7/27/2016
SALES AND OPERATIONS PLANNING Dick Ling
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Sales and Operations Planning • It’s Origin • It’s Evolution • Four Laws and 14 Principles • Success Factors • Why is it Important? • Why Hasn't it Been More Successful • DDS&OP ‐‐Tactical S&OP
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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We coined the term S&OP ‐ When & Why? • Ollie Wight passed away in 1983 • I was teaching the Top Management Class • General Manager stopped me after class • “I am not interested in Production Planning ‐ I came up through Sales and Marketing”
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
BUSINESS PLANNING
PRODUCTION PLAN
MASTER PRODUCTION SCHEDULE
FORECAST
MATERIAL REQUIREMENTS PLANNING
CAPACITY REQUIREMENTS PLANNING NO
REALISTIC? YES EXECUTING CAPACITY PLANS
EXECUTING MATERIAL PLANS Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Manufacturing Planning and Control Systems ‐ 1980’s
BUSINESS PLANNING SALES AND OPERATIONS PLANNING NEW PRODUCT PLAN
AGGREGATE SALES PLAN
FINANCIAL PLAN
PRODUCTION PLAN
RESOURCE PLANNING
RESOURCE PLANNING
NEW PRODUCT SCHEDULE
RESOURCES
DETAILED SALES PLAN
MARKETING
SCHEDULE MILESTONES
SALES
EXECUTION
EXECUTION
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
INVENTORY/ BACKLOG
MASTER SCHEDULING
DETAILED MATERIAL/ CAPACITY PLANNING
PLANT & SUPPLIER SCHEDULING
EXECUTION
Sales and Operations Planning is the integrated business planning process that provides management the ability to strategically direct its businesses to achieve competitive advantage on a continuous basis by integrating customer focused marketing plans for new and existing products with the management of the supply chain. 1980’s Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Sales and Operations Planning The eyes of Management Driving, Overseeing and Monitoring the Supply Chain
Warehouse / Distributor
Factory / Plant Supplier Ship to
Customer
Sister Plants Copyright © 2016 Richard C. Ling Inc. All Right Reserved
People
1988
S&OP Creation
DEMAND MEETING
Pre‐S&OP
Gather Data
S&OP Meeting
SUPPLY MEETING
This terminology was a mistake Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Big Fish is the european partner of Ling‐Coldrick
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The S&OP process has evolved over the last 20 years, is more universally accepted and is finally having the success and respect it deserves.
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Sales and Operations Planning 1993 Ling/Coldrick Model Left to right Flow MANAGING THE PORTFOLIO & NEW ACTIVITIES
MANAGING DEMAND
INTEGRATED RECONCILIATION WITH BUSINESS PLAN
MANAGEMENT BUSINESS REVIEW
MANAGING SUPPLY
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Sales and Operations Planning 1998 Ling/Coldrick Model Breakthrough S&OP Implementation Right to Left 3. MANAGING THE PORTFOLIO & NEW ACTIVITIES
4. MANAGING DEMAND
2. INTEGRATED RECONCILIATION
1. MANAGEMENT BUSINESS REVIEW
5. MANAGING SUPPLY Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Breakthrough Sales and Operations Planning‐‐‐Right to Left MANAGING THE PORTFOLIO & NEW ACTIVITIES
MANAGING DEMAND
MANAGING SUPPLY
INTEGRATED RECONCILIATION WITH BUSINESS PLAN
MANAGEMENT BUSINESS REVIEW
Strategy Decisions Direction If it isn’t correct in the aggregate Bi‐Directional then it will never be correct in the detail!
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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There are 4 laws with 14 supporting Principles that I would like to share with you that will help to you to understand S&OP.
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Four Laws of S&OP I. The Law of CHANGE • No matter how hard you resist or deny it, things are going to change, often unpredictably so II. The Law of PERSPECTIVE • It all depends on ‘where you are coming from’ III. The Law of Strategy • Every Business has a Strategy. You either develop it, or it exists by default IV. The Law of ENTROPY (Building and Maintaining Momentum) • Unless energy is expended to counter it, things become random, break‐ down, over time Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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I. The Law of Change – Managing Change 1. Effective decision‐making is all about making sense of change. Changes should be very visible in the process. The assumptions behind the data and decisions help us to understand and communicate change 2. The future will be different from the past 3. Information should be roughly right rather than precisely wrong 4. Information needs to be prepared and presented for management decision making. Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Original Version of S&OP DEMAND PLANNING
SUPPLY PLANNING
PRE S&OP MEETING
The data have always been important
S&OP MEETING
Product Family – Dining Tables PAST MONTHS SALES
Typical S&OP Agenda:
• Sales Review • Inventory / Order Book • Supply Plan • New Products • Financials
-3
-2
FUTURE MONTHS
-1
1
2
3
4
5
6
7
8
9
ANN
PLANNED
1200 1200 1200
1200 1200 1200 1200 1200 1200 1200 1200 1200 14400
PREVIOUS
1211 1197 1200
1200 1200 1200 1200 1200 1200 1200 1200 1200 14408
ACT/PROJ
1211 1197 1257
1225 1250 1250 1250 1250 1250 1250 1250 1250 14890
DIFF
11
-3
57
CUM DIFF
11
8
65
25
50
50
50
50
50
50
50
50
490
PRODUCTION PLANNED
1200 1200 1200
1200 1200 1200 1200 1200 1200 1200 1200 1200 14400
PREVIOUS
1195 1202 1200
1200 1200 1200 1200 1200 1200 1200 1200 1200 14397
ACT/PROJ
1195 1202 1197
1200 1200 1400 1250 1250 1250 1250 1250 1250 14894
DIFF
-5
2
-3
CUM DIFF
-5
-3
-6
600
600
600
0
0
200
50
50
50
50
50
50
494
600
600
600
600
600
600
600
600
600
600
INVENTORY PLANNED PREVIOUS
584
589
589
589
589
589
589
589
589
589
589
589
589
ACT/PROJ
584
589
529
504
454
604
604
604
604
604
604
604
604
DIFF
-16
-11
-71
-96 -146
4
4
4
4
4
4
4
4
1.75 1.56 2.08 2.08 2.08 2.08 2.08 2.08 2.08
2.08
COVER (WKS)
2.06 2.07 1.83
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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The foundation of good decision making in any business process is the quality and timing of necessary information. BUT….what information is relevant?
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
What does your future look like?
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Future Portfolio Model
0
2 YEARS
4 YEARS
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Which of the 5 portfolio models best describes your market segment, brand or business unit? 4
2
3 0
2 YEARS
0
4 YEARS
0
1
2 YEARS
2 YEARS
4 YEARS
4 YEARS
5 Line Extension and Promos Existing Portfolio
0
2 YEARS
4 YEARS
0
2 YEARS
4 YEARS
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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II. The Law of Perspective –Integration and Alignment 5. S&OP Integrates and reconciles different views and different levels of aggregation 6. Decision‐making is multilingual (eg. $, Units, Shares, Capacity, etc). The process provides the necessary translation, integration and reconciliation. 7. Cross‐functional behavior is the key to integrated decision making. This becomes even more important in global, regional and country businesses. 8. There are many paradoxes in driving integrated decision making ‐ we need to strike a balance Copyright © 2016 Richard C. Ling Inc. All Right Reserved
SALES PLAN ($/UNITS)
FINANCIAL PLAN ($)
SALES & OPERATIONS PLANNING
PRODUCT DEVELOPMENT PLAN (HRS/DATES)
PRODUCTION PLAN (HRS/UNITS LBS. SQ.FT. GAL. DOZ. ETC.)
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Multiple views of Management Objectives / Strategies / Expectations
CONGRUENCE Marketing
Sales
History External Factors Product Plans Marketing Plans Promotion Copyright © 2016 Richard C. Ling Inc. All Right Reserved Pricing
Distributor Territory Plans Customer Plans Market Channels Incentives Sales Plan
The Product Pyramids Sales & Marketing Global Business Regional Business
Manufacturing
Volumes and Financials
Global Business
New Product
Country Business
Plant Manufacturing Resource
Product Family
Operating Model
Product Line
Products/SKU
Demand
Supply Inventory
SKU
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Demand & Supply through Life‐cycle Penetration & Distribution Customer Investment and Responsiveness
Profit & Cash Maximisation Investment Effectiveness and Efficiencies
Options to extend/ maximise value
Diffusion & Adaptation Consumer Investment and Responsiveness Discovery & Adoption R&D/Mktg Investment and Responsiveness
Development
Acceptable Forecast Range
Launch
Growth
Maturity
Decline
Exit
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Your Organizational Structure will Shape your S&OP process
GLOBAL
REGIONAL (e.g. EUROPE)
COUNTRY
Activities that need to be managed and decisions that need to be taken GLOBALLY
Activities that need to be managed and decisions that need to be taken REGIONALLY
Activities that need to be managed and decisions that need to be taken LOCALLY
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Week 1
Week 2
Week 3
Week 4
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COUNTRY CUSTOMER
REGION
GLOBAL
Global Model Example 1 GLBL NEW PRODUCT REVIEW
1 REGION NEW PRODUCT REVIEW
4 REGION DEMAND REVIEW
5 PLANT SUPPLY REVIEW 2 COUNTRY NEW PRODUCT REVIEW
4 GLBL DEMAND REVIEW
7 INTEGRATED RECONCILIATION (GLOBAL)
9 SENIOR MANAGEMENT REVIEW GLOBAL
5 GLBL SUPPLY REVIEW
6 INTEGRATED RECONCILIATION (COUNTRY/REGION)
8 SENIOR MANAGEMENT REVIEW COUNTRY/ REGION
3 COUNTRY DEMAND REVIEW Copyright © 2016 Richard C. Ling Inc. All Right Reserved
The PROCESS and the PLAYERS must change as the business conditions evolve And so must the operating model!! Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Breakthrough Sales and Operations Planning‐‐‐Right to Left MANAGING THE PORTFOLIO & NEW ACTIVITIES
MANAGING DEMAND
INTEGRATED RECONCILIATION WITH BUSINESS PLAN
MANAGING SUPPLY
MANAGEMENT BUSINESS REVIEW
Strategy Decisions Direction
Bi‐Directional Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Who Makes up the Integrated Reconciliation Team Who Needs to Collaborate?
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Integrated Reconciliation Team Membership Sales Supply Chain Supplier Resources New Product Development
Marketing Manufacturing Finance
One of these is the team Leader/Coordinator There are permanent team members and temporary members who are included in the process as required This team should be empowered, however they also require a shared consciousness (Team of Teams) in order to achieve alignment. Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Making Changes within a Relevant Range Requires Collaboration Left to right *Demand change *Distribution channel change *New product timing/volume change *Capability change‐up or down *Capability constraint or underutilized *Triggers from cumulative variations *Life cycle modification
Right to left *Strategy change *Business Plan change *Priority change (Product, Customer, Region/Territory, Market Segment) *Direction to explore opportunity *Decisions made as a result of the process 32
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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What is Bidirectional Integrated Reconciliation? Interactive
Emerging Issues
Financial Impact & Analysis
Options/ Operating Model Performance Input to Business and Monitoring Contingencies Parameters Strategic plan OPTION 9
STRATEGY
OPTION 8 OPTION 7
•Review global performance outlook and differences between business strategy, budget and forecast. Reconcile gaps between new activities, demand, supply and financial targets •Highlight impact of changes (units and financials), gaps, opportunities and major MANAGING integration issues over a 2 Year‐end horizon NEW ACTIVITIES •Develop scenarios considering the interdependencies and trade‐offs that drive overall business performance and evaluate them against the current operating model. MANAGING •Redirect issues that should have been resolved elsewhere, in line with organizational MANAGEMENT DEMAND BUSINESS accountabilities REVIEW •Make recommendations and/or decisions for alternatives with business impacts for MANAGING changes to the operating model SUPPLY •Elevate to senior management major issues and opportunities for consideration OPTION 6
GAP
OPTION 5
OPTION 2
Euro Total
OPTION 3
European Business Summary
OPTION 4
OPTION 1
LATEST VIEW
0
2 YEARS
5 YEARS
Europe - Total Business Margin $ MM's Gross COGS 2000 1687 1800 1600 1400 1084 1060 1200 1000 800 600 980 400 169 200 378 370 68 0 02Actual 03Current03 LQR 03 Plan View
1796
Brand X
Austria
Belgium
Germany Greece
Ireland
Portugal
Italy
Spain
Brand Y
France
Holland
Norway
Switzerland
Brand Z
Inventory
KPIs 1-3
KPIs 4-6
UK
$ MM's Gross Margin European Rolling Quarterly Summary COGS 500 473 468 430 450 425 400 350 285 274 274 274 270 256 300 255 256 250
200 150 245 245 245 245 100 653 98 96 95 96 50 96 89 89 89 0 03 Plan 04 LQRPlan Q1 Q1 Current LGR Q2 Q2 View Current LQR Q3 Q3 View Current LQR Q4 Q4 View Current Forecast View Q2 Plan Q3 Plan Q4 Plan Q1
Major Assumptions (In ata) Price rise q303 75% certain Supply does not inclunewly acquired plant Italy Based on IRR total growth of 8%…….
Vulnerabilities and Opportunities Capacity constrained. If erises by 12% stockouts occur qtr 3 03 Low stock position leads to
Major Changes thiiteration Timing of price rise brought forward by 3 weeks t Tesco range review date …….
Emerging Issues and Gaps Supply at near fullcapacity. Overtime cannot uaranteat Avezzano over Christmas ……
Decision Made in PreviousSteps Low service rates will be erated Reduce the bridge buying ading price rise ……
Decisions Required – endations & Costs Phase marketing spend in 0bolster demand through price rise. Pull £1.5m in media from qtr 4 03 to qtr 3 03
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Preparing information for the Management Business Review ‐‐ Volumes, Financials and the Story in One Sheet or Screen Ongoing Planning Assumptions Major Assumption / Changes In this Cycle Emerging Issues Decisions made in Previous steps Risks and Opportunities Decisions Made & Required Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Product Family: WIGITS I &II FY05 Shipments 385 FY06 July Demand Plan 430 FY06 June Finl. Forecast 354
FY05 Actual Build 399 FY06 August Supply Plan 408 FY06 Ops Budget Plan 450
WW Canto - Demand (FY06) 100 90 80
FY06 FY07 FY06 June Demand Plan 430 447 FY06 July Supply Plan 408 481 FY06 Jun Fin FC/FY07 Fin Pln 354 378
70
60
50
50
40
40 30 20 10 0
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
20
44
26
43
28
35
29
25
35
20
43
37
FY06 July Demand Plan
27
7
6
31
31
32
26
19
61
29
69
FY06 June Finl. Forecast
22
22
22
27
27
28
21
21
21
47
48
*Actual
China and Taiwan registration estimated by end of FY07
80 60
20
40 20 0 FY06 Q1 FY06 Q2 FY06 Q3 FY06 Q4 FY07 Q1 FY07 Q2 FY07 Q3 FY07 Q4
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
FGI Inventory
19
34
26
18
24
18
9
5
3
15
15
-9
FY06 June Demand Plan
40
94
106
190
112
110
111
114
92
FY05 Actual Build
35
55
31
21
26
34
30
34
33
26
31
43
FY06 July Supply Plan
52
83
95
178
143
112
112
114
48
FY06 August Supply Plan
28
22
2
19
39
25
17
15
63
41
69
68
FY06 Jun Fin FC/FY07 Fin Pln
66
82
63
143
82
91
100
105
High volume for Wigit lines still causing serious constraints in test. Chassis availability for Wigit II is still an issue. Supplier concern about meeting current requirements for September.
2.
Emerging Issues and Gaps (in Data) 1. 2.
1.
Canto A Regular, 185
Copyright © 2016 Richard C. Ling Inc. All Right Reserved Canto II Internal, Canto A RUO & Refub, 34
Wigit II mix is still not stable and could create supply issues. Production still unable to meet plan. Production resources will be stretched in September.
Major Changes this Cycle (In Data)
FY06 WW Canto Demand Brea kdow n
38
0
Jan
Based on current inventory and open purchase orders the assumption is that the current Wigit supply will satisfy current demand of 48 units (Aug 06 to Aug 07). No additional demand can be satisfied. Canto II End User (incl. Inv.), 173
120
Dec
1.
Japan Registration approved to sell Canto II in August.
140
Nov
1. Wigit II Launch schedule US IVD Clearance – estimated Sep 06
160
100
Risks and Opportunities (not in Data)
180
Oct
Major Assumptions (In Data)
WW Canto - Demand & Supply (2 year end) 200
30
10
FY05 Shipments
2.
WW Canto - Supply (FY06) 80
60
70
*Actual
SAMPLE
2.
Last Month’s statement (Current Wigit I Demand from July to August 07 is 45 units. No additional Wigit I can be built based on material availability.) Europe increased Wigit II demand by 16 units for the period of August and September.
Decisions Made During this Cycle 1.
Strategy about Wigit II Demo units is that new builds will take priority unless otherwise defined by US Sales and Marketing leadership.
Decisions Required Recommendations & Costs 1.
For the remaining Wigit II Demo units we need to decide if additional material be purchased for remanufacturing.
EU 45% CA 2%
AP 10%
JP 6% NLA 1%
US 34%
SLA 2%
FY06
Pg 35
If you have to look at last month’s S&OP report to understand what is happening, you don’t have the right data.
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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III. The Law of Strategy ‐ Delivering on Your Objectives 9. Every Business has a strategy ‐ It is either crafted or exists by default 10. Begin with the end in mind – Scope and design the process from right‐to‐ left 11. Connect & Align Strategy and Tactics ‐ Support your Strategic differentiation Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Principle 11 – S&OP Integrates & Aligns Strategy and Tactics • Strategic Direction and Consequences shape the required S&OP process and behaviors
STRATEGY / TACTICS / OPERATIONS
OPERATING MODEL & TACTICAL PLANNING
Daily/Weekly Fiscal Year
BUSINESS PLAN
24 months
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
STRATEGIC PLANNING
3‐5 years
Change
Change
S&OP • S&OP deploys Strategy and defines the required operating models
• S&OP provides an ongoing reconciliation between Tactical/Operating relevant range and Business/Strategic relevant range • Reconciliation drives Business Plan updates
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Bringing Together Different Views ‐ Alignment & Integration of All Strategies in the Business 3PL’s
Suppliers
Sales
Customers
Manufacturing
Operations Ops Strategy
Overarching Business Strategy Aligning & Integrating supporting strategies Financial Strategy
GTM Strategy
Innovation Strategy
Marketing
R&D
Finance Shareholders Copyright © 2016 Richard C. Ling Inc. All Right Reserved
IP Business Partners Development
Crafting the Annual Business Plan Companies that have a solid S&OP process find it much easier and to perform the Annual Business Planning process and the results are improved
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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However good our research may be, we shall never escape from the ultimate dilemma that most of our knowledge is about the past, and all our decisions are about the future Ian Wilson
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
IV. The Law of Entropy – Building & Maintaining Momentum (Ongoing Learning) 12.Integrated Decision Making (S&OP) needs a Framework – Too much structure is constraining, some structure is liberating. You need a structure tailored to your needs, and where specific decisions should be made. 13.An Aggressive Schedule to accelerate Learn‐by‐doing and proper self assessment will yield the best results. 14.New processes are important, new tools and systems may be needed, but making change stick and delivering sustainable results is about PEOPLE
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Principle # 13 – An aggressive schedule to accelerate Learn‐by‐ Doing and proper Self‐Assessment will yield the best results. • Learn‐by –doing avoids the temptation to try to ‘Design the perfect solution’ before getting started. • Learn‐by‐doing accelerates learning by making it ‘real’ and allows people to engage with, experience, adopt and adapt new things. • Self assessment with a continuous improvement mindset facilitates Learn‐by‐doing • Learn‐by‐doing gets results faster. • Tangible Results within 6 months of 1st iteration.
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Making the Transition ‐ Benefits Within 6 months of 1st Iteration ‐ What benefits have we achieved? • customer service • forecast accuracy • production adherence • inventory • obsolescence
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Making the Transition ‐ Assessment • Are participants convinced of its value? • What activities can we now stop doing? • What lessons have we learned? • How quickly can we roll it out if it is valuable? • How successful has behavior change been? • How can we simplify and streamline? • How can we automate data consolidation through ERP system? • What level of effort does this process require? 45
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Principle # 14: New processes for S&OP are important, new tools and systems are definitely needed, but making change stick and delivering sustainable results is about PEOPLE PEOPLE As well as the people ‘resource’ – numbers of people, right people: right places – the Values, motivation, capability and behaviours of the organisation The ‘Organisational DNA’ that encodes how an Organisation works.
TOOLS The apparatus and instruments we provide to get the job done. An organisations means of doing things.
PROCESS The integration of tasks and activities at macro and micro level - that when sequenced and combined, add value. The way work gets done
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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What are the critical success factors for S&OP? • Plan • Education • Performance Measurements • Business Planning
• Do • Implementation Methodology ‐ Learn by Doing • Right to Left ‐ Strategy Driven • Financial Integration ASAP
• Check • Roughly Right • Left to Right – Control, Measure and Adapt • Critique of the process—Self Assessment
• Act Copyright © 2016 Richard C. Ling Inc. All Right Reserved • Integrated Reconciliation Drives the Process
Why is S&OP Important? • No better way to manage a company • Empowers people • Enables sustainable success • Provides benefits for company management, it’s people and it’s shareholders.
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Why Hasn’t S&OP Been More Successful? • Lack of Understanding and Education • Academia has not supported S&OP • Literature was slow to develop • Lack of Software Support • Lack of Compelling Success Stories • Lack of Management Leadership
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Today we have an entirely different situation and there is great hope for the future
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7/27/2016
How does all this fit together?
S&OP OPERATING MODEL & TACTICAL PLANNING
Daily/Weekly
BUSINESS PLAN
Fiscal Year
STRATEGIC PLANNING
24 months
3‐5 years
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
How does all this fit together?
S&OP STRATEGIC PLANNING
Daily/Weekly
Fiscal Year
24 months
3‐5 years
Copyright Demand Driven Institute & Richard C. Ling Inc – all rights reserved Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Strategic Business Management
Tactical Flow Management Tactical Relevant Range (Hourly, Daily, Weekly)
How does this fit together? Actual orders
Strategic Relevant Range (Annually, Quarterly, Monthly)
DDS&OP
Model Parameter Management Model and part parameters
Demand Driven Operating Model (DDMRP, DDDRP, Demand Driven Scheduling & Execution)
Demand Driven Variance Analysis
S&OP
Plan Parameters
Strategic Direction
Innovation Strategy
Strategic Planning Business Plan (financial expectations)
Demand Driven Model Projections
Overarching Business Strategy Aligning & Integrating supporting strategies
Strategic Options & Recommendations
GTM Strategy
Financial Strategy
Operations Strategy
Measure, Adapt, Project & Innovate Copyright Demand Driven Institute & Richard C. Ling Inc – all rights reserved Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Sales and Operations Planning definition Sales and Operations Planning is the integrated business process that provides management the ability to strategically direct its businesses to achieve competitive advantage on a continuous basis by the protection and promotion of return on investment. Product innovation, customer focused marketing plans for new and existing products, operations strategy and the financial strategy are managed on a continuous basis by an integrated reconciliation team to enable the company to sense, adapt and innovate successfully across the supply chain. Copyright Demand Driven Institute & Richard C. Ling Inc – all rights reserved Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Roughly Right is Better than Precisely Wrong!
Copyright © 2016 Richard C. Ling Inc. All Right Reserved
Thank You for allowing me to share my thoughts with you. If you would like to discuss anything Contact me at Dick Ling
[email protected] +1 (336) 214‐5911 Copyright © 2016 Richard C. Ling Inc. All Right Reserved
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Thank you!
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