Critical path method is used in planning the implementation of projects. It ensures that activities are finished on time. In this regard, the method helps identify the activities that are critical to the project such that if the activity on the critical path is delayed, the completion of the whole project is also delayed. A critical activity is found out by determining the earliest start time, latest start time, earliest finish time and the latest finish time. In this case, an activity is critical if its earliest start time equals latest start time and earliest finish time equals latest finish time. Earliest start time is the earliest time an activity can start being implemented given that other activities have not been delayed. Earliest finish time is obtained by summing earliest start time and time required to complete the activity. Latest finish time is the time that an activity can be finished given that there have been no delays on the project. Earliest start time is obtained by subtracting activity time from the latest finish time.
In the modern world, computer softwares are used in various sectors. This is mainly because of their accuracy. Computer softwares are used in solving ERP problems. However, there is a need to understand the conventional methods for various methods. First, understanding the conventional methods helps individuals to understand the differences in the various types of programs offered by the vendors. In this regard, people are able to select the best program that meets the needs of the company. It is important to note that not all programs work the same. In addition, individuals are able to avoid being exploited by sellers of the programs. Some vendors usually differentiate programs by their packaging. An individual who is not aware of conventional methods may end up paying more on a program that has no additional advantages.
It is not usually possible to come up with a very accurate forecast. This is because of the fact that the programs used are usually to very effective, the personnel using the programs are not very experienced or the data available is not accurate. What it means by learning to live with inaccurate forecasts is that organizations should continue forecasting even after a forecast has been made at a given time. The managers should evaluate the environment to find out whether it matches the forecast and if necessary, adjustments can be made where necessary. In this regard, both the managerial judgment and the forecast through statisticians are applied. Therefore there should be plans to deal with any deviations from the forecasts since it is expected that inaccuracies may be experienced when forecasting.
Aggregate sales ad operation planning process is usually used to plan for the coming year activities of an organization. It ensures that the resources of the organization are appropriately allocated. The first step in the process is forecasting demand. This determines the amount of goods and services that the customers are likely to buy. After this is determined, the supply is then planned for. In this regard, the resources of the organization are then planned for such that they aim at making the maximum supply given the demand. Therefore the resources in the organization such as money, human resources and time are planned for with an aim of meeting the forecasted demand. When the year starts, the production process starts as planned and the goods and services are supplied to the customers.
Inventory accuracy is a situation whereby the amount of inventory recorded as being available is actually the inventory that is available physically in the organizations’ supply chain. Inventory accuracy is important in avoiding disappointment of customers. This is when the organization thinks that goods are available for customers and the customer’s finds that there are no products to purchase. It also helps to avoid time wastage. The employees would be required to go and find out whether they can get raw materials to make more goods when it is realized that there are shortages. In addition, inventory accuracy ensures that there is no wastage of money. This is because when there are shortages, raw materials are bought at high prices and the organization uses more cash to make more goods. Inventory inaccuracy occurs when there are no set standards for the inventory levels in the warehouses. It can also occur when there is no routine count of the available inventory. When the systems of tracking inventory are not tested, inventory inaccuracy may result. Also when there is no proper recording of inventory, there may be inventory inaccuracy.
