Client Logo 1© The Delos Partnership 2006 January 2006 LEAN ENTERPRISE Implementation Workshop.
© The Delos Partnership 2007 page 1 Integrated Enterprise Leadership Process Steps.
Transcript of © The Delos Partnership 2007 page 1 Integrated Enterprise Leadership Process Steps.
© The Delos Partnership 2007 page 1
Integrated Enterprise Integrated Enterprise LeadershipLeadership
Process Steps
© The Delos Partnership 2007 page 2
IEL Process StepsIEL Process Steps
AACCTTIIOONN
AACCTTIIOONN
Week 1 Week 2 Week 3 Week 4
InnovationInnovationReviewReview
InnovationInnovationReviewReview
CustomerCustomerDemandDemandReviewReview
CustomerCustomerDemandDemandReviewReview
SupplySupplyPlanPlan
ReviewReview
SupplySupplyPlanPlan
ReviewReview
PriorityPriorityReviewReview
PriorityPriorityReviewReview
Stage 1Stage 1
Stage 2Stage 2
SeniorSeniorTeamTeam
ReviewReview
SeniorSeniorTeamTeam
ReviewReview
Stage 5Stage 5
Stage 7Stage 7
Stage 3Stage 3
SupportSupportReviewReview
SupportSupportReviewReview
Stage 6Stage 6
Stage 4Stage 4
© The Delos Partnership 2007 page 3
Integrated Business PlanIntegration of InnovationIntegration of Innovation
Innovation
Supply Chain
DemandPlan
SupportActivities
0
5,000
10,000
15,000
20,000
25,000
30,000
Euros
Sales Contrib
Sales/Profit
Financial Analysis
Budget
Previous
Current
© The Delos Partnership 2007 page 4
Innovation step - PurposeInnovation step - Purpose
1. To manage all “new things” against strategic intent, and prioritise where needed
2. To review changes to plans and implications on other parts of the business
3. To review overall performance and managing projects
It is not about managing projects, but must link to those other projects.
© The Delos Partnership 2007 page 5
InnovationInnovation
What counts as innovation ? New product Change to existing product - line extension New manufacturing process Change to manufacturing process Regulatory change Capital expansion ERP Project
© The Delos Partnership 2007 page 6
Integration of InnovationIntegration of Innovation
• Innovation is carried out by many functions
• All innovation has impact on different areas
• Resources are finite
• Priorities need to be set for innovation projects
© The Delos Partnership 2007 page 7
Innovation ProjectsInnovation Projects
All share the following issues Need Project Plan Need business justification Need co-ordination Need cross project resource management Difficult to forecast Need integration into all other processes
© The Delos Partnership 2007 page 8
Management of Innovation needs a Management of Innovation needs a processprocess
Stage/Gate Process
Gate1
Gate1
Gate2
Gate2
Gate3
Gate3
Gate4
Gate4
Gate5
Gate5
Stage 0Stage 0 Stage 1Stage 1 Stage 2Stage 2 Stage 3Stage 3 Stage 4Stage 4
Review
InitialInvestigation
InitialInvestigation
ResearchAnd Develop Full businessCase
ResearchAnd Develop Full businessCase
Develop Product in lineWith customerRequirements.
Develop Product in lineWith customerRequirements.
Test market products and service . Develop market
Test market products and service . Develop market
Full production marketing and Sales of product
Full production marketing and Sales of product
Stage 5Stage 5
IdeationIdeation
Is it a good idea?
Does it fit our
criteria ?
BusinessCase and
prioritisation.
Meets customer, supply and
financial criteria.
Meets customers’
and operations
needs..
© The Delos Partnership 2007 page 9
Project Choices – the Five Questions for Project Choices – the Five Questions for initial investigationinitial investigation
Project
Project
StrategicFit
StrategicFit
Market Attractiveness
Market Attractiveness
TechnologyFit
TechnologyFit Business ImpactBusiness Impact
ChangeOrientation
ChangeOrientation
© The Delos Partnership 2007 page 10
First Cut Priority CheckFirst Cut Priority CheckProject Strategic Market Technology Business
ImpactChange orientation
Overall Average
1 10 10 10 10 10 10.0
2 10 8 7 10 5 8.0
3 9 8 5 8 8 7.6
4 7 6 7 7 9 7.2
5 4 7 8 9 5 6.6
6 3 8 9 6 5 6.2
7 7 4 4 5 8 5.6
8 6 5 5 5 4 5.0
9 2 3 2 3 7 3.4
© The Delos Partnership 2007 page 11
Financial justification for ideasFinancial justification for ideas
Year 1 Year 2 Year 3 Year 4 Year 5
Volume 100 115 120 140 150
Sales 10 12 13 15 17
Contribution 2 2.5 2.75 2.5 2
Inc Overheads
0.5 0.5 0.5 0.5 0.5
Cash Flow 1.5 2.0 2.25 2 1.5
Wkg Capital 1 0.5 0.2 0.2 0.2
Cap Expenditure
4
Net Cash Flow
-3.5 1.5 2.05 1.8 1.3
Net Present Value @ 15 % =
© The Delos Partnership 2007 page 12
Prioritisation of ideasPrioritisation of ideas
Project Name Value [£ m NPV] Strategic Fit Risk Rank
ABC 20 5 5 500
PQR 50 2 5 500
VWY 45 5 2 450
XYZ 20 5 4 400
DEF 33 4 3 396
RST 2 5 5 200
LMN 5 5 5 125
OPQ 100 1 1 100
FRG 40 2 1 80
© The Delos Partnership 2007 page 13
Financial CaseFinancial Case
Integrate into Business Plan
Issues How much When
© The Delos Partnership 2007 page 14
Integration into Business PlanIntegration into Business PlanYear 1 Year 2 Year 3 Year 4 Year 5
Volume 100 115 120 140 150
Sales 10 12 13 15 17
Contribution 2 2.5 2.75 2.5 2
Inc Overheads 0.5 0.5 0.5 0.5 0.5
Cash Flow 1.5 2.0 2.25 2 1.5
Wkg Capital 1 0.5 0.2 0.2 0.2
Cap Expenditure
4
Net Cash Flow -3.5 1.5 2.05 1.8 1.3
164Cum Diff
125-1Difference
132
125
119
Actual Demand
120
120
120
Demand Plan
-1-2-3
Months
120
4
120
5
120
6
120
7
120
8
120
3
Cum Diff
Difference
New Demand Plan
120
120
120
Last Demand Plan
921
Months
360
360
Q1Q4
-17
-13
Cum Diff
-4-7-6Difference
121
118
119
Actual Supply
125
125
125
Supply Plan
-1-2-3
120
4
120
5
120
6
120
7
120
8
120
3
Cum Diff
Difference
New Supply Plan
120
125
125
Last Supply Plan
921
360
360
Q1Q4
-33
-17
-5Difference
485966Actual Stock 66
817671Stock Plan
-1-2-3
91
4
91
5
91
6
91
7
91
8
91
3
Difference
New Stock Plan
919186Last Stock Plan
921 Q1Q4
Make – To- Stock
© The Delos Partnership 2007 page 15
Management of InnovationManagement of Innovation
Integrated Project Management – Programme Management
0
20
40
60
80
100
120
1st Qtr 2nd Qtr 3rd Qtr 4th QtrQtr
Capacity - Design Resource
Dem Cap
Req Cap
© The Delos Partnership 2007 page 16
Integrated Enterprise Leadership Integrated Enterprise Leadership
-3 -2 -1
Demand Plan 70 70 70
Actual Demand 71 75 80
Difference 1 5 10
Cum Diff 6 16
Months 1 2 3 4 5 6 7 8 9
Last Demand Plan 70 70 70 70 70 70 70 70 70
New Demand Plan
Difference
Cum Diff
Months Q4 Q1
210 210
-3 -2 -1
Supply Plan 75 75 75
Actual Supply 70 69 71
Difference -5 -6 -4
Cum Diff -11 -15
1 2 3 4 5 6 7 8 9
Last Supply Plan 75 75 70 70 70 70 70 70 70
New Supply Plan
Difference
Cum Diff
Q4 Q1
210 210
-3 -2 -1
Order Book Plan 61 56 51
Actual Orders 66 67 73 82
Difference 6 17 31
1 2 3 4 5 6 7 8 9
Last Plan 46 41 41 41 41 41 41 41 41
New Plan
Difference
Q4 Q1
41 41
Family ABC
New ForecastsNew Forecasts
Impact on SupplyImpact on Supply
© The Delos Partnership 2007 page 17
Integration with Supply ChainIntegration with Supply Chain
Design
Purchase
Intermediate Manufacture
Sub-assemble
Finish
Distribute
Cumulative Lead TimeCumulative Lead Time
Insert NewProducts Here
Insert NewProducts Here
© The Delos Partnership 2007 page 18
Integrated Innovations PlanningIntegrated Innovations Planning
IDEAS
COMMERCIALSUCCESS
IEL AT FAMILYLEVEL – VOLUMEAND VALUE
MPS AT PRODUCTLEVEL – VOLUMEAND VALUE
TIME
MPS/MRP AT PRODUCT ANDCOMPONENTLEVEL – VOLUME
© The Delos Partnership 2007 page 19
New Product Development New Product Development PerformancePerformance
Definition
Purpose
Horizon
Source of information
Number of new products developed on time
Improve NPD process
New product development time
Activity schedule in planning system or project plans
© The Delos Partnership 2007 page 20
NPD Performance ReportNPD Performance ReportProject reference
Planned Date
Actual Date
Hit/ Miss
Comment
A1001 23/2/99 02/3/99 Miss
A1096 23/2/99 15/3/99 Miss
B2304 24/2/99 17/2/99 Hit
B2403 25/2/99 18/2/99 Hit
D1237 26/2/99 27/2/99 Miss
D1453 26/2/99 20/2/99 Hit
NPD Performance = 3/6 = 50 %
© The Delos Partnership 2007 page 21
Earned Value MeasureEarned Value Measure
Definition
Purpose
Horizon
Source of Info
Proportion of work completed in value compared with work scheduled to be completed
To review cost versus budget status of project
Length of Project
Project Plan reports
© The Delos Partnership 2007 page 22
Earned Value ReportEarned Value Report
Value A B C D E F Total
Planned 100 150 100 250 200 200 1000
Earned 100 150 100 100 200 0 650
% comp. 100 100 100 40 100 0
Variance 0 0 0 -150 0 -200 -350
Actual Cost
90 220 80 300 220 910
Variance to EV
+10 -70 +20 -200 -20 -260
Variance Spend
+10 -70 +20 -50 -20 +200 -90
Activities/Time
© The Delos Partnership 2007 page 23
Culture/behaviourCulture/behaviour
• Over optimism on likely success of new product
• Failure to manage scope of project effectively
• Abilene syndrome – management of agreement
• Functional development – lack of focus on customer.
© The Delos Partnership 2007 page 24
Traditional functional managementTraditional functional managementStage/Gate Process
Gate1
Gate1
Gate2
Gate2
Gate3
Gate3
Gate4
Gate4
Gate5
Gate5
Stage 0Stage 0 Stage 1Stage 1 Stage 2Stage 2 Stage 3Stage 3 Stage 4Stage 4
Review
ResearchDepartment
ResearchDepartment
DevelopmentDepartment
DevelopmentDepartment
DevelopmentDepartment
DevelopmentDepartment
OperationsDepartment
OperationsDepartment
CommercialDepartment
CommercialDepartment
Stage 5Stage 5
ResearchDepartment
ResearchDepartment
© The Delos Partnership 2007 page 25
Process or program managementProcess or program managementStage/Gate Process
Gate1
Gate1
Gate2
Gate2
Gate3
Gate3
Gate4
Gate4
Gate5
Gate5
Stage 0Stage 0 Stage 1Stage 1 Stage 2Stage 2 Stage 3Stage 3 Stage 4Stage 4
Review
Stage 5Stage 5
ResearchDepartment
ResearchDepartment
DevelopmentDepartment
DevelopmentDepartment
Financial/SupportDepartment
Financial/SupportDepartment
OperationsDepartment
OperationsDepartment
CommercialDepartment
CommercialDepartment
© The Delos Partnership 2007 page 26
Innovations ManagerInnovations Manager
Strategy
Innovation Manager
DevelopmentIdeas
ProjectPlans
DevelopmentPlans
Supply Plans
ProjectSystem
Prioritised PlansPrioritised Plans
© The Delos Partnership 2007 page 27
Innovations Review MeetingInnovations Review Meeting
• Strategy• Priorities• Update on projects• Impact analysis• Financial plans – forecasts, prices and costs• Review against strategiccriteria•Performance Measures
•Projects prioritised•Agreement onmajor new projects•Decisions on impactOn Financial plan•Issues for furtherReview•Improvements inprocess
Inputs Outputs
Agenda
1. Status on existing projects2. Changes to milestone dates3. Impact analysis4. Recommendations on
impacts5. Performance Measures
Agenda
1. Status on existing projects2. Changes to milestone dates3. Impact analysis4. Recommendations on
impacts5. Performance Measures
© The Delos Partnership 2007 page 28
Framework for Process ReviewFramework for Process ReviewProcess Name : Process owner :Process Name : Process owner :
Inputs:Inputs: Purpose:Purpose: Outputs:Outputs:
People:People: Culture/Behaviour:Culture/Behaviour: Measures:Measures:
System/module:System/module: Requirements:Requirements: Expected Actions:Expected Actions:
Link to other processes :Link to other processes :
© The Delos Partnership 2007 page 29
MeasuresMeasures Close out of actions - are dates being met as at original project start date Projects started in right lead time? Information provided in right format?
OutputsOutputs Revised resource plan Revised list of requirements Revised financial plan
InputsInputs R&T:
New materials New technologies New surface treatments
Environmental Requirements Feedback from previous cycle
PeoplePeople Process Owner:
Patrick Monclar (ISO P2) R&T Project Managers GPT Representative S&OP Co-ordinator?
Scope/PurposeScope/Purpose Projects which impact critical resource:
OperationsSupply Chain
Provide appropriate information to Supply/Customer Demand Review changes to existing projects (by exception)
Links to Other ProcessesLinks to Other Processes Global Planning Team
““Global Innovation Planning – R&T” ProcessGlobal Innovation Planning – R&T” Process
© The Delos Partnership 2007 page 30
IEL Process StepsIEL Process Steps
AACCTTIIOONN
AACCTTIIOONN
Week 1 Week 2 Week 3 Week 4
InnovationInnovationReviewReview
InnovationInnovationReviewReview
CustomerCustomerDemandDemandReviewReview
CustomerCustomerDemandDemandReviewReview
SupplySupplyPlanPlan
ReviewReview
SupplySupplyPlanPlan
ReviewReview
PriorityPriorityReviewReview
PriorityPriorityReviewReview
Stage 1Stage 1
Stage 2Stage 2
SeniorSeniorTeamTeam
ReviewReview
SeniorSeniorTeamTeam
ReviewReview
Stage 5Stage 5
Stage 7Stage 7
Stage 3Stage 3
SupportSupportReviewReview
SupportSupportReviewReview
Stage 6Stage 6
Stage 4Stage 4
© The Delos Partnership 2007 page 31
Demand Planning and ManagementDemand Planning and Management
Horizon
PLANMANAGEEXECUTE
Cumulative Lead Time
Add or subtractTo capacity
Strong Link to
Integrated Enterprise Leadership process
Capacity andMaterials“firm”
Take Orders
Today
© The Delos Partnership 2007 page 32
The Ten Rules of ForecastingThe Ten Rules of Forecasting
1. A forecast is necessary for planning supply and supporting financial and business plans
2. A forecast is never going to be right3. A forecast is wrong because the assumptions were wrong4. Accountability for the forecast rests with Sales and Marketing 5. Forecasting needs an application of intelligence6. More accurate forecasting comes from your customers’ customer7. Forecasts at an aggregate level are more accurate than the detail8. Effective management of demand is key to managing forecast
inaccuracy9. A written policy for managing flexibility is essential10.Measuring forecast accuracy will improve the process
© The Delos Partnership 2007 page 33
Common Reasons for Not ForecastingCommon Reasons for Not Forecasting
I can never make it100% accurate
My business has toomany unforeseen
peaksMy business isdifferent - you can’t forecast it
I don’t know who’s responsible
for it anywayIt’s not in my
objectives
I’m measured on getting high sales
- so who cares about the forecast
The factory nevermake what I forecast
anyway
Nobody thanks me for it – so why
bother ?
© The Delos Partnership 2007 page 34
Forecasting - is there a definition?Forecasting - is there a definition?
© The Delos Partnership 2007 page 35
Forecasting – DefinedForecasting – Defined
A forecast is a formal request to the Supply Management function from Sales and Marketing
to have the product, materials and capacity available according to the quantity and at the
time that they anticipate the demand will occur from the customer to ship the product to their
premises
© The Delos Partnership 2007 page 36
Forecasting Needs a Simple ProcessForecasting Needs a Simple Process
Filter Filter DemandDemand
ComputeComputeforecastforecast
CaptureCaptureActualActual
C O N S E N S U S C O N S E N S U S F O R E C A S TF O R E C A S T
C O N S E N S U S C O N S E N S U S F O R E C A S TF O R E C A S T
Hold Demand ReviewHold Demand Review
Agree commercialAgree commercial plansplans
AgreeAgreeExceptional demandExceptional demand
AssumptionAssumptions written s written down and down and
agreedagreed
AssumptionAssumptions written s written down and down and
agreedagreed
ReviewReviewAccuracyAccuracy
© The Delos Partnership 2007 page 37
Impact of Biassed ForecastImpact of Biassed Forecast
Increase resources to meet higher demand
OVERFORECASTING IS AS BAD AS UNDERFORECASTING
More StocksMore Labour
More MaterialsMore Plant
No SalesCost of Goods
increases
OVERFORECASTING
GROSSMARGIN
GROSSMARGIN
Stocks LowLabour UnavailableShort of CapacityShort of Materials
Lost SalesCost of Goods
increases
GROSSMARGIN
GROSSMARGIN
UNDERFORECASTING
Resources insufficient tomeet demand
© The Delos Partnership 2007 page 38
Execute Statistical ForecastExecute Statistical Forecast
• Use demand history to produce trends and identify patterns
• Key influences to be derived : Base Trend Seasonality
© The Delos Partnership 2007 page 39
Sales Forecasting: InputsSales Forecasting: Inputs
• New Customers• New Products• Pricing Initiatives• Advertising And Promotions• Cannibalisation• Customers Own Forecast• Competitors Activity• External Factors
© The Delos Partnership 2007 page 40
Effect of New Products on Old Effect of New Products on Old ProductsProducts
CannibalisationDefinition: The impact (usually negative) of sales
on old product from new product Assess the impact -
Timing Volume Finance
Review impact on run-out of old product – Product Life cycle effect
© The Delos Partnership 2007 page 41
Demand CreationDemand Creation
Demand Facts Population Numbers between age 13-16 Children less than 11
Demand Drivers Events (Xmas) Desires Technology
Demand Controllers Pricing Promotion Distribution Advertising Packaging
ASSUMPTIONS
RESULTS
• Market Share• Market Reach• Frequency of purchase
© The Delos Partnership 2007 page 42
Sales Planning ProcessSales Planning Process
EXAMPLE
Sales vision and strategic framework
Carry out channel analysis and identify opportunities
Establish sales development prioritiesand draft channel strategies
Review draft brand plans
Issue long term plans
Develop detailed implementation plans
Monitor implementation
P D
A C
© The Delos Partnership 2007 page 43
Collaborative Planning - ProgressCollaborative Planning - Progress
Data Exchange
Vendor Managed Inventory
Co-ManagedInventory
Trading Partnership
Integrated Planning and Replenishment
• Ability to view Customer data•No management process•Possibly available on Internet
•Agreed process for managing inventory (VMI) – Supplier’s problem!
•Supplier schedules provided
•Agreed process for managing inventory•Mutual availability of data and plans in joint systems•Supplier schedules provided, and forecasts provided.
•Mutual sharing of long term plans•Full briefing on long term strategy•Joint improvement activities
•Joint forecast review•Joint agreement on Business plans and inventory strategy•Joint improvement activities
Time
© The Delos Partnership 2007 page 44
Review “Exceptional” DemandReview “Exceptional” Demand
Review large potential business Tenders New contracts Large one time demand
Decide whether to include in forecast or not Avoid probabilities Decide on hedging strategy Agree on acceptance of risk
© The Delos Partnership 2007 page 45
Forecast AccuracyForecast Accuracy
Definition
Purpose
Horizon
Source of Information
Percent of items within a tolerance
Assess the degree of flexibility required by the supply side and to improve the process
Cumulative lead time (= purchasing plus manufacturing)
Forecasting module Sales module
© The Delos Partnership 2007 page 46
Forecast Accuracy Report – by ErrorForecast Accuracy Report – by Error
Group Product Forecast Actual Error % Error
Product Group A
Product 123 100 120 +20 20
Product 456 200 150 -50 25
Product 789 300 330 +30 10
Total 600 600 0 17 %
Product Group B
Product 345 200 300 +100 50
Product 567 500 300 -200 40
Product 890 600 700 +100 17
Product 678 200 400 +200 100
Total 1500 1700 200 40 %
© The Delos Partnership 2007 page 47
Forecast Quality and BiasForecast Quality and Bias
0
5
10
15
20
25
30
35
40
% of Items
Normal
Graph forecasts to display bias
Bias
© The Delos Partnership 2007 page 48
Customer ServiceCustomer Service
Definition
Purpose
Horizon
Source of Information
Number of orders delivered to required date to customers’ premises
Flexibility required to meet customer needs
Make To Stock - none
Make To Order - product lead time
Sales order entry
© The Delos Partnership 2007 page 49
Order Required Date
Actual Date
Required Quantity
Actual Quantity
Hit/ Miss
1435 22/2/99 23/2/99 1050 1050 Miss
1560 23/2/99 23/2/99 2000 2000 Hit
1573 24/2/99 23/2/99 300 300 Miss
1745 25/2/99 25/2/99 450 500 Miss
1800 26/2/99 26/2/99 700 650 Miss
1820 26/2/99 26/2/99 1000 1000 Hit
Customer Service Report – Customer Service Report – Against Request DateAgainst Request Date
Customer Service = 2/6 = 33 %
© The Delos Partnership 2007 page 50
Sales and Marketing FocusSales and Marketing Focus
Month 1 Region A Region B
Cust
A
Cust
B
Cust
C
Cust
A
Cust
D
Cust
E
Prod
Group
ABC
Prod 1
Prod 2
Prod 3
Prod
Group XYZ
Prod 4
Prod 5
Prod 6
Month 2 Region A Region B
Cust
A
Cust
B
Cust
C
Cust
A
Cust
D
Cust
E
Prod
Group
ABC
Prod 1
Prod 2
Prod 3
Prod
Group XYZ
Prod 4
Prod 5
Prod 6
Month 3 Region A Region B
Cust
A
Cust
B
Cust
C
Cust
A
Cust
D
Cust
E
Prod
Group
ABC
Prod 1
Prod 2
Prod 3
Prod
Group XYZ
Prod 4
Prod 5
Prod 6
Month 4 Region A Region B
Cust
A
Cust
B
Cust
C
Cust
A
Cust
D
Cust
E
Prod
Group
ABC
Prod 1
Prod 2
Prod 3
Prod
Group XYZ
Prod 4
Prod 5
Prod 6
Month 5 Region A Region B
Cust
A
Cust
B
Cust
C
Cust
A
Cust
D
Cust
E
Prod
Group
ABC
Prod 1
Prod 2
Prod 3
Prod
Group XYZ
Prod 4
Prod 5
Prod 6
Month 6 Region A Region B
Cust
A
Cust
B
Cust
C
Cust
A
Cust
D
Cust
E
Prod
Group
ABC
Prod 1
Prod 2
Prod 3
Prod
Group XYZ
Prod 4
Prod 5
Prod 6
Sales/Account
Managers
Sales/Account
Managers
MarketingMarketing
One
Set of
Numbers
One
Set of
Numbers
© The Delos Partnership 2007 page 51
Cultural issuesCultural issues
1. Over optimism or pessimism2. Reforecasting to the budget3. Not spending the time on forecasting4. Forecasting what you want production
to make and not what the customer wants
5. Not understanding forecast accuracy is a tool to improve the process.
© The Delos Partnership 2007 page 52
Demand ManagementDemand Management
Strategy
Demand Manager
Sales and Marketing
SystemForecast
Plan
ManufacturingAnd Purchasing
ERPSystem
Consensus ForecastConsensus Forecast
© The Delos Partnership 2007 page 53
Demand Review MeetingDemand Review Meeting
• Strategy• Update on Assumptions• New Product developments• Major changes to Forecasts• Competitive threats/opportunities•Performance Measures
•Unconstrained Demand• Agreement on Risks and mitigation• Actions to close gaps•FinancialProjections• Actions for improving process
Inputs Outputs
Agenda
1. Revised Forecasts2. New Products3. Competitor analysis4. Gaps to strategic plan and
proposals5. Performance Measures
Agenda
1. Revised Forecasts2. New Products3. Competitor analysis4. Gaps to strategic plan and
proposals5. Performance Measures
© The Delos Partnership 2007 page 54
Framework for Process ReviewFramework for Process ReviewProcess Name : Process owner :Process Name : Process owner :
Inputs:Inputs: Purpose:Purpose: Outputs:Outputs:
People:People: Culture/Behaviour:Culture/Behaviour: Measures:Measures:
System/module:System/module: Requirements:Requirements: Expected Actions:Expected Actions:
Link to other processes :Link to other processes :
© The Delos Partnership 2007 page 55
Framework for Process Review – Customer Framework for Process Review – Customer Demand Demand
Process NameProcess NameInputsInputs
Business strategy Business strategy
Order book salesOrder book sales
Assumptions Assumptions
Major forecast changesMajor forecast changes
Innovation Innovation
Purpose/AgendaPurpose/Agenda
1. 1. Review new product forecastsReview new product forecasts
2. Review changes to previous 2. Review changes to previous forecastsforecasts
3. Agree and sign off assumptions3. Agree and sign off assumptions
4. Agree actions to close gaps4. Agree actions to close gaps
5. Review performance 5. Review performance measuresmeasures
OutputsOutputs
Sales Forecast/Demand PlanSales Forecast/Demand Plan
Unconstrained demandUnconstrained demand
Uncertainties Uncertainties
Financial projectionFinancial projection
PeoplePeople
Sales Director (lead), KAM, Bid Sales Director (lead), KAM, Bid Support Manager, Demand Support Manager, Demand Manager, Commercial Manager, Commercial
Desired CultureDesired Culture
Cohesive and agreed sales planCohesive and agreed sales plan
MeasuresMeasures
Business planBusiness plan
Forecast accuracy Forecast accuracy
Order book valueOrder book value
Customer service –on time in full Customer service –on time in full to customer promise dateto customer promise date
Systems to support this stepSystems to support this step
ACT!, TABS, Excel, Corporate Planning modelACT!, TABS, Excel, Corporate Planning model
Link to other ProcessesLink to other Processes
Supply, Prioritisation and Senior Team ReviewSupply, Prioritisation and Senior Team Review
© The Delos Partnership 2007 page 56
IEL Process StepsIEL Process Steps
AACCTTIIOONN
AACCTTIIOONN
Week 1 Week 2 Week 3 Week 4
InnovationInnovationReviewReview
InnovationInnovationReviewReview
CustomerCustomerDemandDemandReviewReview
CustomerCustomerDemandDemandReviewReview
SupplySupplyPlanPlan
ReviewReview
SupplySupplyPlanPlan
ReviewReview
PriorityPriorityReviewReview
PriorityPriorityReviewReview
Stage 1Stage 1
Stage 2Stage 2
SeniorSeniorTeamTeam
ReviewReview
SeniorSeniorTeamTeam
ReviewReview
Stage 5Stage 5
Stage 7Stage 7
Stage 3Stage 3
SupportSupportReviewReview
SupportSupportReviewReview
Stage 6Stage 6
Stage 4Stage 4
© The Delos Partnership 2007 page 57
Supply Chain ManagementSupply Chain Management
Horizon
PLANMANAGEEXECUTE
Cumulative Lead Time
Add or subtractTo capacity
Strong Link to
Integrated Enterprise Leadership Process
Capacity andMaterials“firm”
Release Orders
© The Delos Partnership 2007 page 58
Supply Planning should happen at two Supply Planning should happen at two levels..levels..
-3 -2 -1
Supply Plan 125 125 125
Actual Supply 119 118 121
Difference -6 -7 -4
Cum Diff -13 -17
1 2 3 4 5 6 7 8 9
Last Supply Plan 125 125 120 120 120 120 120 120 120
New Supply Plan
Difference
Cum Diff
Q4 Q1
360 360
FamilyFamily
DetailDetailMaster \Schedule
CapacityRequirements
Plan
ComponentPlan
RoughCutRoughCut
MRP/CRP
Filling Machine : Cap Req
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
1 2 3 4 5 6 7 8 9 10 11 12
Months
Hours
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
© The Delos Partnership 2007 page 59
Rough Cut Capacity PlanningRough Cut Capacity Planning
Objective Translate Family Volumes into capacity requirements Test validity of plan against demonstrated capacity
How Use planning profiles Use critical resources Use demonstrated capacity
Result Possible problem areas
© The Delos Partnership 2007 page 60
Rough Cut Capacity PlanningRough Cut Capacity Planning
RequiredCapacity
DemonstratedCapacity
Family Volumes x
Rate per hour
Family Volumes x
Rate per hour
Actual ProductionPer month
Actual ProductionPer month
CriticalResources
© The Delos Partnership 2007 page 61
Rough Cut ProfileRough Cut Profile
Key Resources
Units Families
A B C D E F
Supplier A Lts 2.1 3.4 4.2 1.3Warehouse Pallet
s12 14 20 5 10
Quality Assurance Hrs 3 5 3 10 7 2Line ABC Hrs 2 5 1 5.6Labeller Hrs 4 7 2 5Filling m/c Hrs 3 7 9 2 5
Hours per 000 units
© The Delos Partnership 2007 page 62
Rough Cut ResultRough Cut ResultMonth 5Month 5
Key Resources Required Production Volumes Capacity
A
220
B
200
C
35
D
40
E
150
F
15
Req Dem Max
Supplier A
Warehouse
Quality Assurance
Line ABC
Labeller
Filling m/c
© The Delos Partnership 2007 page 63
Rough Cut Result Rough Cut Result – Month 5– Month 5
220 200 35 40 150 15
Key ResourcesUnits FamiliesA B C D E F
Supplier A Lts 462 680 - 168 195 - 1,505 1,500 2,500
Warehouse Pallets 2,640 - 490 800 750 150 4,830 4,000 4,000
QA Hrs 660 1,000 105 400 1,050 30 3,245 3,500 4,200
Line ABC Hrs - 400 175 40 840 - 1,455 1,500 2,500
Labeller Hrs 880 1,400 70 200 - - 2,550 1,500 2,500
Filling m/c Hrs 660 1,400 315 80 750 - 3,205 3,000 4,500
REQ CAP
DEM CAP
MAX CAP
ROUGH CUT CAPACITY PLANNINGResult for Month 5
Production Volumes
© The Delos Partnership 2007 page 64
Rough Cut Result Rough Cut Result – Graph by Resource– Graph by Resource
Month 5 - RCCP
0
1000
2000
3000
4000
5000
6000
Supplier A Warehouse QA Line ABC Labeller Filling m/c
Resources
Un
its REQ CAP
DEM CAP
MAX CAP
© The Delos Partnership 2007 page 65
Rough Cut ResultRough Cut ResultCapacity RequirementCapacity Requirement
Filling Machine : Cap Req
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
1 2 3 4 5 6 7 8 9 10 11 12
Months
Hou
rs
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
© The Delos Partnership 2007 page 66
Objectives of Master ScheduleObjectives of Master Schedule
• State forward production plan by Stock Keeping Unit (SKU)
• Summarise what the business can do
• Provide Available to Promise information for Sales/Customer Service
• Provide stability to the supply organisation Firm Planned Orders
© The Delos Partnership 2007 page 67
Master Schedule Link to IELMaster Schedule Link to IEL
Product B3Product B2
MPSProduct B1
IEL Family B
16
6Cum Diff
10
51Difference
80
75
71
Actual Demand
70
70
70
Demand Plan
-1
-2
-3
Months
70
4
70
5
70
6
70
7
70
8
70
3
Cum Diff
Difference
New Demand Plan
70
70
70
Last Demand Plan
921
Months
210
210
Q1
Q4
-15
-11
Cum Diff
-4
-6
-5
Difference
71
69
70
Actual Supply
75
75
75
Supply Plan
-1
-2
-3
70
4
70
5
70
6
70
7
70
8
70
3
Cum Diff
Difference
New Supply Plan
70
75
75
Last Supply Plan
921
210
210
Q1
Q4
31
17
6Difference
82
73
67
Actual Orders 66
51
56
61
Order Book Plan
-1
-2
-3
41
4
41
5
41
6
41
7
41
8
41
3
Difference
New Plan
41
41
46
Last Plan
921
41
41
Q1
Q4
Make – To- Order
© The Delos Partnership 2007 page 68
Basic FormulaBasic Formula
Item DataBOM’s
And Routes
StockAnd
Capacity
Master Schedule
Forecasts Orders
Suppliers Factories
What do theyActually Want ?
What haveWe got ?
Whatdoes it need ?
What do we need to do ?
What do we thinktheyWant ?
© The Delos Partnership 2007 page 69
Planned OrdersPlanned Orders
PlannedOrders
CapacityRequirements
Plan
ComponentPlan
Red Item
14356
Sub-Item
43781
2 per
•Automatic re-plan•Plans Matched sets of Parts•Plans hours for CRP
© The Delos Partnership 2007 page 70
Capacity Requirements PlanCapacity Requirements Plan
Opn No
Work Centre
Operation Set Run
10 45 Inspect 0.5 0.10
20 55 Mix 1.0 0.5
30 65 Pack 1.0 0.2
Routing
Work Centre Information
0
10
20
30
40
50
60
1 2 3 4 5 6 7 8
Reqd
Demo
8
Planned Order Release
00Projected Available Balance
2525Scheduled Receipts
202020202020Projected
Gross Requirements
97654321Periods
55 55 55 55 1010 -15-15 1010 1010 1010 -10-10
2525 2525
1515
© The Delos Partnership 2007 page 71
Capacity Plan resolutionCapacity Plan resolution
Capacity Plan WC 45
105
85
107125
112
75
132123
110
020406080
100120140
1 2 3 4 5 6 7 8 9
Weeks
Ho
urs Required
Demo
© The Delos Partnership 2007 page 72
Time Fence PolicyTime Fence Policy
Horizon
PLANMANAGEEXECUTE
Cumulative Lead Time
Add or subtractTo capacity
Strong Link toIntegrated Enterprise Leadership Process
Capacity andMaterials“firm”
Release Orders
Open SesameFirmNO !
© The Delos Partnership 2007 page 73
Time Fence PolicyTime Fence Policy
• Should relate to Cumulative Lead Time (CLT) Requires review of CLT by product Could be different by product group
• Should state who can change and when• Should be clear about “Emergency
Changes”• Must be adhered to !
© The Delos Partnership 2007 page 74
Integrated Enterprise LeadershipIntegrated Enterprise Leadership
-3 -2 -1
Demand Plan 120 120 120
Actual Demand 119 125 132
Difference -1 5 12
Cum Diff 4 16
Months 1 2 3 4 5 6 7 8 9
Last Demand Plan 120 120 120 120 120 120 120 120 120
New Demand Plan
Difference
Cum Diff
Months Q4 Q1
360 360
-3 -2 -1
Supply Plan 125 125 125
Actual Supply 119 118 121
Difference -6 -7 -4
Cum Diff -13 -17
1 2 3 4 5 6 7 8 9
Last Supply Plan 125 125 120 120 120 120 120 120 120
New Supply Plan
Difference
Cum Diff
Q4 Q1
360 360
-3 -2 -1
Stock Plan 71 76 81
Actual Stock 66 66 59 48
Difference -5 -17 -33
1 2 3 4 5 6 7 8 9
Last Stock Plan 86 91 91 91 91 91 91 91 91
New Stock Plan
Difference
Q4 Q1
Make – To- Stock Senior Team FocusMPS Focus
© The Delos Partnership 2007 page 75
Master Schedule Master Schedule
• Definition
• Purpose
• Horizon
• Source of Information
• Valid Material and Capacity plans and stability of those plans
• Improve planning process, and provide desired stability to supply chain
• Product’s Cumulative Lead Time
• Master Scheduling module
© The Delos Partnership 2007 page 76
Master Schedule AchievementMaster Schedule Achievement
Firm Plan Order
Plan Start Date
Actual Start Date
Planned Quantity
Actual Quantity
Hit/ Miss
10034 22/2/99 23/2/99 1050 1050 Miss
10067 23/2/99 23/2/99 2000 2000 Hit
10165 24/2/99 24/2/99 300 300 Hit
10230 25/2/99 25/2/99 500 500 Hit
10376 26/2/99 26/2/99 700 700 Hit
12782 26/2/99 26/2/99 1000 1000 Hit
Schedule Achievement = 5/6 = 84 %
© The Delos Partnership 2007 page 77
Right First Time ReportRight First Time Report
Commentary
•Right First Time suffered from new component supplier
•Product specs not updated
Right First Time
0
20
40
60
80
100
120
Rig
ht Fir
st Tim
e
Actual
Target
© The Delos Partnership 2007 page 78
Supplier PerformanceSupplier Performance
Definition
Purpose
Horizon
Source of Information
Number of deliveries received into stock on or before due date/time
Improve supplier delivery process
Purchasing Lead Time or Time Fence
Vendor Schedule or Purchase Order`
© The Delos Partnership 2007 page 79
Supplier Achievement ReportSupplier Achievement Report
Commentary•Supplier achievement suffered from alternative supplier having quality problems•The new product caused untold problems
Supplier Achievemnt
0
20
40
60
80
100
120
% o
n t
ime
Actual
Target
© The Delos Partnership 2007 page 80
Master SchedulerMaster Scheduler
Strategy
Sales Forecasts
CustomerOrders
ManufacturingPlan
PurchasingPlan
MRPSystem
Balanced PlanBalanced Plan
Master Scheduler
© The Delos Partnership 2007 page 81
Supply Review MeetingSupply Review Meeting
• Update on new Products/Projects•Latest Forecast of unconstrained demand•Rough Cut and Demonstrated Capacity• Detailed capacity issues• Material constraints• Performance Measures
• Recommendations for resolving issues• Actions to meet plan•Agreed Supply Plan• Proposals for improving process
Inputs Outputs
Agenda
1. Required production plan2. Issues in meeting plan3. Proposals for resolving
issues4. Capex projects5. Performance Measures
Agenda
1. Required production plan2. Issues in meeting plan3. Proposals for resolving
issues4. Capex projects5. Performance Measures
© The Delos Partnership 2007 page 82
Framework for Process ReviewFramework for Process ReviewProcess Name : Process owner :Process Name : Process owner :
Inputs:Inputs: Purpose:Purpose: Outputs:Outputs:
People:People: Culture/Behaviour:Culture/Behaviour: Measures:Measures:
System/module:System/module: Requirements:Requirements: Expected Actions:Expected Actions:
Link to other processes :Link to other processes :
© The Delos Partnership 2007 page 83
By SiteBy Site
SUPPLY PLANNING SUPPLY PLANNING PROFORMA (1)PROFORMA (1)
Site Load & Capacity Profile
Critical Workcentre Load & Capacity Profiles
-30
-20
-10
0
10
2030
2003 2004 2005 2006 2007
Variance to Demand plan
EFA
A320
A340
0
100
200
300
400
2003 2004 2005 2006 2007
Supply plan
EFA
A320
A340
Other Workcentre Load & Capacity Profiles
0
100
200
300
400
2003 2004 2005 2006 2007
Demand plan
EFA
A320
A340
• 5 year horizon - Rolling first 24 months - Fixed years 3 to 5 (re-establishment of year 5 @ Roll 1)
• OE by programme• Spares by major parts (product/process)
© The Delos Partnership 2007 page 84
MeasuresMeasures Schedule adherence MPS stability Expedited parts internal/external Concessions Actual/planned capacity
OutputsOutputs Load/capacity issues Statement of policy decisions Supply plan Requirements for cap-ex Security stocks Recording of actions taken “What if?” scenarios & alternatives for resolving issues Identification of risk on materials
See slides 29-30
InputsInputsSupply Planning:
Material Planning (MRP) Capacity Planning Maintenance Planning Make/Buy Operations Assumptions:
Demonstrated capacities Arrears management Lead-times
Supplier Partnerships Purchase schedules Performance measurements Quality
Feedback from previous cyclePeoplePeople
Process Owner:Process Owner: L. Schneider-Maunoury (ISO P6)L. Schneider-Maunoury (ISO P6)
Site Operations Managers Maintenance Quality Master scheduler Site procurement/Supply Chain Mgr’s Global procurement GPT S&OP Co-ordinator Human resources
Scope/PurposeScope/Purpose Produce a realistic Manufacturing & Supply Plan Balance required capacity vs. planned capacity Define mismatches on capacity Resolve Operating Plan only issues Improve:
Process Quality Job satisfaction Flow to increase capacity
NOT to solve all issues
Links to Other ProcessesLinks to Other Processes Make/buy Load/capacity reviews MPS - where applied GPT
““Supply Planning” ProcessSupply Planning” Process
© The Delos Partnership 2007 page 85
IEL Process StepsIEL Process Steps
AACCTTIIOONN
AACCTTIIOONN
Week 1 Week 2 Week 3 Week 4
InnovationInnovationReviewReview
InnovationInnovationReviewReview
CustomerCustomerDemandDemandReviewReview
CustomerCustomerDemandDemandReviewReview
SupplySupplyPlanPlan
ReviewReview
SupplySupplyPlanPlan
ReviewReview
PriorityPriorityReviewReview
PriorityPriorityReviewReview
Stage 1Stage 1
Stage 2Stage 2
SeniorSeniorTeamTeam
ReviewReview
SeniorSeniorTeamTeam
ReviewReview
Stage 5Stage 5
Stage 7Stage 7
Stage 3Stage 3
SupportSupportReviewReview
SupportSupportReviewReview
Stage 6Stage 6
Stage 4Stage 4
© The Delos Partnership 2007 page 86
SupportSupport
What are the support activities?They will depend on your particular
organisation – one person’s critical activity is another’s support role!
Examples:FinanceITQualityEngineeringHuman Resources
© The Delos Partnership 2007 page 87
Support stepSupport step• Establish the resource needs and priorities for all
support activities – e.g. Finance Human Resources Information Technology Engineering
• Provide financial base for decisions• Highlight resource issues in these areas, which are
relevant• To ensure that all plans – innovation, demand and
supply – are underpinned by the appropriate support resources.
© The Delos Partnership 2007 page 88
Financial planFinancial plan
Pull together all the volume plans into one financial picture
• Volume x price = revenue• Volume x cost = variable cost• Margin = revenue – variable cost• Overheads are fixed• Profit is the result• Assumptions on assets• Cash Flow calculation
© The Delos Partnership 2007 page 89
Revised Financial PlanRevised Financial Plan
0
5,000
10,000
15,000
20,000
25,000
30,000
Euros
Sales Contrib EBITDA
Sales/Profit
Financial Analysis
Budget
Previous
Current
© The Delos Partnership 2007 page 90
Reviewing the GapReviewing the GapFinancial Strategic Forecast
0
5
10
15
20
25
1 2 3 4 5
Year
£m.
All New
New
Extend
Current
Aspiration
© The Delos Partnership 2007 page 91
BudgetBudget
© The Delos Partnership 2007 page 92
Preparation of the budgetPreparation of the budget
Financial projection enables Visibility of current year outturn – early Visibility of subsequent year(s) to enable budget to
be one set of numbers – early
Requires culture change No six month process No sandbagging of the numbers Simple cut-off period “Roughly right” rather than “precisely wrong”
© The Delos Partnership 2007 page 93
Budgets – the issuesBudgets – the issues
• Annual budgets irrelevant in a fast changing world
• It is a game played by any number of players
• Budget is used as a “control mechanism” – but it does not work
© The Delos Partnership 2007 page 94
Information ResourcesInformation Resources
I have been trying to get that report on Customer Service written for six
months. You can never get anything out of that
department !
I have been trying to get that report on Customer Service written for six
months. You can never get anything out of that
department !
How am I expected to
get something out of nothing
© The Delos Partnership 2007 page 95
IT Resources SchedulerIT Resources Scheduler
Strategy
Project Plans
Help DeskEnquiries
Infrastructure plan
ResourceRequirements
MaintenancePlan
Balanced PlanBalanced Plan
IT ResourcesScheduler
© The Delos Partnership 2007 page 96
Information ResourcesInformation Resources
Integrated Project Management
0
20
40
60
80
100
120
1st Qtr 2nd Qtr 3rd Qtr 4th QtrQtr
Capacity - Programming Resource
Dem Cap
Req Cap
© The Delos Partnership 2007 page 97
Order Required Date
Actual Date
Required Quantity
Actual Quantity
Hit/ Miss
1435 22/2/99 23/2/99 1050 1050 Miss
1560 23/2/99 23/2/99 2000 2000 Hit
1573 24/2/99 23/2/99 300 300 Miss
1745 25/2/99 25/2/99 450 500 Miss
1800 26/2/99 26/2/99 700 650 Miss
1820 26/2/99 26/2/99 1000 1000 Hit
Customer Service Report – Customer Service Report – Against Request DateAgainst Request Date
Customer Service = 2/6 = 33 %
© The Delos Partnership 2007 page 98
Order Promise Date
Actual Date
Promised Quantity
Actual Quantity
Hit/ Miss
1435 23/2/99 23/2/99 1050 1050 Hit 1560 23/2/99 23/2/99 2000 2000 Hit 1573 24/2/99 23/2/99 300 300 Hit 1745 25/2/99 25/2/99 450 450 Hit 1800 26/2/99 26/2/99 650 650 Hit 1820 26/2/99 26/2/99 1000 1000 Hit
Customer Service Report – Against Customer Service Report – Against Promise DatePromise Date
Customer Service = 6/6 =100 %
© The Delos Partnership 2007 page 99
Human ResourcesHuman Resources
1. Plan for Direct and Indirect labour requirements
2. Organisational development
3. Training plans by individual as a result of Training Needs analysis• What financial benefits being delivered ?• What resource issues exist ?
4. Management of• Pay negotiations• Move to Annualised hours
5. Downsizing, Rightsizing, upsizing, outsourcing
© The Delos Partnership 2007 page 100
Quality AssuranceQuality AssuranceTime
period2005Q3
2005Q4
2006Q1
2006Q2
2006Q3
2006Q4
>>>>>>
2010Q4
Numbers of unitsUnit Of Measure
75 75 100 100 100 100 150
QA on manufacturing and assembly
12 12 18 16 14 14 18
New product project A (Strategic plan ref # 12)
1 2 3 2 1 0 0
New product project B (Strategic plan ref # 06)
0 0 1 2 3 3 0
New Layout Project (Strategic plan ref # 15)
1 1 1 2 4 1 0
Total # of people 14 15 23 22 22 18 18
© The Delos Partnership 2007 page 101
Support Review MeetingSupport Review Meeting
• Update on new Products/Projects•Latest projection of demand and supply and inventory/shipments in Financial terms• Projection of Overheads• Assumptions on debtors creditors/debtors• Performance Measures•Strategic financial plan
• Recommendations for resolving issues• Actions to meet plan• Agreed revised financial plan• Proposals for improving process
Inputs Outputs
Agenda
1. Latest projections on Profit and cash flow
2. Issues in meeting strategic plan
3. Proposals for resolving issues
4. Performance Measures
Agenda
1. Latest projections on Profit and cash flow
2. Issues in meeting strategic plan
3. Proposals for resolving issues
4. Performance Measures
© The Delos Partnership 2007 page 102
Framework for Process ReviewFramework for Process ReviewProcess Name : Process owner :Process Name : Process owner :
Inputs:Inputs: Purpose:Purpose: Outputs:Outputs:
People:People: Culture/Behaviour:Culture/Behaviour: Measures:Measures:
System/module:System/module: Requirements:Requirements: Expected Actions:Expected Actions:
Link to other processes :Link to other processes :
© The Delos Partnership 2007 page 103
Need for Multi-Level Integrated PlanningNeed for Multi-Level Integrated Planning
LOCAL/COUNTRY
Brand Development
Customer’sTastes
REGIONAL/SECTOR
GLOBAL
ManufacturingEconomics
ResearchCosts
Financing
Competition
LEVEL 1
LEVEL 2
LEVEL 3
© The Delos Partnership 2007 page 104
Where do the main processes occurWhere do the main processes occur ? ?
InnovationCustomer
Relationships
SupplyManagement
FinancialPriorities
StrategicReview
LEVEL 1Customer/Country/Market
LEVEL 2Region/Country Grouping/Business Sector
LEVEL 3Region/Global
© The Delos Partnership 2007 page 105
Multi-Level Integrated Enterprise PlanningMulti-Level Integrated Enterprise Planning
Week 1 Week 2 Week 3 Week 4
DemandPlanning
DemandPlanning
DemandPlanning
DemandPlanning
DemandPlanningCustomer
New ActivityReview
Innovation
Innovation
SupplyReview
SupplyReview
SupplyReview
SupplyReview
FinancialPriorities
ConsolidatedRecocniliation
FinancialPriorities
CorporateReview
SeniorTeam
Review
GLOBAL
LOCAL
LEVEL 1Country/Market
LEVEL 2Region/Business
Unit
LEVEL 3Europe/
Global HQ
© The Delos Partnership 2007 page 106
Top Level GS&OP Process Diagram:Top Level GS&OP Process Diagram:
GlobalInnovation
CustomerDemand
SupplyPlanning
PriorityPlanning
SeniorTeam
Week 1 Week 2 Week 3 Week 4
LEVEL 1
Country
LEVEL 2
Business
Unit
LEVEL 3Global
R&TIntersiteDemand
BU Demand
CSDemand
SiteDemand
BU/CS Priority Planning
SeniorTeam
Review
GlobalPlanning
PriorityPlanningBy Site
Innovation
@Sites
SupplyPlanningBy Site
© The Delos Partnership 2007 page 107
Revised Top Level GS&OP Cycle:Revised Top Level GS&OP Cycle:
Week 3
Week 2
Week 1
Week 4
M T W FT
5 6 7 8
Calendar Month 1
1 2
9
12 13 14 15 16
19 20 21 22 23
26 27 28 3029
BU Demand
CSDemand
STR
GlobalPlanning
Site PriorityPlanning
R&T
SiteDemand
Innovation@ Sites
IntersiteDemand
BU/CS Priority Planning
SupplyPlanningBy Site
SupplyPlanningBy Site
M T W FTCalendar Month 2
62 3 4 5
139 10 11 12
2016 17 18 19
2723 24 25 26
30 31
STR
GlobalPlanning
BU Demand
CSDemand
SiteDemand
Innovation@ Sites
IntersiteDemand
Site PriorityPlanning
BU/CS Priority Planning
R&T