Abstract
Among the different issues that many companies face, the lack of a proper Planning process deviates the company to accomplish their objectives and goals. This shortage generates miscommunication, discoordination and problems among different departments, such as Marketing, Sales, Operations, Purchases and Finances. Planning is a guide for organizations to meet these goals and objectives, while efficiently using resources, managing risks and uncertainty and, creating competitive advantages. Therefore, it is important to implement and improve an appropriate planning process, based on a supportive methodology. It is here that Sales and Operations Planning (S&OP) arises as a useful methodology. It starts with an assessment of the current planning methodology the company uses, the market in which the business operates (based on Forecasts), and the supply provided to meet the demand (based on Time Studies, Production Capacity, Safety Stocks and Optimal Batch Size calculations); later creates and implements a production plan that will guide the company by tactical and operational procedures to fulfill customers’ demand monthly. This methodology will be presented by a case study applied to the Ecuadorian textile company named ABA, which gained significant results due to the usage of the S&OP process.
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Appendices
Annex 1 Breakdown of by-Products (Done by the Author)
Annex 2 Sales Frequency Analysis from 2015–2017 (Done by the Author)
2015 | 2016 | 2017 | |||
|---|---|---|---|---|---|
Product | Annual sales frequency [month] | Product | Annual sales frequency (month) | Product | Annual sales frequency (month) |
Product 2 | 12 | Product 2 | 12 | Product 2 | 9 |
Product 7 | 12 | Product 7 | 12 | Product 20 | 9 |
Product 22 | 11 | Product 22 | 11 | Product 7 | 9 |
Product 20 | 11 | Product 20 | 11 | Product 22 | 9 |
Product 11 | 9 | Product 36 | 8 | Product 11 | 8 |
Product 36 | 9 | Product 11 | 7 | Product 36 | 7 |
Product 27 | 5 | Product 27 | 7 | Product 17 | 6 |
Product 17 | 2 | Product 23 | 5 | Product 27 | 4 |
Product 37 | 1 | Product 17 | 3 | Product 37 | 3 |
Product 23 | 1 | Product 32 | 2 | Product 38 | 1 |
Product 41 | 1 | Product 25 | 2 | Product 25 | 1 |
Product 5 | 1 | Product 37 | 1 | Product 24 | 1 |
Product 9 | 1 | Product 3 | 1 | Product 23 | 1 |
Annex 3 Error MAPE Forecasts Products (Done by the Author)
Annex 4 Sample Size Analysis (Done by the Author)
Annex 5 Anderson Darling Normality Test of the by-Product Con11 in Machine WM3 (Done by the Author)
Annex 6 Standard Production, Allowed Stoppages and Efficiencies for Each by-Product and Machine
Annex 7 Capacities
Annex 8 Production Requirements Calculations for Each Product
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Bofill-Altamirano, M.A., Avilés-Sacoto, S.V. (2019). Implementation of the S&OP Process in Textile Company Case Study: Ecuadorian Textile ABA. In: García Alcaraz, J., Rivera Cadavid, L., González-Ramírez, R., Leal Jamil, G., Chong Chong, M. (eds) Best Practices in Manufacturing Processes. Springer, Cham. https://doi.org/10.1007/978-3-319-99190-0_9
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