FVA Rattling Bones in the Orthopaedic Devices Industry

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No, BONEZONE is not the website of wayward legislators. It is, however, a trade journal of the orthopaedic devices industry, and the Summer 2011 issue features a nice mention of Forecast Value Added (FVA) analysis in an article by Tom Wallace.

In "Forecasting: It's Getting Better," Tom refers to FVA as a "breakthrough technique," and "the Lean Manufacturing approach applied to Sales Forecasting." He goes on to say:

This is a superb tool to segment the products to be forecasted, to put some “on autopilot” by using naïve forecasts, and then devote more time, effort and IQ to the ones that respond to superior forecast models and the other elements [like collaboration with field sales and marketing].

So if you won't take it from me, please take it from a trustworthy guy like Tom Wallace, and give FVA analysis a try. (And if you do try it at your organization, I invite you to share your findings in a guest post on The BFD.)

APICS & IBF Sales and Operations Planning Conference

Join Tom and me next week in Chicago, where Tom chairs the APICS & IBF Best of the Best S&OP Conference. I'll be presenting on "Lean Forecasting" with Mark Hahn, Sales Forecasting and Analysis at Amway. Also looking forward to Sean Shubert and Diana Mark's presentation on business unit / corporate collaboration, which will describe how FVA analysis is helping drive forecasting performance gains at Newell Rubbermaid. (Preview abstracts here.)

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Mike Gilliland

Product Marketing Manager

Michael Gilliland is author of The Business Forecasting Deal (the book), and editor of Business Forecasting: Practical Problems and Solutions. He is a longtime business forecasting practitioner, and currently Product Marketing Manager for SAS Forecasting software. Mike serves on the Board of Directors for the International Institute of Forecasters, and received the 2017 Lifetime Achievement in Business Forecast award from the Institute of Business Forecasting. He initiated The Business Forecasting Deal (the blog) to help expose the seamy underbelly of forecasting practice, and to provide practical solutions to its most vexing problems.

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