Production planning and control (PPC) involves forecasting production needs and allocating resources to efficiently produce the required products on time and at lowest cost. PPC has three phases - planning, action, and control. The planning phase determines material, labor, and machine requirements through techniques like forecasting and scheduling. The action phase implements the plan through activities like dispatching work orders. The control phase monitors progress against the plan and initiates corrective actions if needed. Effective PPC coordinates all production inputs and outputs to optimize efficiency and quality across the entire manufacturing process.
Production Planning and Control
Objective of PPC
Classification/Functions of PPC
Levels of PPC
Factors determining Production Planning Procedures
Production Planning System
Factors Determining PC procedures
Demand Forecasting: Forecasting as planning tool, Forecasting Time Horizon, Sources of Data for Forecasting, Accuracy of Forecast, Capacity Planning. Production Planning: Aggregate production Planning, Alternatives for Managing Demand & Supply, Mater Production Schedule, capacity Planning, Overview of MRP, CRP, DRP & MRP-II Production Control: Scheduling & Loading, Scheduling of Job Shops & Floor
Shops, Gantt Chart.
Production Planning and Control
Objective of PPC
Classification/Functions of PPC
Levels of PPC
Factors determining Production Planning Procedures
Production Planning System
Factors Determining PC procedures
Demand Forecasting: Forecasting as planning tool, Forecasting Time Horizon, Sources of Data for Forecasting, Accuracy of Forecast, Capacity Planning. Production Planning: Aggregate production Planning, Alternatives for Managing Demand & Supply, Mater Production Schedule, capacity Planning, Overview of MRP, CRP, DRP & MRP-II Production Control: Scheduling & Loading, Scheduling of Job Shops & Floor
Shops, Gantt Chart.
The Master Production Schedule (MPS) is a plan for the production of individual final items. The MPS breaks down the production plan to show, in each period, the quantity to produce of each final article.
#masterproduction #mps #mrp #erp #manufacturing #manufacturingsoftware #erpsoftware #mrpeasy
Production and Operation Management (Capacity Planning )Dr. Mohit Sahu
Introduction to Capacity Planning,
Measurement Of Capacity, Measures Of Capacity, Capacity Planning, Estimating Future Capacity Needs, Factors Influencing Effective Capacity, Factors Favouring Over Capacity And Under Capacity
Forward scheduling vs. backward scheduling in production planningMRPeasy
Forward scheduling and backward scheduling are key concepts in production planning. What are the differences between the two approaches and which one should you choose for your manufacturing business?
Production Planning and Control
Objective of PPC
There are three stages in PPC
Classification/Functions of PPC
Benefits of PPC
Limitations of PPC
Production Planning / Operations Planning
Factors determining Production Planning Procedures
Production Planning System
Production Control
Factors Determining PC procedures
Main Functions of Production Planning
& Control Department
Plant Planning & Facility Planning
The Master Production Schedule (MPS) is a plan for the production of individual final items. The MPS breaks down the production plan to show, in each period, the quantity to produce of each final article.
#masterproduction #mps #mrp #erp #manufacturing #manufacturingsoftware #erpsoftware #mrpeasy
Production and Operation Management (Capacity Planning )Dr. Mohit Sahu
Introduction to Capacity Planning,
Measurement Of Capacity, Measures Of Capacity, Capacity Planning, Estimating Future Capacity Needs, Factors Influencing Effective Capacity, Factors Favouring Over Capacity And Under Capacity
Forward scheduling vs. backward scheduling in production planningMRPeasy
Forward scheduling and backward scheduling are key concepts in production planning. What are the differences between the two approaches and which one should you choose for your manufacturing business?
Production Planning and Control
Objective of PPC
There are three stages in PPC
Classification/Functions of PPC
Benefits of PPC
Limitations of PPC
Production Planning / Operations Planning
Factors determining Production Planning Procedures
Production Planning System
Production Control
Factors Determining PC procedures
Main Functions of Production Planning
& Control Department
Plant Planning & Facility Planning
Production Planning and Control (Operations Management)Manu Alias
A presentation on operations management. The contents are, Production management and control - Meaning, Definition, functions, Objectives, Stages, Importance and limitations; Master Production Schedule (MPS) - Meaning, Objectives and fuctions.
Production and planning control refers to the management of resources and processes to ensure efficient and effective production of goods or services. It involves coordinating all aspects of production, from scheduling and inventory management to quality control and shipment of finished products.
The main objective of production and planning control is to maximize productivity while minimizing waste, cost, and delays. Effective production planning requires a deep understanding of customer demand, available resources, production capacity, and lead times.
The production planning process typically involves the following steps:
Forecasting demand: This involves analyzing historical data, market trends, and other relevant factors to predict future demand for the product or service.
Creating a production plan: Based on the forecasted demand, the production plan outlines the necessary resources, schedules, and processes needed to meet that demand.
Scheduling production: This involves creating a detailed schedule for each step in the production process, including procurement of raw materials, assembly, and shipping.
Managing inventory: Effective inventory management is essential to ensure that materials and finished goods are available when needed and to avoid overstocking or stockouts.
Quality control: This involves monitoring the production process and finished products to ensure they meet quality standards and customer expectations.
Shipping and delivery: Once the products are completed, they are shipped and delivered to customers.
Effective production and planning control can improve efficiency, reduce costs, and increase customer satisfaction. It requires close collaboration between different departments, including production, procurement, logistics, and quality control, to ensure that all aspects of the production process are well-coordinated and optimized.
Role of production planning and control in operation managementRiya Sunny
Planning and Control are very important for success of an operation unit. For effective operation in a manufacturing unit, it is essential to integrate the production ...
Production Planning and Control, Objective of production planning and control, Function of PPC, Types of the Production Systems, Process Planning, Sales Forecasting, Sequencing, Loading, and Scheduling, Line of Balance, Progress control, Economic Order Quantity (EQC), Goods Service Tax (GST)
Production planning, routing, scheduling, Activating, MonitoringDarshan Shah
First Plan Your Work and then Work on Your Plan.
1. Planning is deciding in advance what to do, how to do it, when to do it and who is to do it.
Planning bridges the gap from where we are, to where we want to go. It makes it possible for things to occur which would not otherwise happen.
2. Routing may be defined as the selection of path which each part of the product will follow, which being transformed from raw material to finished products.
Routing determines the most advantageous path to be followed from department to department and machine to machine till raw material gets its final shape.
3. Scheduling determines the program for the operations. Scheduling may be defined as ‘the fixation of time and date for each operation’ as well as it determines the sequence of operations to be followed.
4. Activating is concerned with the starting the processes. Activating is ‘release of orders and instruction for the starting of production for any item in acceptance with the route sheet and schedule charts’.
5. Monitoring is related to report daily the progress of work in each shop in a prescribed proforma and to investigate the causes of deviations from the planned performance.
Multi-source connectivity as the driver of solar wind variability in the heli...Sérgio Sacani
The ambient solar wind that flls the heliosphere originates from multiple
sources in the solar corona and is highly structured. It is often described
as high-speed, relatively homogeneous, plasma streams from coronal
holes and slow-speed, highly variable, streams whose source regions are
under debate. A key goal of ESA/NASA’s Solar Orbiter mission is to identify
solar wind sources and understand what drives the complexity seen in the
heliosphere. By combining magnetic feld modelling and spectroscopic
techniques with high-resolution observations and measurements, we show
that the solar wind variability detected in situ by Solar Orbiter in March
2022 is driven by spatio-temporal changes in the magnetic connectivity to
multiple sources in the solar atmosphere. The magnetic feld footpoints
connected to the spacecraft moved from the boundaries of a coronal hole
to one active region (12961) and then across to another region (12957). This
is refected in the in situ measurements, which show the transition from fast
to highly Alfvénic then to slow solar wind that is disrupted by the arrival of
a coronal mass ejection. Our results describe solar wind variability at 0.5 au
but are applicable to near-Earth observatories.
(May 29th, 2024) Advancements in Intravital Microscopy- Insights for Preclini...Scintica Instrumentation
Intravital microscopy (IVM) is a powerful tool utilized to study cellular behavior over time and space in vivo. Much of our understanding of cell biology has been accomplished using various in vitro and ex vivo methods; however, these studies do not necessarily reflect the natural dynamics of biological processes. Unlike traditional cell culture or fixed tissue imaging, IVM allows for the ultra-fast high-resolution imaging of cellular processes over time and space and were studied in its natural environment. Real-time visualization of biological processes in the context of an intact organism helps maintain physiological relevance and provide insights into the progression of disease, response to treatments or developmental processes.
In this webinar we give an overview of advanced applications of the IVM system in preclinical research. IVIM technology is a provider of all-in-one intravital microscopy systems and solutions optimized for in vivo imaging of live animal models at sub-micron resolution. The system’s unique features and user-friendly software enables researchers to probe fast dynamic biological processes such as immune cell tracking, cell-cell interaction as well as vascularization and tumor metastasis with exceptional detail. This webinar will also give an overview of IVM being utilized in drug development, offering a view into the intricate interaction between drugs/nanoparticles and tissues in vivo and allows for the evaluation of therapeutic intervention in a variety of tissues and organs. This interdisciplinary collaboration continues to drive the advancements of novel therapeutic strategies.
THE IMPORTANCE OF MARTIAN ATMOSPHERE SAMPLE RETURN.Sérgio Sacani
The return of a sample of near-surface atmosphere from Mars would facilitate answers to several first-order science questions surrounding the formation and evolution of the planet. One of the important aspects of terrestrial planet formation in general is the role that primary atmospheres played in influencing the chemistry and structure of the planets and their antecedents. Studies of the martian atmosphere can be used to investigate the role of a primary atmosphere in its history. Atmosphere samples would also inform our understanding of the near-surface chemistry of the planet, and ultimately the prospects for life. High-precision isotopic analyses of constituent gases are needed to address these questions, requiring that the analyses are made on returned samples rather than in situ.
Comparing Evolved Extractive Text Summary Scores of Bidirectional Encoder Rep...University of Maribor
Slides from:
11th International Conference on Electrical, Electronics and Computer Engineering (IcETRAN), Niš, 3-6 June 2024
Track: Artificial Intelligence
https://www.etran.rs/2024/en/home-english/
A brief information about the SCOP protein database used in bioinformatics.
The Structural Classification of Proteins (SCOP) database is a comprehensive and authoritative resource for the structural and evolutionary relationships of proteins. It provides a detailed and curated classification of protein structures, grouping them into families, superfamilies, and folds based on their structural and sequence similarities.
Introduction:
RNA interference (RNAi) or Post-Transcriptional Gene Silencing (PTGS) is an important biological process for modulating eukaryotic gene expression.
It is highly conserved process of posttranscriptional gene silencing by which double stranded RNA (dsRNA) causes sequence-specific degradation of mRNA sequences.
dsRNA-induced gene silencing (RNAi) is reported in a wide range of eukaryotes ranging from worms, insects, mammals and plants.
This process mediates resistance to both endogenous parasitic and exogenous pathogenic nucleic acids, and regulates the expression of protein-coding genes.
What are small ncRNAs?
micro RNA (miRNA)
short interfering RNA (siRNA)
Properties of small non-coding RNA:
Involved in silencing mRNA transcripts.
Called “small” because they are usually only about 21-24 nucleotides long.
Synthesized by first cutting up longer precursor sequences (like the 61nt one that Lee discovered).
Silence an mRNA by base pairing with some sequence on the mRNA.
Discovery of siRNA?
The first small RNA:
In 1993 Rosalind Lee (Victor Ambros lab) was studying a non- coding gene in C. elegans, lin-4, that was involved in silencing of another gene, lin-14, at the appropriate time in the
development of the worm C. elegans.
Two small transcripts of lin-4 (22nt and 61nt) were found to be complementary to a sequence in the 3' UTR of lin-14.
Because lin-4 encoded no protein, she deduced that it must be these transcripts that are causing the silencing by RNA-RNA interactions.
Types of RNAi ( non coding RNA)
MiRNA
Length (23-25 nt)
Trans acting
Binds with target MRNA in mismatch
Translation inhibition
Si RNA
Length 21 nt.
Cis acting
Bind with target Mrna in perfect complementary sequence
Piwi-RNA
Length ; 25 to 36 nt.
Expressed in Germ Cells
Regulates trnasposomes activity
MECHANISM OF RNAI:
First the double-stranded RNA teams up with a protein complex named Dicer, which cuts the long RNA into short pieces.
Then another protein complex called RISC (RNA-induced silencing complex) discards one of the two RNA strands.
The RISC-docked, single-stranded RNA then pairs with the homologous mRNA and destroys it.
THE RISC COMPLEX:
RISC is large(>500kD) RNA multi- protein Binding complex which triggers MRNA degradation in response to MRNA
Unwinding of double stranded Si RNA by ATP independent Helicase
Active component of RISC is Ago proteins( ENDONUCLEASE) which cleave target MRNA.
DICER: endonuclease (RNase Family III)
Argonaute: Central Component of the RNA-Induced Silencing Complex (RISC)
One strand of the dsRNA produced by Dicer is retained in the RISC complex in association with Argonaute
ARGONAUTE PROTEIN :
1.PAZ(PIWI/Argonaute/ Zwille)- Recognition of target MRNA
2.PIWI (p-element induced wimpy Testis)- breaks Phosphodiester bond of mRNA.)RNAse H activity.
MiRNA:
The Double-stranded RNAs are naturally produced in eukaryotic cells during development, and they have a key role in regulating gene expression .
What is greenhouse gasses and how many gasses are there to affect the Earth.moosaasad1975
What are greenhouse gasses how they affect the earth and its environment what is the future of the environment and earth how the weather and the climate effects.
Professional air quality monitoring systems provide immediate, on-site data for analysis, compliance, and decision-making.
Monitor common gases, weather parameters, particulates.
This pdf is about the Schizophrenia.
For more details visit on YouTube; @SELF-EXPLANATORY;
https://www.youtube.com/channel/UCAiarMZDNhe1A3Rnpr_WkzA/videos
Thanks...!
2. Productionplanning& control [ ppc ]
(Meaning)
▪ Productionplanning is the function of looking ahead, forecast
difficulties to be faced and the likely remedial steps to remove them.It
is the techniqueof forecastingahead every step in the long process of
production, taking them at the right time and in the right degree and
trying to complete the operations at maximum efficiency.
▪ Productioncontrol, guides and directs flow of productionso that
products are manufacturedin a best way and confirm to a planned
scheduleand are of the right quality.
3. Definition
▪ “PPC is the process of planning or decidingon the resources the
firm will requirefor its futuremanufacturingoperations and of
allocating and time schedulingthese resources to producethe
desiredproducts on time at the least total cost”
4. Characteristics
▪ Various factors of productionare integrated to use them
efficiently and economically.
▪ The manufacturingprocess is organized in such a way that none
of the work centre is either overworked or under worked. The
divisionof work is undertaken very carefully so that every
available element is properly utilized.
▪ All types of inputs like materials, men, machines are efficiently
used for maintainingefficiency of the manufacturingprocess.
▪ The work is regulated from the firststage of procuringraw
materials to the stage of finishedgoods.
5. Objectives
The following points will bring out the objectives of production
planning and productioncontrol.
oProductionplanning
1. Making economical use of various input.
2. To determinethe requirements for men, materials and machines.
3. Productionof various inputs at a righttime and in right quantity
and of right quality.
4. Arrangingproductionschedules according to the needs of
marketing department.
5. Providingfor adequate stocks & Keeping up-to-dateinformation
processes.
6. oProductioncontrol
1. Making efforts to adhere to the productionschedules.
2. Issuingnecessary instructionsto the staff for making the plans
effective.
3. To ensurethat goods produced accordingto the prescribed
standardand quality.
4. To ensurethat work progresses accordingto the predefined
plans.
7. StagesOf PPC
Productionplanning and control has three phases namely as
follows:
1. Planning Phase
2. ActionPhase
3. ControlPhase
▪ PlanningPhase
▪ Planning is an exercise of intelligentforecastingin order to
establish how an objective can be achieved.
Prior planning
Planning phase
Active planning
8. o Priorplanning[ Pre-production planning ]
Modules of prior-planning:
1. Product development and design : process of developing a new
product with all the features, which are essentialfor effective
use in the field.
2. Forecasting : It is the demand which willhappen in the future.
It gives sales forecast, the factory capacity, the aggregate
inventory levels and sizeof the work force required.
3. Aggregate planning : To find product wiseplanning.
4. Material requirement planning : It is a techniquefor
determiningthe quantity and timing for the dependent items
needed to satisfy the master productionschedule.
9. oActiveplanning
Modules of Active planning :
1. Processplanning & routing : It is complete determination of
process steps and their sequenceto produce products at the
desiredquality, quantity and cost. Routingin particular
prescribes the flow of work in the plant & temporary location
of raw material and component and material handling system.
2. Material planning : Determines the requirements of various
raw materials/subassembliesby consideringcost component.
3. Tool’s planning : Determines the requirements of various tools
by taking process specification, Materialspecification&
Equipmentspecification.
4. Loading : It is the process of assigning jobs to several
machines such that there is a load balance among the
machines.
5. Scheduling : It is the time phase of loading and determines
when and in what sequencethe work will be carried out. This
fixes the starting as well as the finishingtimefor each job.
10. •Scheduling
Types of schedule’s :
1. Master Scheduling – It is the breakupof production
requirements. Itis the start of scheduling. It is prepared by
keeping in view the order or likely sales order in near future.
2. Manufacturing Scheduling – It is used whereproduction
process is continuous. The order of preferencefor manufacture
is also mentioned in the schedulefor a systematic production
planning.
3. Detail Operation Scheduling – It indicates the time required
to perform each and every detailed operations of a given
process.
11. ▪ Actionphase
▪ Dispatching :
• It is the transitionfrom planningphase to active phase. In this
phase, the worker is ordered to start manufacturingthe product.
• The tasks which are includedin dispatchingare job order, store
issueorder, tool order, time ticket, inspectionorder, move order
etc.
Ex, Job order is the key item which is to be mentioned in all other
reports/orders.
Stores issue order gives instructionto stores to issue material for
manufacturingof product.
Tool Order instructthe tool room to issuenecessary tools.
Time ticket is nothing but a card which is designed to note down
the actual time taken at various processes.
12. ▪ Controlphase
Modules for control phase :
1. Progress reporting : It collects data regardingwhat is
happeningwith the job. Also, it helps to compare with the
present level of performance.
2. Correctiveaction : Due to unforeseenreasons such as, machine
breakdown, rejectiondue to poor material quality, itmay not
possibleto scheduleas per plan. Under such condition, it is
better to reschedulethe whole product mix so that we get a
clear picture
13. Functions/ScopeOf PPC
▪ Material : Material must be available with ( Right
quntity,quality,price )
▪ Manpower : Important to maintaineoperational & managerial
staff having requisiteskills.
▪ Method : Mustposses alternative to choose best.
▪ Machines & equipment : Imp for manufacturingprocess.
▪ Routing : Specifies what work is to be done where& whenit is to
be performed.
14. Cont,..
▪ Estimating: Establishingperformancestandardof each work.
▪ Loading & scheduling: It is made as per productionrequirement.
▪ Dispatching: It is the release of orders & instructions to start
productionas per route sheet & schedule charts.
▪ Expediting: Follow-up after dispatching.
▪ Inspection: For maintainingquality in productionand process.
▪ Evaluating : It provides feedbackon process.
▪ Cost control : Costs can be kept withincontrol through wastage
reduction, value analysis, inventory control & efficientuse of
resources.
15. FACTORSAFFECTINGPPC
1. Market forecast: Future trends and demands for manufactured
product.
2. Sales order : Variation or changes in sales order will drastically
affect productionplanning and control.
3. Standard process sheets : It includes all process regardingdata
like machines used, time requiredfor that process. If machine
get’s damaged so for that this standard process sheet gets
disturb.
4. Load charts : Prepared for each workstationor machine in the
plant.
5. Project planning method : In manufacturingproductquantity
and there total processingtimecan be measured. Bestknown
methods for this are CriticalPath Method (CPM) and Program
Evaluation and Review Technique(PERT).
16. Productionplanningsystem
A good planningsystemmust answer four questions of priority
and capacity: What are we going to make? What does it take to
make it? What do we have? What do we need?
1. Priority : It is establishedby marketplace, relates to what
products are needed, how many are needed, and when they are
needed.
2. Capacity : It is the capability of manufacturingto produce
goods and services.
17. MakingThe ProductionPlan
• Based on market plan, the production plan sets the limits or levels of
manufacturing activity for some time in the future.
• For planning purposes, a small number of product groups based on
similarity of manufacturing processes is what is needed. Here
manufacturing is more concerned with demand of specific kinds of
capacity.
• Capacity is the ability to produce goods and services, i.e having the
resources available to satisfy the demands.
• Three to four basic strategies in developing production plan :
Demand matching
Production levelling
Subcontracting
Hybrid strategy
• The objective in developing a production plan is to minimize the costs of
carrying inventory,changing production levels, and stocking out( Not
supplying what needed, when it is needed).
18. • Make-to-stock production plan : When demand is constant & predictable
with few product option, Delivery times shorter and product having long
shelf life.
• Level production plan : It is the forecast to calculate total production
required (Total Production = totalforecast + back orders + ending
inventory – opening inventory).
• Make-to-order production plan : Wait until an order is received from a
customer before starting to make the goods.
• Assemble to order : Where several product options exist and where the
customer is not willing to wait until the product is made, so components
are stocked and by the time of delivering it is assembled.
• Resource planning : Preliminary production plan is compaired with
resources available in the company, if the capacity not meets the plan
then that plan must be changed.
• Resource bill shows quantity of critical resources( Material, labour &
operation )
19. Processplanning
▪ The process plan is basically a plan of how your parts will be
produced, what machines to use and in what order, to achieve the
correct tolerances etc. It involves strategic decisions and careful
analysis with productionengineers and expertisein order to plan
and adapt the production of every singlecomponent that you
wish to buildyourself. Process planning is often seen as the
interfacebetween designand manufacturingstages.
20. ManufacturingOf PPC System
The five major level in manufacturing planning & control system are :
▪ Strategic business plan : It is based on long-range forecasts and provides a
frameworkthat sets the goals and objectives for further planning by marketing,
finance, engineering and production/operations.
▪ Production plan : Concerned with quantities of each product group produced in
each period, inventary level,theresources of equipments, labour & materialneeded
in each period and available resources.The planning horizonis usually 6 to 18
months, but reviewedeach month.
▪ Master production schedule ( MPS ): is a plan for the production of individual
end items.
▪ Material requirement plan (MRP) : is a plan for the production and purchase of
the components and/or services used in making the items in the MPS.
▪ Purchasing & production activity control(PAC) : Purchasing is responsible for
establishing and controlling the flow of raw materialsinto the factory. PAC is
responsible for planning and controllingthe flow of work through the factory.
21. Role of ppc in manufacturingindustry
Basic roles of PPC is as follows :
1. Taking orders from marketing division.
2. Analyzing the orders & feeling the requirements of customer.
3. Planning for production.
4. Cost analysis & lead time.
22. Sales Forecasting
What is sales forecasting ?
• A sales forecast is a projectionof the expected customer demand for
products or services at a specific company, for a specific time horizon,
and with certainunderlying assumptions.
• Essential tool used for business planning, marketing, and general
management decisionmaking.
• It helps to achievebusiness goals, improve efficiancy, increase customer
retention& reduce’s cost.
Definition :
• “An estimate of sales in physical units (or monetary value) for a
specified future period under proposed marketing plan or program and
under the assumed set of economicand other forces outside the
organizationfor which the forecast is made” by American marketting
association.
23. Factor’saffectingsalesforecasting
External Factor’s Internal Factor’s
Relativestate of economy Labour problem
Direct & indirect competition Inventory shortage
Styles of fashion Working capital shortage
Consumer earnings Price change
Population changes Change in distribution method
Weather Productioncapability shortage
New product lines
24. Salesforecastingmethods
• Executive opinion method: Most widely used.Method of combining and
averagingviews of severalexecutivesregarding a specific decisionor forecast. Leads
to a quicker (and often more reliable)result without use of elaboratedata
manipulation and statistical techniques
• Delphi method : It includes a coordinator getting forecasts separatelyfrom experts,
summarizing the forecasts giving the summary report to experts who are asked to
make another prediction( Estimation future event through subjective consideration) ;
the process is repeated till some consensus is. Reached.
• Time series analysis : Make forecasts based purely on historical patterns in the
data. It has four components,…
1. Trend(T)
2.Cyclicalfluctuation( C) : Affected by swings in general economicactivity.
3.Seasonalvariation(S) : Distinguished pattern of sales caused by
weather,holidays, local cutoms & generalconsumer behaviour.
4.Irregular variation(R)
Most commonly used expressionfor a time series forecast is:
Y=TCSR
Where, Y= Forecasted value ,T= Secular trend ,C= Cyclicvariations
,S= Seasonal variations ,R= Irregular fluctuations.
25. • Market test method : One time forecast particularlyfor new products. A market
test provides data about consumers actual purchases and responsiveness to the
various elements of the marketing mix. On the basis of the response receivedto a
sample market test, product sales forecast is prepared.
• Sales force composite method(Grassrootapproach): Individual salespersons
forecast sales for their territories. Individual forecasts are combined & modified by
the sales manager to form the company sales forecast.
• Regressionanalysis : Identifies a statistical relationship betweensales(dependent
variable) and one or more influencing factors, which are termed the independent
variables. When just one independent variable is considered (eg. population
growth), it is called a linear regression, and the results can be shown as a line graph
predicting future values of sales based on changes in the independent variable.
When more than one independent variable is considered, it is called a multiple
regression.
• Survey of Buyer’s intention: Process includes asking customers about their
intentions to buy the company’s product and services.
26. Benefitsof salesforecasting
• Better control of Inventory
• Staffing
• Customer Information
• Use for Sales People
• Obtaining Financing
LIMITATION’S OF SALES FORECASTING
• Part hard fact, part guesswork
• Forecast may be wrong
• Times may change