Exam 2 - Sales and Operations Planning Flashcards
Sales and Operations Planning
Process for integrating marketing and operations plan to develop a tactical plan
Attempt to balance supply and demand
Formal S&OP
Opportunities to…
- Share numbers
- Review data/field intelligence
- Confirm or change plans in order to reach strategic goals
- Provide a forum for multiple departments to coordinate
Quantitative Benefits
- Improved forecast accuracy
- Higher customer service
- More stable supply
- Better new product introduction
Qualitative Benefits
- Better organizational teamwork
- Faster and better aligned decision making
- Greater accountability for performance
- Better business visibility
Steps to S&OP Success
- Innovation & strategy review
- Demand review
- Supply review
- Financial integration
- Executive business review
Rolling planning horizons
Allows for re-planning every period for a given number of periods into the future
- Going from forecasted to actual data
- Machine/Equipment breakdowns or upgrades
- Labor issues (strikes)
- Social/Political issues
Lean production
Systematic method for waste minimization within a manufacturing system without sacrificing productivity
Types of waste to eliminate
Muda
Muri
Mura
Muda
Non-value adding work
Muri
“Overburden” or too much work on a single person, system, or machine
Mura
Uneven work
Types of Mudas
- Transport
- Inventory
- Motion
- Waiting
- Overproduction
- Over Processing
- Defects
Collaborative, planning, forecasting, and replenishment (CPFR)
Supply chain partners share forecast, and demand and resource plans to reduce risk
Elements of CPFR
- Strategy and planning: Changes to products, locations, pricing, promotions
- Demand and supply management: Forecasting
- Execution: Order fulfillment
- Analysis: Data on key performance metrics
Block-Chain
Decentralized digital ledger
No one owns it- vendors are hesitant (unlikely) to share all of this data openly
