Best of the Best S&OP Conference

1. Best of the BestS&OP Conference First General Session SALES & OPERATIONS PLANNING: STRUCTURE, PROCESS, BENEFITS Panelists: Amy Mansfield Joe Shedlawski Terry Finnegan Presenter/Moderator: Tom Wallace

2. Amy Mansfield V&M STAR Production Planning Manager

3. V&M STARVallourec & Mannesmann Tubes North America's leading producer of seamless casing Annual Capacity 500,000 metric tons finished product 1st Executive S&OP Meeting, January 2006 Certifications: API 5CT, API 5L, OSHAS 18001, ISO 9001, ISO 14001

4. Products and Customers Oil Country Tubular Goods, Line and Standard Pipe, Coupling Stock and Mechanical Tube 100% Make-to-Order Sales Channels: 100% Distribution Key End Users: Devon, Exxonmobil, Chesapeake, Applied Drilling, El Paso

5. Joe Shedlawski, CPIM • Wyeth Consumer Healthcare • Principal, Commercial Operations • Past President of APICS (2007)

6. Wyeth Consumer Healthcare Headquartered in Madison, NJ Global marketer and manufacturer of over-the-counter health care products-analgesics, nutritionals, respiratory, topicals $2.7 Billion global sales First Sales and Operations Planning implementation-1992-Lederle Consumer Healthcare-led by Joe Shedlawski One of the world’s top 5 consumer healthcare companies with several top market share brands

7. Products and Customers Major Products: Advil, Alavert, Caltrate, Centrum, Chapstick, Dimetapp, Robitussin 70% Make-to-Stock 30% Promotional Pack or Custom Display Key Customers: Wal-mart, Walgreens,CVS, Costco, Target, Rite Aid, Kroger (Sales Channel: Distribution Centers

8. Terry Finnegan ImagePoint Senior Business Manager

9. ImagePoint • Largest provider of retail exterior image products and services • Headquarters in Knoxville, TN • Production facilities in Florence, KY and Columbia, SC • $200M in annual sales • Started ES&OP May 2007

10. Products and Customers • Products: signs, lettersets, electronic message centers, building elements, fascia systems, menuboards • Services: surveys, installation, maintenance, project management, conceptual art, and engineering • 100% Make-to-Order • Key customers: McDonalds, GM, Honda, Nissan, Ford, Chrysler, Lexus, Chase, Wachovia, Wells Fargo, Rite Aid, Fed. Express, Sunoco • Sales channels: direct to Corporate clients

11. Volume Supply Demand The Four Fundamentals • How Much? • Rates • The Big Picture • Product Families • Strategy/Policy/Risk • Monthly/18 Months+ • Top Management • Which Ones? • Timing/Sequence • The Details • Individual Products, • SKUS, Customer Orders • Tactics/Execution • Weekly/Daily 1-3 Mos • Middle Management Mix

12. The Old Terminology Sales & Operations Planning Volume Supply (Capacity) Planning Demand Supply Demand Planning/ Forecasting Mix

13. Sales & Operations Planning “Morphed” Terminology Sales & Operations Planning Volume Supply (Capacity) Planning Demand Supply Demand Planning/ Forecasting Mix Master Scheduling Supplier and Plant Scheduling Distribution Scheduling

14. Sales & Operations Planning “Morphed” Terminology Sales & Operations Planning Volume Supply (Capacity) Planning Demand Supply Demand Planning/ Forecasting Mix Master Scheduling Supplier and Plant Scheduling Distribution Scheduling

15. Sales & Operations Planning “Morphed” Terminology Sales & Operations Planning Volume Supply (Capacity) Planning Demand Supply Demand Planning/ Forecasting Mix Master Scheduling Supplier and Plant Scheduling Distribution Scheduling

16. Sales & Operations Planning Sales & Operations Planning Volume Supply (Capacity) Planning Demand Supply Demand Planning/ Forecasting Mix Master Scheduling Supplier and Plant Scheduling Distribution Scheduling

17. Sales & Operations PlanningNew Terminology ???????? Volume Supply (Capacity) Planning Demand Supply Demand Planning/ Forecasting Mix Master Scheduling Supplier and Plant Scheduling Distribution Scheduling

18. Sales & Operations PlanningNew Terminology Executive S&OP Volume Supply (Capacity) Planning Demand Supply Demand Planning/ Forecasting Mix Master Scheduling Supplier and Plant Scheduling Distribution Scheduling

19. The 5-Step Executive S&OP Process Decisions & Updated Game Plan Step 5 Exec Meeting Step 4 Pre- Meeting Step 3 Supply Planning Step 2 Demand Planning Step 1 Data Gathering

20. Conference Pointer The Five-Step Process Dean Smetana, VP, Sanford/Sharpie Bill Zimmerman, Manager, Sanford/Sharpie 10:00 Thursday – Level I

21. Management Forecast 1st-pass spreadsheets The 5-Step Executive S&OP Process Step 2 Demand Planning Step 1 Data Gathering Actual Demand, Supply, Inventory, & Backlog + Statistical Forecasts and Worksheets

22. Conference Pointer Forecasting and Demand Planning Scott Harrison, VP, Valor Brands 11:10 Thursday – Level I

23. Conference Pointer The Demand Management Game Robert Burrows, Principal, On-Point Group 9:45 Friday– Level I (double session)

24. Management Forecast 1st-pass spreadsheets The 5-Step Executive S&OP Process Step 3 Supply Planning Resource Requirements PlanCapacity Constraints 2nd-pass spreadsheets Step 2 Demand Planning Step 1 Data Gathering Actual Demand, Supply, Inventory, & Backlog + Statistical Forecasts and Worksheets

25. Conference Pointer Supply Planning Joe Shedlawski, Principal, Wyeth 2:15 Thursday – Level I

26. Decisions, Recommendations, Scenarios, & Agenda for Exec Meeting Management Forecast 1st-pass spreadsheets The 5-Step Executive S&OP Process Decisions & Updated Game Plan Step 5 Exec Meeting Step 4 Pre- Meeting Step 3 Supply Planning Resource Requirements PlanCapacity Constraints 2nd-pass spreadsheets Step 2 Demand Planning Step 1 Data Gathering Actual Demand, Supply, Inventory, & Backlog + Statistical Forecasts and Worksheets End of Month

27. Conference Pointer How to Conduct the Pre-Meeting and Exec Meeting Brian Harlan, Director Johnsonville Sausage 3:45 Thursday – Level I

28. Conference Pointer Obtaining Top Management Commitment and Participation Terry Finnegan, Senior Business Manager ImagePoint 10:00 Thursday – Level II

29. Conference Pointer Resolving Conflict and Building Consensus John Gallucci, Director, Gerber 11:10 Thursday – Level II

30. Decisions, Recommendations, Scenarios, & Agenda for Exec Meeting Management Forecast 1st-pass spreadsheets The 5-Step Executive S&OP Process Decisions & Updated Game Plan Step 5 Exec Meeting Step 4 Pre- Meeting Step 3 Supply Planning Resource Requirements PlanCapacity Constraints 2nd-pass spreadsheets Step 2 Demand Planning Step 1 Data Gathering Actual Demand, Supply, Inventory, & Backlog + Statistical Forecasts and Worksheets End of Month

31. Question for Panelists Your Process: Same? Different? Hardest Part?

32. Executive S&OP . . . • Is an executivedecision-making process • Balances demand and supply • Deals with volume in both units and $$$ • Ties operational plans to financial plans: one set of numbers

33. Conference Pointer Working with One Set of Numbers Amy Mansfield, Manager, V&M Star Melissa Takas, Financial Analyst, V&M Star 3:45 Thursday – Level II

34. Executive S&OP . . . • Is an executivedecision-making process • Balances demand and supply • Deals with volume in both units and $$$ • Ties operational plans to financial plans: one set of numbers • Is the forum for setting relevant strategy and policy regarding demand and supply

35. Question for Panelists What role does Top Management play in this process at your company?

36. Hard Benefits • Customer Service UP • Plant Productivity UP • Inventory DOWN • Obsolescence DOWN • Freight Costs DOWN • Order Lead Times DOWN • Supplier Lead Times DOWN • Time to Launch New Products DOWN

37. Conference Pointer S&OP Support for New Product Launch Craig Faulkner, S&OP, W. L. Gore 9:45 Friday – Level II

38. Soft Benefits • Enhanced Teamwork • Structured Communications • Better Decisions with Less Effort and Time • Better $$$ Plans with Less Effort and Time • Greater Accountability • Greater Control • Window into the Future Top Management’s Handle on the Business

39. Question for Panelists Biggest Benefits: Hard Soft

40. Question for Panelists Implementation: How Long? Costs? Toughest Part?

41. Conference Pointer How to Implement S&OP Successfully Rick Hall, VP, Homac/Thomas & Betts Bob Stahl, President, R.A. Stahl & Co 8:30 Friday– Level I

42. The Global Challenge “We are a series of organizations doing business locally, with intense global coordination.” – Percy Barnevik Former CEO ABB Executive S&OP should support these dual objectives.

43. Conference Pointer S&OP in a Global Business Alan L. Milliken, Manager, BASF 8:30 Friday– Level II

44. The Future of Executive S&OP: Growth Factors • Success breeds success

45. Adoption of New Processes There is a 15-25 year lag between the development of a new process and its widespread adoption. Examples: MRPII/ERP, TQM/6SIGMA, JIT/LEAN “The word gets around.” Executive S&OP Today

46. The Future of Executive S&OP: Growth Factors • Success breeds success • Lean Manufacturing and S&OP

47. Toyota: The Lean “Poster Child” At Toyota, production is pushed into  Fin Goods Inv (~ $2-3 Billion) In many companies, production is pulled by  Customer Demand In balancing demand and supply, many companies have a tougher job than Toyota. Their solution: Executive S&OP.

48. Conference Pointer S&OP and Lean Manufacturing Jeff Greer, VP, KVH Industries 2:15 Thursday – Level II

49. The Future of Executive S&OP: Growth Factors • Success breeds success • Lean Manufacturing and S&OP • Globalization • New users outside traditional manufacturing • S&OP specific software

50. Conference Pointer Technology as an S&OP Enabler Larry Lapide, Director, MIT 10:55 Friday– Level II