1. Lean and Agile Integr 1 © The Delos Partnership 2004 Lean and Agile Applying the ideas to the Business

2. Lean and Agile Integr 2 © The Delos Partnership 2004 The Delos Model Vision Strategy Prioritisation Prioritisation Innovation Innovation Demand Support Supply Supply

3. Lean and Agile Integr 3 © The Delos Partnership 2004 Objectives for Integrated Enterprise Planning One set of numbers at all times Integrated Plans Realistic Plans Teamwork Communication of goals and objectives Decisions made in timely fashion Consistent performance measures Delivery of the Strategy

4. Lean and Agile Integr 4 © The Delos Partnership 2004 Customer Relationship Strategy 1.First Decide if you are Make to Stock or Make To Order 2.Then work out the production plans Inventory Production Make To Stock Sales/ Shipments Order Book Sales Orders Production/ Shipments Make To Order

5. Lean and Agile Integr 5 © The Delos Partnership 2004 Make to Stock Production = Demand Plan + (Inventory Target- Current Inventory) = 100 + 75 - 50) PRODUCTION STOCK

6. Lean and Agile Integr 6 © The Delos Partnership 2004 Integrated Enterprise Planning -3-2 Demand Plan 120 Actual Demand 119125132 Difference 512 Cum Diff 416 Months 123456789 Last Demand Plan 120 New Demand Plan Difference Cum Diff Months Q4Q1 360 -3-2 Supply Plan 125 Actual Supply 119118121 Difference -6-7-4 Cum Diff -13-17 123456789 Last Supply Plan 125 120 New Supply Plan Difference Cum Diff Q4Q1 360 -3-2 Stock Plan717681 Actual Stock 66 665948 Difference-5-17-33 123456789 Last Stock Plan8691 New Stock Plan Difference Q4Q1 Make – To- Stock : Family Units

7. Lean and Agile Integr 7 © The Delos Partnership 2004 Make to Order Production = Demand Plan + (Current Order Book - Orderbook Target) = 70 + 75 - 50) PRODUCTION ORDER BOOK

8. Lean and Agile Integr 8 © The Delos Partnership 2004 Integrated Business Planning -3-2 Demand Plan 70 Actual Demand 717580 Difference 1510 Cum Diff 616 Months 123456789 Last Demand Plan 70 New Demand Plan Difference Cum Diff Months Q4Q1 210 -3-2 Supply Plan 75 Actual Supply 706971 Difference -5-6-4 Cum Diff -11-15 123456789 Last Supply Plan 75 70 New Supply Plan Difference Cum Diff Q4Q1 210 -3-2 Order Book Plan615651 Actual Orders 66 677382 Difference61731 123456789 Last Plan4641 New Plan Difference Q4Q1 41 Make – To- Order – Family Units

9. Lean and Agile Integr 9 © The Delos Partnership 2004 Integrated Enterprise Planning ACTIONACTION Week 1Week 2Week 3Week 4 Innovation Review Innovation Review Customer Demand Review Customer Demand Review Supply Plan Review Supply Plan Review Priority Review Priority Review STAGE 1 STAGE 2 Senior Team Review Senior Team Review STAGE 5 STAGE 7 STAGE 4 STAGE 3 Support STAGE 6

10. Lean and Agile Integr 10 © The Delos Partnership 2004 Characteristics of IEP Formal set of meetings Agendas “pre-set” Linked series of meetings Focus on right decisions being made at right level Preparation is key Facts not opinions Long-term and not short-term focus

11. Lean and Agile Integr 11 © The Delos Partnership 2004 Integrated Enterprise Planning Summary –One set of numbers –Teamwork –Manages the constant change –Rolling Business Plan –Replaces Budget –Sound basis for decision making

12. Lean and Agile Integr 12 © The Delos Partnership 2004 Budgets – the issues Annual budgets irrelevant in a fast changing world It is a game played by any number of players Budget is used as a “control mechanism” – but it does not work

13. Lean and Agile Integr 13 © The Delos Partnership 2004 Budget – the timetable Marketing Plan Manufacturing Plan Financial Plan Corporate “Input” Super Corporate Input Budget JulyAugustSeptemberOctoberNovemberDecember

14. Lean and Agile Integr 14 © The Delos Partnership 2004 Where does Value get added ? Budget JulyAugustSeptemberOctoberNovemberDecember Marketing Plan Manufacturing Plan Financial Plan Corporate “Input” Super Corporate Input

15. Lean and Agile Integr 15 © The Delos Partnership 2004 Solution Use a monthly Integrated Enterprise Planning process with 5 year horizon to manage strategic and operational planning, and get rid of [most of] the non value adding operations of the budgetary process.

16. Lean and Agile Integr 16 © The Delos Partnership 2004 Process Based Organisation MD Sales Marketing Technical Operations Finance HR R&DR&D R&DR&D MKTGMKTG MKTGMKTG SALESSALES SALESSALES OPSOPS OPSOPS ACCTSACCTS ACCTSACCTS HRHR HRHR Directors Managers Supervisors/Team Leaders Innovation Process Owner Demand Process Owner Supply Process Owner

17. Lean and Agile Integr 17 © The Delos Partnership 2004 All going in different directions ? Design Operations Sales and Marketing

18. Lean and Agile Integr 18 © The Delos Partnership 2004 Harnessed in a common direction ? Customer Operations Design

19. Lean and Agile Integr 19 © The Delos Partnership 2004 Lean and agile Enterprise Requires Integration of Development Sales and Marketing Operations Finance In pursuit of a common Lean and Agile Vision and Strategy