4 Challenges in Starting and Sustaining a SIOP (S&OP) Business Process!

A Sales, Inventory and Operations Planning (SIOP) business process is an essential element for running a successful business.  SIOP will allow you to improve your forecasting, capacity and resource planning, cash flow, and inventory levels.

Yet there are many challenges with getting a proper, functioning SIOP process in place.  If the benefits are so clear why is it so difficult to get SIOP going and then to sustain it?

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Design in Quality First!

The Division I had just joined was enjoying great success in Sales and Development.  They had created a modular building block design for their products.  Simply there were over two dozen different building block designs which could be configured in innumerable combinations to create the end product.

Each building block was designed to be a low-cost item.  Based on the customer requirements and specifications the building blocks could be combined in varying quantities.  Then a custom outer case, with the appropriate inputs and outputs, would be created to house all of the building blocks, interconnected on a master mother board.

It sounded great on paper and on Powerpoint slides.  But what came next was an absolute nightmare.

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