Taking action to build consensus and resolve conflict by David Hinchman. Presented during the 37th annual SAPICS conference and exhibition for supply chain professionals held at Sun City in South Africa

1. Taking Action to Build
Consensus and Resolve Conflict
Dave Hinchman - Deere & Company
Taking Action to Build Consensus and Resolve
Conflict

2. Agenda
• Knowledge leveling
• Common conflicts
• Techniques to avoid conflict
• Key take-aways
• Questions
S&OP

3. Introductions
Dave Hinchman
Mgr., JD-QPS & OF Integration
Enterprise Strategic Quality
Deere & Company
Current: Leading JD Quality & Production System for Supply Chain, Order Fulfillment
and Lean Manufacturing globally.
Previous Leadership positions: Operations, Mfg Engineering, Supply
Management, IT SAP, Production Planning , and Order Fulfillment.
Lead & Teach: APICS CPIM across JD, Operations & Supply chain courses globally ,
APICS Corporate Advisory Board
Education: BS Industrial Engineering - Illinois , MBA Iowa, CPIM, JD Six Sigma Black
Belt, Executive Education - MIT, Dartmouth, & Purdue

4. John Deere
1837….Started as a blacksmith shop
Integrity … Quality … Commitment … Innovation
Grand Detour, Illinois

5. John Deere Today
• Celebrated 175 years (2012)
• $37.8B revenue; 3.5 income (2013)
• Global expansion in BRIC countries
• 67,000 employees – almost half outside U.S.
• 74 manufacturing facilities in 16 countries
• Agriculture, turf, construction, forestry, power systems, parts, intelligent
solutions
Integrity … Quality … Commitment … Innovation

7. Our Customers
Committed to those linked to the land

8. S&OP
• What conflicts are you experiencing in Sales and
Operations Planning?

9. Common Conflicts
• Conflicting priorities
• Domination by one group
• Accountability
• Lack of attendance
• Timing of meetings
• Forecasts overstated
• Prod schedules under planned
What are some
techniques to avoid
conflict?

10. Differences in Focus – S&OP
Key – optimize business results, while achieving a prudent
balance between asset efficiency and customer
demand/availability.
Business Results
&
Asset Efficiency
Customer Demand
&
Availability

11. Differences in Focus – S&OP

12. Trade off Analytics
Conflicting Priority Exercise
- Place the star where the
focus current is and where
it should be

13. Trade Off Analytics
Where would you place the
star if you were:
– Marketing?
– Operations?
– Supply management?
– Finance?
What would the customer
want? Where do they fit in?

14. Trade Off Analytics
Key is to collectively agree as an S&OP Team on where
you currently are and where you need to be.

15. Role Play
• As a Partnership S&OP, team members need to
understand what others on the team do that helps move
the needle.
– In doing so, it becomes clear as a group, what levers to pull and
the ramifications of those levers.
– Avoid domination by 1 group
• Simulation Game like Fresh Connections and trade roles
(day in the life)

16. Attendance and Accountability
• Value in discussion for every group
• Metrics (KPI’s)
• Clear expectations in agenda (2-3 days prior)
• Top down driven
• Subs
– Huddle

17. Attendance and Accountability
• Track and trend attendance
• Capture action items
• Add virtual options; Video

18. Timing
• Timing of the meetings need to help and aid better
decisions.
• One of our divisions had to rethink Partnership S&OP, its
purpose, and where it best fit to support effective
business decision making and leadership reporting.

19. Timing
Pre-business
review / segment
meetings
Demand /
inventory review
with OF Mgrs &
Finance
Process
Business Review
Meeting
Partnership
S&OP Meeting?
MRP Update?
FM
FM

20. Timing
Demand Meetings
Business
Review
(Financial
Plan)
Supply Meetings
(PS&OP
production plan
by month)
Process
FM
Demand Due Diligence Supply Due Diligence
FinalProposed
Approved
FM
Thu < FME
MRP

21. Calendar Example
Sun Mon Tues Wed Thurs Fri Sat
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19
Final annual
demand passed
to OF
20
21 22 23 24 25
Pass Approved
to Finance &
System
Updates
26
Business
Review Meeting
27
28
Fiscal Month
End. Circle
Sunday.
29 30 31
Demand Process
Supply Process
ROW US/C
Inputs Due
PS&OP

22. Game - Demand Forecasting
If forecasts are overstated/production plan
understand
– Out of the different cross-functional groups, who can
do the best job forecasting their capabilities?
– Winner gets more emphasis or a predetermined prize.
– Promotes team building

23. Change Management
Ask these questions:
- What’s working well?
- What’s not?
- What do we need to improve on?
- Have you made a business impact?
• Make it part of the strategic planning process
• Review the key metrics (KPI’s) to ensure driving right
behavior
• CI yearly review of the process and facilitate better buy in
from the cross functional team
• Strive for Meeting excellence

24. Key Take Aways
What we hoped you got out of this…..
• Group focus – Trade off analytics
• Role play
• Attendance and accountability
• Timing
• Make it fun – Game of forecasting
• Change management

25. Questions?

26. Thank You