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Advanced Organizer
Decision Making
Planning
Organizing
Leading
Controlling
Research
Design
Production
Quality
Marketing
Project Management
Time Management
Ethics
Career
Management Functions Managing Technology Personal Technology
Managing Engineering and Technology
Advanced Organizer
Decision Making
Planning
Organizing
Leading
Controlling
Research
Design
Production
Quality
Marketing
Project Management
Time Management
Ethics
Career
Management Functions Managing Technology Personal Technology
Managing Engineering and Technology
Chapter Objectives
• Explain the importance of planning• Identify missions and vision• Explain the roles of goals and objectives• Identify strategies a planning • Define the different types of forecasting• Define different approaches to forecasts• Solve forecasting problems • Discuss some strategies for managing
technology
Importance of Planning
• Provides method for identifying objectives
• Designs sequence of programs and activities to achieve objectives
Nature of Planning
Deciding in advance what to do, how to do it, when to do it, and who is to do it.
--Amos & Sarchet
1. Recognize Problem / Opportunity
2. Define Goals/Objectives
3. Assemble Relevant Data
4. Identify Feasible Alts
7. Predict Alts’ Outcomes
8. Choose the Best Alt.9. Audit the Results
Overall Mission / Objectives
5. Select the Criterion
6. Construct a Model
Planning/ Decision-Making Process
The Foundation for Planning
• Mission/Vision
• Goals and Objectives
• Strategies
All Customer Driven
Planning:Mission Statement
• First step in planning process• The mission statement answers the following
questions: Who we are? Who are the customers? What we do? and How we do it?
• This statement is usually one paragraph or less in length, is easy to understand, and describes the function of the organization.
Mission – Pal’s
To deliver excellence in food service while providing a menu focused on exceptional quality.
Mission Example
The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.
http://www.southwest.com 9/9/05
Mission Example
At Microsoft, our mission and value are to help people and businesses throughout the world realize their full potential.
http://www.microsoft.com/about/default.mspx#values
Mission Example
Florida International University is an urban, multi-campus, research university serving South Florida, the state, the nation and the international community. It fulfills its mission by imparting knowledge through excellent teaching, promoting public service, discovering new knowledge, solving problems through research, and fostering creativity.
http://www.fiu.edu/docs/fiumission_statement.htm
Vision
• A vision statement describes in graphic terms where the goal-setters want to position themselves in the future.
• A statement of how someone wants the future to be or believes it will be; it is used to set direction for an organization. --“Information Systems Management in Practice” by B.C. McNurlin
Vision Example
“To Be the World's Preferred Chemical Company” -- Eastman Chemical Company
"A personal computer on every desk, and every computer running Microsoft software." --Microsoft (1980’s)
Vision Example
We will be the preferred provider of safe, reliable, and cost-effective products and services that satisfy the electric-related needs of all customer segments.
-- Florida Power & Light Co.
Top Urban Public Research University.-- Florida International University
Mission/Vision Example
Our Mission• Sustainable Growth: The creation of shareholder and
societal value while we reduce our environmental footprint along the value chains in which we operate.
Our Vision• To be the world's most dynamic science company,
creating sustainable solutions essential to a better, safer, healthier life for people everywhere.
Our Core Values• Safety and Health• Environmental Stewardship• Highest Ethical Behavior• Respect for People
Planning:Goal and Objectives
• Gives purpose and direction
• More detailed goal statement
• How do we go about it?
• To (action verb)
• Consistent with Mission/Vision
Characteristics of Objectives
• Outcome - what is to be accomplished• Time Frame - expected completion date• Measure - metrics for success• Action - how the objective will be met
Goals and Objectives
• Drucker’s Objectives for Organizational Survival– Market Share– Innovation– Productivity– Physical and Financial Resources– Manager Performance and Development– Worker Performance and Attitude– Profitability– Social Responsibility
Management by Objectives
• Commonly Referred to as MBO
• Corollary MBWA(Management by Walking Around)
Management by Objectives (MBO)
Translates broad organizational goals into specific individual objectives.
1. Common understanding of overall organization and group goals.
2. Mutual agreement on the subordinate’s attention and superior’s support.
3. Execution
4. Review and evaluation
Strategic Planning
Strategies:Strategies:• Grand plans to attain longer-range
objectivesStrategic Planning:Strategic Planning: • Identify where the organization is• Identify where does it want to be in the
future• Define a strategy to get there
Strategic Planning
• Suggests ways (strategies) to identify and to move toward desired future states
• Consists of the process of developing and implementing plans to reach goals and objectives
• Not a business plan• Not an operational plan
Strategic Planning
Vision/Mission
’
Strategic Issues
SWOT AnalysisGap Analysis
Goals, Objectives
Vision/Mission
Strategic Issues
SWOT AnalysisGap Analysis
Forecasting
Aligned towards meeting customerexpectations and within framework Of organizations philosophy
Ongoing Strategic Planning, Goals
Objectives, Strategies
SWOT Analysis
• Internal– Strengths– Weaknesses
• External– Opportunities– Threats
Some Planning Concepts
Responsibility for planning• Planning is a continuing responsibility of
every manager.• Higher the manger, more time and further into
future.
Planning Premises (assumptions)• The anticipated environment in which plans
are expected to operate, including assumptions and known conditions.
• Contingency plan
Some Planning Concepts
Planning HorizonLogical planning encompasses a future period
of time necessary to fulfill the commitment involved in decisions made today ($ and time). – Commitment principle.
Some Planning Concepts
Policies: Guides for decision making that permit
implementation of upper management objectives, with room for interpretation and discretion by subordinates.
Procedure:A prescribed sequence of activities to
accomplish a desired purpose.
Strategic Planning: Forecasting
Vision /Mission
’
Strategic Issues
SWOT AnalysisGap Analysis
Goals , Objectives
Vision /Mission
Strategic Issues
SWOT AnalysisGap Analysis
Forecasting
Aligned towards meeting customer
expectations and within framework Of organization s philosophy
Ongoing Strategic Planning , Goals
Objectives , Strategies
Forecasting
• Essential preliminary to effective planning
• Engineering manager must be concerned with both future markets and future technology
Long Range Forecasts
• Design new products
• Determine capacity for new facility
• Long range supply of materials
Short Range Forecasts
• Amount of inventory for next month• Amount of product to produce next week• How much raw material delivered next
week• Workers schedule next week
Forecasting: Qualitative Methods
Judgment Methods:• Jury of executive opinion• Sales force composite• Users’ expectation• Delphi method
Counting Methods:• Market Testing• Market Survey
Delphi Method
• Delphi coordinator develops objective of forecast• Determine number of participants• Select and contact participants• Develop first questionnaire (opinions & forecasts) and
submit• Coordinator analyzes responses• Develop second questionnaire based on results of first• Analyze responses• Rounds continue until consensus reached or experts’
opinions cease to change
Delphi Method
• Eliminates effects of interactions between members
• Experts do not need to know who other experts are
• Reaches consensus
Forecasting: Quantitative Methods
Time Series Methods• Moving Average• Weighted Moving Average• Exponential Smoothing
Association or Causal Method• Simple Regression• Multiple Regression
Exponential Smoothing
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Exponential Smoothing
Advantages:• Simple in concept• Powerful because of its weighting process. Disadvantages:
• Exponential smoothing will lag as the trend increases or decreases over time.
• Exponential smoothing will fail to account for the dynamic changes.
Simple Regression Model
Excel: FORECAST (X, known_y’s, known_x’s)SLOPE (known_y’s, known_x’s)INTERCEPT (known_y’s, known_x’s)
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http://www2.chass.ncsu.edu/garson/pa765/regress.htmhttp://www.statsoft.com/textbook/stmulreg.htmlhttp://www.minitab.com/resources/whitepapers/burril2.aspx
Multiple Regression Model
Technological Forecasting
Prediction that certain technical development can occur within a specified time period with a given level of resource allocation
• Normative technological forecasting:After a desired future goal is selected, a process is
developed backward, from future to present, to achieve a goal.
• Exploratory technological forecasting:It begins with the present state of technology and
extrapolates into the future assuming some expected rate of technical progress.
Technology S-curve
New Invention Period
Technology ImprovementPeriod
Mature Technology Period
Technology Performance
Parameter
Natural Limits
Strategies for Managing Technology
• Doing new and better things– Invention– Innovation
• Doing things in new and better ways– Quality– Productivity
Entrepreneurship
• Entrepreneurship– A person who organizes and manages a
business undertaking, assuming the risk for the sake of profit.
• Intrapreneurship– Continuing entrepreneurial activities to
create new products and new business.
Managing Technological Changes
• Internet– Marketing (B2C)– Purchasing, Supply Chain Management (B2B)– Design, Manufacturing– Customer Service
• Information Age