
502 Part III n Information Quality Applied to Core Business Value Circles
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
J F M A M J J A S O N D
Forecast-Prod 1 Demand-Prod 1
Figure 11-3: Forecast Versus Demand Tracking to Measure Forecast Accuracy
Note that the Forecasted sales are consistently higher than actual Demand
(sales) indicating higher costs of inventory and handlings.
Communicate the Assessment result to Production schedulers to alert them
to the results in the event Production scheduling adjustments may be required.
Communicate Assessment results in an appropriate format and time to each
Forecast source (Customer, third party, and internal Forecasters) to evaluate the
need for Process Improvements.
Use the Quality Control Chart to document the Forecast Process Capability
over time as compared to actual Sales.
How to Improve Forecast and Demand Information Process
Quality (TIQM P4)
The assessments conducted in the preceding sections should give you an indi-
cation of if and where your Forecast processes may be broken. If the current
Forecast processes (multiple processes in Customer organizations and internal
within your organization) are causing process failure, waste, and Product and
Information Scrap and Rework, you, or your Customers, need to improve the
respective defective Forecast processes.
If your Order and Sales processes are broken, you may under-report Orders
or Sales th ...