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again I said welcome to the session on sales and operation planning in short call snop sometimes called aggregate planning also this concept started in 1980 and the purpose was to manage the problems caused by overproduction and the production people used to grumble around since I have seen those days manufacturing people will complain about them sales and marketing people that the plans are poor they are changing too frequently than them other side the marketing people will complain about the production people that these guys don't produce and we lose the clients around so that problem has been going on for ages and that's how this s and opt so what we plan to cover up is today what is snop why yes and oh please so some flavor you got it from the example I give it to you when do we need it and how we implement so these are the four broad pillars I will try to cover around so let me walk through the next one what is the program you are going to cover so what is snop overview of demand demand planning and demand management also so and then also will try to talk about the quiz and question answers let's see what is I said okay so when we say I centopia the sales and operation planning and short call snop as a city in the beginning is an integrated plan most of the company which I have seen around in India is a monthly process and this is used mostly buying the weight started historically by manufacturing company but now I can see with many big companies who are dealing with services take are also planning to use it when it comes to planning of the resources when it comes to optimizing the resources this concept can be used for services as well so it's reviewed by the management of the senior level an aggregate level rican science the demand and supply plans add detail an aggregate level and link to the operating plans so it could be the planning horizons could be 18 months and during that 18 months we plan the resources part execute the business plan and strategy as well but broadly if I talk about the understanding of snop the common practice which I know many people when I asked her on what is the ask they say ask the sales people how am I going to sell when we talk about and they say guys just integrate with the supply very basic answer which is nothing wrong so s means deal with s scenes in marketing and mean integrant with the supply and opie means manufacturing plans but as a whole if you look around the world is moving toward the market driven focus and isoprene also deals with that around so when I see up s when I try to look around who at my market drivers how do i shape my demand can I change the packaging can I change the look of it can I change the features of it so then my demand is going up not going down when it comes to integrations we're trying to look integration as a value chain not just the supply chain and in this value chain we try to look around the trade-off obviously there are risk you if my marketing people have given me the plan and I planned my production ing to that and later on they come to me sorry guys if you're not getting this production this client has left us I've already laid down the resources that means there's a risk of overproduction overproduction me of services higher inventory they are all - so than me I have to orchestrate the demand around so it should not be left only for the production that we demand also has to be orchestrated so the b2b demand the b2b marketing part can also be to some extent automated so when it comes to the manufacturing plan the new concept which is today's talked about market driven who find the trade-off between the may source and deliver broadly I would say if in one line if I had to say it is nothing but the balancing of demand supply I know it's a million dollar question people have been struggling on it everybody is trying to improve the accuracy of matches so if demand is more supplies less you know the problems if supply is more than demand is less than this overproduction then you know the consequences are now so in short when I talk about demand we're talking about the demand forecast now how the forecast I come from that time is when people used to check or last year demand well someone just add 10% and they will give you the forecast what the CU has said or last year we did around 200 crore this year we will do 250 current so they work backward and they give the forecast and then the plus actual orders so they have in their own kitty the actual order then the forecast that is what my demand is supply obviously the supply has to come from inventory has to come from the supply orders and has to come from the resources if I were less resources I add the resources if I have got less capacity in terms of machining and this I add more machine all right subcontract them so this is how it is a basically the balancing of demand and supply the broadly if I talk about the aim of essence OB is to create a consistent operation so when we try to create a consistent plan the way it used to be in seventies and eighties I have seen in the beginning even still now many companies if you look at this picture you will find everybody is making their own plan plans are being made I'm not questioning the sales it will sell so much around 200 units marketing say something during the campaign will sell 400 units production sales will make only this one 150 units financed in my budget everybody has got their own but nothing is aligned to put the corporate level business plan so what we're doing in snop we are busy putting them together I had a chance to go and do one consulting for one of the companies on the snop first question I asked them what is snop they say it means only meeting in a very simple world to me it is not the meeting is a process even it's not a technology I know there are many software available to me the way I look around it is a process so this is where I want and then we're putting them together you're putting all the stakeholders together share their plan and come with a comprehensive aggregate map so it's a process that's what I want to emphasize on that look around the way it used to be in seventies eighties even some still companies are falling that everybody has their financial plans his plan everybody want to show a rosy picture but the reality is driven by the muck I think these concepts are working very well let me make very clear if I talk about India when there was fuse of manufacturers there was always a shortage the demand was always more if you think about those good old days when one car manufacturer one color one telephone companies few company making the figures few making the washing machines any plant will do anything you make means we used to follow the push concept that means somebody see as a guide makes a big plan production people are working hard and try to cope up with the bush but today the choices are much more product life is very short around so in those situations you need to integrate them around so this is where you need to bring them together this is what snop has done so this tries to bring those who are working in monopoly situation if you make very clear this may not be relevant for them then say why should I bother whatever I make I sell now aggregation of the plan if you look around the broad pillars if you look the demand is the starting point the game starts from the day it's a game now the game is starting from the demand so sales and marketing people downstream channel partners are there I have passed the demand then forecast demand forecast is gone surprised that people are giving their own logistics constrain upstream downstream suppliers whether they can work on our we try to come up then finance comes with their own guys my budget is so much and I have to make so much a profit I might be having hundred products in our 100 families of products around some corner gives me less profit some gives me more profit some have got problems so the finest comes to me guy this is what we have to do now you try to find a mix of my profit the bottom line has to improve and then the whole concept whatever we come up around it has to match with aligned with the strategy of the management the senior leadership and the director level the CEO level they have made their own strategy the demand plan which are working around integrated power aggregated plan is it matching is it aligned to the strategy if the top Massena back you say guys we have to move more into infrastructure we have to move more into the auto sector there to move more into the telecom sector so we have to see how my egg negate plans are there so it's basically aggregations of greediest plans this is what snop does i think this i said in the beginning also sounds familiar to all of you manufacturing complain that sales overstates demand and then then they blame us were too much inventory the poor guy who is ending the production is the manager the guys always blame then oh you're carrying too much inventory seems team complain when the manufacturing cannot deliver they say guys you're hurting my saying you're hurting the bottom line the same problem happens with manufacturing complains does not let them when new product introduction should be shadows they will never tell you when the new product is going to come up last when think I know now is the right time to launch a production people not ready for that so these words I'm sure your all conversion if that type of situation is happening around it's the right time to implement s and o P so this is where when it comes the question of when to implement where I was doing the consulting I said tell me how much is the accuracy of your plans error was thirty to forty percent so if your accuracy is hardly anything thirty forty percent error for production people have to fear the blunt of all the changes around so shortly I mean obviously company is not doing effective snop so this is the time that you better implement this let's start understanding the various terms around starting game is all about Devon I'm not starting with a supplier I'm starting with the demand because the company or any organization any entrepreneur works with the demand services so demand is the total number of requests for a resource the resource could be for consultant the resource could be the production I need so much tons of this it could be anything so demand management is all but making the choice I've got the resources I got the repressor 100 of requestor but I have got limitation I could constraints something has to be done early because that could have a multiplying effect improve my business others I can delete I won't still lose the current so that means make in the choices which path to follow and normally the demand manage the horizon is very short well when we are doing the plan the horizon could be 18 months could be even less and more I leave it to the it depends on the sector's similarly when I said to you in the beginning the meetings are supposed to be monthly of snop on average generally but if your products are very volatile its changing to frequency the life cycle of the product itself is only six month to me even one month is too high you may have to do it a shorter spanner so the word repressed mean is nothing but asking for something either politely or formally guys we need this much of this so those requests which I get is demand management is all about making the choices and planning reference to forecasting product and services now the demand process if you look around starts from planning what should we do to shape and create demand for us I got all the sales forecast so sales people are given me on the forecast I'm sitting in marketing I'm trying to do my in Devon planning I have already committed to my big boss in ski this is what I'm going to do what often packaging why should I change the packaging if that helps me should I change the product you look at this should I add some features around should I make some promotions give something on discounted price change the price change the place if I'm selling in X country and I'm not getting business can I change to another country so whatever you feel around to create the demand but don't forget the demand planning comes from the forecasting so that what should we expect demand to be given the demand plan in place so I've done the demand plan is a more a paperwork now question comes in place statistical forecast technical work forecast operational internal external factors all which counts around to make your forecast up and down sometimes the unbiased unconstrained many factors comes along and lastly come the management demand management so you start with a plan then from plan you say guys demand forecasting why should we do expect demand to be given in demand plan in place then question come up priorities your balancing demands price the new horizon of me and you're building the both sides of the phone so this is a broad process I would call around in keep in mind maybe doing the data analysis and snop you're not looking at a micro si SKU level how many nuts up there is how many bolts of this you're doing at the product group level I've got hundreds of products are are in a big companies so I go with a product group itself a product subgroup or the brand or the model so at that level we do this a novela not going at the color of this one around how many of white how many of left this one RSK you'll ever know so it's not going to the lowest level of SKU it remains that keep in mind in the group and subgroup and the model level then at the organization level at the top level the business level they do it in a much bigger way they will not talk about oh how many never gate is open you wash it will just say washing machine what model is this and I said okay level then talk about the broad family as a whole now demand management as I said to you is a process of ensuring that the demand and company's capabilities are in sync recognizing all demands for product and services to support the marketplace you need to prioritize the divine obviously all of us know very well in our day-to-day life we have limited resources and we have to make best use of it I know we can outsource a lot I'm not questioning that part around even in spite of that we have limited resources around then the next come the planning and using the resources changes in demand impacts production scheduling inventory levels but one thing one has to keep an eye on if I'm looking at a supply chain the moment I have moved already from sourcing a place order to the supplier and I'm starting the plan then come my sourcing so when I am doing sourcing and suddenly I get the information guys the planning gives you value changing the plan don't just react but you have to I mean variability is there I can understand it all and today's word much more then it used to be three decades back or two decades back now every product is so you have to preempt is this don't act only when the problem not react but 300 corner we have mean you to plan properly let's try to understand the whole overview of demand management I am giving more focus on demand because that is the main driving thing the customers they are obviously giving you inputs demand planning is coming sales and marketing people are giving you some information distribution replenishment data's are coming around interplan demands you might have 100 plants are 20 plants worldwide so one plant to another prime there may be demand for that also new product developments all the input is coming to you now you guys have to make within the demand menu to think of priorities and that input from demand management is going to snop and is also going to master scheduling now other side if we look around from the supply side you have manufactures introduced around development part is their design is their sourcing is there and then based on sourcing your making a rough cut capacity plan if you think of company like apple or someone who are not doing themself and affecting their basically outsourcing so their focus is more on design and also obviously design is done by them the development is done by them it's outsourcing then they try to work it out what is their of capacity are the rough capacity is based on sourcing the people with whom they're working with the suppliers with whom they're working what is the capacity to make it on the top of it at the strategic level we have the business plan so you have at the top level the strategic plans and a very broad level and ingly the financial budgets are available around so whatever you guys do at snop level has to be in sync with business plan that's a very key word around sync with business now the role of forecasting as we have seen when we talk about demand planning the demand forecasting is important so the demand forecast forms the basis of all planning decision it's applied all of you know there are two type of supply chain the push type and the prototype so push system means I have already planned I am going to sell this much I remember my time when I started my career with tugga's we used to get ready-made plan maybe once in three months six months we'll just discuss nothing more than that so we used to go to the push concert guys just metric plan and went key for this plan there are material for this band the sourcing for this the production all shadowing used to be done based on that and obviously when you're doing shadowing that way we used to plan a bigger batches around so possibly that could give us cost-effectiveness so we have anticipated demand and we produce based on that now in the case of pull system we have the plan and the base of the plan I made a set capacity in this year I am going to make do million pieces I have set the capacity and component availability is also having plan but as the demand comes I deliver them so that's how it works at all so the time horizon if I look around the short term medium term and long but keep in mind the forecasting if it is for the long term errors are much more obviously you and we have to predict our own personal carrier for next one year next two years 10 years possibilities are errors are much more even if you design best our own plans our personalized design all safety plan errors are going to be we can only plan for six month one year with much more accuracy same thing happened with in the shorter the horizon I can do a better forecast longer the horizons but one can't help it one has to make a long-term plan if you making the only short-term forecast then some of the equipment if I have to by the capital equipment this they can't come overnight so you have to do long term followed by short come as well let's look at the forecast inputs and outputs what type of inputs we need are our current customers new customers competition is what is happening around all of you know the Porter's five forces around the competitions economy how is the economy doing our GDP is going well great good idea that means everything will move faster you products pricing the pits promotions management directives history and others so this all inputs those to them and we are getting forecasts at us reason reasonable realistic reviewed represent c'mon so again my point is saying around is the process is not just looking at the last year data or six-month bank data and plus ten percent addition that these are gone coming back to the methods of forecasting one is called qualitative one is going to quantitate it as a name indicate qualitative very judgmental somebody expert people sit together or my opinion is this much very subjective human judgments little historical data available in new production time series which is a keen quantitative easy to implement I have got historical details in a graphical format causal cause L mean I'd know the cause and effect if this happens this is going to be the impact if 50% of my component I mean I automobile compadre are in a mobile phone 50% of my products are coming from abroad and the custom Duty goes up by from 5% to 20% is going to affect it so that means that component is a cause and the effect of that I could develop a relationship Y is equal to a plus BX so that Y is depending on a particular parameters one parameter could be 10 parameters I could develop the regression concepts around then I could similarly those so same thing I have tried to put again broadly under the subjective and object all quantitative thing is object time series is object causal a relational thing regression is all objective judgmental is all about delphi's and I said is set of experts around put them together guys can you give me your ideas around and just get the consensus among them I think Oh guys this is de experimental I could do simulations I could do surveys I could do many things so same thing I have tried to put in the subjective and objective or you could subjective and other one is quantity quality quantitative and qualitative subjective is basically qualitative and the other one is quantitative the characteristic of affluent are the very key flecked characteristic is always wrong it's not like a crystal ball will give you everything correct errors and our job in snop is to cut down their variability from the expected values long-term forecasts are usually less accurate than the short-term and there are some product which are mature product with stable demand are easier to forecast in the season words are fresh and items which are having a short life some of the consumer item has ordered life is very short six month they a new model comes in in those situation variability is much more much more volatile the principle of force if I look around first principle is really perfect and they're more accurate but group data than for individual light if you group them together don't go around key okay I mean the air conditioner business should I go with one time one point fight I know you clump them together and do the forecast now example which I'm giving you more from manufacturing but service industry also you know very well the service industry also has got their own supply chain and that the supply chain of service and us is different then when I'm talking about transportations whether I'm talking about IT business whether I'm talking about ticketing whichever business our banking here also a sobriety so there also we could think of these ideas are now forecast a more accurate for shorter than long term period now the factors which are affecting the demand for car and one of the questions somebody is also raised in already in advance these factor has to be reviewed not just the historical details type of economies if I am based in a country my client is based in a country which is totally centralized economy the government decides what can come in what cannot come in the tariffs I decide based on that that could affect all business business cycles and trends you know every business goes through up and down there are peaks and valleys keep in mind if today you are on the peak some day value could also come in I still have to see when you're getting a peek through and through if I years 10 years 15 year but then P comes in so one has to see where does it stand some of the products smartest product around when 10 years you have totally gone you technology comes in even the technology trend if I look around the blockchain the way it is coming around in the future people say the ledger will be also rocked here bookkeeping would be in blockchain many other activities move through the blockchain so that could change the whole concepts are economic indicators the lagging indicators leading indicators had to see around how is employment going on how other factors a Twinner government policies to support the industries that goes along way political stability more than anything else I would say political stability if nobody's sure whether this government will survive for long or not you can't expect medical them your forecasts would get to affected the market part if I look around the markets that's what Five Forces as you know the Porter's five forces competitions SWOT analysis your own SWAT rounds your strengths weakness and opportunity ance of your competitor as well your supplier as well if I'm totally depending on outsourcing I am totally horizontal integrated company not the vertically integrated one because my strengths in today's supplying chain the good abilities are gone when you used to be vertically integrated the government supply chain was not so visible the day could even become a horizontally integrated my flow of goods are coming from different part of the world in that situation being horizontal integrated SWOT is very important to me swatter mine and my suppliers if my suppliers are the one not they know it is surprise I could be left behind supply market complexity fortunately assessments and west sourcing strategy I'm falling error so when we talk of complex this sourcing strategy also there are as a leverage item is the strategic item is it a bottle like item is it a routine item so that could also affect your things around and the product life cycle are the product which I am trying to put my whole forecast what stage it is you know every product is got five stages are like human bodies somebody is a kid than infant infant we become a young guy in the young becomes same way for the product also you have a design like a baby then you are introducing that into the market the growth is less but then suddenly the growth comes then maturity will have to maturity people get fed up there's a decline so one has to accept as with happen with the human body same with the product also it happens around technology technology technology and that is becoming the biggest disruptor in your forecast era so you have to keep in mind what is going to change technology could be as we are seeing around LED lamps now nobody buys over lamps around so technology has changed the whole podcast of The Woodlands influences on the customer demand obviously you are looking at the historical patterns externally the weather the state of economy the internal factors and competitors actions what are your competitors doing around you might be the today the best of the world but how are your competitors doing with that are they moving faster than you and the basic approach to demand forecasting I would say first is understanding the objective of forecasting integrate the demand planning and forecasting together identifying the major factors that influence your demand forecast it could be seasonality also you know very well when the season comes whether it's a festive seasons or non festive season the demand could go up with that down if you are improving your capacity to match with the season then you will find more inventory during the down season time I understand the identity identify the customer segments so you have one wide range of customer you are identifying them which one to focus which are the long-term benefits to me that b2b concept orchestration has to be done geographical location product life cycles but still keep in mind no forecast is perfect but we have to improve upon it that's what accuracy for cars this question I always ask wherever I work with many of the companies who are doing an S on appeal I said can you tell me a fork US equities here some are not able to tell me because it feels bad but ultimately this is the starting point when we work with them accuracy should be the priority organizations begin by looking at demand for the current compared with the previous month our months to determine the accuracies if all the months I am failing by 40 percent 50 percent then something is wrong predict demand is used to predict future divide then it is important because leads to customer satisfaction if I've done a wonderful planning my forecast is good my customer is satisfied my mentee level is easy nibble obviously with all this my bottom line of the company is better cracked accuracy and make changes on a continuous basis it's a learning curve but this is important if you're doing on a regular basis that you learn the lesson next time you do better managing the supply so this so far we covered the demand part which is a major chunk of god now come to the supply side surprised that obviously I want to make no inventory at all because that is again as per my KPI come in the production I might travel in least in mantis our production matches with demand but if I start matching it the situation could also happen my capacity is underutilized when the load demand leaders fear during the seasons it goes well but when the non season I could have underutilized capacity my staff is free not being usefully level production stable production guide this is what I am going to make 40,000 pieces that's all sometime if you are selling more than the high capacity utilization first our management is easier but if I'm changing my capacity up and down I know many of the company using contact labor to cater for this managing the capacity now when we talk about capacities supply was very easy and I could outsource it but capacity mean I'm looking with an in-house my people my cook meant my machinery and if I'm in a service business if I'm taking more business but whether my team can manage that I've taken so many consulting work but I don't have a right team time flexibility from workforce season's temporary workforce subcontracting can i if I instead of augmenting my capacity can i subcontracted I remember the one companies again a manufacturing company that a limitation on making some farts as a support to the maintenance so then outsource things so it was it was able to cope with that same thing could you could do in services as well where I could outsource I won't call subcon and say obviously desiring product flexibilities are are managing in went is use common components across multiple products I might have multiple Ranger products there are many items which are calm aggregate demands more stable less obsolescence risk building mentee or high demand a predictability one item delay production operation item until they're closer to ceilings because if I start planning first session for Christmas now on Diwali now and half time is there I've start planning now but if two months before the season the demand may go down a demand me go up so you have to think of delay the production's enough broadly I would say there are five steps when we talk of snop the very step one is collecting the data supply marketing and poor sales actual the whole data is gathered around step come do comes at eat demand management planning and the Devon planning becomes my whole company X workers and then goes to the supply planning if I'm handing the supply side I try to see these guys are asking for big things I'm able to go up my suppliers can the Copa can the production of the Copa what are the constraints around so I'll try to come up with the capacity and material constraints now obviously there are trade off is required demand is giving big ideas around I have my limitations then the pre snop meeting where all the heads of the department of supply marketing design everybody sits together they try to resolve the current okay this problem we can solve this way we can give you more funds to buy more equipment we can give you more resources around so that means the whole conflict resolutions recommendations is prepared there's if you feel this is the finaland aggregate plans and these are the limitations there are constraints okay this is the way now ultimately the game plan ends when these decisions are supported by the top if top management is not supporting it it will not work so the decision and the game plan and then comes back to them in a simple version if I want to talk around week one I look at the scenes if you see us period review the market intelligence demand shaping forecast and orders finish coats and then I took the supply review I look at the previous speeder review availability of material do I am the material supplier capacity bicep askin provider not neat time now if you're coming around in this customer want within one knee but if my supplier cannot do it I can't so you have to come with the constrains on capacity the raw material inventory plan whatever now this information goes for issues for reservation so they are also sales is giving their own issues for resolution supplier people are giving their own issues for resolution but supply they do is based on sales level now operation people who are doing the production side manufacturing side previous period reviews supply provisions because operation also depends on supply some of the partially made components come from the supply center and then they make a finished touch and they may be only assembling it so work-in-progress and when keep an issues for resolution so all of them are giving issues for reservations so you go to the pre executive meeting and then finally equal to the exactly so this is the broadly I would call around the standard process now here I am trying to show you there are three levels strategic level technical level and operational level so the business plan is and strategic level all the in-between is technical level and the operational level here looking at the she rules now this is another issue around snop and supply SOP is not just a standalone what we prefer is if this is and involve all the key functions that mean a shinobi is not a central planning function guys I have got a big high level person having four five six people they just put together meeting once a month and that meeting was they resolve this goes to the top man CEOs approves it runs a little I think this team also has to look into it all the key functions has to look at the scenes has to look into distribution has to look into manufacturing and of so the supply chain which you have the full components so the planning is the first company if you know the Skjold model the school model starts with five components first is plan say in his source third is make whether you make a now so get it made from outside and the next is logistics and then you know just like me in going to the clients and the finally is coming back to the case there's a reverse logistics so those during the whole chain it is connected around and that's where we call as an integrated supply chain when we talk of effective Sno being effective when I say that mean less error forecast errors if my plans are only error of eight of ten percent how many effect so what we look around is a controlled systematically can to align with the business plan and this ajayan is responsive proactive it's not reactive and strategy so these components are important in the control is a top point at Holabird sales now the benefits if seeing around is links business plan to department operation i am in production my plans are linked into it I'm in marketing my plans are they around sales plans are they around business plans are there or not so I now spans are they around all department plan which by nature we are silos when I see go back to seventies and eighties everything were silos but today you're connecting them together improving the communication among them surprised the mean for both to work in the common goal eliminates a counterproductive hidden agendas around I would say greet a visibility of demand and supply across the company include Product Lifecycle better communications more predictable the value managed fits around so this gives you again the broadly the same thing step by step coming back to the snop class elevons the very first is strategic planning level second is technical planning and detail planning detailed planning is obviously at the lowest end lowest risk and strategic mean you are doing and a much higher level for a longer durations the risks are much better if we talk about the approaches when we talk about snop the approach could be the one could be that come from the top to bottom guys okay the top guy he has uploaded go ahead do it it's a top-down plan but some places where is the fashion product changes are too fast the whole mix is unstable I think that whatever planning can also work around I know most of the cases in which I have seen around still it works on a top-down planning but maybe in a very extreme case you know the product life cycle is very short whatever planning could work now meeting frequencies as I said to you stakeholders typically meet at the beginning of the fiscal year to develop the plan it is followed by monthly a more frequently if necessity to make the villages broadly we call monthly but it could be more frequently if needed if your company is operating and just in time our face is unpredictable tomorrow it could be even weekly so you are not really stuck with one month it could be weekly or even daily if you feel that problems are there if you're working on a JIT concepts around so the meeting juice the planning horizon of six to 18 months because you have to plan the equipment you have to plan the raw material you have to plan the long term agreement so you have to make a planning horizon of six to 18 months the best practices if I look around link the key processes let them work in their own separate system as lying they are linked together well then let them get validated initially obviously each one is doing their own scene forecasting production planning capacity planning they might be doing in their own separate system one is using MRP one is using this but all of them need to be connected validated and approved so once I get the approval that becomes my starting point for my answer I would say supply chain executive ownership of this would be snop is a major business process that manages the balance in trade-off between the conflicting professor I might be having conflicting preference should I go with this product much more I should I know less of this should I change the customers lead time all that thing is done there's the view the external influence certainly very very important around you cannot close your eyes and looking at only your own within the brick wall your own past data no today's in a global word what happens in X company could affect your from where you get that our material would affect your business because now you see many countries are now we are talking of balance of trade in some countries you were buying earlier but now the balance of trade is not favorable the custom duty changes so all the factors makes big difference now and then justifications for additional capacity you tuning of idle capacity is outsourcing all these factors you need to look into it to make it mass practice how to know if I send you P is successful the broad thing people say guys has spent so much money buying software buying this buying that main thing is your KPIs is saying hi stop in reads those talk out rates good invented turnovers I self through timely execution of inventory flows from the factory to the distribution so these are the parameter will tell you this kpi's guys your snop is doing well I send a P also like in anything around like in particular and also we got a maturity model sobriety and also me what a maturity model snop also has got a maturity model and this concept come from IT business you know everybody talks about CMMI file levels around here I'm only showing three so the level one maturity is monthly review once that's all so to me that is purely early beating once a month now is okay give me your surprise tell me what is the demand both shakin this yes sir we will do everything that's a very low level of maturity maturity to is coming colaborating you all's take orders work together combined aggregate plans supply planning new product introductions then executive snop that mean if the top level is a performance management is looked around financial planning is also done it is not just the supply and demand what is the impact on the finance itself the finance planning is also very important most of the cases I've seen finances not even look this the guys let's plan our one thing the success factor if I look around the key critical success factors CSF top management environment is a master ongoing the routine snop meetings structured meeting with the genders cross-functional participation I know some people I have toured these are these are very boring meetings you know but this has to be there I know some of you who are participating are from snop participants empowered to take decisions it done a collaborative process around measurement a process around Miami not looking at what is the outcome at the end of the forecast accuracy then standard deviation how much it is coming around can I improve it how to improve it and supported by integrated supply demand management now the whole snop is evolving now since it started 1980s some time has come to evolve so far it was all inside out that means we were only looking within our four walls we were making in the decisions we will not bother about what suppliers can do or not now we are looking at Network focus outside in there also getting the input from suppliers yourself so they mean the suppliers who are part of the chain of the supply chain they are also becoming providing with the anchors so they are also connected integrated some people call extended snop II whoopee Eastern's for extended see it's an operational planning and somebody may call integrate it so that means I am basically looking outside in outside ideas are also coming in and I think it makes sense in today's supply chain when we come totally horizontally integrated in the good old days when it's a vertically integrated I was going with inside out but today it is outside in because of the horizontal so keep in mind that so it's a market driven demand driven I did was driven by manufacturing today not the KPI is a vessel of the process if I look for the score model forecast accuracy has to be seen production plan and DNS has to be seen it meant keep plan and supply financial forecast echoed in seas are our challenges which we have an implementation is difficulty to get the right data in the timely fashion that is the biggest biggest problem a lack of support from the top I think these two big things I will talk about common difficulty which we have a certain change in supply and demand lack of executive support in inadequate engagement between the department people don't even meet together focusing on a single target number what number has been given in the top ones and we just stick to that lack of documentation operational changes and as SOPA leader who does not act as a necessity profit Center manager become many snop leader there the obviously just to coordinate as a good negotiator but they have to work as a profit Center managers that mindset has to change so once DT in the mindset that I think the outcome will come much better exact you fail to understand the supply chain complexity translating the planning process to effective execution well friend with this I want to thank you all for the patient hearing and things a day