Inventory Control and Forecasting Marketing and Finance for Enterprise Product Development Management and Economics of Advanced Material Engineering.

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Engineering Management Presentation on

Inventory Control and Forecasting

Marketing and Finance for Enterprise

Product Development Management and Economics of Advanced Material Engineering

CAD Leadership & Principles

Group Members:Ashar Ahmed (1045137)Bhawna Rathi (1045139)Kuldeep Jashan (1045145)

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Inventory Control and Forecasting

Chapter 1

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Inventory:

Inventory is material that the firm obtains in advance of need, holds until it is needed, and then used, consumes, incorporates into a product, sells, or otherwise disposes it of. A business inventory is temporary in nature.

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Inventory control:

It’s the means by which materials of the correct quality and in correct quantity are made available as and when required with due regard to economic in storage and ordering cost.

The desired level of inventory can neither be high or low.

High level inventory will lead to increase in carrying cost while low level of inventory will lead to increase in ordering cost.

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The activities of inventory control normally include the following: Determination of the limits of the inventories to

be held.

Determination of inventory policies.

Selling out of investments pattern and its regulations as per individual and collective requirements.

Follow up to examine the work of inventory policy and effect change as and when needed.

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Scope of Inventory Control:

SCOPE OF INVENTORY CONTROL

Determination of inventory policies. Determini

ng various stock levels

Determining economic order size

Safety or buffer stock

Determining lead time

Examining the work of inventory policy

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Objectives of inventory control:

To ensure smooth flow of stock.

To provide for required quality of materials.

To control investments in stock.

Protection against fluctuating demand.

Protection against fluctuations in output.

Minimization of risk and uncertainty.

Risk of obsolescence.

Minimization of material cost.

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What is Forecasting?

Process of predicting a future event based on historical data

Educated Guessing Underlying basis of

all business decisions Production Inventory Personnel Facilities

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Importance of Forecasting:

Departments throughout the organization depend on forecasts to formulate and execute their plans.

Finance needs forecasts to project cash flows and capital requirements.

Human resources need forecasts to anticipate hiring needs.

Production needs forecasts to plan production levels, workforce, material requirements, inventories, etc.

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Importance of Forecasting:

Demand is not the only variable of interest to forecasters.

Manufacturers also forecast worker absenteeism, machine availability, material costs, transportation and production lead times, etc.

Besides demand, service providers are also interested in forecasts of population, of other demographic variables, of weather, etc.

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Forecasting Methods:

Qualitative Use management judgment, expertise, and

opinion to predict future demand

Time series Statistical techniques that use historical demand

data to predict future demand

Regression methods Attempt to develop a mathematical relationship

between demand and factors that cause its behavior

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Qualitative:

Executive Judgment: Opinion of a group of high level experts or managers is pooled

Sales Force Composite: Each regional salesperson provides his/her sales estimates. Those forecasts are then reviewed to make sure they are realistic. All regional forecasts are then pooled at the district and national levels to obtain an overall forecast.

Market Research/Survey: Solicits input from customers pertaining to their future purchasing plans. It involves the use of questionnaires, consumer panels and tests of new products and services.

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Time Series:

Assume that what has occurred in the past will continue to occur in the future.

Relate the forecast to only one fact- time

Moving average Exponential smoothing Linear trend line

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Regression:

Linear Regression Correlation & Regression Multiple Regression

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Forecasting Error:

A good forecasting has a small error.

▪ Error = Demand - Forecast

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Marketing and Finance for Enterprise

Chapter 2

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Marketing:

Provides products/services meeting the needs and wants of customers, focusing on basic marketing concepts and applications.

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Levels of Marketing Strategy: Corporate Level: Set future direction of what businesses to pursue (product, service, total solution, etc.) and what value to be emphasized

Business Level: Bring products/services to the marketplace and achieve/maintain competitive advantages

Operational Level:Plan marketing program and implement/control marketing efforts

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Marketing Effectiveness:

Total Success: High profitability at maximum possible rate

Partial Success: New customers replace lost customers

Partial Failure: Sales slow or fall due to a lack of new customers

Total Failure: Sales fall as customers leave

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Market Forecast:

Define the market - Total Sales revenue per year of all products delivering similar benefits to customers regardless of physical and functional features

Segment the market - Subdivide total market into homogeneous customer subgroups with similar buying behavior and preferences

Determine segment drivers and predict their changes - key factors affecting the segment growths

Conduct sensitivity analyses - assess risks and check assumptions

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Financial Plan:

Define strategy and prioritize activities to ensure organizational alignment with corporate goals

Plan, budget, forecast and allocate resources to support strategy and achieve optimal execution

Consolidate, monitor and report on performance outcomes for management, regulatory and statutory purposes, while maintaining a fully documented audit trail

Model and optimize profitability drivers on an ongoing basis to achieve your overall business goals

Enhance performance through comprehensive, relevant and flexible analytics

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Develop and Present the Financial Plan:

Your planner should: Establish and prepare a financial plan customized

to fulfill your objectives and goals, values, and run the risk of tolerance, while offering projections and referrals.

Present the plan to you. Develop a suitable testimonial cycle. You and your planner  should: Interact to make sure that the plan fulfills your

objectives and goals.

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Execute the Financial Plan:

Your planner must:

Assist you in executing the referrals talked about if you desire. This could include working with contacts with various other experts such as mutual fund sales agents, accounting professionals, insurance coverage representatives and legal representatives.

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Monitor the Financial Plan:You and your planner need to: Settle on who will keep track of and assess whether

your plan is assisting you progression towards your objectives.

If your planner is in charge of the process, your planner must: Regularly contact you to evaluate the progression of

the plan and make modifications to the referrals needed to assist you attain your objectives. This testimonial must consist of:

An evaluation and examination of the effect of altering tax laws and financial conditions.

An evaluation of your life scenarios and a change of the suggestions if required as those situations alter with life activities such as birth, disease, marital relationship, retirement, and so on

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Product Development Management and Advanced Material Engineering

Chapter 3

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Product Development:

Product development converts a product idea into a physical form and identifies a basic marketing strategy.

A system of defined steps and tasks such as strategy, organization, concept generation, marketing plan creation, evaluation, and commercialization of a new product.

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Product Development Process:

Understanding the OpportunityDeveloping a Concept

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Product Development Process Steps:

RESEARCH Market research Performance research

DESIGN Concept Physical Prototype Final Product

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Product Development Process Steps:

DESIGN ANALYSES Verify performance Cost and Performance risks

TESTING Prototypes testing Documented test methods and standards

HAZARD ANALYSIS

MANUFACTURE AND RELEASE

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Advanced Material Engineering:

Creation of materials at the molecular and/or atomic scale, for: advancing technology developing more efficient products creating new manufacturing technologies

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Economic Considerations: Three factors which affect the cost of a

product component design the material(s) used the manufacturing technique(s) that are

employed

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Component Design Materials:

Cost of a component may be associated with its design

Design Specifications size, shape, and configuration, which will

affect in-service component performance.

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Recycling:

Important stage in material sciences when new materials are being designed and

synthesized

Recyclability/Disposability Issues: material should be recyclable

▪ can be used infinite times material should be biodegradable

▪ elasticity

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CAD Leadership & Principles

Chapter 4

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The importance of CAD leadership: Maximizing the potential benefits of your CAD

system demands a combination of planning, organization, and expertise.

Using the right tools at the right time and under the right circumstances can make the difference between success and failure.

Ensuring that your organization deploys CAD tools in the most effective, efficient, and practical manner is the role of the CAD leader.

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Ten strategies for becoming a CAD leader:

1. Embrace best practices and new technologies2. Develop skills and retain talents3. Maximize integration and automation4. Foster collaboration and innovation5. Focus on continuous quality improvement6. Leverage design data throughout the enterprise7. Document and analyze productivity8. Manage product design data efficiently9. Communicate effectively with business

personnel10. Demonstrate product development contributions

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Principles of CAD Management: Division of work Authority Discipline Unity of command

One “CAD Boss” ! Unity of direction Subordination of individual interests to the

general interest Take a back seat

Remuneration A fair wage

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Principles of CAD Management:

Centralization Scalar chain

Effective Communication Order Equity Stability of tenure of personnel Initiative

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Thank you !