taking stock: are your s&op leadership skills agile enough?
DESCRIPTION
Steelwedge Agility Webinar Series Featuring Tom Wallace, S&OP Author and Educator, and Nari Viswanathan, Steelwedge Good news/bad news in Sales & Operations this year: S&OP has become a top priority for most manufacturing companies; however, too many businesses are still floundering on how to make S&OP work. While collaboration is at the heart of effective S&OP, creating more meetings is not the solution. Nor is a rigid pursuit of “the perfect forecast,” or an attempt to ensure control over the supply chain. Today, the best business plans are the most agile ones, able to adapt to the marketplace. Therefore, the best S&OP leaders also need to be more agile in how they approach their company’s consensus planning. So, as you take stock of your business planning priorities for 2013, it’s a good time to also ensure your leadership skills are updated, strong and flexible enough to drive growth in whatever environment the New Year serves up. In this one hour interactive webinar, acclaimed industry counselor, Tom Wallace, will share his perspective on a checklist of skills the most successful S&OP leaders will need in 2013 to get and keep better agility in their businesses, including: • Align the company’s people so that they moving together and in the right direction • Look out into the future for 6 to 12 to 18 months with confidence • Remember that S&OP is not just about solving problems; it’s also about identifying opportunitiesTRANSCRIPT
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: [email protected] To talk: 513-281-0500