Sales and Operations Planning (S&OP) …WHAT’S … MFG... · Organization to support S&OP process...
Transcript of Sales and Operations Planning (S&OP) …WHAT’S … MFG... · Organization to support S&OP process...
Sales and Operations Planning (S&OP)
…WHAT’S STOPPING YOU?
by…
Kaushik Dutta
Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
Agenda
2
Sales and Operations planning
10-step methodology
Key considerations
Summary
Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
S&OP … it’s all about ALIGNMENT
Vision
Goals
Strategies
Planning
Execution
Results
People (60%)
Process (30%)
Technology (10%)
Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
10-step deployment methodology
1. Decide to do it
2. Form the design team
3. Educate everyone
4. Make a calendar
5. Design the process
6. Hold the first S&OP meeting cycle
7. Refine the process
8. Document the process
9. Train the users
10. Link S&OP to ERP
Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
S&OP Process acceptance …Ground Reality
1
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3
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9
Source: AMR Research
Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
Key consideration…
Goal clarity
Alignment to Strategy
Performance Measurement Metrics
Decision making
Forecasting
Connecting planning to execution
Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
Goal Clarity…
Demand
Supply Product
Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
Alignment to strategy…
S&OP objectives
Supply Chain Strategy
Business Goals
Pricing
Sales forecasting
Demand Forecasting
Demand Shaping
Inventory Management
Managing Supplies
Distribution Planning
Manufacturing
Product Differentiation
Customer Service
Cost Reduction
Profitability
Market Share
Outsourcing
Sustainability
Product
Innovation
Growth
Acquisition
Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
Performance Measurement Metrics…
Demand
Customer Service
Inventory
Financial
Forecast accuracy
On time in Full
Days of Inventory
Inventory Turns
Return on Assets
Revenue
Profitability
Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
Decision making…
Business Model Governance model
Globalization Span of Control
Supply Chain objective S&OP processes
Organization to support S&OP process People
Metrics Data, Details and Tools
Automate existing process or Change for better
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Forecasting…
Choosing the right forecasting technique – Time Series, Regression, Judgmental
Choosing the forecast horizon to focus
Choosing the right level of dimension to forecast
Forecast definition – to book, to confirm, to produce, to move, to deliver, to invoice
Managing backlogs and carryovers
Marketing cycle Sales Cycle Forecasting cycle Order booking cycle
Communication, Awareness, Rewards and Recognition for Forecast Accuracy
Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
Connecting Planning to Execution…
Supply Chain Strategy
Product Family Country 3 months – 6 months
Demand Constraints
Economy, Growth, Pricing, Trends &
Seasonality, Market
Distribution Constraints
Cost and Availability, Mode mix, Make or
Store or Buy
Production Constraints
Product mix
Supply Constraints
Cost, Availability, Supply mix
Supply Chain Planning (Tactical)
Product Group Zone/State/District 1 – 3 months
Demand constraints
Shipment, Price, Promotions
Distribution Constraints
Mode availability, Lot sizing as per mode, Safety Stock
Workcenter Constraints Shutdowns, Productivity
Yield & Utilization
Supply Constraints
Planned Availability
Supply chain planning (Operational)
Product/
SKU
Order booking
Open Orders
WIP
Productivity
Queue Times
Sequencing
Actual transport and supply availability
Customer 1 day – 1 month
Orders/
Shipment
Requested date/
Promised Date
Open Orders
/Production orders
/Inventory
Master data
Planned start
ERP
Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
Summary …Laggards Vs Best-in-class
People
Goal
Alignment to Strategy
Process
Decision Making
Performance Measurement Metrics
Technology
Forecasting
Connecting Planning to Execution
Laggards Average Best in Class
Source: Aberdeen Group
Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
A successful S&OP – … achieving RESULTS
Source: Aberdeen Group
Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
By…
Thank you.