#Production planning

Dear #CEO
“Where should the planning team sit within the company, some say it should be under production, others say the function should be independent of #production and #sales team, what is your view?”.

✅ The Sales & Operational Planning – S&OP, often #leadership decides that #planningscheduling will sit under the production department.
✅ Generally speaking, the larger the business the more #management need the planning department to be independent of both, #sales and #production.
✅ Whoever runs the #productionplanning needs to have a strong spine, they need to make the right decisions for the #strategy of the business, not for the individual needs of sales or production teams.
✅ Planning drives the #purchasing agenda.
✅ The Planning officer escalates issues higher if there is conflict between sales and production.
✅ All three teams need to set up rules of engagement how they work together and stick to them.
✅ A well functioning S&OP system can influence #motivation and needs #personaldevelopment of key management in understanding effects of #muri and #mura.
✅Are you suffering from the Macbeth effect, you know (sales, planning and production) all feeding you stories not based on facts!, each pulling in their own direction.