MBA576 Week 2 Discussion Responses

Kibby and Strand Operational Process Manual

Luis Osorio Garcia

MBA 576 Operations Management

Park University

2021

Kibby and Strand Production Forecast

The purpose of this document is to established guidelines for decision making process when it comes to decide about future demand. The primary goal of this is to match supply to demand and everything in between such as workforce, marketing activities, schedules, funding, equipment, etc., (Stevenson, 2021). In regards production, the forecast needs to make sure the process of converting raw material into finished product and the lead-time to deliver the good meet contract deadlines. It entails raw material input necessary to have in stock to work non-stop the time necessary throughout the time horizon, machinery maintenance, workforce necessary to operate the machinery, hiring activities and work schedule (including holidays). Kibby and Strand production forecast need to be revised at least every six months to make sure the production for the next season (6 moths) will match company’s capacity.

Production forecasting objectives:

· Make sure of a raw material input for the production process.

· Provide to Human Resources workforce need long time in advance.

· Articulate the production and shipping department so the lead-time matches the contract specifications.

· Foresee the need to new machinery acquisition.

Data required:

· Last-year’s contract units produced

· Business relations and odds to get new contracts (built reputation over the past year)

· Machinery’s maintenance schedule

· Man-labor needed

· Holidays throughout the season to forecast

· Market trends during the past year

· Seasonal predictable factors: product/feature releases throughout the year

Quantitative Method per product

The quantitative method to calculate production output (units) is the straight-line method (Marcotullio, 2020). The purpose of calculate increase (or decrease) of units from one year to another is to know by how much to increase or reduce production capacity from one season to another for certain goods. Production of goods will vary according to the time of the year as summer and winter collections demand happen during different times of the year.

Last year period’s units sold x (1 + % rate of sales growth) = next year period’s units

Such analysis must be done for each product separately, then assign priority as far as raw material obtaining and production schedule. The price unit will tell how much a single product drives the company’s revenue and it will determine also how important is that product over the others.

References

Gaille, B. (2020). Apple's Mission Statement and Vision Statement Explained. Retrieved 23 August 2021, from https://brandongaille.com/apples-mission-statement/

Marcotullio, N. (2020). The Top 5 Methods for Quantitative Sales Forecasting. Retrieved 24 August 2021, from https://mapmycustomers.me/blog/the-top-3-methods-for-quantitative-sales-forecasting/

Rowland, C. (2019). Apple Inc. Operations Management: 10 Decisions, Productivity - Panmore Institute. Retrieved 23 August 2021, from http://panmore.com/apple-inc-operations-management-10-decisions-areas-productivity

Stevenson, W. (2021). Operations management (14th ed.). New York: McGraw-Hill Education.