Page 372 - Orlicky's Material Requirements Planning

CHAPTER 20 Sales and Operations Planning 351

Although this is how S&OP has developed, we must reverse the sequence to imple-
ment successfully and quickly. Success to us means that you get real financial benefits
from the process in six months. This implementation methodology is called right to left,
which means that we start the implementation from the strategic intent and future prod-
uct portfolio (Figure 20-13).
The implementation phases are
Phase 1: S&OP as the great aligner. The first step is the senior business management
review and involves getting the business agenda around the strategic intent and
future product portfolio.
Phase 2: S&OP as the great reconciler and integrator. This means that the business agen-
da in the senior business management review (step 1) drives the activities and
discussion of integrated reconciliation (step 2). The different views adding value
are explored and reconciled with the strategic intent of the business. In more com-
plex companies involving global, regional, and country-wide activities, a manda-
tory step is to integrate and reconcile these views both top down and bottom up.
Phase 3: S&OP as the great unifier. This means that the operational steps of new activ-
ities, demand, and supply are directed from the needs of the integrated reconcil-
iation process. Different views are welcomed because they add value to the
knowledge of the business. Functional behavior is not tolerated in these steps,
and cross-functional discussion is expected. All participants in the S&OP process
are committed to a unified agreed-on latest view, having considered the different
options.

FIGURE 20-13
Breakthrough Strategic Intent and
S&OP. Future Portfolio

Align

Reconcile

Unify

Agreed
Latest View

Implementation Approach “Right to Left”