1 Sales and Operations Planning Sustaining Performance after Implementation Brad McCollum Sr. Manager, Materials Planning and Logistics Ned Finch SVP, Global Supply Chain & Lifoam Operations

2 Agenda Introductions A little about Jarden and Jarden Home Brands The History of Our S&OP Symptoms of a Degrading Process Keys to Maintaining Quality Questions

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4 Jarden: The brands of everyday life

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7 Functional Structure - 4 Business Units Fresh Preserving Casual Entertaining Firelogs Recreational Products

8 OUR SUCCESS

9 Demand: Market Facing Families…

: Family Level Demand Normal Mfg Capacity Max Mfg Capacity

11 Probably Not nd Lowest JUN in 6 Yrs Just another year…

12 The Results…

13 Significant Increase in Sales 2009 ES&OP Kick-Off

14 Reduced Cancellations due to Product Availability ~ 50% Reduction with Significantly Higher Sales Before S&OPAfter S&OP

15 Significant Cultural Benefits  Alignment of Human Energy Elimination of the silos Cross Functional Education  Dials are Connected Tactical Execution of Strategic Plans Risks Decisions are Made at Right Levels  Inclusive Business Management S&OP Team Owned the Sales Forecast S&OP Team Owned the Production Plan S&OP Team Owned the Process and Deliverables to the Exec Team  Conflict Resolution S&OP Requires Conflict, but also Provides a Forum and Process to Management it

16 The Challenge… Sustaining that Performance over time…

17 Where problems occurred… Month End Data Gathering Demand Alignment Supply Recommend ations Integration Exec S&OP Meeting

18 Cracks in our Foundation  Data Conversion Issues New Items improperly equalized Items Missed/Not Maintained  Late Deliverables Sliding Dates Expanding Calendars (“I just need more time”)  Changes Occur without Confirmation Tool Formats Change Sources Change Horizon Change  Quality Issues Creep into Process Loss of Confidence in Supporting Data

19 The Solution  Continuous Quality Assurance Deliverables should be checked every cycle prior to their entry into the process Track Changes Cycle over Cycle  Corrective Actions have to be Immediate and with Priority Remember that this Data supports business critical decisions  Drive Ways to Make this Process Bullet Proof Eliminate sources of error  Maintain a Path for Confirming Process Change Better and more efficient ways are expected as part of the process, but still need to be confirmed by the team  Keep up with Adjacent Changes S&OP support needs to be part of adjacent systems design/change considerations

20 Month End Data Alignment Demand Alignment Supply Response Integration Exec S&OP Meeting Where the problems occurred…

21 The Fundamentals of Demand Alignment Demand Alignment Market Customer History Reconciliation of Opposing Views

22 Shortening Horizon 24 Months Time MIXVOLUME Sales Call Volume/Marketing Call Planning Time Fence Reconciliation Consensus Demand

23 Loss of Top Down Perspective THEORIES

24 Bias and Error BIAS

25 Other Symptoms  Demand Alignment Meetings become shorter and shorter The Reconciliation of Opposing Perspectives requires debate  Demand Alignment Meetings Attendance Suffers Key players begin to decline/no show  BIAS Becomes Apparent Prolonged Bias Results and becomes difficult to address Supply begins taking bias into consideration  Eventually Real Alignment isn’t really happening Error Increases without the value of the discussions required to gain alignment The value and importance of Alignment erodes Demand Team Members disconnect from the process and if deliverable

26 The Solution  Never Loose the Three Legs Retain Rigor around bottom up forecast within the Planning Time Fence Top down is more art than science – It is the quantification of theories that are relevant to the category  Don’t let up on basis Meeting Management Attendance QA of Deliverables  Track and Monitor Bias and Error Improvement should be the basis for comparison  Set and Pursue Continuous Improvement Goals

27 Month End Data Alignment Demand Alignment Supply Response Integration Exec S&OP Meeting

28 Design Objectives: Highest level possible based on agreed upon market drivers Grouped based on how capacities are constrained Proven Assumptions that allow demand to be applied to supply groupings Market Facing Product Families Supply Grouping Reasonable Assumptions Product Groupings: Reasonable Assumptions Change

29 Monitors Get Lost Run Charts for each Split

30 Capacities and Productivity Change WC1 WC2 WC3 WC4 WC5 WCN Individual Capacities - Scheduled Capacity Grouping Rough-Cut Capacity WC4

31 The Solution  Rigor Around Supporting Monitors Make Run Charts part of the regular Meeting (i.e. Assumption Models) Pursue Ways to Bullet Proof and Automate Monitors  Educate New Players on the Key Behind the Scenes Controls As your models Mature, these Monitors/Controls become more complicated and difficult to hand-off/transfer to other resources  Aggressively Pursue Outliers/Bias These assumptions are fundamental to your results  Monitor Adjacent Projects Impacts to S&OP Assumptions Acquisitions Plant/Capacity Modifications and Improvements

32 Month End Data Alignment Demand Alignment Supply Response Integration Exec S&OP Meeting The Results

33 Upstream Issues Create…  Last Minute Iterations before Integration and Executive Meetings Last Minute Errors Found Financial Integration show something totally off  Integration Meeting Content gives way to Reconciliation and Error checking instead of Substantive Discussion  Integration Meeting Attendance Dwindles Same people you had in Supply Meetings  People Unwilling/Unable to Defend Perspective Inconsistent perspectives exist Backroom Discussions/Decisions  Ultimately, ES&OP Meeting Attendance Dwindles Benefits begin to un-ravel

34 Summary  Be vigilant with 1 st Pass Quality with deliverables Cracks in the Foundation damage the rest of the house Don’t let the details fall to the way side… RUN CHARTS to understand when change is occurring  Continuous Continuous Improvement It really does take constant pressure  Survey Regularly Flag for degrading processes Everyone is responsible for pointing out the need for corrective actions  Watch and Track Attendance When attendance dwindles...something is wrong  Don’t Expect New Team Members to Just “Get it” Onboard S&OP Participants and New Executive Team Members to the Process is CRITICAL

35 S&OP is Never Ending Continuous Improvement

36 Questions?