Cornerstones in Developing Forecasting Tool
Leppänen, Anniina Johanna (2019)
Leppänen, Anniina Johanna
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019101119872
https://urn.fi/URN:NBN:fi:amk-2019101119872
Tiivistelmä
The purpose of the current thesis was to identify the key elements in developing a forecasting tool. The case company is a subsidiary of a steel corporation and operates in the Nordics and the Baltics. It is a distributor specialising in stainless steel, nonferrous metals and carbon steel products with approximately 1100 employees. The company has been formed from a merger between two separate companies which has led to two different forecasting processes. The management of the company decided that in order to align the processes and to add more visibility to the forecasts, the forecasting tool, EffectPlan, that had been previously been used in one of the companies would be developed to include all forecasts.
The study used mixed qualitative research methods, such as personal interviews, and a pilot study project. Altogether 19 in-depth interviews were conducted to gather data from internal and external experts. The pilot study was conducted to study functionalities and the capabilities of the EffectPlan tool, as well as to test the tool. The theoretical framework focused on forecasting processes, Sales and operations planning (S&OP), project management as well as change management.
The findings showed that combining the forecasts is not easy. The findings from the pilot study showed that EffectPlan forecasting tool needed to be developed to correspond to the company’s business needs.
A major finding showed that some interviewees thought that development made more sense when done after another bigger investment, the ERP implementation project. Other research findings showed that the key elements in developing a forecasting tool were project management and the handling of business change. There was also a lack of communication and a misunderstanding in the pilot study project. External expert interviews revealed that communication and proper planning were also vital elements in the development of a forecasting tool.
The researcher recommends that the forecasting tool development model includes project planning and management, change management and communication activities. The researcher recommends that the plan is put into action by holding a project initiation workshop, where the important aspects are discussed. To gain real benefit from the forecasting tool, the forecast solution should be built on EffectPlan. The researcher also recommends that a communication and training plan is created to include all stakeholders in the project.
The study used mixed qualitative research methods, such as personal interviews, and a pilot study project. Altogether 19 in-depth interviews were conducted to gather data from internal and external experts. The pilot study was conducted to study functionalities and the capabilities of the EffectPlan tool, as well as to test the tool. The theoretical framework focused on forecasting processes, Sales and operations planning (S&OP), project management as well as change management.
The findings showed that combining the forecasts is not easy. The findings from the pilot study showed that EffectPlan forecasting tool needed to be developed to correspond to the company’s business needs.
A major finding showed that some interviewees thought that development made more sense when done after another bigger investment, the ERP implementation project. Other research findings showed that the key elements in developing a forecasting tool were project management and the handling of business change. There was also a lack of communication and a misunderstanding in the pilot study project. External expert interviews revealed that communication and proper planning were also vital elements in the development of a forecasting tool.
The researcher recommends that the forecasting tool development model includes project planning and management, change management and communication activities. The researcher recommends that the plan is put into action by holding a project initiation workshop, where the important aspects are discussed. To gain real benefit from the forecasting tool, the forecast solution should be built on EffectPlan. The researcher also recommends that a communication and training plan is created to include all stakeholders in the project.