1、Section 6,Implementing the Sales & Operations Planning Process with ease and with minimum risk to your company,Session Six Summary,The Proven Paths Implementing Sales & Operations Planning Successful Characteristics of S&OP Sample S&OP Policy to use as a template Successful S&OP meeting characterist
2、ics Dos & Donts of S&OP,Performance Measurement, Quality & Continuous Improvement through Lean Thinking,Forecasting, Demand Management and New Product Development,Purchasing,Warehousing,Strategic Planning,Business Planning,Sales and Operations Planning,Master Scheduling,Detailed Material Planning,De
3、tailed Planning & Execution Processes,Execution,Resource Requirements Planning,Rough Cut Capacity Planning,Detailed Capacity Planning,Bills of Material,Routings,Inventory Balances,Open Orders,History,Suppliers,Customers,Data Base,General Ledger,Accounts Receivable,Accounts Payable,Fixed Assets,Budge
4、ting,Costings,Financials,ActivityBased Costing,S&OP and Associated Processes,The Monthly S&OP Process,Step #1 Data Gathering,End of Month,Statistical Forecasts Sales & Marketing Inputs,Step #5 Executive S&OP Meeting,Decisions AuthorizedGame Plan,Step #4 Partnership Meeting,Recommendations &Agenda fo
5、r Exec Meeting3rd-pass time phased plan(consensus, alternatives, what-ifs),Step #2 Demand Planning,Management Forecast1st-pass time phased plan (with new forecast),Step #3 Supply Planning,Capacity constraints2nd-pass time phased plan(with new production plan),The Proven Path,Implementing Sales & Ope
6、rations Planning,1. Educate management 2. Assign responsibilities for design / implementation 3. Define families, units of measure, planning horizon, formats, source of data 4. Planned capacity by family (based on demonstrated capacity) 5. Agree on appropriate attendees and schedule of meetings 6. A
7、pprove policy, guidelines, measurements and accountabilities 7. Establish agenda 8. Review, prepare and publish data prior to meeting(s) 9. Review alternatives and decide 10. Publish results (actions, responsibilities and due dates),Characteristics of Successful Sales & Operations Planning,Documente
8、d procedure including defined roles and responsibilities Education / understanding Business leadership involvement Participation of appropriate organizational levels and functions (maximize communication) Family group definition highlights appropriate issues Pre-meeting data review & preparation (ma
9、intain meaningful information) Strong meeting leadership and facilitation Decision-making change management (what if?) Conflict resolution Consensus development (team building) Linking execution to strategy Running the business while balancing supply & demand Accurate / realistic / timely data Proce
10、ss (business) under control Ongoing realistic improvement through monitoring of metrics,Sample Sales & Operations Planning Policy,Definition:The function of setting an overall level of sales & manufacturing output expressed in families, to form a company game plan. Its prime purpose is to establish
11、rates of activity that will achieve managements objectives. These include supporting customer service objectives, meeting revenue goals and raising or lowering inventories and/or backlogs while usually attempting to keep the production work force relatively stable.1. The Sales & Operations Planning
12、Meeting will be held at 2:30 PM on the first Thursday of each fiscal month. This meeting will be chaired by the President (General Manager). Attendees will include:Vice President Sales/Marketing P & IC Manager Materials ManagerVice President Manufacturing Purchasing ManagerVice President Finance For
13、ecasting ManagerVice President R&D Manufacturing Manager 2. Considerations will include: market strategies, inventory goals, current forecasts and backlogs, new product strategies, division profit plans, current status and capacity. Plans will be developed for a running two-year period. The first ye
14、ar will be divided into twelve monthly periods. The second year will be planned by quarters. The Plan will be distributed to all managers and supervisors under the signature of the President (General Manager). 3. The family groupings of product for the Plans will be as follows:(For most companies, t
15、here should be between 5 and 15 family groupings). 4. Capacity plans will be developed against these plans for the critical departments and work centers in the company and at key suppliers. 5. Demonstrated capacity will be compared with required capacity using the following techniques:a. Monthly dol
16、lars of shipmentb. Monthly units of outputc. Rough Cut Capacity Planning Labor hours Critical resources Purchasing - key suppliers 6. Any critical resource whose required capacity varies from its demonstrated capacity by more than +/- 5% must be reviewed for action. 7. Approval for required actions
17、is desirable before the meeting closes, keeping in mind that harmony is desired, but consensus is required. 8. The resulting Sales and Production Plans will be used as input to the following:a. Weekly/monthly shipping objectivesb. Projected profitc. Projected cash flow and inventoriesd. Operating bu
18、dgetse. Material and labor budgetsf. Setting boundaries for the Master Schedule 9. The goal is to meet the Sales Plan and the Production Plan by product family on a monthly basis, within stated tolerance.The following signatures represent approval of the above policy:PresidentVice President Sales/Ma
19、rketingVice President ManufacturingVice President FinanceVice President R&D,Characteristics of a Good Meeting,1. The “atmosphere,“ which can be sensed in a few minutes of observation, tends to be informal, comfortable and relaxed. There are no obvious tensions. It is a working atmosphere in which pe
20、ople are involved and interested. There are no signs of boredom. 2. There is a lot of discussion in which virtually everyone participates, but it remains pertinent to the task of the group. If the discussion gets off the subject, someone will bring it back in short order.3. The task or the objective
21、 of the group is well understood and accepted by the members. There will have been free discussion of the objective at some point until it was formulated in such a way that the members of the group could commit themselves to it.4. The members listen to each other! The discussion does not have the qu
22、ality of jumping from one idea to another unrelated one. Every idea is given a hearing. People do not appear to be afraid of being foolish by putting forth a creative thought, even if it seems fairly extreme.,5. There is disagreement. The group is comfortable with this and shows no signs of having t
23、o avoid conflict or to keep everything on a plane of sweetness and light. Disagreements are not suppressed or overridden by premature group action. The reasons are carefully examined and the group seeks to resolve them rather than to dominate the dissenter.On the other hand, there is not “tyranny of
24、 the minority.“ Individuals who disagree do not appear to be trying to dominate the group or to express hostility. Their disagreement is an expression of a genuine difference of opinion, and they expect a hearing in order that a solution may be found. Sometimes there are basic disagreements which ca
25、nnot be resolved. The group finds it possible to live with them, accepting them but not permitting them to block its efforts. Under some conditions action will be deferred to permit further study of an issue between the members. On other occasions, where the disagreement cannot be resolved and actio
26、n is necessary, it will be taken but with open caution and recognition that the action may be subject to later reconsideration.,Characteristics of a Good Meeting (continued),Characteristics of a Good Meeting (continued),6. Most decisions are reached by a kind of consensus in which it is clear that e
27、verybody is in general agreement and willing to go along. However, there is little tendency for individuals who oppose the action to keep their opposition private and thus let an apparent consensus mask real disagreement. Formal voting is at a minimum; the group does not accept a simple majority as
28、a proper basis for action. 7. Criticism is frequent, frank and relatively comfortable. There is little evidence of personal attack, either openly or in a hidden fashion. The criticism has a constructive flavor in that it is oriented toward removing an obstacle that faces the group and prevents it fr
29、om getting the job done. 8. People are free in expressing their feelings as well as their ideas, both on the problem and on the groups operation. There is little pussyfooting, there are few “hidden agendas.“ Everybody appears to know quite well how everybody else feels about any matter under discuss
30、ion.9. When action is taken, clear assignments are made and accepted.,10. The chairman of the group does not dominate it nor does the group defer unduly to him. As one observes the activity, it is clear that the leadership shifts from time to time, depending on the circumstances. Different members,
31、because of their knowledge or experience, are in a position at various times to act as “resources“ for the group. The members utilize them in this way and they occupy leadership roles while they are thus being used. There is little evidence of a struggle for power as the group operates. The issue is
32、 not who controls but how to get the job done.11. The group is self-conscious about its own operations. Frequently it will stop to examine how well it is doing or what may be interfering with its operation. The problem may be a matter of procedure, or it may be an individual whose behavior is interf
33、ering with the accomplishments of the groups objectives. Whatever it is, it gets open discussion until a solution is found.,Characteristics of a Good Meeting (continued),The Human Side of Enterprise Douglas McGregor,Dos of S&OP, Identify and educate the appropriate participants Clearly assign roles
34、and responsibilities Define families, horizons, formats, and sources of data Publish written procedure Clearly define performance measurements Maintain and honor a 6 - 12 month rolling schedule of meeting dates Review, prepare, and publish all data, proposals, and a timedagenda prior to any meeting
35、Debate the forecast Monitor and consider demonstrated capacityReview the impact of product commercialization Come to any meeting prepared to act and decide Document and review assumptions Look for opportunities for continuous improvement A formal critique of every meeting Publish results quickly and
36、 widely,Donts of S&OP, Second-guess the forecast Come to a meeting unprepared Bring surprises to a meeting Focus on the past or near term issues Attempt to manage customer, product, or weekly detail Involve too many people in the meetings Wait to react to problems Be afraid to base decision on uncer
37、tain future projections,Section 7,Materials Requirement Planning,Session Seven Summary,Fundamentals of Material Requirements Planning The “Master” of MRP and other schedules The importance of Bills of Material The Role of Planners,Performance Measurement, Quality & Continuous Improvement through Lea
38、n Thinking,Forecasting, Demand Management and New Product Development,Purchasing,Warehousing,Strategic Planning,Business Planning,Sales and Operations Planning,Master Scheduling,Detailed Material Planning,Detailed Planning & Execution Processes,Execution,Resource Requirements Planning,Rough Cut Capa
39、city Planning,Detailed Capacity Planning,Bills of Material,Routings,Inventory Balances,Open Orders,History,Suppliers,Customers,Data Base,General Ledger,Accounts Receivable,Accounts Payable,Fixed Assets,Budgeting,Costings,Financials,ActivityBased Costing,S&OP and Associated Processes,Fundamentals Of
40、MRP,Valid master schedule Accurate bills of material Inventory record accuracy Material requirements plan Accurate scheduled receipts Correct item master data information,MPS Calculation,1,2,3,4,5,6,7,Forecast,Customer orders,Projected Balance,Available to Promise,MPS at Start,10,10,10,10,On hand =
41、30,Lot size = 50,50,MPS at Receipt,Lead Time = 1 week,Safety Stock = 1 week,8,20,20,20,20,20,10,50,40,20,50,30,10,50,50,50,The BOM Creates Inventory,End Item,Purchased Item,Purchased Item,Purchased Item,Manufactured Item,Purchased Item,Purchased Item,Lead Time = 5 days,LT = 10 days,LT = 10 days,LT =
42、 5 days,LT = 1 day,LT = 14 days,LT = 60 days,Material Requirements Planning (MRP),The Role Of The Planner,1. Execute policies & procedures 2. Review messages on MRP reports 3. Communicate 4. Analyse & make decisions 5. Item master data 6. Obtain feedback 7. Simulation,Section 8,Inventory Records and
43、 other Critical Base Data that enable the software package to simulate reality & provide action messages to personnel,Session Eight Summary,Inventory Record Accuracy The 4 Step approach to Inventory Accuracy Other Critical Data areas,Performance Measurement, Quality & Continuous Improvement through
44、Lean Thinking,Forecasting, Demand Management and New Product Development,Purchasing,Warehousing,Strategic Planning,Business Planning,Sales and Operations Planning,Master Scheduling,Detailed Material Planning,Detailed Planning & Execution Processes,Execution,Resource Requirements Planning,Rough Cut C
45、apacity Planning,Detailed Capacity Planning,Bills of Material,Routings,Inventory Balances,Open Orders,History,Suppliers,Customers,Data Base,General Ledger,Accounts Receivable,Accounts Payable,Fixed Assets,Budgeting,Costings,Financials,ActivityBased Costing,S&OP and Associated Processes,What Are Inve
46、ntory Records?,A statement of what stock is on hand for a specific item By location Showing allocation detail,Why Are Records Inaccurate?,Responsibility vs Accountability Policies and Procedures Warehouse layout Discipline and focus BOMs and backflushing Timing Software,The Four Step Approach,Design
47、 and preparation Introduce control group counting Load accurate records Introduce cycle counting,IBM Requires 3 Basic Things,People who understand the system An accurate, complete data foundation The right enterprise software,IBM System Logic,At the core of an IBM System is a set of Computer Logic t
48、hat Asks 3 Basic Questions:What are we going to make?What does it take to make it?What do we have?,IBM System Logic,By Addressing these 3 questions, the system then answers a fourth:What do we need and When?,A Solid Data Foundation Must,Represent the manufacturing process Represent the products we s
49、ell and our strategies and plans for satisfying customers Be understood by and satisfy all users Be complete and accurate Be supported by good change control practice,MRP Process,Master production schedule(IMD) Bills of material Inventory records Material requirements planning(IMD) Material plan Manufacturing plan,BOMs for MRP,Product based Plans for matched sets of components MRP needs BOMs to be: Complete Accurate & integrated Properly structured,
