Ross stands and begins to talk before everyone in the group is seated. "Earlier, I indicated that the management team, and especially the general manager, should expect to be able to answer some questions: Are we on schedule, on cost, and on scope with our product development projects? How are we performing to our strategic initiatives?"

He tells the group that in order to answer those questions, a couple of considerations need to be reviewed and discussed in designing the flow of the monthly sales and operations planning process.

"Excuse me," Peter Newfeld, the product development/engineering director, interrupts. "Before we get into that, Ross, how many days should it take for the process cycle each month?"

"There is not an absolutely correct answer to your question, Peter," Ross replies. He explains that the process needs to be completed within one month. The earlier in the month the cycle can be completed, the better. The earlier the process is completed, the more time it provides to implement changes to the current plan. This additional time may also allow more choices in the decision-making process.

If the process cycle time is shorter, the data are more current when reviewed at the executive sales and operations planning meeting. Shorter process cycle times enable the management team to concentrate on the entire planning horizon instead of just the current month.

"An interesting phenomenon takes place when the executive sales and operations planning meeting is held close to the end of the month," Ross says.