Taking Action to Build Consensus and Resolve Conflict

Dave Hinchman - Deere & Company

Taking Action to Build Consensus and Resolve Conflict

Agenda

• Knowledge leveling

• Common conflicts

• Techniques to avoid conflict

• Key take-aways

• Questions

S&OP

Introductions

Dave HinchmanMgr., JD-QPS & OF IntegrationEnterprise Strategic QualityDeere & Company

Current: Leading JD Quality & Production System for Supply Chain, Order Fulfillment and Lean Manufacturing globally.

Previous Leadership positions: Operations, Mfg Engineering, Supply Management, IT SAP, Production Planning , and Order Fulfillment.

Lead & Teach: APICS CPIM across JD, Operations & Supply chain courses globally , APICS Corporate Advisory Board

Education: BS Industrial Engineering - Illinois , MBA Iowa, CPIM, JD Six Sigma Black Belt, Executive Education - MIT, Dartmouth, & Purdue

John Deere

1837….Started as a blacksmith shop

Integrity … Quality … Commitment … Innovation

Grand Detour, Illinois

John Deere Today

• Celebrated 175 years (2012)

• $37.8B revenue; 3.5 income (2013)

• Global expansion in BRIC countries

• 67,000 employees – almost half outside U.S.

• 74 manufacturing facilities in 16 countries

• Agriculture, turf, construction, forestry, power systems, parts, intelligent

solutions

Integrity … Quality … Commitment … Innovation

Our CustomersCommitted to those linked to the land

S&OP

• What conflicts are you experiencing in Sales and Operations Planning?

Common Conflicts

• Conflicting priorities

• Domination by one group

• Accountability

• Lack of attendance

• Timing of meetings

• Forecasts overstated

• Prod schedules under planned

What are some

techniques to avoid

conflict?

Differences in Focus – S&OP

Key – optimize business results, while achieving a prudent

balance between asset efficiency and customer

demand/availability.

Business Results

&

Asset Efficiency

Customer Demand

&

Availability

Differences in Focus – S&OP

Trade off Analytics

Conflicting Priority Exercise

- Place the star where the

focus current is and where

it should be

Trade Off Analytics

Where would you place the

star if you were:

– Marketing?

– Operations?

– Supply management?

– Finance?

What would the customer

want? Where do they fit in?

Trade Off Analytics

Key is to collectively agree as an S&OP Team on where

you currently are and where you need to be.

Role Play

• As a Partnership S&OP, team members need to understand what others on the team do that helps move the needle. – In doing so, it becomes clear as a group, what levers to pull and

the ramifications of those levers.

– Avoid domination by 1 group

• Simulation Game like Fresh Connections and trade roles (day in the life)

Attendance and Accountability

• Value in discussion for every group

• Metrics (KPI’s)

• Clear expectations in agenda (2-3 days prior)

• Top down driven

• Subs

– Huddle

Attendance and Accountability

• Track and trend attendance

• Capture action items

• Add virtual options; Video

Timing

• Timing of the meetings need to help and aid better decisions.

• One of our divisions had to rethink Partnership S&OP, its purpose, and where it best fit to support effective business decision making and leadership reporting.

Timing

Pre-business

review / segment

meetings

Demand /

inventory review

with OF Mgrs &

Finance

Pro

cess

Business Review

Meeting

Partnership

S&OP Meeting?

MRP Update?

FM

FM

Timing

Demand Meetings

Business

Review

(Financial

Plan)

Supply Meetings

(PS&OP

production plan

by month)

Pro

cess

FM

Demand Due Diligence Supply Due Diligence

Fin

al P

rop

ose

d

Ap

pro

ved

FM

Thu < FME

MRP

Calendar ExampleSun Mon Tues Wed Thurs Fri Sat

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19

Final annual

demand passed

to OF

20

21 22 23 24 25Pass Approved

to Finance &

System

Updates

26

Business

Review Meeting

27

28

Fiscal Month

End. Circle

Sunday.

29 30 31

Demand Process

Supply Process

ROW US/C

Inputs Due

PS&OP

Game - Demand Forecasting

If forecasts are overstated/production plan understand

– Out of the different cross-functional groups, who can do the best job forecasting their capabilities?

– Winner gets more emphasis or a predetermined prize.

– Promotes team building

Change Management

� Ask these questions:

- What’s working well?

- What’s not?- What do we need to improve on? - Have you made a business impact?

• Make it part of the strategic planning process• Review the key metrics (KPI’s) to ensure driving right

behavior• CI yearly review of the process and facilitate better buy in

from the cross functional team• Strive for Meeting excellence

Key Take Aways

What we hoped you got out of this…..

• Group focus – Trade off analytics

• Role play

• Attendance and accountability

• Timing

• Make it fun – Game of forecasting

• Change management

Questions?

Thank You