Class A ERP Implementation: Integrating Lean and Six Sigma

There is no more important topic within the Class A ERP than master scheduling. While the sales and operations planning (S&OP) process is definitely in competition within the ERP process for influence and impact, the master production schedule (MPS) wins from my perspective simply because without good master scheduling, the S&OP process would be no more valuable than a rain dance with little real influence over the weather. In a Class A plant, the two most influential positions are the plant manager and the master scheduler. The master schedule defines the activities required to meet the top-management S&OP, but also dictates the requirements from customer demand. This already sounds like quite a job and it is. Figure 7.1 depicts the relationship of the master schedule with the rest of the ERP process flow. Top-management planning decisions feed into the MPS and drive emphasis and create the forecasted demand. The MPS, in turn, feeds back vital data concerning customer activity and coordinates the interaction of the two inputs. This feedback affects the next S&OP cycle.
The MPS is the detailed schedule that resides in the ERP business system and drives the inventory strategy, supply chain actability, inventory levels, customer service, and machine and capacity utilization. The main data categories the MPS drives fall into two areas: known and unknown requirements. This may seem like a simple thought, but understanding this concept and grasping the importance of its impact is...