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Four Points Sheraton Leominster, MA April 11, 2008 Bob Stahl R.A. Stahl Company www.tfwallace.com NSMG   Northeast Supply Management Group Executive S&OP What is it? How to implement it successfully?
The Mission ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Meeting World Class Standards In Getting to AND . . . Diminishing OR
The Four Fundamentals Mix ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Demand Supply Volume Demand Supply Demand Supply Demand Supply
The Evolution . . .  Most Detail Aggregate Only Exac Config. . .Precise Mat’l. . .# People. . .Capital Equip . . .Factory Space ,[object Object],[object Object],[object Object],Plant Scheduling/Pull MS S&OP / Rough Cut PTF 24 Months Time Volume Mix Detailed Forecasting & Master Scheduling Super MS
Sales & Operations Planning Demand Supply Volume Mix Executive S&OP Demand Planning Supply Planning Master Scheduling Demand Pull
What is Executive S&OP? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
An Essential Point . . . ,[object Object],[object Object],[object Object],Whether they be  traditional  or  Lean   techniques
Survival . . .  PTF Horizon Detail Suicide Quadrant Aggregate Only Quadrant ES&OP
Four Fundamentals Demand Supply MIX Volume
Step #1 Data Gathering End of Month Sales Actuals,  Statistical Forecasts & Supply  Actuals The Executive S&OP Process Step #5 Executive Meeting Decisions & Game Plan Step #4 Pre-S&OP Meeting Conflict Resolution,  Recommendations & Agenda for Exec. Mtg. Step #2 Demand Planning Management Forecast 1st-pass spreadsheets Step #3 Supply  Planning Capacity constraints 2nd-pass spreadsheets Heavy Lifting
ES&OP’s Place . . .  Strategic Planning Detailed Planning,  Scheduling & Execution Business Planning Disconnect!!! Executive Sales &  Operations Planning Turning Disconnected  Knobs?
Executive S&OP . . .  Executive S&OP A process to reconcile, agree  upon, & communicate  the company game plan Sales/Marketing (Units or $ by Family) Operations (Units/hours/ Material) Finance (Dollars) Product Dev. (New Product Issues) President
Process versus Personality Driven Organization Supply Chain Management Executive S&OP Managing the White Space Sales & Marketing Manufact- uring Product Design Finance Logistics & Distribution President/General Manager
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Monthly Time Commitment:  1.5 Hrs.  The Role of Top Management
The Real Issue . . .  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Successful  Implementation . . .   ,[object Object],[object Object],[object Object]
C - Software . . . ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
B - Data . . .  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Graphical Report
Validating Assumptions Assumption Sensitivity
A - People . . .  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Engaging Top Management ,[object Object],[object Object],[object Object],Risk
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Three Levels  of Commitment . . .  Low Risk
Implementation Path 1  2  3  4  5  6  7  8  9 Months Business Improvement Executive Briefing Go/No-Go #1 Kickoff Session Phase I Preparation
Getting Started Session Day #1 Day #2 Exec. Staff Champion Design Team Supporters Champion Design Team Supporters Design Team Education Planning ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Implementation Path 1  2  3  4  5  6  7  8  9 Months Business Improvement Executive Briefing Go/No-Go #1 Kickoff Session Phase I Preparation
Pilot Workload . . .  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Executive Briefing & Go/No-Go Decision #1 Phase I Preparation
Implementation Path 1  2  3  4  5  6  7  8  9 Months Business Improvement Live Pilot Demonstration Go/No-Go #2 Executive Briefing Go/No-Go #1 Kickoff Session Low Risk Low Cost Phase I Preparation Phase II Expansion  Phase III Financial Integration
Success Requires ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Decision Making (Sales Plans, Supply Rates, Order Backlogs, & Inventories) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],The Implementation Task :  Make  Executive S&OP  the Framework for Decision Making
Done Properly . . .  ,[object Object],[object Object],[object Object]
Making Change ,[object Object],“ In human affairs, the  willed future  always prevails over the  logical future .” Rene Dubos ‘ A Celebration of Life’ An essay
‘ The Books’
Thanks & Good Luck ! ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Executive S&OP

  • 1. Four Points Sheraton Leominster, MA April 11, 2008 Bob Stahl R.A. Stahl Company www.tfwallace.com NSMG Northeast Supply Management Group Executive S&OP What is it? How to implement it successfully?
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  • 5. Sales & Operations Planning Demand Supply Volume Mix Executive S&OP Demand Planning Supply Planning Master Scheduling Demand Pull
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  • 8. Survival . . . PTF Horizon Detail Suicide Quadrant Aggregate Only Quadrant ES&OP
  • 9. Four Fundamentals Demand Supply MIX Volume
  • 10. Step #1 Data Gathering End of Month Sales Actuals, Statistical Forecasts & Supply Actuals The Executive S&OP Process Step #5 Executive Meeting Decisions & Game Plan Step #4 Pre-S&OP Meeting Conflict Resolution, Recommendations & Agenda for Exec. Mtg. Step #2 Demand Planning Management Forecast 1st-pass spreadsheets Step #3 Supply Planning Capacity constraints 2nd-pass spreadsheets Heavy Lifting
  • 11. ES&OP’s Place . . . Strategic Planning Detailed Planning, Scheduling & Execution Business Planning Disconnect!!! Executive Sales & Operations Planning Turning Disconnected Knobs?
  • 12. Executive S&OP . . . Executive S&OP A process to reconcile, agree upon, & communicate the company game plan Sales/Marketing (Units or $ by Family) Operations (Units/hours/ Material) Finance (Dollars) Product Dev. (New Product Issues) President
  • 13. Process versus Personality Driven Organization Supply Chain Management Executive S&OP Managing the White Space Sales & Marketing Manufact- uring Product Design Finance Logistics & Distribution President/General Manager
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  • 24. Implementation Path 1 2 3 4 5 6 7 8 9 Months Business Improvement Executive Briefing Go/No-Go #1 Kickoff Session Phase I Preparation
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  • 26. Implementation Path 1 2 3 4 5 6 7 8 9 Months Business Improvement Executive Briefing Go/No-Go #1 Kickoff Session Phase I Preparation
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  • 28. Implementation Path 1 2 3 4 5 6 7 8 9 Months Business Improvement Live Pilot Demonstration Go/No-Go #2 Executive Briefing Go/No-Go #1 Kickoff Session Low Risk Low Cost Phase I Preparation Phase II Expansion Phase III Financial Integration
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Editor's Notes

  1. The mission of a commercial enterprise???? Can not longer compete on ONE thing! Getting to AND . . . Diminishing OR Demand Driven vs Supply Driven How to make Mfg a ‘competitive weapon’?
  2. < 2 HOURS PER MONTH
  3. • Even tho Phase #1 & #3 show not benefit; “Unintended Benefits”
  4. • Even tho Phase #1 & #3 show not benefit; “Unintended Benefits”
  5. • Even tho Phase #1 & #3 show not benefit; “Unintended Benefits”
  6. Simple does not = EASY!!
  7. • Doom & Gloom ? • Winners & Loosers yet to be established • Future can be bright • Urgent vs Important • Global Paradox -- LARGE vs SMALL
  8. - Who was at Tom Wallace’s Talk???