demand management
TRANSCRIPT
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DEMAND MANAGEMENT
Stepan Baboglo
2010503092
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What do we mean by demand? Demand is the total number of requests for a
resource. Demand management is all about making
choices.
Request: an act of asking politely or formally for something
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Demand Management The demand management
process captures all work proposals in one place, guides the proposals through a multistage governance process, helps customers make decisions about which proposals to approve, and tracks progress on project execution until the work is completed.
Approve: officially agree to or accept as satisfactory
Proposal: a plan or suggestion, especially a formal or written one, put forward for consideration by others
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Traditional Demand Management…
Covers how a firm integrates information from and about its customers, internal and external to the firm, into the manufacturing planning and control systems.
How a firm integrates information from its customers with information about the firms goals and capabilities, to determine what should be produced in the future.
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Demand Management
Demand Management is based on “forecast” and plans.
In DM, forecasts of the quantities and timing of customer demand are developed. What do we actually plan to deliver to customers each period is the output of the process.
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Demand management is
The process of ensuring that market demand and the company’s capabilities are in synchronization
Recognizing all demands for products and services to support the marketplace.
Doing what is required to help make the demand happen
Prioritizing demand when supply is lacking. Planning and using resources for profitable
business results
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Optimize business processes for demand fulfillment and improve efficiency of services delivered…
Complete projects on time
Reduce costs Increase client
satisfaction Assess the
availability and skill sets of resources
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Supply and Demand Through an Integrated Solution
Manage business demand and customer satisfaction using a defined and repeatable approach.
Collaborate with business counterparts using a transparent decision-making process.
“Organizations that are switching
to the demand-supply modelenjoy significant gains in
productivity and prioritizationof investments.”
McKinsey Quarterly, September 2006,“Splitting Demand From Supply in IT”
by David Mark and Diogo P. Rau
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Demand management components
Goal customer service levels New product introductions Distribution resource planning Customer order entry and promising Sales and marketing plans Inventory targets Product commitments Interplant shipments Demand forecasting at item and aggregate levels
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COMPONENTS OF DEMAND
Demand that adds value is desirable and met Demand that adds value, is desirable, but
cannot be met Demand that does not add value,
undesirable, and should not be met.
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IMPORTANT ISSUES
Market segmentation Customer classification Product ranking
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Market segmentation
Growth Commonality of offering needs Response to brands Strategic importance Financial attractiveness
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Customer classification
Customer size Customer technology Company sale/ company share Business quality Importance to the value chain Opportunities for survival Willingness for alliance
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Product ranking
Profitability Customer’s value for product Competitive offerings Patent position Asset capability
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WHY FORECAST AND PLANS ARE IMPORTANT
A manufacturing manager cannot be held responsible for not getting a forecast right.
A manufacturing manager can and should be held responsible for making their plans.
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WHY FORECAST AND PLANS ARE IMPORTANT
Typical demand management phases are create, select, plan, and manage.
Demand management is a concept that integrates project proposals, portfolio analysis, and project management through workflows.
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WHY FORECAST AND PLANS ARE IMPORTANT
The goal of demand management is to enable customers to propose, view, categorize, prioritize, select, and track projects within their organization.
Demand Management is based on a forecast and planning because a manufacturing manager cannot be held responsible for not getting a forecast right.
Manufacturing manager can and should be held responsible for making their plans.
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Following figure shows the four phases of demand management
and how they fit together.
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BENEFITS OF DEMAND MANAGEMENT…
Control over product availability Confidence of sales force in ability to deliver
product Smoother product introductions Improved ability to respond to change A single game plan, based on the same set of
numbers
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BENEFITS OF DEMAND MANAGEMENT…
With the Demand Management, organizations can streamline approval processes, while ensuring that Information Technologies (IT) priorities are aligned with the broader business objectives and that approved initiatives will deliver maximum business value.
Streamline: make (an organization or system) more efficient and effective by employing faster or simpler working methods
Priority: a thing that is regarded as more important than another
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Thanks for listening…..