Case Studies


Sales Inventory & Operations Planning (SIOP) process at FGP Systems

What is SIOP & why it’s operational here at Weymouth?

Definition:

  • A process whereby the Leadership of the company provides direction, resolves conflict and manages the operations of the business
  • A decision-making process that ensures that the tactical plans in all business functions are aligned and in support of the business plan.
  • Links the Annual Operating Plan (AOP) to the Master Production Schedule (MPS).
  • Seeks to achieve a balance between demand and supply.

Objective:

  • ONE business plan which balances supply capabilities with customer demand.
  • Consensus on a single operating plan which allocates the critical resources of people, capacity, materials, time and money to most effectively meet the customer demand in a profitable way.
  • Business leadership fully involved and committed to plan.
  • Carry out RCCA and execute corrective actions to resolve capacity issues

What SIOP is NOT?

  • Review of open orders
  • Tactical discussion of missed deliveries
  • Expediting sessions
FGP Systems
Departmental / tier meetings and weekly reviews address the tactical.

Benefits:

  • Helps to achieve AOP
  • Enforces disciplined communication process across functional boundaries
  • Allows organisation to react to changes: Forces leadership to anticipate future events that may impact their business and allows team to develop comprehensive action plans in reaction to these anticipated events. Handles unanticipated events more effectively because team structure, culture and communication channels are already in place.
  • Data is provided to enable hard business decisions to be made (extra resource required / more efficient application of resource). Identifies business commitments to inventory, personnel and capital expenditure.
  • Better planning; less fire-fighting
  • Improved schedule stability.
  • Reduce short L/T orders.

Management Operating System – standard.

The operating System that enables flow of intelligence and escalation through to CIM leadership = Appropriate Investment / Recruitment / Training and development aligned to both business and customer trends.

Data Sources that support all levels and business functions.

Clear and concise data readily available to support SIOP pack, with the capability of forward outlook and historic performance trends. Mitigating NVA activities. Fact base decision making supported by passion and desire is an extremely powerful attribute within any organisation.

FGP see SIOP as the enabler in being ready to realise potential opportunities and the shield in managing potential problems. We Consider all concerns and & ideas tabled across the business including the customer.

The old adage, “forewarned is forearmed” is really what SIOP is. In the majority of cases good intelligence and the resulting planning helps individuals and businesses navigate through the risks that both life and business throws up. Demonstrating the use of this proactive risk management approach sees us totally aligned with our major customers. No surprise of their desire to grow and develop the current company partnership further. 

Next Steps to be fully integrated within our Customer SIOP process.

FGP Buzzwords:
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