I interviewed Glenn Rosenholmer who discussed How to Create Customer Integrated S&OP.
How can S&OP help reduce lead times?
Well, you seem to face an operation effort and being really into getting alignment between the functions. There will be enormous effect, and especially if everybody can assign both responsibility and accountability into getting one number that we will follow and agree on in the master plan as well as scheduling activities we’re going to do to attain what we have been discussing in the meeting we have with sales, production, distribution, agree to want them.
How can you improve delivery performance and reduce WIP?
The thing about improving delivery performance and we have to use working capital is always a struggle. I’ve been working with this in several cases where we find that the delivery performance is not always what should be the focus. You focus on work in progress, and that will give you a better delivery performance, because production, for instance, is not stuck with the wrong product produced in the wrong time. So the answer in that question is to actually work really, really hard to have only orders that is produced to customers, and not speculate and going ahead to produce before you have actually an order.
Where have you seen success?
The success we have seen is that a lot of company is not putting enough effort into the meeting. They are not prepared and they are not working and seeing this as a key issue, the key to success. They have different agendas, but they’re still coming to the series and operation plan meeting. Where we’ve been seeing success is that everybody’s prepared, they’ve been questioned numbers, when to produce what, that finally they can get all the questions marked out and that’s again to make sure the silos, or if you like to call it functions, understand that the need to do the best for the flow, not for the function.
What are your recommendations for getting started?
Recommendations for getting started is one really, really important question, because we all know a good start is giving us the right path down the road normally. And one mindset that we always talk about when we started an initiative, that is to make sure that everybody understands that we are now going to transparency. Transparency, forget your function, and make sure we everybody takes off the different hats. Take off your sales hat, take off your production hat, take off your distribution hat, and make sure as a team to get that master plan that we agree on, and start working on one plan and align to it, rely to it, and make sure that when you leave the room, if it’s a room, everybody agreed and have a handshake and not a false handshake but a true handshake for what’s going to be happening up to the next phase in operation planning.
Well, thank you Glenn for sharing your views today on How to Create Customer Integrated S&OP.
Well, thanks, Dustin. I enjoyed to be on again. And we have a very important seminar coming up where we can have both people coming to listen and are new to series and operation planning, but I’m sure when it happens out of December here in Stockholm there will also be people that is interested that have been failing, but they can learn from where a client talks is presenting all the good success they have had to actually go from twelve weeks to two, three weeks in lead time, which is enormous in potential and improvement. So thank you very much. Take care now, Dustin.
Phone Number: 866-221-38431
About Glenn Rosenholmer
Partner at MYSIGMA