Master Scheduling: A Practical Guide to Competitive Manufacturing(16 The Oliver Wight Companies)

Table of Contents:
Acknowledgments xii Foreword xvii Introduction xix 1 Chaos in Manufacturing 1 Problems in Manufacturing 3 Symptoms of Master Scheduling Problems 3 The Inaccurate Forecast 4 And the Solutions 7 The Case of the Overloaded Master Schedule 12 Getting Out of the Overloaded Master Schedule 17 2 Why Master Scheduling? 23 Between Strategy and Execution 25 What Is the Master Schedule? 29 Maximizing, Minimizing, and Optimizing 30 The Challenge for the Master Scheduler 31 MPS, MRPII, ERP, and SCM 33 Enterprise Resource Planning 39 Supply Chain Management 41 Where Have All the Orders Gone? 42 The Four Cornerstones of Manufacturing Revisited 45 So, Why Master Scheduling? 46 3 The Mechanics of Master Scheduling 49 The Master Schedule Matrix 50 Master Scheduling in Action 57 How Master Scheduling Drives Material Planning 63 The What, Why, and How of Safety Stock 71 Planning Time Fence 75 Demand Time Fence 80 Master Schedule Design Criteria 82 4 Managing with the Master Schedule 85 The Master Scheduler’s Job 88 Moving a Customer Order to an Earlier Date 90 Action and Exception Messages 93 Six Key Questions to Answer 97 Answering the Six Questions 100 Time Zones as Aids to Decision Making 101 Moving a Manufacturing Order to an Earlier Date 103 Planning Within Policy 106 No Past Dues 109 Managing with Planning Time Fences 109 Load- Leveling in Manufacturing 115 Lean Manufacturing and Continuous Improvement 118 Mixed- Model Scheduling 119 Planned Plant Shutdowns 123 The Production Shutdown 125 5 Using the MPS Output in a Make- to-Stock Environment 129 The Master Schedule Screen 130 Working a Make- to-Stock Master Schedule 137 Time Phasing the Bill- of-Material 140 Understanding the Action Messages 142 Bridging Data and Judgment 149 Seasonality and Inventory Buildup 151 The Six Key Questions Revisited 154 Scheduling in a World of Many Schedules 154 From Master Scheduling to Material Requirements Planning 164 6 What to Master Schedule 171 Manufacturing Strategies 172 Choosing the Right Strategy 174 Master Scheduling and Product Structures 177 Multilevel Master Scheduling 180 Tying the Master Schedule and the Production Plan Together 182 Master Scheduling Capacities, Activities, and Events 184 7 Scheduling in a Flow Environment 186 Different Manufacturing Environments 188 Similarities between Intermittent and Flow Environments 191 Product Definition 196 The Planning Process 200 An Extended Example 206 Catalysts and Recovered Material 211 Line Scheduling 213 8 Planning Bills 216 The Overly Complex Bill- of-Material 218 Anatomy of a Planning Bill 227 Creating Demand at the Master Schedule Level 232 Restructuring Company Bills into Planning Bills: A Case Study 233 9 Two- Level MPS and Other Advanced Techniques 240 The Backlog Curve 240 Scheduling and the Backlog Curve Zones 244 Identifying Demand 244 Creating the Master Schedule in a Make- to-Order Environment 251 Option Overplanning 255 Calculating Projected Available Balance 258 Calculating Available- to-Promise 259 Using ATP to Commit Customer Orders 260 Option Overplanning in the Make- to-Stock Environment 267 Master Scheduling in Make- to-Order and Make- to-Stock Environments: A Comparison 271 10 Using MPS Output in a Make- to-Order Environment 274 Using Planning Bills to Simplify Option Scheduling 276 The Scheduling Process 278 The Common- Items Master Schedule 282 Analyzing the Detail Data 287 Balancing the Sold- Out Zone for Common Items 288 Handling Abnormal Demand 290 Action Messages 292 Working the Pseudo Options 293 Master Scheduling a Purchased Item in the Planning Bill 304 Linking Master Schedule and Material Plan 310 11 Master Scheduling in Custom- Product Environments 315 The Unique Challenges of the ETO Environment 316 The Case of New- Product Introductions 318 Master Scheduling Activities and Events 320 Launching a New Product 321 Prices and Promises to Keep 326 What Can Go Wrong 327 Integrating Design and Operation Activities 328 Plan Down, Replan Up 332 Capacity- Driven Environments 336 Make- to-Contract Environments 341 The Need for Standards 342 When Supply Can’t Satisfy Demand 346 12 Finishing Schedules 348 Manufacturing Strategy and Finishing Schedules 349 Manufacturing Approaches 350 Other Manufacturing Issues 353 Sequencing 354 Traditional Means of Communicating the Schedule 355 Do We Really Need These Computers? 356 The Kanban System 357 Tying It All Together 361 Final Assembly or Process Routings 365 Confi guring and Building to a Customer Order 367 Finishing or Final Assembly Combined Materials and Operations List 370 Choosing the Most Effective Approach 372 Finishing Schedules versus Master Schedules 373 13 Sales and Operations Planning 375 Workable, Adjustable Plans 378 S&OP and the Master Schedule 380 The Case of S&OP at AutoTek 381 Synchronizing Demand and Supply 394 14 Rough Cut Capacity Planning 400 Know Before You Go 401 Rough Cut Revealed 402 The Rough Cut Process 403 Creating Resource Profi les 406 Finalizing the Resource Profi le 412 Capacity Inputs 413 Overloading Demonstrated Capacity 419 Rough Cut at the Master Scheduling Level 421 Working the Rough Cut Capacity Plan 428 What- If Analysis and Rough Cut Capacity Planning 433 Screen and Report Formats 435 The Limitations and Benefits of Rough Cut Capacity Planning 438 Implementing the Rough Cut Process 440 Final Thoughts 442 15 Supply Management 445 Supply Management in Action 450 Product- Driven, Aggregated Inventory Planning 452 Will the Plan Work? 456 Product- Driven, Disaggregated Inventory Planning 458 Product- Driven, Aggregated Backlog Planning 462 Product- Driven, Disaggregated Backlog Planning 467 Production- Driven Environments 471 Interplant Integration 473 Should Companies Have Supply Managers? 478 16 Demand Management 482 What Is Demand Management? 482 The Role of Forecasting in the Company: The Case of Hastings & Brown 485 Problems with Forecasting 488 Coping with Forecast Inaccuracies 488 It’s about Quantities 489 It’s about Time 491 Small Numbers and the Master Schedule 494 Demand and Forecast Adjustment 495 Computer Alert 499 The Problem of Abnormal Demand 502 Customer Linking 504 Getting Pipeline Control 507 Distribution Resource/Requirements Planning 509 Multiplant Communications 516 Tell Us What You Want, and We’ll Do the Rest, Sir 518 Available- to-Promise 519 ATP with Two Demand Streams 522 Should Companies Have Demand Managers? 526 17 Effective Implementation 531 Proven Path to Successful Operational Excellence 532 The Decision Point 534 Going on the Air 535 The Path to Master Scheduling Implementation 536 Stage 1: Evaluation and Preparation 538 Master Scheduling Vision Statement (A Sample) 541 Stage 2: Design and Action 546 Business Meeting Agenda (A Sample) 548 Master Scheduling Policy (A Sample) 553 Master Schedule Procedure Action Message Review (A Sample) 554 Stage 3: Launch and Cutover 557 Who’s in Control of the Software? 558 Deterrents to Successful Implementation of the Master Scheduling Process 565 The Master Scheduler’s List of Responsibilities 566 Master Scheduler Position Description 567 Epilogue Order from Chaos 570 Appendix A Class A Master Scheduling Process and Performance Checklists 573 Appendix B Master Scheduling Sample Implementation Task List 581 Appendix C Master Scheduling Policy, Procedure, and Flow Diagram Listing 593 Appendix D Master Scheduling Sample Process Flow Diagram 596 Glossary 598 Index 637

About the Author :
John F. Proud is a Principal of Oliver Wight Americas, Inc., where he consults with a variety of companies and leads courses on master scheduling and integrated demand-driven supply chain management. He is also a contributing author to the ABCD Checklist for Operational Excellence from Wiley.