Page 373 - Orlicky's Material Requirements Planning

352 PART 3 Managing with the MRP System

Implementation Approach

This is a time-phased implementation plan showing the activities that should take place
over an implementation time frame of six months. Phase 1 takes place in months 1 and 2,
that is, alignment with senior management. Phase 2 takes place in months 2 and 3, that
is, driving the senior management agenda through integrated reconciliation. Phase 3
takes place in months 4 and 5, that is, driving the needs of integrated reconciliation to be
the outputs from new activities, demand, and supply (Figure 20-14).
Although we believe that a customized approach to S&OP is important, there are
certain principles that remain constant. The first and most critical one is that no business
can afford to spend time on S&OP unless there is a return on S&OP in six months. Early
successes and breakthroughs are mandatory. This implementation approach must be cus-
tomized for your environment.

APPLICATION OF S&OP TO VARIOUS ENVIRONMENTS
Does S&OP apply to any business? We believe that it does! Most S&OP use is in busi-
nesses that make and sell products. However, there are other businesses, such as small
service companies, to which the principles of S&OP also apply. These businesses have a

FIGURE 20-14
S&OP leadership and understanding.

Investment in Skill
S&OP Leadership and Understanding
Learn by Doing Development and
Understanding Impact of Behaviors Behavior Change
Agree Business
Strategies to Scope Step 1
Drive S&OP Senior Business Finalize Agendas and
Management Implementation Realization
Align to Strategy Review Scope of Steps 3, 4,
and Future and 5: New Activities,
Portfolio Demand, and Supply
Agree Business Scope Step 2
Agenda for Senior Integrated
Management Reconciliation Early
Performance Benefits
Management Scope Required
and Scorecard Output from Steps
3, 4, and 5: New
Decide S&OP Activities, Demand,
Leadership
and Supply
Understand Understand Understand
Software Needs Software Software Integrate Enhance, Simplify, and
& Required Excel Needs for Needs for Software Integrate Software Needs
Spreadsheets Steps 1 & 2 Steps 3, 4, and 5