In this article, you will learn what is the manufacturing forecast and how to create different types of forecastings for Process Excellence.
A forecast is a prediction. Maybe it is based on some kind of market analysis, maybe even asking the dealers what they think they will sell. It could be based on a lot of things, as historical data of previous sales volumes for the same or comparable seasons or period of times.
All companies use forecasts to handle the amount of inventory and supplies needed to meet demands.
The use of forecasting assumes that past trends will continue with little variance into the future.
In some industries, production trends may vary by season. For example, school supplies manufacturers, Christmas products suppliers, summer and pool suppliers, etc. what is the manufacturing forecast
The Top 3 Types of Manufacturing Forecasts
1. Sales Forecasting
Sales forecasting is based on the prediction of future sales.
The accuracy of sales forecasting will directly affect the:
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. what is the manufacturing forecast
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. what is the manufacturing forecast
Purchasing of materials and components based on informed sales projections can help to:
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. what is the manufacturing forecast
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. what is the manufacturing forecast
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