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Davol
DSIOP
Process
Review
Abigail
Marchell
Supply
Chain
Intern
Responsive
Efficient
Flexible
Service

2. About
Me
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• From
Hampton
Falls,
NH
• Penn
State
University
Class
of
2017
• Major:
Supply
Chain
Management
• Minor:
InternaNonal
Studies
• Davol
Supply
Chain
Internship
June
13,
2016
–
August
12,
2016

3. Project
Objec>ves
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• Gain
comprehensive
understanding
of
the
S&OP
process
with
specific
focus
of
the
DSIOP
process
at
Davol
• Review
&
evaluate
the
process
in
effort
to
highlight
where
there
is
room
for
improvements
• Present
possible
improvement
iniNaNves

4. Why
is
the
DSIOP
process
important?
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Benefits:
• Reduced
customer
lead
Nmes
&
Higher
customer
service
• Lower
operaNng
costs
• Lower
finished
good
inventories
• More
stabilized
producNon
rates
• Improved
new
product
launch
• Top-­‐line
growth,
etc…
v SIOP
is
a
formal
management
process
that
creates
a
unified
business
plan,
collaboraNon
&
consensus
among
an
organizaNonal
cross-­‐funcNonal
team
results
in
an
integrated
set
of
plans
that
all
stake
holders
understand
and
are
commi^ed
to
support
h^ps://demandcaster.zendesk.com/hc/en-­‐us/arNcles/207561306-­‐IntroducNon-­‐to-­‐
Sales-­‐OperaNons-­‐Planning-­‐S-­‐OP-­‐

5. S&OP
vs.
Davol
SIOP
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S&OP
Process
Map:
Davol
SIOP
Process
Map:
Project
Focus
on
DSIOP

6. Prepara>on
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• Read
Sales
&
Opera+ons
Planning:
The
How-­‐To
Handbook,
2nd
Edi+on,
by
Wallace
&
Stahl
• Completed
Accenture
Academy
courses
related
to
S&OP
topics
• Researched
and
gathered
addiNonal
reference
material
from
creditable
arNcles
and
case
studies
• Observed
DSIOP
process
at
Davol
• A^ended
DSIOP
&
SSIOP
meeNngs
• Held
1-­‐on-­‐1
interviews
with
cross-­‐funcNonal
peers
within
Finance,
MarkeNng,
&
Supply
Chain

7. Data
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Survey:
• 40
quesNon
online
survey
• Open-­‐ended
&
number
ranking
quesNons
(1-­‐4)
• QuesNons
derived
from
The
How-­‐To
Handbook
• Sent
out
to
22
recipients
within
Finance,
MarkeNng,
and
Supply
Chain
Name
Role
1
Mehdi
Syed
Finance
2
Margaret
Paolo
Finance
3
Sco^
Pisarczyk
MarkeNng
4
JusNne
Advani
MarkeNng
5
Bethanie
Benoit
MarkeNng
6
Melissa
Bowley
MarkeNng
7
Brian
Leach
MarkeNng
8
ChrisNna
LiVecchi
MarkeNng
9
April
Megow
MarkeNng
10
JusNn
Pessa
MarkeNng
11
Tara
Smith
MarkeNng
12
Amy
Spinney
MarkeNng
13
Beth
Stewart
MarkeNng
14
Kendra
Winchester
MarkeNng
15
John
Mazzola
OperaNons
16
Andries
Elburg
Supply
Chain
17
Shubhonil
Banerjee
Supply
Chain
18
Jennifer
Darmanin
Supply
Chain
19
Larry
Dionne
Supply
Chain
20
Charles
Shores
Supply
Chain
21
ChrisNne
Zina
Supply
Chain
22
Tony
Balliro
Supply
Chain
Davol
DSIOP
Survey
Recipients

8. Data
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Interviews:
• 1-­‐on-­‐1
meeNngs
to
gather
addiNonal
feedback
• Go
into
more
depth
of
DSIOP
process
and
where
there
is
room
for
improvement
• Used
survey
quesNons
to
facilitate
conversaNon/discussion
Interviewees:
• Sco^
Pisarczyk
–
VP
MarkeNng
• Bethanie
Benoit
–
MarkeNng
Director
• Kendra
Winchester
–
MarkeNng
Director
• Margaret
Paolo
–
AccounNng
Director
• Mehdi
Syed
–
VP
Finance
• Charles
Shores
–
Supply
Chain
Product
Manager
• Andries
Elburg
–
Supply
Chain
Planning
Analyst
• Tony
Balliro
–
Supply
Chain
Senior
Director

9. Results
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Survey:
• 12
responses
of
22
(55%
parNcipaNon
rate)
• Each
department
represented
(Finance,
MarkeNng,
&
Supply
Chain)
• Calculated
average
ranking
for
each
quesNon
&
highlighted
top
scored
and
bo^om
scored
quesNons
• No
glaring
outliers
where
process
is
seriously
lagging

10. Highest
Scored
Survey
Ques>ons
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• 3.67:
ForecasNng
occurs
on
a
monthly
cycle,
or
possibly
more
frequently
where
appropriate
• 3.50:
The
sum
of
the
detailed
forecast
equals
the
aggregated
forecast
• 3.50:
MeeNng
dates
are
scheduled
well
into
the
future
to
maximize
a^endance
• 3.25:
Sales
forecasNng
is
being
done
in
both
units
and
dollars
• 3.08:
Forecast
error
is
rouNnely
measured
and
efforts
are
made
to
reduce
it
• 3.08:
Teamwork
and
good
communicaNon
processes
are
widely
recognized
as
the
key
to
be^er
forecasts

11. Lowest
Scored
Survey
Ques>ons
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• 2.08:
MeeNngs
are
excepNon-­‐based
and
only
focus
on
the
issues
that
require
re-­‐evaluaNon
• 2.09:
There
is
a
formal
summarizaNon
of
informaNon
and
issues
that
gets
elevated
in
an
ExecuNve
SIOP
Review
on
a
monthly
basis.
• 2.20:
The
DSIOP
team
decides
what
recommendaNons
to
make
for
an
execuNve
review
• 2.25:
Members
of
the
Finance
funcNon
play
an
important
role
in
the
SIOP
Process
to
ensure
that
the
plans
have
financial
validity
• 2.36:
When
performance
is
outside
the
agreed
upon
tolerances,
then
invesNgaNon
and
correcNve
acNon
is
iniNated
• 2.50:
The
forecasNng
cycle
includes
a
formal
step
to
relate
the
newly
developed
forecast
to
the
economy,
the
industry,
and
share
expectaNons
• 2.50:
Efforts
are
made
to
discover
the
root
causes
of
bias
and
to
eliminate
them

12. Interview
Results/Feedback
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Areas
for
improvement:
• Need
for
improved
forecasNng
tools
and
updated
technologies
• Need
for
standardized
training
and
introducNon
to
SIOP
process
for
new
employees
• Change
culture
from
a
“sharing
numbers
exercises”
to
excepNon
based
discussions
• Need
for
be^er
cross-­‐funcNonal
understanding
of
SSIOP
process
and
communicaNon
of
necessary
supply
&
inventory
reports
• Need
for
implementaNon
of
formal
ExecuNve
SIOP
to
follow
DSIOP
&
SSIOP
in
the
monthly
process
Working
well:
• Confident
with
cross-­‐funcNonal
communicaNon
&
collaboraNon
• ForecasNng
is
being
shown
is
both
units
and
dollars
• Monthly
meeNngs
are
scheduled
well
in
advance
• DSIOP
deck
along
with
agenda
is
sent
out
prior
to
meeNng
• Sales
forecast
is
being
compared
to
divisional
BVR
commitment
to
ensure
alignment
• Data
package
allows
for
disaggregaNon
for
addiNonal
analysis

13. DSIOP
Process
Maturity
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Sales
and
Opera+ons
Planning:
Design
and
Implementa+on
of
S&OP
process
in
a
mul+na+onal
company,
Gonçalo
Maria,
Eva
Ferreira,
Neves
Lima
*The
Process
Maturity
Model
asses
the
current
S&OP
status
of
a
company
and
idenNfies
the
steps
the
company
needs
to
take
to
achieve
the
opNmum
level
of
S&OP
Yellow
highlighted
area
represents
evalua>on
of
Davol’s
DSIOP
process
maturity

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Process
Improvement
Ideas
&
Recommenda>ons

15. Improvement
Ini>a>ve
#1
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v Alignment
of
educaNon
&
understanding
of
the
end-­‐to-­‐end
SIOP
process
• Building
a
strong
foundaNon
for
a
successful
process
• AcNon
List:
• Lunch
and
learn
sessions
• DSIOP
process
purpose
page
in
DSIOP
monthly
deck
• Standardized
educaNon
of
new
hires
involved
in
process

16. Improvement
Ini>a>ve
#2
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v Focus
on
the
objecNve
of
excepNon-­‐based
DSIOP
discussion
meeNngs
• Change
culture
of
“show-­‐and-­‐tell”
to
decision-­‐
making
sessions
• AcNon
List:
• DSIOP
process
purpose
page
in
DSIOP
monthly
deck
• Upper
management
funcNonal
support
in
DSIOP
meeNngs
• Don’t
stop
at
the
“what”,
always
ask
&
explain
the“why”

17. Example
of
DSIOP
Process
Purpose
Page
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*Example
taken
from
BPV
DSIOP
deck

18. Addi>onal
Improvement
Ini>a>ves
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AcNon
List:
• Set
threshold
level
when
measuring
forecast
error
and
forecast
bias
• If
bias
exceeds
a
designated
threshold
a
“red
flag”
is
raised
and
forecasters
then
reexamine
the
data
• Improve
formal
step
to
relate
the
newly
developed
forecast
to
the
economy,
the
industry,
and
share
expectaNons
by
incorporaNng
econometrics
forecasNng
&
IMA
data
• Update/improve
technologies
and
forecasNng
tools
• Standardize
data
&
reports
used
to
drive
forecasNng
• Incorporate
WMAPE
&
forecast
value-­‐add

19. Benefits
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v These
process
improvement
iniNaNves
can
lead
to
a
more
efficient
&
effecNve
SIOP
Process
that
will
ulNmately
have
a
posiNve
impact
on
the
businesses
key
performance
metrics:
• Reduced
customer
lead
Nmes
&
Higher
customer
service
• Lower
operaNng
costs
• Lower
finished
good
inventories
• More
stabilized
producNon
rates
• Improved
new
product
launch
• Top-­‐line
growth,
etc…

20. In
Summary…
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v ConNnuous
educaNon
&
learning
sessions
on
SIOP
(purpose,
scope,
and
expected
outcomes)
v Change
“
show-­‐and-­‐tell”
numbers
exercise
to
excepNon-­‐based
reviews
&
discussions
v Establish
senior
level
management
support
&
involvement
v Improve
forecasNng
tools
and
performance
measurements
(incorporate
thresholds,
econometrics
forecasNng,
IMS
data,
FVA,
&
WMAPE)
v ConNnue
working
towards
implementaNon
of
a
formal
ExecuNve
SIOP

21. Work
Cited
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21
Gonçalo Maria, Eva Ferreira, Neves Lima. Sales and Operations Planning: Design and
Implementation of S&OP Process in a Multinational Company. N.p.: n.p., 2013. Web. 20 July
2016. <file:///C:/Users/amarchell/Downloads/Sales%20and%20Operations%20Planning-
%20Design%20and%20Implementation%20of%20S%20&%20Op%20(2).pdf>.
"Introduction to Sales & Operations Planning (S&OP)." DemandCaster Support. Cadent
Resources, Inc., 2016. Web. 24 July 2016. <https://demandcaster.zendesk.com/hc/en-us/articles/
207561306-Introduction-to-Sales-Operations-Planning-S-OP->.
Wallace, Thomas F., and Robert A. Stahl. Sales & Operations Planning. 3rd ed. N.p.: T.F. Wallace,
2014. Print.