Planning is decided in advance what is to be done in future.In planning management doing overall planning for eg- how much raw material is required,how much capital is required,how much labour is required etc.. For doing planning manager use planning techniques these are...
1) Forecasting.
2) Budgets.
3) Break- Even Analysis.
4) Linear Programming.
5) Waiting line.
6) Network techniques: PERT/CPM.
7) Theory of Probability.
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| Techniques of planning |
Techniques of planning..
1) Forecasting -Forecasting is predicts the future events in present.It is the most important technique of planning, through forecasting we predicts the future.Manager predicts what is likely to be happen in future,so they will prepare according to that and make plan accordingly.
Forecasting provide base for making planning and make plan for materials, personnel and other requirements.Forecasting is base on guess work and past & present conditions.Manager continuously monitor the environment before forecasting is done.Forecasting can be perform into two categories:-a) Quantitative b) Qualitative.
a) Quantitative forecasting- When the forecasting is perform on basis of past data &figures is called Quantitative forecasting.
b) Qualitative Forecasting- When the forecasting is perform on the basis of judgement and knowledge of people is called Qualitative Forecasting.
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| Forecasting.. |
2) Budgets-Budgets is also for planning.In budget we showing the expected expenses and expected incomes of future through we come to know how much we spend in various resources and and how much expected capital expenditure and how much expected income in future . Manager make planning according to the budget.
3) Break-Even Analysis-It is widely used technique in planning.Through Break-Even Analysis we come to know how much units to be sold to cover the costs.Break -Even point is that point in which we come to know where the total costs equals to the total revenue.
Break-Even Analysis helps in planning in such a way..
*Through BEP we make planning how much units should we sold to cover costs.
*BEP helps in fix the price of units.
4) Network technique PERT/CPM -PERT /CPM are also Network techniques which is useful in planning, decision making and controlling.PERT is Programming Evaluation and Review Technique and CPM is Critical Path Method.Through PERT technique every project is evaluated like what are the activities needed to complete the project.Its sequence of activities in project,how much cost and time associated in each activity and what are the expected obstacles in the project.Manager also monitor progress of the project.
VPM-Critical path method technique is used to Analysis the time of project .This technique helps in identify critical and non- critical tasks and avoid risks.
5) Queuing Theory-Queue - A line of people awaiting for their turn . Queuing theory is the mathematical study of queue .This technique provides badis of decision making about the resources needed to provide services.Queuing Theory helps in planning in this way👇
1)To find out the cost of offering the service.
2) To find out the cost incurred due to delay in offering the service
3)To allocate the resources.
6) Theory of Probability-Theory of probability also helps in planning and decision making.Through this techniques managers use statistics to know the probability of risk in future plan and according to that probability make pattern of future plan.
Read this article of Planning..
https://commerceclasses86.blogspot.com/2020/08/financial-planning.html
https://commerceclasses86.blogspot.com/2020/05/planning-process.html
https://commerceclasses86.blogspot.com/2020/05/business-planning.html
