Forecasting And Scheduling

Forecasting and Scheduling 1

FORECASTING AND SCHEDULING

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Forecasting and Scheduling 2

Introduction

Welcome to the yield management game. It is going to be one exciting and engaging

session. This game enables students to enhance their understanding of the concepts of yield

management through capacity and demand. Given the fact that yield results from capacity, it

therefore follows that the volume of yield depends on how the capacity and potential are tapped.

We found it best to pass this message in form of a game with a belief that it will stick in the mind

of the students for a long time. Time has been taken to analyze the whole concept and come up

with the best design of how to do it in an exciting as well an informative way (Clark Graham,

2008).

One of the objectives of this game is to stir up the minds of the learners, so that they can

get a clear picture of the function of operations management. It is going to analyze I deep the

key strategies applied by organizations so as to realize the maximum yield. As you may be

aware, every organization is set up with an objective of optimizing the potential therein, and as a

result deriving maximum benefits, both to the share holders and the stakeholders. The major

areas of yield management to be covered will be, first, some of the experiences in parts of the

economy such as the services sector. The second part will be emphasizing on the importance of

quality management in the effort to realize these objectives. This will be without forgetting the

utmost necessity for an organization to have clear forecasting and scheduling of each of its

activities. The issue of risk management due to the uncertainty of the future too will be

addressed. By the end of it all, students will have firsthand knowledge on the concept of yield

management. With this, we can be sure to produce quality managers, who are going to steer

organizations to great heights once they enter the job market. The impact of that will be positive

growth of the economy. The members of this group have been assigned various roles, and all are

Forecasting and Scheduling 3

going to participate fully. They have all rehearsed and prepared adequately for this presentation.

Beyond any reasonable doubt, everyone will obtain a comprehensive understanding of this

concept of yield management the end of this presentation in form of a game.

Forecasting and scheduling is an important activity for Yield management analysts in

service operation management. The main objective of creating this game is to let the student go

through the work of forecasting and scheduling of a yield management analyst. In forecasting, it

is important for students to know its importance and what determines its accuracy especially in

staffing of an organization. This is because, accurate forecasting makes the foundation of proper

scheduling without which under or overstaffing occurs. Overstaffing or understaffing will have a

negative impact on the profits of the organization (Rutherford & O'Fallon, 2012).

This game will be important in helping the students know the aspects and types of

forecasting in service operation management. The two approaches used in forecasting are the

qualitative and quantitative approach. On the other hand, there are several techniques types used

in forecasting. They include: judgmental forecast, time series forecast and associative models.

Judgmental forecast depends on various input sources. Time series are observations which are

time ordered and carried out at regular time intervals. Associative model involves development

of an equation that summarizes effects of predictive variables therefore enabling us to predict

variables of our interest ( Pipkins Inc., 2010)

Quantitative forecasting in service operation management involves projection of

historical data and developing associate models while qualitative forecasting is subjective.

Methods of quantitative forecasting are such as naïve forecasting, moving average method,

weighted average method, and exponential smoothing method (Pearson, 2012).

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Proper forecasting provides required accuracy while taking into account historic and

future dynamics. Various forecasting tools perform differently and no forecasting methodology

is optimal for all circumstances. However there are four factors that should be taken into

consideration. They include available historical data, period of forecasting, nature of the data and

special events. Integrated approach is an important component in accurate forecasting in that it

helps to support multi-skilled issues (Pearson, 2012). Having forecasting algorithm is important

to help calculate requirements in a multi skilled environment and avoid analytical simulations

that are repetitive. It is important to know that forecasts that are primary skill based leads to

overstaffing as they do not take into consideration the factor of overflow.

In planning the game students should know that, scheduling is used primarily by yield

analyst managers to improve performance. Operations scheduling enables proper distribution of

resources such as human resources facilities and equipments utilized in an organization

(McMahon-Beattie, Yeoman, & Ingold, 2000). Two major activities carried out scheduling are

loading and sequencing. Loading is the appropriate assignment of production related work, to the

correct organizational resources. On the other hand sequencing tries to establish the order for

performing work to help meet targets and priorities of production. These two helps service

operation managers utilize resources of an organization to the maximum during production (

Pipkins Inc., 2010)

Accurate scheduling is important for service operation yield managers especially when

comes to staffing. However accurate scheduling depends on correct forecasting and is used to

determine number of agents that can meet certain levels of service. In finding the best scheduling

solution, the tool being used in the exercise should schedule agents to multiple skills in the

course of the day with each skill having different queues and each queue representing a skill set.

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Queues sometimes are used in representation of non-demand work such as clerical duty, back

office or email. Agents may therefore be assigned either call handling or non-call handling

duties.

It is important to have proper forecasting and scheduling tools for service operation

manager’s in order to carry out forecasting and scheduling accurately to avoid wasting human

and other important resources of an organization. This exercise of creating a yield management

game will help students acquire special skills and expertise needed to support increasingly

complex products and services by helping them know the right tools of forecasting and

scheduling (Pipkins, Inc.).

Conclusion

The study of yield management is an exciting and mind awakening one as it enables one

to have the overall view of how organizations bring together their resources, and realize great

profits. This is what has been applied by all the successful organizations of the world, including

the fortune five hundred companies. Every organization needs to do an audit of its potential and

gauge to what degree it is utilizing it. Doing that enables it o unearth it idle capacity, which could

generate more returns once tapped. The management has to wise in the way they combine the

various factors of production in this bid of maximizing yield. Proper and well articulated designs

have to be set in place. These include time bound strategic plans that look way into the future

and providing a path of where the company wants to go. This is what has been emphasized by

this game. The interaction and the engagement during the game have been beneficial as it has

enabled learners to apply the teachings of their curriculum (McMahon-Beattie, Yeoman, &

Ingold, 2000). The game has passed across loads of information in a record time. This is because

of the ability to summarize concepts in small bits during the presentation. Some of this sort last

Forecasting and Scheduling 6

long in the minds of the audience, and the long run effect is the creation of entrepreneurial minds

which will be of great benefit to the economy. In summary, we believe the presentation has been

beneficial and educative as it was expected to be, and the issue of yield management has been

simplified for everyone to understand.

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Reference List

Clark Graham, (2008), Service industries -- Management, FT Prentice Hall, New York.

McMahon-Beattie, U., Yeoman, I., & Ingold, A, (2000), Yield management, Cengage Learning,

Independence.

Pearson, C, (2012), Double Down On Your Data; Second Edition, Tate Pub & Enterprises, New

York.

Pipkins Inc. (2010), Accurate Forecasting and Scheduling:The Solution for Overstaffing.

Retrieved may 10, 2013, from PipKins:

http://www.crmxchange.com/column/sheduling_staffing/pipkinsS09.asp

Rutherford, D, G., & O'Fallon, M, J, (2012), Hotel Management and Operations.

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