APICS Introduction to Sales and Operations Planning (S&OP

35 Pages·2015·1.18 MB·English

by  Apics, Inc.

APICS Introduction to Sales and Operations
Planning (S&OP)

26 Feb 2015 Vancouver PDM

Roberta McPhail
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Introductions – Presenter
Roberta McPhail
Educator/Consultant
25 plus years in SCM
Introduce
yourself! Master CSCP Instructor
Certifications
CPIM, CIRM, CSCP, CDDP, PMP
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Presentation Agenda
•
S&OP Definition
•
S&OP process overview
•
What, where, how ,when and why
•
Attributes and objectives of S&OP
•
S&OP implementation challenges
•
Foundation components for successful S&OP
•
Benefits of S&OP
•
Resources
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Sales and Operations Planning (S&OP)
Definition
A process to develop tactical plans that provide
management the ability to strategically direct its
businesses to achieve competitive advantage on a
What is Sales and Operations Planning
continuous basis by integrating customer-focused
(S&OP)?
marketing plans for new and existing products with
the management of the supply chain. The process
brings together all the plans for the business (sales,
marketing, development, manufacturing, sourcing,
and financial) into one integrated set of plans.
APICS Dictionary, 14th edition
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S&OP – A Balancing Act
Demand Actual Supply Resources/
Inventory
Forecasts Orders Orders Capacity
Demand Supply
This process
will help
S&OP
develop
Process policies
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Demand and Supply and Volume and Mix
F
Business Plan
O
R

E R
VOLUME
C E
A S&OP S
S O
D S
T Sales & U
Operations
E I R U
Marketing
Plan
N C
Plan
M P
G E

A & P
P
PRODUCT MIX
N L L
D
Master A
E
D Y
N
M Scheduling
N
A
I
N
N
D
MRP
G
M
G
M Plant and Supplier
T
Scheduling
Adapted from Wallace, Sales & Operations Planning, 3rd ed., p. 207
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S&OP Processes
Demand Forecast
Product/
S&OP
Brand Plan
Marketing Plan Demand Demand Supply
Management Planning Planning
Sales Plan
Production Resources Inventory Distribution
Production Facilities Investment
Transportation
Plan Planning Targets
Master
Labor Channel Warehousing
Scheduling
Planning Distribution
Detailed
Labor and
Planning and Machine Shipment
Equipment
Scheduling Planning Plan
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Major Attributes of S&OP
Connects business planning to tactical planning
Balances supply and demand at the product family
level
Plans at the volume level using aggregate time
buckets, not the individual end-product mix level
Enables in a better understanding of the customer
and market opportunities and company capabilities
Involves sales, marketing, manufacturing, logistics,
finance, and other departments
Is a demand- and strategy-driven process
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Objectives of S&OP
1. Supports and measures the business plan
Ensures that the strategic plans are realistic before being
2.
passed to tactical planning

Enables the organization to effectively manage changes
3.
to plans
Provides for the effective management of finished goods
inventories and order backlog to support customer
4.
service
Enables performance measurement to identify when
5.
actual performance has deviated from the plan
Enables the organization to be focused, aligned, and
6.
engaged.
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Why Plan?
What is one thing most companies have to do
once a year?
BUDGETING
!!!
 To anticipate and prepare for the future
 To ensure adequate available resources
 Customer service
 To focus on being proactive
 To avoid problems

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