1Welcome toMSc LSCMS&OP ElectiveDr Heather SkipworthAssociate ProfessorProcurement &Supply Chan GroupOpen the chat and use chatfor questions and to supportfellow learners. We’ll check itevery now and again.Test your speakers/headphonesand microphone.Mute yourself during the sessionunless you want to speak to askor answer a question.Please turn on yourcamera. It’s muchnicer to see you all.12 34Open the Participant panel.Check you are listed with yourname.You can rename yourself byselecting the ‘More’ button when yougo over your name in the list.We’ll start at 8:30 (UK time)Before we get started can you please:This session will berecorded.Richard RenshawCranfield Visiting FellowKPMG Associate Directorwww.cranfield.ac.uk/somMSc in Logistics and SupplyChain ManagementSales and OperationsPlanning ElectiveHeather Skipworth and RichardRenshaw3Sessions 1 & 2• 1: Sales and Operations Planning – What is It?• 2: What the Chief Executive Officer (CEO) is looking for• 3: Stepping through an S&OP• 4: Challenges and tensions (including Pioneer Hi-Bred case)• 5: Pre-requisites for S&OPSessions 3 – 6• The Cranfield Currency Company case study:• Pre-reading:• Part 1 of the case and the period 1 sales forecast• Market Performance Tool with explanations for part 3 (period 3)S&OP course structurewww.cranfield.ac.uk/somFull-time MScSales and OperationsPlanning1) What is S&OP?5• the “function of setting the overall level ofmanufacturing output (production plan) and otheractivities to best satisfy the current planned levelsof sales (sales plan and/or forecasts), whilemeeting general business objectives ofprofitability, productivity, competitive customerlead times, etc., as expressed in the overallbusiness plan.S&OP – Some DefinitionsAPICS (American Production and Inventory Control Society)6• Sales and Operations Planning is a communication anddecision making process:• To balance supply and demand• To set plans for volume that will guide the detailed mix• To integrate financial, product development and operatingplansS&OP – Some DefinitionsDougherty and Gray : Sales and Operations Planning – Best Practices : 20067• A business without S&OP is like having a 6 seatvan and giving everyone a steering wheel, gaspedal and brake. Without S&OP you are not incontrol and you don’t know where you are going.S&OP is putting in a single steering wheel, brakeand gas pedal. You put in a designated driverand as a business you decide where you aregoing together…What happens without S&OP?Scott Roy – Steelwedge S&OP/IBP Community – June 20138• Short video clip• Meeting between CEO and his top management team:• Sales• Manufacturing• Procurement………..What happens without S&OP?9Video clip10• What had the sales manager done?• Who was forecasting the sales and what waswrong with the forecast?Questions11• There are mis-conceptions of S&OP…• Some see it primarily as improving sales forecast accuracy• There is a view “it manages both volume and mix, including weekly levelitem level forecasting and master scheduling”• Some views are close to it including MRPII or ERP• Others see it as including all the tactical activities to manage demand andsupply so includes elements of sales management, customer management,marketing promotion and pricing, supply chain management and otheractivities if triggered through the S&OP process• There are other terms to describe this area:• IBP – Integrated Business Planning• SIOP – Sales Inventory and Operations Planning• Executive S&OP• Enterprise S&OPS&OP – other views12The Benefits of S&OP Customer ServiceCash Flow ImprovedCost ReductionAGFAInventory 120 to 40 daysAmcorOn time delivery up 10% –high customer retentionInventory 40% downDown 2% –overtime downCast-FabHeld high customer servicelevels while sales up 40%Coca Cola MidiCustomer service defectsdown 41%Inventory down 56%Eli LillySales up 40%EMSInventory down 62%Interbake Foods90% to 98% OTIFSavings $41.3mNorse Dairy SystemsReduced inventory$600,000 – improved turns22%Reduced scrap55%Pyosa80% to 92% OTIFThe Scotts Company91% to 97.8% OTIFInventory down 33%($100m) Source: Sales and operations Planning: Best Practices, Dougherty & Gray 2006Multiplecompaniesachieveddistributionsavings of 5%to 30%13• Capacity utilisation• New product introduction• Cycle time reduction (total time to produce and distribute)• Planning Performance• Data accuracy• ProfitabilityThe Benefits of S&OPSometimes metricsneed to look at thedetail by product family(or even variant) tounderstand the trueperformance.Averages obscure anyinterdependencies.Dougherty & Gray 200614• Sales and Operations Planning emerged in the 1980’s – Oliver Wightwas one of the pioneers• It origins go back to the 1950’s and 1960’s• Leading manufacturing companies developed new methods formanaging inventory and schedules• Material Requirements Planning (MRP) was about managing themix, calculating manufacturing dates and purchase requirements• MRP evolved into something more than just a manufacturing system,linking into sales planning, marketing, new product development,finance and human resource planning. Manufacturing ResourcePlanning (MRPII) emerged• Enterprise Resource Planning (ERP) developed from MRPII in the1990s encompassing the resourcing of processes in nonmanufacturing companies• S&OP is a critical part of making MRPII/ERP work effectivelyS&OP – Background and history15S&OP and the ERP or MRPII systemVollman et. al, 200516The Four FundamentalsAdapted from Dougherty and Gray :Sales and operations Planning – Best Practices : 2006• Demand and Supply• Volume and Mix• Volume = The Big Picture :How Much?Rates of sale & productionProduct familiesMix = The Details :Which Ones?Timing / sequenceIndividual productsCustomer ordersSupply Demandnot part of S&OP, but needgood mix governanceMany to many17The sales and operations planning processEnd of month Tom Wallace: 2nd edition Sales & Operations Planning STEP 1DataGatheringSTEP 4Pre-SOPMeetingSTEP 3SupplyPlanningRegional forecastsCentral forecastUnconstrainedSupply planCapacity constraints“What-if” scenarios, Product Review(new product introductionplanning) Financial Review(assessment of thefinancial impact of thechanges to plan)STEP 5Exec SOPMeeting&OP processes areapted to organisations STEP 2DemandPlanningField sales worksheete.g. worst/best forecastRecommendationsfor executive S&OPe.g. Shell Lubricants Decisionsand may include:Weeklymeetings on astrict monthlycycle18Approach to driving improved profitabilityProfitcontributionSC ratio = Profit contributionWorking CapitalHighAt Pre-SOP meeting review supply plan by plotting product families…LowLow High TargetquadrantReduceinventoryReducecostsRationaliseproductrange 19S&OP executing the StrategyLevel ofdetailStrategicPlanningBusinessPlanning(Budget)Sales & Operations,PlanningMaster Production SchedulingManufacturing Requirement PlanningPlanningHorizon2 to 5 years(yearly)Next financialyear(yearly)1 to 2 years(monthly)~ 6 monthsto 1 year(weekly/daily)STRATEGICTACTICALOPERATIONAL~ 6 months(weekly/daily)20Why S&OP interests the CEOwww.cranfield.ac.uk/somFull-time MScSales and OperationsPlanning2) What the CEO is looking for22• Does the business generate CASH?• Does the business earn a good RETURN ONASSETS(CAPITAL EMPLOYED)?• Is the business GROWING?• If the answer to all these questions is “yes” then thebusiness is doing well!• How does S&OP contributes to delivering these?……Key questions from the CEO23• “Cash generation is the difference between all the cash that flowsinto the business and all the cash that flows out of the businessin a given time period” Ram Charan, 2001• Even big companies can face a cash crisis, e.g.• Chrysler in 1979 needed a $1.5 billion loan from the government due tohigh oil prices, low sales and high inventories (MTS)• Corona virus (2020) has forced many big companies into a cash crisiswith almost non-existent sales, still high costs and high inventories, e.g.Airbus• Finance’s involvement could improve payment terms foraccounts receivable (from customers) and accounts payable (tosuppliers) such that cash is generated, but need to considersupply chain relationshipsCash generation24• Key is the cash to cash cycle time:= inventory days + accounts receivable days – accounts payable days(-ve indicates cash is generated)• S&OP reduces inventory by balancing supply and demand• What impact do the following have?• Demand shifting to markets with long shipping times• Increasing sales in markets (or with particular customers)where accounts receivable days are long• Building ahead to compensate for capacity constraints• Sourcing from suppliers that have long shipping times• Sourcing from new suppliers that may not initially offer credit• S&OP can help mitigate all these challengesS&OP impact on cash generation25• Return on Assets = Profit / Capital employed• Two key drivers of return on assets:• Velocity: the speed with which raw materials are transformed intoproduct and in turn delivered to customers• Profit Margin: the difference between revenue and costs• S&OP increases VELOCITY through improving demand/supply matchand improving inventory turns• S&OP increases profit MARGIN through allocation:• when demand is higher than finished inventory – allocateinventory to markets which generate higher margins• when finished inventory is higher than demand – encouragemarketing to run promotions and stimulate demand in markets wheremargins are higher• How else can S&OP increase profit MARGIN?S&OP impact on Return on Assets (ROCE)26• “Growth is vital to prosperity. Every person, every company andevery national economy must grow” Charan, 2001• But can growth be achieved profitably and with no declinein velocity?S&OP promotes GROWTH (year on year increasing revenue):• Involvement of the Product Development function reduces timeto market for new products and increases reliability of launchdates• Potentially increases sales/revenue through enabling improvedcustomer service (availability and leadtime).S&OP impact on Growth27Compare 2 example businesses on cash andgrowth Which business will find it easier to grow and why? Discounter Supermarket Principle of convenience and lowprice SKUs 10,000 to 12,000 Average Turns 20 (18 daysinventory) Customers pay on 0 days asshopper pays immediately Supplier 60 day payment terms Cash to cash cycle – 42 days Department Store Principle of high service & productvariety SKUs 100,000 to 120,000 Average Turns 3 (120 daysinventory) Customers pay on 0 days asshopper pays immediately Supplier 60 day payment terms Cash to cash cycle + 60 days28‘The Five levers of business for the CEO’:impact of S&OPGrowthMargin$:£:€VelocityReturnCashAdapted from Ram Charan• Increase in customerservice – price increase• Reduction in costs• Allocation and promotionof high margin products• Flow through of productis quicker due to bettermatch between supplyand demandIncreasesprofitReducesworkingcapitalFaster newproductintroduction.ImprovedserviceAvailablecash forgrowthReducedinventoryS&OP gives visibility of projected margin and velocitywww.cranfield.ac.uk/somS&OP Process3) Step through an S&OPprocess30Organising a ‘one to one’ relationship31Organising ‘many to many’ relationships32• Typically a monthly process with the following elements• Data Gathering and Review• Understand Customer Demand• Create a Feasible Supply Plan• Partnership Meeting• Executive Meeting• The elements vary by name between organisationsS&OP process for multiple supply/demand pointsPreS&OPLocalForecastCentralReviewSupplyReviewExecS&OPPredictingDemandValidatingDemandFeasibilityof SupplyGainingInsightTakingDecisions33S&OP – Monthly Calendar34Example event Participation Matrix Week 1Week 2Week 3Week 3Week 4LocalForecastCentralReviewSupplyReviewPreS&OPExecS&OPMarketsBusiness DirectorlFinancelForecast ResponsiblellOperationsPlant 1 Ops DirectorlPlannerlProduction ManagerlPlant 2 Ops DirectorlPlannerlProduction ManagerlCentralS&OP CoordlllFinancellNew product DevlMarketinglExecExec 1lExec 2lExec 3lExec 4l Each event within theS&OP calendar has adefined set ofparticipantsThe key central supplychain events are thecentral review offorecast and pre-S&OPIssues actions anddecisions at businessunit level will besummarised for theexecutive S&OP35• What happens?• A set of numbers is generated which represent an estimate ofwhat sales are going to be for each monthly period for a giventime horizon, known as the sales forecast• It is usually composed of 2 numbers, some kind of trendbased on history plus some kind of exception not based onhistory e.g. due to promotion or competitor activity. This can bepositive, negative or zero• The 2 numbers are added together• Assumptions are captured to explain the forecast• Who does it?• This varies, could be directly from Sales or someoneresponsible for the forecast depending on the shape and sizeof organisationLocal Forecast36• What happens?• The aggregate forecast is calculated with focus on:• Large volume changes since the previous period• Areas with historically high forecast error• Areas with capacity or service challenges• Each individual market forecast is compared and challenged• Changes to the original forecast may be agreed• Who does it?• This could be a central Demand Manager/Planner someorganisations have an S&OP Manager who manages throughthe entire S&OP process, dependent on organisation size andstructureCentral Demand Review37• What happens?• The forecast for each product family is turned into a supplyplan• This will take account of lead time offsets and batch sizes ifnecessary and also capacity limits• Conduct “What if” scenario planning, e.g. additional shift,overtime, delaying a shutdown, adding an additional machine• The resulting plan indicates how many of each product typewill be produced in a given time period• Who does it?• Typically this is carried out by a Master Scheduler or SupplyPlannerSupply Review38Pre S&OP• What happens?• The issues are highlighted considering challenges from bothdemand and supply and insights gained• It enables a joined up approach (cross functional) leading torecommended actions for the executive• Many organisation also look at financial implications in thismeeting (calculating revenue and margin from the forecastedvolume) others have a separate forum to address finance• Who does it?• Some organisations have a dedicated S&OP manager to chair across functional group• Others find that since most of the pain is associated with theconstraints in supply it makes sense for the head ofmanufacturing/supply to chair this critical meeting39• What happens?• The focus is executive decision making• It utilises the insights and recommended actions from thepre-S&OP• Who does it?• The executive team representing all the functionsExecutive S&OP40LARRY LAPIDEwww.cranfield.ac.uk/somFull-time MScSales and OperationsPlanning4)S&OP challenges andtensions42A Challenge of S&OP – budgetary gaps• The business will create a budget (top down forecast) towards theend of the financial year which indicates the outline plan for thefollowing financial year and is expressed in financial terms. Thisshould represent a step towards the strategy• S&OP creates a bottom up forecast based on unit sales to enable itto plan, this is usually expressed in volume and is repeated on anongoing basis each month• As the year progresses gaps emerge between the budget (top downforecast) and S&OP (bottom up forecast)• The gaps have implications for the business that will affect customerservice, profitability, working capital and the ability to meet the budgetand the ability to generate cash43• What might happen if:1. Sales people get a bonus if they sell more than theyforecast?2. The company annual report focuses on closing inventory atthe end of the financial year?3. Manufacturing managers are rewarded for ensuringproduction machines are well utilised?4. Product availability is low and markets vary in theirprofitability?The Behaviours – discussion44• We don’t have all the data to support the process• We don’t have the mechanics to support the process• The General Manager doesn’t want to look at that much detail• We’re a marketing-orientated company, and the Generalmanager expects manufacturing to say yes• We haven’t agreed on the families• We can’t work as a team; I can do it but the others won’t• Sales and marketing are in physically different locations frommanufacturing – it’s hard to get together• What? Another meeting? My calendar is already full!There’s never a perfect time to start S&OPThe Excuses for not using S&OP45The challenge of a longleadtime new product…PIONEER HI-BREDINTERNATIONAL, INC. CASESTUDY46• Bacillus thuringiensis (“Bt.”) Hybrid corn seeds is a new productdesigned to resist the European Corn Borer (ECB) – should give higheryields• Original sales estimates for ’98, made in Feb. ’97 forecast sales of150,000 units and took into account:• Premium price, ECB infestations, lack of familiarity with “Bt.”• However, “Bt.” sales in ‘97 were higher than anticipated• Now (Sept. ‘97) excellent yields provided by “Bt.” in ‘97 and a warningof higher ECB infestations indicate much higher demand for ’98• Revised forecast requires an additional 200,000 units, which will needto be produced in winter in Latin America to meet demand by April ’98• … but this represents 20% of total winter production andproduction of other seed products will have to be reduced!Pioneer Hi-Bred International47• Sept ‘97 Vice Presidents for SCM, planning and sales meet todiscuss demand for “Bt.” corn seeds for ’98 in light of the revisedsales forecast:1. What impact does the long production lead time for the Bt.Corn seed (in excess of 6 months) have on sales forecasting?What are the key drivers of sales?2. What demand and supply factors would affect the decisionbeing made on how much “Bt.” corn to plant? On thedemand side think of your customers and competitors. On thesupply side consider also the CEO’s concerns (growth, margin,velocity).Pioneer Hi-Bred International481. What impact does the long Bt. Production lead time have onsales forecasting? What are the key drivers of sales?Pioneer Hi-Bred International492. What demand and supply factors would affect the decision beingmade on how much “Bt.” corn to plant?Pioneer Hi-Bred Internationalwww.cranfield.ac.uk/somSales andOperations Planning5) S&OP pre-requisites511. Understand Sales and Operations Planning2. Commitment and People3. Defining Families4. Planning Horizon5. Time Fences6. Supporting ToolsPrerequisites for S&OPAdapted From Richard C. Ling & Walter E. Goddard: Orchestrating Success pub. Wiley p48Chapter 2 covering pre-requisites is on Blackboard521 – Understand Sales and Operations Planning• Lead the educational process• Manage the cultural change– Information sharing– Strict monthly cycle of meetings• Accept the detail• Approve the procedures• Call the first meeting• Be there!53• S&OP processes need to be designed and implemented so thatthey are appropriate and relevant for their organisations• Feedback and feedforward is essential. Need to determine:1) Should forecast abnormal demand be fed forward to theproduction plants at the same time as to Central DemandReview?• If so, production plants can take an early overview andfeedback to Central Review whether the abnormal demand islikely to incur problems or not2) How should Central Demand Review discuss any issues eachmonth with each market/region? e.g. Innocent Drinks feedbackon forecast accuracy and bias but no blame!3) How do the outcomes of discussions at Central Review withMarkets get communicated to the plants for their Supply Review?1 – Understand S&OPEstablishing Key Principles54• What are the units of measure for volume in ERP e.g. pieces /boxes,drums, metres, Kgs etc.?• How will the volume be converted into a financial measure so thatthe business can compare forecasts with budgets• Challenges• Implication of lead time offsets• Running the SOP cycle quicker, e.g. to inform budgeting process• Closing off the end of month quickly so actual sales figures areavailable• “What if” analysis• Supplier scheduling and partnershipsAgreeing the rules1 – Understand S&OPEstablishing Key Principles55• Insist on everyone’s participation –General Manager is vital! – insisthomework be done for the meetings• S&OP process coordination must beneutral• Resolve conflict betweensales/marketing and operations –the Pre SOP meeting is vital for this!• Other functions such as Financeand New Product Developmentshould be involved at Pre SOPmeeting.• Executive SOP meeting must reviewproposed plan & make decisions2 – Commitment and People Week 1Week 2Week 3Week 3Week 4LocalForecastCentralReviewSupplyReviewPreS&OPExecS&OPMarketsBusiness DirectorlFinancelForecast ResponsiblellOperationsPlant 1 Ops DirectorlPlannerlProduction ManagerlPlant 2 Ops DirectorlPlannerlProduction ManagerlCentralS&OP CoordlllFinancellNew product DevlMarketinglExecExec 1lExec 2lExec 3lExec 4l 56“When was the last time a sales person got promotedbecause they were good at forecasting”Many anonymous supply people• Important that sales and marketing are committed to S&OP asthey promote products and provide sales forecasts.• Dialogues are also required between the Plant Managers and theSales team to understand the reliability of the forecastsAre sales motivated to participate?57• “S&OP is carried out at anaggregate level. By aggregate wemean product groupings or familiesrather than individual products oritems…..managing rates not specificworks orders.”Ling and Goddard (1988)• “Ideally the families you select shouldmeet two criteria: size andmeaningfulness:• Size: The larger the family the betterfor two reasons: first its less work,and second forecasting is alwaysmore accurate for broader groups.”3 – Defining Families58• Meaningfulness: Sales/marketingand manufacturing view productfamilies differently:• Sales/marketing look at productsthrough the customer’s eyes(functionality and market)• Manufacturing look through aprocess lens (how is itmanufactured and where)• A means of conversion may benecessary if they have different views• Monitor the conversion over time,markets and product mix change3 – Defining Families59• In manufacturing companies, a planning horizon is a future time periodduring which, departments that support production, will plan productionwork and determine material requirements• This varies from company to company“The S&OP plan must extend far enough into the future to ensure theavailability of all resources. Thus whichever resource – material,equipment, people – takes the longest determines the length of theplanning horizon.” Ling and Goddard (1988)• Should also allow for what-if resource analysis, e.g. evaluatingoutsourcing or installation of new production line.• A planning horizon of 18 to 24 months is common:• ….this allows the operational planning to cover multiple financial yearsand feed into budgeting4 – Planning Horizon60• Changes to thesupply/production plan arealways possible.• The closer in, the moreconstraints, the more cost, e.g.overtime, expediting materials.• Time fences ensure rules areapplied to balance flexibility andcost• Two types of Time fences:• DTF – Demand Time Fencea lead time that encompasses only firmorders or, where the company MakesTo Stock, it defines where theproduction plan should be frozen.• STF – Supply Time Fencetypically the longest material lead time.5 – Time FencesDTF STFCustomerOrderLeadtimeSupplyLeadtimeOrder driven Forecast driven2 wks PlaceDeliveryOrder 1 wkFinalAssembly3 wksMakeItems8 wksPurchaseItemsProductionPlanTime ForecastOrdersFIRMFLUIDFREE CapacityCODP for MTO company615 – Time Fences• Firm (or frozen) plans within theDTF – even small changes becomevery expensive as you begin topay overtime for labour, premiumprices for raw materials andpremium shipping charges.• Fluid plans between the DTFand STF – materials have beenordered, capacity beenestablished, therefore changes onproduction rates are difficult tomake – changes in priorities, onthe other hand, are commonplace.• Free plans outside the STFwhere not even material has beenorderedCustomerOrderLeadtimeSupplyLeadtimeOrder driven Forecast driven2 wks PlaceDeliveryOrder 1 wkFinalAssembly3 wksMakeItems8 wksPurchaseItemsProductionPlanTime ForcastOrdersecastFIRMFLUIDFREE CapacityCODPDTF STFTimefor MTO company62• What do they do?• Give visibility:• Replaces unwieldy spreadsheets with more visual graphs andcharts• Enable analysis and reports• Enable aggregating and disaggregating of data• Allow simulation of “what-if” scenarios• Project financial outcomes: provide KPIs and dashboard againstbudget.• Enable a workflow• Decision support6 – Supporting S&OP Tools636 – Supporting S&OP Tools64“all models are wrong, but some areuseful”Albert EinsteinA word of warning!656 – Supporting S&OP Tools66CCC Case Market Performance Tool for part 3 1 2 3 4 5 67 8 9 1011 1212 14 15MarketFamilyTypePreviousYearAnnual salescalculated inPreviousMonthThis yearYTDSALESThis YearBalance ofFORECASTThis YearSales +ForecastTOTALThis YearBUDGETblank1TotalminusBudget TMB%Total minusPreviousMonth TMP%blank2Forecast vsPreviousYear ActualBudget vsPreviousYear Actualblank3WeeklyRate ofSalesYTDWeeklyRate ofSales toYear EndBudgettedRate of SalesUK Standard DispenserA72064869 516 585756-171-23%-63-11%-19%5%8.611.714.5UK Standard DispenserB665 583 67 488 555 698-143-21%-28-5%-17%5%8.411.113.4UK Standard DispenserC429 399 36 308 344 450-106-24%-55-16%-20%5%4.57.08.7UK Recycling30646 647 83 546 629 678-49-7%-18-3%-3%5%10.412.413.0UK Recycling40408 415 60 348 408 428-20-5%-7-2%0%5%7.57.98.2UK Recycling50280 279 33 237 270 294-24-8%-9-3%-4%5%4.15.45.7UK CountersStandard5100 5008 627 4229 4856 5,355-499-9%-152-3%-5%5%78.496.1103.0UK CountersExcel6800 6686 865 5635 6500 7,140-640-9%-186-3%-4%5%108.1128.1137.3UK CountersSuperfast3960 3886 478 3284 3762 4,158-396-10%-124-3%-5%5%59.874.680.0USA Standard DispenserA600 591 84 497 581 630-49-8%-10-2%-3%5%10.511.312.1USA Standard DispenserB532 523 73 437 510 559-49-9%-13-3%-4%5%9.19.910.7USA Standard DispenserC364 359 55 301 356 382-26-7%-3-1%-2%5%6.96.87.4USA Recycling30570 578 72 494 566 599-33-5%-12-2%-1%5%9.011.211.5USA Recycling40360 364 48 310 358 378-20-5%-6-2%-1%5%6.07.07.3USA Recycling50264 269 35 229 264 277-13-5%-5-2%0%5%4.45.25.3USA CountersStandard4200 4307 553 3637 4190 4,410-220-5%-117-3%0%5%69.182.784.8USA CountersExcel5800 5963 741 5029 5770 6,090-320-5%-193-3%-1%5%92.6114.3117.1USA CountersSuperfast3960 4053 482 3429 3911 4,158-247-6%-142-4%-1%5%60.377.980.0France Standard DispenserA320 303 39 244 283 336-53-16%-20-7%-12%5%4.95.56.5France Standard DispenserB304 280 30 234 264 319-55-17%-16-6%-13%5%3.85.36.1France Standard DispenserC312 300 57 239 296 328-32-10%-4-1%-5%5%7.15.46.3France Recycling30323 330 38 277 315 339-24-7%-15-5%-2%5%4.86.36.5France Recycling40204 211 29 176 205 214-9-4%-6-3%0%5%3.64.04.1France Recycling50120 123 13 104 117 126-9-7%-6-5%-3%5%1.62.42.4France CountersStandard2550 2577 359 2147 2506 2,678-172-6%-71-3%-2%5%44.948.851.5France CountersExcel4200 4227 570 3536 4106 4,410-304-7%-121-3%-2%5%71.380.484.8France CountersSuperfast2040 2046 258 1717 1975 2,142-167-8%-71-4%-3%5%32.339.041.2Germany Standard DispenserA240 228 30 192 222 252-30-12%-6-3%-8%5%3.84.44.8Germany Standard DispenserB228 223 29 188 217 239-22-9%-6-3%-5%5%3.64.34.6Germany Standard DispenserC130 123 16 105 121 137-16-11%-2-2%-7%5%2.02.42.6Germany Recycling30209 200 26 170 196 219-23-11%-4-2%-6%5%3.33.94.2Germany Recycling40156 147 18 124 142 164-22-13%-5-4%-9%5%2.32.83.2Germany Recycling5088 87 11 74 85 92-7-8%-2-2%-3%5%1.41.71.8Germany CountersStandard1800 1727 209 1472 1681 1,890-209-11%-46-3%-7%5%26.133.536.3Germany CountersExcel2200 2118 256 1802 2058 2,310-252-11%-60-3%-6%5%32.041.044.4Germany CountersSuperfast1440 1392 170 1182 1352 1,512-160-11%-40-3%-6%5%21.326.929.1China Standard DispenserA120 122 23 99 122 126-4-3%00%2%5%2.92.32.4China Standard DispenserB171 174 41 137 178 180-2-1%42%4%5%5.13.13.5China Standard DispenserC65 64 13 52 65 68-3-5%12%0%5%1.61.21.3China Recycling30152 177 38 142 180 1602013%32%18%5%4.83.23.1China Recycling4072 83 18 66 84 76811%11%17%5%2.31.51.5China Recycling5048 58 11 47 58 50815%00%21%5%1.41.11.0China CountersStandard1350 3547 347 4330 4677 1,4183,260230%1,13024%246%5%43.498.427.3China CountersExcel1000 3083 274 4827 5101 1,0504,051386%2,01840%410%5%34.3109.720.2China CountersSuperfast600 1525 142 2139 2281 6301,651262%75633%280%5%17.848.612.1PIECES (volume)VARIANCESGROWTHRUN RATES 67S&OP Case StudyTOM WALLACE68• How long will S&OP stay popular?• Will S&OP change and evolve?• Will the S&OP software affect its growth?• Will S&OP become a real time process?• What about companies that do weekly S&OP?• Can S&OP help in launching new products?• Is S&OP strategic or tactical?Sales and Operations PlanningWallace asks where is it going?69S&OP Case StudyCranfieldCurrencyCompanyRead:• Part 1 of case• Market performancetool and crib sheet forPart 370Books on S&OP
