MPA “pass” Final Group Members

Amir Ali Talpur 01 Fahad Qamar 26 Ihsan Ali Buledi 41 Asadullah Domki 81 Imran Khan Khoso 110

Content

Definition ......................................................1 Objectives .................................................... 2 Why plan ........................................................3 Why do Organizations Plans ...........................4 What needs to be planned ..............................5 Why is S&OP is Important ...............................6 Planning process.............................................7 Princples of S&OP...........................................8 Who is using S&OP successfully.......................9 Benifits of the S&OP .......................................10

Sales and opertional planning Definition : A formal process consisting of

series of meeting where data from various areas of buisness in discussed and decision are made

Objectives:

Provide aggregate management control over the operational demand /supply planning process

Understand the financial consequences and hence tie back to buissness plan

Balance Supply and Demand , Volume and Mix:

Why Plan?

The reason why you plan is to influence and be aware of the future and its benefit to you.

To achieve a certain goal or objective.

This is done through a series of steps which will help you in formulating a strategy and means of control of someone or something.

Why Do Organizations Plan? To anticipate and prepare for the

future To ensure adequate and available

resources To complete projects on time To avoid problems To establish backup plans To ensure we don’t forget tasks To determine potential results

What needs to be planned?

Resources I.S Finances Services Products Materials Labor Equipment Facilities

WHY IS S&OP IMPORTANT ?

S&OP is not only important; it’s essential. It enables virtually all manufacturing businesses

to be run more effectively and more profitably.

The planning process

S&OP is the result of monthly planning activities. It is usually based on an Annual Operations Plan (AOP) that acts as the company's annual target in terms of sales and supply

Executive S&OP

Demand & Supply

Balancing

Supply planning

Demand Planning

Data Generatio

n

Performance

Measures

Demand planning

Acess last period Incorporate sales and customer input Build new baseline demand plan.

Supply Planning Capacity planning Demand / Supply strategies Develope feasible supply plan Supplier management Manufacturing planing Bills of resources

Raw Material

Customer

Component

Manufacuterer

Retrailer

Demand and supply balancing Identify gaps Gaps conflict resolution Recommendation and agenda for

executive meeting. Demand Supply

Executive Meeting Review of recommendations and make

decision Resolve remaining issues Review PLM plans Issue consensus plan

Principles of S&OP

The Sales and Operations Planning is the Company Game Plan

The Sales and Operations Plan is the vital link between long range and short range planning

Sales and Operations Plans are established at the Product/Service Group level

The Sales and Operations Plan includes all management targets

The Sales and Operations plan is monitored and revised monthly

Who's Using S&OP Successfully?

HP Large companies such as :

And many small compnies.

HP

NESTLE

MICROSOFT

NOKIA

COCA-COLA

Who's Using S&OP Successfully? Microsoft, among many others,

also uses Executive S&OP and all of their manufacturing is outsourced.

Companies in this category may need Executive S&OP even more, because they have less control over their sources of supply.

Benifits of S&OP If implemented and used effectively ,

S&OP will yield a major benifits to the firm:

Improve customer services Reduce inventory Lower manufacuring & distribution costs Better control of overall buisness

performance Increased team work with and across

functions

Who says nothing is impossible ?

We are doing nothing for year