Download - Taking Stock: Are Your S&OP Leadership Skills Agile Enough?

EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

Enhancing Leadership Skills for Increased Agility

A Webinar

by

Tom Wallace

sponsored by

Steelwedge Software

November 2012


The Four Fundamentals

Demand Supply

Volume

Mix

Sales & OperationsPlanningX

How Much?RatesThe Big PictureProduct FamiliesStrategy/Policy/RiskMonthly/18 months+Top Management

Which Ones?Timing/SequenceThe DetailsProducts, SKUs, OrdersTactics/ExecutionWkly/Daily, 2 days – 6 mos Middle Management


Sales & Operations Planning

Demand Supply

Volume

Mix

Executive S&OP

Master SchedulingSupplier and Plant Scheduling

Distribution Scheduling

Demand Planning/Forecasting

Supply (Capacity) Planning

?????

bodell

I think the key thing to hit is "what is Executive S&OP"? Should we have some bullet points somewhere that give some basic description? And can we link this back to some key points:?1) This is about Executive" Decision Making"2) This is about" Business Performance" (not just demand/supply balancing)3) This is not "detailed execution review"


Your Company’s Progress with S&OP in 2012?

• A Lot

• A Little

• None At All

• We Lost Ground


A Challenge for 2013

• The 21st Century Supply Chain:

• The Mission for 2013: Convert FRAGILE to

AGILE

• Some thoughts on how S&OP can help

FRAGILE


Principles of Executive S&OPby Tom Wallace and Bob Stahl

• Ten Principles of Executive S&OP– How Get? Go to the web site shown below– Cost? Zero, Zilch, Nada

• Foundation for the Effectiveness Checklist– 33 questions on how you’re doing with S&OP– How Get? Same as above – Cost? Same as above


Focus on the 10 Principles

The Executive S&OP planning cycle is monthly, with provisions for mid-period revisions when major changes occur.


The “Mini-S&OP Cycle”

• Supply Crash

• Demand Spike

• Demand Crash

• Supply Spike


The Mini-S&OP Cycle• Focus on affected parts of the business• Solve the problem at the earliest step possible:

• Use the same people, report formats, and processes as in the regular monthly cycle

Step 2DemandPlanning

Step 3Supply

Planning

Step 4Pre-

Meeting

Step 5Exec

Meeting



The volume plans authorized in Executive S&OP direct the plans and schedules for mix.

Therefore, tight alignment between volume plans and mix plans is essential . . .


One Set of Numbers

Q - What’s wrong with multiple sets of #s?

A – Multiple sets of #s are “anti-agile”

- Internally



Executive S&OP is cross-functional and collaborative.

It involves, at a minimum, Sales/Marketing, Operations/Supply Chain, Product Development, Finance, and Executive Management.


Energy Alignment

Accomplishment

S&OP: Weak or Non-Existent


Become An S&OP Expert

• Read The Literature

• Go To S&OP Conferences

• Speak At S&OP Conferences

• Get Certified in S&OP

• Teach S&OP to Others in the Company


Sales/Marketing(Units/$$$ by Family)

Operations(Units/Hours/Material)

Finance(Dollars)

Product Development(New Product Issues)

From 5,000 Feet

GENERAL MANAGER

(President, COO, CEO, MD)CENTRIPETAL

SHARED VIEW

TEAMWORK


Energy Alignment

Accomplishment Accomplishment

S&OP: Weak or Non-Existent S&OP: Operating Well


Executive S&OP and Risk

• Supply Chain disruptions: (supply crash, demand spike, demand crash, supply spike)

• Potential• Actual

Executive S&OP can help with:• Anticipating potential disruptions• Recovering from actual disruptions


Executive S&OP’s Role in Anticipation

• Initially set hedges:- safety stock- safety time- location- consignment- finished products- components/raw materials

• Review and revise hedges during the Executive S&OP cycle

• Permanent agenda item – Pre-Meeting and Exec Meeting


Executive S&OP’s Role in Recovery

• Minor Disruption: probably no role

• Moderate to Major Disruption:

The “Mini-S&OP Cycle”


Recap

Doing the things that we covered here will help you convert your supply chain

from:

WHAT? TO WHAT?


Time To Get Started?

Here’s what we’ve covered here:- the Ten Principles- the Effectiveness Checklist

- one set of numbers - internally

- develop a core of S&OP experts

- use S&OP to avoid and mitigate risk

FRAGILE TO AGILE

Doing these things will help you convert:


S&OP Certification

• Gain increased knowledge of S&OP via the study materials

• Validate that knowledge by passing the exam

• Be designated “CS&OP”

• Exams are available around the world, at your location and your convenience

• More info: www.Sopinstitute.Com


Thanks for Listening!

Go to www.sopinstitute for info about S&OP Certification

Go to www.tfwallace.com for:•S&OP 101 (free)•Implementation Information (free)•The S&OP Forum

Periodic newsletters (free) White papers (free) S&OP Effectiveness Checklist (free)

•Books and videos ($$$)

E-mail: [email protected] To talk: 513-281-0500

http://www.sopinstitute/

http://www.tfwallace.com/

mailto:[email protected]