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1

Stefano Jr; Wilson Principal, Oliver Wight (Educator, Coach Management)

© Oliver Wight International 2

Coach, mentor and educator: - for World Class Best Practices (Class A) implementations

in multiple businesses achieving Sustainable High Performance and Profitability.

Over 15 years as Oliver Wight Principal

33 years of diverse industry experience

Business Administration degree: - specialization in Business

Management and a Master’s degree from UNICAMP/FEM, where he

is also a researcher.

Articles authored: - Sustainable High-Performance and

Profitability; Sales and Operations Planning the Impact in the

Integrated Business Management; How to Drive the Organization to

Sustainable High-Performance and Profitability; Integrated Supply

Chain Management – the Lost Art.

wstefano@oliverwight.com / www.oliverwight-americas.com

+55.19.99788-4638 / +1.603.526-5800

S&OP / IBP Sales and Operations Planning /

Integrated Business Planning

Beginning or Restructuring a S&OP Process

STEFANO Jr, Wilson

Principal

4th S&OP Conference Informa Group

© Oliver Wight International 4

“Muito além de um projeto, uma mudança cultural para

transformar resultados de forma colaborativa em

mercados complexos e dinânicos.”

Learn – Share - Advance

© Oliver Wight International 5

The Integrated Business Model and the S&OP / IBP

S&OP / IBP

Key Principles

Evolution

Fatores que podem impedir o sucesso

How to Assess the Maturity Level

How to Begins or Restructures a S&OP / IBP process

Agenda

The Integrated Business Model Integrates longer-term strategy to shorter term execution

© Oliver Wight International 6

MANAGEMENT

BUSINESS

REVIEW

Supply Point

Management

Supplier

Management

SUPPLY REVIEW

Supply Chain

Management

Procurement Management

Market

Management

Demand

Management

Sales

Management

DEMAND REVIEW

Portfolio

Management

Project

Management

Resource

Management

PRODUCT MANAGEMENT

REVIEW

STRATEGY BUSINESS PLAN PERFORMANCE

“Below the Line”

Supporting

Processes

“Execution”

“Above the Line”

Integrated

Business Planning

S&OP / IBP

S&OP/IBP Is a Common Sense Process

for Aligning Company Plans Every Month

Demand Review

Product Management

Review

Supply Review

Management

Business

Review

1

2

3

4

5

© Oliver Wight International 8

Key Principles:

Synchronize all functional plans

Align S&OP/IBP plans with strategy

Connect S&OP/IBP plans to detail plans

Close gaps between goals and actual

Review performance to date and projected performance

Re-plan as a result of change

Executive involvement in process

Decision making process

Continuous, ongoing process

Use S&OP/IBP plans to make annual planning a non-event

Integrated Business Planning –”5 Step” Principles to Keep in Mind

S&OP Integrated Business Planning

Decades of Innovation Evolution

IBP

S&OP

70s early

80s mid

80s late

80s late

90s early

2000s 2000 to present

Production Planning Balancing

Supply & Demand

and Inventory Control

Financial Integration

New Product

Integration

Supply Chain

Collaboration (CPFR)

Scenario Planning

and Strategy

Deployment

Sales & Operations Planning

OWI-01

A falta de apoio e participação pela alta administração

A falta de conhecimento sobre as melhores práticas, deixando de

evidenciar as oportunidades

Um processo de S&OP / IBP muito operacional e considerado

implementado pela organização

Falta de disciplina na execução do processo de S&OP / IBP

Falta de um coordenador tempo integral durante o amadurecimento

do processo de S&OP / IBP

A carência dos processo de curto prazo que suportam o S&OP / IBP

Foco no curto prazo pela alta administração

... Audience Brainstorming ???

Fatores que podem impedir o sucesso do

S&OP / IBP

© Oliver Wight International 2012 10

How to Assess Your Maturity

Level?

Industry Recognized Best Practice Checklist

Key Reference

Behaviors Tools / Data

Process

People Organization / Culture

Products & Services

Demand

Strategic Planning

External Sourcing

Internal Supply

Business Improvement

Managing &

Leading People

Supply Chain

IBP

© Oliver Wight International

Integrated Business Planning – Maturity

Full Integrated Business Planning Structural modelling; Some knowledge-based automation Customers Strategic alliances for long term horizon; shared gain Exploiting strategic opportunities through organization agility Process operates at all levels of the corporate structure

Advanced Integrated Business Planning Customer Experience Value Chain focus Optimization – scenario planning & modelling Strategically driven Reshapes to meet changing organization Shaped to operate at all levels of the corporate structure; Supply chain with established collaboration Continuous Integrated Reconciliation Risks modelled, mitigated and managed through the process

Capable Integrated Business Planning Integrated Business plans with scenario planning Process used to create Annual Business Plan Business decisions not functional; Team working Formal way to run the business; this is the decision making process Risk assessed This process helps to shape optimal organization structure Bottom up challenges the Top Down (Strategy, Business Plan and directives)

Foundation Process All elements defined with correct accountability, KPI’s and structure Focus is demand /supply tactical balancing Initiate integrated supply chain KPI’s Challenging behavior s but not yet team working

Disconnected Management Processes Traditional management meeting focused on the past Annual budgeting process with poor basis for forward projections Functional/silo management – few/unaligned objectives & measures Defensive functional behaviors

How to Begins or Restructures

a S&OP / IBP process

Oliver Wight Proven Path Beginning or Restructuring a S&OP / IBP process

15 © Oliver Wight International

Determine Value

Leader Education

Determine Plan Appoint Teams

Leadership Phase

Diagnostic

Fast Track Proven Path for IBP

Design Team Education

Management Business Review

Tool Integration

Product & Portfolio Review

Demand Review

Supply Review

Financial Appraisal

Integration Reconciliation

Pro

cess D

esig

n a

nd E

ducatio

n

Development Phase

Cycle 0

Tactical Strategic Decision Making

Implement the Process

Performance Measures

Assess Progress

Assess Progress

Document Results

.....

Aggregate to Detail Planning

Problem Prevention

Problem Solving

Improve Communications

Ownership Phase

Cycle 1-3 Cycle 4-6 Cycle 7-8 Cycle 9+

Keys to Successful Implementation

Successful Implementation

Embedding through coaching &

evolution

Leadership

Commit Resources

Education

Design

© Oliver Wight International 16

S&OP / IBP

Dissertação de Mestrado

(IBP&M / P&GIN)

UNICAMP / FEM

Wilson Stefano Junior

2013

Thank You!

STEFANO Jr, Wilson

Principal

wstefano@oliverwight.com

+55.19.99788-4638

“Simplicity is the ultimate sophistication”

Oliver Wight: - The man and the inspiration