Analysis, standardization and improvement of a raw material forecast process in an automotive glazing company

Abstract

This project analyzes the current practices of a specific raw material forecasting around the seven manufacturing EU plants of a French leading company in automotive glazing. The lack of uniformity, high expenses and difficulty to estimate overall yearly consumption volumes to receive rebates, have dire consequences on company’s profitability. Nine Best Practices to standardize the process and a central monitoring have been established in order to increase the forecast accuracy. Furthermore, these changes will reduce inventory levels and improve suppliers’ relationship. It is also concluded that MAPE, as forecast error measure, is preferred as a tradeoff of company’s constraints and common comprehension through employees.