Identifies and evaluates the variance or deviation between the actual demand or sales order and the original forecast. By doing so, it helps determine the extent to which production plans need to be adjusted.

Once the variation is identified, analyze the root cause of the deviation. It involves investigating factors such as changes in market conditions, customer behavior, supply chain disruptions, or internal operational issues that led to the deviation from the forecast.

Based on the analysis of the variance and its root cause, makes adjustments to the production plans. It revises production quantities, reallocates resources, reschedules manufacturing activities, or makes changes to inventory levels to align with the revised forecast.

Includes functions that track KPIs such as production output, customer satisfaction, on-time delivery, and inventory levels to ensure that the adjusted plans are meeting the desired objectives.