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Kinaxis  - Continuous S&OP for High-tech/Electronics Manufacturers
 

Kinaxis - Continuous S&OP for High-tech/Electronics Manufacturers

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Trevor Miles, director of thought leadership at Kinaxis, recently presented at the Sales and Operations Planning Summit this year. Here is the slide deck from his presentation. ...

Trevor Miles, director of thought leadership at Kinaxis, recently presented at the Sales and Operations Planning Summit this year. Here is the slide deck from his presentation.

To watch the recording of his presentation, visit: http://www.kinaxis.com/campaign/slides-continous-sop-for-high-tech-electronics/

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  • Henry Ford quote “If I had asked people what they wanted, they would have said faster horses.”The importance of this quote is that technology allows new methods of working and processes to develop. The standard S&OP process was originally developed over 30 years ago made full use of available technology. But this was long below the emergence of the desktop computer and laptops, and a long time before spreadsheets, let alone the internet. I think we can all recognize and acknowledge the changes that these technologies have brought to the work place. It is time to move to the next generation of S&OP processes. Fasten your seatbelts!We fully recognize that a great deal of S&OP is about process and people. That is why we have put so much time and effort into creating standard workbooks and processes to get you started quickly. Of course these workbooks and processes can be adapted by you to meet your specific needs.There is only so much you can do with spreadsheets. A better S&OP process requires better technology.
  • AND, not ORRapidResponse has a single data model and analytics that allow you to simultaneously considerDemand and SupplyFinance and OperationsVolume and Mix planningThis allows you to create not only a consensus plan, but a feasible plan too. The “one number” plan becomes a reality. Collaborative, not linearThe resolution of many supply chain issues transcend functional boundaries and can only be resolved by different functions working together. RapidResponse identifies the specific people best able to contribute to the resolution of the particular issue and brings them together in a collaboration environment so that changes made by one person are immediately visible to everyone else.Not only does this greatly speed up the decision process, it also ensures consensus.Event-driven, not waiting on the calendarWe all know that the speed of business has increased tremendously over the last 10 years. The macro-economic events over the past 3 years – oil spike in 2007, deep recession in 2008/2009, and the supply shortage issues in 2010 – have exposed inflexibilities in our supply chains. We can no longer afford to wait until the end of the month to evaluate how we did.We can no longer afford to wait until the end of the month to take corrective action.We have to sense market changes and respond more quickly, often requiring changes to the plan within the S&OP cycle. Effective, and efficientMany companies we talk to have a fairly well established S&OP process.But it is carried out with a great deal of manual effort and often takes a long time, often more time than is allocated to the S&OP cycle, usually supported by a bunch of “Excel jockeys”.While we all recognize the extreme flexibility of Excel, we also recognize the extreme fragility of a process that is supported by Excel.RapidResponse combines the flexibility of Excel with the robustness of an enterprise application.Plan quickly, collaborativelyMonitor plan continuously Assess future risk/opportunitiesRespond quickly when necessarySeamless Financial & Operational alignment

Kinaxis  - Continuous S&OP for High-tech/Electronics Manufacturers Kinaxis - Continuous S&OP for High-tech/Electronics Manufacturers Presentation Transcript

  • Copyright © 2011 Kinaxis Inc. All Rights Reserved. 1
  • Continuous and Collaborative S&OP Trevor Miles director, thought leadership, Kinaxis tmiles@kinaxis.com @milesaheadCopyright © 2011 Kinaxis Inc. All Rights Reserved.
  • Companies can’t predict thefuture,…build organizations that willsurvive and flourish under…any possible future.Source: McKinsey Quarterly, Dynamic management: Better decisions in uncertain times, December 2009 Copyright © 2011 Kinaxis Inc. All Rights Reserved. 3
  • …fixed annual planning andbudget processes areantithetical to timelystrategy setting and decisionmaking.Source: McKinsey Quarterly, Dynamic management: Better decisions in uncertain times, December 2009 Copyright © 2011 Kinaxis Inc. All Rights Reserved. 4
  • A volatile economy makestraditional budgetsobsolete before they’re evencompleted. New approaches: 1. Scenario planning with trigger events 2. Zero-based budgeting 3. Rolling forecasts 4. Quarterly budgetingSource: McKinsey Quarterly, Just-in-time budgeting for a volatile economy, Spring 2009 Copyright © 2011 Kinaxis Inc. All Rights Reserved. 5
  • ProcessPeopleTechnology Copyright © 2011 Kinaxis Inc. All Rights Reserved. 6
  • …[technology] … the web will changenothing until we use itfor that propose …Source: http://www.euansemple.com/theobvious/2011/1/20/does-the-web-change-everything.html Copyright © 2011 Kinaxis Inc. All Rights Reserved. 7
  • • Different skills/people• Different processes• Different results Copyright © 2011 Kinaxis Inc. All Rights Reserved. 8
  • S&OP – Balancing Competing Goals Goal: Make the financial budget. Top-down focus. Wants: Control and predictability of operations Forecast: The budget/annual operating plan FinanceGoal: Maximize Goal: Minimize supplyrevenue and market chain costs, often Demandshare Side inventory Sales and OperationsWants: Guaranteed Marketing Supply Wants: Minimumproduct availability Side demand uncertaintyForecast: Sales plan Forecast: Supply plan Supply Chain Goal: A feasible plan. Bottom-up focus Wants: Minimize risk and disruption Forecast: The demand plan Copyright © 2011 Kinaxis Inc. All Rights Reserved. 9 9
  • S&OP in the Overall Planning Process Business Tactical Strategy Planning S&OP Planning Execution FinancialDegrees of Freedom Capacity Information Sourcing Scenario Planning “black Inventory holes” Product Demand Lack of visibility Copyright © 2011 Kinaxis Inc. All Rights Reserved. 10
  • Integrated Business Planning the Goal Integrated Business Planning Business Tactical Strategy Planning S&OP Planning Execution FinancialDegrees of Freedom Capacity Scenario Planning Sourcing Inventory Product Demand Copyright © 2011 Kinaxis Inc. All Rights Reserved. 11
  • Traditional Planning Process SegmentationCopyright © 2011 Kinaxis Inc. All Rights Reserved. 12
  • Continuous and Collaborative S&OPCopyright © 2011 Kinaxis Inc. All Rights Reserved. 13
  • “If I had asked people what they wanted, they would have said faster horses” - Henry FordCopyright © 2011 Kinaxis Inc. All Rights Reserved. 14
  • Continuous and Collaborative S&OP AND, not OR Collaborative, not linear Event-driven, not calendar-driven Effective, and efficientCopyright © 2011 Kinaxis Inc. All Rights Reserved. 15
  • Copyright © 2011 Kinaxis Inc. All Rights Reserved. 16
  • Thank you! Questions?Copyright © 2011 Kinaxis Inc. All Rights Reserved.
  • Companies can’t predict thefuture, …build organizations thatwill survive and flourishunder …any possible future.Source: McKinsey Quarterly, Dynamic management: Better decisions in uncertain times, December 2009 Copyright © 2011 Kinaxis Inc. All Rights Reserved. 18
  • …fixed annual planning and budgetprocesses are antitheticalto timely strategy setting anddecision making.Source: McKinsey Quarterly, Dynamic management: Better decisions in uncertain times, December 2009 Copyright © 2011 Kinaxis Inc. All Rights Reserved. 19
  • A volatile economy makestraditional budgetsobsolete before they’re evencompleted. New approaches: 1. Scenario planning with trigger events 2. Zero-based budgeting 3. Rolling forecasts 4. Quarterly budgetingSource: McKinsey Quarterly, Just-in-time budgeting for a volatile economy, Spring 2009 Copyright © 2011 Kinaxis Inc. All Rights Reserved. 20
  • Watch my recorded presentation from the Sales and Operations Planning Summit here:http://www.kinaxis.com/campaign/slides-continous-sop- for-high-tech-electronics/Copyright © 2011 Kinaxis Inc. All Rights Reserved. 21