Forecasting is your first
line of defense in
optimizing
purchasing, shop floor
execution, and everything in
between to get the best
possible results and
customer service
at the lowest possible cost,
yet it is ignored,
underutilized,
misunderstood, and downright
hated at
many companies. Forecasting
and frustration seem to
have become synonymous "F"
words. We want as few
changes as possible to
stabilize execution and firm
plan
schedules, but the reality
is that we also need to keep
it
updated to keep pace with
ever-changing market and
customer expectations.
Some may even doubt the need
for a forecast with
execution techniques such as
Just-in-Time and lean
manufacturing. But the
reality is that someone,
somehow, somewhere in that
supply chain is making some
type of estimate of future
needs, and that IS a
forecast.
Whether it's a simple
reorder point (you are, in
fact, forecasting
that demand will remain
unchanged over the
lead time) or a buffer stock
(if you could build to order
100 percent on time ALL the
time, you wouldn't need it,
now would you?), to a
statistical forecast, the
reality is that the world
won't wait on you to have
the product available when
the marketplace is full of
competition.
This paper will give you
practical advice on the crucial
factors for success that
will improve profits and
customer service. You'll
learn fine points about
everything from selecting
and setting up the right
system
with the right data, to what
you need to know to
forecast well, what's
important about measurements
and variances, and how to
turn them into even greater
opportunities.
To Be Continued
For balance of this article, click on the below link:
Lean Manufacturing Articles and click on Series 15