The forecasting methodology used would be analyzed using the check sheet option to determine how the forecasting can be made more effective instead of simply employing the historic cost based forecasting method so that waste and cost minimizing safety stock level can be established.
The requirements that need to be fulfilled in order to implement the TQM mythology pertain to first analyzing the current processes for excess costs and wastage specific to the procurement function, and the inbound logistics processes. Access would be needed to the past records delivery by the suppliers for analysis of what is causing the delays. The cost and wastage of carrying excess and low levels of safety stock then need to be reduced which would require access to historical records of forecasting and inventory management. This proper analysis through the value chain approach can help the organizing make their procurement (delivery form suppliers), more efficient bringing it to the level of 95 percent. This can also aid in the implementation of a customer derived for casting plans which can help in effectively forecasting at the real time rates.