Forecasting Demand Quality Management and Location and Layout Decisions - Essay Example

Forecasting Demand, Quality Management and Location and Layout Decisions Literature Review Student’s Name Institution Date Forecasting Demand, Quality Management and Location and Layout Decisions Literature Introduction Demand forecasts, quality management and location and layout decisions are important issues that have an impact on business performance. All business firms should be properly prepared for different issues they are likely to face in specific industries they operate in. As a result they need to anticipate the demand for their products in various markets before they reach out to customers in these markets. They also need to institute high quality management practices and choose appropriate locations for their businesses to help them perform well in their industries. This paper will review various publications that discuss these three topics to analyze their impacts on business performance in various markets. Forecasting Demand Kaes and Azeem (2009) reveal that demand forecasting in the ready made garments industry enables firms to plan ahead more effectively. They reveal that demand forecasts make it possible for garment manufacturers in Bangladesh and other parts of the world to stay competitive in the market. Business firms that forecast are able to identify the needs of their customers easily. They are able to come up with effective strategies that target consumers. As a result, they come up with products that are suitable for prevailing market conditions and this boosts their long term performance. Demand forecasting also helps a firm to review its internal supply chain processes to ensure they are well designed for its business operations. Therefore, this helps managers in a business firm to make appropriate management decisions. Green and Armstrong (2012) reveal that evidence based methods of demand forecasting bring more accurate results and they guide business firms to take appropriate actions to improve their operations. They argue that modern management researchers have not paid a lot of attention to evidence based approaches that uncover more information about demand forecasting. As a result, managers need to follow accurate and evidence based demand forecasting methods to make appropriate decisions for their firms. They need to use various surveys to determine existing trends in the market to find out how they affect the long term stability of their business firms in various industries they operate in. Therefore, they need to use judgment, intentions, expectations, prediction and simulated interaction methods to plan future business processes that are important to their growth. Galucci (2013) reveals that modern business firms operate in highly competitive markets and as such, they need to be more efficient in their operations. He insists that they need to come up with modalities that help them reduce unnecessary wastage in their operations. This will enable them to grow and increase their competitiveness in various industries they operate in. The author reveals that planning processes in many organizations are not responsive to their specific needs and situations and they expose them to various risks. Therefore, it is important for business firms to rely on accurate demand forecasting tools that are more efficient to help them reduce wastes. These improvements will enable business firms to focus on activities that are more helpful to their long term performance in various industries they operate in. Accurate demand forecasting methods help business firms to make appropriate decisions which improve their performance in different markets they are active in (Crum & Palmatier 2003). Therefore, business firms need to collaborate with their suppliers and clients to find out crucial demand information about products they sell in different markets. This approach helps business firms to increase their sales because they are able to identify how to manage consumers’ demand for their products in the market. Accurate demand forecasts help business firms streamline their inventory and supply chain processes. In the long run, this is a crucial determinant on business success because a firm is able to satisfy customers’ expectations in the market. Effective demand management helps a firm to plan effective production cycles for its commodities to ensure the quantity produced is adequate to satisfy prevailing market needs. They also help business firms to synchronise their financial and supply chain processes. Quality Management Gatti, Caruana and Snehota (2012) reveal that corporate social responsibility helps a firm to strengthen the quality of its brand in various markets serves. They reveal that a firm needs to work hard to maintain a good corporate reputation in different markets it serves by participating in various CSR activities. The link between CSR and brand reputation cannot be ignored because it gives a firm a competitive advantage in the industry it operates in. In effect, this stimulates positive consumer perceptions about the products a firm sells in the market. Business firms need to be actively involved in CSR campaigns to make consumers and other people understand their values and missions. This will strengthen their reputations and brands in various markets they target. Scarlett (2001) argues that a culture of total quality management in any firm enables it to be consistent in its duties to improve the quality of results obtained out of various processes. As a result, a firm is able to empower its workers to participate in various forms of decision making to ensure it registers positive results out of its operations. Managers need to rely on bottom-up approaches in their firms to encourage workers to generate positive ideas for organisational improvement. Business firms also need to change their work philosophies to encourage their employees to have positive attitudes about various work processes. They need to encourage employees to be more committed to ensure they register good results out of different tasks they are working on. Therefore, they need to work harder to eliminate barriers at the workplace which discourage employees from sharing ideas. Colurcio (2009) reveals that quality management enables an organisation stimulate knowledge sharing between its workers. There is a relationship between knowledge management and innovation because they help a firm to register high quality results in its operations. Therefore, firms that institute high quality management policies are able to encourage their workers to utilise critical thinking processes in their duties. Such firms are able to improve their internal and external processes and they are able to improve their competitive advantage in different industries they are active in. Business firms need to look for new ways to add value to their operations by managing their workers’ talents and skills effectively to obtain positive results. As a result, they are able to have competent workers who are able to discharge their duties effectively. Soft factors such as managers’ commitment, employee participation, training and rewards have a significant impact on quality management in any organisation (Abdullah, Ahmad & Ismail, 2008). These authors reveal that managers who are committed to their firms are willing to make different types of sacrifices to improve performance. Such managers encourage employees working under them to participate in important processes in the firm which have an impact on performance. They insist that firms need to give their employees more opportunities to increase their skills by encouraging them to go for various training programs. They also insist that employees who register good performance in their workstations need to be rewarded to motivate them to work harder. All these soft factors enable an organisation to observe high quality management practices in its operations. Location and Layout Decisions The location of a facility has a significant impact on the design of a firm’s supply chain networks. A firm’s physical location needs to have an effective layout to enable employees, customers and suppliers to move freely without any hindrances (Melo, Nickel & Saldanha- da- Gama, 2008). The physical location of a facility needs to have a good spatial arrangement to ensure customer needs and expectations are served effectively. There are various factors to consider before choosing a particular location for business operations. A firm has to think about the type of services to be offered, the costs to be incurred and the accessibility of the location to both staff and customers. This helps managers to design the location chosen properly to make it appropriate for different functions that are supposed to be performed by the firm. The design of a physical layout determines the costs a firm is likely to incur in its operations. Therefore, a physical location that has a well designed layout enables a firm to reduce its operating costs and ensures its employees work in a comfortable environment. Many manufacturing and service companies do not understand how to utilise space to enhance workers’ safety and productivity (Shahin & Poormostafa 2011). It is important for business firms to adopt flexible arrangement patterns in their physical locations to ensure all employees have a good working environment. They also need to ensure the layout designs they adopt help employees and other stakeholders to save time to improve the quality of results attained from their internal operations. Managers need to consult with other important stakeholders to choose appropriate designs for their operations. A business firm needs to assess its labour practices and internal operations before choosing a specific physical location for its operations. Murthy (2005) reveals that the location of a plant needs to be chosen after all stakeholders’ opinions have been analysed. Business firms also need to consider future expansion and relocation plans when choosing the layout of their physical business location. Expansion or remodelling of the physical layout is likely to occur when a firm experiences market growth which necessitates the establishment of new departments and sections. As a result, the firm is able to decide on the most suitable layout to help it perform its functions more effectively. The layout design chosen by a firm needs to conform to all regulations to ensure important safety features and exits are clearly visible to every person present in that location. Wilsner, Tan & Leong (2008) insist that the layout of company premises needs to be done by a person who is knowledgeable about structural design. This will make it possible for a firm to utilise existing space more effectively to help it carry out its functions in the industry more effectively. An organisation needs to anticipate any future staffing needs to determine how they will be handled within the space that has been chosen as its physical location. Therefore, flexible layout patterns which can be remodelled when the need arises should be used by a firm to design the layout of its preferred location. Business firms also need to design self service spaces to minimise congestion in their premises. This can lead to customers being served quickly in various points of service and this improves the overall quality a firm offers to its customers. In conclusion demand forecasting, quality management and location choices have a significant impact on business performance. They enable a business to streamline its processes to conform to specific situations in the industry it operates in. References Abdullah, MMB, Ahmad, ZA & Ismail, A 2008, ‘The importance of soft factors for quality improvement: case study of electrical and electronics firms in Malaysia’, International Journal of Business Management, vol. 3, no. 12, pp. 60-69. Colurcio, M 2009, ‘TQM: a knowledge enabler?’ The TQM Journal, vol. 21, no. 3, pp. 236-248. Crum, C& Palmatier, GE 2003, Demand management best practices: process, principles and collaboration, J. Ross Publishing, Boca Raton , FL. Gallucci, J 2013, ‘Lean forecasting: a competitive edge’, Journal of Business Forecasting, vol. 32, no.2. pp. 1-5. Gatti, L., Caruana, A & Snehota, I 2012, ‘The role of corporate social responsibility, perceived quality and corporate reputation on purchase intention: implications for brand management’ Journal of Brand Management, vol. 20, pp. 65-76. Green, KC & Armstrong, JS 2012, Demand forecasting: evidence based methods, Wharton School, University of Pennsylvania, Philadelphia. Kaes, I & Azeem, A 2009, ‘Demand forecasting and supplier selection for incoming material in RMG industry: a case study’, International Journal of Business and Management, vol. 4, no. 5, pp. 149-159. Melo, MT., Nickel, S & Saldanha-da-Gama, F 2009, ‘Facility location and supply chain management – a review’, European Journal of Operational Research vol. 196, pp. 401- 412. Murthy, PR 2005, Production and operations management, New Age International, London. Scarlett, R 2001, Value based management, Elsevier, London. Shahin, A & Poormostafa, M 2011, ‘Facility layout simulation and optimization: an integration of advanced quality and decision making tools and techniques’, Modern Applied Science Vol. 5, No. 4, pp. 95-111. Wilsner, JD., Tan, KC & Leong, G 2008, Principles of supply chain management: a balanced approach, Cengage Learning, Mason. Read More