Primary Forecasting Techniques
Primary forecasting technique assists Boeing to plan for the future. The primary techniques are based on subjective criteria, and it usually totals to little more than wishful thinking or guesses. Others are based on historical, measurable quantitative data and are accorded more credibility by outside parties like potential investors or analysts. Since no tool can predict the future with certainty, primary forecasting techniques remain important in estimating the prospects of Boeing company. The following are the Primary forecasting technique that Boeing company cause to estimate its prospects.
Delphi Technique
Delphi Technique was developed in the 1960s by RAND Corporation. These techniques require a group of experts to reply to a series of questioners. The experts who are responding to the questions are kept apart and oblivious regarding each other ( Heizer, 2016) . The results obtained from the first questioner are compiled and second questioners created based on the first questioner are presented to the experts who are required to reexamine their responses to the initial questionnaire. This re-questioning compilation and questioning continue until researcher obtains the narrow range of questions ( Wang et al. 2014) . Boeing can use this technique to improve their product and services. Boeing can create an online platform where its customers and people who have used their products or experienced their services should express where they are contented with and where they are not satisfied. This should be done after releasing of new product or services to the market to get the reviews of customers. After getting all the reviews, a group of experts is employed to review the complaints of its customer. Questioners are made for the customers to fill to record all their complaints ( Wang et al. 2014) . The expert’s re-questions the customers and compile the final response. Boeing will use the final responses obtained to better their products and services.
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Time Series Forecasting
This technique is a quantitative forecasting. This technique identifies trends by measuring data that a company gathers over time. The data required to be analyzed by this technique is obtained over any intervals that are yearly, monthly, weekly, daily: or longer. Irregular components, seasonal, cyclical, and trend make up time series. The trend components refer to progressive shifting of data over a certain period ( Wang et al., 2014) . It is usually depicted as a downward or upward sloping line representing decrease or increase in trends, respectively. Cyclic module lies below or above the trendline and repeats for not less than a year. The business cycle demonstrates business module ( Heizer, 2016) . Components that are Seasonal similar are comparable to cyclicals in their repetitive nature however they occur in single year periods. Boeing can use this model to identify trends in every year. This technique helps a company predict how the sales of services and goods. For instance, Boeing can establish that certain goods or services are in demand in a particular period whereas it is in low demand during a certain period. Experts should establish which period is best for the company to produce many goods and avail many services to its customers and when services or good are low in demand. Experts can establish this trends by obtaining data for daily, weekly, monthly and yearly and analyses the data and come up with a graph depicting the trend ( Wang et al., 2014) . The result obtained by experts is important because it helps Boeing know when they are expecting high sales. Knowing when to expecting high sales is important for Boeing so that they can maximize on this period to obtain maximum profit.
Scenario writing
In this technique, forecaster comes up with different outcomes based on different starting principles. Decision makers derive their decision on most likely outcome from various situation that the Boeing company has been a trough. This technique can be used by Boeing since it yields middle, worst and best options ( Heizer, 2016) .
Subjective Approach:
Permits forecasters to generate outcomes based on their feelings and thoughts. This technique uses brainstorming sessions to solve problems and generate ideas. This method is used when there are a time constraint and a decision need to be done ( Wang et al. 2014) . This technique is not the best technique that Boeing can uses since it may lead to many losses.
Impact of;
Production plans: since the beginning of a disaster in a company is poor production plan, Boeing Company should ensure budgeting is done in time to prevent lateness in planning or scheduling. Good production plan equals to good profit and company’s success ( Heizer, 2016) .
Master production schedules is a plan for separate supplies to be manufactured at a particular time ( Wang et al. 2014) . If there is no proper Master production schedule, the company may experience bottleneck.
Rough Cut Capacity Planning: RCCP is a model that provides a planner information on the meeting demand, capacity, and inventory ( Wang et al. 2014) . If wrong information is obtained, then the planner will have wrong information and may affect manufacturing of good and services.
Workforce size: If the workforce size is comprised of youth mainly, the company may experience an increase in work output unlike if the workforce is comprised of old people ( Heizer, 2016) . Youths mainly demand lesser pay compared to the old workforce.
Carrying inventory: if the carrying inventory is too much, then it may experience additional storage cost because the volume of goods is high this can cause the budget to increase ( Wang et al. 2014) . Also, the company will experience a shift in demands.
References
Heizer, J. (2016). Operations Management, 11/e . Pearson Education India.
Wang, J. W., Wang, H. F., Zhang, W. J., Ip, W. H., & Furuta, K. (2014). On a unified definition of the service system: What is its identity?. IEEE Systems Journal , 8 (3), 821-826.
