Five Strategies for Making

Manufacturing Pay

Louis Columbus Cincom Systems

Speed Is New The Platform Are passionate about improving the accuracy and

speed of Demand Management

Managing variability in their supply chains for

competitive advantage

Reducing manufacturing costs by coordinating

Demand Management and Quality

Increasing profitability by knowing which deals to take

Drive down cycle times by continually improving the

Sales & Operations Planning Process (S&OP)

Are passionate about improving the accuracy

and speed of Demand Management

Strong Focus On Analytics And An Effort To Continually

Improve Permeate Highest Performing Companies

Dashboards: Less is more (6 metrics total, all measuring collaboration)

Managing variability in their supply chains using Demand Planning

Reducing manufacturing costs by coordinating

Demand Management and Quality

Obsessed with Quality

Energized with the vision of seeing

their products last decades longer

than anyone predicted

Credit: NASA/JPL-Caltech)

GKN Aerospace Results Achieved:

• 50 percent reduction in Total Cost of

Ownership (TCO) of enterprise

system

• $25-million reduction in inventory

investment in the first six months

• 42 percent increase in inventory turns

• 38 percent reduction in cycle time,

improved electronic collaboration with

key customers and more.

Increasing profitability by knowing which deals to take

Increasing profits by knowing which deals to take

Manual, fragmented processes driving suboptimal decisions leading to lost opportunities

Lack of knowledge transfer from engineering to project management & Sales slows bids, estimates and contracts to a crawl

Lost profitability

due to lack of accuracy on quotes, bids and pricing

Lack of project

selection and prioritization

based on profitability

Input: RFPs,

Contracts Orders

Margins Output: Products and Services

Finding Competitive Advantage

Massive Overcommitments lead to lost sales and customers Lack of agility

and flexibility in responding to change orders and ECNs in a timely manner

Inconsistent & conflicting SLA performance &

compliance

Massive time drains due to

chaotic bidding, estimating and contract mgmt.

llifecycle

Input: RFPs,

Contracts Orders

Margins Output: Products and Services

Funding Competitive Advantage

Higher Customer

Satisfaction Levels

leading to greater profits

50%+ increase in

project completion rate, under budget and on schedule

67%

reduction

in quoting

and order

rework

4X reduction in

ECNs;

consolidation

of product

changes

34%

increase in

quoting &

pricing

accuracy

54% increase in

perfect order

performance

34% increase in

SLA

performance

and 25%

reduction in

compliance

costs

2X increase in

contract closure

rates; 58%

increase in

profitability from

better clause

management

Increasing profits by knowing which deals to take

Drive down cycle times by continually improving the Sales & Operations Planning Process (S&OP)

Best Practice: Making Sales & Operations Planning (S&OP)

and Demand Planning Strategic with a 3 to 5 yr. horizon

The S&OP Process At Boeing

Sources: WSJ, Purchasing.com, AMR Research

Launch Sequence Making Manufacturing Pay

Are passionate about improving the accuracy and speed of Demand

Management

Managing variability in their supply chains for competitive advantage

Reducing manufacturing costs by coordinating

Demand Management and Quality

Increasing profitability by knowing which deals to take

Drive down cycle times by continually improving the Sales & Operations

Planning Process (S&OP)

Thank You

2012 Cincom Systems, Inc. All Rights Reserved

Developed in the U.S.A.

CINCOM, the Quadrant Logo, and Simplification Through Innovation are registered trademarks of Cincom Systems, Inc.

All other trademarks belong to their respective companies.

For more information visit: http://erp.cincom.com/

lcolumbus@cincom.com