Principles of Management Learning Session # 20 Dr. A. Rashid Kausar

Re-cap of Session # 19

Planning and Decision Aids Management Science Or Operation Research For ?

Planning and Decision Aids Increasing Decision Effectiveness by using Mathematical, Statistical, & Qualitative Models.

Planning and Decision Aids 1.For Assessing Environment: 1.1 Environmental Scanning 1.2 Forecasting 1.3 Benchmarking

Planning and Decision Aids 2.For Allocating Resources: 2.1 Budgeting 2.2 Scheduling 2.3 Break even Analysis 2.4 Linear Programming

Planning and Decision Aids 3. Contemporary Planning Techniques: 3.1 Project Management 3.2 Scenarios Analysis

Planning and Decision Aids 1.For Assessing Environment: 1.1 Environmental Scanning; The screening of large amounts of information to anticipate and interpret changes in the environment.

Planning and Decision Aids 1.For Assessing Environment: 1.1.1 SWOT Analysis Strengths Weaknesses Opportunities Threats

Planning and Decision Aids 1.For Assessing Environment: 1.1.2 Competitive Intelligence; An activity that seeks to identify who are our competitors, what are they doing, and how their actions will affect our organization.

Planning and Decision Aids 1.For Assessing Environment: 1.2 Forecasting;

Planning and Decision Aids 1.2 FORECASTING Process of making predictions about changing conditions and future events that may affect the business of an organization.

Planning and Decision Aids 1.2 FORECASTING Methods are of 3 Types !

Planning and Decision Aids 1.2 FORECASTING 1.2.1 Quantitative 1.2.2 Qualitative or Technological 1.2.3 Judgmental

Planning and Decision Aids 1.2 FORECASTING 1.2.1 Quantitative Forecast relies on numerical data and mathematical models to predict future conditions.

Planning and Decision Aids 1.2 FORECASTING 1.2.1 Quantitative 1.2.1.1 Time Series Methods 1.2.1.2 Explanatory / Causal Methods

Planning and Decision Aids 1.2 FORECASTING 1.2.1 Quantitative 1.2.1.1 Time Series Methods It uses historical data to forecast the future.

Planning and Decision Aids 1.2 FORECASTING 1.2.1 Quantitative 1.2.1.2 Explanatory / Causal Methods… focus on major variables Regression, Econometric and Leading Indicators

Planning and Decision Aids 1.2 FORECASTING 1.2.2 Qualitative or Technological.. Aim to predict long term technology trends by relying on creativity, judgements and experts knowledge.(Delphi Analysis)

Planning and Decision Aids 1.2 FORECASTING 1.2.3 Judgmental Relies on individual judgments or committee agreements about future conditions

Planning and Decision Aids 1.For Assessing Environment: 1.3 Benchmarking; The search for the best practices among competitors or non-competitors that lead to their superior performance.

Planning and Decision Aids 2.For Allocating Resources: 2.1 Budgeting 2.2 Scheduling 2.3 Break even Analysis 2.4 Linear Programming

Planning and Decision Aids 2. For Allocating Resources: 2.1 Budgeting; The Budget is a numerical plan for allocating resources to specific activities in a specific period.