ANUR MODI

DURJAY DAS
JOJU JOHN
KRISHNAN HARIHARAN
KEDAR KUMAR
VEERA VIGNESH
VIGHNESH TAMSE
SAI CHARAN
OVERVIEW
PROBLEM
PROBLEM Inaccurate forecasting of the Demand
PROBLEM Inaccurate estimate of Materials

RAW
MATERIAL

WIP

FINISHED
PRODUCTS
PROBLEM Consequences...
5 WHY’s WASTAGE OF MATERIALS

High stock pile-up

Why?

Inaccurate Forecasting of Demand

Why?

Why? External factor not included in forecasting

Inexperienced forecasters, unable to perceive new

Why? trend among customer

No centralized Supply Planning Department and

Why? software
ISHIKAWA
Management Man Method
Inefficient system for
Decentralized Ordering Based forecasting the demands
Ordering System on Experience

Not considering external

Natural Calamity / Inefficient Method for
factors (Holidays, Local
Road blocks Stock refill

Human error due to Seasonality is not included

Unavailability of Specialist manual counting in demand forecast
stock controllers

Stock
Management
Error in In-house Breakdown of Cold Issue
Storage Machines Wastage of Food

Ever Changing Processing Unpredicted

Machine Failures demands

Measurement Machine Material

Management
Management
Decentralized Unavailability of
Ordering System Specialist stock
controllers

Natural Calamity / Road

blocks
Stock
Management
Issue
Man
Man

Ordering Based on
Experience Not considering external factors
(Holidays, Local Festivals)

Human error due to

manual counting
Stock
Management
Issue
Method
Method

Inefficient system for

forecasting the Inefficient Method for
demands Stock refill

Seasonality is not included

in demand forecast
Stock
Management
Issue
Measurement

Measurement

Error in In-house
Stock counting

Ever Changing
customer Needs

Stock
Management
Issue
Machine
Machine

Breakdown of Cold
Storage Machines

Processing Machine
Failures
Stock
Management
Issue
Material
Material

Wastage of
Food

Unpredicted
demands

Stock
Management
Issue
ISHIKAWA
Management Man Method
Inefficient system for
Decentralized Ordering Based forecasting the demands
Ordering System on Experience

Not considering external

Natural Calamity / Inefficient Method for
factors (Holidays, Local
Road blocks Stock refill

Human error due to Seasonality is not included

Unavailability of Specialist manual counting in demand forecast
stock controllers

Stock
Management
Error in In-house Breakdown of Cold Issue
Storage Machines Wastage of Food

Ever Changing Processing Unpredicted

Machine Failures demands

Measurement Machine Material

SWOT
STRENGTH

50 million consumers per day

Availability of day-to-day data

FIFO – Stock Handling Methodology

WEAKNESS

No centralized software for storing data

and automated re-order

Stock re-ordering done by local restaurant

managers
OPPORTUNITY

Minimal wastage of raw materials

Reduced emergency deliveries

Increased customer satisfaction

through fresh products & low costs
THREAT
Change in customer taste

Reduction in brand loyalty

Losing market share to the

competitors

Reduction in profits
STRATEGIES
Centralized planning team with experienced
Stock controllers and Restaurant employees

Continuous communication between

centralized team and local manager through
WebLog systems

Communicating the information about local

events and promotions to include in
forecasting
FORECASTING
MODEL Forecasting model uses historic product mix
data for last 2 years

Store specific and national casual factors like

National promotions and school holidays

Time Series Analysis

MANUGISTICS
CONCLUSION
Due to better forecasting model we can
achieve balance between SUPPLY and
DEMAND

Improved Customer experience through

reduction in cost and better service quality
from managers

Automated Reordering reduces the error in

stock of the materials
CONCLUSION
Eliminate the inexperience in ordering which
helps the new managers

Stock levels are optimum level, ensuring sales

of fresh product

Optimal raw material supplies in the

promotions
We are aren’t you?