Download - Chemical Supply Chain
- p. 1 -OM Partners © Proprietary and Confidential
How to Improve and Accelerate your S&OP process
April 20th 2010
Logichem Düsseldorf
Elke Servaes
Senior Consultant
- p. 2 -OM Partners © Proprietary and Confidential
ContentsContentsContentsContents
The OM Partners Group: The OM Partners Group: The OM Partners Group: The OM Partners Group: 5 min 5 min 5 min 5 min - Who we areWho we areWho we areWho we are- What we doWhat we doWhat we doWhat we do
How to improve & accelerate your S&OP process with OMP PlusHow to improve & accelerate your S&OP process with OMP PlusHow to improve & accelerate your S&OP process with OMP PlusHow to improve & accelerate your S&OP process with OMP Plus 35 min35 min35 min35 min- S&OP?S&OP?S&OP?S&OP?- S&OP according to OM PartnersS&OP according to OM PartnersS&OP according to OM PartnersS&OP according to OM Partners
- p. 3 -OM Partners © Proprietary and Confidential
ContentsContentsContentsContents
The OM Partners Group: The OM Partners Group: The OM Partners Group: The OM Partners Group: - Who we areWho we areWho we areWho we are- What we doWhat we doWhat we doWhat we do
How to improve & accelerate your S&OP process with OMP PlusHow to improve & accelerate your S&OP process with OMP PlusHow to improve & accelerate your S&OP process with OMP PlusHow to improve & accelerate your S&OP process with OMP Plus- S&OP?S&OP?S&OP?S&OP?- S&OP according to OM PartnersS&OP according to OM PartnersS&OP according to OM PartnersS&OP according to OM Partners
- p. 4 -OM Partners © Proprietary and Confidential
OM Partners = Provider of Demand and Supply Chain Planning SOM Partners = Provider of Demand and Supply Chain Planning SOM Partners = Provider of Demand and Supply Chain Planning SOM Partners = Provider of Demand and Supply Chain Planning Solutions olutions olutions olutions
SUPPLYSUPPLYSUPPLY MANUFACTURINGMANUFACTURINGMANUFACTURING DISTRIBUTIONDISTRIBUTIONDISTRIBUTION DEMANDDEMANDDEMAND
The OM Partners Group: ActivityThe OM Partners Group: ActivityThe OM Partners Group: ActivityThe OM Partners Group: Activity
- p. 5 -OM Partners © Proprietary and Confidential
The OM Partners Group: HistoryThe OM Partners Group: HistoryThe OM Partners Group: HistoryThe OM Partners Group: History
Founded in 1985Founded in 1985Founded in 1985Founded in 1985- Strong roots in Mathematical OptimizationStrong roots in Mathematical OptimizationStrong roots in Mathematical OptimizationStrong roots in Mathematical Optimization- Subsequent evolution towards Supply Chain SolutionsSubsequent evolution towards Supply Chain SolutionsSubsequent evolution towards Supply Chain SolutionsSubsequent evolution towards Supply Chain Solutions
Key figures Key figures Key figures Key figures - PersonnelPersonnelPersonnelPersonnel : 130 employees: 130 employees: 130 employees: 130 employees- TurnoverTurnoverTurnoverTurnover : 15.5 mio : 15.5 mio : 15.5 mio : 15.5 mio €€€€- ClientsClientsClientsClients : over 200 clients and 400 implementations: over 200 clients and 400 implementations: over 200 clients and 400 implementations: over 200 clients and 400 implementations
- p. 6 -OM Partners © Proprietary and Confidential
HeadquartersHeadquartersHeadquartersHeadquarters OM Partners (Antwerpen)OM Partners (Antwerpen)OM Partners (Antwerpen)OM Partners (Antwerpen)
SubsidiariesSubsidiariesSubsidiariesSubsidiaries- OM Partners France OM Partners France OM Partners France OM Partners France ---- OM Partners DeutschlandOM Partners DeutschlandOM Partners DeutschlandOM Partners Deutschland- OM Partners Nederland OM Partners Nederland OM Partners Nederland OM Partners Nederland ---- OM Partners USAOM Partners USAOM Partners USAOM Partners USA- OM Partners UKOM Partners UKOM Partners UKOM Partners UK ---- OM Partners AsiaOM Partners AsiaOM Partners AsiaOM Partners Asia
The OM Partners Group: International StructureThe OM Partners Group: International StructureThe OM Partners Group: International StructureThe OM Partners Group: International Structure
- p. 7 -OM Partners © Proprietary and Confidential
The OM Partners Group: Business PartnersThe OM Partners Group: Business PartnersThe OM Partners Group: Business PartnersThe OM Partners Group: Business Partners
Integration and consulting partnersIntegration and consulting partnersIntegration and consulting partnersIntegration and consulting partners- AccentureAccentureAccentureAccenture- CapgeminiCapgeminiCapgeminiCapgemini- TietoTietoTietoTieto- Vest CompanyVest CompanyVest CompanyVest Company- Wipro TechnologiesWipro TechnologiesWipro TechnologiesWipro Technologies- …………
Solution partnersSolution partnersSolution partnersSolution partners- Radar AutomationRadar AutomationRadar AutomationRadar Automation- OrtecOrtecOrtecOrtec
Software integration withSoftware integration withSoftware integration withSoftware integration with- OracleOracleOracleOracle- SAPSAPSAPSAP- AICOMPAICOMPAICOMPAICOMP- Solarsoft Packaging SystemsSolarsoft Packaging SystemsSolarsoft Packaging SystemsSolarsoft Packaging Systems- Business Objects (Crystal Reports) Business Objects (Crystal Reports) Business Objects (Crystal Reports) Business Objects (Crystal Reports) - MapInfoMapInfoMapInfoMapInfo
- p. 8 -OM Partners © Proprietary and Confidential
Mill ProductsMill ProductsMill ProductsMill Products
Semi ProcessSemi ProcessSemi ProcessSemi Process
The OM Partners Group: Focus IndustriesThe OM Partners Group: Focus IndustriesThe OM Partners Group: Focus IndustriesThe OM Partners Group: Focus Industries
Metals, plastics, flooring,Metals, plastics, flooring,Metals, plastics, flooring,Metals, plastics, flooring, …………Corrugated and solid board, paperCorrugated and solid board, paperCorrugated and solid board, paperCorrugated and solid board, paper
Chemicals, pharmaceuticals, starch, Chemicals, pharmaceuticals, starch, Chemicals, pharmaceuticals, starch, Chemicals, pharmaceuticals, starch, ………… Consumer goods, food and beverage, dairyConsumer goods, food and beverage, dairyConsumer goods, food and beverage, dairyConsumer goods, food and beverage, dairy…………
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The OM Partners Group: Some of our customersThe OM Partners Group: Some of our customersThe OM Partners Group: Some of our customersThe OM Partners Group: Some of our customers…………
- p. 10 -OM Partners © Proprietary and Confidential
Our added value to your supply chainOur added value to your supply chainOur added value to your supply chainOur added value to your supply chain…………
VISIBILITY
AGILITY
PROFITABILITY
- p. 11 -OM Partners © Proprietary and Confidential
Overview Planning processes in OMP PlusOverview Planning processes in OMP PlusOverview Planning processes in OMP PlusOverview Planning processes in OMP Plus
SupplySupplySupplySupply DemandDemandDemandDemandManufacturingManufacturingManufacturingManufacturing DistributionDistributionDistributionDistribution
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Inventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio Optimization
Supply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport Scheduling
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
ForecastingForecastingForecastingForecastingForecastingForecastingForecastingForecasting
Supply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network Design
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
Supply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport Planning
- p. 12 -OM Partners © Proprietary and Confidential
Inventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio Optimization
Supply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport Scheduling
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
ForecastingForecastingForecastingForecastingForecastingForecastingForecastingForecasting
Supply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network Design
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
Supply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport Planning
MultiMultiMultiMulti----LanguageLanguageLanguageLanguage
MultiMultiMultiMulti----SiteSiteSiteSite
In memory integrationIn memory integrationIn memory integrationIn memory integration
MultiMultiMultiMulti----UserUserUserUser
Common Data ModelCommon Data ModelCommon Data ModelCommon Data Model
Central databaseCentral databaseCentral databaseCentral database
SupplySupplySupplySupply DemandDemandDemandDemandManufacturingManufacturingManufacturingManufacturing DistributionDistributionDistributionDistribution
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Supported by only one tool… OMP Plus
ModularModularModularModular
OMP Plus: Taking Integration To The Next LevelOMP Plus: Taking Integration To The Next LevelOMP Plus: Taking Integration To The Next LevelOMP Plus: Taking Integration To The Next Level
- p. 13 -OM Partners © Proprietary and Confidential
Values Values Values Values
- VisibilityVisibilityVisibilityVisibility
- AgilityAgilityAgilityAgility
- ProfitabilityProfitabilityProfitabilityProfitability
Our Solutions = Software Products + Services + Commitment
Our Commitment =
To make it work To keep it running
The OM Partners The OM Partners The OM Partners The OM Partners Solution: more than just softwareSolution: more than just softwareSolution: more than just softwareSolution: more than just software…………
Services Services Services Services
- Business consultancyBusiness consultancyBusiness consultancyBusiness consultancy
- ImplementationImplementationImplementationImplementation
- Support ServicesSupport ServicesSupport ServicesSupport Services
- p. 14 -OM Partners © Proprietary and Confidential
ContentsContentsContentsContents
The OM Partners Group The OM Partners Group The OM Partners Group The OM Partners Group - Who we areWho we areWho we areWho we are- What we doWhat we doWhat we doWhat we do
How to improve & accelerate your S&OP process with OMP PlusHow to improve & accelerate your S&OP process with OMP PlusHow to improve & accelerate your S&OP process with OMP PlusHow to improve & accelerate your S&OP process with OMP Plus- S&OP?S&OP?S&OP?S&OP?- S&OP according to OM PartnersS&OP according to OM PartnersS&OP according to OM PartnersS&OP according to OM Partners
- p. 15 -OM Partners © Proprietary and Confidential
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning…………........
- p. 16 -OM Partners © Proprietary and Confidential
Why S&OP ? The general ideaWhy S&OP ? The general ideaWhy S&OP ? The general ideaWhy S&OP ? The general idea…………
If supply > demand:
• Rising inventories
• Declining profit margins
• Obsoletes
• …
If demand > supply:
• Suffering customer service
• Cost increases
(overtime, premium freight, …)
• Quality decrease because of rush
• …
Main goal of S&OP : balance supply & demand
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………… more in detail: S&OP definition (by Thomas Wallace)more in detail: S&OP definition (by Thomas Wallace)more in detail: S&OP definition (by Thomas Wallace)more in detail: S&OP definition (by Thomas Wallace)
Sales and Operations Planning (S&OP) is a business process that Sales and Operations Planning (S&OP) is a business process that Sales and Operations Planning (S&OP) is a business process that Sales and Operations Planning (S&OP) is a business process that helps companies keep helps companies keep helps companies keep helps companies keep demand and demand and demand and demand and supply in balancesupply in balancesupply in balancesupply in balance. . . .
It does that by focusing on It does that by focusing on It does that by focusing on It does that by focusing on aggregate volumesaggregate volumesaggregate volumesaggregate volumes (product families and groups) so that mix issues (product families and groups) so that mix issues (product families and groups) so that mix issues (product families and groups) so that mix issues (individual products and customer orders) can be handled more re(individual products and customer orders) can be handled more re(individual products and customer orders) can be handled more re(individual products and customer orders) can be handled more readily. adily. adily. adily.
It occurs on a It occurs on a It occurs on a It occurs on a monthly cycle monthly cycle monthly cycle monthly cycle and displays information in both and displays information in both and displays information in both and displays information in both units and dollarsunits and dollarsunits and dollarsunits and dollars, thus it integrates , thus it integrates , thus it integrates , thus it integrates operational and financial planning. operational and financial planning. operational and financial planning. operational and financial planning.
S&OP is S&OP is S&OP is S&OP is crossfunctionalcrossfunctionalcrossfunctionalcrossfunctional, involving General Management, Sales, Operations, Finance and P, involving General Management, Sales, Operations, Finance and P, involving General Management, Sales, Operations, Finance and P, involving General Management, Sales, Operations, Finance and Product roduct roduct roduct Development. Development. Development. Development.
It occurs at It occurs at It occurs at It occurs at multiple levels multiple levels multiple levels multiple levels within the company, up to and within the company, up to and within the company, up to and within the company, up to and including the executive in charge of the including the executive in charge of the including the executive in charge of the including the executive in charge of the business unitbusiness unitbusiness unitbusiness unit, e.g. division president, business unit general manager, or CEO, e.g. division president, business unit general manager, or CEO, e.g. division president, business unit general manager, or CEO, e.g. division president, business unit general manager, or CEO of a smaller corporation. of a smaller corporation. of a smaller corporation. of a smaller corporation.
S&OP S&OP S&OP S&OP links the companylinks the companylinks the companylinks the company’’’’s Strategic Plans and Business Plan to its detailed processes s Strategic Plans and Business Plan to its detailed processes s Strategic Plans and Business Plan to its detailed processes s Strategic Plans and Business Plan to its detailed processes –––– the order the order the order the order entry, master scheduling, plant scheduling, and purchasing toolsentry, master scheduling, plant scheduling, and purchasing toolsentry, master scheduling, plant scheduling, and purchasing toolsentry, master scheduling, plant scheduling, and purchasing tools it uses to run the business on a weekit uses to run the business on a weekit uses to run the business on a weekit uses to run the business on a week----totototo----week, dayweek, dayweek, dayweek, day----totototo----day, and hourday, and hourday, and hourday, and hour----totototo----hour basis. hour basis. hour basis. hour basis.
Used properly, S&OP enables the companyUsed properly, S&OP enables the companyUsed properly, S&OP enables the companyUsed properly, S&OP enables the company’’’’s managers to view the business s managers to view the business s managers to view the business s managers to view the business holisticallyholisticallyholisticallyholistically and gives them and gives them and gives them and gives them a a a a window into the future.window into the future.window into the future.window into the future.
Source : Thomas F. Wallace, Sales & Operations Planning: The How-To Handbook 2nd edition, 2004
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S&OP: GeneralS&OP: GeneralS&OP: GeneralS&OP: General
S&OP is not only / just a planning process that balances Supply S&OP is not only / just a planning process that balances Supply S&OP is not only / just a planning process that balances Supply S&OP is not only / just a planning process that balances Supply and Demand, and Demand, and Demand, and Demand, but a but a but a but a management processmanagement processmanagement processmanagement process
- Involving people from sales, operations, finance,…- With a well described process description- Following a certain workflow- Requiring quite some change management in peoples thinking
The S&OP process should be the The S&OP process should be the The S&OP process should be the The S&OP process should be the missing linkmissing linkmissing linkmissing link between between between between - The corporate business strategy - The operational day to day planning
���� A big pitfall: A big pitfall: A big pitfall: A big pitfall: Beware of Beware of Beware of Beware of ““““operationalizingoperationalizingoperationalizingoperationalizing”””” the S&OP processthe S&OP processthe S&OP processthe S&OP process
IntegrationIntegrationIntegrationIntegration with these strategic and operational planning levels with these strategic and operational planning levels with these strategic and operational planning levels with these strategic and operational planning levels - Overall consensus: is importantOverall consensus: is importantOverall consensus: is importantOverall consensus: is important
- p. 19 -OM Partners © Proprietary and Confidential
S&OP: The process descriptionS&OP: The process descriptionS&OP: The process descriptionS&OP: The process description
Data collection and preparation: - sales/marketing events- product life cycle- statistical forecasting- current performance, …
Demand review: - unconstrained forecast
Supply review: - constrained plan
Financial impact calculationReconciliation step / Pre-S&OP meeting:
- What-if analysis- SWOT analysis
Consensus meeting / Senior management review / Executive S&OP meetingCommunication of decisions
1. Collect sales and marketing information
2. Develop a demand plan
3. Generate an unconstrained consensus forecast
4. Shape the demand plan for supply
5. Make a constrained supply plan
6. Shape demand plan
7. Review the financial impact
8. Communicate the sales plan
9. Measure and communicate the plan
Typically a few weeks
TRADITIONAL SEQUENTIAL APPROACH
- p. 20 -OM Partners © Proprietary and Confidential
S&OP: The process descriptionS&OP: The process descriptionS&OP: The process descriptionS&OP: The process description
Although two typical approaches can be derived: Although two typical approaches can be derived: Although two typical approaches can be derived: Although two typical approaches can be derived:
- Spreadsheet/simulationSpreadsheet/simulationSpreadsheet/simulationSpreadsheet/simulation approachapproachapproachapproach. Flexible way to enter information. Sequential demand, supply and financial review. Trial-and-error process
- OptimizationOptimizationOptimizationOptimization approachapproachapproachapproach. Demand, supply and finance should be considered simultaneously. Precise definition of scope, constraints and objective function is required
� consistency in S&OP process. Strategic decisions can be taken into account (modeled as constraints)
- p. 21 -OM Partners © Proprietary and Confidential
ContentsContentsContentsContents
The OM Partners Group The OM Partners Group The OM Partners Group The OM Partners Group - Who we areWho we areWho we areWho we are- What we doWhat we doWhat we doWhat we do
How to improve & accelerate your S&OP process with OMP PlusHow to improve & accelerate your S&OP process with OMP PlusHow to improve & accelerate your S&OP process with OMP PlusHow to improve & accelerate your S&OP process with OMP Plus- S&OP?S&OP?S&OP?S&OP?- S&OP according to OM PartnersS&OP according to OM PartnersS&OP according to OM PartnersS&OP according to OM Partners
- p. 22 -OM Partners © Proprietary and Confidential
OM Partners S&OP Approach: the basic tradeOM Partners S&OP Approach: the basic tradeOM Partners S&OP Approach: the basic tradeOM Partners S&OP Approach: the basic trade----offsoffsoffsoffs
Capacity+ overtime, hiring, extra machines,
subcontracting, …- downtime, firing, …$ variable costs + direct fixed
costs
Demand+ marketing actions, price reductions, …- premium pricing, product/customer
portfolio rationalization$ sales price
Inventory+ anticipation stock accumulation- stock build-offs$ stock holding costs
Make trade-offs while maximizing value:expressed as contribution to profit, taking into account
gross margin - direct fixed costs and working capital constraints
- p. 23 -OM Partners © Proprietary and Confidential
OM Partners S&OP Approach (1)OM Partners S&OP Approach (1)OM Partners S&OP Approach (1)OM Partners S&OP Approach (1)
SupplySupplySupplySupply DemandDemandDemandDemandManufacturingManufacturingManufacturingManufacturing DistributionDistributionDistributionDistribution
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Inventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio Optimization
Supply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingOrder Management,Order Management,Order Management,Order Management,
AllocationAllocationAllocationAllocation& Promising& Promising& Promising& Promising
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
ForecastingForecastingForecastingForecastingForecastingForecastingForecastingForecasting
Supply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network Design
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
Supply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport Planning
OMP Plus: OMP Plus: OMP Plus: OMP Plus: integrated planning levelsintegrated planning levelsintegrated planning levelsintegrated planning levels���� integration between S&OP module and:integration between S&OP module and:integration between S&OP module and:integration between S&OP module and:
- Strategic decisionsStrategic decisionsStrategic decisionsStrategic decisions- Forecasting / demand moduleForecasting / demand moduleForecasting / demand moduleForecasting / demand module- Operational (Master Planning and Scheduling) modulesOperational (Master Planning and Scheduling) modulesOperational (Master Planning and Scheduling) modulesOperational (Master Planning and Scheduling) modules
Visibility
Agility
- p. 24 -OM Partners © Proprietary and Confidential
Profitability
1. Collect sales and marketing information
2. Develop a demand plan with sales prices
Optimized forOptimized forOptimized forOptimized forhighest valuehighest valuehighest valuehighest value
3. Generate a supply and demand planoptimized for value
4. Evaluate optimized scenariosand reach a consensus
5. Communicate the sales plan
6. Measure and communicate the plan
Typically a few days
INTEGRATED OMP PLUS APPROACH1. Collect sales and marketing information
2. Develop a demand plan
3. Generate an unconstrained consensus forecast
4. Shape the demand plan for supply
5. Make a constrained supply plan
6. Shape demand plan
7. Review the financial impact
8. Communicate the sales plan
9. Measure and communicate the plan
Typically a few weeks
TRADITIONAL SEQUENTIAL APPROACH
The S&OP process: The S&OP process: The S&OP process: The S&OP process: optimization approachoptimization approachoptimization approachoptimization approach- Simultaneously looking at demand, supply and financeSimultaneously looking at demand, supply and financeSimultaneously looking at demand, supply and financeSimultaneously looking at demand, supply and finance- Including strategic business rulesIncluding strategic business rulesIncluding strategic business rulesIncluding strategic business rules- While maximizing value: value based planningWhile maximizing value: value based planningWhile maximizing value: value based planningWhile maximizing value: value based planning- Shorter planning / process cyclesShorter planning / process cyclesShorter planning / process cyclesShorter planning / process cycles
Agility
OM Partners S&OP Approach (2)OM Partners S&OP Approach (2)OM Partners S&OP Approach (2)OM Partners S&OP Approach (2)
- p. 25 -OM Partners © Proprietary and Confidential
OM Partners S&OP approach (3): Process descriptionOM Partners S&OP approach (3): Process descriptionOM Partners S&OP approach (3): Process descriptionOM Partners S&OP approach (3): Process description
S&OP preparationS&OP preparationS&OP preparationS&OP preparation• DemandDemandDemandDemand• SupplySupplySupplySupply• FinanceFinanceFinanceFinance• New product New product New product New product
& process& process& process& processdevelopmentdevelopmentdevelopmentdevelopment
PrPrPrPreeee----S&OP: S&OP: S&OP: S&OP: vvvvaluealuealuealue----based, integrated based, integrated based, integrated based, integrated
reconciliationreconciliationreconciliationreconciliation
Executive Executive Executive Executive S&OP meetingS&OP meetingS&OP meetingS&OP meeting
Plan Plan Plan Plan communicationcommunicationcommunicationcommunication
& execution& execution& execution& execution
- p. 26 -OM Partners © Proprietary and Confidential
S&OP process description: step 1S&OP process description: step 1S&OP process description: step 1S&OP process description: step 1
S&OP preparationS&OP preparationS&OP preparationS&OP preparation• DemandDemandDemandDemand• SupplySupplySupplySupply• FinanceFinanceFinanceFinance• New product New product New product New product
& process& process& process& processdevelopmentdevelopmentdevelopmentdevelopment
PrPrPrPreeee----S&OP: S&OP: S&OP: S&OP: vvvvaluealuealuealue----based, integrated based, integrated based, integrated based, integrated
reconciliationreconciliationreconciliationreconciliation
Executive Executive Executive Executive S&OP meetingS&OP meetingS&OP meetingS&OP meeting
Plan Plan Plan Plan communicationcommunicationcommunicationcommunication
& execution& execution& execution& execution
- p. 27 -OM Partners © Proprietary and Confidential
Supply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network Design
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
Supply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport Planning
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Supply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport Scheduling
ForecastingForecastingForecastingForecastingForecastingForecastingForecastingForecasting
Planning Functionality: OverviewPlanning Functionality: OverviewPlanning Functionality: OverviewPlanning Functionality: Overview
Inventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio Optimization
SupplySupplySupplySupply DemandDemandDemandDemandManufacturingManufacturingManufacturingManufacturing DistributionDistributionDistributionDistribution
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Inventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio Optimization
Supply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport Scheduling
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
ForecastingForecastingForecastingForecastingForecastingForecastingForecastingForecasting
Supply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network Design
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
Supply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningERPERPERPERP
& & & & MESMESMESMES
ERPERPERPERP& & & &
MESMESMESMES
OMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGER
- p. 28 -OM Partners © Proprietary and Confidential
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Step 1a : Integrated Demand preparationStep 1a : Integrated Demand preparationStep 1a : Integrated Demand preparationStep 1a : Integrated Demand preparation
ERPERPERPERP& & & &
MESMESMESMES
ERPERPERPERP& & & &
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Supply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network Design
Supply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport Scheduling
ForecastingForecastingForecastingForecastingForecastingForecastingForecastingForecastingUnconstrained Unconstrained Unconstrained Unconstrained
forecastforecastforecastforecast
OMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGER
Supply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport Planning
Inventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio Optimization
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
Sales Sales Sales Sales historyhistoryhistoryhistory
Visibility
Forecasting: Forecasting: Forecasting: Forecasting:
Statistical fcst
PLC mgmt
Promotion mgmt
Forecasting: Forecasting: Forecasting: Forecasting:
Statistical fcst
PLC mgmt
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Sales pricesSales pricesSales pricesSales prices
- p. 29 -OM Partners © Proprietary and Confidential
Integrated Forecasting / S&OP ViewIntegrated Forecasting / S&OP ViewIntegrated Forecasting / S&OP ViewIntegrated Forecasting / S&OP View
Generate unconstrained Generate unconstrained Generate unconstrained Generate unconstrained S&OP forecastS&OP forecastS&OP forecastS&OP forecast
S&OP PyramidS&OP PyramidS&OP PyramidS&OP Pyramid Forecast graph Forecast graph Forecast graph Forecast graph of selectionof selectionof selectionof selection
Past MonthsPast MonthsPast MonthsPast MonthsYear TotalsYear TotalsYear TotalsYear Totals
- p. 30 -OM Partners © Proprietary and Confidential
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Step 1b : Integrated (operational) Supply preparationStep 1b : Integrated (operational) Supply preparationStep 1b : Integrated (operational) Supply preparationStep 1b : Integrated (operational) Supply preparation
ERPERPERPERP& & & &
MESMESMESMES
ERPERPERPERP& & & &
MESMESMESMES
Supply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network Design
Sales Sales Sales Sales historyhistoryhistoryhistory
ForecastingForecastingForecastingForecastingForecastingForecastingForecastingForecasting
Unconstrained Unconstrained Unconstrained Unconstrained forecastforecastforecastforecast
OMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGER
Inventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio Optimization
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
-Planning Model Planning Model Planning Model Planning Model (prod., transp., purch. and subcontr. capabilities)
- Supply costsSupply costsSupply costsSupply costs
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
-Planning Model Planning Model Planning Model Planning Model (prod., transp., purch. and subcontr. capabilities)
- Supply costsSupply costsSupply costsSupply costs
Visibility
Plan + stockPlan + stockPlan + stockPlan + stock
ScheduleScheduleScheduleSchedule
Supply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport Scheduling
Supply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport Planning
Supply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport Scheduling
Sales pricesSales pricesSales pricesSales prices
- p. 31 -OM Partners © Proprietary and Confidential
Zoom in on supply planning : integrated with all planning levelsZoom in on supply planning : integrated with all planning levelsZoom in on supply planning : integrated with all planning levelsZoom in on supply planning : integrated with all planning levels
Days Weeks Months
Scheduling
S&OP
MPS/deployment
- p. 32 -OM Partners © Proprietary and Confidential
Integrated Supply / S&OP ViewIntegrated Supply / S&OP ViewIntegrated Supply / S&OP ViewIntegrated Supply / S&OP View
OM Partners © Proprietary and Confidential
Month/Quarter bucketsMonth/Quarter bucketsMonth/Quarter bucketsMonth/Quarter buckets
Scheduled productions are Scheduled productions are Scheduled productions are Scheduled productions are input for S&OP cycleinput for S&OP cycleinput for S&OP cycleinput for S&OP cycle
S&OP Plan lineS&OP Plan lineS&OP Plan lineS&OP Plan line
Campaign GanttCampaign GanttCampaign GanttCampaign Gantt
- p. 33 -OM Partners © Proprietary and Confidential
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Step 1b : Integrated (strategic) Supply preparationStep 1b : Integrated (strategic) Supply preparationStep 1b : Integrated (strategic) Supply preparationStep 1b : Integrated (strategic) Supply preparation
ERPERPERPERP& & & &
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ERPERPERPERP& & & &
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Supply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network Design
Sales Sales Sales Sales historyhistoryhistoryhistory
Supply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport Scheduling
ForecastingForecastingForecastingForecastingForecastingForecastingForecastingForecasting
Unconstrained Unconstrained Unconstrained Unconstrained forecastforecastforecastforecast
OMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGER
LT capacity & Location decisionsLT capacity & Location decisionsLT capacity & Location decisionsLT capacity & Location decisions
Inventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio Optimization
Safety StocksSafety StocksSafety StocksSafety Stocks
Visibility
Supply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport Scheduling
Supply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport Planning
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
-Planning Model Planning Model Planning Model Planning Model (prod., transp., purch. and subcontr. capabilities)
- Supply costs / Sales pricesSupply costs / Sales pricesSupply costs / Sales pricesSupply costs / Sales prices
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
-Planning Model Planning Model Planning Model Planning Model (prod., transp., purch. and subcontr. capabilities)
- Supply costs / Sales pricesSupply costs / Sales pricesSupply costs / Sales pricesSupply costs / Sales prices
ScheduleScheduleScheduleSchedule
Plan + stockPlan + stockPlan + stockPlan + stock
Supply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network Design
Inventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio Optimization
Sales pricesSales pricesSales pricesSales prices
- p. 34 -OM Partners © Proprietary and Confidential
Integrated Strategic balancing / S&OP ViewIntegrated Strategic balancing / S&OP ViewIntegrated Strategic balancing / S&OP ViewIntegrated Strategic balancing / S&OP View
S&OP for 3 plants
Demand & Supply plan
for Plant A
(1 Year Aggr. Bucket)
Theoretically available capacity on machine A1
Used capacity on machine A1 (95%)
Strategic Restricted Capacity for machine A1 (based on
strategic balancing between plants)
Compared to used capacity on machine A1
(104%)
- p. 35 -OM Partners © Proprietary and Confidential
S&OP process description: step 2S&OP process description: step 2S&OP process description: step 2S&OP process description: step 2
S&OP preparationS&OP preparationS&OP preparationS&OP preparation• DemandDemandDemandDemand• SupplySupplySupplySupply• FinanceFinanceFinanceFinance• New product New product New product New product
& process& process& process& processdevelopmentdevelopmentdevelopmentdevelopment
PrPrPrPreeee----S&OP: S&OP: S&OP: S&OP: vvvvaluealuealuealue----based, integrated based, integrated based, integrated based, integrated
reconciliationreconciliationreconciliationreconciliation
Executive Executive Executive Executive S&OP meetingS&OP meetingS&OP meetingS&OP meeting
Plan Plan Plan Plan communicationcommunicationcommunicationcommunication
& execution& execution& execution& execution
- p. 36 -OM Partners © Proprietary and Confidential
Step 2 : PrStep 2 : PrStep 2 : PrStep 2 : Preeee----S&OP: valueS&OP: valueS&OP: valueS&OP: value----based, ibased, ibased, ibased, integrated reconciliationntegrated reconciliationntegrated reconciliationntegrated reconciliation
Review Review Review Review past performancepast performancepast performancepast performance: analyze gaps with previous plan: analyze gaps with previous plan: analyze gaps with previous plan: analyze gaps with previous plan
Make Make Make Make base scenariobase scenariobase scenariobase scenario- Take unconstrained forecast Take unconstrained forecast Take unconstrained forecast Take unconstrained forecast - Apply minimal supply constraintsApply minimal supply constraintsApply minimal supply constraintsApply minimal supply constraints
Make Make Make Make gap analysisgap analysisgap analysisgap analysis- Compare base scenario with previous S&OP plan, corporate targetsCompare base scenario with previous S&OP plan, corporate targetsCompare base scenario with previous S&OP plan, corporate targetsCompare base scenario with previous S&OP plan, corporate targets, , , , …………
Make Make Make Make alternative demand and supply scenariosalternative demand and supply scenariosalternative demand and supply scenariosalternative demand and supply scenarios based on typical S&OP tradebased on typical S&OP tradebased on typical S&OP tradebased on typical S&OP trade----offsoffsoffsoffs- Derived from base scenario and gap analysesDerived from base scenario and gap analysesDerived from base scenario and gap analysesDerived from base scenario and gap analyses- ValueValueValueValue----based optimization of each scenariobased optimization of each scenariobased optimization of each scenariobased optimization of each scenario- Demand shapingDemand shapingDemand shapingDemand shaping- Prepare KPI view on scenariosPrepare KPI view on scenariosPrepare KPI view on scenariosPrepare KPI view on scenarios
ReconcileReconcileReconcileReconcile demand, supply and finance viewsdemand, supply and finance viewsdemand, supply and finance viewsdemand, supply and finance views- Evaluate alternative scenarios Evaluate alternative scenarios Evaluate alternative scenarios Evaluate alternative scenarios - Select key scenariosSelect key scenariosSelect key scenariosSelect key scenarios
Prepare executive reviewPrepare executive reviewPrepare executive reviewPrepare executive review
Profitability
Agility
- p. 37 -OM Partners © Proprietary and Confidential
SalesSales
Variablecosts
Variablecosts
Percentage
capital costs
Percentage
capital costs
Total investment
Total investment
WorkingCapital
WorkingCapital
FixedcostsFixedcosts
Permanent InvestmentsPermanent Investments
EBITEBIT
Capitalcosts
Capitalcosts
Contributionmargin
Contributionmargin
EBIT after
capital costs
EBIT after
capital costs
(-) variable costs, incl. non-financial stock costs(-) variable costs, incl. non-financial stock costs
(-) financial stock costssubject to: working capital constraints
(-) financial stock costssubject to: working capital constraints
S&OP objective function S&OP objective function S&OP objective function S&OP objective function Value driver treeValue driver treeValue driver treeValue driver tree
�Select the most profitable demand
�Select most cost efficient supply, production, transport, stocking
�E.g. optimize stock levels,payment terms in different markets, …
Relationship with Relationship with Relationship with Relationship with S&OP decisionsS&OP decisionsS&OP decisionsS&OP decisions
(+) sales prices(+) sales prices
(-) only direct fixed costs(-) only direct fixed costs�Fixed costs directly linked
to S&OP decisions�Non-direct fixed costs
should be left out and not converted into variable costs
Value Based OptimizationValue Based OptimizationValue Based OptimizationValue Based Optimization
- p. 38 -OM Partners © Proprietary and Confidential
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Value based optimizationValue based optimizationValue based optimizationValue based optimization
ERPERPERPERP& & & &
MESMESMESMES
ERPERPERPERP& & & &
MESMESMESMES
Supply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network Design
Sales Sales Sales Sales historyhistoryhistoryhistory
Supply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport Scheduling
ForecastingForecastingForecastingForecastingForecastingForecastingForecastingForecasting
Unconstrained Unconstrained Unconstrained Unconstrained forecastforecastforecastforecast
OMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGER
LT capacity & Location decisionsLT capacity & Location decisionsLT capacity & Location decisionsLT capacity & Location decisions
Inventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio Optimization
Safety StocksSafety StocksSafety StocksSafety Stocks
Supply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport Planning
ScheduleScheduleScheduleSchedule
Profitability
Plan + stockPlan + stockPlan + stockPlan + stock
Sales pricesSales pricesSales pricesSales prices
- p. 39 -OM Partners © Proprietary and Confidential
Limited Capacity vs. Capacity with extra shiftLimited Capacity vs. Capacity with extra shiftLimited Capacity vs. Capacity with extra shiftLimited Capacity vs. Capacity with extra shift
Solver Strategies: Scenario ManagementSolver Strategies: Scenario ManagementSolver Strategies: Scenario ManagementSolver Strategies: Scenario Management
With extra shiftWith extra shiftWith extra shiftWith extra shift
Base scenarioBase scenarioBase scenarioBase scenario
Shift Base
- p. 40 -OM Partners © Proprietary and Confidential
S&OP process description: step 3S&OP process description: step 3S&OP process description: step 3S&OP process description: step 3
S&OP preparationS&OP preparationS&OP preparationS&OP preparation• DemandDemandDemandDemand• SupplySupplySupplySupply• FinanceFinanceFinanceFinance• New product New product New product New product
& process& process& process& processdevelopmentdevelopmentdevelopmentdevelopment
PrPrPrPreeee----S&OP: S&OP: S&OP: S&OP: vvvvaluealuealuealue----based, integrated based, integrated based, integrated based, integrated
reconciliationreconciliationreconciliationreconciliation
Executive Executive Executive Executive S&OP meetingS&OP meetingS&OP meetingS&OP meeting
Plan Plan Plan Plan communicationcommunicationcommunicationcommunication
& execution& execution& execution& execution
- p. 41 -OM Partners © Proprietary and Confidential
Step 3 : Executive S&OP meetingStep 3 : Executive S&OP meetingStep 3 : Executive S&OP meetingStep 3 : Executive S&OP meeting
Review Review Review Review past performancepast performancepast performancepast performance
Decision makingDecision makingDecision makingDecision making on key scenarioson key scenarioson key scenarioson key scenarios- Validation based on KPIs, assumptions and SWOT analysisValidation based on KPIs, assumptions and SWOT analysisValidation based on KPIs, assumptions and SWOT analysisValidation based on KPIs, assumptions and SWOT analysis- TieTieTieTie----breaking when prebreaking when prebreaking when prebreaking when pre----S&OP was unable to reach consensusS&OP was unable to reach consensusS&OP was unable to reach consensusS&OP was unable to reach consensus- Check alignment with business plan / budget & corporate strategyCheck alignment with business plan / budget & corporate strategyCheck alignment with business plan / budget & corporate strategyCheck alignment with business plan / budget & corporate strategy
Define Define Define Define action planaction planaction planaction plan- Actions on gaps between plan and performanceActions on gaps between plan and performanceActions on gaps between plan and performanceActions on gaps between plan and performance- Actions on consensus planActions on consensus planActions on consensus planActions on consensus plan- WhatWhatWhatWhat----if scenarios for evaluation in next S&OP cyclesif scenarios for evaluation in next S&OP cyclesif scenarios for evaluation in next S&OP cyclesif scenarios for evaluation in next S&OP cycles
WhoWhoWhoWho- Senior managers from supply, sales and financeSenior managers from supply, sales and financeSenior managers from supply, sales and financeSenior managers from supply, sales and finance- KeyKeyKeyKey----users from supply, sales and financeusers from supply, sales and financeusers from supply, sales and financeusers from supply, sales and finance
Agility
Visibility
- p. 42 -OM Partners © Proprietary and Confidential
KPI report: Scenario ManagementKPI report: Scenario ManagementKPI report: Scenario ManagementKPI report: Scenario Management
Different ScenariosDifferent ScenariosDifferent ScenariosDifferent Scenarios
Different KPIDifferent KPIDifferent KPIDifferent KPI’’’’ssss
ScenarioScenarioScenarioScenarioComparison chartComparison chartComparison chartComparison chart
- p. 43 -OM Partners © Proprietary and Confidential
KPI report: Capacity reportKPI report: Capacity reportKPI report: Capacity reportKPI report: Capacity report
Different KPIDifferent KPIDifferent KPIDifferent KPI’’’’ssss
- p. 44 -OM Partners © Proprietary and Confidential
KPI report: Service Levels and Inventory reportKPI report: Service Levels and Inventory reportKPI report: Service Levels and Inventory reportKPI report: Service Levels and Inventory report
KPI AlertsKPI AlertsKPI AlertsKPI Alerts
- p. 45 -OM Partners © Proprietary and Confidential
OMP Reporter: Crystal Reports and Scenario ManagementOMP Reporter: Crystal Reports and Scenario ManagementOMP Reporter: Crystal Reports and Scenario ManagementOMP Reporter: Crystal Reports and Scenario Management
- p. 46 -OM Partners © Proprietary and Confidential
OMP Reporter : OLAP cubesOMP Reporter : OLAP cubesOMP Reporter : OLAP cubesOMP Reporter : OLAP cubes
OLAP Cubes OLAP Cubes OLAP Cubes OLAP Cubes - An OLAP An OLAP An OLAP An OLAP (OnLine Analytical Processing)(OnLine Analytical Processing)(OnLine Analytical Processing)(OnLine Analytical Processing) Cube is a data structure that allows fast and Cube is a data structure that allows fast and Cube is a data structure that allows fast and Cube is a data structure that allows fast and
flexible analysis of dataflexible analysis of dataflexible analysis of dataflexible analysis of data- Based on a set of predefined Based on a set of predefined Based on a set of predefined Based on a set of predefined ““““measuresmeasuresmeasuresmeasures”””” categorized by dimensionscategorized by dimensionscategorized by dimensionscategorized by dimensions- The tool allows to view or The tool allows to view or The tool allows to view or The tool allows to view or ““““pivotpivotpivotpivot”””” the data in numerous waysthe data in numerous waysthe data in numerous waysthe data in numerous ways
- p. 47 -OM Partners © Proprietary and Confidential
S&OP process description: step 4S&OP process description: step 4S&OP process description: step 4S&OP process description: step 4
S&OP preparationS&OP preparationS&OP preparationS&OP preparation• DemandDemandDemandDemand• SupplySupplySupplySupply• FinanceFinanceFinanceFinance• New product New product New product New product
& process& process& process& processdevelopmentdevelopmentdevelopmentdevelopment
PrPrPrPreeee----S&OP: S&OP: S&OP: S&OP: vvvvaluealuealuealue----based, integrated based, integrated based, integrated based, integrated
reconciliationreconciliationreconciliationreconciliation
Executive Executive Executive Executive S&OP meetingS&OP meetingS&OP meetingS&OP meeting
Plan Plan Plan Plan communicationcommunicationcommunicationcommunication
& execution& execution& execution& execution
- p. 48 -OM Partners © Proprietary and Confidential
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
Step 4: Integrated communicationStep 4: Integrated communicationStep 4: Integrated communicationStep 4: Integrated communication
ERPERPERPERP& & & &
MESMESMESMES
ERPERPERPERP& & & &
MESMESMESMES
Supply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network Design
Sales Sales Sales Sales historyhistoryhistoryhistory
Supply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport Scheduling
ForecastingForecastingForecastingForecastingForecastingForecastingForecastingForecasting
Unconstrained Unconstrained Unconstrained Unconstrained forecastforecastforecastforecast
OMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGEROMP FEEDBACK MANAGER
Plan +
stock
LT capacity & Location decisionsLT capacity & Location decisionsLT capacity & Location decisionsLT capacity & Location decisions
Supply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport Planning
Inventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio Optimization
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
Safety StocksSafety StocksSafety StocksSafety Stocks
Schedule
Constrained Constrained Constrained Constrained forecastforecastforecastforecastOperations plan Operations plan Operations plan Operations plan
• SourcingSourcingSourcingSourcing• Stock targetsStock targetsStock targetsStock targets• Capacity decisionsCapacity decisionsCapacity decisionsCapacity decisions
Visibility
SKU constrainedSKU constrainedSKU constrainedSKU constrainedforecastforecastforecastforecast
Sales pricesSales pricesSales pricesSales prices
- p. 49 -OM Partners © Proprietary and Confidential
Zoom in on supply planning : integrated with all planning levelsZoom in on supply planning : integrated with all planning levelsZoom in on supply planning : integrated with all planning levelsZoom in on supply planning : integrated with all planning levels
Days Weeks Months
Scheduling
S&OP
MPS/deployment
- p. 50 -OM Partners © Proprietary and Confidential
Integrated S&OP/Supply (MPS) viewIntegrated S&OP/Supply (MPS) viewIntegrated S&OP/Supply (MPS) viewIntegrated S&OP/Supply (MPS) view
S&OP view with S&OP view with S&OP view with S&OP view with monthly aggregated monthly aggregated monthly aggregated monthly aggregated
buckets and buckets and buckets and buckets and product family levelproduct family levelproduct family levelproduct family level
MPS view with MPS view with MPS view with MPS view with weekly buckets and weekly buckets and weekly buckets and weekly buckets and
product levelproduct levelproduct levelproduct level
- p. 51 -OM Partners © Proprietary and Confidential
S&OP process descriptionS&OP process descriptionS&OP process descriptionS&OP process description
S&OP preparationS&OP preparationS&OP preparationS&OP preparation• DemandDemandDemandDemand• SupplySupplySupplySupply• FinanceFinanceFinanceFinance• New product New product New product New product
& process& process& process& processdevelopmentdevelopmentdevelopmentdevelopment
PrPrPrPreeee----S&OP: S&OP: S&OP: S&OP: vvvvaluealuealuealue----based, integrated based, integrated based, integrated based, integrated
reconciliationreconciliationreconciliationreconciliation
Executive Executive Executive Executive S&OP meetingS&OP meetingS&OP meetingS&OP meeting
Plan Plan Plan Plan communicationcommunicationcommunicationcommunication
& execution& execution& execution& execution
- p. 52 -OM Partners © Proprietary and Confidential
S&OP in OMP PlusS&OP in OMP PlusS&OP in OMP PlusS&OP in OMP PlusS&OP in OMP PlusS&OP in OMP PlusS&OP in OMP PlusS&OP in OMP Plus
S&OP with OMP Plus in a mixed vendor landscape (eg. SAP)S&OP with OMP Plus in a mixed vendor landscape (eg. SAP)S&OP with OMP Plus in a mixed vendor landscape (eg. SAP)S&OP with OMP Plus in a mixed vendor landscape (eg. SAP)
OM Partners © Proprietary and Confidential
SAP R/3SAP R/3SAP R/3SAP R/3SAP R/3SAP R/3SAP R/3SAP R/3
APOAPO
DPDPDPDPDPDPDPDP
Historical sales, distribution Historical sales, distribution Historical sales, distribution Historical sales, distribution and production dataand production dataand production dataand production data
Forecast and demand plan Forecast and demand plan Forecast and demand plan Forecast and demand plan
SNPSNPSNPSNPSNPSNPSNPSNP
PP/DSPP/DSPP/DSPP/DSPP/DSPP/DSPP/DSPP/DS
Supply plan on finished good level Supply plan on finished good level Supply plan on finished good level Supply plan on finished good level
Short term supply scheduleShort term supply scheduleShort term supply scheduleShort term supply schedule
• Fragmented processes
• S&OP integrated with forecasting, planning
and scheduling
• Consolidated, Intuitive Forecasting, Planning
and Scheduling views
• Scenario Management
• Powerful End to End Optimization Engines
Supporting an integrated and collaborative S&OP Process
• Views including Historical Plan/Realization data
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S&OP preparationS&OP preparationS&OP preparationS&OP preparation• DemandDemandDemandDemand• SupplySupplySupplySupply• FinanceFinanceFinanceFinance• New product New product New product New product
& process& process& process& processdevelopmentdevelopmentdevelopmentdevelopment
PrPrPrPreeee----S&OP: S&OP: S&OP: S&OP: vvvvaluealuealuealue----based, integrated based, integrated based, integrated based, integrated
reconciliationreconciliationreconciliationreconciliation
Executive Executive Executive Executive S&OP meetingS&OP meetingS&OP meetingS&OP meeting
Plan Plan Plan Plan communicationcommunicationcommunicationcommunication
& execution& execution& execution& execution
AgilityVisibility Profitability
SupplySupplySupplySupply DemandDemandDemandDemandManufacturingManufacturingManufacturingManufacturing DistributionDistributionDistributionDistribution
Ope
ratio
nal
Ope
ratio
nal
Ope
ratio
nal
Ope
ratio
nal
Tact
ical
Tact
ical
Tact
ical
Tact
ical
Stra
tegi
cSt
rate
gic
Stra
tegi
cSt
rate
gic
Inventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio OptimizationInventory Optimization & Product Portfolio Optimization
Supply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingSupply, Manufacturing, Loading & Transport SchedulingOrder Management,Order Management,Order Management,Order Management,
AllocationAllocationAllocationAllocation& Promising& Promising& Promising& Promising
Order Management,Order Management,Order Management,Order Management,AllocationAllocationAllocationAllocation
& Promising& Promising& Promising& Promising
ForecastingForecastingForecastingForecastingForecastingForecastingForecastingForecasting
Supply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network DesignSupply Chain Network Design
Sales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations PlanningSales & Operations Planning
Supply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport PlanningSupply, Manufacturing, DRP & Transport Planning
OMP Plus as an S&OP OMP Plus as an S&OP OMP Plus as an S&OP OMP Plus as an S&OP Solution: more than just software Solution: more than just software Solution: more than just software Solution: more than just software
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