Master Planning and Scheduling E-Book

John F. Proud

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Serie: Oliver Wight Manufacturing
• Sprache: Englisch

Seitenzahl: 1548

Veröffentlichungsjahr: 2021

Beschreibung

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 today's 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 company's strategic direction and tactical deployment * The 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 company's 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.

Leseprobe

Table of Contents

Cover

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

List of Illustrations

Chapter 1

Figure 1.1 Symptoms of Master Planning and Scheduling Problems

Figure 1.2 Case Example of Forecast Accuracy

Figure 1.3 Balancing Supply and Demand

Figure 1.4 The Sawtooth Curves

Figure 1.5 Dampening Supply and Demand Fluctuations

Figure 1.6 The Overloaded Master Plan and/or Master Schedule with Past‐Due O...

Figure 1.7 The Overloaded Master Plan and/or Master Schedule with Orders Rol...

Figure 1.8 Past‐Due Master Plan and/or Master Schedule

Figure 1.9 Overloaded Master Schedule

Figure 1.10 A Poor Strategy to Correct the Overloaded Master Plan and/or Mas...

Figure 1.11 An Acceptable Strategy to Correct the Overloaded Master Plan and...

Chapter 2

Figure 2.1 Using Vision and Competence to Connect the Cornerstones

Figure 2.2 Middle Management as a Decoupler

Figure 2.3 Master Planning and Scheduling as a Buffer Between Demand Forecas...

Figure 2.4 Big‐Little Wheel and Whip Analogies

Figure 2.5 The Real World—Varying Demand versus Desired Supply

Figure 2.6 Manufacturing Resource Planning (MRPII)

Figure 2.7 Enterprise Resource Planning (ERP)

Figure 2.8 Integrating the Business (Top to Bottom, Bottom to Top, Side to S...

Figure 2.9 Tying Master Planning and Scheduling (MPS) to Integrated Tactical...

Figure 2.10 You Can't Control the Detail If You Haven't Planned the Detail...

Figure 2.11 Master Planning and Scheduling the Near‐to‐Intermediate Time Fra...

Figure 2.12 Integrated Tactical Planning the Near‐to‐Intermediate Time Frame...

Figure 2.13 Supply Chain Management (SCM)

Figure 2.14 Integrating the Functions of the Diamond

Figure 2.15 Lose the Diamond in the Rough—Drop into a Big Black Hole

Figure 2.16 Integrating Elements of the Manufacturing Business

Figure 2.17a Supply Planning at the Aggregate Levels

Figure 2.17b Supply Planning at the Detailed Levels

Figure 2.18 Supply Planning at the Aggregate Levels as Well as the Detailed ...

Figure 2.19 Planning Without Master Planning and Scheduling

Chapter 3

Figure 3.1 The Master Schedule Matrix

Figure 3.2 Flashlight Product Structure

Figure 3.3 Flashlight Master Schedule Matrix Example

Figure 3.4 Flashlight Master Schedule Matrix with CPO

Figure 3.5 Master Schedule Linked to Material Requirements Planning

Figure 3.6 The MRP Matrix—Light Subassemblies

Figure 3.7 Safety Stock Example

Figure 3.8 Same Example After Shifting Supply Orders

Figure 3.9 Planning Time Fence Example

Figure 3.10 Demand Time Fence Example

Figure 3.11 Time Fencing Impacts in Master Planning and Scheduling

Chapter 4

Figure 4.1a Exception‐Driven Action Messages Example

Figure 4.1b Handling Exception‐Driven Action Messages (Main Flow)

Figure 4.2 Rescheduling Time Zones

Figure 4.3 Master Planning and Scheduling Change Gap Analysis

Figure 4.4 Time Zones and Approval Policy Example

Figure 4.5 Handling Past Dues (Main Flow)

Figure 4.6 Managing with Planning Time Fences

Figure 4.7 MPS for A3 Units, with Increased Demand in Time Period 4

Figure 4.8 Demand and Supply Management Time Fence

Figure 4.9 Load‐Leveling

Figure 4.10 A Naive Approach to Load‐Leveling

Figure 4.11 Load‐Leveling by Time Blocks

Figure 4.12 Value‐Adding and Non‐Value‐Adding Operations

Figure 4.13 Weekly Production Schedule for Golf Carts

Figure 4.14 Tennant Company Transition from Traditional Economic Order Quant...

Figure 4.15 Plant Shutdown Planning

Figure 4.16 Plant Shutdown Planning with Artificial Demand

Chapter 5

Figure 5.1 Sample Master Scheduling Screens

Figure 5.2 WA01 Winch Multilevel Bill‐of‐Material

Figure 5.3 Time‐Phased Bill‐of‐Material

Figure 5.4 Master Schedule Screen, Winch WA01

Figure 5.5 Supply Deficit Turns to Supply Surplus

Figure 5.6 Master Schedule Screen, Winch WA04

Figure 5.7 Winch Schedule by Operation

Figure 5.8 Master Schedule Screen, Winch WA06

Figure 5.9 Material Requirements Planning Screen, Carriage Assembly (A100)

Figure 5.10 Supply Chain Management Levels of Planning

Chapter 6

Figure 6.1 Strategies to Meet the Customer

Figure 6.2 Product Life Cycles

Figure 6.3 Product Structure Shapes

Figure 6.4 Master Planning and Scheduling Terminology

Figure 6.5 Supply Chain Management Planning Levels

Chapter 7

Figure 7.1 The Job Shop Environment

Figure 7.2 The Flow Manufacturing Environment

Figure 7.3 Job Shop versus Continuous Flow

Figure 7.4 The Planning and Control Process

Figure 7.5 Single Product and Upside‐Down Bills‐of‐Material...

Figure 7.6 Routings versus Process Sheets

Figure 7.7 Master Schedule for Grape Jelly and Material Plan for Grape Mash...

Figure 7.8 Material Plan for a By‐Product or Co‐Product

Figure 7.9 Material Plan for a Catalyst or Recovered Ingredient

Figure 7.10 Line Schedules

Figure 7.11 Using a Planning Bill to Assist in Plant Selection

Chapter 8

Figure 8.1 Standard Manufacturing Configurations

Figure 8.2 Options Availability for Hypothetical Product

Figure 8.3 Effect of Master Planning and Scheduling One Level Down in the Pr...

Figure 8.4 Sample Planning Bill

Figure 8.5 Planning Bill with Percentages of Options

Figure 8.6 Soft Seat Planning Bill for Options and Common Items

Figure 8.7 Time‐Phased Bill for the Conference Center Chair Product Family...

Figure 8.8 Planning Bill for the Conference Center Chair Product Family

Figure 8.9 Planning Bill with Unique Options Structured into Common Items

Figure 8.10 Dynoline Gas‐Fuel Turbine Engine Time‐Phased Bill‐of‐Material...

Figure 8.11 Product Family Fuel System

Figure 8.12 Indented Bill for Gas Turbine Engine

Chapter 9

Figure 9.1 The Backlog Curve by Product Family

Figure 9.2 Backlog for the Conference Center Chair Product Family

Figure 9.3 Soft Seat Backlog Curve

Figure 9.4 MPS Matrix, Red Option Items (50 percent probability)

Figure 9.5 Complete Master Plan and/or Master Schedule for Conference Center...

Figure 9.6 Complete Master Plan and/or Master Schedule for Conference Center...

Figure 9.7 Make‐to‐Stock Product Structures for Stocked Finished Items A and...

Figure 9.8 Planning Bills for Unique Components in Product Structures A and ...

Figure 9.9 Master Plan and Schedule for Products A and B as well as Pseudo I...

Chapter 10

Figure 10.1 Winch Product Comparison

Figure 10.2 Winch Product Family Planning Bill

Figure 10.3 Time‐Phased Common Items Planning Bill

Figure 10.4 Time‐Phased 3,000# Option Planning Bill

Figure 10.5 Significant Item Numbering System (WXYY)

Figure 10.6 Customer Order Entry Screen

Figure 10.7 Master Schedule Screen, Common Components

Figure 10.8 Master Schedule Screen, 1,000# Option

Figure 10.9 Master Schedule Screen, 3,000# Option

Figure 10.10 Master Schedule Screen, 4 fpm Gearbox

Figure 10.11 Material Requirements Planning Screen, 3001 Winding Assembly

Figure 10.12 Manufacturing Strategies Under Make‐to‐Order Umbrella...

Figure 10.13 Time‐Phased Common Components Planning Bill Linked to Lead‐Time...

Figure 10.14 Time‐Phased 3000# Option Planning Bill Linked to Lead‐Time Redu...

Chapter 11

Figure 11.1 Tasks of Manufacturing Strategies Compared

Figure 11.2 Introduction of a New Product (in Time Period 3)

Figure 11.3 Bill‐of‐Activities for Special Hoist

Figure 11.4 Loading and Scheduling the Activities

Figure 11.5 Effects of Scheduling Delays

Figure 11.6 Engineering and Manufacturing Dependent Relationship

Figure 11.7 Design and Manufacturing Activities Planning Using a Common Mast...

Figure 11.8 Plan and Replan Example

Figure 11.9 Two Different Scheduling Environments

Figure 11.10 Capacity Matrix

Figure 11.11 Master Schedule Matrix for Drilling

Figure 11.12 Matrix Showing Required Capacities

Figure 11.13 MTC Master Plan and/or Master Schedule, Missiles, Level‐Loaded...

Figure 11.14 MTC Master Plan and/or Master Schedule, Missiles, Build Ahead

Figure 11.15 MTC Master Plan and/or Master Schedule, Missiles, Line Closing ...

Chapter 12

Figure 12.1 Finishing or Final Assembly Schedules for Products Made Using a ...

Figure 12.2 Job and Flow Manufacturing

Figure 12.3 Manual Scheduling Board

Figure 12.4 Product‐Dependent Kanban Example

Figure 12.5 Product‐Dependent Kanban System at Work

Figure 12.6 Product‐Independent Kanban System Example

Figure 12.7 Planning Bills When Colored Chair Seats Are Not Stocked

Figure 12.8 New or Restructured Planning Bill

Figure 12.9 Final Assembly and Subassembly Routings

Figure 12.10 Generic Conference Center Chair Routing Attached to Common Item...

Figure 12.11 Red Conference Center Chair Planning Bill‐of‐Material...

Figure 12.12 Finishing or Final Assembly Materials for Conference Center Cha...

Figure 12.13 Finishing or Final Assembly Routing for Conference Center Chair

Figure 12.14 Final Assembly (and Subassembly) Combined Materials and Operati...

Chapter 13

Figure 13.1 Examples of Data Required to Support Master Planning and Schedul...

Figure 13.2 The Business Impact of Poor versus Class A Data Integrity Enviro...

Figure 13.3 The Integrated Business Planning and Integrated Planning and Con...

Figure 13.4 The Four Pillars of Data Integrity

Figure 13.5 Examples of Roles and Responsibilities within a Data Integrity P...

Figure 13.6 Supply Chain Master Data Integrity (Static) Ownership RACI Examp...

Figure 13.7 Change Control Models

Figure 13.8 Change Control Process

Figure 13.9 Probability and Impact Quad Chart Example

Figure 13.10 Education for a Data Integrity Program in Support of Master Pla...

Figure 13.11 Training for a Data Integrity Program in Support of Master Plan...

Figure 13.12 MPS Specific Data Integrity Ownership RACI Example

Figure 13.13 Pareto Chart

Figure 13.14 A3 Form Components

Figure 13.15 RACI Diagram with Audit Frequency

Figure 13.16 Supporting Data Audit Questions

Chapter 14

Figure 14.1 The Integrated Business Planning Model

Figure 14.2 Strategy Deployment and Alignment

Figure 14.3 Product Portfolio Planning

Figure 14.4 Demand Planning Horizons and Objectives

Figure 14.5 Scope of Supply Management in the Supply Review

Figure 14.6 Finance's Role in Integrated Business Planning

Figure 14.7 Gap Management Approach

Figure 14.8 Some Fundamental Questions Answered Through Integrated Business ...

Figure 14.9 Integrated Business Planning and Other Company Functions

Figure 14.10 Four Levels of Planning

Figure 14.11 Master Planning and Scheduling at Each Level

Figure 14.12 Demand and Supply Plans, Stocked Muffler Family

Figure 14.13 Recalculation of Demand, Supply, and Inventory

Figure 14.14 Demand and Supply Plans, Customized Muffler Family

Figure 14.15 Demand and Supply Plans, Including Inventory, Backlog, and Ship...

Figure 14.16 Synchronization of Demand, Supply, and Inventory

Figure 14.17 Inventory Projection in Days of Inventory

Figure 14.18 Inventory Projection in Dollars

Figure 14.19 Resource Requirements Plan

Figure 14.20 Resource Requirements Plan/Rough Cut Capacity Plan

Figure 14.21 Measurement Tolerances

Figure 14.22 Customer Service Performance Measures

Figure 14.23 Perfect Order Index

Figure 14.24 Aggregate Supply Plan Performance

Figure 14.25 Inventory Plan Performance

Figure 14.26 Sales and Operations Planning (S&OP) versus Integrated Business...

Chapter 15

Figure 15.1 Resource Requirements and/or Rough Cut Capacity Planning Process

Figure 15.2 Critical or Key Resources Worksheet

Figure 15.3 Resource Profile by Product Family (per 1,000 Units)

Figure 15.4 Two‐Level Bill‐of‐Material and Timeline Illustrations: Lead‐Time...

Figure 15.5 Aggregate Supply Plan

Figure 15.6 Resource Requirements or Rough Cut Required Capacity

Figure 15.7 Required Capacity versus Planned Capacity

Figure 15.8 Overloading the Master Plan and Schedule

Figure 15.9 Resource Requirements and Rough Cut Capacity Planning and Operat...

Figure 15.10 Resource Profile by MPS Item (Per 1,000 Units)

Figure 15.11 Master Schedule for July

Figure 15.12 Rough Cut Capacity Plan by MPS Item

Figure 15.13 Resource Requirements Plan in Support of Integrated Business Pl...

Figure 15.14 Resource Requirements Plan / Rough Cut Capacity Plan at IBP Lev...

Figure 15.15 Rough Cut Capacity Plan at Master Planning and Scheduling (MPS)...

Figure 15.16 Modified Supply Plan, Product Family C

Figure 15.17 Revised Rough Cut Capacity Plan

Figure 15.18 Horizonal Format, Rough Cut Capacity Plan Screen

Figure 15.19 Combined Tabular and Graphic Screen

Figure 15.20 Rough Cut Capacity Plan Exception Screen

Figure 15.21 Processed Foods Resource Requirements Plan (sometimes referred ...

Figure 15.22 Scenario Planning Including Recommendations

Figure 15.23 Differences Between Resource Requirements Planning, Rough Cut C...

Chapter 16

Figure 16.1 Enterprise Resource Planning Coupling Supply Management with Mas...

Figure 16.2 Integrated Business Planning—Lightning Computer Company

Figure 16.3 Planning Network for Quantum Computers (Multiple Plant Environme...

Figure 16.4a Master Product Launch Plan for New Products

Figure 16.4b Integrated Business Model with Emphasis on Product Launch

Figure 16.5 New Product Pipeline with Financials

Figure 16.6 Potential Customer Pipeline

Figure 16.7 Quantum Computers Supply Plan Calculations (Aggregated Inventory...

Figure 16.8 Quantum Computers Supply Plan (Product‐Driven, Aggregated Invent...

Figure 16.9 Beginning Inventories for Quantum Computers

Figure 16.10 Desired Ending Inventories for Quantum Computers

Figure 16.11 Quantum Computers Supply Plan (Disaggregated Inventory Planning...

Figure 16.12 Quantum Computers Supply Plan (Disaggregated Inventory Planning...

Figure 16.13 Phaser Computers (Multiple Plant Environment—Make‐to‐Order)...

Figure 16.14 Phaser Computers Supply Plan Calculations

Figure 16.15 Phaser Computers Supply Plan (Aggregated Backlog Planning)

Figure 16.16 Beginning Backlog for Phaser Computers

Figure 16.17 Desired Ending Backlog for Phaser Computers

Figure 16.18 Phaser Computers Supply Plan Calculations

Figure 16.19 Product‐Driven, Disaggregated Backlog Planning

Figure 16.20 Quantum Computer's Supply Plan (Inventory Planning)

Figure 16.21 Tying the Approved Supply Plan to Integrated Business Planning ...

Figure 16.22 Interplant Demand and Supply

Figure 16.23 Interplant Master Schedule and Material Requirements Planning

Figure 16.24 The Role of the Supply Manager and/or Master (Supply) Planner

Chapter 17

Figure 17.1a Product Launch Plans Affect Demand and Master (Supply) Planning

Figure 17.1b Integrated Business Model with Emphasis on Product Launch

Figure 17.2 New Product Pipeline Affects Demand and Master (Supply) Planning

Figure 17.3 Customer Pipeline Affects Demand and Master (Supply) Planning

Figure 17.4 Demand Bias Affects Master Planning and Scheduling

Figure 17.5 Tying the Approved Demand Plan to Integrated Business Planning a...

Figure 17.6 Demand Management Includes a Formal Demand Plan

Figure 17.7 Demand Forecast for the Two‐Product Company

Figure 17.8 Deskmate Secretarial Chair Product Family

Figure 17.9 Demand Bookings versus Shipment Demand

Figure 17.10 Using a Planning Bill to Disaggregate Volume Plan(s) into Mix P...

Figure 17.11 Various Planning Strategies Used in MPS

Figure 17.12 Aggregate Demand Forecast of 400 Spread Over Time

Figure 17.13 Consumption of the Demand Forecast

Figure 17.14 Rolling the Demand Forecast

Figure 17.15 Tracking Cumulative Demand

Figure 17.16 Converging Deviation from Demand Forecast Over Time

Figure 17.17 Customer Order Processing Flow

Figure 17.18 Treatment of Abnormal Demand

Figure 17.19 Distribution Resource Planning

Figure 17.20 Typical and Improved Pipelines

Figure 17.21 Customer and Supplier Information Flow (in Today's World, Produ...

Figure 17.22 Distribution Scheme and Planning Tools, MEC

Figure 17.23 Distribution Resource Planning Linkages, Item 247

Figure 17.24 Transportation Plan, Chicago Distribution Center

Figure 17.25 Projected Available Balance and Available‐to‐Promise, Pen Manu...

Figure 17.26 Available‐to‐Promise, Period‐by‐Period, and Cumulative‐by‐Perio...

Figure 17.27 Available‐to‐Promise with Two Demand Streams

Figure 17.28 Available‐to‐Promise with Two Demand Streams After Accepting P...

Figure 17.29 Available‐to‐Promise Using MPS Allocation by Percentage...

Figure 17.30 The Role of the Demand Manager or Demand Planner

Chapter 18

Figure 18.1 The Oliver Wight Operational Excellence Proven Path

Figure 18.2 (a) Class A Checklists, 4th and 5th editions (criteria for Class...

Figure 18.3 The Proven Path to Effectively Implementing Master Planning and ...

Figure 18.4a The Oliver Wight Business Maturity Map

Figure 18.4b The Oliver Wight Maturity Transition for Planning and Control

Figure 18.5 The Oliver Wight Proven Path to Business Transformation

Figure 18.6 The Oliver Wight Proven Path Emphasizing Lead Phase

Figure 18.7 Benefit/Cost Analysis

Chapter 19

Figure 19.1 The Oliver Wight Proven Path for Business Excellence

Figure 19.2 The Proven Path Emphasizing the Transform Phase

Figure 19.3 Business Meeting Agenda (a Sample)

Figure 19.4 Areas That Require Policies and Procedures

Figure 19.5 Approval Policy for Master Planning and Scheduling Changes by Pr...

Figure 19.6 Master Planning and Scheduling Mind Map Example

Figure 19.7 Master Planning and Scheduling Mind Map Explosion Example

Figure 19.8 Rough Cut Capacity Mind Map

Figure 19.9 Material Requirements Planning Mind Map

Chapter 20

Figure 20.1 Highlighted Own Phase on The Proven Path

Figure 20.2 Accuracy and Performance Measurements Process Flow Example

Figure 20.3 Oliver Wight's Class A Criteria to Class A Results

Figure 20.4 Oliver Wight's Proven Path to Class A Results

Figure 20.5 Oliver Wight's Recommended Organization Structure to Class A Res...

Figure 20.6 The Working Gears of a Successful MPS Implementation

Figure 20.7 Principles to Practice During a Class A Implementation

2

Figure FT.1 Seventy Years of Supply Chain Planning and Control

Figure FT.2 Master Planning and Scheduling in the Next Two Decades

Figure FT.3 Technology Advancements' Impact on Master Planning and Schedulin...

Figure FT.4 Technology Advancements' Impact on Master Planning and Schedulin...

Figure FT.5 The Path Forward for Master Planning and Scheduling

4

Figure B.1 The Proven Path Highlighting Approval Milestones

Figure B.2 Master Planning and Scheduling Improvement Initiative Task Plan

7

Figure E.1 Supply Chain Management Highlighting Master (Planning and) Schedu...

8

Figure F.1 Master Scheduling—Main Flow Monthly (an Example)

Figure F.2 Master Scheduling—Weekly Flow (an Example)

Figure F.3 Master Scheduling—Tying Detailed Production Schedule to Master Sc...

Figure F.4 Master Planning—Tying Master Plan and/or Master Schedule to Integ...

9

Figure G.1 Master Planning and Scheduling RACI (An Example)

Figure G.2 Rough Cut Capacity Planning RACI (An Example)

10

Figure H.1 Master Planning and Scheduling Improvement Initiative Team Charte...

11

Figure I.1 Oliver Wight's Offerings and Capabilities

Guide

Cover Page

Table of Contents

Praise for Leadership Is a Relationship

Title Page

Copyright

Dedication

Oliver Wight Supply Chain Management Book Series

Acknowledgments

Foreword

Introduction

Initial Thoughts

Begin Reading

Epilogue

Final Thoughts

Appendix A

Appendix B

Appendix C

Appendix D

Appendix E

Appendix F

Appendix G

Appendix H

Appendix I

Glossary

Index

End User License Agreement

Pages

i

ii

iii

vii

viii

ix

xi

xii

xxiii

xxiv

xxv

xxvi

xxvii

xxix

xxx

xxxi

xxxii

xxxiii

xxxiv

xxxv

xxxvi

xxxvii

xxxix

xl

xli

xlii

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

51

52

53

54

55

56

57

58

59

60

61

62

63

64

65

66

67

68

69

70

71

72

73

74

75

76

77

78

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

100

101

102

103

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

120

121

122

123

124

125

126

127

128

129

130

131

132

133

134

135

136

137

138

139

140

141

142

143

144

145

146

147

148

149

150

151

152

153

154

155

156

157

158

159

160

161

162

163

164

165

166

167

168

169

170

171

172

173

174

175

176

177

178

179

180

181

182

183

184

185

186

187

188

189

190

191

192

193

194

195

196

197

198

199

200

201

203

204

205

206

207

208

209

210

211

212

213

214

215

216

217

218

219

220

221

222

223

224

225

226

227

228

229

230

231

232

233

234

235

236

237

238

239

240

241

242

243

244

245

246

247

248

249

250

251

252

253

254

255

256

257

258

259

260

261

262

263

264

265

266

267

268

269

270

271

272

273

274

275

276

277

278

279

280

281

282

283

284

285

286

287

288

289

290

291

292

293

294

295

296

297

298

299

300

301

302

303

304

305

306

307

308

309

310

311

313

314

315

316

317

318

319

320

321

322

323

324

325

326

327

328

329

330

331

332

333

334

335

336

337

338

339

340

341

342

343

344

345

346

347

348

349

350

351

352

353

354

355

356

357

358

359

360

361

362

363

364

365

366

367

368

369

370

371

372

373

374

375

376

377

378

379

380

381

382

383

384

385

386

387

389

390

391

392

393

394

395

396

397

398

399

400

401

402

403

404

405

406

407

408

409

410

411

412

413

414

415

416

417

418

419

420

421

422

423

424

425

426

427

428

429

430

431

432

433

434

435

436

437

438

439

440

441

442

443

444

445

446

447

448

449

450

451

452

453

455

456

457

458

459

460

461

462

463

464

465

466

467

468

469

470

471

472

473

474

475

476

477

478

479

480

481

482

483

484

485

486

487

488

489

490

491

492

493

494

495

496

497

499

500

501

502

503

504

505

506

507

508

509

510

511

512

513

514

515

516

517

518

519

520

521

522

523

524

525

526

527

528

529

530

531

532

533

534

535

536

537

538

539

540

541

542

543

544

545

546

547

548

549

550

551

552

553

554

555

556

557

559

560

561

562

563

564

565

566

567

568

569

570

571

572

573

574

575

576

577

578

579

580

581

582

583

584

585

586

587

588

589

590

591

592

593

594

595

596

597

598

599

600

601

603

604

605

606

607

608

609

610

611

612

613

614

615

616

617

618

619

620

621

622

623

624

625

626

627

628

629

630

631

632

633

634

635

636

637

638

639

640

641

642

643

644

645

646

647

648

649

650

651

652

653

654

655

656

657

658

659

660

661

662

663

664

665

666

667

668

669

670

671

672

673

674

675

676

677

678

679

680

681

682

683

684

685

686

687

688

689

690

691

692

693

694

695

696

697

698

699

700

701

702

703

705

706

707

708

709

710

711

712

713

714

715

716

717

718

719

720

721

722

723

724

725

726

727

728

729

730

731

732

733

734

735

736

737

738

739

740

741

743

744

745

746

747

748

749

750

751

752

753

754

755

756

757

758

759

760

761

762

763

764

765

766

767

768

769

770

771

772

773

774

775

776

777

779

780

781

783

784

785

786

787

788

789

790

791

792

793

794

795

796

797

798

799

800

801

802

803

804

805

806

807

808

809

810

811

812

813

814

815

817

818

819

820

821

822

823

824

825

826

827

828

829

830

831

832

833

834

835

836

837

838

839

840

841

843

844

845

846

847

848

849

851

852

853

855

856

857

858

859

860

861

862

863

864

865

866

867

868

869

870

871

872

873

874

875

876

877

878

879

880

881

882

883

884

885

886

887

888

889

890

891

892

893

895

896

897

898

899

900

901

902

903

904

905

906

907

908

909

910

911

912

913

914

915

916

917

918

Praise for Master Planning and Scheduling — the Book, the Process, the Results!

Past and Present

Be at your best when your best is needed!

“The overarching driver for supply planning and supply scheduling is the master planning and scheduling set of processes. This is covered in depth in the best book ever written on the subject, Master Scheduling (Proud 2013). Suffice to say that the term master says it all—it is the master of all other detailed supply plans and schedules. Master Planning and Scheduling is the fourth edition of the very successful Master Scheduling book (originally released in 1994).”

—Rod Hozack, Stuart Harman, Todd Ferguson, and Dawn Howarth, authors of Integrated Tactical Planning, Oliver Wight International, Inc.

“In Master Planning and Scheduling, authors Proud and Deutsch bring us both the science and the art of integrated planning and day‐to‐day execution—application based on sound theory—written in a clear and straightforward way. The vital role of master planning and scheduling in a holistic, effective, and efficient planning and execution environment is brought to life in a real‐world and compelling fashion. This book is a comprehensive resource for the education, design, implementation, and measurement of best‐practice supply chain processes to support sustainable value creation and enduring competitive advantage.”

—Bob Hirschey, president, Oliver Wight Americas, Inc. and former vice president, strategic planning, cellulose fibers, Weyerhaeuser Company

“Planning together, as one team … a novel concept that is too frequently overlooked. The work here by Proud and Deutsch reinforces the fact that planning together is imperative to the success of any organization embarking on a journey of becoming Best in Class. While executing or implementing this plan may be daunting, Master Planning and Scheduling provides a roadmap to linking the day‐to‐day operations with the strategic vision of the company.”

—Kris Morgan, director of Planning & Third Party Manufacturing, Curation Foods, Inc.

“Proud’s third edition of Master Scheduling has been on my desk for the past 15 years. The front and back covers are missing, and the binding barely holds the pages any longer. I’ve referenced this book at least monthly irrespective of the company/industry I was working for (consumer products, electronics, capital equipment, pharmaceutics, biotech). In each experience we reaped the rewards a great master planning and scheduling process delivers, and each MPS improvement had its origin in John’s (and now Eric’s and John’s) book.”

—Paul McGuire, former planning manager, materials manager, supply chain director

“Master Planning and Scheduling: An Essential Guide to Competitive Manufacturing is a comprehensive road map to managing a business in this competitive world. Proud (and Deutsch) teach the value of a disciplined approach to balancing supply and demand, while reducing manufacturing cost via transparency and timely diagnostics.”

—Shaker Chandrasekaran, former vice president, Cellulose Fibers Manufacturing, Weyerhaeuser Company

“This latest edition of Master Planning and Scheduling further refines the definitive body of knowledge on the topic. A valid master (planning and) scheduling process has been and remains one of the most effective tools to manage the complexities of a manufacturing business and will provide the practitioner as well as the executive with valid insight and support to direct the critical activities of their enterprise.”

—Michael L. Bales, former president, Delta/Unibus Corporation

“Proud (and Deutsch) clearly outline, define, and explain the process of master (planning and) scheduling. The book is an excellent read for both the beginner and practitioner, giving either one an understanding of how to apply the concepts and tools for the best results in any manufacturing environment.”

—Jimmie White, materials and logistics manager, RGM Products

“Proud (and Deutsch) help the reader understand the application of master planning and scheduling principles and describe what works in great detail. Master (Planning and) Scheduling will become the text for any course on master (planning and) scheduling and the standard resource for all manufacturing companies.”

—Richard C. Ling, president, Richard C. Ling, Inc.

“Master planning and scheduling, the complex integration of all management planning activities, is presented in Proud (and Deutsch’s) effective style. A tremendously broad undertaking, Master (Planning and) Scheduling is sensitive to the need of the practitioner to know how and the executive to know why.”

—Richard Pugliese, former executive, Monitor Labs, Systech, and Xerox

MASTER PLANNING AND SCHEDULING

An Essential Guide to Competitive Manufacturing

FOURTH EDITION

JOHN F. PROUD | ERIC DEUTSCH

Copyright © 2022 by John F. Proud. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per‐copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750‐8400, fax (978) 646‐8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748‐6011, fax (201) 748‐6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Further, readers should be aware that websites listed in this work may have changed or disappeared between when this work was written and when it is read. Neither the publisher nor authors shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762‐2974, outside the United States at (317) 572‐3993 or fax (317) 572‐4002.

Wiley publishes in a variety of print and electronic formats and by print‐on‐demand. Some material included with standard print versions of this book may not be included in e‐books or in print‐on‐demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging‐in‐Publication Data is Available:

ISBN 9781119809418 (Hardcover)ISBN 9781119809432 (ePDF)ISBN 9781119809425 (ePub)

COVER DESIGN: PAUL MCCARTHYCOVER ART: © GETTY IMAGES | NANOSTOCKK

This book was originally (and still is today) dedicated to manufacturing professionals worldwide, especially those who chose or have chosen master planning and scheduling as a career for the past 50 years and beyond.

John and Eric, 2021Oliver Wight Principals

Additionally, this enhanced and updated master planning and scheduling book is dedicated to my late wife Darlene, who I lost in the final month of 2014. She was always the wind beneath my wings. I only regret that I did not recognize enough her contributions to my life, career, and this book during her living years!

John F. Proud, 2021Oliver Wight Principal

Additionally, this book is dedicated to my amazing wife Claudia, my partner in life's adventures. She keeps my inner curmudgeon in check and makes me laugh when I need it most. You're the best, Babe. I love you!

Eric Deutsch, 2021Oliver Wight Principal

Oliver Wight Supply Chain Management Book Series

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

John F. Proud and Eric Deutsch

Supercharged Supply Chain: Discover Unparalleled Business Planning and Execution Practices

James G. Correll, Lloyd C. Snowden, and James Bentzley

Integrated Tactical Planning

Rod Hozack, Todd Ferguson, Stuart Harman, and Dawn Howarth

The Oliver Wight Class A Standard for Business Excellence, Seventh Edition

Oliver Wight International

The Oliver Wight Proven Path, Second Edition

Oliver Wight International

An Executive's Guide to Achieving Class A Business Excellence

Dennis Groves, Kevin Herbert, and Jim Correll

Achieving Class A Business Excellence: An Executive's Perspective

Dennis Groves, Kevin Herbert, and Jim Correll

Demand Management Best Practices: Process, Principles, and Collaboration

Colleen Crum with George E. Palmatier

Supply Chain Colloration: How to Implement CPFR and Other Best Collaborative Practices

Ronald K. Ireland with Colleen Crum

The Transition from Sales and Operations Planning to Integrated Business Planning

George E. Palmatier with Colleen Crum

Enterprise Sales and Operations Planning: Synchronizing Demand, Supply and Resources for Peak Performance

George E. Palmatier with Colleen Crum

The Marketing Edge: The New Leadership Role of Sales & Marketing in Manufacturing

George E. Palmatier and Joseph S. Shull

Gaining Control: Managing Capacity and Priorities, Third Edition

James G. Correll and Kevin Herbert

Purchasing in the 21st Century: A Guide to State‐of‐the‐Art Techniques and Strategies, Second Edition

John E. Schorr

High Performance Purchasing

John E. Schorr and Thomas F. Wallace

Manufacturing Data Structures

Jerry Clement, Andy Coldrick, and John Sari

Distribution Resource Planning

Andre J. Martin

Inventory Record Accuracy, Second Edition

Roger Brooks and Larry Wilson

Orchestrating Success

Richard C. Ling and Walter E. Goddard

World Class Production and Inventory Management, Second Edition

Darryl V. Landvater

Just‐in‐Time: Surviving by Breaking Tradition

Walter E. Goddard

Just‐in‐Time: Making It Happen

William A. Sandras, Jr.

The Executive's Guide to MRP II

Oliver Wight

Master Scheduling: A Practical Guide to Competitive Manufacturing, First through Third Editions

John F. Proud

Acknowledgments

You're never too old to set another goal or to dream a new dream!

We are jointly grateful to a number of people who have shaped as well as enhanced our professional careers through education, coaching, and idea sharing. Many of these people are current and past members of Oliver Wight International, of which we have been members for 33 years (John) and 10 years (Eric). One person in particular, George Palmatier, has had more influence in our combined careers than the many others.

George Palmatier, former Oliver Wight associate, was not only a great thought leader but a great simplifier, a quality that Oliver Wight (the man) held with high esteem. George was the man who could stand up in a room full of passionate (and opinionated) Oliver Wight principals, engage in a heated debate on one topic or another, and speak simple truths and principles that would cut right to the heart of the matter. Simply put, when George stood up, we listened. He brought the same gravitas and unique perspective to his clients. We have had the pleasure in our careers, both as clients of Oliver Wight while in industry and as Oliver Wight principals, to listen to and absorb George's wisdom. We will be forever grateful for his influence, guidance, and friendship.

Additionally, we would like to thank our book reviewers, who spent many hours working their way through parts of this book (the entire book might have been too much for each reviewer in the time allotted in our master plan and schedule!). Those book reviewers are David Goddard, Oliver Wight Americas (OWA); Paul McGuire, OWA; Kris Morgan, Curation Foods, Inc.; Pam Lindsey, OWA; and Ben Sellers, OWA. The book's original reviewers should not be forgotten. Those reviewers were Darryl Landvater, OWA and the late Mike Bales, Dick Pugliese, John Sari, and Larry Wilson.

John F. Proud's Personal Acknowledgments

I continue to find myself in a place surrounded by people who care about doing things right and doing the right things. My career has covered 50‐plus years from being a naval officer to a co‐author of this master planning and scheduling book. Without the navy in my background, I'm not sure what type of person I might have turned out to be. Without Oliver Wight in my past and present, I again don't have any idea where I might have wound up. However, I do know one thing: this book and its preceding three editions might never have been written, or, if they were, I would not be one of the co‐authors.

Besides the people already mentioned in my present and past acknowledgments, I want to highlight what a pleasure it was to work with Walt Goddard, Tom Gillen, Al Stevens, Dick Ling, Roger Brooks, Jim Correll, Jerry Clement, Marv Jensen, Bill Pendleton, Tom Allen, Eric Deutsch, and so many others. When I was in learning mode, they taught me. When I was in listening mode, they talked to me. When I was in teaching mode, they listened to me. When I was in troubled mode, they comforted me. And the story goes on!

Now in 2021, I once again find myself in a very privileged situation. Working for the past couple of years with my colleague, Eric Deutsch, we are proud to release this first and only definitive book covering the complete subject of master planning and scheduling.

Original Acknowledgments for Master Scheduling—A Practical Guide to Competitive Manufacturing, First (1994), Second (1999), and Third (2007) Editions

I am deeply grateful to a number of people who have shaped as well as enhanced my professional career through education and idea sharing. Many of these people are current and past members of the Association for Operations Management (APICS), which I have been a member of for over 25 years. However, two people have had more influence in that career than the many others.

Dick Ling, former Oliver Wight associate and former president of Arista Education and Consulting, exposed me to the real profession of master scheduling. Had I not crossed paths with Dick Ling and several other Oliver Wight associates, I would not have been able to write this book. I learned my master scheduling skills from the best in the industry—Dick Ling, Oliver Wight associates, and professional master schedulers working in Class A companies worldwide.

Dick Pugliese, while serving as general manager of a Xerox plant, gave me the opportunity to be part of a Class A Manufacturing Resource Planning system implementation. It was during this time that I learned how a manufacturing company should work if it is to be successful and achieve Class A results.

Other colleagues and associates have also taught me much about this complex subject. John Dougherty literally spent hours with me discussing and developing concepts that we hope furthered the industry's understanding of how important master scheduling is to the manufacturing environment. Walt Goddard, John Sari, and Al Stevens also developed numerous master scheduling concepts over the years and were kind enough to share them with me. Oliver Wight associates Tom Gillen, who helped me with the engineering issues, and George Palmatier, who made sure I did justice to the demand side of the business, also deserve recognition.

Several other people who I would like to thank and acknowledge are: Dick Luecke, who was instrumental in taking my thoughts and structuring them into sentences and phrases that actually make sense; Lori Stacey, who spent hours upon hours typing, correcting, retyping, and recorrecting the lengthy manuscript; the Oliver Wight Publications staff, who have been effective, cooperative, patient, and understanding throughout this book's entire process; and the John Wiley & Sons staff, who added the professional flavor.

Once the manuscript draft was available, Mike Bales, former vice‐president operations, G & W Electric; Dick Pugliese, retired executive; John Sari, Oliver Wight Alliance; and Larry Wilson, Oliver Wight Americas principal worked their way through the many pages, challenging my thoughts and recommending changes as appropriate. Without their critical input, this book would be less than the book it is today. My “severest and best critic” was former Oliver Wight associate Darryl Landvater, who challenged not only content but organization. A special thank you goes to Darryl for his effort, time, and patience.

Another special thank you goes to my original editor and publisher, Jim Childs, as well as my current editor, Matt Holt, who I am sure I caused great grief when I missed several milestones along the way—What? The person who wrote the book on valid master schedules was “past due”? If you ever doubt how important it is for a manufacturing company to create valid schedules and then perform to these schedules in order to satisfy its customers, just give my publisher a call. In addition to Jim Childs, Dana Scannell was the first to give me the chance to write this book and encouraged me to keep going when my frustrations were high and my stamina was low.

My final thank you goes to my lovely (late) wife, Darlene, who gave me the time necessary and seldom complained about being left alone while I worked in the office. Darlene was truly my best friend, and without her understanding and encouragement, I would never have found myself in a position to write these acknowledgments for what I still believe was the first and only definitive book covering the subject of master scheduling.

Eric Deutsch Personal Acknowledgments

I am deeply grateful for those who had faith in me and enabled me to grow and learn throughout my career. Their companionship, coaching, and inspiration was, and is, invaluable to me.