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One Version of the Truth, Driving S&OP from detailed planning tools, Freescale
This document discusses Freescale Semiconductor's efforts to implement a "one version of the truth" approach to sales and operations planning (S&OP). Previously, Freescale had disconnected planning processes that resulted in multiple inconsistent versions of demand and supply plans. To address this, Freescale integrated their tactical planning systems into their S&OP process to create common inputs and planning tools. This improved consistency and reduced manual work. While benefits have been achieved, opportunities remain to further optimize areas like scenario planning, planning cycle times and executive-level S&OP meetings. The ultimate goal is to increase supply chain agility through more accurate, timely planning and decision making.
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One Version of the Truth, Driving S&OP from detailed planning tools, Freescale
- 1. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. One Version of the Truth Driving S&OP from detailed planning tools January 28, 2011 Thomas Matthews Freescale Semiconductor
- 2. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 1 Agenda • Freescale Overview • Supply Chain Complexity • S&OP History • Multiple Versions of the Truth • One Version of the Truth • Future S&OP Directions
- 3. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 222 50+ years of innovation Leadership in growth markets Broad product & technology portfolio Deep customer relationships Flexible manufacturing strategy Significant R&D investment Talented, global workforce Solid financial position Freescale Semiconductor
- 4. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 33 Portfolio Solutions Driver Infotainment Chassis & Safety Powertrain & Hybrid Body & Security Security Appliances Base stations & Controllers Printers & Gateways Routers & Switches General Embedded Smart Books Sensors for Phones & Games RF Remote Controls eBooks Home Portable Medical Factory Automation & Drives Smart Meters, Smart Grids Appliance Control General Embedded
- 5. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 4 Supply Chain Complexity Internal Fab Internal Probe Internal Assembly Internal Test Source & Procure Customers Suppliers JITsExternal Fab External Probe External Assembly External Test Delivery Assurance Centers Source: WSTS BillionsofDollars
- 6. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 55 Internal Worldwide Manufacturing Asia Pacific/JapanEMEAAmericas Freescale Chandler Fab – 8” Chandler, AZ Freescale Oak Hill Fab – 8” Austin, TX Freescale Austin Technology & Mfg Fab – 8” Austin, TX Freescale Toulouse Fab – 6” Toulouse, France Freescale Kuala Lumpur Final Mfg- Kuala Lumpur, Malaysia Freescale Tianjin Final Mfg Tianjin, China Freescale Sendai Fab-6” Sendai, Japan Foundry / Subcontractor
- 7. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 6 S&OP Timeline Formal S&OP process established S&OP spreadsheet- based S&OP implemented in SAP APO Demand planning, tactical supply – demand match implemented in SAP APO SAP R3 Implemented S&OP process implemented using internal software Capacity feasible planning implemented Standardize & simplify Simplify
- 8. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 7 Disconnected Plans = Multiple Truths Supply – Demand Match Supply Statements Mid-term Plans Supply – Demand MatchSupply – Demand MatchSupply – Demand Match Demand Forecast Capacity Demand Forecast Capacity S&OP Supply – Demand Match Supply Statements Tactical Plans Capacity Demand Orders Tactical Planning Demand Orders
- 9. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 8 Motivation for Change Disconnected planning approaches = multiple versions of the truth Tactical Planning • Demand statement = orders, rules, management direction • Demand manually constrained • SAP APO for supply demand match • Demand is iterative process • Manually intensive S&OP • Demand statement = forecast • Demand unconstrained • Internal tool for supply demand match • Supply manually constrained • Supply demand match is iterative process • Manually intensive
- 10. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 9 Opportunity 2007 – 2008 re-engineering of Freescale’s core systems • Mantra of “One Version of the Truth” • Base S&OP processes off tactical planning systems
- 11. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 10 Current Process – One Version of the Truth Demand Orders Forecast Internal Requirements Prioritization Supply Work in Progress Capacity Statements Planning Parameters Supply – Demand Match Supply Statements Weekly Factory Schedules Monthly S&OP Monthly Excess Inventory Annual Operating Plan Weekly Scenarios
- 12. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 11 Current Process – Planning Systems Demand Backlog Forecast Internal Requirements Prioritization Supply Work in Progress Capacity Statements Planning Parameters Supply – Demand Match Supply Statements Weekly Factory Starts Monthly S&OP Monthly Excess Inventory Annual Operating Plan Weekly Scenarios
- 13. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 12 State of S&OP Benefits • Common inputs • Common planning tools • Consistent reporting • Tie between tactical – S&OP • Robust scenario planning • Reengineered roles Opportunities • Best-in-class planning data accuracy • Complexity – supply – demand match – scenario process • S&OP calendar / cycle time • Executive S&OP • System run time • Manual intervention
- 14. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 13 Scenario Capabilities What is Scenario Planning? • Scenario Planning is “what-if” analysis The two categories of scenarios • Demand and/or capacity scenarios • Event Driven scenario with supply changes Two planning horizons • Tactical • Midterm (S&OP) Flexible constraining • Standard constraining options • Flexible constraining options
- 15. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 14 S&OP Calendar Saturday Sunday Monday Tuesday Wednesday Thursday Friday Week-1Week1Week2Week3Week4 Manufacturing Requirements Statement Production PlanSupply – Demand Match Processing Supply – Demand Match Processing Order Plan Supply – Demand Match Processing Supply – Demand Match Processing Tactical Plans Tactical Plans Tactical Plans Tactical Plans Scenario Opportunity Scenario Opportunity Scenario Opportunity Demand Forecast Lock Demand Forecast Lock Demand Forecast Lock Demand Forecast Lock Demand Forecast Lock S&OP Meeting
- 16. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 15 Measuring Success – Supply Chain Agility • Anticipate – scenario runs complete successfully and are acted upon • Tie Out – disconnect resolution plans are quickly created and agreed upon • Be Aggressive – the time to resolve the disconnects meet management targets • Execute – disconnect resolution plans / milestones are completed per schedule • Make Timely Decisions – decision carryover
- 17. TM Freescale, the Freescalelogo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2011 Freescale Semiconductor, Inc. 16 2011 Opportunities • Extend S&OP process; weekly – monthly – quarterly process • Improve rules / data accuracy • Reduce manual intervention • Improve speed of decision making • Get results faster • Enhance scenario capabilities
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