MASTER PLANNING AND SCHEDULING a practical guide to challenges in the current and future... competitive manufacturing world.

Cover
Title Page
Copyright Page
Contents
Acknowledgments
Foreword
Introduction
	Master Planning and Scheduling as Part of Enterprise Planning Systems
	Who Should Understand Master Planning and Scheduling?
	How This Book Is Organized
Initial Thoughts
	The A’s to Z’s of Master Planning and Scheduling, Fourth Edition, 2021
Chapter 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
		Technology Assistance in the Rescheduling Process
		Implementing the Revised Master Plan and/or Master Schedule
Chapter 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
		Business Planning
		Integrated Business Planning (IBP)—Formerly Sales and Operations Planning (S&OP)
		Integrated Tactical Planning (ITP) with Emphasis on Master Planning and Scheduling—A Brief Discussion
		Master Planning and Scheduling
		Enterprise Resource Planning (ERP)
		Supply Chain Management (SCM)
	Finding the Diamond in the Rough—Why It’s Important
	The Four Cornerstones of Manufacturing Revisited
	Four Levels of Planning (Sometimes Use Only Three)
		Integrated Business Planning—Level 1 at the Corporate Level
		Master Planning/Supply Management—Level 2 at the Corporate Level
		Master Scheduling/Master Supply Scheduling—Level 3 at the Plant Level
		Detailed Production Scheduling/Shop Floor Dispatching—Level 4 at the Plant Level
	Why Master Planning and Scheduling Is a Must in Business Excellence
Chapter 3 The Mechanics of Master Planning and Scheduling
	The Importance of Master Planning and Scheduling
	The Master Planning and Scheduling Matrices
		Time Segments
		Demand Section
		Supply Section
	Master Scheduling in Action
		Computing the Projected Available Balance
		Analysis
	Why and How Master Scheduling Drives Material Requirements Planning and Detailed Scheduling
		Analysis
	The What, Why, and How of Safety Stock
		Safety Stocks as a Hedge
		What to Safety Stock
		The Mechanics of Using Safety Stocks
		Alternative Safety Stock Display Format
	Additional Material Planning Techniques
		The Planning Time Fence
		Areas of Control
	Maintaining Demand/Supply Balance Inside the Planning Time Fence
		Converting a Computer Planned Order (CPO) to a Firm Planned Order (FPO)
		The Demand Time Fence
		Time Fences (Demand vs. Supply, People Behaviors vs. Computer Behaviors)
	Master Plan and Schedule Design Criteria
		Time Criteria
		Planning Horizon
		Frequency of Review
	So, What’s Next?
Chapter 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
		Question 1: Has Demand Really Changed?
		Question 2: What Is the Impact on the Approved Supply Plan?
		Question 3: Is Capacity Available?
		Question 4: Is Material Available?
		Question 5: What Are the Costs and the Associated Risks?
		Question 6: What Is the Impact in the Marketplace?
		Question 7: What Are the Morale Consequences If the Master Plan and/or Master Schedule Is Changed?
	Answering the Six (or Seven) Questions
	Time Zones as Aids to Decision Making
		Guidelines for Establishing Zones
		Moving a Supply Order to an Earlier Date
		Management Issues
	Planning Within Master Planning and Scheduling Policy
		The Hierarchy of Change Approvals
		The Placement of Approval Zones
	No Past Dues
	Managing with Planning Time Fences
	Load-Leveling in Manufacturing
	Lean Manufacturing and Continuous Improvement
	Mixed-Model Scheduling
	Planned Plant Shutdowns
Chapter 5 Using the Master Planning and Scheduling Output for Make-to-Stock Products
	The Master Schedule Screens
		Item Information Section
		Planning Horizons Section
		Detail Data Section
	Working Make-to-Stock Master Scheduled Items
	Time Phasing the Bills-of-Material
	Understanding Exception-Driven Action Messages
		Item Information Section
		Planning Horizons Section
		The Reflection of Demand and Supply in the Details Section
	Bridging Data and Judgment
		Seeing the Big Picture
	The Seven Key Questions Revisited
	Scheduling in a World of Many Schedules
		Working the WA04 Reschedule-in Action Message
		Working the WA06 Reschedule-in Action Messages
		Working the WA06 Reschedule-Out Action Messages
	From Master Planning and Scheduling to Time-Phased Material Requirements Planning
		Item Information Section
		Planning Horizons Section
		Detail Data Section
	From Master Planning to Master Scheduling (It’s Called Master Planning and Scheduling)
Chapter 6 Where and What to Master Plan and Master Schedule
	Manufacturing Strategies Defined
		Make-to-Stock (MTS) Product Strategy
		Design-to-Order (DTO) and Engineer-to-Order (ETO) Product Strategies
		Make-to-Order (MTO) Product Strategy
		Kit-to-Order (KTO) Product Strategy
		Make-to-Contract (MTC) Product Strategy
	Choosing the Right Manufacturing Strategy
		Inventory and Capacity Requirements
		Manufacturing Strategy and Product Life Cycles
	Master Planning, Master Scheduling, and Product Structures
		The Optimal Point to Master Plan and/or Master Schedule
	Multilevel Master Planning and Scheduling
	Ensuring That Supply Plans and Schedules Are Aligned, Synchronized, and Integrated
		Disaggregating the (Approved) Aggregate Supply Plan into the Master Supply Plan
		Disaggregating the Master (Supply) Plan into the Master (Supply) Schedule
		Disaggregating the Master (Supply) Schedule into the Detailed Production Schedule
		Aggregating the Detailed Production Schedule and Tying It to the Master Schedule
		Aggregating the Master (Supply) Schedule and Tying It to the Master (Supply) Plan
		Aggregating Master (Supply) Plan and Tying It to (Approved) Aggregate Supply Plan
	Master Scheduling Capacities, Activities, and Events
Chapter 7 Scheduling in a Flow Environment
	Different Manufacturing Environments
	Similarities Between Intermittent and Flow Environments
		Business and Sales and Operations Planning
		Demand Management
		Rough Cut Capacity Planning
		Master Planning and Scheduling
		Material and Capacity Planning
		Plant and Supplier Scheduling
		Execution
	Product Definition
		Structuring Recipes for By-Products and Co-Products
		Recovered Products
		Process Sheets
		Accuracy Requirements
	The Planning Process
		Planning Capacity
		Planning Materials
	Process Company Using Rough Cut Capacity Planning: An Extended Example
		The Master Schedule Matrix
		The Material Plan Matrix
		Planning By-Products and Co-Products
	Catalysts and Recovered Material
	Production Line Scheduling
	Planning Multiplant Workloads
Chapter 8 Planning Bills
	The Overly Complex Bill-of-Material
		An Example
		Soft Seat Listens to Customers, Expands Product Offerings
	Anatomy of a Planning Bill
		Time Phasing
	Creating Demand at the Master Planning and Scheduling Level
Chapter 9 Two-Level Master Planningand Scheduling Coupled with Other Advanced Techniques
	The Backlog Curve
	Identifying Demand
		The Actual Demand Line
		The Option Forecast Line
		The Sold-Out Zone (Periods 1 Through 3 in Example)
		The Partially-Sold-Out Zone (Periods 4 Through 7 in Example) and the No Orders Zone (Period 8 in Example and Beyond in the Real World)
	Creating the Master Plan and/or Master Schedule for Products Using a Make-to-Order Manufacturing Strategy
		The Sold-Out Zone
		The Partially-Sold-Out Zone
		The No-Orders Zone
	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
Chapter 10 Using Master Planning and Scheduling Output for Make-to-Order Products
	Using Planning Bills to Simplify Option Scheduling
	The Scheduling Process
		Time-Phased Bills-of-Material
		Item Numbering System
	Master Scheduling Common Components
		Item Information Section
		Planning Horizons Section
		Detail Data Section
	Analyzing the Detail Data
	Balancing the Sold-Out Zone for Common Components
	Handling Abnormal Demand
	Action Messages
	Working the Pseudo Options
		The 1,000# Option
		The 3,000# Option
	Master Scheduling Purchased Items in the Planning Bill
	Linking the Master Plan to the Master Schedule to the Material Plan
		The MRP System
	Manufacturing Strategies—Products in the Make-to-Order Environment
Chapter 11 Master Planning and Scheduling in Custom-Product Environments
	The Unique Challenges of the DTO and ETO Environments
	The Case of New Product Introduction
		Timing New-Product Introductions
		Planning for the Impact on Existing Products
	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
		Capacity-Driven Environments
		Where and What to Master Plan and Schedule
		Capacity Master Schedules
	Make-to-Contract Environments
	The Need for Standards—A Long Time Ago
		The Standards
		Satisfying the Customer and the Standard
	When Supply Can’t Satisfy Demand
Chapter 12 Finishing or Final Assembly Scheduling
	Manufacturing Strategy Tied to Finishing/Final Assembly Schedules
	Manufacturing Strategy Approaches
		Job or Intermittent Production Environments
		Continuous Flow or Process Production Type Manufacturing Environments
		Mixed Approaches
		Other Manufacturing Issues
		Volume
		Variability in the Product Mix
		Completion Lead Time
		Manufacturing and Operational Sequencing
	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
		Product-Dependent Kanbans
		Product-Independent Kanbans
	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)
Chapter 13 Data Integrity Requirements to Support Master Planning and Scheduling
	What Is Data Integrity and Why Is It Important?
		What Is Data Integrity?
		Why Is Data Integrity Important?
	Gaining Control and Integration Points
	The Four Pillars of Data Integrity
		Education and Training
		Ownership
		Change Control
		Audits
	Applying the Four Pillars of Data Integrity in Support of Master Planning and Scheduling
		Education and Training for Master Planning and Scheduling Data Integrity Processes
		Ownership for Master Planning and Scheduling Data Integrity Processes
		Change Control for Master Planning and Scheduling Data Integrity Processes
		Audits for Master Planning and Scheduling Data Integrity Processes
	Summary
Chapter 14 Integrated Business Planning
	Integrated Business Planning Process Elements in Brief
		Strategy and Business Plan Performance
		Product Management Review—Step 1 in the IBP Process
		Demand Review—Step 2 in the IBP Process
		Supply Review—Step 3 in the IBP Process
		Financial Appraisal—Step 4a in the IBP Process and Integral Part of Each Step
		Integrated Reconciliation Review—Step 4b in the IBP Process
		Management Business Review—Step 5 in the IBP Process
	Workable, Adjustable Plans
	Master Supply Planning
	Integrated Business Planning and the Master Supply Schedule
	Synchronizing and Assessing Demand and Supply
	Measuring Accuracy and Performance
		Customer Service Performance
		Aggregate Supply Plan Performance
		Master Plan and/or Master Schedule
		Inventory and/or Backlog Plan Performance
	The Evolution of Integrated Business Planning
Chapter 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
		Evaluating the Plan
	Overloading Demonstrated and/or Planned Capacity
	Rough Cut Capacity Planning at the Master Planning and Master Scheduling Levels
		Handling Under- and Overloads
	Resource Requirements and Rough Cut Capacity Planning Graphs
	Using and Working the Rough Cut Capacity Plan
		Taking Action as a Result of Resource Requirements Planning and/or Rough Cut Capacity Planning
		Working Capacity Overloaded Situations
		Working Capacity Underloaded Situations
		Finessing the Situation with Customers
		Lot Splitting
		When Capacity Cannot Be Adjusted
	Simulations—Rough Cut Capacity Planning
	Screen and Report Formats
		Information Displayed Horizontally
		Combined Tabular/Graphic Report
		Exception Screen
	Rough Cut Capacity Planning at a Process Company (Industry Example)
	The Benefits and Limitations of Rough Cut Capacity Planning
		Benefits
		Limitations
	Implementing the Rough Cut Capacity Planning Process
	Closing Comments Regarding Resource Requirements Planning and Rough Cut Capacity Planning
Chapter 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?
Chapter 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
		Breaking Down the Forecast
	It’s About Time
		Booking Date and Product Demand Date
		Spreading the Demand Forecast by Time Period
	Demand and Forecast Adjustment
		Actual Demand
		Forecast Consumption
		Timing versus Demand Problems
		Tracking Cumulative Demand
	Customer Order Processing with Process Flow Diagram Example
	Possible Problems Caused by Abnormal Demand
		Identifying Abnormal Demand
		Accommodating Abnormal Demand
	Customer Linking
	Getting Sales Pipeline Control
	Distribution Resource/Requirements Planning
		The Mechanics of Distribution Requirements Planning
		The Impact of Distribution Center Orders on the Plant
		Distribution Requirements Planning versus Distribution Resource Planning
		Expected Results
	Available-to-Promise
	ATP with Two Demand Streams
	Should Companies Have Demand Managers?
Chapter 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)
		Diagnostic (Lay of the Land, Strengths, and Weaknesses)
		Awareness and Understanding (Initial Education and Learning)
		Journey Vision (Business Vision Using the Affinity Process)
	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
Chapter 19 The Proven Path to a Successful Master Planning and Scheduling Implementation (Phase 2)
	Methodology for Implementing Change Revisited
		The Proven Path for Business Transformation
	Phase 2: Transform Phase (Process Designing and Structuring)
		Knowledge Transfer (Business Process Education and Training Sessions)
		Baseline Assessment (Driving a Stake into the Ground Using Class A Standard)
		Apply (High-Level Process Design and Detailed Process Design)
		Master Planning and Scheduling High-Level Design Workshops Description
		The Mind Mapping Process and How It Ties to High-Level Design
		MPS High-Level Design Executive Presentation—Contents/Outline
		Description of Master Planning and Scheduling Detailed Design Workshops
	Policy, Flow Diagrams, Procedures, Work Instructions, and Metrics Defined
		Highlighting Planning and Control
		Data Management
		Process Improvement
		Software
		MPS Detailed Design Executive Presentation—Contents/Outline
		Cascading Education Responsibility Assigned, Created, Tested, and Approved
	Segue to . . .
	The Proven Path to a Successful MPS Implementation (Phase 3) Users Own MPS Launch and Measures
Chapter 20 The Proven Path to a Successful Master Planning and Scheduling Implementation (Phase 3)
	Methodology for Implementing Change Revisited—Again!
		The Proven Path for Business Transformation with Master Planning and Scheduling
	Phase 3: Own Phase (Launching and Measuring)
		Cascading Education (Users Understand That Education and Training Never End)
		Implement (as the Old Saying Goes, It’s Time to Jump into the Water)
		Assess Progress (Is the Company on Track to Achieving Documented Goals and Results?)
		Accuracy and Performance Goals
		Accuracy and Performance Measurements
		Transition (Old Behaviors, Nonintegrated Processes, Inept Tools, and Inaccurate Data Records Left Behind)
		Embed (Business Is Operating Using the Newly Implemented Approach)
		Sustain (Behaviors Changed, Processes Solid, Tools Working, Integrity in Data)
		Mature (Continuous Improvement Ensures Implementation Accepted)
		Realize Value (Comparison to Initial Benefit/Cost Analysis, Return-on- Investment, Five-Year Cash Flow, and Class A Milestone Attainment and/or Class A Recognition)
	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
		Master (Supply) Planner List of Responsibilities or Position Description
		Master (Supply) Scheduler’s List of Responsibilities or Position Description
	Putting It All Together to Ensure Success—Guaranteed
		The Class A Standard for a Successful Master Planning and Scheduling Implementation
		The Proven Path for a Successful Master Planning and Scheduling Implementation
		The Dedicated Teams for a Successful Master Planning and Scheduling Implementation
	An Aggressive Master Plan and Schedule for the MPS Implementation
	The Variables of a Master Planning and Scheduling Implementation
		Managing Work, Timing, and Resources for a Successful Master Planning and Scheduling Implementation
		A Book Summary
Epilogue Order from Chaos
Final Thoughts People and Process and Profession
Appendix A Master Planning and Scheduling Process and Performance Standards
	Internal Supply Planning (Definitions 5 and 6)
Appendix B Master Planning and Scheduling Improvement Initiative Task Listing
Appendix C Master Planning and Scheduling Policy, Procedure, and Flow Diagram
Appendix D Master Planning and Scheduling
	Approved By
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
Glossary
Index