19. Ling Coldrick Partnership
OPTION 5
OPTION 4
OPTION 2
OPTION 1
OPTION 3
STRATEGY
GAP
OPTION 7
OPTION 8
OPTION 6
2 YEARS 5 YEARS0
LATEST VIEW
OPTION 9
What is the work of the Integrated Reconciliation team?
MANAGING
NEW
ACTIVITIES
MANAGING
SUPPLY
MANAGING
DEMAND
•Review global performance outlook and differences
between business strategy, budget and forecast.
Reconcile gaps between new activities, demand,
supply and financial targets
•Highlight impact of changes (units and financials),
gaps, opportunities and major integration issues
over a 2 Year-end horizon
•Develop scenarios considering the
interdependencies and trade-offs that drive overall
business performance.
•Redirect issues that should have been resolved
elsewhere, in line with organisational
accountabilities
•Make recommendations and/or decisions for
alternatives with business impacts for each
•Elevate to senior management major issues and
opportunities still requiring resolution.
MANAGEMENT
BUSINESS
REVIEW
Analysis/
Decisions
Required
Options/
Contingencies
Decision
Support
Interactive
Emerging
Issues
European Business Summary
Austria
Belgium
France
Germany
Greece
Holland
Ireland
Italy
Norway
Portugal
Spain
Switzerland
UKInventory KPIs 1-3 KPIs 4-6
Brand Y
Brand X
Major Assumptions (In ata)
Price rise q303 75% certain
Supply does not inclunewly
acquired plant Italy
Based on IRR total growth
of 8%…….
Major Changes thiiteration
Timing of price rise brought
forward by 3 weeks t Tesco
range review date
…….
Vulnerabilities and
Opportunities
Capacity constrained. If erises
by 12% stockouts occur qtr 3 03
Low stock position leads to
Emerging Issues and Gaps
Supply at near fullcapacity.
Overtime cannot uaranteat
Avezzano over Christmas
……
Decision Made in PreviousSteps
Low service rates will be erated
Reduce the bridge buying ading
price rise
……
Decisions Required – endations
& Costs
Phase marketing spend in 0bolster
demand through price rise.
Pull £1.5m in media from
qtr 4 03 to qtr 3 03
Brand Z
Europe - Total Business
68
980
378 370
653169
1084 1060
1796
1687
0
200
400
600
800
1000
1200
1400
1600
1800
2000
02Actual 03Current
View
03 LQR 03 Plan 04
Forecast
03 Plan
$ MM's Gross Margin
COGS
European Rolling Quarterly Summary
245
96
245 245
98
245
9589 89 89 96 96
473
468
425 430
270 274
256 255 256
274285 274
0
50
100
150
200
250
300
350
400
450
500
Current
View Q2
LGR Q2Plan Q2 Current
View Q3
LQR Q3Plan Q3 Current
View Q4
LQR Q4Plan Q4 Current
View Q1
LQR Q1Plan Q1
$ MM's Gross Margin
COGS
Euro Total
Performance
Monitoring
Financial
Impact &
Analysis
22. Ling Coldrick Partnership
Preparing information for the Management Business Review
Volumes, Financials and the Story in One Sheet or Screen
Ongoing Planning Assumptions
Major Assumption Changes In this Cycle
Emerging Issues
Decisions made in Previous steps
Risks and Opportunities
Decisions Required
23. 2/1/20
11 Pg 23
Product Family: WIGITS I &II
WW Canto - Demand (FY06)
0
10
20
30
40
50
60
70
80
90
100
FY05 Shipments 20 44 26 43 28 35 29 25 35 20 43 37
FY06 July Demand Plan 27 7 6 31 31 32 26 19 61 29 69 92
FY06 June Finl. Forecast 22 22 22 27 27 28 21 21 21 47 48 48
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
*Actual
FY05Shipments 385
FY06JulyDemandPlan 430
FY06JuneFinl.Forecast 354
WW Canto - Supply (FY06)
0
10
20
30
40
50
60
70
80
FGI Inventory 19 34 26 18 24 18 9 5 3 15 15 -9
FY05 Actual Build 35 55 31 21 26 34 30 34 33 26 31 43
FY06 August Supply Plan 28 22 2 19 39 25 17 15 63 41 69 68
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
*Actual
Major Assumptions (In Data)
1. Wigit II Launch schedule
US IVD Clearance –
estimated Sep 06
Japan Registration approved
to sell Canto II in August.
China and Taiwan
registration estimated by
end of FY07
2. Based on current inventory and
open purchase orders the
assumption is that the current
Wigit supply will satisfy current
demand of 48 units (Aug 06 to Aug
07). No additional demand can be
satisfied.
Major Changes this Cycle (In Data)
1. Last Month’s statement (Current
Wigit I Demand from July to August
07 is 45 units. No additional Wigit I
can be built based on material
availability.)
2. Europe increased Wigit II demand
by 16 units for the period of August
and September.
Risks and Opportunities (not in Data)
1. High volume for Wigit lines still
causing serious constraints in test.
2. Chassis availability for Wigit II is still
an issue. Supplier concern about
meeting current requirements for
September.
Decisions Made During this Cycle
1. Strategy about Wigit II Demo units is
that new builds will take priority
unless otherwise defined by US Sales
and Marketing leadership.
Decisions Required -
Recommendations & Costs
1. For the remaining Wigit II Demo units
we need to decide if additional material
be purchased for remanufacturing.
Emerging Issues and Gaps (in
Data)
1. Wigit II mix is still not stable
and could create supply issues.
2. Production still unable to meet
plan. Production resources will
be stretched in September.
FY05ActualBuild 399
FY06AugustSupplyPlan 408
FY06OpsBudgetPlan 450
WW Canto - Demand & Supply (2 year end)
0
20
40
60
80
100
120
140
160
180
200
FY06 June Demand Plan 40 94 106 190 112 110 111 114
FY06 July Supply Plan 52 83 95 178 143 112 112 114
FY06 Jun Fin FC/FY07 Fin Pln 66 82 63 143 82 91 100 105
FY06 Q1 FY06 Q2 FY06 Q3 FY06 Q4 FY07 Q1 FY07 Q2 FY07 Q3 FY07 Q4
FY06FY07
FY06JuneDemandPlan 430 447
FY06JulySupplyPlan 408 481
FY06JunFinFC/FY07FinPln 354 378
Canto A Regular,
185
Canto A RUO &
Refub, 34
Canto II Internal,
38
Canto II End
User (incl. Inv.),
173
FY06 WW Canto Demand Breakdown
Canto FY06
CA
2%
EU
45%
US
34%
AP
10%
JP
6%
NLA
1%
SLA
2%
FY06