Tag: forecast value added

Analytics
Mike Gilliland 0
Nice article on FVA now available online

What is Forecast Value Added? Please enhance your Valentine's Day with this treat offered up by the Journal of Business Forecasting. Eric Wilson's very nice discussion of Forecast Value Added, originally published in the Spring 2016 issue of JBF, is now available online: "What is Forecast Value Added?" Eric also

Advanced Analytics | Analytics
Mike Gilliland 0
Changing the paradigm for business forecasting (Part 8 of 12)

Typical Business Forecasting Process Let’s look at a typical business forecasting process. Historical data is fed into forecasting software which generates the "statistical" forecast. An analyst can review and override the forecast, which then goes into a more elaborate collaborative or consensus process for further adjustment. Many organizations also have

Mike Gilliland 0
IBF Scottsdale: FVA at Cardinal Health

Where is global warming when you need it? Throughout much of the southeast, life has been at a standstill since midday yesterday, when 2" of snow and 20oF temperatures brought civilization to its knees. If your life, or at least your forecasting career, is at a similar standstill, make plans to

Mike Gilliland 0
Fall forecasting events

If you need an excuse to get out of the office and perhaps learn a thing or two this fall, here are three upcoming events: Foresight Practitioner Conference: S&OP and Collaborative Forecasting (Columbus, OH, September 25-26) From the campus of Ohio State University, Foresight's editor Len Tashman and S&OP column

Mike Gilliland 0
The "avoidability" of forecast error (Part 4)

The Empirical Evidence Steve Morlidge presents results from two test datasets (the first with high levels of manual intervention, the second with intermittent demand patterns), intended to challenge the robustness of the avoidability principle. The first dataset contained one year of weekly forecasts for 124 product SKUs at a fast-moving consumer

Mike Gilliland 0
Forecast Value Added Q&A (Part 7)

Mercifully, we have reached the final installment of Q&A from the June 20 Foresight-SAS webinar, "Forecast Value Added: A Reality Check on Forecasting Practices." As a reminder, a recording of the webinar is available for on-demand review, and the Foresight article (upon which the webinar was based) is available for free

Mike Gilliland 0
Forecast Value Added Q&A (Part 6)

Q: ­Is the MAPE of the naive forecast the basis for understanding the forecastability of the behavior?  Or are there other more in depth ways to measure the forecastability of a behavior? MAPE of the naive forecast indicates the worst you should be able to forecast the behavior. You can

Mike Gilliland 0
Forecast Value Added Q&A (Part 5)

Q: ­Company always try to forecast 12 or 24m ahead. Whether we should track accuracy of 1m/3m/ 6m or x month forecast, does that depend on lead time?  How to determine out of these 12/24 months, which month should we track accuracy? Correct, forecast performance is usually evaluated against the

Mike Gilliland 0
Forecast Value Added Q&A (Part 4)

Q: ­What is a legitimate goal to expect from your FVA...5%, 10%? Q: ­How do we set Target FVA which Forecasters can drive towards?­ The appropriate goal is to do no worse than a naive model, that is FVA ≥ 0. Sometimes, especially over short periods of time, you may

Mike Gilliland 0
Forecast Value Added Q&A (Part 3)

With this Q&A Part 3, we are about halfway through the questions submitted during the FVA webinar. We did over 15 minutes of live Q&A at the end of the webinar, and covered many of the submitted questions at that time, however I always prefer to issue complete written responses to

Mike Gilliland 0
Forecast Value Added Q&A (Part 2)

Q: Could you send me the presentation? With audio if possible. If you'd like a pdf of the slides, email me directly: mike.gilliland@sas.com For the audio, the webinar recording is available for free on-demand review: FVA: A Reality Check on Forecasting Practices Q: Can we get the case study referred here

Mike Gilliland 0
Forecast Value Added Q&A (Part 1)

As promised in yesterday's Foresight-SAS sponsored webinar on "Forecast Value Added: A Reality Check on Forecasting Practices," here is Part 1 of my written response to the over 25 questions that were submitted during the event. (Note: It may take a week or so to get through all of them.)

Mike Gilliland 0
Forecasting webinars

"Why Should I Trust Your Forecasts?" now available on-demand The SAS / Foresight webinar series had a rousing kickoff on April 24, with Paul Goodwin asking (and answering) the question, "Why Should I Trust Your Forecasts?" The webinar is now available for free on-demand review . Be sure to stick

Mike Gilliland 0
How to make weather forecasting look good

Compare it to predicting the economy. So concludes an ABC News Australia story by finance reporter Sue Lannin, entitled "Economic forecasts no better than a random walk." The story covers a recent apology by the International Monetary Fund over its estimates for troubled European nations, and an admission by the

Mike Gilliland 0
Deadly sin #5: Senior management meddling

The March 28 edition of APICS extra features an article by Fred Tolbert on "The Seven Deadly Sins of Sales Forecasting." Although I have some objection to his Deadly Sin #1: Using Shipment History (and will discuss the objection in a forthcoming guest-post on the Institute of Business Forecasting blog),