Practical Sales and Operations Planning
By John Chase
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About this ebook
Every manufacturing business operates a Sales and Operations Planning process of some sort. Somehow we decide which customers to pursue, what promises we should make to those customers, how much product to produce, what people and other resources we need, how much inventory to hold and how we will operate our factories. Most businesses agree that they could do this much better.
Many companies have made at least one unsuccessful attempt to formalize and improve their Sales and Operations Planning process (S&OP). Often these failures center around getting accurate sales forecasts produced each month, setting inventory levels and production plans and managing the monthly S&OP process.
Some of the challenges faced include:
1. High inventories of some products and raw materials, often accompanied by stock-outs in others;
2. Failing to provide products or services to the customer when they are needed;
3. Production plans that change frequently;
4. High costs;
5. Unhealthy levels of friction between the Marketing, Sales, Production, Purchasing and Finance departments, and
6.Frequent surprises, mostly unpleasant ones.
This book focuses on these solutions to these practical challenges:
1. Better sales forecasts with less effort
2. The right inventory levels
3. Stable production plans
4. S&OP that really works
John Chase
I grew up on a working dairy farm. We had around 100 Jersey cows to milk, feed, and care for. Also in the mix were chickens, goats, pigs, horses, dogs, cats, bees, geese, and even a few ducks. To feed the animals, we raised corn, wheat, silage and timothy/clover for hay. Our garden was big enough to feed our family of four throughout the year. Mom taught us that gardens are best when shared, she was always giving different herbs or excesses to the neighbors, and they were always sending different items to us. We would have fresh vegetables during the spring and summer, and canned or dried during the winters. We used honey on our biscuits and ALWAYS had a pot of vegetable soup on the stove. Mom raised two big boys that were never hungry. Lunches where a big affair, it was the main meal of the day, the break between milking and chores. This was the time to rest up before starting the next phase of the day. Lunches could have family or friends, sometimes neighbors or field hands. The meals consisted of whatever was "in season" at the time. The garden was a family endeavor. We never used chemicals, and it was fertilized with manure and steady crop rotation. Pests where controlled with particular care in companion plantings. Our garden was a mixture between vegetables, herbs and flowers, (and weeds that Mom always said where good weeds) a veritable jungle to the inexperienced eye. Mom was the primary knowledge base for what was planted, when it was planted, and why it was planted here or there. She was always reading, asking questions, and experimenting with different ideas. Mom did not have a "green thumb", what she had is common sense. She understood how to take advantage of the benefits of the different plants next to each other - companion gardening. That "jungle" that you may have seen NEVER let us be hungry in all the years on the farm. The garden was also our doctor; if any of us had the cold or flu... the remedy was readily available. Bee stings, bruises from cows kicking, headaches, stomach aches, nails through the foot, anything - the cure was always just past the arbor. As an adult I still use herbs and vegetables for the health of my family. And I am always amazed at the people I talk to who don't raise a garden because of their lack of confidence. This series of books "You CAN Grow It !!" is designed to answer your questions. It doesn't take a "Green Thumb", only common sense and the will to try. The "You CAN Grow It !...
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Book preview
Practical Sales and Operations Planning - John Chase
Practical Sales And Operations
Planning
Copyright John Chase 2012
John Chase has asserted his right to be identified as the author of this book.
ISBN 978-0-473-21770-9
Published by John Chase
Smashwords Edition
Smashwords Edition, License Notes
This ebook is licensed for your personal enjoyment only. This ebook may not be re-sold or given away to other people. If you would like to share this book with another person, please purchase an additional copy for each recipient. If you’re reading this book and did not purchase it, or it was not purchased for your use only, then please return to Smashwords.com and purchase your own copy. Thank you for respecting the hard work of this author.
Limit of Liability and Disclaimer of Warranty: The author has used his best efforts in preparing this book, and the information provided herein is provided as is.
The author makes no representation or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaims any implied warranties of merchantability or fitness for any particular purpose and shall in no event be liable for any loss of profit or any other commercial damage, including but not limited to special, incidental, consequential, or other damages.
Table Of Contents
Chapter 1: Practical Sales and Operations Planning
Chapter 2: Better sales forecasts with less effort
Chapter 3: The right inventory
Chapter 4 Stable Productions Plans
Chapter 5: Sales and Operations Planning that really works
About the author
SOPPLAN.com
Chapter 1: Practical Sales and Operations Planning
Every manufacturing business operates a Sales and Operations Planning process of some sort. Somehow we decide which customers to pursue, what promises we should make to