planning and control: a set of tactical / execution-level business activities that includes master
scheduling, material requirements planning, and some form of production activity control and
vendor order management
Sales and operations planning Establishes overall production,
workforce, and inventory levels (tactical
(S&OP) capacity planning)
Figure 1:
Top-Down Model of Determines what specific products will
Manufacturing Planning be made, when specific customer orders
Master scheduling will be filled, and what products /
and Control Systems capabilities are still available to meet
new demand
Material requirements Calculates the timing / quantities of
material orders needed to support the
planning (MRP) master schedule
Productivity activity control Vendor oder management
(PAC)
Assures that in-house manufacturing Assures that materials ordered from s.c.
takes places according to plan; helps partners are received when needed;
manufacturing managers identify also helps purchasing managers to
potential problems and take corrective identify potential problems and take
actions corrective actions
12.1 Master Scheduling
- master scheduling: a detailed planning process that tracks production output and matches this output
to actual customer orders
- management has established overall targets for demand, production, and ending inventory; these
targets will guide the firm's tactical decisions
- as long as the numbers in the S&OP plan are close to those in the master schedule, firms will be able to
manage the differences
The Master Schedule Record
- firms tailor the master schedule record to their manufacturing environment / the characteristics of their
product (generalizing about its precise form is difficult); nevertheless, most master schedule records
track several key pieces of information:
i) forecasted demand,
ii) booked orders,
iii) projected inventory levels,
- 76 - Jannis Mertens
scheduling, material requirements planning, and some form of production activity control and
vendor order management
Sales and operations planning Establishes overall production,
workforce, and inventory levels (tactical
(S&OP) capacity planning)
Figure 1:
Top-Down Model of Determines what specific products will
Manufacturing Planning be made, when specific customer orders
Master scheduling will be filled, and what products /
and Control Systems capabilities are still available to meet
new demand
Material requirements Calculates the timing / quantities of
material orders needed to support the
planning (MRP) master schedule
Productivity activity control Vendor oder management
(PAC)
Assures that in-house manufacturing Assures that materials ordered from s.c.
takes places according to plan; helps partners are received when needed;
manufacturing managers identify also helps purchasing managers to
potential problems and take corrective identify potential problems and take
actions corrective actions
12.1 Master Scheduling
- master scheduling: a detailed planning process that tracks production output and matches this output
to actual customer orders
- management has established overall targets for demand, production, and ending inventory; these
targets will guide the firm's tactical decisions
- as long as the numbers in the S&OP plan are close to those in the master schedule, firms will be able to
manage the differences
The Master Schedule Record
- firms tailor the master schedule record to their manufacturing environment / the characteristics of their
product (generalizing about its precise form is difficult); nevertheless, most master schedule records
track several key pieces of information:
i) forecasted demand,
ii) booked orders,
iii) projected inventory levels,
- 76 - Jannis Mertens
