Production
https://prod.org.br/article/doi/10.1590/0103-6513.20170024
Production
Research Article

Proposal of a model for sales and operations planning (S&OP) maturity evaluation

Pedroso, Carolina Belotti; Calache, Lucas Daniel Del Rosso; Lima Junior, Francisco Rodrigues; Silva, Andrea Lago da; Carpinetti, Luiz César Ribeiro

Downloads: 2
Views: 1410

Abstract

Abstract: A successful S&OP implementation can bring many benefits to organizations, and after its implementation, the S&OP process can evolve and reach higher levels of maturity. Considering that, only through a measurement system, goals and benefits can be achieved, thus, it is essential to assess S&OP maturity level. Many papers on literature adopt a quantitative perspective on S&OP, but just few of them deal with uncertainty present in S&OP decision-making, such as maturity model assessment process that carries subjectivity and uncertainty. Thus, this study proposes a decision making model based on fuzzy theory to evaluate and to categorize S&OP maturity levels and to suggest strategies to increase S&OP maturity. A pilot application was conducted in two manufacturing organizations that have implemented the S&OP process. The results, according to the performance presented, suggest different actions must be taken in terms of ensuring enablers to S&OP implementation.

Keywords

Sales and operations planning, Maturity model, Fuzzy inference, Fuzzy set theory

References

Abdullah, S., Aslam, M., Khan, T. A., & Naeem, M. (2013). A new type of fuzzy normal subgroups and fuzzy cosets. Journal of Intelligent & Fuzzy Systems, 25(1), 37-47.

Affonso, R., Marcotte, F., & Grabot, B. (2008). Sales and operations planning: the supply chain pillar. Production Planning and Control, 19(2), 132-141. http://dx.doi.org/10.1080/09537280801896144.

Alvekrans, A. L., Lantz, B., Rosén, P., Siljemyr, L., & Snygg, J. (2016). From knowledge to decision: a case study of sales and operations planning in health care. Production Planning and Control, 27(12), 1019-1026. http://dx.doi.org/10.1080/09537287.2016.1174892.

Association for Operations Management. (2009). Sales and operations planning: the secret to world class supply chain. Retrieved in 2017, March 29, from http:/www.apics-fraservalley.org/

Bellman, R. E., & Zadeh, L. A. (1970). Decision making in a fuzzy environment. Management Science, 17(4), 141-164. http://dx.doi.org/10.1287/mnsc.17.4.B141.

Bower, P. (2005). Twelve most common threats to sales and operations planning process. Journal of Business Forecasting, 24(3), 4-14.

Boyer, J. E. (2009). Ten proven steps to successful S&OP. Journal of Business Forecasting, 28(1), 4-10.

Calfa, B. A., Agarwal, A., Bury, S. J., Wassick, J. M., & Grossmann, I. E. (2015). Data-driven simulation and optimization approaches to incorporate production variability in sales and operations planning. Industrial & Engineering Chemistry Research, 54(29), 7261-7272. http://dx.doi.org/10.1021/acs.iecr.5b01273.

Cecere, L., Barrett, J., & Mooraj, H. (2009). Sales and operations planning: transformation from tradition. industry value chain strategies. Boston: AMR Research.

Chen Ritzo, C. H., Ervolina, T., Harrison, T. P., & Gupta, B. (2010). Sales and operations planning in systems with order configuration uncertainty. European Journal of Operational Research, 205(3), 604-614. http://dx.doi.org/10.1016/j.ejor.2010.01.029.

Chen, Z., & Sarker, B. R. (2015). Aggregate production planning with learning effect and uncertain demand. Journal of Modelling in Management, 10(3), 296-324. http://dx.doi.org/10.1108/JM2-12-2012-0044.

Crosby, P. B. (1979). Quality is free: the art of making quality certain. New York: McGraw-Hill Companies.

Denyer, D., & Tranfield, D. (2009). Producing a systematic review. In D. A. Buchanan & A. Bryman (Eds.), The sage handbook of organizational research methods. London: Sage Publications.

Denzin, N. K. (1978). Sociological methods: a sourcebook. New York: McGraw-Hill Companies.

Dougherty, J., & Gray, C. (2006). Sales & operations planning: best practices, partners for excellence. Belmont: Trafford Publishing.

Feng, Y., D’Amours, S., & Beauregard, R. (2010). Simulation and performance evaluation of partially and fully integrated sales and operations planning. International Journal of Production Research, 48(19), 5859-5883. http://dx.doi.org/10.1080/00207540903232789.

Feng, Y., D’Amours, Y. S., & Beauregard, R. (2008). The value of sales and operations planning in oriented strand board industry with make-to-order manufacturing system: cross functional integration under deterministic demand and spot market recourse. International Journal of Production Economics, 115(1), 189-209. http://dx.doi.org/10.1016/j.ijpe.2008.06.002.

Fraser, P., Moultrie, J., & Gregory, M. (2002). The use of maturity models/grids as a tool in assessing product development capability. In Proceedings of the 2002 IEEE International Engineering Management Conference (Vol. 1, pp. 244-249). USA: IEEE International. http://dx.doi.org/10.1109/IEMC.2002.1038431.

Gilmore, D. (2005). Integrated supply chain require effective sales and operations planning. Retrieved in 2017, May 05, from www.scdigest.com/accessed

Goh, S. H., & Eldridge, S. (2015). New product introduction and supplier integration in sales and operations planning: evidence from the Asia Pacific region. International Journal of Physical Distribution & Logistics Management, 45(9-10), 861-886. http://dx.doi.org/10.1108/IJPDLM-08-2014-0215.

Grimson, J. A., & Pyke, D. F. (2007). Sales and operations planning: an exploratory study and framework. International Journal of Logistics Management, 18(3), 322-346. http://dx.doi.org/10.1108/09574090710835093.

Hahn, G. J., & Kuhn, H. (2012). Value-based performance and risk management in supply chains: a robust optimization approach. International Journal of Production Economics, 139(1), 135-144. http://dx.doi.org/10.1016/j.ijpe.2011.04.002.

Herrera, F., & Martínez, L. (2001). A model based on linguistic 2-tuples for dealing with multigranular hierarchical linguistic contexts in multi-expert decision-making. IEEE Transactions on Systems, Man, and Cybernetics. Part B, Cybernetics, 31(2), 227-234. PMid:18244784. http://dx.doi.org/10.1109/3477.915345.

Hulthén, H., Näslund, D., & Norrman, A. (2016). Framework for measuring performance of the sales and operations planning process. International Journal of Physical Distribution & Logistics Management, 46(9), 809-835. http://dx.doi.org/10.1108/IJPDLM-05-2016-0139.

Ivert, L. K., & Jonsson, P. (2010). The potential benefits of advanced planning and scheduling systems in sales and operations planning. Industrial Management & Data Systems, 110(5), 659-681. http://dx.doi.org/10.1108/02635571011044713.

Ivert, L. K., Dukovska-Popovska, I., Fredriksson, A., Dreyer, H. C., & Kaipia, R. (2015a). Contingency between S&OP design and planning environment. International Journal of Physical Distribution & Logistics Management, 45(8), 747-773. http://dx.doi.org/10.1108/IJPDLM-04-2014-0088.

Ivert, L. K., Dukovska-Popovska, I., Kaipia, R., Fredriksson, A., Dreyer, H. C., Johansson, M. I., Chabada, L., Damgaard, C. M., & Tuomikangas, N. (2015b). Sales and operations planning: responding to the needs of industrial food producers. Production Planning and Control, 26(4), 280-295.

Kahraman, C. (2008). Fuzzy multicriteria decision making: theory and applications with recent developments. Turkey: Springer Science.

Lapide, L. (2004). Sales and operations planning part I: the process. The Journal of Business Forecasting, 23(3), 17-19.

Lapide, L. (2005a). An S&OP maturity model. The Journal of Business Forecasting, 24(3), 15-19.

Lapide, L. (2005b). Sales and operations planning Part III: a diagnostic model. The Journal of Business Forecasting, 24(1), 13-16.

Lapide, L. (2006). Top-down & bottom-up forecasting in S&OP. The Journal of Business Forecasting, 25(2), 14-16.

Lapide, L. (2007). S&OP Psych 101. Cambridge. Supply Chain Management Review.

Lapide, L. (2011). S&OP: the linchpin planning process. The Journal of Business Forecasting, 30(3), 4-5.

Lim, L. L., Alpan, G., & Penz, B. (2014). A simulation-optimization approach for managing the sales and operations planning in the automotive industry. Les Cahiers Leibniz, 212, 1-26.

Lima Junior, F. R., & Carpinetti, L. C. R. (2013). Multicriteria decision methods for supplier selection: a literature review on the state of the art. Gestão & Produção, 20(4), 781-801. http://dx.doi.org/10.1590/S0104-530X2013005000005.

Lima Junior, F. R., Osiro, L., & Carpinetti, L. C. R. (2013). A fuzzy inference and categorization approach for supplier selection using compensatory and non-compensatory decision rules. Applied Soft Computing, 13(10), 4133-4147. http://dx.doi.org/10.1016/j.asoc.2013.06.020.

Lima Junior, F. R., Osiro, L., & Carpinetti, L. C. R. (2014). A comparison between Fuzzy AHP and Fuzzy TOPSIS methods to supplier selection. Applied Soft Computing, 21, 194-209. http://dx.doi.org/10.1016/j.asoc.2014.03.014.

Mamdani, E. H., & Assilian, S. (1975). An experiment in linguistic synthesis with a fuzzy logic controller. International Journal of Man-Machine Studies, 7(1), 1-13. http://dx.doi.org/10.1016/S0020-7373(75)80002-2.

Massey, G. R., & Dawes, P. L. (2007). The antecedents and consequence of functional and dysfunctional conflict between marketing managers and sales managers. Industrial Marketing Management, 36(8), 1118-1129. http://dx.doi.org/10.1016/j.indmarman.2006.05.017.

McCormack, K., & Lockamy, A. (2005). The impact of horizontal mechanisms within sales and operations planning processes on supply chain integration and performance: a statistical study. In Proceedings of the 4th Global Conference on Business and Economics. Oxford.

Mendes Junior, P., Leal, J. E., & Thomé, A. M. T. (2016). A maturity model for demand-driven supply chains in the consumer product goods industry. International Journal of Production Economics, 179, 153-165. http://dx.doi.org/10.1016/j.ijpe.2016.06.004.

Mendoza, J. D., Mula, J., & Campuzano-Bolarin, F. (2014). Using systems dynamics to evaluate the tradeoff among supply chain aggregate production planning policies. International Journal of Operations & Production Management, 34(8), 1055-1079. http://dx.doi.org/10.1108/IJOPM-06-2012-0238.

Moon, M. A. (2006). Breaking down barriers to forecast process improvement. The International Journal of Applied Forecasting, 4, 26-30.

Muzumdar, M., & Fontanella, J. (2006). The secrets to S&OP success. Supply Chain Management Review, 10(3), 34-41.

Noroozi, S., & Wikner, J. (2017). Sales and operations planning in the process industry: a literature review. International Journal of Production Economics, 188, 139-155. http://dx.doi.org/10.1016/j.ijpe.2017.03.006.

Olhager, J., & Rudberg, M. (2002). Linking manufacturing strategy decisions on process choice with manufacturing planning and control systems. International Journal of Production Research, 40(10), 2335-2351. http://dx.doi.org/10.1080/00207540210131842.

Osiro, L., Lima-Junior, F. R., & Carpinetti, L. C. R. (2014). A fuzzy logic approach to supplier evaluation for development. International Journal of Production Economics, 153, 95-112. http://dx.doi.org/10.1016/j.ijpe.2014.02.009.

Paulk, M. (1993). Capability maturity model for software: encyclopedia of software engineering. Pittsburgh: Software Engineering Institute, Carnegie Mellon University. Technical Report.

Pedroso, C. B., Silva, A. L., & Tate, W. L. (2016). Sales and Operations Planning (S&OP): insights from a multi-case study of Brazilian organizations. International Journal of Production Economics, 182, 213-229. http://dx.doi.org/10.1016/j.ijpe.2016.08.035.

Pedrycz, W., & Gomide, F. (2007). Fuzzy systems engineering: toward human-centric computing. New Jersey: Wiley. http://dx.doi.org/10.1002/9780470168967.

Rabbani, M., Manavizadeh, N., & Hosseini Aghozi, N. S. (2015). Robust optimization approach to production system with failure in rework and breakdown under uncertainty: evolutionary methods. Assembly Automation, 35(1), 81-93. http://dx.doi.org/10.1108/AA-05-2014-038.

Rexhausen, D., Pibernik, R., & Kaiser, G. (2012). Customer-facing supply chain practices: the impact of demand and distribution management on supply chain success. Journal of Operations Management, 30(4), 269-281. http://dx.doi.org/10.1016/j.jom.2012.02.001.

Rocco, T. S., Bliss, L. A., Gallagher, S., & Pérez-Prado, A. (2003). Taking the next step: mixed methods research in organizational systems. Information Technology, Learning and Performance Journal, 21(1), 19.

Rowley, J., & Slack, F. (2004). Conducting a literature review. Management Research News, 27(6), 31-39. http://dx.doi.org/10.1108/01409170410784185.

Santos, A. V. N., Felix, L. B., & Vieira, J. G. V. (2012). Estudo da logística de distribuição física de um laticínio utilizando lógica fuzzy. Revista Produção, 22(3), 576-583. http://dx.doi.org/10.1590/S0103-65132012005000036.

Sheldon, D. H. (2006). World class sales & operations planning: a guide to successful implementation and robust execution. Fort Lauderdale: J. Ross Publishing.

Swaim, J. A., Maloni, M., Bower, P., & Mello, J. (2016). Antecedents to effective sales and operations planning. Industrial Management & Data Systems, 116(6), 1279-1294. http://dx.doi.org/10.1108/IMDS-11-2015-0461.

Taşkın, Z. C., Ağralı, S., Ünal, A. T., Belada, V., & Gökten-Yılmaz, F. (2015). Mathematical programming-based sales and operations planning at vestel Electronics. Interfaces, 45(4), 325-340. http://dx.doi.org/10.1287/inte.2015.0793.

Thomas, P., Thomas, A., & Suhner, M. C. (2011). A neural network for the reduction of a Product Driven System emulation model. Production Planning and Control, 22(8), 767-781. http://dx.doi.org/10.1080/09537287.2010.543560.

Thomé, A. M. T., Scavarda, L. F., Fernadez, N., & Scavarda, A. J. (2012a). Sales and operations planning: a research synthesis. International Journal of Production Economics, 138(1), 1-13. http://dx.doi.org/10.1016/j.ijpe.2011.11.027.

Thomé, A. M. T., Fernadez, N., & Scavarda, A. J. (2012b). Sales and operations planning and the firm performance. International Journal of Productivity and Performance Management, 61(4), 359-381. http://dx.doi.org/10.1108/17410401211212643.

Thomé, A. M. T., Sousa, R. S., & Carmo, L. F. R. R. S. (2014). Complexity as contingency in sales and operations planning. Industrial Management & Data Systems, 114(5), 678-695. http://dx.doi.org/10.1108/IMDS-10-2013-0448.

Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence‐informed management knowledge by means of systematic review. British Journal of Management, 14(3), 207-222. http://dx.doi.org/10.1111/1467-8551.00375.

Tranfield, D., Denyer, D., Marcos, J., & Burr, M. (2004). Co-producing management knowledge. Management Decision, 42(3-4), 375-386. http://dx.doi.org/10.1108/00251740410518895.

Tuomikangas, N., & Kaipia, R. A. (2014). Coordination framework for sales and operations planning (S&OP): Synthesis from the literature. International Journal of Production Economics, 154, 243-262. http://dx.doi.org/10.1016/j.ijpe.2014.04.026.

Ventana Research. (2006). Sales and operations planning: measuring maturity and opportunity for operational performance management. San Mateo: Ventana Research.

Viswanathan, N. (2009). Sales and operations planning solutions. Aberdeen: Aberdeen AXIS, Aberdeen Group.

Voluntary Interindustry Commerce Solutions. (2010). Linking CPFR and S&OP: a roadmap to integrated business planning. Retrieved in 2016, July 21, from http://vics.org

Wagner, S. M., Ullrich, K. K. R., & Transchel, S. (2014). The game plan for aligning the organization. Business Horizons, 57(2), 189-201. http://dx.doi.org/10.1016/j.bushor.2013.11.002.

Wallace, T. F. (2004). Sales and operations planning: the how-to handbook. Cincinnati: T. F. Wallace & Company.

Wang, J. Z., Hsieh, S. T., & Hsu, P. Y. (2012). Advanced sales and operations planning framework in a company supply chain. International Journal of Computer Integrated Manufacturing, 25(3), 248-262. http://dx.doi.org/10.1080/0951192X.2011.629683.

Wang, W. (2010). A fuzzy linguistic computing approach to supplier evaluation. Applied Mathematical Modelling, 34(10), 3130-3141. http://dx.doi.org/10.1016/j.apm.2010.02.002.

Wight, O. (2009). Sales and operations planning. Retrieved in 2016, July 02, from http://www.oliverwight-americas.com/our_approach/sop/sales-operations-planning.htm/accessed

Wing, L., & Perry, G. (2001). Toward twenty first century pharmaceutical sales and operations planning. Pharmaceutical Technology, 25(11), 20-26.

Wochner, S., Grunow, M., Staeblein, T., & Stolletz, R. (2016). Planning for ramp-ups and new product introductions in the automotive industry: Extending sales and operations planning. International Journal of Production Economics, 182, 372-383. http://dx.doi.org/10.1016/j.ijpe.2016.07.008.

Zadeh, L. A. (1965). Fuzzy sets. Information and Control, 8(3), 338-353. http://dx.doi.org/10.1016/S0019-9958(65)90241-X.

Zhao, S., Wang, L., & Zheng, Y. (2014). Integrating production planning and maintenance: an iterative method. Industrial Management & Data Systems, 114(2), 162-182. http://dx.doi.org/10.1108/IMDS-07-2013-0314.

Zimmermann, H. J. (1996). Fuzzy control. In H. J. Zimmermann. Fuzzy set theory: and its applications. Netherlands: Springer. http://dx.doi.org/10.1007/978-94-015-8702-0_11.

Zimmermann, H. J. (2001). Fuzzy set theory and its application. 4th ed. Boston: Kluwer Academic Publishers. http://dx.doi.org/10.1007/978-94-010-0646-0.

Zimmermann, H. J. (2010). Fuzzy set theory. Wiley Interdisciplinary Reviews: Computational Statistics, 2(3), 317-332. http://dx.doi.org/10.1002/wics.82.
 

5b86da1a0e8825b213e4c89d production Articles
Links & Downloads

Production

Share this page
Page Sections