Professional Documents
Culture Documents
Operations
Credits: 2
Course Component
• Mid semester Examination – 20%
• End semester Examination – 30%
• Quiz - 15%
• Assignment – 15%
• Projects - 20%
• Suggest Books
1. Factory Physics: Foundations of Manufacturing Management. Hopp, Wallace J., and Mark
L. Spearman. 3rd ed. Waveland Press Incorporated
2. Production Systems Engineering. Li , Jingshan, and Semyon M. Meerkov. Springer
3. Operations Management. Norman Gaither, Greg Frazier, Publication: Thomson South
western
4. Operations Management: Theory and Problems. Joseph G. Monks, Publication: McGraw-
Hill
3
Forecasting
• Estimate demand for products & services > necessary resources to produce
the output. (Sales Forecast)
• Short range forecast (Few days to week)
• Medium range forecast (Few week to month)
• Long range forecast (Few months to year)
Forecasting Example
Forecast Time span Example of thing that Typical units of forecast
horizon must to be forecast
Long range Year New/old production line Money
Factory capacities Gallons, hours, pound
Capacity fund Money
Facility need Space, volume
Medium range Months Product group Units
Departmental capacity Gallons, hours, pound
Workforce Worker, hours
Purchased material Units, pound, gallons
Inventories Units, money
Short range Weeks Specific products Units
Labor skill classes Workers, hour
Machine capacities Units, hours, gallons
Cash in hand Money
Inventories Unit, money
5
Forecasting Methods
• Qualitative forecasting method
1. Educated guess
2. Executive committee consensus
3. Delphi method
4. Survey of sales force
5. Survey of customers
6. Historical analogy
7. Market research
• Quantitative forecasting method
1. Linear regression
2. Moving average
3. Weighted moving average
4. Exponential smoothing
5. Exponential smoothing with trend
6
(𝑌 − 𝑦)2
• 𝑟2 =
(𝑦 − 𝑦)2
𝑦 2 −𝑎 𝑦 −𝑏 𝑥𝑦
• 𝑆𝑦𝑥 =
𝑛 −2
𝑛
𝑖=1 𝐴𝑐𝑡𝑢𝑎𝑙 𝑑𝑒𝑚𝑎𝑛𝑑 −𝐹𝑜𝑟𝑒𝑐𝑎𝑠𝑡 𝑑𝑒𝑚𝑎𝑛𝑑 𝑖
• 𝑀𝐴𝐷 =
𝑛
2
• 𝑀𝑆𝐸 = 𝑆𝑦𝑥
9
THANK YOU