Activity Integrated Business Planning

 INTEGRATED BUSINESS PLANNING (IBP)

Student’S name: Alejandro Sánchez Villanueva

Answer the following study guide questions.



What is “Integrated Business Planning” (IBP)?

Is a strategy for connecting the functions of each department in a organization to identify operations and strategy with the financial performance.

What is “Sales and Operations Planning” (S&OP)?

Is a process that helps us provide better customer service, lower inventory, shorter lead times, more stable production rates, better overall business management control, and an organization-wide team building mechanism for high direction.

What are the similarities between IBP and S&OP? Mention and describe them.

While S&OP processes tend to support medium-term planning horizons that rarely extend beyond 18 months, IBP naturally has a longer time scale that readily aligns with long-term strategic planning, as well as supporting short- and medium-term operational requirements.

What are the differences between IBP and S&OP? Mention and describe them.

S&OP

  • Supply chain modeling and scenario planning.
  • Siloed system derives decisions with to or little disaggregation.
  • Volume oriented demand and supply balancing

IBP

  • Financial impact analysis and planning including risks and opportunities evaluation.
  • Extended to collaborate beyond the “4 walls”
  • Sponsored by exec management and driven by the commercial and/or finance organization.

How does the IBP process work? Describe in detail.

• Stage 1: Having no shared goals.

• Stage 2: Creating an operational volume plan.

• Stage 3: Balancing supply and demand in end-to-end supply chain.

• Stage 4: Creating a demand-driven profitable supply response.

• Stage 5: Coordinating enterprise and network decision making to create value.

What are the challenges of IBP?

• Considerer business goals

• Business language instead of supply chain KPI.

• Include project management to maximize the business impact of new product introduction.

• Attract major customers and suppliers.

Which are the most common difficulties/problems when implementing IBP? Mention them and provide examples.

There is not one owner of demand (or supply)

Demand is expressed in different units of measure and at different levels of aggregation. There is no systematic process for evaluation and validation. There is little insight in the building blocks of the demand, causing lack of insight in changes to the demand.

What are the advantages and disadvantages of IBP?

Advantages:

• Streamline the quality of analysis.

• Anticipate decision making.

• Better coordinate departments

• Optimize control variables.

Disadvantages

• Difficult data collection.

• Not always accurate in data collection.

What is the importance of IBP nowadays?

In today’s fast-changing world, the IBP process brings the necessary nimbleness to the organization to cope with and address business challenges.

Comentarios

  1. Iván Martínez22 de julio de 2021, 9:37 p.m.

    Hello Alejandro, I also consider that your advantages and disadvantages are quite successful at the IBP, excellent work.

    ResponderBorrar

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