Master Planning and Scheduling: An Essential Guide to Competitive Manufacturing, 4th Edition

Cover
Table of Contents
Praise for Master Planning and Scheduling — the Book, the Process, the Results!
Title Page
Copyright
Dedication
Oliver Wight Supply Chain Management Book Series
Acknowledgments
Foreword
Introduction: The Master of All Detailed Supply Plans and Schedules (Below-the-Line)
    Master Planning and Scheduling as Part of Enterprise Planning Systems
    Who Should Understand Master Planning and Scheduling?
    How This Book Is Organized
    Notes
Initial Thoughts: People and Process and Profession
    The A's to Z's of Master Planning and Scheduling, Fourth Edition, 2021
1 Chaos in Manufacturing
    Problems in Manufacturing
    And the Solutions
    Getting Out of the Overloaded Master Plan and/or Master Schedule
    Rescheduling the Overloaded Master Plan and/or Master Schedule
    Note
2 Why Master Planning and Scheduling
    The Four Cornerstones of a Manufacturing Business
    Between Strategy and Execution
    What Is a Master Plan versus a Master Schedule?
    Maximizing, Minimizing, and Optimizing
    Objectives of Master Planning and Scheduling (If You Don't Know Where You're Going, Any Road Will Get You There)
    Challenges for the Master Planner and Master Scheduler
    Principles of Master Planning and Scheduling
    MPS, MRPII, ERP, SCM, and ITP
    Finding the Diamond in the Rough—Why It's Important
    The Four Cornerstones of Manufacturing Revisited
    Four Levels of Planning (Sometimes Use Only Three)
    Why Master Planning and Scheduling Is a Must in Business Excellence
    Notes
3 The Mechanics of Master Planning and Scheduling
    The Importance of Master Planning and Scheduling
    The Master Planning and Scheduling Matrices
    Master Scheduling in Action
    Why and How Master Scheduling Drives Material Requirements Planning and Detailed Scheduling
    The What, Why, and How of Safety Stock
    Additional Material Planning Techniques
    Maintaining Demand/Supply Balance Inside the Planning Time Fence
    Master Plan and Schedule Design Criteria
    So, What's Next?
    Notes
4 Managing the Supply Chain with Master Planning and Scheduling
    The Master Planner's and Master Scheduler's Job
    Exception‐Driven Action Messages
    Six (Sometimes Seven) Key Questions to Answer
    Answering the Six (or Seven) Questions
    Time Zones as Aids to Decision Making
    Planning Within Master Planning and Scheduling Policy
    No Past Dues
    Managing with Planning Time Fences
    Load‐Leveling in Manufacturing
    Lean Manufacturing and Continuous Improvement
    Mixed‐Model Scheduling
    Planned Plant Shutdowns
    Note
5 Using the Master Planning and Scheduling Output for Make‐to‐Stock Products
    The Master Schedule Screens
    Working Make‐to‐Stock Master Scheduled Items
    Time Phasing the Bills‐of‐Material
    Understanding Exception‐Driven Action Messages
    Bridging Data and Judgment
    The Seven Key Questions Revisited
    Scheduling in a World of Many Schedules
    From Master Planning and Scheduling to Time‐Phased Material Requirements Planning
    From Master Planning to Master Scheduling (It's Called Master Planning and Scheduling)
    Notes
6 Where and What to Master Plan and Master Schedule
    Manufacturing Strategies Defined
    Choosing the Right Manufacturing Strategy
    Master Planning, Master Scheduling, and Product Structures
    Multilevel Master Planning and Scheduling
    Ensuring That Supply Plans and Schedules Are Aligned, Synchronized, and Integrated
    Master Scheduling Capacities, Activities, and Events
    Notes
7 Scheduling in a Flow Environment
    Different Manufacturing Environments
    Similarities Between Intermittent and Flow Environments
    Product Definition
    The Planning Process
    Process Company Using Rough Cut Capacity Planning: An Extended Example
    Catalysts and Recovered Material
    Production Line Scheduling
    Planning Multiplant Workloads
    Notes
8 Planning Bills
    The Overly Complex Bill‐of‐Material
    Anatomy of a Planning Bill
    Creating Demand at the Master Planning and Scheduling Level
    Note
9 Two‐Level Master Planningand Scheduling Coupled with Other Advanced Techniques
    The Backlog Curve
    Identifying Demand
    Creating the Master Plan and/or Master Schedule for Products Using a Make‐to‐Order Manufacturing Strategy
    Option Overplanning
    Calculating Projected Available Balance for Pseudo Items
    Calculating Available‐to‐Promise
    Using Available‐to‐Promise to Commit Customer Orders
    Changes in Projected Available Balance
    Option Overplanning for Products in the Make‐to‐Stock Environment
    Master Planning and Scheduling Products in Make‐to‐Stock and Make‐to‐Order Environments: A Comparison
    Notes
10 Using Master Planning and Scheduling Output for Make‐to‐Order Products
    Using Planning Bills to Simplify Option Scheduling
    The Scheduling Process
    Master Scheduling Common Components
    Analyzing the Detail Data
    Balancing the Sold‐Out Zone for Common Components
    Handling Abnormal Demand
    Action Messages
    Working the Pseudo Options
    Master Scheduling Purchased Items in the Planning Bill
    Linking the Master Plan to the Master Schedule to the Material Plan
    Manufacturing Strategies—Products in the Make‐to‐Order Environment
    Notes
11 Master Planning and Scheduling in Custom‐Product Environments
    The Unique Challenges of the DTO and ETO Environments
    The Case of New Product Introduction
    Master Planning and Scheduling—Activities and Events
    Prices and Promises to Keep
    What Can Go Wrong
    Integrating Design and Operation Activities
    Plan Down, Replan Up
    Make‐to‐Contract Environments
    The Need for Standards—A Long Time Ago
    When Supply Can't Satisfy Demand
    Notes
12 Finishing or Final Assembly Scheduling
    Manufacturing Strategy Tied to Finishing/Final Assembly Schedules
    Manufacturing Strategy Approaches
    Traditional Means of Communicating the Master Plan and/or Master Schedule
    The Role of People and Computers in Finishing and Final Assembly Scheduling—Past, Present, and Future
    The Kanban System
    Tying It All Together (Aggregate Integrated Business Planning Through Master Planning and Scheduling Through Detailed Production Scheduling)
    Final Assembly or Process Routings
    Configuring and Building to a Customer Order
    Finishing or Final Assembly Combined Materials and Operations List
    Choosing the Most Effective Approach
    Master Plans versus Master Schedules versus Finishing Schedules
    Master Scheduling Logistics (Sharing In/Out Information)
    Notes
13 Data Integrity Requirements to Support Master Planning and Scheduling
    What Is Data Integrity and Why Is It Important?
    Gaining Control and Integration Points
    The Four Pillars of Data Integrity
    Applying the Four Pillars of Data Integrity in Support of Master Planning and Scheduling
    Summary
    Notes
14 Integrated Business Planning
    Integrated Business Planning Process Elements in Brief
    Workable, Adjustable Plans
    Master Supply Planning
    Integrated Business Planning and the Master Supply Schedule
    Synchronizing and Assessing Demand and Supply
    Measuring Accuracy and Performance
    The Evolution of Integrated Business Planning
    Notes
15 Resource Requirements Planning and Rough Cut Capacity Planning
    Know Before You Go
    Rough Cut Revealed
    The Rough Cut Process*
    Creating the Resource Profile
    Finalizing the Resource Profile
    Capacity Inputs
    Overloading Demonstrated and/or Planned Capacity
    Rough Cut Capacity Planning at the Master Planning and Master Scheduling Levels
    Resource Requirements and Rough Cut Capacity Planning Graphs
    Using and Working the Rough Cut Capacity Plan
    Simulations—Rough Cut Capacity Planning
    Screen and Report Formats
    Rough Cut Capacity Planning at a Process Company (Industry Example)
    The Benefits and Limitations of Rough Cut Capacity Planning
    Implementing the Rough Cut Capacity Planning Process
    Closing Comments Regarding Resource Requirements Planning and Rough Cut Capacity Planning
    Notes
16 Supply Management and Aggregate Master Planning
    Supply Management and Master Planning in Action
    The Impact of New Product in Supply Management and Master Planning
    Inventory Projection and Planning
    Will the Plan Work?
    Product‐Driven, Disaggregated Inventory Planning
    Product‐Driven, Aggregated Backlog Planning
    Product‐Driven, Disaggregated Backlog Planning
    Production‐Driven Environments
    Reviewing and Approving the Aggregate Supply Plan
    Interplant Product Integration
    Key Performance Metrics—Calculations, Colors, Standards
    Should Companies Have Supply Managers and/or Master Planners?
    Notes
17 Demand Management and Aggregate Master Planning
    What Is Demand Management?
    The Impact of New Product in Demand Management
    Master Launch Plan and Pipeline Funnel Examples for New Products
    Problems with the Demand Forecast
    The Impact of Demand Bias on Supply Chain Management
    Coping with Forecast Inaccuracies
    Reviewing and Approving the Aggregate Demand Plan
    It's About Quantities
    It's About Time
    Demand and Forecast Adjustment
    Customer Order Processing with Process Flow Diagram Example
    Possible Problems Caused by Abnormal Demand
    Customer Linking
    Getting Sales Pipeline Control
    Distribution Resource/Requirements Planning
    Available‐to‐Promise
    ATP with Two Demand Streams
    Should Companies Have Demand Managers?
18 The Proven Path to a Successful Master Planning and Scheduling Implementation (Phase 1)
    From the Original Implementation Plan to the Current Proven Path
    The Proven Path to Successful Operational Excellence
    The Decision Point
    Going on the Air
    The Former Proven Path to Master Planning and Scheduling in a Class A Operational Excellence Environment
    The Journey to Excellence—Today and Tomorrow
    Oliver Wight's Class A Integrated Planning and Control Milestone
    The Proven Path (3rd Version) to Successful Supply Chain Management and Master Planning and Scheduling Implementation
    Phase 1: Lead Phase (Understanding and Committing)
    Size of Gap (Comparison between Vision and Diagnostic Findings)
    Value Opportunity (Benefit/Cost Analysis, ROI, Five‐Year Cash Flow)
    Prioritize (High Priority—Just Do It, Low Priority—Some Other Time)
    Case for Change (Diagnostic, Journey and Operational Vision, Gap Analysis, Benefit/Cost Analysis, Return‐on‐Investment, Five‐Year Cash Flow, Recommended Company Priority)
    Organization for Change (Steering Committee, Project Team, Spinoff Task Forces)
    Milestone Planning (Macro Project Plan—Tasks, Responsibility, Dates)
    Point of Commitment (Go/No‐Go Decision)
    Segue to …
    The Proven Path to a Successful MPS Implementation (Phase 2) Influencers Transform MPS Process Design and Structure
    Notes
19 The Proven Path to a Successful Master Planning and Scheduling Implementation (Phase 2)
    Methodology for Implementing Change Revisited
    Phase 2: Transform Phase (Process Designing and Structuring)
    Policy, Flow Diagrams, Procedures, Work Instructions, and Metrics Defined
    Segue to …
    The Proven Path to a Successful MPS Implementation (Phase 3) Users Own MPS Launch and Measures
    Notes
20 The Proven Path to a Successful Master Planning and Scheduling Implementation (Phase 3)
    Methodology for Implementing Change Revisited—Again!
    Phase 3: Own Phase (Launching and Measuring)
    Deterrents to Successful Implementation of the Master Planning and Scheduling Process and Supporting System Technology
    The Master Planner's and Master Scheduler's List of Responsibilities
    Putting It All Together to Ensure Success—Guaranteed
    An Aggressive Master Plan and Schedule for the MPS Implementation
    The Variables of a Master Planning and Scheduling Implementation
Epilogue: Order from Chaos
Final Thoughts: People and Process and Profession
    WHY THESE FINAL THOUGHTS NEEDED TO BE WRITTEN IN THE FOURTH EDITION OF THIS MPS BOOK
    PLANNING ADVANCEMENTS IN THE LAST 50 YEARS OF THE PAST CENTURY
    PLANNING ADVANCEMENTS IN THE PAST 20 YEARS OF THIS CENTURY
    A LOOK AT MASTER PLANNING AND SCHEDULING IN THE PAST TWO DECADES
    ANTICIPATED TECHNOLOGY ADVANCEMENTS IN THE NEXT 10 TO 20 YEARS
    THE ROLE OF ARTIFICIAL INTELLIGENCE IN SUPPLY CHAIN MANAGEMENT IN THE 2020S AND 2030S
    MACHINES (COMPUTERS AND ROBOTS) DOING TASKS PEOPLE ONCE DID
    INTEGRATING THE SUPPLY CHAIN
    MASTER PLANNING AND SCHEDULING: PEOPLE AND PROCESS AND PROFESSION
    MULTITASKING SUPPORTED BY TECHNOLOGY IS THE NEW MASTER PLANNING AND SCHEDULING ROLE
    WHY THESE FINAL THOUGHTS WERE NECESSARY TO PUT ON THE MPS TABLE
    Notes
Appendix A: Master Planning and Scheduling Process and Performance Standards
    MASTER PLANNING AND SCHEDULING AS PART OF BUSINESS EXCELLENCE
    MANAGING INTERNAL SUPPLY (CHAPTER 8 IN THE OLIVER WIGHT CLASS A STANDARD FOR BUSINESS EXCELLENCE)
    MASTER PLANNING AND SCHEDULING AS PART OF PLANNING AND CONTROL INTERNAL SUPPLY MODEL (DEFINITIONS 8.3 AND 8.4 IN THE OLIVER WIGHT CLASS A PLANNING AND CONTROL MILESTONE WORKBOOK)
    Note
Appendix B: Master Planning and Scheduling Improvement Initiative Task Listing
Appendix C: Master Planning and Scheduling Policy, Procedure, and Flow Diagram
    POLICY LISTING FOR CONSIDERATION (ALPHABETICAL ORDER)
    PROCEDURE LISTING FOR CONSIDERATION (ALPHABETICAL ORDER)
    FLOW DIAGRAMS LISTING FOR CONSIDERATION (ALPHABETICAL ORDER)
Appendix D: Master Planning and Scheduling
    MASTER PLANNING AND SCHEDULING POLICY INCLUDING SUBPOLICIES (AN EXAMPLE)
    MASTER PLANNING AND SCHEDULING PAST‐DUE SUPPLY POLICY (AN EXAMPLE)
Appendix E: Supply Chain Management Overall Process Flow Diagram (An Example)
Appendix F: Master Planning and Scheduling Process Flow Diagram Examples
Appendix G: Master Planning and Scheduling RACI Examples
Appendix H: Master Planning and Scheduling Spinoff Task Team Charter
Appendix I: Master Planning and Scheduling Oliver Wight International OfferingsFounders’ and Co‐Authors’ Biographies
    OLIVER WIGHT BIOGRAPHY (FOUNDER OF OLIVER WIGHT EDUCATION ASSOCIATES)
    WALT GODDARD BIOGRAPHY (OLIVER WIGHT'S PARTNER AND CONFIDANT)
    JOHN F. PROUD BIOGRAPHY (CO‐AUTHOR OF MASTER PLANNING AND SCHEDULING)
    ERIC DEUTSCH BIOGRAPHY (CO‐AUTHOR OF MASTER PLANNING AND SCHEDULING)
    Note
Glossary
Index
End User License Agreement