This lesson shows how you can use Forecast Pro’s FVA reporting to understand where your forecasting process is adding value and improving forecast accuracy. The Forecast Value Add (FVA) view is designed to show the accuracy and value-add of each step in your forecasting process for the prior forecasting period.
The first step in your process is generating your baseline forecast. Typically, the baseline forecast is the statistical forecast. This baseline forecast may then be updated with overrides. The FVA report shows if those overrides were more or less accurate than the baseline forecast. It also shows if the net impact of those overrides, as reflected in the final forecast, was positive or negative. If your final forecast was more accurate than the baseline forecast, your process added value. If not, you may want to understand how to adjust your process so that it is improving baseline forecasts instead of making the forecast less accurate.
You may watch Forecast Value Add (FVA) Reporting (video) or click the right arrow button for a written tour of Forecast Pro’s FVA reporting capabilities.