development of forecasting accuracy and production planning system

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Project Details

SUMMARY:

 This function of this project is to develop a system to ascertain forecast accuracy

using past data and accordingly plan production in order to make optimize use of company resources. This project will contain aspects of dierent elements of 

planning, including inventory management, forecasting accuracy, workforce

planning, material requirement planning and production planning. The project will

be performed on a programmable language by creating a database for forecast and

all related data.

Project duration is estimated around to ! months and will require regular plant

visits in order to completely understand the company"s business model

PROJECT OBJECTIVES:

 The objective of this project is to combine all aforementioned elements of planning

as well as calculating multiple performance indicators including lead time, line

e#ciency and standard time

Objectiv

e No

Objective Descritio!

$ %etermination of forecast accuracy& 'ndicate e(treme values in current forecast using past data

) *lassi+cation of vendors and raw material based on lead time and

material e(piry determination of standard time, production rate, downtime and worker

e#ciency- %eveloping a system for tracking inventory

%eveloping a system for calculating required raw material and work

force %evising a production plan using aforementioned objectives

PROJECT MET"ODO#O$Y:

 This section details on how the project will be achieved. The team will take astructured approach breaking each objective into multiple task and working on one

task at a time.

• T"E PROJECT APPROAC" SUMMARY 

 The project team will consist of four members/

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 The team will be structured in such a way to allow one member to solely work on

system development on computer and one member will be dedicated for

documentation while the other two members will conduct regular plant visits. 2t the

end of each month a meeting will be conducted with the company to update on

regular progress.

%OR& BREA&DO%N:

 The following are the task in which the project is broken down and will be

approached in the same order

$. *alculating forecast accuracy

&. *reating database to store all data). *lassi+cation of vendors and materials. %etermination of line e#ciency and production rate-. %etermination of lead time. %eveloping bill of material for each product. %eveloping inventory management system!. %evising a production plan

• PROJECT DE#IVERAB#ES

Deliverable

sDeliverables Descritio!

$ 2nalysis of trend of forecasting and its error& 'nventory management system

) %etermination of dierent performance indicators and suggestions for

improvement 4ystem for determining work force planning and material requirement

- 2 comprehensive production plan for each week

RIS&S:

 The following are the risk associated with the project

Ris' Descritio!5navailability of 

data

't will cause di#culty in determining accurate trend of forecast

no creation of

database

't will be di#cult to link and store data if no database is

present6ack of inventory 7ard to keep track of raw material inventory and will cause

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management

system

problem in estimating raw material ordering dates and

quantities

Project be!e(ts:

 This section describes the bene+ts this project will provide to the company

Be!e(ts Descritio!1educed

manpower

8ith proper workforce plan there will be reduction in workers

required6ess dead stock 8ith proper inventory system there will less chance of material

e(piry6ess capital in

inventory

9y calculating lead time of vendors, delivery dates will become

easy to calculate thus reducing capital investment in inventory:ective supply

chain

8ith the coordination of all departments supply chain will

become more eective1eduction in

forecast error

9y eectively calculating forecast error a production plan will be

devised accordingly thus not wasting company resources