1. © The Delos Partnership 2007 page 1 Integrated Enterprise Leadership Overview of the process

2. © The Delos Partnership 2007 page 2 Customer Relationship Strategy 1.First Decide if you are Make to Stock or Make To Order May vary by family/product 2.Then work out the production plans Inventory Production Make To Stock Sales/ Shipments Order Book Sales Orders Production/ Shipments Make To Order

3. © The Delos Partnership 2007 page 3 Inventory Management Inventory is not something that can be managed – it is a result – it is a result Forecasts Actual SalesActual Production Planned Production

4. © The Delos Partnership 2007 page 4 Make to Stock Production = Demand Plan + (Inventory Target - Current Inventory) = 100 + 75 - 50) = 100 + 75 - 50) PRODUCTIONSTOCK

5. © The Delos Partnership 2007 page 5 Integrated Enterprise Leadership -3-2 Demand Plan120 Actual Demand119125132 Difference512 Cum Diff416 Months 123456789 Last Demand Plan120 New Demand Plan Difference Cum Diff Months Q4Q1 360 -3-2 Supply Plan125 Actual Supply119118121 Difference-6-7-4 Cum Diff-13-17 123456789 Last Supply Plan125 120 New Supply Plan Difference Cum Diff Q4Q1 360 -3-2 Stock Plan717681 Actual Stock 66665948 Difference-5-17-33 123456789 Last Stock Plan8691 New Stock Plan Difference Q4Q1 Make – To- Stock : Family Units

6. © The Delos Partnership 2007 page 6 Lead Time Management Lead time is not something that should be a result - it is something that should be managed Forecast of Requirements Actual Requirements/Sales Actual Shipments Planned Production/ Shipments

7. © The Delos Partnership 2007 page 7 Make to Order Production = Demand Plan + (Current Order Book - Orderbook Target) = 70 + 75 - 50) PRODUCTION ORDER BOOK

8. © The Delos Partnership 2007 page 8 Integrated Business Leadership -3-2 Demand Plan 70 Actual Demand 717580 Difference 1510 Cum Diff 616 Months 123456789 Last Demand Plan 70 New Demand Plan Difference Cum Diff Months Q4Q1 210 -3-2 Supply Plan 75 Actual Supply 706971 Difference -5-6-4 Cum Diff -11-15 123456789 Last Supply Plan 75 70 New Supply Plan Difference Cum Diff Q4Q1 210 -3-2 Order Book Plan615651 Actual Orders 66 677382 Difference61731 123456789 Last Plan4641 New Plan Difference Q4Q1 41 Make – To- Order – Family Units

9. © The Delos Partnership 2007 page 9 Family Summary Major Changes New Product included in Forecast Tender for Russia included Major Assumptions Competition will reduce price by 5 % We Win Russian Tender Major Threats Decisions Required Investment of Eur 0.5 m in Additional capacity for New Product

10. © The Delos Partnership 2007 page 10 Workshop Using the information given, develop a revised plan

11. © The Delos Partnership 2007 page 11 Integrated Enterprise Leadership To operate effectively an Integrated Enterprise Leadership process needs:  Timely acquisition of data on sales, inventory etc.  Formal process for preparation of data and information  Time for analysis of information  Discussions to get to conclusions  Time to prepare agendas and recommendations  A regular well communicated and adhered to process

12. © The Delos Partnership 2007 page 12 Integrated Enterprise Leadership ACTIONACTION Week 1Week 2Week 3Week 4 Innovation Review Innovation Review Customer Demand Review Customer Demand Review Supply Plan Review Supply Plan Review Priority Review Priority Review Stage 1 Stage 2 Senior Team Review Senior Team Review Stage 5 Stage 7 Stage 3 Support Review Support Review Stage 6 Stage 4

13. © The Delos Partnership 2007 page 13 Planned Calendar ……. Dates set in advance (annually) Everyone knows when it is Agenda pre-set Preparation happens If nothing to discuss, then no meeting Almost non-voluntary

14. © The Delos Partnership 2007 page 14 Multi-Level Integrated Enterprise Planning Week 1Week 2Week 3Week 4 Demand Planning Demand Planning Demand Planning Demand Planning Demand Planning Customer New Activity Review Innovation Supply Review Supply Review Supply Review Supply Review Financial Priorities Consolidated Recocniliation Financial Priorities Corporate Review Senior Team Review GLOBALLOCALGLOBALLOCAL LEVEL 1 Country/ Market LEVEL 2 Region/ Business Unit LEVEL 3 Europe/ Global HQ

15. © The Delos Partnership 2007 page 15 Characteristics of IEL process Formal set of meetings Agendas “pre-set” Linked series of meetings Focus on right decisions being made at right level Preparation not “thank goodness for the last minute” Facts not opinions Focus on Long-term and not short-term.