Description
Book SynopsisTable of Contents Acknowledgments xxiii
Foreword xxix
Introduction xxxi
Initial Thoughts xxxix
1 Chaos in Manufacturing 1
Problems in Manufacturing 2
And the Solutions 7
Getting Out of the Overloaded Master Plan and/or Master Schedule 16
Rescheduling the Overloaded Master Plan and/or Master Schedule 19
2 Why Master Planning and Scheduling 25
The Four Cornerstones of a Manufacturing Business 25
Between Strategy and Execution 27
What Is a Master Plan versus a Master Schedule? 31
Maximizing, Minimizing, and Optimizing 32
Objectives of Master Planning and Scheduling (If You Don’t Know Where You’re Going, Any Road Will Get You There) 33
Challenges for the Master Planner and Master Scheduler 35
Principles of Master Planning and Scheduling 37
MPS, MRPII, ERP, SCM, and ITP 39
Finding the Diamond in the Rough—Why It’s Important 58
The Four Cornerstones of Manufacturing Revisited 67
Four Levels of Planning (Sometimes Use Only Three) 68
Why Master Planning and Scheduling Is a Must in Business Excellence 74
3 The Mechanics of Master Planning and Scheduling 79
The Importance of Master Planning and Scheduling 79
The Master Planning and Scheduling Matrices 80
Master Scheduling in Action 87
Why and How Master Scheduling Drives Material Requirements Planning and Detailed Scheduling 92
The What, Why, and How of Safety Stock 99
Additional Material Planning Techniques 103
Maintaining Demand/Supply Balance Inside the Planning Time Fence 107
Master Plan and Schedule Design Criteria 113
So, What’s Next? 115
4 Managing the Supply Chain with Master Planning and Scheduling 117
The Master Planner’s and Master Scheduler’s Job 119
Exception-Driven Action Messages 125
Six (Sometimes Seven) Key Questions to Answer 129
Answering the Six (or Seven) Questions 133
Time Zones as Aids to Decision Making 134
Planning Within Master Planning and Scheduling Policy 138
No Past Dues 141
Managing with Planning Time Fences 142
Load-Leveling in Manufacturing 147
Lean Manufacturing and Continuous Improvement 150
Mixed-Model Scheduling 151
Planned Plant Shutdowns 154
5 Using the MPS Output for Make-to-Stock Products 159
The Master Schedule Screens 160
Working Make-to-Stock Master Scheduled Items 168
Time Phasing the Bills-of-Material 170
Understanding Exception-Driven Action Messages 172
Bridging Data and Judgment 180
The Seven Key Questions Revisited 184
Scheduling in a World of Many Schedules 185
From Master Planning and Scheduling to Time-Phased Material Requirements Planning 194
From Master Planning to Master Scheduling (It’s Called Master Planning and Scheduling) 199
6 Where and What to Master Plan and Master Schedule 203
Manufacturing Strategies Defined 204
Choosing the Right Manufacturing Strategy 206
Master Planning, Master Scheduling, and Product Structures 210
Multilevel Master Planning and Scheduling 213
Ensuring That Supply Plans and Schedules Are Aligned, Synchronized, and Integrated 216
Master Scheduling Capacities, Activities, and Events 224
7 Scheduling in a Flow Environment 227
Different Manufacturing Environments 228
Similarities Between Intermittent and Flow Environments 232
Product Definition 236
The Planning Process 239
Process Company Using Rough Cut Capacity Planning: An Extended Example 244
Catalysts and Recovered Material 250
Production Line Scheduling 251
Planning Multiplant Workloads 252
8 Planning Bills 255
The Overly Complex Bill-of-Material 257
Anatomy of a Planning Bill 266
Creating Demand at the Master Planning and Scheduling Level 271
9 Two-Level MPS Coupled with Other Advanced Techniques 277
The Backlog Curve 277
Identifying Demand 281
Creating the Master Plan and/or Master Schedule for Products Using a Make-to-Order Manufacturing Strategy 288
Option Overplanning 292
Calculating Projected Available Balance for Pseudo Items 294
Calculating Available-to-Promise 295
Using Available-to-Promise to Commit Customer Orders 297
Changes in Projected Available Balance 303
Option Overplanning for Products in the Make-to-Stock Environment 305
Master Planning and Scheduling Products in Make-to-Stock and Make-to-Order Environments: A Comparison 309
10 Using MPS Output for Make-to-Order Products 313
Using Planning Bills to Simplify Option Scheduling 315
The Scheduling Process 317
Master Scheduling Common Components 321
Analyzing the Detail Data 325
Balancing the Sold-Out Zone for Common Components 326
Handling Abnormal Demand 328
Action Messages 330
Working the Pseudo Options 330
Master Scheduling Purchased Items in the Planning Bill 341
Linking the Master Plan to the Master Schedule to the Material Plan 346
Manufacturing Strategies—Products in the Make-to-Order Environment 350
11 Master Planning and Scheduling in Custom-Product Environments 355
The Unique Challenges of the DTO and ETO Environments 356
The Case of New Product Introduction 358
Master Planning and Scheduling—Activities and Events 363
Prices and Promises to Keep 367
What Can Go Wrong 368
Integrating Design and Operation Activities 370
Plan Down, Replan Up 373
Make-to-Contract Environments 381
The Need for Standards—A Long Time Ago 382
When Supply Can’t Satisfy Demand 386
12 Finishing or Final Assembly Scheduling 389
Manufacturing Strategy Tied to Finishing/Final Assembly Schedules 389
Manufacturing Strategy Approaches 391
Traditional Means of Communicating the Master Plan and/or Master Schedule 395
The Role of People and Computers in Finishing and Final Assembly Scheduling—Past, Present, and Future 397
The Kanban System 399
Tying It All Together (Aggregate Integrated Business Planning Through Master Planning and Scheduling Through Detailed Production Scheduling) 403
Final Assembly or Process Routings 406
Configuring and Building to a Customer Order 408
Finishing or Final Assembly Combined Materials and Operations List 411
Choosing the Most Effective Approach 413
Master Plans versus Master Schedules versus Finishing Schedules 414
Master Scheduling Logistics (Sharing In/Out Information) 415
13 Data Integrity Requirements to Support Master Planning and Scheduling 417
What Is Data Integrity and Why Is It Important? 418
Gaining Control and Integration Points 422
The Four Pillars of Data Integrity 425
Applying the Four Pillars of Data Integrity in Support of Master Planning and Scheduling 438
Summary 452
14 Integrated Business Planning 455
Integrated Business Planning Process Elements in Brief 457
Workable, Adjustable Plans 466
Master Supply Planning 468
Integrated Business Planning and the Master Supply Schedule 470
Synchronizing and Assessing Demand and Supply 481
Measuring Accuracy and Performance 487
The Evolution of Integrated Business Planning 495
15 Resource Requirements Planning and Rough Cut Capacity Planning 499
Know Before You Go 500
Rough Cut Revealed 502
The Rough Cut Process 502
Creating the Resource Profile 505
Finalizing the Resource Profile 512
Capacity Inputs 514
Overloading Demonstrated and/or Planned Capacity 520
Rough Cut Capacity Planning at the Master Planning and Master Scheduling Levels 522
Resource Requirements and Rough Cut Capacity Planning Graphs 529
Using and Working the Rough Cut Capacity Plan 533
Simulations—Rough Cut Capacity Planning 538
Screen and Report Formats 540
Rough Cut Capacity Planning at a Process Company (Industry Example) 543
The Benefits and Limitations of Rough Cut Capacity Planning 551
Implementing the Rough Cut Capacity Planning Process 554
Closing Comments Regarding Resource Requirements Planning and Rough Cut Capacity Planning 555
16 Supply Management and Aggregate Master Planning 559
Supply Management and Master Planning in Action 565
The Impact of New Product in Supply Management and Master Planning 567
Inventory Projection and Planning 572
Will the Plan Work? 575
Product-Driven, Disaggregated Inventory Planning 577
Product-Driven, Aggregated Backlog Planning 579
Product-Driven, Disaggregated Backlog Planning 585
Production-Driven Environments 589
Reviewing and Approving the Aggregate Supply Plan 591
Interplant Product Integration 592
Key Performance Metrics—Calculations, Colors, Standards 597
Should Companies Have Supply Managers and/or Master Planners? 598
17 Demand Management and Aggregate Master Planning 603
What Is Demand Management? 603
The Impact of New Product in Demand Management 608
Master Launch Plan and Pipeline Funnel Examples for New Products 609
Problems with the Demand Forecast 614
The Impact of Demand Bias on Supply Chain Management 615
Coping with Forecast Inaccuracies 617
Reviewing and Approving the Aggregate Demand Plan 619
It’s About Quantities 621
It’s About Time 623
Demand and Forecast Adjustment 631
Customer Order Processing with Process Flow Diagram Example 637
Possible Problems Caused by Abnormal Demand 640
Customer Linking 642
Getting Sales Pipeline Control 645
Distribution Resource/Requirements Planning 646
Available-to-Promise 655
ATP with Two Demand Streams 659
Should Companies Have Demand Managers? 663
18 The Proven Path to a Successful MPS Implementation (Phase 1) 669
From the Original Implementation Plan to the Current Proven Path 669
The Proven Path to Successful Operational Excellence 671
The Decision Point 673
Going on the Air 675
The Former Proven Path to Master Planning and Scheduling in a Class A Operational Excellence Environment 676
The Journey to Excellence—Today and Tomorrow 679
Oliver Wight’s Class A Integrated Planning and Control Milestone 681
The Proven Path (3rd Version) to Successful Supply Chain Management and Master Planning and Scheduling Implementation 683
Phase 1: Lead Phase (Understanding and Committing) 685
Company Vision of Operations (A Modified Client Example) 687
Case for Change (A Modified Excerpt from a Client Example) 696
Segue to . . . 702
The Proven Path to a Successful MPS Implementation (Phase 2) Influencers Transform MPS Process Design and Structure 702
19 The Proven Path to a Successful MPS Implementation (Phase 2) 705
Methodology for Implementing Change Revisited 705
Phase 2: Transform Phase (Process Designing and Structuring) 707
Policy, Flow Diagrams, Procedures, Work Instructions, and Metrics Defined 731
Segue to . . . 741
The Proven Path to a Successful MPS Implementation (Phase 3) Users Own MPS Launch and Measures 741
20 The Proven Path to a Successful MPS Implementation (Phase 3) 743
Methodology for Implementing Change Revisited—Again! 743
Phase 3: Own Phase (Launching and Measuring) 745
Deterrents to Successful Implementation of the Master Planning and Scheduling Process and Supporting System Technology 762
The Master Planner’s and Master Scheduler’s List of Responsibilities 764
Putting It All Together to Ensure Success—Guaranteed 768
An Aggressive Master Plan and Schedule for the MPS Implementation 771
The Variables of a Master Planning and Scheduling Implementation 774
Epilogue
Order from Chaos 779
Final Thoughts – People and Process and Profession 783
Appendix A Master Planning and Scheduling Process and Performance Standards 809
Appendix B Master Planning and Scheduling Improvement Initiative Task Listing 817
Appendix C Master Planning and Scheduling Policy, Procedure, and Flow Diagram 827
Appendix D Master Planning and Scheduling 831
Appendix E Supply Chain Management Overall Process Flow Diagram (An Example) 843
Appendix F Master Planning and Scheduling Process Flow Diagram Examples 845
Appendix G Master Planning and Scheduling RACI Examples 851
Appendix H Master Planning and Scheduling Spinoff Task Team Charter 855
Appendix I Master Planning and Scheduling Oliver Wight International Offerings Founders’ and Co-Authors’ Biographies 859
Glossary 865
Index 895
