Demand management


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This presentation is about Demand management in Industry
Topics like customer relationship and a case study on gaming industry is covered.

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Demand management

  2. 2. What do we mean by demand?  Demand is the total number of requests for a resource.  Demand management is all about making choices. Request: an act of asking politely or formally for something
  3. 3. Demand Management  The demand management process captures all work proposals in one place, guides the proposals through a multistage governance process, helps customers make decisions about which proposals to approve, and tracks progress on project execution until the work is completed. Approve: officially agree to or accept as satisfactory Proposal: a plan or suggestion, especially a formal or written one, put forward for consideration by others
  4. 4. Demand management is  The process of ensuring that market demand and the company’s capabilities are in synchronization  Recognizing all demands for products and services to support the marketplace.  Doing what is required to help make the demand happen  Prioritizing demand when supply is lacking.  Planning and using resources for profitable business results
  5. 5. The manufacturing planning and control (MPC) system is concerned with planning and controlling all aspects of manufacturing, including managing materials, scheduling machines and people, and coordinating suppliers and key customers MANUFACTURING PLANNING AND CONTROL(MPC)
  6. 6. Responsibility of the MPC  Providing the means for making as good a set of executable plans as possible and then Providing the information to execute them. And when conditions change  The control function should change the plans and  The new plans should be executed faithfully.
  7. 7. Customer Order Decoupling Point  Can be looked at as the point at which demand changes from independent to dependent. It is the point at which the firm, as opposed to the customer, becomes responsible for determining the timing and quantity of material to be purchased, made, or finished. The different locations of customer order decoupling give rise to different categories of manufacturing environments:  Engineered to order  Made to order  Assemble to order  Made to stock
  8. 8. Finished Goods Components/Subassemblies Raw Materials Suppliers LeadTime Short Long Decoupling Points Lead Time Make-to-Stock (MTS) Assemble to Order (ATO) Make to Order (MTO) Engineer to Order
  9. 9. Demand Uncertainty… how is it dealt with?  MTS – Safety stocks of end items.  ATO – Forecast product mix and calculate expected components and sub-assemblies. Safety stock carried in these items.  MTO – Uncertainty involves the level of company resources that will be required to complete the engineering and produce the product once the requirements are determined. May carry some raw materials.
  10. 10. Engineer To Order Swiss Watches: Furniture:
  11. 11. Make to Order: Cake Cakes Suits
  12. 12. Make to stock:Vadapav He earns more than an engineer!
  13. 13. Assemble to order Assembled PC Assembled Car
  14. 14. Information Used In The Implementation of Demand Management The choice of method is influenced by the data collection strategy, the type of variable, the accuracy required, the collection point and the skill of the enumerator.The main data collection methods are: · Registration: The client is registered and the information is collected. eg Dominos. · Questionnaires: forms which are completed and returned by respondents. eg.Kesari tours
  15. 15. · Interviews: forms which are completed through an interview with the respondent. They are better for more complex questions, low literacy or less co- operation. · Direct observations: making direct measurements is the most accurate method for many problems, but is often expensive. Eg: Entry of giant MNCs in Indian Food market due to lack of Indian leadership in food joints we get to see MacD,Subways…etc everywhere They observed the opportunity and hence they are winning!.
  16. 16. WHY FORECAST AND PLANS ARE IMPORTANT  Typical demand management phases are create, select, plan, and manage.  Demand management is a concept that integrates project proposals, portfolio analysis, and project management through workflows.
  17. 17. Following figure shows the four phases of demand management and how they fit together.
  18. 18. WHY FORECAST AND PLANS ARE IMPORTANT  The goal of demand management is to enable customers to propose, view, categorize, prioritize, select, and track projects within their organization.  Demand Management is based on a forecast and planning because a manufacturing manager cannot be held responsible for not getting a forecast right.  Manufacturing manager can and should be held responsible for making their plans. “Because One cant predict future but can at least plan for the future!”
  19. 19. Customer Relationship Management: || ||  Customer Relationship Management entails all aspects of interaction that a company has with its customer, whether it is sales or service-related. Customer Management in Hotel
  20. 20. CRM  CRM is often thought of as a business strategy that enables businesses to: • Understand the customer • Retain customers through better customer experience • Attract new customer • Win new clients and contracts • Increase profitably • Decrease customer management costs Hence the trend for MBA’s in mkting and HR is high.
  21. 21. Corporate Examples Of CRM: Vodafone launched the vodafone Tuesday scheme which is a great success!! Domino’s lauched many offers including Friday 1on1 free , 30-min delivery etc which has been a reason for the great expansion of the MNC
  22. 22. BENEFITS OF DEMAND MANAGEMENT…  Control over product availability  Confidence of sales force in ability to deliver product  Smoother product introductions  Improved ability to respond to change  A single game plan, based on the same set of numbers
  23. 23. BENEFITS OF DEMAND MANAGEMENT…  With the Demand Management, organizations can streamline approval processes, while ensuring that Information Technologies (IT) priorities are aligned with the broader business objectives and that approved initiatives will deliver maximum business value. Streamline: make (an organization or system) more efficient and effective by employing faster or simpler working methods Priority: a thing that is regarded as more important than another
  24. 24. Case study of Gaming industry. Before NOW!
  25. 25.  The video game industry is the economic sector involved with the development, marketing and sale of video and computer games to millions of people worldwide.  There are over 11 countries with revenues of over $1 billion related to this industry.  The so “non-existent” gaming industry sky-rocketed from just a $1.5 billion in the year 1982 to a whopping $ 54,506,258,511 in the year 2008.  Sources:  As the demand for new developments goes on increasing each year the principles of DEMAND MANAGEMENT ARE scrutinized and applied where ever possible  By means of Online feedbacks,Game Promos the developers gather information regarding what exactly the Gamer wants.  With evolution of languages and consoles the developers faced immense demands and the demands were met using scripting languages like python and HD technology.
  26. 26. Assassin's Creed: Black Ops: developed by Treyarch, published by Activision Developers: Ubisoft Montreal Ubisoft Annecy Gameloft Griptonite Games
  27. 27. GTA5: Rockstar games. ***** NFS-HOT PURSUIT: EA
  28. 28. Non-inflation sector.
  29. 29. Hope everyone enjoyed! Rohan Kotian 6494Tejas J Ghalsasi 6483