D. R. Rice Company

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Sales & Operations Planning Handbook

Table of Contents

Section                   Topic                                                                                              Page

     1.            How to use this Handbook                                                                                                               1

2.            What is Sales & Operations Planning                                                                                            5

3.               The Five Steps of Sales & Operations Planning                                                                         11

                                   S&OP Flow Chart                                                                                                       16

4.            Demand Planning Process                                                                                                           17

A. What is Demand Planning?                                                                                       19

B. Linking to the Customer                                                                                             21

C. Advantages of a Good Sales Plan                                                                           22

D. One Approach to Generating a Sales Plan                                                             23

D1. Big Events List                                                                                             24

D2. Big Events Action List Explanation                                                            25

D3. Big Events Action List Description                                                             26

E. Root Cause Analysis Using “The 5 Why's”                                                              27

E1. Root Cause of Variances                                                                            28

F. Demand Planning Meeting Agenda                                                                         29

G. Sales Planning Action Items                                                                                     30

5.            Supply Planning Process                                                                                                              31

A. What is Supply Planning?                                                                                          33

B. Supply Planning Meeting Agenda                                                                             34

C. Root Cause Analysis Using “The 5 Why’s”                                                              36

C1. Root Causes of Variances                                                                          37

D. Supply Planning Action Items                                                                                    38

E. Rough-Cut Capacity Planning                                                                                   39

            E1. Steps to Set Up a Rough-Cut Capacity Tool                                            40

E2. Load Profile                                                                                                  41

E3. Monthly Rough-Cut Worksheet                                                                   42

 6.            Partnership Meeting                                                                                                                     43

A. What is a Partnership Meeting?                                                                               45

B. Partnership Meeting Sample Agenda                                                                     46

7.            Executive S&OP Meeting                                                                                                             47

A. What is the Executive S&OP Meeting?                                                                   49

B. Executive S&OP Meeting Agenda Topics                                                              50

C. Sample S&OP Agenda                                                                                             52

8.            Executive TO-DO List                                                                                                                    55

9.            Steps to Get Started with S&OP                                                                                                  59

10.          Definitions of S&OP Terms                                                                                                          63

11.          Sample S&OP Policy                                                                                                                    69

12.          Multi-Site Steps                                                                                                                              75

13.          Effective Meeting Habits                                                                                                               79

14.          Problem Solving Tools                                                                                                                  83

                                    A. "The 5 Why's"                                                                                                              86

15.          Worksheets                                                                                                                                    87

A. Make to Stock                                                                                                            89

B. Make to Order                                                                                                            90

16.          Reference Material                                                                                                                        91

A. Of Course We Do S&OP                                                                                          93

B. Sure You Have a Headache...( One Company’s Experience with S&OP)          95

C. Does You Company Need an S&OP Tune-up?                                                     99

17.          S&OP Assessment Checklist                                                                                                   105

18.          Performance Measurements                                                                                                     117


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D. R. Rice Company

9326 Lake Shore Drive • Brentwood, TN 37027 • 615-221-2196 • riceco@riceco.us