Steelwedge Agility Webinar Series Featuring Tom Wallace, S&OP Author and Educator, and Nari Viswanathan, Steelwedge Good news/bad news in Sales & Operations this year: S&OP has become a top priority for most manufacturing companies; however, too many businesses are still floundering on how to make S&OP work. While collaboration is at the heart of effective S&OP, creating more meetings is not the solution. Nor is a rigid pursuit of “the perfect forecast,” or an attempt to ensure control over the supply chain. Today, the best business plans are the most agile ones, able to adapt to the marketplace. Therefore, the best S&OP leaders also need to be more agile in how they approach their company’s consensus planning. So, as you take stock of your business planning priorities for 2013, it’s a good time to also ensure your leadership skills are updated, strong and flexible enough to drive growth in whatever environment the New Year serves up. In this one hour interactive webinar, acclaimed industry counselor, Tom Wallace, will share his perspective on a checklist of skills the most successful S&OP leaders will need in 2013 to get and keep better agility in their businesses, including: • Align the company’s people so that they moving together and in the right direction • Look out into the future for 6 to 12 to 18 months with confidence • Remember that S&OP is not just about solving problems; it’s also about identifying opportunities

1. Enhancing Leadership Skills
for Increased Agility
A Webinar
by
Tom Wallace
sponsored by
Steelwedge Software
November 2012
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

2. The Four Fundamentals
How Much?
Rates
X
Sales & The Big Picture
Operations
Volume Product Families
Planning Strategy/Policy/Risk
Monthly/18 months+
Top Management
Demand Supply
Which Ones?
Timing/Sequence
The Details
Products, SKUs, Orders
Mix Tactics/Execution
Wkly/Daily, 2 days – 6 mos
Middle Management
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

3. Sales & Operations Planning
?????
Executive S&OP
Volume
Demand Planning/ Demand Supply Supply (Capacity)
Forecasting Planning
Mix
Master Scheduling
Supplier and Plant Scheduling
Distribution Scheduling
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

4. Your Company’s Progress
with S&OP in 2012?
• A Lot
• A Little
• None At All
• We Lost Ground
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

5. A Challenge for 2013
• The 21st Century Supply Chain: FRAGILE
• The Mission for 2013: Convert FRAGILE to
AGILE
• Some thoughts on how S&OP can help
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

6. Principles of Executive S&OP
by Tom Wallace and Bob Stahl
• Ten Principles of Executive S&OP
– How Get? Go to the web site shown below
– Cost? Zero, Zilch, Nada
• Foundation for the Effectiveness Checklist
– 33 questions on how you’re doing with S&OP
– How Get? Same as above
– Cost? Same as above
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

7. Focus on the 10 Principles
The Executive S&OP planning cycle is monthly,
with provisions for mid-period revisions when
major changes occur.
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

8. The “Mini-S&OP Cycle”
• Supply Crash
• Demand Spike
• Demand Crash
• Supply Spike
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

9. The Mini-S&OP Cycle
• Focus on affected parts of the business
• Solve the problem at the earliest step possible:
Step 5
Exec
Meeting
Step 4
Pre-
Meeting
Step 3
Supply
Planning
Step 2
Demand
Planning
• Use the same people, report formats, and processes as
in the regular monthly cycle
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

10. Focus on the 10 Principles
The volume plans authorized in Executive S&OP
direct the plans and schedules for
mix.
Therefore, tight alignment between volume plans
and mix plans is essential . . .
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

11. One Set of Numbers - Internally
Q - What’s wrong with multiple sets of #s?
A – Multiple sets of #s are “anti-agile”
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

12. Focus on the 10 Principles
Executive S&OP is cross-functional and
collaborative.
It involves, at a minimum, Sales/Marketing,
Operations/Supply Chain, Product Development,
Finance, and Executive Management.
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

13. Energy Alignment
S&OP: Weak or Non-Existent
Accomplishment
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

14. Become An S&OP Expert
• Read The Literature
• Go To S&OP Conferences
• Speak At S&OP Conferences
• Get Certified in S&OP
• Teach S&OP to Others in the Company
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

15. From 5,000 Feet
Sales/Marketing Finance
(Units/$$$ by Family) (Dollars)
GENERAL MANAGER CENTRIPETAL
(President, COO, CEO, MD) SHARED VIEW
TEAMWORK
Operations Product Development
(Units/Hours/Material) (New Product Issues)
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

16. Energy Alignment
S&OP: Weak or Non-Existent S&OP: Operating Well
Accomplishment Accomplishment
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

17. Executive S&OP and Risk
• Supply Chain disruptions: (supply crash,
demand spike, demand crash, supply spike)
• Potential
• Actual
Executive S&OP can help with:
• Anticipating potential disruptions
• Recovering from actual disruptions
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

18. Executive S&OP’s Role in
Anticipation
• Initially set hedges:
- safety stock
- safety time
- location
- consignment
- finished products
- components/raw materials
• Review and revise hedges during the
Executive S&OP cycle
• Permanent agenda item – Pre-Meeting
and Exec Meeting
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

19. Executive S&OP’s Role in
Recovery
• Minor Disruption: probably no role
• Moderate to Major Disruption:
The “Mini-S&OP Cycle”
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

20. Recap
Doing the things that we covered here will
help you convert your supply chain from:
WHAT? TO WHAT?
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

21. Time To Get Started?
Here’s what we’ve covered here:
- the Ten Principles
- the Effectiveness Checklist
- one set of numbers - internally
- develop a core of S&OP experts
- use S&OP to avoid and mitigate risk
Doing these things will help you convert:
FRAGILE TO AGILE
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

22. S&OP Certification
• Gain increased knowledge of S&OP via the
study materials
• Validate that knowledge by passing the exam
• Be designated “CS&OP”
• Exams are available around the world, at your
location and your convenience
• More info: www.Sopinstitute.Com
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM

23. Thanks for Listening!
Go to www.sopinstitute for info about
S&OP Certification
Go to www.tfwallace.com for:
• S&OP 101 (free)
• Implementation Information (free)
• The S&OP Forum
 Periodic newsletters (free)
 White papers (free)
 S&OP Effectiveness Checklist (free)
• Books and videos ($$$)
E-mail: tom@tfwallace.com To talk: 513-281-0500
EXECUTIVE S&OP by Tom Wallace WWW.TFWALLACE.COM