Management Informations Systems
STUDY GUIDE
Forecasting-
Who needs Forecast?
Accounting, Finance, Operations, Human Resources, and Marketing
Elements of a good Forecast:
-Timely and allowing for the system to respond to the forecast. Sould cover a span of time that allows actions to be taken to meet the forecast.
-Should be accurate (no forecast id 100% accurate). Should be reliable and used so that actual sales will not depart radically from the forecast.
-Expressed in meaningful terms such as dollars, production planners, and manpower needs.
-Should be in writing and easy to understand, and cost effective.
Factors on Demand under the influence of management
Design and characteristics, quality, price, customer service
Factors not under Management Control
-Competitors’ moves in quality, design, price and service
-Business Cycle Measures of a Business Cycle-
Real Terms- GDP, New Home Construction, Interest Rates, Advertising expenditures, unemployment/employment
Psychological Terms- Consumer Confidence Index, Purchasing Managers Index, Stock Market, Unemployment
-Product Perception
-Demographics
-Government Regulation
Forecast are done by Marketing or Production
Marketing Forecast look forward- should be best forecast
Marketing forecast is a polling of opinion or a survey of sales people
Underestimate- plan to cut in at lower lever
Overestimate- become company hero/ get promoted
Marketing looks into the future, they know the market.
Forecast can be revisited by the forecaster. Can be bias. Forecaster may influence sales goals that can affect pay, sales goals and promotion.
Production Forecast looks Backward
The past is the prelude to the future. Past numbers determine future sales.
Advantage of production forecast: quick.
Disadvantage: No business factors.
Do a production forecast first because it is quick. Then talk to marketing to get their input.
Forecast are all not accurate.
System Output and Line Balancing
Person with the lowest output= system output
Forecasting-
Who needs Forecast?
Accounting, Finance, Operations, Human Resources, and Marketing
Elements of a good Forecast:
-Timely and allowing for the system to respond to the forecast. Sould cover a span of time that allows actions to be taken to meet the forecast.
-Should be accurate (no forecast id 100% accurate). Should be reliable and used so that actual sales will not depart radically from the forecast.
-Expressed in meaningful terms such as dollars, production planners, and manpower needs.
-Should be in writing and easy to understand, and cost effective.
Factors on Demand under the influence of management
Design and characteristics, quality, price, customer service
Factors not under Management Control
-Competitors’ moves in quality, design, price and service
-Business Cycle Measures of a Business Cycle-
Real Terms- GDP, New Home Construction, Interest Rates, Advertising expenditures, unemployment/employment
Psychological Terms- Consumer Confidence Index, Purchasing Managers Index, Stock Market, Unemployment
-Product Perception
-Demographics
-Government Regulation
Forecast are done by Marketing or Production
Marketing Forecast look forward- should be best forecast
Marketing forecast is a polling of opinion or a survey of sales people
Underestimate- plan to cut in at lower lever
Overestimate- become company hero/ get promoted
Marketing looks into the future, they know the market.
Forecast can be revisited by the forecaster. Can be bias. Forecaster may influence sales goals that can affect pay, sales goals and promotion.
Production Forecast looks Backward
The past is the prelude to the future. Past numbers determine future sales.
Advantage of production forecast: quick.
Disadvantage: No business factors.
Do a production forecast first because it is quick. Then talk to marketing to get their input.
Forecast are all not accurate.
System Output and Line Balancing
Person with the lowest output= system output