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 in Constructing an Office Building

20. Exhibit PM-9: PERT Network for Constructing 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 for Cinnamon-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?