SIOP (Sales Inventory & Operations Planning)
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This slides gives you the concept of SIOP(Sales Inventory & Operations Planning) and also the difference between traditional approach and SIOP approach.
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SIOP (Sales Inventory & Operations Planning)
- 1. SIOP – LM Lakshmanan Expansion up to you
- 2. Old Vs New Source: Slide Share
- 3. SIOP – A Balancing Act SIOP Process Demand Supply Demand Forecasts Actual Orders Supply Orders Resources/ CapacityInventory Source: APICS
- 4. Continuous Improvement Change Management SIOP Foundations of Successful SIOP Tiered Planning Horizon Integrated Sub-Process Leader- ship Account- ability Deep Analytics Perfor- mance Metrics Grids and Graphs Source: APICS
Editor's Notes
- Instructor Notes: Begin by stating that the main goal of the S&OP process is balancing marketplace demand and resource supply. If demand exceeds supply, the company will be unable to meet marketplace requirements for goods and services. If demand is less than supply, then the business will suffer excess costs in the form of excess inventories and suboptimized assets. As illustrated in Visual 9, the demand side of the balance consists of two elements: demand forecasts and actual customer orders. The supply side of the balance consists of inventory, supply orders, and the firm’s resources and capacities. The planning challenge is to keep the demand side and the supply side synchronized at all times. Meeting this challenge is not easy. As variability in demand and the capability of productive resources occurs, managers must be constantly reviewing their plans to ensure they support the demand and supply realities surrounding them. S&OP is the first step in the planning process that must be used to quickly identify variations occurring on the aggregate level before detailed departmental plans can be revised and coordinated.
- Instructor Notes: Begin by briefly introducing the structure of a successful S&OP program. Mention that at the foundations are change management and continuous improvement. State that there are 6 pillars supporting the S&OP roof: Tiered planning horizon Integrated sub-processes Leadership accountability Deep analytics Performance metrics Grids and graphs Conclude by stating that the rest of the presentation will focus on these eight S&OP foundational components.