Business Basics
Home Page

Who is Bill Gaw?
And why should we
listen to him?


lean manufacturing principles and techniques training

A training program that gains employee understanding and commitment
Lean Manufacturing Training Program

If you want to get to the top of the latter, forward this Web page to your CEO/HR
Mfg. Mgmt. Development Program

Master Schedule Tool - Part 2 of 3

Part 1  Part 2   Part 3

Get Bill Gaw's Lean Manufacturing Book
$15.00 Click Here

 Book: "Back to Basics"


privacy policy



Other Training Options:

Lean Sigma Assessment

Lean Six Sigma Implementation

Lean Six Sigma, Certification Program

Lean Six Sigma Forum

Lean Manufacturing Basics

Lean Manufacturing Assessment

Lean Manufacturing Transformation Training

Shop Floor Control

Lean Manufacturing Principles and Techniques

Lean Manufacturing Simulation Game

Lean Manufacturing Certification Program

Lean Manufacturing

Kaizen Management Training

Lean Manufacturing Problems and Solutions

Lean Manufacturing Seminar-in-a-Box

Supply Chain Management Training Program

Strategic Planning Training Program

Thinking-Outside-the- Box Workshop

Lean Management PowerPoint Training Modules

Lean Manufacturing

Lean Manufacturing



Then, out of necessity, along came Sales & Operations Planning (S&OP), originally called Production Planning. It required the grouping of a company's products into homogenous families, so that trends and patterns of the marketplace could be seen in aggregate. This then en­abled rough-cut resources requirements to be calculated and the placement of appropriate resources. Today, S&OP has matured into a very disciplined practice, in many cases making the long-term maintenance of the MPS unnecessary and non-value-adding. S&OP is de­fined as:

A process that provides management the ability to strategically direct its businesses to achieve com­petitive advantage on a continuous basis by inte­grating customer-focused marketing plans for new and existing products with the management of the supply chain.


In short, S&OP sets the stage so that the MPS can effectively and efficiently schedule to the needs of the marketplace. Today, we see this balancing process in three dimensions.


As can be seen, the closer the planning is to the cur­rent day, the more detail that needs to be dealt with. The further into the future, the less detail that is necessary. Each of these practices overlap but does not duplicate each other. They are very different in their objective, but very connected.



As you can see, in the very short term, factory schedul­ing takes place. This practice sequences production planned by the MPS, taking into account every detail, including packaging requirements, final configuration, changeover issues, and the like. Someone working on the factory floor typically does this function.


The master production schedule drives the proper ordering of parts and materials, assuring detailed ca­pacity is proper and adequate. It takes input from the Sales & Operations Planning process and breaks it down into the detail necessary to drive both detailed material and capacity planning. T


As can be seen, the relationship between MPS and the S&OP is iterative. That is, it is circular. This whole process typically begins with S&OP, for a horizon of 18 to 24 months. As the aggregate supply and demand plans approach the CTF (typically one to three months), they are broken down into sufficient end-item detail to plan parts, materials, and capacities.


Outside the CTF, the MPS does nor necessarily reflect the total of the S&OP production plan. It well might con­tain schedules for long lead time customer orders, or long lead time materials, it is nor comprehensive. It is impor­tant to understand that S&OP is nor simply the summa­tion of the MPS. It is projections and plans that represent aggregate trends, not getting lost in the detail.


Part 1  Part 2   Part 3

Bill Gaw's Lean Manufacturing & Six Sigma Bulletin (LMSSB)

To stay current on Lean Manufacturing and Six Sigma knowledge and implementation know-how, subscribe to Bill Gaw's Lean Manufacturing Six Sigma Bulletin and you'll receive his weekly solutions to the reasons why 80% of lean initiatives fail to meet expectations. And as a bonus we'll send you a download copy of our eBook, "Thinking-Outside-the-Box.". (All at no cost of course.).

 Simply fill in your first name and email address and click on the bar below:

        Your personal information will never be disclosed to any third party.

First Name:
Your E-Mail:

Here's what one of our 15,000 plus subscribers wrote about the LMSS Bulletin:

"Great manufacturing articles. Thanks for the insights. I often share portions of your articles with my staff and they too enjoy them and fine aspects where they can integrate points into their individual areas of responsibilities. Thanks again."

               Kerry B. Stephenson. President. KALCO Lighting, LLC

Knowledge and implementation know-how you'll not find in the
books at neither in the APICS Package 
nor the Harvard Business School Press.  

Business Basics, LLC
6003 Dassia Way, Oceanside, CA 92056
West Coast: 760-945-5596 

© 2000-2013 Business Basics, LLC