retirement was approved.
The next day, Engineer Ancheta received his appointment papers promoting him
to Manager.
One of the first things Engineer Ancheta did was to inspect the storage room for
parts. He found out that the room was full of uneven supply of parts. Some parts
were excessive quantities, while some important ones were inadequately stocked.
A corner of the room contains a big volume of obsolete parts.
At the end of the day, Engineer Ancheta was informed by the VP
that the company will be fielding an additional 50 new busses within 30
days. This will mean that by next month, about 100 buses will be servicing
the various routes assigned to Motorbus Company.
Engineer Ancheta is now mulling over how he will make the
operations of his department as efficient and effective as possible.

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Engineering Management_PLANNING

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  • 2. Planning Defined Planning vs. Coordinating Planning at Various Management Levels The Planning Process Types of Plans Importance of Planning Making Planning Effective
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  • 8. Provides direction Reduces uncertainty Minimizes waste and redundancy Sets the standards for controlling
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  • 18. Written document for implementing & controlling an organization’s marketing activities related to a particular marketing strategy Written document for that states the quantity of output a company must produce in board terms and by product family Document that summarizes the current financial situation of the firm, analyzes financial needs, and recommends a direction for financial activities. Document that indicates the human resource needs of a company detailed in terms of quantity and quality and based on the requirements of the company’s strategic plan.
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  • 21. Planning reduces uncertainty, risk and confusion in operation. Planning guides the decision making by the managers. Planning helps in achieving coordination and facilitates control. Planning with an element of flexibility makes the organization adaptable. Planning leads to economy and efficiency in operations. Planning begins with the determination of objectives and directed towards their achievement.
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  • 27. Engineer Hermogenes Ancheta has just received his appointment papers from his new immediate superior, the Vice President for Operations. He has been promoted from Assistant Manager to Manager of the Maintenance Department. After congratulating him, his boss gave him a verbal directive that he should put some order in his department and make it work in the most effective and efficient manner possible. Engineer Ancheta has just passed the board examination for Mechanical Engineering when he joined Motorbus Company in 1993. By June 1995, he informed his former classmates at the University of Santo Tomas that he was promoted as Assistant Manager for Maintenance. The former manager of the department, Engineer Gaudencio Inductivo, joined the company since it started operations in 1989. A total of ten buses began plying the Manila-Isabela route. A maintenance unit was put up at the Manila Terminal in Sampaloc. Another unit serves the Ilagan, Isabela terminal. Each unit has a fulltime mechanic and one assistant.
  • 28. When a company bus comes in for repair, the mechanic diagnoses the various automotive systems in the bus and later produces a list of parts needing replacement. The mechanic sends the list to Engineer Inductivo, who in turn, forwards the same to the company accountant for approval of the purchase request. Oftentimes, Engineer Inductivo performs actual purchasing himself. Later, he sends the purchased items to the mechanic who made the request. The maintenance units were operating normally until 40 new buses were produced by the company in 1993. Since then, every maintenance personnel were so busy that they threatened to quit their jobs unless additional mechanics and assistants were recruited. By the end of 1993, each unit has a personnel complement of 5 mechanics and 5 assistants. Even with the current developments, the old method of purchasing was no improved. Purchase requests started to pile up. Mechanics and drivers began complaining to the VP for Operations about delays in the delivery of needed parts.
  • 29. The VP for Operations immediately sent a note to Engineer Induvtivo ordering that the problem should be resolved immediately. Engineer Inductivo was hard pressed and he could not offer an immediate solution. The next day, Engineer Inductivo informed the VP for Operations that he is requesting for the approval of his application for retirement as he is already 62 years old. The VP forwarded the request to the President with an endorsement justifying the request. On the same day, the request for retirement was approved. The next day, Engineer Ancheta received his appointment papers promoting him to Manager. One of the first things Engineer Ancheta did was to inspect the storage room for parts. He found out that the room was full of uneven supply of parts. Some parts were excessive quantities, while some important ones were inadequately stocked. A corner of the room contains a big volume of obsolete parts.
  • 30. At the end of the day, Engineer Ancheta was informed by the VP that the company will be fielding an additional 50 new busses within 30 days. This will mean that by next month, about 100 buses will be servicing the various routes assigned to Motorbus Company. Engineer Ancheta is now mulling over how he will make the operations of his department as efficient and effective as possible.