s&op innovation, marietta

1

Marietta Corporation

Dan KeefeSenior Vice President, Operations & Supply Chain

S&OP Innovation

2

Agenda

Brief

Introduction

Marietta

Corporation

1

Q&ABEFOREHighlights

of S&OP

Innovation

AFTER

2 3 4 5

3

Personal care

Health & beauty

Cosmetics

Household

Pharmaceutical (OTC)

Food

Marietta Corporation: Introduction

Contract Manufacturing

Sample-size hotel amenities

Retail hotel amenities

Hospitality

4

Snapshot: BEFORE

5

Snapshot - BEFORE

Inventory Levels: Up

Service Levels: Down

Backorder Levels: Up

SLOB Levels: Up

6

Service Level

0

10

20

30

40

50

60

70

80

90

100

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Cortland Customer Attainment FY09

FY 09

( % )

7

Inventory Levels

Marietta Inventory Levels

0

5000

10000

15000

20000

25000

30000

FY08 FY09 FY10 FY11

$m

Totals

8

SLOB (Slow Moving or Obsolete)

3,000

3,100

3,200

3,300

Sep Oct Nov Dec Jan Feb Mar

SLOB Units

Units (1,000's)

9

Backorders

0

50

100

150

200

250

300

350

400

450

500

Date

11/0

9/0

9

12/2

8/0

9

02/1

5/1

0

04/0

5/1

0

05/2

4/1

0

07/1

2/1

0

08/3

0/1

0

10/1

8/1

0

NY Weekly Backorder Graph ( $ )

10

Materials Impact

240

250

260

270

280

290

300

310

Sep Oct Nov Dec Jan Feb Mar

Material Availability Downtime Impact

No Components

( Hours )

11

Marietta’s Solution: S&OP Innovation

• System-Wide

• Integrated

• Harmonized

BPCS (Business Planning and Control System)

Application of Lean Sigma tools to drive progress

12

Snapshot: AFTER

13

Snapshot - AFTER

Inventory Levels: Down

Service Levels: Up

Backorder Levels: Down

SLOB Levels: Down

14

Service Level

0

10

20

30

40

50

60

70

80

90

100

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Customer Attainment FY09 vs FY10

FY 10 FY 09

( % )

15

Inventory Levels

Marietta Inventory Levels

0

5000

10000

15000

20000

25000

30000

FY08 FY09 FY10 FY11

$m

Totals

16

Backorders

0

50

100

150

200

250

300

350

400

450

500

Date

11/0

9/0

9

12/2

8/0

9

02/1

5/1

0

04/0

5/1

0

05/2

4/1

0

07/1

2/1

0

08/3

0/1

0

10/1

8/1

0

NY Weekly Backorder Graph ( $ )

17

SLOB

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Mar April May June July Aug Sep Oct

SLOB Units

Units (1,000's)

18

Materials Availability

0

50

100

150

200

250

April May June July Aug Sep Oct

Materials Availability Impact on Plant Performance

No Components

( Hours )

19

Highlights of S&OP Innovation

20

Process Control Model

PLAN

EXECUTE

MEASURE

IMPROVE

21

Highlight 1 – “Total System”

– Finance

– Planning

– Purchasing

– Quality

– Demand – Forecast

– Inventory Control

PLANTS

22

Highlight 2 – “E-Connectivity”

– Portal

– EDI

– Flat File

– Upload to their SAP

CUSTOMERS

VENDORS

– Flat File

– EDI

– Work in Process

23

Highlight 3 – Spec Harmonization

– Master Batch Records

– Master Production Records

– Process Specifications

PRODUCTION

Now being automated

and tied to BPCSQUALITY

– Quality Assurance (QA)

Specifications

– QA Documentation

BPCS-Business Control Planning System

24

Highlight 4 – Metrics!!!

MEASUREMENT of EVERYTHING

– Every Department!

– Every Process!

CADENCE of ACCOUNTABILITY

DATA & TREND ANALYSES

25

Highlight 5 – “Back Bone”

PROCEDURES

TRAINING

AUDITING

26

Highlight 6 – Process Improvement Teams

VALUE STREAM MAPPING

ELIMINATION of NON-VALUE-ADDED

STANDARDIZATION / OPTIMIZATION

27

Industry First: Marietta Service Guarantee

• 2010: Implemented first and only product

guarantee in the industry

Top Quality Service

Award in 2009 for

Customer Service from

American Hotel

Register

We are so confident in our production

dependability that you will receive free

product if we can’t fill your order

as agreed.*

28

Questions & Answers

29

THANK YOU