1. Best of the Best S&OP Conference
First General Session
SALES & OPERATIONS PLANNING: STRUCTURE, PROCESS, BENEFITS
Panelists: Amy Mansfield
Joe Shedlawski
Terry Finnegan
Presenter/Moderator: Tom Wallace

2. Amy Mansfield V&M STAR Production Planning Manager

3. V&M STAR Vallourec & Mannesmann Tubes
North America's leading producer of seamless casing
Annual Capacity 500,000 metric tons finished product
1st Executive S&OP Meeting, January 2006
Certifications: API 5CT, API 5L, OSHAS 18001, ISO 9001, ISO 14001

4. Products and Customers
Oil Country Tubular Goods, Line and Standard Pipe, Coupling Stock and Mechanical Tube
100% Make-to-Order
Sales Channels: 100% Distribution
Key End Users: Devon, Exxonmobil, Chesapeake, Applied Drilling, El Paso

5. Joe Shedlawski, CPIM Wyeth Consumer Healthcare
Principal, Commercial Operations
Past President of APICS (2007)

6. Wyeth Consumer Healthcare
Headquartered in Madison, NJ
Global marketer and manufacturer of over-the-counter health care products-analgesics, nutritionals, respiratory, topicals
$2.7 Billion global sales
First Sales and Operations Planning implementation-1992-Lederle Consumer Healthcare-led by Joe Shedlawski
One of the world’s top 5 consumer healthcare companies with several top market share brands

7. Products and Customers
Major Products: Advil, Alavert, Caltrate, Centrum, Chapstick, Dimetapp, Robitussin
70% Make-to-Stock
30% Promotional Pack or Custom Display
Key Customers: Wal-mart, Walgreens,CVS, Costco, Target, Rite Aid, Kroger
(Sales Channel: Distribution Centers

8. Senior Business Manager
Terry Finnegan
ImagePoint
Senior Business Manager

9. ImagePoint
Largest provider of retail exterior image products and services
Headquarters in Knoxville, TN
Production facilities in Florence, KY and Columbia, SC
$200M in annual sales
Started ES&OP May 2007

10. Products and Customers
Products: signs, lettersets, electronic message centers, building elements, fascia systems, menuboards
Services: surveys, installation, maintenance, project management, conceptual art, and engineering
100% Make-to-Order
Key customers: McDonalds, GM, Honda, Nissan, Ford, Chrysler, Lexus, Chase, Wachovia, Wells Fargo, Rite Aid, Fed. Express, Sunoco
Sales channels: direct to Corporate clients

11. The Four Fundamentals Volume Demand Supply Mix How Much? Rates
The Big Picture
Product Families
Strategy/Policy/Risk
Monthly/18 Months+
Top Management
Volume
Demand
Supply
Which Ones?
Timing/Sequence
The Details
Individual Products,
SKUS, Customer Orders
Tactics/Execution
Weekly/Daily 1-3 Mos
Middle Management
Mix

12. The Old Terminology Sales & Operations Planning Supply (Capacity)
Volume
Supply (Capacity)
Planning
Demand
Supply
Demand Planning/
Forecasting
Mix

13. Sales & Operations Planning
“Morphed” Terminology
Sales &
Operations Planning
Volume
Supply (Capacity)
Planning
Demand
Supply
Demand Planning/
Forecasting
Mix
Master Scheduling
Supplier and Plant Scheduling
Distribution Scheduling

14. Sales & Operations Planning
“Morphed” Terminology
Sales &
Operations Planning
Volume
Supply (Capacity)
Planning
Demand
Supply
Demand Planning/
Forecasting
Mix
Master Scheduling
Supplier and Plant Scheduling
Distribution Scheduling

15. Sales & Operations Planning
“Morphed” Terminology
Sales &
Operations Planning
Volume
Supply (Capacity)
Planning
Demand
Supply
Demand Planning/
Forecasting
Mix
Master Scheduling
Supplier and Plant Scheduling
Distribution Scheduling

16. Sales & Operations Planning
Volume
Supply (Capacity)
Planning
Demand
Supply
Demand Planning/
Forecasting
Mix
Master Scheduling
Supplier and Plant Scheduling
Distribution Scheduling

17. Sales & Operations Planning New Terminology
????????
Volume
Supply (Capacity)
Planning
Demand
Supply
Demand Planning/
Forecasting
Mix
Master Scheduling
Supplier and Plant Scheduling
Distribution Scheduling

18. Sales & Operations Planning New Terminology
Executive S&OP
Volume
Supply (Capacity)
Planning
Demand
Supply
Demand Planning/
Forecasting
Mix
Master Scheduling
Supplier and Plant Scheduling
Distribution Scheduling

19. The 5-Step Executive S&OP Process
Meeting
Decisions &
Updated
Game Plan
Step 4
Pre-
Meeting
Step 3
Supply
Planning
Step 2
Demand
Planning
Step 1
Data
Gathering

20. Conference Pointer The Five-Step Process
Dean Smetana, VP, Sanford/Sharpie
Bill Zimmerman, Manager, Sanford/Sharpie
10:00 Thursday – Level I

21. The 5-Step Executive S&OP Process
Management Forecast
1st-pass spreadsheets
Step 2
Demand
Planning
Step 1
Data
Gathering
Actual
Demand, Supply, Inventory, & Backlog +
Statistical Forecasts and Worksheets

22. Scott Harrison, VP, Valor Brands
Conference Pointer
Forecasting and
Demand Planning
Scott Harrison, VP, Valor Brands
11:10 Thursday – Level I

23. The Demand Management Game Robert Burrows, Principal, On-Point Group
Conference Pointer
The Demand Management Game
Robert Burrows, Principal, On-Point Group
9:45 Friday– Level I
(double session)

24. The 5-Step Executive S&OP Process
Supply
Planning
Resource Requirements Plan Capacity Constraints
2nd-pass spreadsheets
Management Forecast
1st-pass spreadsheets
Step 2
Demand
Planning
Step 1
Data
Gathering
Actual
Demand, Supply, Inventory, & Backlog +
Statistical Forecasts and Worksheets

25. Joe Shedlawski, Principal, Wyeth
Conference Pointer
Supply Planning
Joe Shedlawski, Principal, Wyeth
2:15 Thursday – Level I

26. The 5-Step Executive S&OP Process
Meeting
Decisions &
Updated
Game Plan
Decisions,
Recommendations,
Scenarios, & Agenda
for Exec Meeting
Step 4
Pre-
Meeting
Step 3
Supply
Planning
Resource Requirements Plan Capacity Constraints
2nd-pass spreadsheets
Management Forecast
1st-pass spreadsheets
Step 2
Demand
Planning
Step 1
Data
Gathering
Actual
Demand, Supply, Inventory, & Backlog +
Statistical Forecasts and Worksheets
End of Month

27. Pre-Meeting and Exec Meeting
Conference Pointer
How to Conduct the
Pre-Meeting and Exec Meeting
Brian Harlan, Director
Johnsonville Sausage
3:45 Thursday – Level I

28. Conference Pointer Obtaining Top Management
Commitment and Participation
Terry Finnegan, Senior Business Manager
ImagePoint
10:00 Thursday – Level II

29. Resolving Conflict and John Gallucci, Director, Gerber
Conference Pointer
Resolving Conflict and
Building Consensus
John Gallucci, Director, Gerber
11:10 Thursday – Level II

30. The 5-Step Executive S&OP Process
Meeting
Decisions &
Updated
Game Plan
Decisions,
Recommendations,
Scenarios, & Agenda
for Exec Meeting
Step 4
Pre-
Meeting
Step 3
Supply
Planning
Resource Requirements Plan Capacity Constraints
2nd-pass spreadsheets
Management Forecast
1st-pass spreadsheets
Step 2
Demand
Planning
Step 1
Data
Gathering
Actual
Demand, Supply, Inventory, & Backlog +
Statistical Forecasts and Worksheets
End of Month

31. Question for Panelists
Your Process: Same? Different? Hardest Part?

32. Executive S&OP . . . Is an executive decision-making process
Balances demand and supply
Deals with volume in both units and $$$
Ties operational plans to financial plans: one set of numbers

33. Conference Pointer Working with One Set of Numbers
Amy Mansfield, Manager, V&M Star
Melissa Takas, Financial Analyst, V&M Star
3:45 Thursday – Level II

34. Executive S&OP . . . Is an executive decision-making process
Balances demand and supply
Deals with volume in both units and $$$
Ties operational plans to financial plans: one set of numbers
Is the forum for setting relevant strategy and policy regarding demand and supply

35. Question for Panelists
What role does Top Management play in this process at your company?

36. Hard Benefits Customer Service UP Plant Productivity UP Inventory DOWN
Obsolescence DOWN
Freight Costs DOWN
Order Lead Times DOWN
Supplier Lead Times DOWN
Time to Launch New Products DOWN

37. Craig Faulkner, S&OP, W. L. Gore
Conference Pointer
S&OP Support for
New Product Launch
Craig Faulkner, S&OP, W. L. Gore
9:45 Friday – Level II

38. Top Management’s Handle on the Business
Soft Benefits
Enhanced Teamwork
Structured Communications
Better Decisions with Less Effort and Time
Better $$$ Plans with Less Effort and Time
Greater Accountability
Greater Control
Window into the Future
Top Management’s Handle on the Business

39. Question for Panelists
Biggest Benefits: Hard Soft

40. Question for Panelists
Implementation: How Long? Costs? Toughest Part?

41. Conference Pointer How to Implement S&OP Successfully
Rick Hall, VP, Homac/Thomas & Betts
Bob Stahl, President, R.A. Stahl & Co
8:30 Friday– Level I

42. Executive S&OP should support
The Global Challenge
“We are a series of organizations doing business locally, with intense global coordination.” – Percy Barnevik
Former CEO
ABB
Executive S&OP should support
these dual objectives.

43. S&OP in a Global Business Alan L. Milliken, Manager, BASF
Conference Pointer
S&OP in a Global Business
Alan L. Milliken, Manager, BASF
8:30 Friday– Level II

44. The Future of Executive S&OP: Growth Factors
Success breeds success

45. Adoption 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 word
gets around.”
Executive S&OP Today

46. The Future of Executive S&OP: Growth Factors
Success breeds success
Lean Manufacturing and S&OP

47. Toyota: The Lean “Poster Child”
At Toyota, production is
pushed into  Fin Goods Inv
(~ $2-3 Billion)
In many companies, production is
pulled by  Customer Demand
In balancing demand and supply,
many companies have a tougher job
than Toyota.
Their solution: Executive S&OP.

48. S&OP and Lean Manufacturing Jeff Greer, VP, KVH Industries
Conference Pointer
S&OP and Lean Manufacturing
Jeff Greer, VP, KVH Industries
2:15 Thursday – Level II

49. The Future of Executive S&OP: Growth Factors
Success breeds success
Lean Manufacturing and S&OP
Globalization

50. The Future of Executive S&OP: Growth Factors
Success breeds success
Lean Manufacturing and S&OP
Globalization
New users outside traditional manufacturing
S&OP specific software

51. Technology as an S&OP Enabler Larry Lapide, Director, MIT
Conference Pointer
Technology as an S&OP Enabler
Larry Lapide, Director, MIT
10:55 Friday– Level II

52. The Future of Executive S&OP: Growth Factors
Success breeds success
Lean Manufacturing and S&OP
Globalization
New users outside traditional manufacturing
S&OP specific software
Greater financial integration, power and utility
A highly visible presence
in the executive suite

53. My 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 Wallace
Chicago
June 19, 2008

54. will be up by Monday morning
Thanks for Listening
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will be up by Monday morning