DQ1 Week 2 Please respond to this discussion question by Thursday Day 3 What is forecasting What information is forecasted at your organization Which forecasting methods are used at your organization What information at your organization is not currently being forecasted that could be forecasted to increase productivity or decrease waste Forecasting is means of using historical data long with industry trends to determine what will occur in the future This is a very common means to determine what will happen in many industries forecasting is used to predict the organizations budgets One example of forecasting that I used at Federal Express and in the retail industry was to take my budgeted sales and then look at the actual sales growth for a particular locations The budget is forecasted on year of year growth however things may happen in a particular location that either increase or decrease the actual sales If your budget is set on 6 growth year over year however you are actually growing at 9 then you will need to re forecast your sales budget to ensure that you increase your purchases and labor usage to match the actual growth otherwise you will run out of products or not have enough employees scheduled to ensure proper customer service levels At Federal Express the productivity gate goal was set on Packages per FTE full time equivalent or 8 hours increments One way to improve productivity was to increase the number of stops delivered per hour This could be done by improving methods best practice procedures to increase the number of pieces delivered per stop or to reduce the miles per stop At Federal Express we as senior mangers forecasted all of these using a Functional Operating Plan which was a forecasted plan by day of how you planned to run your daily operations to achieve the set productivity and cost goals These plans were done monthly and submitted in advance
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