Entrprise resource planning - Essay Example

Why is Demand Forecasting Accuracy important? What is the primary influencer on required accuracy? In statistics, demand forecasting accuracy entails the closeness degree of the quantity statement to that quantity’s actual value. In this case, it is difficult to measure the actual during the making of the forecast since the statement focuses on the future. On the other hand, calculating demand forecast accuracy entails the process where the business determines its accuracy of forecasts that is made depending on the customer’s product demand.

The importance of demand forecasting accuracy remains vital especially to distributors and manufacturers in avoiding stock-outs (Ray 34). It also helps maintaining adequate inventory levels within the organization. There are three primary factors or influencers in aggregate forecast accuracy include regulation changes, economic conditions and analyst characteristics changes. 2. Explain the Outsourcing Decision process used by the major US Automotive OEMs in Shedding most component manufacturing (e.g. Delphi, Visteon), while maintaining Most Metal Stamping and Powertrain Manufacturing.

Outsourcing remains firmly entrenched in the business. Therefore, companies mostly focus on the significance of the decision-making process during outsourcing. By engaging in the Outsourcing Decision Process, most US Automotive OEMs aim at increasing efficiency and saving costs in shedding component manufacturing during powertrain manufacturing and metal stamping. In doing the decision process, most OEMs tend to use the Outsourcing Decision matrix, which entails the operational performance.

The processes, in this case, include forming a strategic alliance, retaining, and outsourcing. On the other hand, using the matrix tool entails first identifying the tasks strategic importance, identifying the contribution of the operational performance and plotting the automotive OEMs tasks on the matrix. A more detailed insight in reference to outsourcing decision process used by most automotive OEMs includes preparing, selecting the vendor, transition, managing relationship and reconsideration.

During the preparation phase, the automotive OEMs engage in sourcing options, strategies, and the configuration activities. On the other hand, during the selection of the vendor, most automotive companies do the negotiation after choosing the vendor. The transition process entails defining the communication and knowledge exchange. It also entails assets, people and information transfer. Managing relationship, in this case, entails ensuring that the relationships last thus management of the success factors towards the outsourcing activity. 3. Companies in which competitive arena would be best suited by hiring a retired Army Officer.

Explain your choice. Hiring an Army officer who is retired in the organization would help in creating operational excellence. In this case, operational excellence focuses on cutting down production costs and enhancing consistency and speed. Generally, operational excellence remains important in establishing a competitive advantage within the market. Therefore, recruiting a retiree Army officer helps in enhancing efficiency within the organization especially in the company’s supply chain system.

An organization, which effectively suits a retiree army officer, is a supply chain organization. In this case, the officer would help in creating consistency within the organization by ensuring minimal deviation, especially from the standard process. 4. Explain why an effective Sales and Operations Planning process would be more important in a Hierarchical organizational structure than the others. Hierarchical organization entails the organizational structure in which its entities except one remains subordinate to a particular entity.

Hierarchical organizations prefer using sales and operational planning in providing confidence and insight over the company’s supply chain process. Sales and operations planning methodology remain important especially in maintaining effective communication relating to organization’s plans and sales objectives. Unlike other entities, hierarchical types of entities have structures, which suit the operations and sales planning processes. Additionally, the hierarchical structure is also divided into various functions, which accommodates the planning process.

Work CitedRay, Rajesh. Enterprise Resource Planning. New Delhi: TATA McGraw Hill Education, 2011. Print.