How To Build Demand Management Plans In A Lean Environment

HOW TO BUILD DEMAND MANAGEMENT PLANS IN A LEAN ENVIRONMENT By Bob Montgomery A lean operation calls for eliminating any process that does not add value to the business … forecasting and demand management are two important activities that nurture lean environment … to improve forecasts, you have to put in place new procedures for monitoring and revising forecasts. M M any organizations are striving for lean performance strategies. For that they need effective demand management plans. It is, therefore, imperative to understand the importance of forecasting and demand management for developing a lean enterprise. In the traditional way of thinking, Cost + Profit = Selling Price, but in the lean way of thinking, Price – Cost = Profit. Therefore, in today’s markets the only acceptable way to increase profit is to decrease cost. The only way to decrease cost is to eliminate waste. One way to eliminate waste is through continuous process improvement. CONTINUOUS IMPROVEMENT PROCESS To achieve continuous process improvement, we have to focus on value streams, correct identification of value to the ultimate customer on a continuous basis which allows us to create activities that ...