1. Session 4808 Using APICS Body of Knowledge to Prepare for APO Stephen Desirey, CFPIM DuPont Company Session Code: 4808

2. Session 4808 ERP Is Only An IT Project Headlines we want to avoid Integration Testing Starts With Go-Live Data Accuracy Measured At 45% Do It Yourself Software 30 Day Install Without Changing Work Practices Vendor Implemented ERP

3. Session 4808 With APO, “Failure is not an Option”

4. Session 4808 Start with a solid foundation

5. Session 4808 Preparation: APICS Body of Knowledge Detailed Scheduling and Planning Basics of Supply Chain Management Execution and Control of Operations Master Planning of Resources Strategic Management of Resources

6. Session 4808 Traditional supply side thinking These are questions of priority and capacity What do we already have? What must we get? What are we going to make? What does it take to make it? Data Accuracy Data Accuracy

7. Session 4808 But first, demand side thinking These are questions to justify the business purpose Will we make money on this sale? Where will we deliver this? Why are we selling this? Why will they buy this? Data Accuracy Data Accuracy

8. Session 4808 Will demand and supply be balanced? Sales & Operations Planning Process

9. Session 4808 Sounds simple Suppliers Customers & Consumers Sell, Buy, Make, and Deliver Integration of systems becomes the critical operating task

10. Session 4808 Managing Process

11. Session 4808 Managing Process in APO

12. Session 4808 Process Data Management Technology Managing Process Data Accuracy and Completeness for Recipes, BOMs, and Planning Parameters Keystone BW R /3 Transaction Process

13. Session 4808 Single most important lesson APO (or other APS tool) will reveal the faults and gaps in the demand and supply chain management processes more than will be uncovered in the transaction (R/3) process. Managing Process This brings on exciting opportunities for game changing improvements.

14. Session 4808 Master data accuracy Material number (local or global?) Location of plants and storage locations Recipes Resources (including personnel staffing) Customer names and locations Bills of material Demonstrated capacity Required capacity Lead times Service levels required Others Requires 98% or better accuracy Yes, inventories must be accurate to 95%

15. Session 4808 10 APO Critical Success Factors 1. Identify the gaps between that future state and where you are today –Specify local, country, regional, and global business changes 2. Quantify the business opportunities possible with this integrated design 3. Move this concept to the specific ownership of the senior leadership –Involve them in a measurable way to validate vision and ownership 4. Develop scope of the project, “what is in and what is out” 5. Establish project team, sponsors, business process owners

16. Session 4808 10 APO Critical Success Factors (continued) 6. Recognize that planners generally prefer their current system, APO is not a replacement for the current legacy systems…it brings on a new more robust approach 7. Recognize that APO requires master data at the beginning of realization not at the end as does R/3 8. Identify what is required for views, planning, and transactions –Identify the new behaviors and roles for the future state 9. Finalize the project plan (timeline) and commitment of total resources 10. Execute to WIN for the bottom line results…“failure is not an option”…. recognize that this is more than an IT project…it is your business modernization

17. Session 4808 APO integrated community

18. Session 4808 Any questions?

19. Session 4808 Thank you for attending! Please remember to complete and return your evaluation form following this session. Session Code: 4808