Integrated Planning Models

To plan and monitor execution, a number of interconnected models are required.  For a manufacturer these models can be viewed as follows: 

At the centre of the execution system is the Value Chain Model that shows the relationship between activities, resources and outcomes for 'business as usual'. I.e. what is likely to happen if the organisation continues on its current course within the forecast business environment.  Its primary aim is to support the allocation of resources and provide an assessment of whether the resources allocated represent good value.  This is done by contrasting expenditure with activity and the results being achieved.

Supporting this model could be a number of optimization models that can be used to enhance the effectiveness of resources for a particular activity.  Examples include those that optimize sales with production (more commonly known as Sales & Operational Planning), and the logistics involved in delivering products to customers.

The Strategy Improvement Model works with the Value Chain Model to identify those activities that can be improved, and the resources involved.  These models are typically fed by transaction and supporting BI systems to provide actual results for comparative purposes.  For example, the general ledger and HR systems can be used to supply actual costs consumed, while an invoicing or CRM system can be used to supply actual revenue figures.

These models can be combined to create specialized reporting models.  For example, a cash flow model 

CorPeuM Benefit

CorPeuM provides a multi-cube architecture that enables the building of different models from standard components.  These models automatically interact with each other and can be embellished with non-dimensional information such as supplier and customer payment terms that can then be used in reporting and analyses.