apo dp screenshots 2012-06-17

7/31/2019 APO Dp Screenshots 2012-06-17

1/16


2/16


3/16


4/16


5/16


6/16


7/16


8/16


9/16


10/16


11/16


12/16


13/16


14/16

.Sales Pipeline: Quoted Clients; Good Prospects; Possible Suspects-with detail

Gross Sales value per sales person per period of time

Net Sales Value (net of all the taxes) per sales person per period of time

Base Product sale value (for example laptop base configuration value)

Add-on product sales value (for example sales value associated with additional RAM in a lap-top)

Add-on services sales value (for example added 2-year warranty package)

Sales value productivity per day with or without holidays.

Sales value productivity with existing customers (up-sell and cross-sell)

Sales value productivity with new customers

Sales value productivity with existing contracts (renewal of warranty on a laptop). This is different from

sales value productivity from an existing customer (existing customer buying a new laptop)

Sales value productivity net of returns (when a customer returns the purchase and asks for the refund)

Forecast Volatility

Supply Variability


15/16

Forecast v Sales

Plan vs Shipment

Chapter 7 Measures of Performance75Excerpt from: Sales and Operations Planning Standard SystemCopyright 2007Christopher D. GrayChapter 7Measures of PerformanceReviewing key performance indicators is an important part of any workingS&OP process. Experience suggests a set of standardized measurements

(sometimes called key performance indicators-KPIs or vital signs) that should bepublished during the process, and reviewed at the meetings that make up theprocess. Some performance indicators will be reviewed in the early steps of the

S&OP process, but not at the executive meeting. The criticalmetrics will bereviewed in the executive meeting.Vital signs reviewed during the S&OP process:

Measure whether the needs of customers are being met (on-time and in-full).Measure whether the financial objectives of the business as defined by thebusiness plan are being met.Identify problems and then assist in prioritizing problems so they can be solved.Provide a scorecard for monitoring improvement.The sales and operations planning system should include capabilities to captureand report the following:1. Customer service performance by family and overallCustomer delivery performance (on-time and in-fullOTIF) to request dateCustomer delivery performance (on-time and in-full) to promised date2. Performance to budget (dollars) by family and overall

Latest sales plan vs. budget dollarsProfit projections for yearInventory versus budget dollars3. Performance to plan (units) by familyActual shipments versus plan typically expressed as percentage attainment.Actual sales versus forecast (some measurement of accuracy or variability)typically expressed as attainment, percentage error, or mean absolute percentageerror.Actual supply versus supply plan expressed as percentage attainment, or percentvariability from plan.Actual inventory versus inventory plan (make-to-stock products) expressed as a

percentage.76 SALES AND OPERATIONS PLANNING STANDARD SYSTEMExcerpt from: Sales and Operations Planning Standard SystemCopyright 2007Christopher D. GrayActual backlog versus backlog plan (make-to-order products) expressed as apercentage.The way these are actually reported will vary from company to company. Innearly every company, the performance to plan metrics will be reviewed aspart of the family by family review, so summarizing them to a scorecard is


16/16

somewhat redundant. For example, Figure 71 shows common performanceto plan metrics displayed as part of the S&OP display itself. Metrics on thismake-to-stock example show actual sales to budget, actual sales to plan, actualproduction to plan, and actual inventory to plan expressed as a percentage of thebudget or plan for the period. (The formulas used to calculate these metrics are

explained below as part of the general discussion of measurements.)Figure 71S&OP with Typical Performance to Plan Metrics

Chapter 7 Measures of Performance77Excerpt from: Sales and Operations Planning Standard SystemCopyright 2007Christopher D. GrayEven though some metrics are part of the family by family review, somecompanies like to have a summary scorecard that highlights overall and family byfamily performance. Often this would be reviewed first during the partnershipand executive meetings. Other companies prefer to have an overall scorecard(summary statistics only) and a scorecard for each family.Since in many companies the executive review of the sales and operations plan

itself is by exception, not every family will be reviewed in detail. The scorecardby family is a quick reference to current performance for each family.In the end, each company needs to decide what kind of reporting makes themost sense for it. The important thing isnt the number of reports or displays ortheir formats, the important thing is that performance review of the vital signs ispart of the S&OP process.There may be other key performance indicators that are reviewed in the five stepS&OP process. These additional metrics include:Actual supply versus MPS or finishing scheduleSchedule stabilitySupplier performance

Master production schedule versus supply planIn some cases, these will be reviewed in the earlier steps and not in the executivemeeting. In cases where executive management considers them critical, they willbe reviewed in the executive meeting as wellor they will be part of thereference data provided but not formally reviewed.How to MeasureGenerally speaking, any measurement requires a sample, a tolerance, and astandard. The samples define what data is used for the measurement and may betaken differently depending upon the specific measurement. In some cases, thesample used for performance measurement could be based on random selection.In other cases, the sample could be all of the activities occurring during a specific

period of time. In all of the vital signs described below the sample size covers allthe events or data points during the period of time being measured.Performance measurements must have reasonable tolerances. For example, ontimeperformance for a supplier might be defined as delivered on the due date

plus or minus 1 dayand plus or minus five percent of the order quantity. In this case, thetolerance of plus or minus 1 day indicates that an order can be delivered a day

apo dp screenshots 2012-06-17

Documents