Download - Best of the Best S&OP Conference
www.tfwallace.comTom Wallace & Bob Stahl
Best of the BestBest of the BestS&OP ConferenceS&OP ConferenceBest of the BestBest of the Best
S&OP ConferenceS&OP Conference
First General Session
SALES & OPERATIONS PLANNING: STRUCTURE, PROCESS, BENEFITS
Panelists: Amy Mansfield Joe Shedlawski Terry Finnegan
Presenter/Moderator: Tom Wallace
Amy MansfieldV&M STAR
Production Planning Manager
V&M STARVallourec & Mannesmann Tubes
•North America's leading producer of seamless casing•Annual Capacity 500,000 metric tons finished product
•1st Executive S&OP Meeting, January 2006
Certifications: API 5CT, API 5L, OSHAS 18001, ISO 9001, ISO 14001
Products and Customers
•Oil Country Tubular Goods, Line and Standard Pipe, Coupling Stock and Mechanical Tube
•100% Make-to-Order
•Sales Channels: 100% Distribution
•Key End Users: Devon, Exxonmobil, Chesapeake, Applied Drilling, El Paso
Joe Shedlawski, CPIMJoe Shedlawski, CPIM
n Wyeth Consumer Healthcare
n Principal, Commercial Operations
n Past President of APICS (2007)
Wyeth Consumer HealthcareWyeth Consumer Healthcare
•Headquartered in Madison, NJ
•Global marketer and manufacturer of over-the-counter health care products-analgesics, nutritionals, respiratory, topicals
•$2.7 Billion global sales
•First Sales and Operations Planning implementation-1992-Lederle Consumer Healthcare-led by Joe Shedlawski
•One of the world’s top 5 consumer healthcare companies with several top market share brands
Products and CustomersProducts and Customers
•Major Products: Advil, Alavert, Caltrate, Centrum, Chapstick, Dimetapp, Robitussin
•70% Make-to-Stock
•30% Promotional Pack or Custom Display
•Key Customers: Wal-mart, Walgreens,CVS, Costco, Target, Rite Aid, Kroger
(Sales Channel: Distribution Centers
Terry FinneganImagePoint
Senior Business Manager
•Largest provider of retail exterior image products and services
•Headquarters in Knoxville, TN
•Production facilities in Florence, KY and Columbia, SC
•$200M in annual sales
•Started ES&OP May 2007
ImagePoint
•Products: signs, lettersets, electronic message centers, building elements, fascia systems, menuboards
•Services: surveys, installation, maintenance, project management, conceptual art, and engineering
•100% Make-to-Order
•Key customers: McDonalds, GM, Honda, Nissan, Ford, Chrysler, Lexus, Chase, Wachovia, Wells Fargo, Rite Aid, Fed. Express, Sunoco
•Sales channels: direct to Corporate clients
Products and Customers
www.tfwallace.comTom Wallace & Bob Stahl
The Four FundamentalsThe Four FundamentalsThe Four FundamentalsThe Four Fundamentals
Demand Supply
Volume
Mix
•How Much?•Rates•The Big Picture•Product Families•Strategy/Policy/Risk•Monthly/18 Months+•Top Management
•Which Ones?•Timing/Sequence•The Details•Individual Products, SKUS, Customer Orders•Tactics/Execution•Weekly/Daily 1-3 Mos•Middle Management
www.tfwallace.comTom Wallace & Bob Stahl
The Old TerminologyThe Old TerminologyThe Old TerminologyThe Old Terminology
Demand Supply
Volume
Mix
Demand Planning/Forecasting
Supply (Capacity) Planning
Sales & Operations Planning
www.tfwallace.comTom Wallace & Bob Stahl
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
Demand Supply
Volume
Mix
Master SchedulingSupplier and Plant Scheduling
Distribution Scheduling
Demand Planning/Forecasting
Supply (Capacity) Planning
Sales & Operations Planning
““Morphed” TerminologyMorphed” Terminology
www.tfwallace.comTom Wallace & Bob Stahl
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
Demand Supply
Volume
Mix
Master SchedulingSupplier and Plant Scheduling
Distribution Scheduling
Demand Planning/Forecasting
Supply (Capacity) Planning
Sales & Operations Planning
““Morphed” TerminologyMorphed” Terminology
www.tfwallace.comTom Wallace & Bob Stahl
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
Demand Supply
Volume
Mix
Master SchedulingSupplier and Plant Scheduling
Distribution Scheduling
Demand Planning/Forecasting
Supply (Capacity) Planning
Sales & Operations Planning
““Morphed” TerminologyMorphed” Terminology
www.tfwallace.comTom Wallace & Bob Stahl
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
Demand Supply
Volume
Mix
Master SchedulingSupplier and Plant Scheduling
Distribution Scheduling
Demand Planning/Forecasting
Supply (Capacity) Planning
Sales & Operations Planning
www.tfwallace.comTom Wallace & Bob Stahl
Sales & Operations PlanningNew Terminology
Sales & Operations PlanningNew Terminology
Demand Supply
Volume
Mix
Master SchedulingSupplier and Plant Scheduling
Distribution Scheduling
Demand Planning/Forecasting
Supply (Capacity) Planning
????????
www.tfwallace.comTom Wallace & Bob Stahl
Sales & Operations PlanningSales & Operations PlanningNew TerminologyNew Terminology
Sales & Operations PlanningSales & Operations PlanningNew TerminologyNew Terminology
Demand Supply
Volume
Mix
Executive S&OP
Master SchedulingSupplier and Plant Scheduling
Distribution Scheduling
Demand Planning/Forecasting
Supply (Capacity) Planning
www.tfwallace.comTom Wallace & Bob Stahl
The 5-Step Executive S&OP ProcessThe 5-Step Executive S&OP Process
Decisions &Updated
Game Plan
Step 1Data
Gathering
Step 2DemandPlanning
Step 3Supply
Planning
Step 4Pre-
Meeting
Step 5Exec
Meeting
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Conference PointerConference PointerConference PointerConference Pointer
The Five-Step Process
Dean Smetana, VP, Sanford/Sharpie
Bill Zimmerman, Manager, Sanford/Sharpie
10:00 Thursday – Level I
www.tfwallace.comTom Wallace & Bob Stahl
The 5-Step Executive S&OP ProcessThe 5-Step Executive S&OP Process
Step 1Data
GatheringActual
Demand, Supply, Inventory, & Backlog +Statistical Forecasts
and Worksheets
Management Forecast1st-pass spreadsheets
Step 2DemandPlanning
www.tfwallace.comTom Wallace & Bob Stahl
Conference PointerConference PointerConference PointerConference Pointer
Forecasting and
Demand Planning
Scott Harrison, VP, Valor Brands
11:10 Thursday – Level I
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Conference PointerConference PointerConference PointerConference Pointer
The Demand Management Game
Robert Burrows, Principal, On-Point Group
9:45 Friday– Level I
(double session)
www.tfwallace.comTom Wallace & Bob Stahl
The 5-Step Executive S&OP ProcessThe 5-Step Executive S&OP Process
Step 1Data
GatheringActual
Demand, Supply, Inventory, & Backlog +Statistical Forecasts
and Worksheets
Management Forecast1st-pass spreadsheets
Resource Requirements PlanCapacity Constraints
2nd-pass spreadsheetsStep 2
DemandPlanning
Step 3Supply
Planning
www.tfwallace.comTom Wallace & Bob Stahl
Conference PointerPointerConference PointerPointer
Supply Planning
Joe Shedlawski, Principal, Wyeth
2:15 Thursday – Level I
www.tfwallace.comTom Wallace & Bob Stahl
The 5-Step Executive S&OP ProcessThe 5-Step Executive S&OP Process
Decisions &Updated
Game Plan
Decisions, Recommendations,
Scenarios, & Agenda for Exec Meeting
Step 1Data
Gathering
End of Month
Actual Demand, Supply,
Inventory, & Backlog +Statistical Forecasts
and Worksheets
Management Forecast1st-pass spreadsheets
Resource Requirements PlanCapacity Constraints
2nd-pass spreadsheetsStep 2
DemandPlanning
Step 3Supply
Planning
Step 4Pre-
Meeting
Step 5Exec
Meeting
www.tfwallace.comTom Wallace & Bob Stahl
Conference PointerPointerConference PointerPointer
How to Conduct the
Pre-Meeting and Exec Meeting
Brian Harlan, Director
Johnsonville Sausage
3:45 Thursday – Level I
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Conference PointerPointerConference PointerPointer
Obtaining Top Management
Commitment and Participation
Terry Finnegan, Senior Business Manager
ImagePoint
10:00 Thursday – Level II
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Conference PointerPointerConference PointerPointer
Resolving Conflict and
Building Consensus
John Gallucci, Director, Gerber
11:10 Thursday – Level II
www.tfwallace.comTom Wallace & Bob Stahl
The 5-Step Executive S&OP ProcessThe 5-Step Executive S&OP Process
Decisions &Updated
Game Plan
Decisions, Recommendations,
Scenarios, & Agenda for Exec Meeting
Step 1Data
Gathering
End of Month
Actual Demand, Supply,
Inventory, & Backlog +Statistical Forecasts
and Worksheets
Management Forecast1st-pass spreadsheets
Resource Requirements PlanCapacity Constraints
2nd-pass spreadsheetsStep 2
DemandPlanning
Step 3Supply
Planning
Step 4Pre-
Meeting
Step 5Exec
Meeting
www.tfwallace.comTom Wallace & Bob Stahl
Question for PanelistsQuestion for Panelists
Your Process:
Same?
Different?
Hardest Part?
www.tfwallace.comTom Wallace & Bob Stahl
Executive S&OP . . .Executive S&OP . . .Executive S&OP . . .Executive S&OP . . .
• Is an executive decision-making process
• Balances demand and supply
• Deals with volume in both units and $$$
• Ties operational plans to financial plans: one set of numbers
www.tfwallace.comTom Wallace & Bob Stahl
Conference PointerPointerConference PointerPointer
Working with One Set of Numbers
Amy Mansfield, Manager, V&M Star
Melissa Takas, Financial Analyst, V&M Star
3:45 Thursday – Level II
www.tfwallace.comTom Wallace & Bob Stahl
Executive S&OP . . .Executive S&OP . . .Executive S&OP . . .Executive S&OP . . .
• Is an executive decision-making process
• Balances demand and supply
• Deals with volume in both units and $$$
• Ties operational plans to financial plans: one set of numbers
• Is the forum for setting relevant strategy and policy regarding demand and supply
www.tfwallace.comTom Wallace & Bob Stahl
Question for PanelistsQuestion for Panelists
What role does Top Management play in this process at your company?
www.tfwallace.comTom Wallace & Bob Stahl
Hard BenefitsHard BenefitsHard BenefitsHard Benefits
• Customer Service UP• Plant Productivity UP• Inventory DOWN• Obsolescence DOWN• Freight Costs DOWN• Order Lead Times DOWN• Supplier Lead Times DOWN• Time to Launch New Products DOWN
www.tfwallace.comTom Wallace & Bob Stahl
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S&OP Support for
New Product Launch
Craig Faulkner, S&OP, W. L. Gore
9:45 Friday – Level II
www.tfwallace.comTom Wallace & Bob Stahl
Soft BenefitsSoft Benefits
• Enhanced Teamwork• Structured Communications • Better Decisions with Less Effort and Time• Better $$$ Plans with Less Effort and Time• Greater Accountability• Greater Control • Window into the Future
Top Management’s Handle on the Business
www.tfwallace.comTom Wallace & Bob Stahl
Question for PanelistsQuestion for Panelists
Biggest Benefits: Hard
Soft
www.tfwallace.comTom Wallace & Bob Stahl
Question for PanelistsQuestion for Panelists
Implementation:
How Long?
Costs?
Toughest Part?
www.tfwallace.comTom Wallace & Bob Stahl
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How to Implement S&OP Successfully
Rick Hall, VP, Homac/Thomas & Betts
Bob Stahl, President, R.A. Stahl & Co
8:30 Friday– Level I
www.tfwallace.comTom Wallace & Bob Stahl
The Global ChallengeThe Global Challenge
“We are a series of organizations doing business locally, with intense global coordination.” –Percy Barnevik
Former CEOABB
Executive S&OP should support these dual objectives.
www.tfwallace.comTom Wallace & Bob Stahl
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S&OP in a Global Business
Alan L. Milliken, Manager, BASF
8:30 Friday– Level II
www.tfwallace.comTom Wallace & Bob Stahl
The Future of Executive S&OP: The Future of Executive S&OP: Growth FactorsGrowth Factors
The Future of Executive S&OP: The Future of Executive S&OP: Growth FactorsGrowth Factors
• Success breeds success
www.tfwallace.comTom Wallace & Bob Stahl
Adoption of New ProcessesAdoption of New ProcessesAdoption of New ProcessesAdoption of New Processes
There is a 15-25 year lag between the development of a new process and its widespread adoption.
Examples: MRPII/ERP, TQM/6SIGMA, JIT/LEAN
Executive S&OP Today
“The word gets around.”
www.tfwallace.comTom Wallace & Bob Stahl
The Future of Executive S&OP: The Future of Executive S&OP: Growth FactorsGrowth Factors
The Future of Executive S&OP: The Future of Executive S&OP: Growth FactorsGrowth Factors
• Success breeds success• Lean Manufacturing and S&OP
www.tfwallace.comTom Wallace & Bob Stahl
Toyota: Toyota: The Lean “Poster Child”The Lean “Poster Child”
Toyota: Toyota: The Lean “Poster Child”The Lean “Poster Child”
At Toyota, production is
pushed into Fin Goods Inv
(~ $2-3 Billion)
In many companies, production is
pulled by Customer Demand
In balancing demand and supply,many companies have a tougher job
than Toyota. Their solution: Executive S&OP.
www.tfwallace.comTom Wallace & Bob Stahl
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S&OP and Lean Manufacturing
Jeff Greer, VP, KVH Industries
2:15 Thursday – Level II
www.tfwallace.comTom Wallace & Bob Stahl
The Future of Executive S&OP: The Future of Executive S&OP: Growth FactorsGrowth Factors
The Future of Executive S&OP: The Future of Executive S&OP: Growth FactorsGrowth Factors
• Success breeds success• Lean Manufacturing and S&OP• Globalization• New users outside traditional manufacturing• S&OP specific software
www.tfwallace.comTom Wallace & Bob Stahl
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Technology as an S&OP Enabler
Larry Lapide, Director, MIT
10:55 Friday– Level II
www.tfwallace.comTom Wallace & Bob Stahl
The Future of Executive S&OP: The Future of Executive S&OP: Growth FactorsGrowth Factors
The Future of Executive S&OP: The Future of Executive S&OP: Growth FactorsGrowth Factors
• Success breeds success• Lean Manufacturing and S&OP• Globalization• New users outside traditional manufacturing• S&OP specific software• Greater financial integration, power and utility• A highly visible presence
in the executive suite
www.tfwallace.comTom Wallace & Bob Stahl
My PredictionMy PredictionMy PredictionMy Prediction
“Over the next 10 years, Executive S&OP will emerge as a primary tool in the Top Management tool kit.
“It will be widely viewed as indispensable for organizations needing to balance demand and supply in a complex, rapidly changing environment.”
Tom Wallace Chicago June 19, 2008
www.tfwallace.comTom Wallace & Bob Stahl
Thanks for ListeningThanks for Listening
To get copies of slides:
www.tfwallace.com/resources
will be up by Monday morning