Complete the following S&OP checklist to gain an insight into your current performance:

  • Do you lead a formal monthly Sales & Operations Planning process?
  • Is the Sales & Operations Planning policy fully documented?
  • Do you hold a regular, scheduled, monthly S&OP meeting with a planning horizon of at least one year?
  • Do you know the five S&OP meeting preparation steps?
    • Are all of these steps scheduled with adequate time to complete before the meeting?
    • Are all pre-meetings completed with full participation?
  • Does your organisation’s Senior Leader chair and provide direction to the S&OP meeting?
  • Is the monthly Sales & Operations Planning meeting regularly attended by executive management from all functional areas of the business?
  • Does your S&OP meeting consider and include all of the following?
    • Are manufacturing product or process families defined by taking into consideration critical capacity and/or material resources?
    • Is historical Demand/Supply data always accurate?
    • Are variations in actual Demand/Supply from Plan measured and root causes of variations determined and discussed?
    • Are all demands, including parts service parts, interplant, subsidiary, new products etc., realistic and summarised into product or process families?
    • Are inventory and/or backlog objectives established for each manufacturing product or process family?
    • Is a standard agenda item a full review of new product status and launch schedules?
  • Are the significant assumptions underlining the Demand Plans documented, reviewed at least monthly, and updated as conditions change?
  • Does your Sales Team understand the impact of Demand planning on the company’s ability to satisfy the customer?
  • Does the total of all Sales Plans equal the total revenue plan?
  • Does the total Sales Plan passes a monthly sanity check?
  • Are “rough-cut capacity” planning tools are in place to ensure that Demonstrated Capacity equals Required Capacity for all supply plans prior to approving the Supply Plans build rate?
  • Is actual supply (production) within a realistic tolerance for each manufacturing product or process family?
  • Does the output of the S&OP meeting contain all of the following?
    • An integrated set of demand, supply and financial plans to meet inventory, shipment, backlog and other company business objectives
    • A financial pro-forma based upon the updated S&OP plans
    • Executive management reviews containing a summarised set of performance measurements
    • An agreed-upon Supply Plan in units by manufacturing product or process family
    • Any significant deviations in the Annual Operating Plan and financial projections reconciled
  • Does senior management share equal responsibility with middle management for validation of S&OP Plans?
Download SOP Checklist

If you’ve answered no to one or more of the above questions then why not find out how Industry Forum could help you with your Sales & Operations Planning (S&OP)