S&OP Why SnOP

Monthly Cadence

Why SnOP?

Confidential © ams AG 2013

Page 1
S&OP VUCA
Monthly Cadence

Confidential © ams AG 2013

Page 2
 As it was…

Sales
Customer
Forecast

Customer
Buisness units Marketing
service
Orders Forecast Forecast

SCM - Logistics
Order confirmation, Production plan,…

Production Supplier Purchasing

Plan Plan Plan

Confidential © ams AG 2013

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3
’
How it started…

Confidential © ams AG 2013

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S&OP SnOP Core
Monthly Cadence

enable decisions
Process
support decisions Monthly
cycle
improve
ment
projects

drive decisions
Confidential © ams AG 2013
Page 5
S&OP Decision - base
Monthly Cadence

Requested
information Information
from Available
Management

Needed for
best
decision

Confidential © ams AG 2013

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S&OP Top Level
Monthly Cadence

Demand Supply Business Master

Management Planning Review Planning

Deploy revenue and

Estimate real market Analyze Capacity and Make business
factory loading
demand Feasible Revenue decisions
outlook

Consensus Demand Capacity Board Executive S&OP

Demand

2nd working day Tuesday of the S&OP Thursday of the

of the month week S&OP Week

Confidential © ams AG 2013

Page 7
 Core SnOP
SnOP core processes

Execution

Supplier Production

~300
Demand SAP Capacity planning
Manage engine
ment Systems Supplier Production

Customer Satisfaction

Confirmation Early Warning

Confidential © ams AG 2013
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Current coverage
Size

 ~100+ Suppliers

 ~2000 Supplier materials

 10 Internal Production sites

 150+ SAP Bottleneck Capacities

 Overall ~ 6000+ Materials

 1 Mio + planning elements

Confidential © ams AG 2013
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 SCM Systems Overview
System driven

Customer
Demand Planning
Orders
SAP R3 - SD Continuously, 18 month, SAP APO - DP

ACT data
SAP Engine Planning Master data
SAP CORE
Daily, 18 months horizon, SAP APO - CTM

Dataware house Power BI

Daily updated, SAP Analysis for Office Microsoft

Production Areas Supplier Forecasts

Feb*** Mar***
Feb*** Mar***
Stock incl.
Stock incl. PACKAGE_ PB_FREE_P new
PACKAGE_ PB_FREE_P new DEVICE Packagefam ily LEAD_COUNT SUBCONTRACTOR transport
DEVICE Packagefam ily LEAD_COUNT SUBCONTRACTOR transport CODE RODUCT products
CODE RODUCT products tim e* 2008-9 2008-10 2008-11 2008-12 2008-13
tim e* 2008-9 2008-10 2008-11 2008-12 2008-13 17389-491UT CTBGA 64 KVB YES Amkor, Manila, Factory P3, Philippines 0 0 0 0 0

Weekly, 18 months, SAP BW

17389-491UT CTBGA 64 KVB YES Amkor, Manila, Factory P3, Philippines 0 0 0 0 0 17670-101UT CTBGA 64 KRB YES Amkor, Manila, Factory P3, Philippines 0 0 0 0 0

Weekly, 18 months, SAP BW

17670-101UT CTBGA 64 KRB YES Amkor, Manila, Factory P3, Philippines 0 0 0 0 0 Sum 0 0 0 0 0
Sum 0 0 0 0 0
17639-293UT CTBGA 81 KUB YES Amkor, Manila, Factory P3, Philippines 12.445 12.445 7.522 0 0 0
17639-293UT CTBGA 81 KUB YES Amkor, Manila, Factory P3, Philippines 12.445 12.445 7.522 0 0 0 17640-001UT CTBGA 81 KQC NO Amkor, Korea, Factory K4 0 31.206 0 0 92.304
17640-001UT CTBGA 81 KQC NO Amkor, Korea, Factory K4 0 31.206 0 0 92.304 17742-001UT CTBGA 81 KLB YES Amkor, Manila, Factory P3, Philippines 0 0 0 0 0
17742-001UT CTBGA 81 KLB YES Amkor, Manila, Factory P3, Philippines 0 0 0 0 0 Sum 12.445 38.728 0 0 92.304
Sum 12.445 38.728 0 0 92.304
12739-001UT CTBGA 100 KRC NO Amkor, Korea, Factory K4 0 0 0 0 0
12739-001UT CTBGA 100 KRC NO Amkor, Korea, Factory K4 0 0 0 0 0 12775-003UT CTBGA 100 KSC NO Amkor, Korea, Factory K4 0 0 0 0 0
12775-003UT CTBGA 100 KSC NO Amkor, Korea, Factory K4 0 0 0 0 0 17287-001UT CTBGA 100 KSC NO Amkor, Korea, Factory K4 0 0 0 0 0
17287-001UT CTBGA 100 KSC NO Amkor, Korea, Factory K4 0 0 0 0 0 Sum 0 0 0 0 0
Sum 0 0 0 0 0
17710-001UT CTBGA 124 KMB YES Amkor, Manila, Factory P3, Philippines 0 0 0 0 0
17710-001UT CTBGA 124 KMB YES Amkor, Manila, Factory P3, Philippines 0 0 0 0 0 17850-001UT ePTQFP 10x10x1.0 MM 64 BCC YES Amkor, Korea, Factory K1 0 0 0 0 0
17850-001UT
10195-001UT
17496-011UT
ePTQFP 10x10x1.0 MM
epTS
epTS
64
20
24
BCC
SYZ
SAY
YES
YES
YES
Amkor, Korea, Factory K1
Amkor, Manila, Factory P1, Philippines
Amkor, Manila, Factory P1, Philippines
16.998
0
16.998
0
0
0
0
0
0
0
0
0
0
0
0
0
10195-001UT
17496-011UT
epTS
epTS
20
24
SYZ
SAY
YES
YES
Amkor, Manila, Factory P1, Philippines
Amkor, Manila, Factory P1, Philippines
16.998 16.998
0
0
0
0
0
0
0
0
0 Confidential © ams AG 2013
17754-001UT MLF 28 QCZ YES Amkor, Korea, Factory K1 0 0 0 0 0

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17754-001UT MLF 28 QCZ YES Amkor, Korea, Factory K1 0 0 0 0 0 17208-005UT MLF 36 QAZ YES Amkor, Korea, Factory K1 8.025 8.025 0 0 0 41.907
17208-005UT MLF 36 QAZ YES Amkor, Korea, Factory K1 8.025 8.025 0 0 0 41.907 13828-011UT SO15 14 JGQ YES Amkor, Manila, Factory P1, Philippines new device 0 0 0 0 0
13828-011UT SO15 14 JGQ YES Amkor, Manila, Factory P1, Philippines new device 0 0 0 0 0 14672-004UT SOIC 8 JOP NO Amkor, Manila, Factory P1, Philippines 4.967 new device 4.967 0 0 0 0
14672-004UT SOIC 8 JOP NO Amkor, Manila, Factory P1, Philippines 4.967 new device 4.967 0 0 0 0 14747-001UT SOIC 8 JOP NO Amkor, Manila, Factory P1, Philippines 0 0 0 0 0
14747-001UT SOIC 8 JOP NO Amkor, Manila, Factory P1, Philippines 0 0 0 0 0 17247-001UT SOIC 8 JCQ YES Amkor, Manila, Factory P1, Philippines 0 0 0 36.912 20.202
17247-001UT SOIC 8 JCQ YES Amkor, Manila, Factory P1, Philippines 0 0 0 36.912 20.202 17393-001UT SOIC 8 JOP YES Amkor, Manila, Factory P1, Philippines 94.951 94.951 0 0 0 0
17393-001UT SOIC 8 JOP YES Amkor, Manila, Factory P1, Philippines 94.951 94.951 0 0 0 0

10
17435-001UT SOIC 8 JOP YES Amkor, Manila, Factory P1, Philippines 39.788 39.788 0 2.681 11.494 11.494
17435-001UT SOIC 8 JOP YES Amkor, Manila, Factory P1, Philippines 39.788 39.788 0 2.681 11.494 11.494 17824-003UT SOIC 8 JCQ YES Amkor, Manila, Factory P1, Philippines 0 0 0 0 0
17824-003UT SOIC 8 JCQ YES Amkor, Manila, Factory P1, Philippines 0 0 0 0 0 Sum 139.706 0 2.681 48.406 31.696
Sum 139.706 0 2.681 48.406 31.696
 Clear timing
SnOP Calendar

wk Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun
40 Oct 1 2 3 4 44 Nov 1
41 5 6 7 8 9 10 11 45 2 3 4 5 6 7 8
42 12 13 14 15 16 17 18 46 9 10 11 12 13 14 15
43 19 20 21 22 23 24 25 47 16 17 18 19 20 21 22
44 26 27 28 29 30 31 48 23 24 25 26 27 28 29
30

Demand lock DCB meetings

SCM Engine release / Archiving Executive S&OP meeting
Operations Review

Confidential © ams AG 2013

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 Clear process
SNOP – Business Process Model

Confidential © ams AG 2013

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Capacity Gap Closure
Capacity Gap closure
Meetings: Capacity and Consumption, DCB, eSnOP

Confidential © ams AG 2013

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 Supplier review
Step 1 : FCST Close
Loading monthly aligned
demands to planning
engine

Step 5 : Gap Closure

Define actions to close the
Step 2 : Engine Release identified capacity gaps
Validation of planning results and/or change capacity
and final release modelling in planning
system

Step 4 : Inform
Suppliers
Distribution of
requirements (Supplier
FCST), collecting
Step 3 : SnOP feedback (capacity
Preparation of statement) and
requirements file summarize supply gaps
Confidential © ams AG 2013
(Supplier FCST)
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 Planversions
Currently a compromise, as finite engine not ready yet
Forecast release process - current

Infinite Consensus Plan

- What we need
- Unlimited capacity assumed

Semifinite Consensus Plan

Demand - “feasible” plan
Consensus Planning - what we can produce
Manage
FC Engine - based on agreed capacity model
ment - Lead-time / WIP / Capacity considered
- Base for Revenue Planning

Finite Revenue FC
- “feasible” plan with Customer orders
- What we do
- Daily execution

Confidential © ams AG 2013

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Example “Supply” review – internal
external Power BI

Confidential © ams AG 2013

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Example Capacity review – Internal /
External

History Cumulated Gap

Confidential © ams AG 2013

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Example Scenarios for Capacities

Compare 3 planning
Scenario versions
planning

Confidential © ams AG 2013

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 Decision making
Currently a compromise, as finite engine not ready yet
Forecast release process - current

 Capex needed?
 Make / Buy?
 Preproduction possible?
 Balancing needed?
 Which products do we load first?

Confidential © ams AG 2013

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 Executive summery

OSCM Summary Demand Outlook Internal Manufacturing

External Upcoming CAPEX Current vs Last S&OP

Manufacturing

Confidential © ams AG 2013

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S&OP Process KPI
SnOP Measurements

Key Quality of
Effectivenes
Milestones Capacity
s of Gap
for Process Statement in
Closure
Execution System

Delay on schedule
hidden capacity Lost sales
gaps
In time Gap Forecast to
Process coverage Sales

Confidential © ams AG 2013

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 Key success factors

System / process driven

 Clear process owners / roles

 System driven processes
 Planning
 Execution
 Communication
 Reduce complexity
 Standardization Confidential © ams AG 2013
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 Key success factors

People first

 Right people
 Form “quick” small review teams
 Reduce complexity

Confidential © ams AG 2013

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Questions?

Backup

Confidential © ams AG 2013

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Dimensions of SNOP reporting

Backward looking Forward looking

12 Months 1-18 Months

1 year Long term Planning - 5 Years

Plan to Actuals Plan to Plan

Month on Month
Weekly
Monthly
Quarterly
Yearly

Confidential © ams AG 2013

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Top Areas

Demand
External Suppliers
Supply / Load
Internal Production
External CAPA
Capacities
Internal CAPA
Inventory
Confidential © ams AG 2013
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SNOP Reports – rules for design

100% SAP based

SAP
scalable core system
SAP Buisness
ware house
Dynamic filters
SAP
Dynamic charts APO Planning
SAP Analysis
for office
Avoid EXCEL coding
Microsoft
Can be archived Confidential © ams AG
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Confidential © ams AG 2013

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