taking stock: are your s&op leadership skills agile enough?
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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
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
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
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
Sales & Operations Planning
Demand Supply
Volume
Mix
Executive S&OP
Master SchedulingSupplier and Plant Scheduling
Distribution Scheduling
Demand Planning/Forecasting
Supply (Capacity) Planning
?????
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
Your Company’s Progress with S&OP in 2012?
• A Lot
• A Little
• None At All
• We Lost Ground
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
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
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
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
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
Focus on the 10 Principles
The Executive S&OP planning cycle is monthly, with provisions for mid-period revisions when major changes occur.
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
The “Mini-S&OP Cycle”
• Supply Crash
• Demand Spike
• Demand Crash
• Supply Spike
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
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
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
Focus on the 10 Principles
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 . . .
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
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 by Tom Wallace WWW.TFWALLACE.COM
Focus on the 10 Principles
Executive S&OP is cross-functional and collaborative.
It involves, at a minimum, Sales/Marketing, Operations/Supply Chain, Product Development, Finance, and Executive Management.
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
Energy Alignment
Accomplishment
S&OP: Weak or Non-Existent
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
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
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
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
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
Energy Alignment
Accomplishment Accomplishment
S&OP: Weak or Non-Existent S&OP: Operating Well
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
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 by Tom Wallace WWW.TFWALLACE.COM
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 by Tom Wallace WWW.TFWALLACE.COM
Executive S&OP’s Role in Recovery
• Minor Disruption: probably no role
• Moderate to Major Disruption:
The “Mini-S&OP Cycle”
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
Recap
Doing the things that we covered here will help you convert your supply chain
from:
WHAT? TO WHAT?
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
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:
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM
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
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.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: tom@tfwallace.com To talk: 513-281-0500
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