When Predictive Analytics is Just Forecasting

The term Big Data and Predictive Analytics are quite the rage these days. Colleges and universities are offering degrees in analytics. Consultants are offering services and dashboard software to help their clients be on top of their Big Data and Analytic game. Companies are creating Analytic departments led by either managers, directors, and even VPs. There is a fair amount of buzz in this area.

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The Right Data in the Right Place at the Right Time

On September 19, 2012, Mark Gavoor presented a webinar “The Right Data in the Right Place at the Right Time.” This webinar was sponsored by Northwest Analytical an industry leading provider of manufacturing intelligence and statistical process control software. Mark was invited to present by Jeff Cawley, VP of Industry Leadership. Mark and Jeff have known each other for years being introduced by their mutual friend Dr. John Surak. John invited both Jeff and Mark to co-author a paper with him and co-authored a paper together in the January 2008 issue of Food Quality.

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The People Part of S&OP: Part II

In the 1950s, coal mining productivity in the UK decreased. Ironically, productivity went down because of the introduction of machinery specifically designed to improve productivity. Why did the machinery not increase productivity? While the machinery was designed to improve productivity, the people part of the system was still operating under the status quo. No wonder productivity went in the wrong direction.

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Supply Chain and Finance: Part III - Working with Finance

This posting is the third and concluding parts of Supply Chain and Finance. The first two parts were posted in December 2011.

Every company wants to, or should want to, control their inventory. Inventory is essential for smooth production and order fulfillment. Too little inventory or inventory in the wrong balance, will impact revenues. When out-of-stocks are the issue, everyone in all functions are suddenly inventory, planning, purchasing, and logistics experts. A lot of attention is given to this kind of “inventory problem.” The attention comes immediately upon customer service going south. Sales, Marketing, Finance, and General Management all want to help the Supply Chain fix the breakdown in the supply chain.

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Supply Chain and Finance: Part 2 - Costing Methods

Let us continue with more financial based definitions for inventory.

There are five ways that Finance can value the inventory. Most companies choose a method and rarely change. The methods ar:

• First in, First Out (FIFO)
• Last in, First Out (LIFO)
• Average Costing (also called Moving Average)
• Standard Costing
• Order Specific Costing

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