S&OP FAQ by John Dougherty

How would you show the Production line on an S&OP supply & demand spreadsheet for a lean pull production line?

The title and definition of a production plan would not vary between a lean or not lean environment. A lean environment does not preclude making some product to stock. This is often called a supermarket. But in a pure make-to-order environment, when the finished product is never made without a customer order, the monthly production plan would be equal to the monthly sales plan. And its purpose is the same in the lean environment as in any other, that is to establish a rate at which a master schedule would be set to drive future material and resource requirements, that can be then communicated to the suppliers and manufacturing, so they can set up the resources in a way that will allow them to respond to a lean pull signal. (more…)