s&op pim

7/21/2019 S&OP PIM

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S&OP

Sales & OperationsSales & Operations

PlanningPlanning• Dr. Shehzad KhanDr. Shehzad Khan

• Mr.FawadMr.Fawad

• Mr.Hammad AliMr.Hammad Ali

• Mr.Saim ZafarMr.Saim Zafar

PresentedPresented

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7/21/2019 S&OP PIM


S&OP

• Introduction

• Why S&OP

• Objectives

• Data Flow

• Supply Planning Process

• Reconciliation

• S&OP Input

• S&OP Output

• !odus Operandi

7/21/2019 S&OP PIM


S&OP

Statement ofStatement of

intentintent

Sales and Operation PlanningSales and Operation Planning

"he process by which an organi#ation will lead andrun the business through $onthly structured reviewsat all locations %ocusing on strategy per%or$anceand gap analysis with $anage$ent attention on ' ()' $onth hori#on*

+ ,ollaborative and cross(%unctional process

that align an organi#ation around a singlesales inventory and production plan

7/21/2019 S&OP PIM


S&OP

7/21/2019 S&OP PIM


S&OP

Accurate and timely commitments

Shorter lead times

Flexibility

Product differentiation

Dedicated inventory

Visibility into the supply chain

High quality

Automation

o!est costs

Customers are demanding:

"oo much inventory

#nventory in the !rong place

$rdering the !rong inventory

%issing delivery dates

osing orders

Shipping the !rong products#ncreased expediting costs

osing customers

#ncreased obsolescence

Increasing business risks of :

#nventories

Ability to promise

&lobal suppliers

Forcing businesses to better manage:

Supply'Demand

Forecasts

(ycle time

Stoc)ing policies

V%#'S%# processes

*eplenishment

7/21/2019 S&OP PIM


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S&OP

7/21/2019 S&OP PIM


Ob%e"ti$es ofS&OP

• ,onsensus on !anaging .aps*

• .reater accountability o% individual plans* • Deter$ination o% resource capacity needed*

• +chieve the business plan and guide strategic thin9ing*

• -nsure that operating and :nancial plans are integrated

realistic and synchroni#ed*

• ,reate O0- co$pany ga$e plan 5 single set o% nu$bers*

S&OP

7/21/2019 S&OP PIM


S&OP

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,apacity ,onstraints

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0PI Report+llocation Decisions1usiness DecisionsPolicies & .uide lines

+pproved Supply plan

!aster +rrivals

Schedule+pproved Sa%ety stoc9

Process is designed to %acilitate two wayco$$unication throught the supply chain

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7/21/2019 S&OP PIM


S&OP

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7/21/2019 S&OP PIM


S&OP

De$onstratedPer%or$ance

Internal & -<ternalSupply ,hain

Seasonality Pattern

Fle< PotentialFle< Potential

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7/21/2019 S&OP PIM


S&OP

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Demand!ss#es Arising

,ountry Wide,ountry Wide

Project IssuesProject Issues

+rising+risingFinancialFinancial

-valuation o%-valuation o%

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StrategyStrategy

Per%or$ancePer%or$ance

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ReCuiredReCuired

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7/21/2019 S&OP PIM


S&OP

7/21/2019 S&OP PIM


S&OP

Fo"#s on what isFo"#s on what is

"hanging"hanging

• onthly regeneration of plan over the rolling horizon allows + A greater understanding beyond the number – assumption & sensitivities

+ Operational and financial implications

+ What- if analysis

+ anaging change and required decisions

• nformation for decision ma!ing not spreadsheet data dump ""

7/21/2019 S&OP PIM


S&OP

ole Of S&OP +as9 +eamole Of S&OP +as9 +eam

• "o put in place a sustainable S&OP process to run the

co$pany and to $eet the reCuire$ent o% the integratedS&OP Process

• "his will involve

,hanging the way o% wor9ing o% the senior tea

2nderstanding the reCuire$ents o% the S&OP process

I$ple$enting new tools

• ,reate discipline planning culture based on $aintaining a

realistic one sett o% nu$bersE over )'$onth hori#on

7/21/2019 S&OP PIM


S&OP

#ts all about collaboration

s&op pim

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