Forecasting and capacity planning

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FORECASTING AND
CAPACITY
PLANNING
D e l i g h t P r o f e s s i o n a l S u m m i t s

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W E L C O M E T O
T H I S S E S S I O N !
O U R A G E N D A
Introduction
The Value of Capacity Planning
Strategic Importance of Forecasting
Business Continuity planning
Championing Change & Building Effective Teams
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O B J E C T I V E S
E X P E C TAT I O N S A N D R U L E S
Participants will gain an understanding of
how the value of capacity planning in
responding to forecasts to ensure the
integrity of business operation in times of
change.
1. Participate
2. Exercise respect at all times
3. Mute your audio unless called upon
4. Review what you write before sending
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I N T R O D U C T I O N
C A PA C I T Y P L A N N I N G
• Trending is the analysis of data with the intention of identifying discernable
patterns.
• Forecasting is the projection of those identified patterns on business growth
patterns to understand the impact on business processes.
• Capacity planning is the response to forecasts that ensures the integrity of
business processes.
• The level of capacity directly relates to the amount of output in the form of
goods and services organizations can produce to satisfy customer demand.
• capacity planning process basically boils down to three key areas:
a) Understanding normal organization production requirements.
b) Assessment of an organization’s capacity to ensure effective resource
utilization.
c) Effective capacity planning to ensure management can make quick
production decisions due to changes in demand.
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VA L U E O F C A PA C I T Y P L A N N I N G
MONITOR OPERATIONS COSTS
• Capacity Planning incorporates all
relevant aspects including personnel,
facilities, budgets, production schedules
and supplies which enables organizations
to carefully monitor all production costs.
• They can accurately budget for upcoming
changes, and apply financial resources
where needed.
• They can also develop cost effective
delivery schedules for supplies and
shipping schedules for completed
products.
ENSURE ADEQUATE AVAILABILITY
• Organizations can ensure they have
necessary resources to deliver work even
before a contract is signed.
• It guides organizations on the scope
available to undertake new projects along
with inputs on sufficient resources to
cater to the requirements.
• Using actionable analytics, organizations
get access to key data points which
accurately report the possibility of
shortages based on current work
schedules.
MAINTAIN PRODUCTION CYCLES
• Organizations can maintain proper
production levels as per expected business
cycles.
• Seasonal demand fluctuations can be
planned for using historical data and
production capacity can be easily
managed to handle the rise in demand.
• Capacity Planning identifies when the
business cycle might deteriorate so that
seasonal workers can be employed
accordingly and unnecessary expenses can
be avoided.
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VA L U E O F C A PA C I T Y P L A N N I N G C O N T I N U E D
IDENTIFY SKILL GAPS
• Adequate capacity planning can help
identify the relevant skills required to
deliver key projects and plan for any skill
shortages well in advance.
• Organizations can plan work accordingly
and forecast skill requirements and also
make decisions regarding in-house skills
vs outsourced skills.
• They can easily plan employee training
needs and decide how projects will get
delivered in the future.
PLAN NEW PRODUCTION FACILITIES
Using capacity planning information from its
existing locations, the organization can
develop a more accurate projection of needs
for facilities and personnel levels, and of the
kind of production that can be expected
from the new location.
MEET OPERATIONS BUDGET
• When organizations use appropriate
capacity planning tools, they are able to
meet demand with the least amount of
waste and increase their utilization rates.
• It also helps them meet their budgetary
requirements based on their projected
sales or demand forecast and reduce
additional expenses.
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S T R AT E G I C I M P O R TA N C E O F
F O R E C A S T I N G
• Strategic forecasting makes the company's operations sensitive to market
factors on a continuous basis.
• Good supplier relations and the ensuing advantages in product innovation,
cost, and speed to market depend on accurate forecasts.
• Inventory management: A business will buy the right amount of raw materials
to produce right amount of goods for consumers.
• Relevant and reliable information about the past and present events and the
likely future events is necessary for sound planning and gives confidence to the
managers for making important decisions.
• The organization is able to determine which strategic goals are realistic, and to
what extent it will achieve them.
• Supports decisions about future business and marketing strategy. The
organization can make predictions about the trend of future sales to create an
estimate of future demand.
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B U S I N E S S C O N T I N U I T Y
P L A N N I N G
• Business continuity planning (BCP) is the process involved in creating a
system of prevention and recovery from potential threats to a company.
• A business continuity plan (BCP) is a document that outlines how a business
will continue operating during an unplanned disruption in service.
• The plan ensures that personnel and assets are protected and are able to
function quickly in the event of a disaster.
• BCP involves defining any and all risks that can affect the company's
operations, making it an important part of the organization's risk management
strategy.
• Once the risks are identified, the plan should also include:
a) Determining how those risks will affect operations.
b) Implementing safeguards and procedures to mitigate the risks.
c) Testing procedures to ensure they work.
d) Reviewing the process to make sure that it is up to date.
• An important part of developing a BCP is a business continuity impact
analysis. BCPIA identifies the effects of disruption of business functions and
processes and uses the information to make decisions about recovery
priorities and strategies.
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K E Y E L E M E N T S
• Establish a Planning Committee
• Conduct a Business Impact Analysis: It is a process used to identify, quantify,
and qualify the impact of a loss, interruption, or disruption. A BIA identifies
mission-critical activities and the time frame within which they must be
recovered.
• Mitigate Risk: The organization should mitigate risks that threaten the health
and safety of employee, operations, custoomers, company assets, or the
environment by reducing the risk to an acceptable level.
• Establish Business Continuity Strategies
• Develop Your Plan: Record everything in the BIA process and develop a plan
for disasters and emergencies.
• Implement and Train: Conduct training for employees with key roles and
assignments in the business continuity, disaster recovery, and incident
response processes.
• Test the Plan: Testing is the generic term used to describe the critical process
of exercising strategies and plans, rehearsing with coworkers, and testing
systems to demonstrate business continuity.
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K E Y E L E M E N T S
• Establish a Planning Committee
• Conduct a Business Impact Analysis: It is a process used to identify, quantify,
and qualify the impact of a loss, interruption, or disruption. A BIA identifies
mission-critical activities and the time frame within which they must be
recovered.
• Mitigate Risk: The organization should mitigate risks that threaten the health
and safety of employee, operations, custoomers, company assets, or the
environment by reducing the risk to an acceptable level.
• Establish Business Continuity Strategies
• Develop Your Plan: Record everything in the BIA process and develop a plan
for disasters and emergencies.
• Implement and Train: Conduct training for employees with key roles and
assignments in the business continuity, disaster recovery, and incident
response processes.
• Test the Plan: Testing is the generic term used to describe the critical process
of exercising strategies and plans, rehearsing with coworkers, and testing
systems to demonstrate business continuity.
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B E N E F I T S
• Maintain business operations: Keeping business operations running through a
crisis, mitigates financial loss and send a message of stability staff and
customers.
• Build customer confidence: Customers want to know that you can respond to
anything, so they can keep expecting the service from your brand that they’re
accustomed to.
• Preserve brand and reputation: Brands that seem prepared and able to rise to
the occasion in times of disaster with strength, consistency, and grace will
prove their resiliency to their consumers.
• Protects the supply chain: A good plan sets out already-vetted options for
circumventing supply chain issues.
• Gain a competitive edge: The ability to get business moving again will go a
long way in showing consumers that your brand is among the best.
• Mitigate financial risk: The right plans to pick up quickly and restore
functionality where you need it most will minimize losses.
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C H A M P I O N I N G C H A N G E &
B U I L D I N G E F F E C T I V E
T E A M S
• Change is certain.
• Change brings stress and uncertainty with it.
• Within the workplace, some find it overwhelming while others embrace it and
be excited by it.
• People make judgements about the value of change and decide whether they
see it as a positive or negative thing.
• As a leader, you need to harness the motivation and positivity of individuals
who have taken a positive perception of the change and use it to try and help
bring along those who feel more negative.
• These individuals have the following characteristics:
a) Willing To Listen To New Ideas
b) They Are Good Networkers
c) Focus On Solutions
d) Have a Good Understanding Of The Organization
e) Not Afraid To Take Risks
f) Are able To Communicate The Positives Of The Change
g) Not Afraid To Ask For Help
h) They Are People Focussed
i) Not Afraid To Speak Up
j) They Are Values-Driven
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• One of the greatest responsibilities of a leader is to push the team towards
better performance.
• An effective team will definitely outperform a disconnected collective, where
people work individually.
• To build a great team, you need to:
a) Understand What a Great Team Is
• Clear objectives
• Clear roles
• Flawless communication
• Cooperation
• Individual development within the team
b) Establish Strong Leadership
• Big picture vision
• Delegate tasks and responsibilities
• Communicate clear goals
• Be honest and friendly to an acceptable extent
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c) Build the Connection Between the Team Members
• Team-building exercises
• Improve cooperation among team members
• Encourage them to collaborate
d) Establish a Connection with Each Team Member
• Get to know their professional talents
• Take interest in them as a person
• Build their trust in you
e) Invite Contributions and Collaborations
• Set the example
• Improve teamwork by encouraging trust and coperation
• Ask frequent feedback and reports
• Provide a transparent workplace environment
f) Invest in Team Building Events
• Fundraising projects, Social events, outdoor events, indoor activities
Monitor And Review
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Any QUESTIONS/ Comments?
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T H A N K Y O U F O R
A L O V E LY S E S S I O N .
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