Cover image for Master scheduling : a practical guide to competitive manufacturing
Title:
Master scheduling : a practical guide to competitive manufacturing
Author:
Proud, John F.
Personal Author:
Edition:
Second edition.
Publication Information:
New York : John Wiley, [1999]

©1999
Physical Description:
xxvi, 610 pages : illustrations ; 24 cm.
General Note:
Includes index.
Language:
English
ISBN:
9780471243229
Format :
Book

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Central Library TS157.5 .P76 1999 Adult Non-Fiction Central Closed Stacks
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Summary

Summary

Praise for the First Edition of MASTER SCHEDULING.

"Master scheduling, the complex integration of all management planning activities, is presented in John Proud s effective style. A tremendously broad undertaking, [this book] is sensitive to the need of the practitioner to know how and the executive to know why." Richard Pugliese, Executive (Retired) Monitor Labs Systech, Xerox Corporation

"The master scheduling techniques explained in this book form the best approach for cost effectively replacing the communication links that are often lost in the current environment of reduced people resources. Master Scheduling is the single best resource for these business solutions." Michael L. Bales, consultant with Oliver Wight Americas; former vice president, manufacturing, G&W Electric

"Provides both education for the uninitiated and practical reference material for the practitioner. It is a valuable resource for any enterprise." Tim Ewen, Vice President Supply Chain Management, Applied Magnetics Corporation

"John Proud helps the reader to understand the application of master scheduling principles and describes what works in great detail. Master Scheduling will become the text for any course on master scheduling and the standard resource for all manufacturing companies. . . ." Richard C. Ling, President Richard C. Ling, Inc.

In today s competitive, fast-paced world of manufacturing, every aspect of a company s operation must be highly responsive to a customer s needs. Master scheduling, when used in conjunction with Enterprise Resource Planning, is an essential planning tool that helps manufacturing companies synchronize their production with actual market demand.

In this expanded and updated Second Edition of the definitive book on the subject, John F. Proud shows companies how to create and maintain valid and realistic master schedules. Anyone involved in designing and maintaining a company s master schedule will find a wealth of practical, proven advice in Master Scheduling. From sales and marketing to manufacturing, materials management, and engineering, Proud includes important advice for integrating all areas of a company within the framework of an effective master schedule.

In every chapter of this edition, Proud introduces important new material to ensure complete and up-to-date coverage of this constantly evolving field. Two entirely new chapters covering the process industry and manufacturing at multiple sites domestically and internationally have been added.

The new chapter covering the process industry identifies where the master scheduling mechanics and management issues are similar to intermittent manufacturing, as well as different. The supply management chapter deals with managing an enterprise s internal supply chain. Numerous short case studies are also included to illustrate important topics.

Packed with helpful checklists, examples, and illustrations, Master Scheduling delivers easy-to-follow guidelines for implementing and managing a world- class master schedule. Proud shows managers how to avoid the most common problems while consistently maximizing the accuracy and performance of the master schedule.


Author Notes

JOHN F. PROUD is an educator, consultant, and Principal of Oliver Wight Americas. With more than a quarter century s experience in manufacturing support, Proud has helped dozens of companies improve their manufacturing operations through the use of ERP and master scheduling. He speaks frequently for organizations such as the American Production and Inventory Control Society and is actively involved in furthering the education of manufacturing professionals in the Americas, Asia, and Europe.


Table of Contents

Acknowledgmentsp. xii
Forewordp. xvii
Introductionp. xix
1 Chaos in Manufaduringp. 1
Problems in Manufacturingp. 3
Symptoms of Master Scheduling Problemsp. 3
The Inaccurate Forecastp. 4
And the Solutionsp. 7
The Case of the Overloaded Master Schedulep. 12
Getting Out of the Overloaded Master Schedulep. 17
2 Why Master Scheduling?p. 23
Between Strategy and Executionp. 25
What Is the Master Schedule?p. 29
Maximizing, Minimizing, and Optimizingp. 30
The Challenge for the Master Schedulerp. 31
MPS, MRPII, ERP, and SCMp. 33
Enterprise Resource Planningp. 39
Supply Chain Managementp. 41
Where Have All the Orders Gone?p. 42
The Fout Cornerstones of Manufacturing Revisitedp. 45
So, Why Master Scheduling?p. 46
3 The Mechanics of Master Schedulingp. 49
The Master Schedule Matrixp. 50
Master Scheduling in Actionp. 57
How Master Scheduling Drives Material Planningp. 63
The What, Why, and How of Safety Stockp. 71
Planning Time Fencep. 75
Demand Time Fencep. 80
Master Schedule Design Criteriap. 82
4 Managing with the Master Schedulep. 85
The Master Scheduler's Jobp. 88
Moving a Customer Order to an Earlier Datep. 90
Action and Exception Messagesp. 93
Six Key Questions to Answerp. 97
Answering the Six Questionsp. 100
Time Zones as Aids to Decision Makingp. 101
Moving a Manufacturing Order to an Earlier Datep. 103
Planning Within Policyp. 106
No Past Duesp. 109
Managing with Planning Time Fencesp. 109
Load-Leveling in Manufacturingp. 115
Lean Manufacturing and Continuous Improvementp. 118
Mixed-Model Schedulingp. 119
Planned Plant Shutdownsp. 123
The Production Shutdownp. 125
5 Using the MPS Output in a Make-to-Stock Environmentp. 129
The Master Schedule Screenp. 130
Working a Make-to-Stock Master Schedulep. 137
Time Phasing the Bill-of-Materialp. 140
Understanding the Action Messagesp. 142
Bridging Data and Judgmentp. 149
Seasonality and Inventory Buildupp. 151
The Six Key Questions Revisitedp. 154
Scheduling in a World of Many Schedulesp. 154
From Master Scheduling to Material Requirements Planningp. 164
6 What to Master Schedulep. 171
Manufacturing Strategiesp. 172
Choosing die Right Strategyp. 174
Master Scheduling and Product Structuresp. 177
Multilevel Master Schedulingp. 180
Tying the Master Schedule and the Production Plan Togetherp. 182
Master Scheduling Capacities, Activities, and Eventsp. 184
7 Scheduling in a Flow Environmentp. 186
Different Manufacturing Environmentsp. 188
Similarities between Intermittent and Flow Environmentsp. 191
Product Definitionp. 196
The Planning Processp. 200
An Extended Examplep. 206
Catalysts and Recovered Materialp. 211
Line Schedulingp. 213
8 Planning Billsp. 216
The Overly Complex Bill-of-Materialp. 218
Anatomy of a Planning Billp. 227
Creating Demand at the Master Schedule Levelp. 232
Restructuring Company Bills into Planning Bills: A Case Studyp. 233
9 Two-Level MPS and Other Advanced Techniquesp. 240
The Backlog Curvep. 240
Scheduling and the Backlog Curve Zonesp. 244
Identifying Demandp. 244
Creating the Master Schedule in a Make-to-Order Environmentp. 251
Option Overplanningp. 255
Calculating Projected Available Balancep. 258
Calculating Available-to-Promisep. 259
Using ATP to Commit Customer Ordersp. 260
Option Overplanning in the Make-to-Stock Environmentp. 267
Master Scheduling in Make-to-Order and Make-to-Stock Environments: A Comparisonp. 271
10 Using MPS Output in a Make-to-Order Environmentp. 274
Using Planning Bills to Simplify Option Schedulingp. 276
The Scheduling Processp. 278
The Common-Items Master Schedulep. 282
Analyzing the Detail Datap. 287
Balancing the Sold-Out Zone for Common Itemsp. 288
Handling Abnormal Demandp. 290
Action Messagesp. 292
Working the Pseudo Optionsp. 293
Master Scheduling a Purchased Item in the Planning Billp. 304
Linking Master Schedule and Material Planp. 310
11 Master Scheduling in Custom-Product Environmentsp. 315
The Unique Challenges of the ETO Environmentp. 316
The Case of New-Product Introductionsp. 318
Master Scheduling Activities and Evontsp. 320
Launching a New Productp. 321
Prices and Promises to Keepp. 326
What Can Go Wrongp. 327
Integrating Design and Operation Activitiesp. 328
Plan Down, Replan Upp. 332
Capacity-Driven Environmentsp. 336
Make-to-Contract Environmentsp. 341
The Need for Standardsp. 342
When Supply Can't Satisfy Demandp. 346
12 Finishing Schedulesp. 348
Manufacturing Strategy and Finishing Schedulesp. 349
Manufacturing Approachesp. 350
Other Manufacturing Issuesp. 353
Sequencingp. 354
Traditional Means of Communicating the Schedulep. 355
Do We Really Need These Computers?p. 356
The Kanban Systemp. 357
Tying It All Togetherp. 361
Final Assembly or Process Routingsp. 365
Configuring and Building to a Customer Orderp. 367
Finishing or Final Assembly Combined Materials and Operations Listp. 370
Choosing the Most Effective Approachp. 372
Finishing Schedules versus Master Schedulesp. 373
13 Sales and Operations Planningp. 375
Workable, Adjustable Plansp. 378
S&OP and the Master Schedulep. 380
The Case of S&OP at AutoTekp. 381
Synchronizing Demand and Supplyp. 394
14 Rough Cut Capacity Planningp. 400
Know Before You Gop. 401
Rough Cut Revealedp. 402
The Rough Cut Processp. 403
Creating Resource Profilesp. 406
Finalizing the Resource Profilep. 412
Capacity Inputsp. 413
Overloading Demonstrated Capacityp. 419
Rough Cut at the Master Scheduling Levelp. 421
Working the Rough Cut Capacity Planp. 428
What-If Analysis and Rough Cut Capacity Planningp. 433
Screen and Report Formatsp. 435
The Limitations and Benefits of Rough Cut Capacity Planningp. 438
Implementing the Rough Cut Processp. 440
Final Thoughtsp. 442
15 Supply Managementp. 445
Supply Management in Actionp. 450
Product-Driven, Aggregated Inventory Planningp. 452
Will the Plan Work?p. 456
Product-Driven, Disaggregated Inventory Planningp. 458
Product-Driven, Aggregated Backlog Planningp. 462
Product-Driven, Disaggregated Backlog Planningp. 467
Production-Driven Environmentsp. 471
Interplant Integrationp. 473
Should Companies Have Supply Managers?p. 478
16 Demand Managementp. 482
What Is Demand Management?p. 482
The Role of Forecasting in the Company: The Case of Hastings & Brownp. 485
Problems with Forecastingp. 488
Coping with Forecast Inaccuraciesp. 488
It's about Quantitiesp. 489
lts about Timep. 491
Small Numbers and the Master Schedulep. 494
Demand and Forecast Adjustmentp. 495
Computer Alertp. 499
The Problem of Abnormal Demandp. 502
Customer Linkingp. 504
Getting Pipeline Controlp. 507
Distribution Resource/Requirements Planningp. 509
Multiplant Communicationsp. 516
Tell Us What You Want, and We'll Do the Rest, Sirp. 518
Available-to-Promisep. 519
ATP with Two Demand Streamsp. 522
Should Companies Have Demand Managers?p. 526
17 Effective Implementationp. 531
Proven Path to Successful Operational Excellencep. 532
The Decision Pointp. 534
Going on the Airp. 535
The Path to Master Scheduling Implementationp. 536
Stage 1 Evaluation and Preparationp. 538
Master Scheduling Vision Statement (A Sample)p. 541
Stage 2 Design and Actionp. 546
Business Meeting Agenda (A Sample)p. 548
Master Scheduling Policy (A Sample)p. 553
Master Schedule Procedure Action Message Review (A Sample)p. 554
Stage 3 Launch and Cutoverp. 557
Who's in Control of the Software?p. 558
Deterrents to Successful Implementation of the Master Scheduling Processp. 565
The Master Scheduler's List of Responsibilitiesp. 566
Master Scheduler Position Descriptionp. 567
Epilogue: Order from Chaosp. 570
Appendix A Class A Master Scheduling Process and Performance Checklistsp. 573
Appendix B Master Scheduling Sample Implementation Task Listp. 581
Appendix C Master Scheduling Policy, Procedure, and Flow Diagram Listingp. 593
Appendix D Master Scheduling Sample Process Flow Diagramp. 596
Glossaryp. 598
Indexp. 637

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