Presentation on theme: "Best of the Best S&OP Conference"— Presentation transcript:
1Best of the Best S&OP Conference First General SessionSALES & OPERATIONS PLANNING: STRUCTURE, PROCESS, BENEFITSPanelists: Amy MansfieldJoe ShedlawskiTerry FinneganPresenter/Moderator: Tom Wallace
2Amy Mansfield V&M STAR Production Planning Manager
3V&M STAR Vallourec & Mannesmann Tubes North America's leading producer of seamless casingAnnual Capacity 500,000 metric tons finished product1st Executive S&OP Meeting, January 2006Certifications: API 5CT, API 5L, OSHAS 18001, ISO 9001, ISO 14001
4Products and Customers Oil Country Tubular Goods, Line and Standard Pipe, Coupling Stock and Mechanical Tube100% Make-to-OrderSales Channels: 100% DistributionKey End Users: Devon, Exxonmobil, Chesapeake, Applied Drilling, El Paso
5Joe Shedlawski, CPIM Wyeth Consumer Healthcare Principal, Commercial OperationsPast President of APICS (2007)
6Wyeth Consumer Healthcare Headquartered in Madison, NJGlobal marketer and manufacturer of over-the-counter health care products-analgesics, nutritionals, respiratory, topicals$2.7 Billion global salesFirst Sales and Operations Planning implementation-1992-Lederle Consumer Healthcare-led by Joe ShedlawskiOne of the world’s top 5 consumer healthcare companies with several top market share brands
7Products and Customers Major Products: Advil, Alavert, Caltrate, Centrum, Chapstick, Dimetapp, Robitussin70% Make-to-Stock30% Promotional Pack or Custom DisplayKey Customers: Wal-mart, Walgreens,CVS, Costco, Target, Rite Aid, Kroger(Sales Channel: Distribution Centers
8Senior Business Manager Terry FinneganImagePointSenior Business Manager
9ImagePointLargest provider of retail exterior image products and servicesHeadquarters in Knoxville, TNProduction facilities in Florence, KY and Columbia, SC$200M in annual salesStarted ES&OP May 2007
10Products and Customers Products: signs, lettersets, electronic message centers, building elements, fascia systems, menuboardsServices: surveys, installation, maintenance, project management, conceptual art, and engineering100% Make-to-OrderKey customers: McDonalds, GM, Honda, Nissan, Ford, Chrysler, Lexus, Chase, Wachovia, Wells Fargo, Rite Aid, Fed. Express, SunocoSales channels: direct to Corporate clients
11The Four Fundamentals Volume Demand Supply Mix How Much? Rates The Big PictureProduct FamiliesStrategy/Policy/RiskMonthly/18 Months+Top ManagementVolumeDemandSupplyWhich Ones?Timing/SequenceThe DetailsIndividual Products,SKUS, Customer OrdersTactics/ExecutionWeekly/Daily 1-3 MosMiddle ManagementMix
26The 5-Step Executive S&OP Process MeetingDecisions &UpdatedGame PlanDecisions,Recommendations,Scenarios, & Agendafor Exec MeetingStep 4Pre-MeetingStep 3SupplyPlanningResource Requirements Plan Capacity Constraints2nd-pass spreadsheetsManagement Forecast1st-pass spreadsheetsStep 2DemandPlanningStep 1DataGatheringActualDemand, Supply, Inventory, & Backlog +Statistical Forecasts and WorksheetsEnd of Month
27Pre-Meeting and Exec Meeting Conference PointerHow to Conduct thePre-Meeting and Exec MeetingBrian Harlan, DirectorJohnsonville Sausage3:45 Thursday – Level I
28Conference Pointer Obtaining Top Management Commitment and ParticipationTerry Finnegan, Senior Business ManagerImagePoint10:00 Thursday – Level II
29Resolving Conflict and John Gallucci, Director, Gerber Conference PointerResolving Conflict andBuilding ConsensusJohn Gallucci, Director, Gerber11:10 Thursday – Level II
30The 5-Step Executive S&OP Process MeetingDecisions &UpdatedGame PlanDecisions,Recommendations,Scenarios, & Agendafor Exec MeetingStep 4Pre-MeetingStep 3SupplyPlanningResource Requirements Plan Capacity Constraints2nd-pass spreadsheetsManagement Forecast1st-pass spreadsheetsStep 2DemandPlanningStep 1DataGatheringActualDemand, Supply, Inventory, & Backlog +Statistical Forecasts and WorksheetsEnd of Month
31Question for Panelists Your Process: Same? Different? Hardest Part?
32Executive S&OP . . . Is an executive decision-making process Balances demand and supplyDeals with volume in both units and $$$Ties operational plans to financial plans: one set of numbers
33Conference Pointer Working with One Set of Numbers Amy Mansfield, Manager, V&M StarMelissa Takas, Financial Analyst, V&M Star3:45 Thursday – Level II
34Executive S&OP . . . Is an executive decision-making process Balances demand and supplyDeals with volume in both units and $$$Ties operational plans to financial plans: one set of numbersIs the forum for setting relevant strategy and policy regarding demand and supply
35Question for Panelists What role does Top Management play in this process at your company?
36Hard Benefits Customer Service UP Plant Productivity UP Inventory DOWN Obsolescence DOWNFreight Costs DOWNOrder Lead Times DOWNSupplier Lead Times DOWNTime to Launch New Products DOWN
37Craig Faulkner, S&OP, W. L. Gore Conference PointerS&OP Support forNew Product LaunchCraig Faulkner, S&OP, W. L. Gore9:45 Friday – Level II
38Top Management’s Handle on the Business Soft BenefitsEnhanced TeamworkStructured CommunicationsBetter Decisions with Less Effort and TimeBetter $$$ Plans with Less Effort and TimeGreater AccountabilityGreater ControlWindow into the FutureTop Management’s Handle on the Business
39Question for Panelists Biggest Benefits: Hard Soft
40Question for Panelists Implementation: How Long? Costs? Toughest Part?
41Conference Pointer How to Implement S&OP Successfully Rick Hall, VP, Homac/Thomas & BettsBob Stahl, President, R.A. Stahl & Co8:30 Friday– Level I
42Executive S&OP should support The Global Challenge“We are a series of organizations doing business locally, with intense global coordination.” – Percy BarnevikFormer CEOABBExecutive S&OP should supportthese dual objectives.
43S&OP in a Global Business Alan L. Milliken, Manager, BASF Conference PointerS&OP in a Global BusinessAlan L. Milliken, Manager, BASF8:30 Friday– Level II
44The Future of Executive S&OP: Growth Factors Success breeds success
45Adoption of New Processes There is a year lag between the development of a new process and its widespread adoption.Examples: MRPII/ERP, TQM/6SIGMA, JIT/LEAN“The wordgets around.”Executive S&OP Today
46The Future of Executive S&OP: Growth Factors Success breeds successLean Manufacturing and S&OP
47Toyota: The Lean “Poster Child” At Toyota, production ispushed into Fin Goods Inv(~ $2-3 Billion)In many companies, production ispulled by Customer DemandIn balancing demand and supply,many companies have a tougher jobthan Toyota.Their solution: Executive S&OP.
48S&OP and Lean Manufacturing Jeff Greer, VP, KVH Industries Conference PointerS&OP and Lean ManufacturingJeff Greer, VP, KVH Industries2:15 Thursday – Level II
49The Future of Executive S&OP: Growth Factors Success breeds successLean Manufacturing and S&OPGlobalization
50The Future of Executive S&OP: Growth Factors Success breeds successLean Manufacturing and S&OPGlobalizationNew users outside traditional manufacturingS&OP specific software
51Technology as an S&OP Enabler Larry Lapide, Director, MIT Conference PointerTechnology as an S&OP EnablerLarry Lapide, Director, MIT10:55 Friday– Level II
52The Future of Executive S&OP: Growth Factors Success breeds successLean Manufacturing and S&OPGlobalizationNew users outside traditional manufacturingS&OP specific softwareGreater financial integration, power and utilityA highly visible presencein the executive suite
53My Prediction“Over the next 10 years, Executive S&OP will emerge as a primary tool in the Top Management tool kit.“It will be widely viewed as indispensable for organizations needing to balance demand and supply in a complex, rapidly changing environment.”Tom WallaceChicagoJune 19, 2008
54will be up by Monday morning Thanks for ListeningTo get copies of slides:will be up by Monday morning