Upload
steelwedge
View
1.142
Download
2
Tags:
Embed Size (px)
DESCRIPTION
Sales & Operations Planning(S&OP):How to Make It Work - By Steel wedge software Best Practices Leadership forum Team
Citation preview
WebEx technical support: (866) 779-3239Please follow instructions on your screen to dial via telephone.
Don’t see instructions to dial by phone???Click the info tab at the top left hand of your screen to view instructions again.
Welcome!
S&OP: How to make it WorkJanuary 22, 2008 10AM Pacific, 1PM Eastern
Today’s Speakers:Mr. Tom Wallace, Author and Educator Chris Givens, VP Business Development Steelwedge Software
Tom Wallace & Bob Stahl www.tfwallace.com
Sales & Operations Planning:How to Make It Work
Sales & Operations Planning:How to Make It Work
A Webcast for Steelwedgeby
Tom Wallace
January 22, 2008
Tom Wallace & Bob Stahl www.tfwallace.com
OverviewOverview
What It Isand
Where It Fits
Tom Wallace & Bob Stahl www.tfwallace.com
The Four FundamentalsThe Four Fundamentals
Demand Supply
Volume
Mix
•How Much?•Rates•The Big Picture•Families•Strategy/Policy/Risk•Monthly/out to 36 Mos
•Which Ones?•Timing/Sequence•The Details•Products•Tactics/Execution•Weekly/Daily 1-3 Mos
Tom Wallace & Bob Stahl www.tfwallace.com
Sales & Operations PlanningSales & Operations Planning
Demand Supply
Volume
Mix
Executive S&OP
Master SchedulingSupplier and Plant Scheduling
Distribution Scheduling
Demand Planning/Forecasting
Supply (Capacity) Planning
Tom Wallace & Bob Stahl www.tfwallace.com
More Terminology Changes?More Terminology Changes?
Sales & Operations Planning maybecome the successor term to
ERP/MRPII
Thus the term Executive S&OP was developed – to set it apart.
Tom Wallace & Bob Stahl www.tfwallace.com
Where Executive S&OP Fits
Where Executive S&OP Fits
Strategic PlanningStrategic Planning
Detailed Planning, Scheduling &
Execution
Detailed Planning, Scheduling &
Execution
Business PlanningBusiness Planning
Disconnect!!!Disconnect!!!Executive S&OPExecutive S&OP
Tom Wallace & Bob Stahl www.tfwallace.com
The Leader of the Business Unit (General Manager, President, COO) Must be Hands-On with Executive S&OP:
1. Stewardship2. Leadership
• Break ties• Set high standards• Motivate
Monthly Time Commitment: 1.5
The Role of Top ManagementThe Role of Top Management
hours
Tom Wallace & Bob Stahl www.tfwallace.com
What if the Leader is not Involved?
What if the Leader is not Involved?
Attendance
Quality
Intensity
Results
Life Expectancy
Sustainability
Tom Wallace & Bob Stahl www.tfwallace.com
How to Make It WorkHow to Make It Work
The Implementation
Methodology
Tom Wallace & Bob Stahl www.tfwallace.com
Implementation: The Real IssueImplementation: The Real Issue
Understanding S&OP is simple.
The hard part is . . .
Behavior Change changing the way we do our jobs.
“The hard stuff is the soft stuff.”
Tom Wallace & Bob Stahl www.tfwallace.com
The ABC’s of ImplementationThe ABC’s of
Implementation
• C = Computer
• B = Data
• A = People
Tom Wallace & Bob Stahl www.tfwallace.com
Implementing Executive S&OP Is Different
Implementing Executive S&OP Is Different
Active, Hands-on Participation by theLeader and Staff
The leader of the business (president,
COO, CEO, general manager) must provide:• Support• Funding• Commitment• Leadership
So what’s new?
Each and Every Month
Tom Wallace & Bob Stahl www.tfwallace.com
Implementing Executive S&OP Is Different
Implementing Executive S&OP Is Different
• Highly focused on Top Management
• Relatively few people
• Low cost/high impact
Tom Wallace & Bob Stahl www.tfwallace.com
Implementation PrinciplesImplementation Principles
• Implementation begins and ends with the Leader of the business
• “Hold the high ground” and success will almost always follow
• “Build it and they will come” carries a low probability for success
Tom Wallace & Bob Stahl www.tfwallace.com
Implementation AlternativesImplementation Alternatives
“Build it and they will come” – design it first, get the mechanics working, and then attempt to sell it to top management
=Low probability for success
“Hold the high ground” – involve top management at the very outset of the implementation, and throughout
=High probability for success
Tom Wallace & Bob Stahl www.tfwallace.com
Implementation PathImplementation Path
1 2 3 4 5 6 7 8 9Months
Bu
sin
ess
Imp
rovem
en
t
Phase IPhase IPreparation
Phase IIPhase IIExpansion
Live PilotGo/No-Go #2
Phase IIIPhase III$$$
Integration
ExecutiveBriefing
Go/No-Go #1
KickoffSession
Low Risk & Low Cost
Month 1•Assignment of Responsibility
•Kickoff Education & Planning
•Development of Project Schedule
•Families & Sub-Families (Pilot Family)
•Data Definitions, Sources & Displays
Month 1•Assignment of Responsibility
•Kickoff Education & Planning
•Development of Project Schedule
•Families & Sub-Families (Pilot Family)
•Data Definitions, Sources & Displays
Month 3•Pilot Demo Preparation
& Execution
Go/No-Go Decision #2
Month 3•Pilot Demo Preparation
& Execution
Go/No-Go Decision #2
Month 2•Demand Planning Processes & Data Feeds
•Supply Planning Processes & Data Feeds
Month 2•Demand Planning Processes & Data Feeds
•Supply Planning Processes & Data FeedsExecutive Briefing& Go/No-Go Decision #1
Executive Briefing& Go/No-Go Decision #1
Phase IPhase IPreparation
Phase IIPhase IIExpansion
Phase IIIPhase III$$$
Integration
Months 4 – 6 • Add All Product Families• Full Supply Planning• Limited Financials
Months 4 – 6 • Add All Product Families• Full Supply Planning• Limited Financials
Months 7-9• Full Financial Integration•Institutionalize the Process
Months 7-9• Full Financial Integration•Institutionalize the Process
Tom Wallace & Bob Stahl www.tfwallace.com
Three Levels of CommitmentThree Levels of Commitment
• Uninformed (before Go/No-go #1)
Boss: “Okay, let’s do an Executive Briefing.”
• Semi-informed (after Briefing: Go/No-go #1)
Boss: “Okay, let’s do a Live Pilot”
• Fully informed (after Pilot: Go/No-go #2)
Boss: “Okay, let’s go to full cutover.”
Tom Wallace & Bob Stahl www.tfwallace.com
Implementation RolesImplementation Roles
Roles:
• Executive Champion• Design Team (Core Team, Project
Team)
• Design Team Leader
• S&OP Expert
Tom Wallace & Bob Stahl www.tfwallace.com
Success RequiresSuccess RequiresDesign Team’s Job:
• Defined set of practices (What, How, & Who)
• Accurate, timely, & believed data
Leadership’s Job:
• High discipline, Clear accountability
• Constant improvement
• Changed performance measures
• Behavior change
Tom Wallace & Bob Stahl www.tfwallace.com
The Future of S&OP: Growth Factors
The Future of S&OP: Growth Factors
• Success breeds success• Lean Manufacturing and S&OP• Globalization• New users outside traditional manufacturing• S&OP specific software• Greater financial integration and simulation• A growing presence in the executive suite
Tom Wallace & Bob Stahl www.tfwallace.com
Thanks for ListeningThanks for Listening
Go to www.tfwallace.com for:
• Copy of today’s slides
• Periodic newsletter
• White papers
• Books and videos