Top 3 Types of Production Forecasts in Lean Manufacturing.

In this article, you will learn the most relevant types of production forecasts in lean manufacturing and lean six sigma.

Production forecasting means to estimate the future demand of a particular product or services with the purpose to make the planning, scheduling, and coordination to provide it.

Most companies have a dedicated department and group of people responsible to estimates the resources (e.g. raw materials, machinery, human resources, operators, time, utilities, financial budget, etc.) that are required to produce those products and services.  Typically, this group of people includes buyers, planners, schedulers, inventory & warehouse personnel, etc.

The 3 Common Types of Production Forecasts:

1. Sales Forecasting

Sales forecasting is based on the prediction of future sales.

The accuracy of sales forecasting will directly affect the:

• The success of all subsequent forecasting.
• Inventory of raw materials, and
• Develop a production schedule.

Another factor to be considered in sales forecasting is the number of new clients you have or intend to attract or lose over a given time frame. 3 Types of Production Forecasts

Sales forecasting focuses on customer retention as in sales totals.

One or two new clients can drastically influence your potential sales future and therefore the forecast.  what is the manufacturing forecast

2. Component Procurement Forecasting

The component procurement forecasting could be performed once projected sales volumes are estimated.

The last purchasing must be avoided since is expensive and affect adversely the profit margins. 3 Types of Production Forecasts

Purchasing of materials and components based on informed sales projections can help to:

• Reduce purchasing waste,
• Buy at the volume necessary, and
• Allow more experimentally-based component purchases for new product designs. 3 Types of Production Forecasts

The component procurement forecasting reduces waste since consider and pay attention to supply purchases that will be needed — rather than stack up inventory in the warehouses. 3 Types of Production Forecasts

Understanding the volume of components necessary brings the advantage of purchasing in greater units — and at greater discounts.

3. Production Schedule Forecasting

Production Schedule Forecasting is recommended for situations including seasonal trends, changes in technology, or in popular styles.  This forecast future sales to improve lead time efficiency. This type of forecasting considers the creation of a production plan before receiving customer orders to keep production lines unclogged during peak order times. 3 Types of Production Forecasts

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REFERENCES: Types of Production Forecasts.

httpss://en.wikipedia.org/wiki/Lean_Six_Sigma

httpss://www.greycampus.com/blog/quality-management/a-brief-introduction-to-lean-and-six-sigma-and-lean-six-sigma

httpss://www.verenia.com/cpq-configure-price-quote-blog/manufacturing-forecast-types