kinaxis - continuous s&op for high-tech/electronics manufacturers
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Trevor Miles, director of thought leadership at Kinaxis, recently presented at the Sales and Operations Planning Summit this year. Here is the slide deck from his presentation. To watch the recording of his presentation, visit: http://www.kinaxis.com/campaign/slides-continous-sop-for-high-tech-electronics/TRANSCRIPT
- 1. Copyright 2011 Kinaxis Inc. All Rights Reserved. 1
2. Continuous and Collaborative S&OP Trevor Miles director, thought leadership, Kinaxis [email protected] @milesaheadCopyright 2011 Kinaxis Inc. All Rights Reserved. 3. Companies cant predict thefuture,build organizations that willsurvive and flourish underany possible future.Source: McKinsey Quarterly, Dynamic management: Better decisions in uncertain times, December 2009 Copyright 2011 Kinaxis Inc. All Rights Reserved.3 4. fixed annual planning andbudget processes areantithetical to timelystrategy setting and decisionmaking.Source: McKinsey Quarterly, Dynamic management: Better decisions in uncertain times, December 2009Copyright 2011 Kinaxis Inc. All Rights Reserved. 4 5. A volatile economy makestraditional budgetsobsolete before theyre evencompleted. New approaches:1.Scenario planning with trigger events2.Zero-based budgeting3.Rolling forecasts4.Quarterly budgetingSource: McKinsey Quarterly, Just-in-time budgeting for a volatile economy, Spring 2009 Copyright 2011 Kinaxis Inc. All Rights Reserved.5 6. ProcessPeopleTechnologyCopyright 2011 Kinaxis Inc. All Rights Reserved. 6 7. [technology] the web will changenothing until we use itfor that propose Source: http://www.euansemple.com/theobvious/2011/1/20/does-the-web-change-everything.html Copyright 2011 Kinaxis Inc. All Rights Reserved.7 8. Different skills/people Different processes Different results Copyright 2011 Kinaxis Inc. All Rights Reserved. 8 9. S&OP Balancing Competing Goals Goal: Make the financial budget. Top-down focus. Wants: Control and predictability of operations Forecast: The budget/annual operating planFinanceGoal: MaximizeGoal: Minimize supplyrevenue and marketchain costs, often Demandshare SideinventorySales andOperationsWants: Guaranteed Marketing SupplyWants: Minimumproduct availability Side demand uncertaintyForecast: Sales planForecast: Supply plan Supply Chain Goal: A feasible plan. Bottom-up focus Wants: Minimize risk and disruption Forecast: The demand planCopyright 2011 Kinaxis Inc. All Rights Reserved.99 10. S&OP in the Overall Planning ProcessBusinessTactical Strategy Planning S&OP Planning ExecutionFinancialDegrees of FreedomCapacityInformationSourcingScenario Planning black Inventoryholes ProductDemand Lack of visibility Copyright 2011 Kinaxis Inc. All Rights Reserved. 10 11. Integrated Business Planning the Goal Integrated Business PlanningBusiness Tactical Strategy Planning S&OPPlanning ExecutionFinancialDegrees of FreedomCapacityScenario PlanningSourcing Inventory ProductDemand Copyright 2011 Kinaxis Inc. All Rights Reserved. 11 12. Traditional Planning Process SegmentationCopyright 2011 Kinaxis Inc. All Rights Reserved. 12 13. Continuous and Collaborative S&OPCopyright 2011 Kinaxis Inc. All Rights Reserved. 13 14. If I had asked people what they wanted,they would have said faster horses - Henry FordCopyright 2011 Kinaxis Inc. All Rights Reserved.14 15. Continuous and Collaborative S&OP AND, not ORCollaborative, not linear Event-driven, not calendar-drivenEffective, and efficientCopyright 2011 Kinaxis Inc. All Rights Reserved. 15 16. Copyright 2011 Kinaxis Inc. All Rights Reserved. 16 17. Thank you! Questions?Copyright 2011 Kinaxis Inc. All Rights Reserved. 18. Companies cantpredict thefuture, build organizations thatwill survive and flourishunder any possible future.Source: McKinsey Quarterly, Dynamic management: Better decisions in uncertain times, December 2009 Copyright 2011 Kinaxis Inc. All Rights Reserved.18 19. fixed annual planning and budgetprocesses are antitheticalto timely strategy setting anddecision making.Source: McKinsey Quarterly, Dynamic management: Better decisions in uncertain times, December 2009Copyright 2011 Kinaxis Inc. All Rights Reserved. 19 20. A volatile economy makestraditional budgetsobsolete before theyre evencompleted. New approaches:1.Scenario planning with trigger events2.Zero-based budgeting3.Rolling forecasts4.Quarterly budgetingSource: McKinsey Quarterly, Just-in-time budgeting for a volatile economy, Spring 2009 Copyright 2011 Kinaxis Inc. All Rights Reserved.20 21. Watch my recorded presentation from the Sales andOperations Planning Summit here:http://www.kinaxis.com/campaign/slides-continous-sop- for-high-tech-electronics/Copyright 2011 Kinaxis Inc. All Rights Reserved.21