3. Sales and Operations Planning in R/3 Steve Campbell Business Process Analyst Holcim (New Zealand) Limited

4. Cement Aggregates Concrete Lime Holcim (New Zealand) Ltd

5. Milburn Lime Company originally incorporated in 1888

6. Over 500 Staff At more that 37 sites

7. McDonald’s Lime 72% Owned

8. What is Sales and Operations Planning? Sales and Operations Planning is a Formalised Communication Process Sales and Operations Planning is about People Sales and Operations Planning is not Detail Planning Sales and Operations Planning is about making good choices, for example: Scheduling Maintenance Shutdowns during slow periods Planning for appropriate capacity expansion / reduction Managing Inventory to meet demand

10. Sales and Operations Planning in SAP McDonald's Lime Sales and Operations Planning Model. Key Integration Points Billing Documents Production Work Centres Profitability Analysis Demand Management

11. Standard SOP vs Flexible Planning There are two options, Standard Sales and Operations Planning, and Flexible Planning. McDonald's Lime Limited chose Flexible Planning because of: Consistent Planning – The data is stored at the most disaggregated level. Therefore there is only one version of the truth. Standard SOP uses level-by-level planning allowing different figures at each level. Choice of Data Source – The information fed to Sales and Operations Planning can come from any source. Standard SOP uses only consumption data. Customisable Structure – Any characteristic, in any combination.

12. Consistent Planning & The Planning Hierarchy Flexible Planning requires the creation of a new Logistics Information Structure. The backbone which supports all planning activities on this structure (when using Consistent Planning) is the Planning Hierarchy.  Navigation in the SOP Planning Table is top down. You can only access the second level by making selections on the levels above.  Capacity Evaluation follows the same principles.  GET THE PLANNING HIERARCHY RIGHT!

13. Planning Table

14. Capacity Evaluation

15. COPA & Valuation We chose to Valuate our Sales and Operations Plan using out existing Sales Pricing Conditions (Price Book). Advantages: Leverage existing maintained and validated pricing Value fields such as Stock Value are included for margin analysis Disadvantages: Less Flexibility

16. Business Warehouse

17. Conclusion The Sales and Operations Process has enabled McDonald's Lime Limited to make better decisions. In one example, they were able to take an opportunistic order without the cost of bringing additional production capacity on stream. Taking the process into SAP has added additional benefits such as the Sales and Profit plan, forecasting, and there's more to come...

18. Points to Take Home Take time, think about the business decisions you want to support with Sales and Operations Planning. With Consistent Planning the Hierarchy Structure is the key to usability and success Be Creative with your use of existing reporting tools such as Business Warehouse.

19. Contact Stephen Campbell E-mail: stephen.campbell@holcim.comstephen.campbell@holcim.com Mobile: 021 769 873 Linked In: http://nz.linkedin.com/in/stevecampbellnzhttp://nz.linkedin.com/in/stevecampbellnz