lean and agile integr 1 © the delos partnership 2004 lean and agile applying the ideas to the...
TRANSCRIPT
Lean and Agile Integr 1 © The Delos Partnership 2004
Lean and AgileLean and Agile
Applying the ideas to the Business
Lean and Agile Integr 2 © The Delos Partnership 2004
The Delos ModelThe Delos Model
VisionVision
StrategyStrategy
PrioritisationPrioritisation
InnovationInnovationDemandDemand
SupportSupport
SupplySupply
Lean and Agile Integr 3 © The Delos Partnership 2004
Objectives for Integrated Objectives for Integrated Enterprise PlanningEnterprise Planning
• One set of numbers at all times• Integrated Plans• Realistic Plans• Teamwork• Communication of goals and objectives• Decisions made in timely fashion• Consistent performance measures• Delivery of the Strategy
Lean and Agile Integr 4 © The Delos Partnership 2004
Customer Relationship Customer Relationship StrategyStrategy
1. First Decide if you are Make to Stock or Make To Order2. Then work out the production plans
Inventory
Production
Make To Stock
Sales/Shipments
OrderBook
Sales Orders
Production/Shipments
Make To Order
Lean and Agile Integr 5 © The Delos Partnership 2004
Make to StockMake to Stock
Production = Demand Plan + (Inventory Target-
Current Inventory)
= 100 + 75 - 50)
PRODUCTION STOCK
Lean and Agile Integr 6 © The Delos Partnership 2004
Integrated Enterprise Integrated Enterprise PlanningPlanning
-3 -2 -1
Demand Plan 120 120 120
Actual Demand 119 125 132
Difference -1 5 12
Cum Diff 4 16
Months 1 2 3 4 5 6 7 8 9
Last Demand Plan 120 120 120 120 120 120 120 120 120
New Demand Plan
Difference
Cum Diff
Months Q4 Q1
360 360
-3 -2 -1
Supply Plan 125 125 125
Actual Supply 119 118 121
Difference -6 -7 -4
Cum Diff -13 -17
1 2 3 4 5 6 7 8 9
Last Supply Plan 125 125 120 120 120 120 120 120 120
New Supply Plan
Difference
Cum Diff
Q4 Q1
360 360
-3 -2 -1
Stock Plan 71 76 81
Actual Stock 66 66 59 48
Difference -5 -17 -33
1 2 3 4 5 6 7 8 9
Last Stock Plan 86 91 91 91 91 91 91 91 91
New Stock Plan
Difference
Q4 Q1
Make – To- Stock : Family Units
Lean and Agile Integr 7 © The Delos Partnership 2004
Make to OrderMake to Order
Production = Demand Plan + (Current Order Book - Orderbook Target)
= 70 + 75 - 50)
PRODUCTION ORDER BOOK
Lean and Agile Integr 8 © The Delos Partnership 2004
Integrated Business Integrated Business PlanningPlanning
-3 -2 -1
Demand Plan 70 70 70
Actual Demand 71 75 80
Difference 1 5 10
Cum Diff 6 16
Months 1 2 3 4 5 6 7 8 9
Last Demand Plan 70 70 70 70 70 70 70 70 70
New Demand Plan
Difference
Cum Diff
Months Q4 Q1
210 210
-3 -2 -1
Supply Plan 75 75 75
Actual Supply 70 69 71
Difference -5 -6 -4
Cum Diff -11 -15
1 2 3 4 5 6 7 8 9
Last Supply Plan 75 75 70 70 70 70 70 70 70
New Supply Plan
Difference
Cum Diff
Q4 Q1
210 210
-3 -2 -1
Order Book Plan 61 56 51
Actual Orders 66 67 73 82
Difference 6 17 31
1 2 3 4 5 6 7 8 9
Last Plan 46 41 41 41 41 41 41 41 41
New Plan
Difference
Q4 Q1
41 41
Make – To- Order – Family Units
Lean and Agile Integr 9 © The Delos Partnership 2004
Integrated Enterprise Integrated Enterprise PlanningPlanning
AACCTTIIOONN
AACCTTIIOONN
Week 1 Week 2 Week 3 Week 4
InnovationReview
InnovationReview
CustomerDemandReview
CustomerDemandReview
SupplyPlan
Review
SupplyPlan
Review
PriorityReview
PriorityReview
STAGE 1STAGE 1
STAGE 2STAGE 2
SeniorTeam
Review
SeniorTeam
Review
STAGE 5STAGE 5
STAGE 7STAGE 7
STAGE 4STAGE 4STAGE 3STAGE 3
SupportSupport
STAGE 6STAGE 6
Lean and Agile Integr 10 © The Delos Partnership 2004
Characteristics of IEPCharacteristics of IEP
• Formal set of meetings• Agendas “pre-set”• Linked series of meetings• Focus on right decisions being made at
right level• Preparation is key• Facts not opinions• Long-term and not short-term focus
Lean and Agile Integr 11 © The Delos Partnership 2004
Integrated Enterprise Integrated Enterprise PlanningPlanningSummary
– One set of numbers– Teamwork– Manages the constant change– Rolling Business Plan– Replaces Budget– Sound basis for decision making
Lean and Agile Integr 12 © The Delos Partnership 2004
Budgets – the issuesBudgets – the issues
• Annual budgets irrelevant in a fast changing world
• It is a game played by any number of players
• Budget is used as a “control mechanism” – but it does not work
Lean and Agile Integr 13 © The Delos Partnership 2004
Budget – the timetableBudget – the timetable
MarketingPlan
ManufacturingPlan
FinancialPlan
Corporate“Input”
SuperCorporateInput
Budget
July August September October November December
Lean and Agile Integr 14 © The Delos Partnership 2004
Where does Value get added ?Where does Value get added ?
Budget
July August September October November December
MarketingPlan
ManufacturingPlan
FinancialPlan
Corporate“Input”
SuperCorporateInput
Lean and Agile Integr 15 © The Delos Partnership 2004
SolutionSolution
Use a monthly Integrated Enterprise Planning process with 5 year horizon to manage strategic and operational planning, and get rid of [most of] the non value adding operations of the budgetary process.
Lean and Agile Integr 16 © The Delos Partnership 2004
Process Based Process Based OrganisationOrganisation
MD
SalesSales MarketingMarketing TechnicalTechnical OperationsOperations FinanceFinance HRHR
R& D
R& D
MKTG
MKTG
SALES
SALES
OPS
OPS
ACCTS
ACCTS
HR
HR
Directors
Managers
Supervisors/Team Leaders
Innovation Process Owner
Demand Process Owner
Supply Process Owner
Lean and Agile Integr 17 © The Delos Partnership 2004
All going in different All going in different directions ?directions ?
Design Operations Sales and Marketing
Lean and Agile Integr 18 © The Delos Partnership 2004
Harnessed in a common Harnessed in a common direction ?direction ?
CustomerCustomer
OperationsOperations
DesignDesign
Lean and Agile Integr 19 © The Delos Partnership 2004
Lean and agile EnterpriseLean and agile Enterprise
Requires Integration of
• Development
• Sales and Marketing
• Operations
• Finance
In pursuit of a common Lean and Agile Vision and Strategy