Michael Ryan, Carlisle Brake & Friction

Sales & Operations Planning Summit, Boston, MA

September 25, 2014

Keeping S&OP Alive

Copyright © 2014 Carlisle Brake & Friction

2Keeping S&OP Alive ● September 25, 2014

CARLISLE INTERCONNECT

TECHNOLOGIESCARLISLE FOOD

SERVICESC A R L I S L E B R A K E

& F R I C T I O N

CARLISLE CONSTRUCTION

MATERIALS

Carlisle Companies (NYSE:CSL)

Overview

Diversified Manufacturing Conglomerate

Headquartered in Charlotte, NC

2013 Revenues: $2.9B

Public Company (CSL on NYSE)

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Markets & Applications

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Carlisle Brake & Friction

“Carlisle Brake & Friction is the first choice in innovative braking

and friction solutions for the world’s top manufacturers. Our

global manufacturing, sales and support networks ensure we

are there to serve and support our customer base, wherever

they may be.”Matt Dietrich, President CBF

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Keeping S&OP AliveMapping the Path Forward

ResultsProcess Discipline

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Why Did We Invest in an S&OP Process?

What Has S&OP Helped Us See?

What Have We Learned from S&OP?

Why Keep Going with S&OP?

Keeping S&OP AliveReflecting on S&OP

7Keeping S&OP Alive ● September 25, 2014

Why did we start an S&OP process?

• Wanted to add value to the business

• Be better suppliers for our customers

S&OP is…

• A Business Process

• Market based and customer driven

• Collaborative and cross-functional

• Metrics tracked; performance driven

• Tied to execution of strategic plans

• Process of continuous improvement

Why Did We Start an S&OP Process? What Motivated the Business?

Executive

S&OP

Product

Review

Demand

Review

Demand / Supply

Balance

Supply

Review

Integrated

Reconciliation

Closed Loop

Process

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S&OP will become “The Way We Work” at Carlisle Brake & Friction

Why “Do” S&OP?

Sales Perspective:

• Improved Supply

• Improved OTD

• Results in Sales Revenue

What’s In It For Me? (WIIFM)

Quantitative: It Can be Measured

The WIIFM of S&OPWhat’s in It For Me? CBF?

Manufacturing Perspective:

• Improved Forecasts

• Improved Communication

• Results in Better Execution

From a Business Perspective:

• Support Reaching Our 2014 Global Sales Goal

• Demonstrate Capability to Customers as a Reliable and On Time Supplier

• More Efficient Use of Capital by Linking Production, Shipments and Inventory

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What Has S&OP Helped Us See?

• Plenty of Opportunity!

– Some coming from existing broken processes / awkward practices

• S&OP Shows us the “Rocks” in the Water

What Has S&OP Helped Us See?Are the Results Measurable?

We Were… We Are… We Are Going…

• Communication by exception

• Improved Forecast Accuracy

• Plan for every part

• Align inventory to demand

Order

Management

Supply

Planning

Inventory

Management

• Daily interaction w/ plants

• No Demand Planning Org

• No Forecasting software

• Near term (<30 days) focused

• Reactive inventory mgmt.

Where…

• Moving to standard lead times

• Staffed

• Implementing Software

• Rough Cut Capacity Planning

• Calculating inventory entitlement

Demand

Planning

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What Have We Learned from S&OP?

• It’s not always easy

• Need to demonstrate tactical wins while implementing long term strategy

• No Team (Function, Group, Etc.) is Perfect

– Each brings their own perspective

– Value can mean different things

– Each Team adds value to the process!

What Have We Learned from S&OP?Are the Results Measurable?

S&OP

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Why Keep Going with S&OP?

• Value from tactical wins creates breathing room to implement strategy

• Show “Wins” for the business

• Share the spotlight

Why Keep Going with S&OP?How Do We Keep S&OP Alive?

5

1

2

34

No Process

Sustainable Process

Marginal Process

Basic Process

Linked Process

• Reactive

• Backorders

• Disconnected

• Predictive

• High Fill Rates

• Strategic

• Proactive

• Consistent Fill Rates

• Sales & Operations Linked

• Monthly Process

• Improving Fill Rates

• Routine Discussions

• Tactical (Daily)

• Poor Fill Rates

• Ad Hoc Discussions

We Are Here

• Harnessing Engagement

• Prioritizing Opportunities

• Implementing Process

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Focus on Metrics That Matter

• Customer Facing Metrics

– On Time Delivery

– Backorders

– Customer Forecast Accuracy

• Internal Metrics

– Forecast Accuracy

– Schedule Attainment

– Inventory Turns

Understand Interrelationship between Metrics

– Aligned & complementary goals

Make It MeasurableGet A Baseline, Drive Continuous Improvement

Maximum Service

Maximum Profit

Reduced

Service

Undersold

Plan

Reduced

Service

Oversold

Plan

• Lost Sales

• Backorders

• Overtime

• Expediting

• Cash

• Inventory

• Capacity

• Utilization

Profit

“One Goal, One Plan”

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Sales & Operations Planning (S&OP)Moving Forward on Our Journey

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For More Information

Mryan@CarlisleCBF.com

www.Linkedin.com/in/isolveproblems