Forecasters put hours into creating models focused on the most specific and careful details. How is it, then, that they are not always accurate? There are a number of mistakes forecasters make that hold construction, oil and gas, manufacturing, aerospace, and other organizations back from reaching their full potential. Many of the most common job cost forecasting mistakes can be avoided, and here’s how:
Forecasting Mistake #1: Relying On Linear Forecasting
Most organizations use linear forecasting, which was the old way of doing things. Projects change so much in a given week, month, year, that linear forecasting is no longer the best solution. When you consider early fixed costs, changes in production rates, and other influences, it becomes apparent that linear forecasting doesn’t take into account that a project is a living, changing thing.
Forecasting Mistake #2: Not Forecasting Consistently
Companies don’t typically forecast consistently. This is typically the case…
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