Analyze a Weekly Cash Forecast Miss
Classify cash forecast variance and convert it into an assumption update.
A weekly cash forecast expected $720,000 ending cash. Actual ending cash was $574,000. The team needs to explain the $146,000 miss and improve the next forecast. PDCA: Plan the forecast, Do the week, Check variance, Act on the next assumption. The common trap is to label the forecast inaccurate and move on. That skips the Act step, so the same miss can repeat next week. Before The forecast miss is reported as one negative number, and each function defends its own inputs. After The miss is split into timing, permanent, and process variance, with one assumption update assigned to each.…
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