Demand and Supply Management Planning out the processes © The Delos Partnership 2004

The Delos Model For Business Integration People Measures Improvement Quality Data Innovation Vision Strategy Prioritisation Demand Support Supply Delos business model recognises 4 major processes in a company : Demand, including forecast, sales, operational marketing, distribution, outgoing transportation, quotes, biddings, etc. Innovation, including all major changes, linked to strategy i.e.: new product, new technology, new distribution channel, new supply network, new management process, etc. Includes devoted resources: strategic marketing, research and technology, change management supporting group, task forces… Supply, including internal and external supply (purchasing), production of quality documents when they are part of the product (pharmacy, A&D, nuclear, …) Support, including all other functions, i.e.: finance, QA/QC, maintenance, MRO purchasing, HR, legal, … It also recognises there is a need for prioritisation, a monthly process where all 4 processes are balanced (harmonised, synchronised, adjusted, …) versus: external and internal changes, and gap to the strategy. This answers totally to the Michael Porter strategic equation model. (draw on paperboard) Strategy is Driving the business towards the vision, this is why vision to strategy is a one way arrow also meaning that vision is a driver for strategy. Performance Measurement is the most powerful driver for people’s attitude, it sets the objective and recognises progresses. It is also one of management’s rationale for decision making. This is why it must be a unique set binding Business Model. © The Delos Partnership 2004 © The Delos Partnership 2004

Integrated Enterprise Planning STAGE 1 A C T I O N STAGE 7 Innovation Review STAGE 2 STAGE 5 STAGE 6 Customer Demand Review Support Priority Review Senior Team Review STAGE 4 Forecasting And Customer Services STAGE 3 Supply Plan Review Week 1 Week 2 Week 3 Week 4 Master Scheduling And Supplier Management © The Delos Partnership 2004

© The Delos Partnership 2004 Processes Demand Planning – Forecast to Get order Customer Service – Order to Get Cash Master Scheduling and Supplier Management – Make Plan and Produce/Procure © The Delos Partnership 2004

© The Delos Partnership 2004 Format Responsibility : Who will carry out this role ? Procedure : What will they do ? Data: What information will they get, and what information will they output ? Frequency:How often will they do it : ? [daily/weekly/monthly] Policy: What policies govern this process : ? Software : What software modules will be used ? Measures: What are the performance measures that will be used to monitor this process ? Links: What other functions are involved ? © The Delos Partnership 2004

© The Delos Partnership 2004 Process Responsibility Describe who will carry out the roles covered by the process Procedure How will they carry out the process? What if they come across problems ? Policy What policies will be govern their actions in this process, and what will be the policy that applies Software What software modules from MFG Pro will be used, and what other software will be required ? Measures What measures will be in place and how frequently will they be reported ? Links What are the links to other functions © The Delos Partnership 2004

© The Delos Partnership 2004 Demand Planning Responsibility The Demand Manager will be responsible for gathering the demand for all items. This will include Service spares demand, Bottles, machines, training requirements. The responsibility for the quality of the forecasts rests with the department that supplies the forecast. Procedure The forecast will be collated once a month from each of the areas – Clinical, Service, Sales and Marketing. It will be provided to the Demand Manager on a spreadsheet which will show the forecast in the following units, and spread out over a 24 month horizon. It will be updated weekly in the event demand changes significantly. Policy The Forecast will be provided monthly by the first working day of the month. It will be in detail form for each area for 24 months. Thus for bottles is will be by SKU by country and by treatment centre. Measures The key measure will be the accuracy of he forecast, which will be measured as the accuracy of the forecast at the cumulative lead time: Forecast-Actual/Forecast x 100 % for each product family Software The MFG Pro Forecasting module will be used to drive the ERP system, but Excel spreadsheets will be used to collate the data by customer and by product for aggregation and upload. Links Clinical will provide a forecast for trial quantities of machines and bottles. Service will provide a forecast of spares items. ……. © The Delos Partnership 2004

Customer Relationship Management Plan Strategy Customer relationship Manager System Forecast ERP System Sales and Marketing Manufacturing And Purchasing Consensus Forecast © The Delos Partnership 2004 © The Delos Partnership 2004