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Marietta Corporation
Dan KeefeSenior Vice President, Operations & Supply Chain
S&OP Innovation
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Agenda
Brief
Introduction
Marietta
Corporation
1
Q&ABEFOREHighlights
of S&OP
Innovation
AFTER
2 3 4 5
3
Personal care
Health & beauty
Cosmetics
Household
Pharmaceutical (OTC)
Food
Marietta Corporation: Introduction
Contract Manufacturing
Sample-size hotel amenities
Retail hotel amenities
Hospitality
4
Snapshot: BEFORE
5
Snapshot - BEFORE
Inventory Levels: Up
Service Levels: Down
Backorder Levels: Up
SLOB Levels: Up
6
Service Level
0
10
20
30
40
50
60
70
80
90
100
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Cortland Customer Attainment FY09
FY 09
( % )
7
Inventory Levels
Marietta Inventory Levels
0
5000
10000
15000
20000
25000
30000
FY08 FY09 FY10 FY11
$m
Totals
8
SLOB (Slow Moving or Obsolete)
3,000
3,100
3,200
3,300
Sep Oct Nov Dec Jan Feb Mar
SLOB Units
Units (1,000's)
9
Backorders
0
50
100
150
200
250
300
350
400
450
500
Date
11/0
9/0
9
12/2
8/0
9
02/1
5/1
0
04/0
5/1
0
05/2
4/1
0
07/1
2/1
0
08/3
0/1
0
10/1
8/1
0
NY Weekly Backorder Graph ( $ )
10
Materials Impact
240
250
260
270
280
290
300
310
Sep Oct Nov Dec Jan Feb Mar
Material Availability Downtime Impact
No Components
( Hours )
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Marietta’s Solution: S&OP Innovation
• System-Wide
• Integrated
• Harmonized
BPCS (Business Planning and Control System)
Application of Lean Sigma tools to drive progress
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Snapshot: AFTER
13
Snapshot - AFTER
Inventory Levels: Down
Service Levels: Up
Backorder Levels: Down
SLOB Levels: Down
14
Service Level
0
10
20
30
40
50
60
70
80
90
100
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Customer Attainment FY09 vs FY10
FY 10 FY 09
( % )
15
Inventory Levels
Marietta Inventory Levels
0
5000
10000
15000
20000
25000
30000
FY08 FY09 FY10 FY11
$m
Totals
16
Backorders
0
50
100
150
200
250
300
350
400
450
500
Date
11/0
9/0
9
12/2
8/0
9
02/1
5/1
0
04/0
5/1
0
05/2
4/1
0
07/1
2/1
0
08/3
0/1
0
10/1
8/1
0
NY Weekly Backorder Graph ( $ )
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SLOB
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Mar April May June July Aug Sep Oct
SLOB Units
Units (1,000's)
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Materials Availability
0
50
100
150
200
250
April May June July Aug Sep Oct
Materials Availability Impact on Plant Performance
No Components
( Hours )
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Highlights of S&OP Innovation
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Process Control Model
PLAN
EXECUTE
MEASURE
IMPROVE
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Highlight 1 – “Total System”
– Finance
– Planning
– Purchasing
– Quality
– Demand – Forecast
– Inventory Control
PLANTS
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Highlight 2 – “E-Connectivity”
– Portal
– EDI
– Flat File
– Upload to their SAP
CUSTOMERS
VENDORS
– Flat File
– EDI
– Work in Process
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Highlight 3 – Spec Harmonization
– Master Batch Records
– Master Production Records
– Process Specifications
PRODUCTION
Now being automated
and tied to BPCSQUALITY
– Quality Assurance (QA)
Specifications
– QA Documentation
BPCS-Business Control Planning System
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Highlight 4 – Metrics!!!
MEASUREMENT of EVERYTHING
– Every Department!
– Every Process!
CADENCE of ACCOUNTABILITY
DATA & TREND ANALYSES
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Highlight 5 – “Back Bone”
PROCEDURES
TRAINING
AUDITING
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Highlight 6 – Process Improvement Teams
VALUE STREAM MAPPING
ELIMINATION of NON-VALUE-ADDED
STANDARDIZATION / OPTIMIZATION
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Industry First: Marietta Service Guarantee
• 2010: Implemented first and only product
guarantee in the industry
Top Quality Service
Award in 2009 for
Customer Service from
American Hotel
Register
We are so confident in our production
dependability that you will receive free
product if we can’t fill your order
as agreed.*
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Questions & Answers
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THANK YOU