development of forecasting accuracy and production planning system
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8/19/2019 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$Y:
This section details on how the project will be achieved. The team will take astructured approach breaking each objective into multiple task and working on one
task at a time.
• T"E PROJECT APPROAC" SUMMARY
The project team will consist of four members/
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$. 0aisam 1aza&. 2wn 3aqvi). 4aad 2hmed. Taha 4hoaib
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