Trend Analysis

What Is Trend Analysis?

It is an attempt to predict the future from recent past events. It enables companies and individuals to make data-driven decisions. Trend Analysis is extremely important for companies choosing their direction for the future. 

What Are The Readings?

Trends! It can show you the direction of the market. Drilling down further, it explains certain deficiencies or reasons for growth. 

The question is, “how can this help me?” 

The answer is simple. Seeing that you had more waste from Line A compared to Line B is important. However, understanding the factors for this is imperative to company growth. Realizing that Line A uses older equipment and has not been serviced in months gives you more insight. Having the power to correct these issues are detrimental to increasing profits and the bottom line. 

Trend Strategy

#1

First is moving averages. You track two averages, one is a short-term average, and the second is a long-term average. Comparing these averages shows how your Lines performed in the past week versus the past month.

#2

Second is tracking overall sales. Watching what influences sales is critical. If you launch a promotion, you need to track if sales increase or decrease. Having a great promotion is one thing, but understanding why the promotion was great is another. Being able to duplicate it can lead to a long-term increase in revenue.

#3

Last is decreasing costs. This is accomplished by decreasing waste, stretching supplies, and increasing clarity. Decreasing waste is achieved by monitoring which Lines create the most waste. Documenting the steps taken by those Lines and then having corrective action. Stretching supplies is pretty simple. Once again, monitor which lines use the most product, document the steps needed. Calculate how much should be needed, and then implement corrective action. Lastly, increase clarity. Achieving this is complex. You need a comprehensive understanding of all departments of your business. Insights in sales, productivity, quality assurance, and many more is how you increase clarity. Clarity enables you to change bad habits, create good habits, and put the entire company on the same page. 

Make The Difference

The processes here are complex. Creating clarity, improving production, and implementing good habits is a full-time job, and often stretches many departments and levels of management. This is why most companies either fail or seek outside help. The ladder choice is most effective for creating lasting change and ensuring corrective action. So, where is your company headed?