Tag Archive: S&OP

People Remain “In”

By
No matter how many conversations go on about technology and the latest and greatest processes to drive results in manufacturing and distribution companies (including robots and automation taking over lower-skill positions), people remain “in”. Without exception, our best clients consider people their #1 asset. Who develops the programs for the robots? Who figures out how to utilize business analysis tools and predictive analysis/artificial intelligence concepts? And who implements best practice processes such as lean manufacturing, SIOP/S&OP and the like? People! There is zero doubt that the best people with mediocre machines, technologies and less-than-desirable systems will outperform mediocre people with…
View Article




Business Growth: ‘I’ve Run Out of Space’

By
One of those frequent and frustrating problems with growth can be space. Who has heard, “I’ve run out of space! What should we do?” Unfortunately it is not uncommon. The problem with this situation is that there are numerous causes and solutions – including this is exactly the problem I wanted to create. Recently I’ve been working with a few highly seasonal clients. Space can be a dilemma in planning how to navigate these seasonal patterns. Additionally, running out of space is always a concern for growing clients. So, what should we do? Make it a part of your planning process.…
View Article




The Value of Simplification

By
I just left an executive SIOP (sales, inventory & operations planning) meeting with a client. We are rejuvenating the process to gain alignment and to spur a rapid improvement in on-time delivery (which will be followed by a reduction in lead times). I’ve been working with quite a few of these types of projects lately, and they have reminded me of how easy it becomes to get caught up in non-essential detail. Since SIOP process relies on data, the natural tendency is to dig further into data and think up all sorts of interesting ways to look at information; however,…
View Article




Inventory Velocity

By
Inventory velocity not only accelerates cash flow but it also can contribute to margin improvement. How do we turn inventory faster and keep our money in motion vs. stagnating in the back of our warehouse? One of the best ways to keep your inventory moving is to put a SIOP (sometimes known as S&OP) process in place. The better picture you have of your demand plan, the better you’ll be able to align that with your master schedule, production plans, detailed schedules, purchase plans, capacity capability requirements, staffing and skill requirements, and sales plans. Aligning these people, processes and technologies…
View Article




SIOP Metrics: 5 Key Baseline Measurements

By
Which metrics are most crucial for SIOP (sometimes referred to as S&OP or sales and operations planning)?  The simple answer is that it is those metrics most vital to running your business. SIOP aligns not only demand with supply but it also aligns the various business units and functional areas on one plan.  Therefore, there are standard metrics which are key to SIOP including: 1. Sales revenues – certainly one of the key elements of SIOP is to forecast demand. 2. Inventory turns – how quickly you are turning your inventory will have a direct impact on cash flow 3.…
View Article




Systems Pragmatist: Connecting Processes, Systems, Company Objectives

By
When applying my Systems Pragmatist viewpoint to analyzing manufacturing processes and systems, I revisit the fundamentals as they are essential to delivering bottom line business results. Those clients who want to skip over the “hard work” of defining and improving processes and leveraging systems are destined to failure whereas those who take the time to ensure that these bedrock concepts are in place thrive. Undoubtedly, I find the key to success to be in connection points. Is your process documented? It’s amazing how often clients should start here.  By understanding your current process, opportunities for improvement jump out!  Do your processes…
View Article