Levi Strauss

...

3. Sale force composite: Estimates from individual salespersons are reviewed for reasonableness, the aggregated

Each salesperson projects his or her sales

Combines at district and national levels

Sales reps know customer’s wants

May be iverly optmictic

4 market survey: ask the customers

Apply the naïve, moving average, exponential smoothing and trend methods’

Comput the 3 measures of forecast accuracy

Develop seasonal indicies

Conduct a regression and correlation analysis

Use a tracking signal

DrT In Class Hints

Product Life cycle

Introduction

Growth

Maturity

Decline

- Best Period to increase market share

- Product design and development is critical

- Frequent product and process design changes

- High production cost

- Limited models

- Attention to quality

- Practical to change price or quality image

- Forecasting critical

- Product and process reliability

- Competitive product improvement and options

- Increase capacity

- Shift toward product focus

- Enhance distribution

- Poor time to change price or quality image

- Standardization

- Fewer product changes and more minor changes

- Optimum Capacity

- Increasing stability of process

- Long production runs

- Product improvement and cost cutting

- Cost control is critical

- Little product differentiation

- Cost minimization

- Over capacity in the industry

- Prune line to eliminate items that’s not returning good margin

- Reduce capacity

House of Quality

identify customers wants,

identify prodcucts/services attributes,

relate the above.

Identify relationships between firm’s hows

Develop customer importance ratings

Evaluate competing products

Compare performace to desirable technical attributes

6steps in designing a new product

- Understand the customer

- Economic Changes

- Sociological and demographic changes

- Technological Changes

- Political and legal changes

- Market Practice, professional standards, suppliers, distributers

PDCA(Plan-Do-Check-Act)

Plan – identify the pattern and make a plan

Do – Test the plan

Check- Is the plan working

Act – Implement the plan and document it

Cycle repeats

DMAIC(6 Sigma)

Define – define the project purpose, scope and outputs, identifies the required process information keeping In mind the customer’s definition of quality

Measures- Measures the process and collect data

Analyzes- the data ensuring repeatability and reproducibility

Improves- improve and modifying and redesigning existing process and procedures

Controls- control the new process to make sure performance levels and maintained

TQM (Top Quality Management)

- Continuous Improvement

- Six Sigma (DMAIC)

- Employee Empowering

- Benchmarking

- JIT

- Taguchi Concept

- Knowledge of TQM tools