Oracle & USJade Power Breakfast Presentations: Sales & Operations Planning

<Insert Picture Here>
Oracle Executive Power Breakfast: Next
Generation Sales & Operations Planning
November 18, 2010

The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any
features or functionality described for Oracle’s
products remains at the sole discretion of Oracle.
Safe Harbor Statement

Agenda
8:00- 8:10 Kickoff/Welcome Layne Devereaux
8:10-8:40 Next Generation S&OP - Customer Case Studies
Gerald O'Sullivan
8:40-9:10 Oracle S&OP Supply Side Customer Case Study
Steve Zadig
9:10-9:50 S&OP Best Practices Mel Nelson
9:50-10:00 Summary/Q&A Facilitation Rosan Primeau, USJade

Oracle’s Next Generation S&OP
Customer Case Studies
• Business Case for Next Generation S&OP
• Oracle Solution Overview
• Customers Achieving Next Generation S&OP
• Summary

Challenges
Demand uncertainty and
volatility
Lack of responsiveness and
inflexibility in supply network
Misalignment of financial and
operational plans in continuously
changing business conditions
Strategies
Lack of proactive insight into
the impact of your decisions
• Sense demand in real-time and
shape for revenue growth
• Improve agility and react quickly to
supply chain events
• Profitably align demand and
supply to corporate goals
• Continuously monitor enterprise
and supply chain performance
Managing the New Normal

Demand Signal
Management
Demand
Management
Collaboration
and
Vendor
Managed
Inventory
Plant
Scheduling and
Monitoring
Order
Promising
Service
Parts
Planning
Trade Promotion
Management
Supply and
Distribution
Planning
Risk
Management
Sales and
Operations
Planning
Performance
Management
Single source of truth
Value Chain Planning excels in Semiconductor
Industry Challenges
• Demand volatility
• Difficult coordination of supply chain execution
• Latency and variability in decision making
• High risk of product obsolescence
VCP Benefits
• Comprehensive integrated planning suite enables
timely, consistent, fact based decision making
• Demantra provides best in class forecast accuracy
to reduce impact of demand volatility
• Rapid “What-If” scenario planning enables well
coordinated response to supply chain events
• Maximize profitability with integrated, collaborative
Sales and Operations Planning
• Reduce “perceived” lead time while minimizing
product obsolescence with Inventory Optimization
• Advanced Planning Command Center provides
ability to balance short term requirements with
long term business objectives
• Reduce time and increase consistency of NPI
“ramp to volume” to deliver in the “sweet spot” of
market window for maximum profitability
• Relentless pressure on margins, customers
expect more powerful products at lower costs
Rapid
Planning

FACTORS ENABLING ATTAINMENT OF PRIMARY BUSINESS
GOALS
Which of the following are you looking to accomplish as a result of your
S&OP? Percentage of Survey Respondents
Companies are Turning to S&OP to Reduce Costs
while Maintaining/Improving Customer Service
• Overall the recession has
prompted 63% of
companies to consider
changes to their supply
chain networks
• Greatest focus of S&OP on
cost and inventory
management, and on
improved customer service
levels
• Overall, 60% of companies
view S&OP as more
important this year than last
(vs. 3% claiming it’s less
important)
52%
50%
49%
46%
43%
41%
39%
36%
35%
35%
30%
29%
22%
19%
35%
Improve inventory optimization
Cut costs without reducing customer service
Improve forecast accuracy
Gain better balance of supply and demand
Improve customer service
Increase profits
Ability to make more changes/Be more flexible
Reduce lost sales opportunities
Minimize out-of-stock situations
Minimize risks
Provide real-time visibilty into the supply chain
Improve ROI on assets
Improve customer retention
Produce/Introduce new products
Greater network optimization
Source: “Recession Survival Kit; cross-industry survey conducted for Supply Chain Management Review, on behalf of Oracle and IBM, by Reed Business Information;
February, 2009. Response to question: “Which factors will enable your organization to achieve your primary business goal?” n = 430 responses.

Best Practices S&OP
• Often owned by supply chain group
with limited involvement by others
• Focused on balancing supply and
demand
• Too much focus on explaining the
past
• Standalone process not easily
integrated with operational planning
and execution
S&OP as Typically Implemented
• Owned and driven by executives, and
a cross-functional and highly
interactive and iterative process
• Focused on meeting overall operating
goals including financial goals, such
as revenues, costs, and profits
• Forward looking based on predictive
analytics
• Monitoring of operating performance
linked with planning processes
allowing companies to drive decisions
into operations
Best Practices S&OP
© 2010 Oracle Corporation – Proprietary and Confidential

Integrated Business Planning (IBP)
Typically, planning is done at department level. Often depends on emails/spreadsheets to bridge siloed planning systems.
Finance sets revenue / profit goals without validation from Mfg (i.e., resources, capacity to meet goals.)
Mfg balances demand / supply with little visibility to whether resulting “plan” will be meet budgets on which the company’s revenue
and profit goals are based.
Sales commits to meet revenue goals without complete understanding of what Mfg can deliver.
DISCONNECTS / GAPS ACROSS DEPARTMENTS AND
ENTERPRISE
KEY CHALLENGES
Oracle IBP bridges gaps by integrating financial planning with operations planning
Revenue goals and budgets validated against a bottom-up operating plan thro’ S&OP. The operating plan is
reconciled against financial goals from Hyperion Planning.
Detailed changes to the plan can be immediately see the big picture impact of the changes. Significant differences
between the current plan and goals can be escalated to Executive Team for resolution.
Addresses one the CFO’s big concerns—the reliability of the revenue forecast. In Oracle S&OP, plans are updated
daily or weekly from a precise forecast based on current market conditions. This updated plan is published to
Hyperion Planning so that financial analysts are working with data that best represents what is going to happen – not
what they projected would happen based on last quarter’s data.
The whole company is operating to one, current and accurate plan. Company executives have the critical
information they need to make the right business decisions.
The “reconciliation process that closes the gap between
[business] strategy and operations.” (Gartner)

Oracle Addresses the Entire S&OP Process
Most S&OP
software
applications are
limited to
enabling high
level S&OP
process
Only Oracle links
monitoring with
supporting planning
applications to drive
decisions into
operations
S&OP detailed
analysis and
simulation
Product
Planning
Supply Planning
and Simulation
Financial
Planning
Demand
Management
Supporting planning processes
Executive
Review
Demand
Review
Supply
Review
Financial
Review

Oracle’s Complete S&OP Solution
• Interactively engage management
• Move from a periodic reactive to a real
time, iterative and proactive process
– Reduce cycle time and improve alignment by automating
the consensus process
– Profitably balance supply, demand, and budgets
• Drive decisions into operational planning
and execution, and monitor performance
• Start quickly with best practice templates
and easily adapt to your business – evolve
at your own pace
Start anywhere, progress at your own pace
Finance
(Hyperion)
Supply
(ASCP, RP, SNO,
IO)
Product
(Agile)*
Demand
(DM)
Executive S&OP Dashboards
Detailed planner workbenches
Real-Time S&OP
* Integration planned for future
S&OP
Demand
Supply
Trade
Finance
Design
Risk

Dashboards Offer Visibility Across S&OP
Process

Pre-Configured Views Accelerate Time to Value
More than 300 KPIs to Choose From
• Executive Summary
• Top Difference –
Operating Plan and
Budget by Category
• Consensus Change by
Customer
• Consolidated Analysis
• Profit and Loss Statement
• Constrained Forecast
Comparison
• Budget Analysis
• KPI reports: Forecast
Accuracy; Customer
Service; Inventory and
Production
Executive Review Tab
• Demand Summary
• Top Absolute Difference –
Consensus and Budget by
Category
• Consensus Change by
Customer and Category
• Forecast Comparison
• Forecast Accuracy
(MAPE)
• Projected Backlog
• Consensus Tracking
• Forecast Scenario
Comparison
Demand Review Tab
• Supply Summary
• Bottom Demand Fill % by
Customer
• Supply Change by
Category
• Consolidated Analysis
• Demand Fill
• Production Plan
• Production Plan by
Organization
• Top Resource Utilization
by Organization
• Top Resource Utilization
• Top Supplier Item
Utilization
• Consolidated – Scenario
Comparison
Supply Review Tab
• Financial Summary
• Operating Plan and
Financial Forecast
Comparison
• Top % Difference -
Operating Plan and
Budget by Category
• Margin Difference by
Category
• Year-over-Year Financials
• Financial Forecast and
Budget Comparison
• Revenue / Cost / Margin
by Category /
Organization / Zone /
Customer
Financial Review Tab
Note: Above highlights just a sample of the available pre-configured views in each tab

Drive Decisions into Operational Planning
Executive S&OP Dashboards • Enable key managers to
continuously monitor S&OP
performance
• Evaluate alternative business
scenarios
• Power users can leverage
direct links to RTS&OP to
perform detailed analysis
and simulation
• Approve and drive into
execution with direct linkage
into tactical and operational
planning processes
• Supported by best in class
product to sense and shape
demand, and perform supply
simulation
Demand Supply Finance
Business
scenarios
Assigned
activities
Planners execute assigned activities
Suggested
alternatives
for
evaluation

Solution Spans Strategic, Tactical, and Operational
Issues
Operational
Events
Tactical
Decisions
Strategic
Decisions
• Track orders
• Track shipments
• Alert issues
• Balance capacity
• Rebalance
inventory
• Allocate products
• Shape demand
• Service levels
• Inventory policy
• Carrier contracts
• Product mix
• Supply network
sourcing
Continuous S&OP Process Execution

Connect Finance and Operations
Challenge: misalignment between financial and operational plans
Financial Planning
– Financial plans do not reflect
operational realities
– Revenue forecast is unreliable as it
not adjusted to reflect operating
forecast
– Strategic financial plans lack
bottom up validation
– Financial planning uses discrete
periods and looks backwards
– Operating plan not directly aligned to
financial targets
– Impact of demand and supply changes
not visible to finance
– Operating plan has little top-down
validation and decisions made without
considering financial impact
– Operating plan is continuous and
forward looking

Integrated Business Planning
* Coming in Demantra 7.3
Leverage AIA-based integration to Hyperion Planning* for financial reconciliation
Revenue less than
expected
Publish Financial
Plan to Demantra Assess supply
constraints
Publish consensus
revenue, promotion
expenses and COGS
to Hyperion
Simulate adjusted or
new promotion to
Increase revenue

Why Oracle Integrated Business Planning
Replace manual, intermittent, and disconnected process with a continuous,
interactive, holistic Integrated Business Planning process
Validate revenue goals and budgets against a bottom-up operating plan thro’ S&OP
Reconcile the Operating Plan with financial goals
Inject operational reality into Financial Plans
Eliminate CFO’s big concern — deliver a reliable forecast
Ensure financial viewpoint is embedded in the Operational Planning process
Quickly examine alternative scenarios and evaluate financial impact of decisions
Deliver executives the 360-degree visibility to make the right business decisions
Operate the whole company based on one, current and accurate plan

CUSTOMER PERSPECTIVE
We wanted to choose a player that would be in the game
for the long haul, so we looked at Oracle's investment in the
outsourcing model and its expertise in technology. Simply
put, Oracle provides us with the best technology available.”
- Tim Roessler ,CIO
User adoption happened very quickly, almost automatically,
we were surprised how easily it went with no complaints
from the field.
- James Dillon, Director Global Sales Operations and
Customer Service
COMPANY OVERVIEW
• Develop, manufacture and market high performance Chemical
Mechanical Planarization (CMP) polishing slurries for advanced
semiconductor devices
• #1 Supplier of CMP Slurries — Cabot Microelectronics believes it has
approximately three times the annual revenue of the next largest CMP
slurry competitor
• Industry: Chemicals
• Employees: 1000
• Revenue: US$500M
CHALLENGES/OPPORTUNITIES
• AsiaPac customers increased to 71% in 2007 from 53% in 2002
• 70% market share through technology leadership
• CMP is an enabling technology
• One of the fastest growing sectors in the semiconductor industry
• Track record of profitable growth, despite semiconductor cycle
• Pursuing multiple new market and product opportunities - acquisitions
SOLUTIONS
• Demantra DM and RTSOP
• Advanced Supply Chain Planning/CBO
• Inventory Optimization
• Global Order Promising
• Hyperion Planning
• All deployed OnDemand
• OPM backbone
RESULTS
• Reduced Monthly forecasting cycle 48% from 21 to 11
days
• Reduced Forecast error (MAPE) from 50% to 20%
and falling
• Full enterprise planning solution with Hyperion
integration
• Enabled live on-line consensus ability
• Saved $2-$4 million in hardware and facility expenses
(on demand)
• Saved $1 million in compensation costs (on demand)
• Improved employee morale
Cabot Microelectronics Integrates
Value Chain Planning with Hyperion

What Semiconductor Customers are Achieving with Oracle’s
Value Chain Planning Solutions…
Increased on-time delivery to 90% and improved manufacturing planning
by 50%
reduced inventory levels 40% & time-to-market 30%
increased supply chain response time by 92%
reduced raw material inventory by 17% and improved efficiency per
buyer by 25%
Improved the order-promising automation by 600% and increased the
On-time-Delivery to 98%

• Demand Management
• Sales & Operations Planning
Customer Fulfillment – Recent Wins
• Warehouse Management
• Transportation Management
• Supply Chain Planning
Internal Only

Emerson Real-Time Sales & Operations Planning
SOLUTIONS
• AF&DM
• RT S&OP
• ASCP/CBO
• IO
• GOP
• Hyperion
COMPANY OVERVIEW
• Emerson is a diversified global manufacturing & technology
company offering a wide range of products & services in the
areas of process management, climate technologies,
network power, storage solutions, professional tools,
appliance solutions, motor technologies, industrial
automation.
• Revenue: $24.8B
• 140,000 Employees
• 265 Manufacturing Sites
• Decentralized and non-formal S&OP Processes
• Manual & inconsistent forecasting process across sites.
• Difficulty measuring forecast accuracy :SKU & Piece Part
• Forecasting performed qualitatively, without a solid
statistical basis for decisions.
• Multiple Master Schedulers for the same product group;
difficult to get global roll up view
• Communication of forecast decisions within and across
sites was sporadic and typically not timely
• Each site is on a different legacy system
• Lack of Forecast ownership: Marketing & Sales provide
dollarized annual amount as forecast
• Lack of Global Visibility
• No Bottoms up fcstng & reconciliation to upper levels
RESULTS
• Single Global Master Scheduler per
Product Line
• Centralized Planning Process for
Collaboration and Consensus.
• Demand Capture at Model and
Options level for Independent and
Dependent Demands
• Integrated Planning Process for the
entire ‘Model Option Tree’
• Enhanced Service Levels, Superior
Forecast Accuracy
• 43% reduction in Inventory
Month 2008

VTech Builds a Consumer Driven Supply Chain with
Oracle
CUSTOMER PERSPECTIVE
Demantra's solution allows us to collaborate with our
customers in a single, consistent planning environment
where changes in forecasts dynamically update
replenishment and shipment plans. This next generation
CPFR solution allows VTech to maintain its lead in the
consumer electronics business by delivering the highest
possible service levels, while reducing current inventory
levels.
- Nick Delany, Senior Vice President
VTech Telecommunication Products Business
COMPANY OVERVIEW
VTech is one of the world’s largest suppliers of corded
and cordless phones and a leading supplier of
electronic learning products. Founded in 1976, VTech
manufacturers innovative, high quality consumer
electronics products, and distributes them to markets
worldwide in the most efficient manner.
RESULTS
• Increased order fill rate from 55% to over 95%
• Increased inventory turns from 3x to 6x per year
• Reduced logistics costs by 65%
• Reduced retail compliance fines by 85%
• Reduced price protection claims by 40%
• Rapid time-to-benefit with implementation in 90 days
• Legacy systems a hodge-podge of incompatible
hardware and software
• Inefficient planning and execution leading to rising
costs
• Excess inventory; poor response to market
requirements
SOLUTIONS
• Real-time Sales and Operations Planning

“To advance our successful business process transformation, we
leveraged best-in-class technology from Oracle, as well as industry
best practice expertise from Oliver Wight. Together, Oracle and
Oliver Wight have enabled us to transform our planning systems to
next-generation sales and operations planning that support
significantly improved decision making.”
Randall Wood
Vice President, Leggett & Platt
Oracle and Oliver Wight Work Together
for Success at Leggett & Platt

Achieving Next Generation S&OP is a Journey
Oliver Wight S&OP Maturity Model
Mature Integrated Business Planning
• Drives responsive optimization of the business in pursuit of business strategy
• Continuous Reconciliation, managing gaps and alternative scenario planning
Integrated Business Planning
• Rolling business management process including gap analysis versus strategy and focus on
competitive priorities
• Integrated Reconciliation is the driver: business analysis provides underlying understanding, drives
improvement priorities and gap closing actions
• Process frequently reshapes to meet changing organizational structure
• Used to deploy and drive the value proposition
Capable S&OP
• Process is established driving integrated operational and financial planning
• Full suite of KPI’s to drive operational effectiveness, achieving 95%+ capability
• Issues are identified and this is the decision making process
• Annual budgeting process removed – S&OP numbers drive forward plans
• Team working behaviors are demonstrated throughout the process
Foundation S&OP
• All elements defined with correct accountability, KPI’s and structure
• Focus is demand /supply tactical balancing
• Initiate integrated supply chain KPI’s
• Challenging behaviors but not yet working
Disconnected Management Processes
• Traditional management meeting focused on the past
• Annual budgeting process with poor basis for forward projections
• Functional/silo management – few/unaligned objectives & measures
• Defensive functional behaviors
Note: Model courtesy of Oliver Wight
Phase 1
Phase 2

Summary
How Oracle Enables Next Generation S&OP
5-Step S&OP Process
Management
Review
Product
Review
Demand
Review
Supply
Review
Financial
Review
Supporting Planning Processes
• Supply Planning
• Long-Term Capacity Planning
• Financial Planning
• What-If Simulation
• S&OP Process Management
• Performance monitoring integrated with planning applications so that decisions can
be driven into operations
• Aligns value chain planning and operations with strategic financial plans and
budgets
• Built-in forward looking analytics so executives can see where the business is
heading and make informed decisions
• Rapid, robust, constrained and profit-optimized "what if" capabilities to enable
event-driven S&OP

What Analysts are saying
Oracle rated a Leader in Gartner’s
Magic Quadrant for Supply Chain
Planning
Process Automation
Gartner:
MarketScope for Supply Chain Planning: Process Automation, 2009
By: Tim Payne
Published September 3, 2010
The Magic Quadrant is copyrighted September 3, 2010 by Gartner, Inc. and is reused with permission. The MagicQuadrant is an evaluation of a marketplace at and for
a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not
endorse any vendor, product or service depicted in the MagicQuadrant, and does not advise technology users to select only those vendors with the highest rating.
Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Note: “This MagicQuadrant graphic was published by Gartner, Inc. as part of a larger research note and should be evaluated in the context of the entire report. The
Gartner report is available upon request from Oracle.”
Leaders
•Have multi-industry domain expertise
•Full offerings covering the entire supply chain
•Offer a upgrade path for users
•Have evolving strategies to meet emerging
requirements

Oracle Sales & Operations
Planning Meeting
Steve Zadig
11‐18‐10

Steve Zadig, background
• Avowed Start‐up Junkie
• 40 years of experience in Semiconductor Industry Engineering and Operations
• Core competency is start‐up to IPO stage
– Build teams
– New Product Development
– Establish scalable infrastructure
• 2 of 3 fastest growing private companies in semi history

Steve Zadig, con’t
• 3 IPO’s (would have been 4 had it not been for the 2008
Global Economic Crisis)
– C‐Cube Microsystems
– Paradigm
– Marvell
– Telegent (should have gone spring ’09)
• Principal founder of the Fabless Semiconductor
Association (now GSA)
• Advisory Board Member (SiTime, Clariphy, NewCo)

Start‐up lifecycle
• Idea / formation
• Engineering / business development phase
• Revenue begins
– Simple finance controls in place
– Formal Operations started
• Revenue grows
– Higher level of control required
– Strategic infrastructure growth planning required
– QuickBooks no longer sufficient
– Midsize or Big Box?

Define, Design, Build, Sell (Business 101)
• Define
– What is your business (regional, global?)
– How big and how fast will it grow?
– What business processes to you need to support?
• Finance (# of Orgs, currencies, reporting)
• Ops (Supply Chain, Costing, B2B)
• Sales (CRM)
– What is your confidence level / budget to support
tools?
– Vendor selection
• Big box? Mid‐size?
• Implementation support
• timeline

Define, Design, Build, Sell
• Design Phase
– What are your business processes? (now / later)
• KISS (Keep it simple stupid!  It will get more complex)
• Minimize customization (upgrades will kill you)
• Minimize mix and match systems
– What are your  current and future requirements?
• Financial  accounting / reporting
• Vendor management  / cost accounting(OSFM / B2B?)
• Part numbering / Marking / traceability
• Integrated Purchasing (iProcurement)
• ASCP
• CRM
• Doc Control

Define, Design, Build, Sell
• What is your internal resource commitment?
– You must feed the beast or it will eat you!
• Selection of Implementer
– Business experience / matched resources
– Long term support / offshore back office
– Schedule / ‘go live’ expectations
• Build out (resource, resource, resource)
• In house expertise
• User training (adequate support?)
• Testing or jump and learn to fly?

Define, Design, Build, Sell (run)
• O.K., you’ve gone live and survived, now
what?
• More functionality (return to Define)
– Upgrades / new functionality /requirements
– Productivity enhancement / utilization
– Training
– Offshoring

Telegent – case study
• Offshore Business model
• Watching costs – QuickBooks early on
• Revenue business complexity exceed early expectations
• Oracle and USJade selected October ’07
• OSFM added in November (real time costing)
• ‘Go live’ end of January ‘08
• Fiscal year end March 31st ‘08 completed with zero issues
• B2B goes live August ’08 – 99% transaction accuracy, OTD >99%
• 3 Day Financial closes the norm
• Operational closes with near zero variances by 5 pm US time on last
day of Quarter. Near perfect inventory reconciliations
• iProcurement implemented early ’09
• Seamless upgrade to 12.05
• ASCP implemented FYQ1’10

Lessons learned
• Understand your business
• Implement ERP Systems earlier than later
– Changing horses mid‐stream can be very painful
– Vendors offer pay as you grow support models
• Choose your Implementation partner carefully
– Like a marriage, you will be together for a long time
and divorce can be painful
• This is an investment, you get what you pay for
• There is no free lunch, do the work

Sales & Operations Planning:
Tool or MIA?
Oracle Executive Power Breakfast
November 18, 2010
Mel Nelson, CFPIM, CIRM, CSCP
M.N. Nelson & Associates, Inc.

M.N. Nelson & Associates, Inc. 2
Symptoms of S&OP Problems
• High level of late shipments/backorders
• High volume of orders that do not allow
enough lead time
• Inventory imbalance / excess
• Shipments heavy at month end
• Finger Pointing

Our S&OP Journey
• What is Sales and Operations Planning
• Basics of How to Make it Work
• The 4 Necessary Steps

Our S&OP Journey
• What is Sales and Operations Planning
• Basics of How to Make it Work
• The 4 Necessary Steps
– Recommendation
1. Take Some Notes
2. Make it Work Back at Work
The Monthly 4 Step S&OP Process
M.N. Nelson & Associates, Inc.
Run Month
End Reports
End of Month
•Statistical Forecasts
•Field Sales Worksheets
Executive
S&OP
Meeting
•Decisions
•Authorized
Game Plan
Pre-SOP
Meeting
• Recommendations &
Agenda for Exec Meeting
• 3rd-pass spreadsheets
(consensus, alternatives,
what-ifs)
Demand
Planning • Management Forecast
• 1st-pass spreadsheets
(with new forecast)
Supply
Planning • Capacity constraints
• 2nd-pass spreadsheets
(with new production plan)
Step 1
Step 2
Step 3
Step 4

Planning & Scheduling
Disconnect
Strategic Planning
Business Planning

6
WE THINK OUR
MASTER SCHEDULERS
KNOW WHAT THE HELL THEY’RE
DOING !

Strategic Planning
Planning &
Scheduling
Business Planning
Sales & Operations
Planning

Resource Planning Model
Business Planning
Strategic Planning
FORECAST&DEMANDMGMT.
Volume
SALES &
OPERATIONS PLAN
Sales
Plan
Operations
Plan
CAPACITYPLANNING
SupplyDemand
Mix
Master Scheduling
Detailed Planning &
Execution Systems:
MRP, Plant Scheduling,
Supplier Scheduling, etc.

S&OP
MPS
MRP00000’s
000’s
10 - 20 Product Families
End-Items
Discrete Items
Sales & Operations Plan

MPS - End Products (Mix & Modular)
CRT (Name Brand/Generic)
25 Possible Models
Model #1
Model #2
Model #3, etc.
Generic Models
Containers (Generic/Name Brand)
Drums
Plastic Tubes
Bottles Glass
Bottles Plastic
Product Lines ($)
CONTINUOUSDISCRETE
TELEVISIONS, Refrigerators
S&OP - Product Families (Rate)
CONDIMENTS, Frozen Foods
CRT
Plasma/LCD
Rear Projection
Ketchup Flow Line

The Executive S&OP Meeting
• Sales/Marketing (Forecast & Safety Stock)
• Finance (Dollar Guidelines)
• Operations (Current Production, Maximum Production
and Ramp)

YOU CAN GET A LOT FARTHER WITH A
KIND WORD AND A GUN
THAN YOU CAN WITH A
KIND WORD ALONE
…AL CAPONE

Current Future
Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Forecast
Beginning
Inventory
Ending
Inventory
Production
Plan
Product Family 101
Firm Orders and Forecast
Demand
Forecast Demand and
Personnel Planning
Forecast Demand and Capital Planning
Mktg/Sales: 40 Safety Stock
plus the Forecast
Finance: Never more than 65
Production: Current O/H: 40
Maximum: 55
Ramp: 5

Current Future
Forecast 40 40 45 50 70 40 40 40 40 40
Beginning
Inventory
Ending
Inventory
Production
Plan
Product Family 101
Demand
Forecast Demand and
Personnel Planning

Current Future
Forecast 40 40 45 50 70 40 40 40 40 40
Beginning
Inventory 40 40
Ending
Inventory 40
Production
Plan 40
Product Family 101
Demand
Forecast Demand and
Personnel Planning

Current Future
Forecast 40 40 45 50 70 40 40 40 40 40
Beginning
Inventory 40 40 45 50 55 40
Ending
Inventory 40 45 50 55 40 40
Production
Plan 40 45 50 55 55 40
Product Family 101
Demand
Forecast Demand and
Personnel Planning

Resource Requirements Plan
Tolerance = plus or minus 7%
Fam 1 Fam 2 Fam 3 Fam 4
Total Hrs.
Capacity
Required
Hours
Demonstrated
Capacity
Res 1 350 120 70 300 840 780
Res 2 160 300 800 175 1435 1800
Res 3 200 75 175 200 650 700
Res 4 220 50 100 250 620 310
Res 5 50 60 55 100 265 250
Period: July

WHAT THEY DO
• Sales & Operations Planning: balances demand and
supply at the aggregate, volume level
• Master Scheduling: balances demand and supply at
the detailed, mix level
• Sales Forecasting: provides future demand
information to both S&OP and Master Scheduling

Trilogy of Integrated Activity
Sales & Operations Planning
Sales Forecasting
Master Scheduling

Demand Planning
Any Independent Demand Item
• Family Forecast
• Option Forecast
• Spares and Service Parts
• Engineering Requirements
• Promotional Demands
• Inventory Build-Aheads

The Supply Planning Process
1. Develop New Production Plan
2. Translate New Production Plan:
- from product families to resources
- from units of product to units of workload req’d
3. Compare required workload (demand for capacity) to
demonstrated capacity (proven supply of capacity)
4. Adjust where necessary and practical
5. Where not practical, elevate to Pre-SOP Meeting

S&OP
Review
Resources
Performance
Measurement
Demand
Planning
Supply
Planning
Financial
Review
Start
Here
Process Inputs Organization
• Volume and Mix Forecast
• Verification of Release
• Capacity / Capability
• Financial Resources
Sales and Marketing
Engineering
Manufacturing
Finance
Process Outputs Organization
• Sales Plan
• Design Accountability
• Rate of Production
• Financial Plan
• Backlog Projection
• Inventory Projection
Sales and Marketing
Engineering
Manufacturing
Finance
General Manager
General Manager
Action plans at an appropriate time
to keep demand & supply in
balance.
The Result?
Monthly Meeting
Directors

The Monthly 5 Step S&OP Process
Run Month
End Reports
End of Month
•Statistical Forecasts
•Field Sales Worksheets
Executive
S&OP
Meeting
•Decisions
•Authorized
Game Plan
Pre-SOP
Meeting
• Recommendations &
Agenda for Exec Meeting
• 3rd-pass spreadsheets
(consensus, alternatives,
what-ifs)
Demand
Planning • Management Forecast
• 1st-pass spreadsheets
(with new forecast)
Supply
Planning • Capacity constraints
• 2nd-pass spreadsheets
(with new production plan)
Step 1
Step 2
Step 3
Step 4

Benefits of S&OP
• Higher Customer Service
• Lower Finished Goods Inventories
• Shorter Customer Order Leadtimes
• More Stable Production Rates
• Less Unplanned Overtime
• Higher Productivity
Top
Management’s
Handle on the
Business

About USJade
A Complete Solutions Provider
• Enterprise System Integrator
• Served more than 50 customers for over 10 years
• Rigorous Staff Certification Process
• Platinum Oracle Certified Accelerate Solution Provider
• Strategic Partnerships
• Experience with Global Implementations
• Global Delivery Capability – US, India, China, Israel
• Right Shore Delivery Model
• Right Size
• SAS 70 Type II Certified
© 2010 USJade Corp. www.usjadecorp.com 408-899-7212

Delivery Model
We Deliver Faster, Better, and more Economically
• Planning
• Assessment
• Strategy
• Architecture
• Requirements
• Design
• Pilots
• Training
On-Site
• Prototyping
• Proof of Concept
• Development
• Testing
• Conversion
• Maintenance/
Enhancement
• Support
Offshore
Pune, India
San Jose, CA
Boston, MA Beijing ,China
Tel Aviv, Israel
Delhi, India

Complete IT Solutions
Robust State-of-Art
Infrastructure
Large Depth of
Technical
Competencies
Transform Domain
Knowledge into Industry
Leading Solutions
Partner in Executing
Customer’s Growth
Strategy
Mergers &
Acquisitions
Process
Improvement
Industry
Specific
Portfolio
Management
Enterprise
Roadmap
IT Strategy
Systems
Integration
Gardian™ Hosting
& Managed
Services
Business Process
Outsourcing
Application
Management
Services
Business Continuity
& Disaster
Recovery
Business
Intelligence
Packaged
Solutions
Web
Technologies
Upgrades and
Patching
Assurance
Services
Solution
Center
Knowledge
Library
24X7 Delivery
Capabilities
SAS Certified
Operations
Alliances and
Partners
Global Service
Delivery Model
RDBMSMiddleware
Technology

Some of our Customers

Upcoming Events: usjadecorp.com/events
December 9th: “SOA Case Study: How Silver Spring
Networks Stays Connected to Their
Supply Chain” (webcast)
December 16th: “Transform Your Planning Process
with Oracle ASCP” (webcast)
Any Time: Complimentary Personalized
Workshop on Oracle Planning
(contact us to schedule)
Rosan Primeau
rosan@usjadecorp.com
408.899.7212

Oracle & USJade Power Breakfast Presentations: Sales & Operations Planning

Oracle & USJade Power Breakfast Presentations: Sales & Operations Planning

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