Supply Chain Metrics that Matter by Cecere Lora M

Author:Cecere, Lora M.
Language: eng
Format: epub
Published: 2015-01-24T00:01:39.637000+00:00

I then turned around, and asked, “Does this make sense? Any that you think that I am missing?”

A group discussion followed. They agreed with the points on the board, and Joe and his team believed that they were immature in their S&OP process and that the larger team needed education. They also thought that the improvement in agility and alignment could help their performance on the Effective Frontier. However, they wanted to know more about the stages and the phases of maturity. So, I gave them a handout that laid out the five stages of evolution:

Stage 1 goal: Deliver a feasible plan. The first S&OP process originated with a goal of developing a feasible plan. Early evolution of the planning enabled organizations to develop a forecast, visualize operational requirements, and align metrics. The introduction of the Theory of Constraints (TOC) in 1984 and the evolution of the concepts into manufacturing planning applications enhanced this capability. It allowed organizations to identify constraints and build a feasible, or realistic, plan.

Each of these supply chain planning models is very industry specific. A conglomerate composed of process, discrete, and apparel manufacturing found that it needed multiple systems to model operations. Approximately 25 percent of companies are functioning at this level. Joe's company was one of them.

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