Title: Production Forecasting and Supply Chain Management Intro & Concepts
Course: Manufacturing Analytics (ATE Central) > Section: Module 4 - Production Forecasting and Supply Chain Management

Introduction

Production forecasting ensures manufacturers have the right materials to meet demand efficiently. A well-managed supply chain connects suppliers, manufacturers, and distributors to optimize production and delivery. Data analytics enhances decision-making, reducing costs and risks, while ERP systems streamline operations, supporting Just-in-Time (JIT) manufacturing.

Objectives

- Explain the role of production forecasting in material planning.
- Analyze supply chain dynamics in manufacturing.
- Utilize data analytics to improve efficiency and reduce risks.
- Identify how ERP systems optimize production and logistics.

Manufacturing Perspective

Production forecasting is essential in lean manufacturing. In order to have the right amount of raw material to start each manufacturing day, yields and demands must be calculated ahead of production. It is essential that production plans are built far enough out to be able to order the materials in time for those materials to be delivered to the plant in time to fulfill customer orders.

The supply chain describes a network of retailers, distributors, storage and suppliers that all participate in the delivery and production of a product. This supply chain can be of any range of size, from a small local business to an entire country, or even international supply chains. Each link in this supply chain is connected to another, each part feeding the surrounding ones to create a cooperative system of movement to ensure that raw materials get to manufacturers who create a product that then uses this network to disperse those products to consumers.

Image by the Hall Design Group

Using data analytics is foundational for continuous improvement in production forecasting and supply chain management. Analytics will help manufacturers make data-driven decisions, resulting in lower costs, improving the bottom line, and increasing OEE. Additionally, analytics in production forecasting and supply chain together will identify potential issues earlier on and provide a potential insight into risks.

Enterprise Resource Planning (ERP) software is employed by most manufacturing companies to coordinate the activities of receiving orders, ordering material, planning production, and arranging shipments. This software is critical for Just in Time (JIT) manufacturing.