S&OP another Tool in the Lean Manufacturing Toolbox

S&OP another Tool in the Lean Manufacturing Toolbox

Lean is about continuous improvement, elimination of waste and sustainability by establishing process’ and standards. The S&OP process is a “lean tool” in the form of a process that will help reduce and control raw material & finished goods inventory, reduce or eliminate unnecessary overtime and reduce lead time. All of these factors, if not controlled or go unchecked will erode our bottom line.

The S&OP process is not a small side project it is a vital part of the business because it involves every aspect of our business, from Sales, Finance, HR, Manufacturing, Supply and Service and will chart the course of action for the organization.

Without a direct mandate from the President & CEO that this is not an option but a mandate that everyone involved is required to participate and contribute. If this is just an exercise or people feel they have the option to not contribute or get involved, it will die before you even start.

As an organization if we reflect back and ask ourselves how much more could we have added to the bottom line if we had managed our sales, labor and inventory better I believe organizations can add significant increases to the bottom line.