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Businessexcellence July 07 12 step is owned by either the head of product development or the head of marketing. It is facilitated by a new product coordinator who has the accountability to pull all the inputs together prior to the meeting and facilitate the new product meeting. In this meeting, the milestone schedules are reviewed on all new products. Where new products have fallen behind schedule, action plans are established to get them back on schedule. Changes to schedules are approved and all new products entering the process are then checked against the appropriate business filters. Performance to plan in terms of schedules (launches/ gates, milestones on-time) also are measured and used as inputs to the total resources required to accomplish the new product plan. The outputs of this new product review meeting are the new family plans (figure 4), the dashboard (figure 5), and issues arising out of the new product plans that need to be resolved, along with all the assumptions and risks documented. The new family plans are graphical presentations of the demand plan, supply plan, and the resultant inventory plan for all the new products. This provides senior management the visibility into the aggregate amount of new products, and helps them to determine whether there is enough “new” coming along to support the business plan. The dashboard typically is a trafficlight color-coded graphical view of all the new products in terms of schedule and resource requirements. Green indicates the product is on or ahead of schedule, and the resources needed for development are available. Yellow represents a potential problem with either the schedule or the resources needed in the future. Red warns that the schedule is in jeopardy, the resources are not available to support this project, and/or that the launch date will not be met. The outputs from the new product review meeting provide the inputs for other steps in the S&OP process. For example, one set of the output is used in the demand meeting for inclusion in the demand plan. The demand plan is a statement of the total demand on the company for all products, both existing and new. A second use is for the senior management sales and operations planning meeting (called the management business review) where New Product Review Meeting figure 3

the data and information is either approved, or if there are issues with the schedule or the required resources, action plans are defined to resolve the potential conflicts. The product management review meeting of the sales and operations planning process establishes a valid achievable product development plan across all products that is balanced to available resources and where the exceptions are recognized and managed. The third article in this series will address the demand meeting where a valid demand plan for both existing and new products is developed. Strategic management July 07 Businessexcellence 13 John E. Schorr, a principal with Oliver Wight, has been with the company since 1979. For several years, he served as president of Oliver Wight International. He is recognized as one of the leading experts in the areas of sales & operations planning (S&OP) and the interface of purchasing with ERP. Prior to joining Oliver Wight, John worked for two Class A companies and was involved in the implementation of MRP II at both: Haworth, where he was vice president of manufacturing, and Steelcase, one of the leading Class A users of MRP II, where he was director of purchasing. New Product Review New Product Review figure 4 figure 5