Master Planning and Scheduling: An Essential Guide to Competitive Manufacturing

Description: Master Planning and Scheduling by John F. Proud, Eric Deutsch Discover the practical, real-world advantages of the Oliver Wight master planning and scheduling methodology. The newly revised Fourth Edition of Master Planning and Scheduling: An Essential Guide to Competitive Manufacturing delivers a masterful exploration of todays master planning and scheduling techniques, as well as an insightful discussion of the future of the master planning and scheduling processes and profession. Written in the context of an ever-evolving digital environment and augmented with new and critical information required to implement best practices, the book is a guide for practitioners and leaders on the principles of master planning and scheduling and its application in modern and future work environments. In this book, readers will learn: Insights regarding top-down, bottom-up, and side-to-side integration of business practices in support of a companys strategic direction and tactical deploymentThe critical link between time-phased integrated business planning, master planning, master scheduling, capacity planning, and material planning"How-to" details and examples to support master planning and scheduling implementation and enhancements within the companys demand and supply organizations Master Planning and Scheduling is an indispensable guide for supply chain professionals, planners and schedulers in all functional domains of a business. It also belongs on the bookshelves of any executive or manager who seeks to improve their understanding of best practice planning and scheduling processes and how those processes enable a business to outperform the competition through alignment, integration and synchronization across all functions in an organization. FORMAT Hardcover CONDITION Brand New Back Cover Motivating Principles for Success (MPS) A Dozen Tips to Practice During a Class A Journey A Passion for the Company, Customers and Suppliers Success Respect for Leadership and Management as well as the Individual Commitment to Teamwork and the Team and Companys Success Trust Amongst All Members of Our Companys Teams Team Members Continue to Earn the Right to Being a Team Player Team Members Care for Each Other and Cover Each Others Back Open and Honest Communication Within the Entire Organization Enthusiasm for the Company and Team Missions Everyone Does What They Say They Are Going to Do There is No Fear of Failure, Only Opportunity for Success Class A in Everything the Team and Individual Members Do Commitment to Results Doesnt End Until Team Vision Is Realized Flap Motivating Principles for Success (MPS) A Dozen Tips to Practice During a Class A Journey A Passion for the Company, Customers and Suppliers Success Respect for Leadership and Management as well as the Individual Commitment to Teamwork and the Team and Companys Success Trust Amongst All Members of Our Companys Teams Team Members Continue to Earn the Right to Being a Team Player Team Members Care for Each Other and Cover Each Others Back Open and Honest Communication Within the Entire Organization Enthusiasm for the Company and Team Missions Everyone Does What They Say They Are Going to Do There is No Fear of Failure, Only Opportunity for Success Class A in Everything the Team and Individual Members Do Commitment to Results Doesnt End Until Team Vision Is Realized Author Biography JOHN F. PROUD is a business advisor with Oliver Wight. Throughout his career, Mr. Proud has enjoyed collaborating with several large companies, from Lockheed Martin and Boeing to Weyerhaeuser and Starbucks. He has educated and consulted throughout the USA as well as around the free world. Numerous companies under his leadership and coaching have implemented supply chain management including master planning and scheduling best practice principles for more than 50 years. Mr. Proud was a recipient of Whos Who Albert Nelson Marquis Lifetime Achievement Award in 2021 and will be listed in Whos Who in America in 2022. ERIC DEUTSCH is a business advisor with Oliver Wight, working with companies to implement and improve their integrated business planning processes. He has an academic background and career experience in the biotech industry and, since starting his consulting practice, has worked across many industries to coach and advise clients through transformational change. In addition to advising clients, he is a member of the Oliver Wight Board of Directors, and teaches the Oliver Wight Master Planning and Scheduling Course offered publicly several times per year. Table 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 Dont Know Where Youre 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 Its 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, Whats Next? 115 4 Managing the Supply Chain with Master Planning and Scheduling 117 The Master Planners and Master Schedulers 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 (Its 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 Cant 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 Its About Quantities 621 Its 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 Wights 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 Planners and Master Schedulers 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 Details ISBN111980941X Publisher John Wiley & Sons Inc Series The Oliver Wight Companies Year 2022 ISBN-10 111980941X ISBN-13 9781119809418 Format Hardcover Edition 4th Imprint John Wiley & Sons Inc Place of Publication New York Country of Publication United States Pages 960 Publication Date 2022-02-04 UK Release Date 2022-02-04 NZ Release Date 2021-12-02 Subtitle An Essential Guide to Competitive Manufacturing Author Eric Deutsch Edition Description 4th edition Replaces 9780471757276 DEWEY 658.4012 Audience Professional & Vocational US Release Date 2022-02-04 AU Release Date 2021-12-06 We've got this At The Nile, if you're looking for it, we've got it. 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