Enabling Growth through Improved Forecasting and Collaboration
Peltomäki, Pauliina (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023061323726
https://urn.fi/URN:NBN:fi:amk-2023061323726
Tiivistelmä
The purpose of this Master’s thesis was to study if improved forecasting and collaboration activities could support the Case Company’s performance during times of growth. The thesis focused on a specific part called “panel” which was causing a serious bottleneck for 2022 customer deliveries.
The thesis was conducted as a qualitative case study. Several thematical interviews were held to understand the prevailing challenges with forecasting and collaboration. After thorough analysis of transcribed interviews, the observations made from each interview were presented to a larger group in a brainstorming session. Together, the participants identified areas where they could collaborate to improve current forecasts and delivery performance. In May 2023, the supply of panels was no longer the main challenge in the supply chain. However, the need to closely monitor the deliveries to prevent similar bottleneck remains.
According to the study results, the Case Company should improve both internal and external collaboration. The company’s Sales and Operations Review Board (SORB) process should be documented, and to provide a longer-term demand forecast, business intelligence should be included in the SORB forecast. In addition, activities to improve the supplier relationship with the Supplier X should be taken. The Case Company should try certain improvement actions with internal collaboration and then evaluate if they have sufficient impact on near future forecasting. Improved short-term forecasting is assumed to have a positive effect on the overall Customer Delivery Performance as the suppliers struggle with inadequate lead-times from order to delivery. Furthermore, the study showed that obsolete items in part lists are one of the main reasons for delays. To fix the actual root cause for delivery challenges, the Case Company should evaluate the level of engineering resources required to update the outdated Bill of Materials.
To conclude, the study showed that the Case Company’s single sourcing model for the panels, and the assembly the panel is a part of, is complex and risky. The new panel design will not remove the risk of supply disruption due to again use of single sourcing. Therefore, it is highly important to put in place excess buffer stocks and good supply agreements. The results also showed that together the Case Company’s employees can generate great improvement ideas if they are encouraged to collaborate for mutual cause.
The thesis was conducted as a qualitative case study. Several thematical interviews were held to understand the prevailing challenges with forecasting and collaboration. After thorough analysis of transcribed interviews, the observations made from each interview were presented to a larger group in a brainstorming session. Together, the participants identified areas where they could collaborate to improve current forecasts and delivery performance. In May 2023, the supply of panels was no longer the main challenge in the supply chain. However, the need to closely monitor the deliveries to prevent similar bottleneck remains.
According to the study results, the Case Company should improve both internal and external collaboration. The company’s Sales and Operations Review Board (SORB) process should be documented, and to provide a longer-term demand forecast, business intelligence should be included in the SORB forecast. In addition, activities to improve the supplier relationship with the Supplier X should be taken. The Case Company should try certain improvement actions with internal collaboration and then evaluate if they have sufficient impact on near future forecasting. Improved short-term forecasting is assumed to have a positive effect on the overall Customer Delivery Performance as the suppliers struggle with inadequate lead-times from order to delivery. Furthermore, the study showed that obsolete items in part lists are one of the main reasons for delays. To fix the actual root cause for delivery challenges, the Case Company should evaluate the level of engineering resources required to update the outdated Bill of Materials.
To conclude, the study showed that the Case Company’s single sourcing model for the panels, and the assembly the panel is a part of, is complex and risky. The new panel design will not remove the risk of supply disruption due to again use of single sourcing. Therefore, it is highly important to put in place excess buffer stocks and good supply agreements. The results also showed that together the Case Company’s employees can generate great improvement ideas if they are encouraged to collaborate for mutual cause.