The volatile, uncertain, complex, and ambiguous (VUCA) world is here to stay, and it is wreaking havoc on manufacturers, distributors, and supply chains throughout the world. Companies are failing at a faster rate than ever because they are failing to adapt to this highly dynamic and risky environment. A new rule has emerged – adapt or die. But how to drive adaptation when conventional tools and processes are failing to keep pace with these challenges?
In this groundbreaking text, Dick Ling, the father of Sales and Operations Planning, teams up with Demand Driven thought leaders Carol Ptak and Chad Smith to introduce Adaptive Sales and Operations Planning, an effective bi-directional bridge between strategy and operations enabling adaptation at all levels of the organization in the VUCA world. A step-by-step path to prepare, implement and sustain this robust S&OP process is detailed in over 300 pages of content and nearly 150 graphical displays.
Adaptive Sales and Operations Planning completes the Demand Driven Adaptive Enterprise framework and restores the original promise of Sales and Operations Planning for modern circumstances.
AVAILABLE IN ENGLISH AND SPANISH ONLY. French and Italian versions are planned for later in 2023.
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I would like to thank Carol and Chad for their coaxing of me out of retirement to collaborate with them on how to marry S&OP and demand driven into the demand driven enterprise described in this book. I believe that this elevates S&OP to a level well beyond what I had envisioned in 1984. We chose the term Adaptive because that best describes what S&OP has now become. Our hope is that management teams will see how much better they can operate their companies by embracing this concept.
Author's Note from Dick Ling
CH 1: Welcome to the VUCA World
CH 2: Striving for Relevant Information
CH 3: The Demand Driven Adaptive Enterprise Model
CH 4: An Introduction to Adaptive S&OP
CH 5: The Demand Driven Operating Model
CH 6: Demand Driven Sales and Operations Planning
CH 7: Performance Objectives for Adaptive S&OP
CH 8: Strategic Integrated Reconciliation
CH 9: Management Business Review
CH 10: Summarizing and Implementing the DDAE Model
Appendix A: Scenario Planning with Financial Analysis
Appendix B: Adaptive Systemic Thinking
Appendix C: Skill Buffers
Richard C. Ling
Dick is recognized as the creator of Sales and Operations Planning and well regarded as an educator, speaker and consultant. He coauthored the first book on Sales and Operations Planning. After graduating from the University of Rochester, Dick joined IBM where he gained valuable experience helping manufacturing companies utilize the computer. The most notable of these was Wilmot Castle Co., in the early sixties when Dick helped them implement time phased, level by level requirements planning before it was called MRP.
Dick’s interest in manufacturing applications led him to Arista Information Systems in North Carolina where he implemented MRP systems for companies such as Ingersoll Rand and Warner & Swasey in the early seventies. He and his staff developed MRP software with the first Master Scheduling capability in the industry. This software also had the first planning bill capability.
Ollie Wight recognized what Dick was accomplishing at Arista and he asked him to conduct “Hands on MRP” class for the Oliver Wight companies in 1974. Dick ran that class with Walt Goddard and in later years with Al Stevens and John Sari. Ollie decided to expand his education offering and asked several people to join him to conduct education classes and consult with clients. Dick became an Education Associate in 1979 and worked with the Oliver Wight organization until 1992. He conducted classes in the US, the UK and Australia, helping to grow the business and groom other instructors. Dick’s specialties were the Master Scheduling class and The Sales and Operation Planning class which he authored.
Ollie Wight passed away in 1983 with cancer and Dick was tapped to be a teacher in the Top Management class. Dick was teaching a class in Chicago when he got some valuable feedback from a General Manager who was in attendance. He said “Dick, I don’t get it. You say that sales and marketing, finance, operations and engineering, need to be involved in aggregate planning which you call Production Planning. Why do you call It Production Planning”? The term Sales and Operations planning was born. Dick launched the first Sales and Operations class for the Oliver Wight Companies in 1985.
In 1987, he co-authored the Book Orchestrating Success which was the first book about Sales and Operations Planning. Dick began collaborating with Andy Coldrick, who had joined Oliver Wight in 1986.That collaboration lasted 28 years until Andy’s death in 2014. They worked together at Oliver Wight, and as a duo in Ling-Coldrick from 1986 till 2014. In 2009 they self-published “Breakthrough S&OP, An Assessment Guide”. Dick would like to dedicate his efforts in this book to Andy who he worked with for so many years and had so much respect for.
In addition to Education and consulting with numerous clients, Dick has been a prolific speaker at APICS events. He spoke at 27 straight international conferences and over 500 APICS events. In 2000, APICS presented Dick with a lifetime achievement award for his contributions to APICS.
Dick and his Wife, Natalie, live in North Carolina. They have three children and 5 grandchildren and one great grandchild.
Carol Ptak is currently a partner with the Demand Driven Institute (www.demanddriveninstitute.com) and was most recently at Pacific Lutheran University as Visiting Professor and Distinguished Executive in Residence. Previously, she was vice president and global industry executive for manufacturing and distribution industries at PeopleSoft where she developed the concept of demand driven manufacturing (DDM). Ms. Ptak spent four years at IBM Corporation culminating in the position of global SMB segment executive.
A leading authority in the use of ERP and Supply Chain tools to drive improved bottom line performance, Ms. Ptak's expertise is well grounded in four decades of practical experience as a successful practitioner, consultant and educator in manufacturing operations. Her pragmatic approach to complex issues and dynamic presentation style has her in high demand worldwide on the subject of how to leverage these tools and achieve sustainable success.
She holds an MBA from Rochester Institute of Technology and completed the EMPO program at Stanford University. Ms. Ptak is a frequent educator at the university level and presents at many key technical conferences around the world including South Africa, France, Israel, Australia, Ireland, the Netherlands and eleven APICS International conferences. She is the author of numerous articles and the books DDMRP (Industrial Press, 2016) and Orlicky’s Material Requirements Planning 3/E (McGraw-Hill, 2011) with Chad Smith, in addition to MR and Beyond and ERP, Tools, Techniques and Applications for Integrating the Supply Chain, Theory H.O.W. with Harold Cavallaro, Necessary but not Sufficient with Dr. Eli Goldratt and Eli Schragenheim. Together with Dean Gilliam she updated Quantum Leap, originally written by John Constanza.
Ms. Ptak is certified through APICS at the fellow level (CFPIM) and was certified in Integrated Resource Management (CIRM) with the first group internationally. Ms. Ptak was the President and CEO of APICS, The Educational Society for Resource Management for the year 2000. Prior to her election as APICS President, she served on the Society in a variety of positions.
Carol Ptak currently makes her home on a working cattle ranch in the Pinal Mountains near Globe, AZ with her husband, Jim, three horses and the largest fold of purebred registered Scottish Highland cattle in Arizona.
Chad Smith is the coauthor (with Carol Ptak) of the third edition of Orlicky’s Material Requirements Planning (McGraw-Hill, 2011) and Demand Driven Material Requirements Planning (Industrial Press, 2016) and Precisely Wrong – Why Conventional Planning Fails and How to Fix It (Industrial Press 2017). He is also the coauthor (with Debra Smith) of Demand Driven Performance: Using Smart Metrics (McGraw-Hill, 2014). He is a cofounder of and partner in the Demand Driven Institute, an organization dedicated to proliferating demand driven methods throughout the world.
In 1997 Mr. Smith co-founded Constraints Management Group (CMG), a services and technology company specializing in demand driven manufacturing, materials, and project management systems for midrange and large manufacturers. He served as Managing Partner of CMG from 1998 to 2015. Clients, past and present, include Unilever, LeTourneau Technologies, Boeing, Intel, Erickson Air-Crane, Siemens, IBM, The Charles Machine Works (Ditch Witch), and Oregon Freeze Dry. Mr. Smith is also a certified expert in all disciplines of the Theory of Constraints, studying directly under the tutelage of the late Dr. Eli Goldratt.
Chad Smith makes his home in Wenatchee, Washington, with his wife, Sarah, and two daughters, Sophia and Lily.
Quisiera agradecer a Carol y Chad por persuadirme de que dejara mi retiro para que colaborara con ellos en cómo casar S&OP y la demanda impulsada por la empresa impulsada por la demanda descrita en este libro. Creo que esto eleva S&OP a un nivel mucho más allá de lo que había imaginado en 1984. Elegimos el término adaptativo porque describe mejor en qué se ha convertido S&OP ahora. Nuestra esperanza es que los equipos de gestión vean cuánto mejor pueden operar sus empresas al adoptar este concepto.
Nota del autor de Dick Ling
El mundo volátil, incierto, complejo y ambiguo (VUCA) llegó para quedarse, y está causando estragos a los fabricantes, distribuidores y cadenas de suministros en todo el mundo. Las empresas están desapareciendo a un ritmo más rápido que nunca porque no se adaptan a este entorno altamente dinámico y riesgoso. Ha surgido una nueva regla: adaptarse o morir. Pero, cómo direccionar la adaptación cuando las herramientas y los procesos convencionales no logran avanzar al ritmo de estos retos?
En este texto innovador, Dick Ling, el padre de la planeación de ventas y operaciones, se une a Carol Ptak y Chad Smith, los líderes del pensamiento Demand Driven, para presentar la Planeación de ventas y operaciones adaptativa, un puente bidireccional eficaz entre la estrategia y las operaciones que posibilita la adaptación en todos los niveles de la organización en el mundo VUCA. Un camino paso a paso para preparar, implementar y mantener este robusto proceso de S&OP que se detalla en más de 300 páginas de contenido y cerca de 150 ilustraciones gráficas.
La Planeación de ventas y operaciones adaptativa completa la estructura del modelo de la Empresa adaptativa Demand Driven y restablece la promesa original de la planeación de ventas y operaciones para las circunstancias actuales.
Tabla de contenido
CH 1: Bienvenido al mundo VUCA
CH 2: La búsqueda de la información relevante
CH 3: El modelo de Empresa adaptativa Demand Driven
CH 4: Una introducción a S&OP adaptativo
CH 5: El modelo operativo Demand Driven
CH 6: Demand Driven S&OP
CH 7: Objetivos de desempeño de S&OP adaptativo
CH 8: Conciliación estratégica integrada
CH 9: Revisión gerencial del negocio
CH 10: Resumen e implementación del modelo DDAE
Apéndice A: Planeación de escenarios con análisis financiero
Apéndice B: Pensamiento sistémico adaptativo
Apéndice C: Buffers de habilidades