The Master Schedule is part of the Roles and Responsibilities of S&OP. The Master Schedule plays in Supply Chain, a key role in the successful implementation of an S&OP plan. Both the Supply Planning and Master Scheduling functions and the S&OP plan seek to maximize the company’s profits. However, they can only achieve this objective through strategic leveraging of production capabilities.
Alignment of The Master Schedule with the S&OP Plan
S&OP planning is a structured process. It helps all members of the organization jointly focus on achieving corporate objectives at the tactical level. Once the monthly S&OP plan is finalized; it is important that there is alignment between the Master Schedule and the S&OP plan. This synchronization should be achieved not only at the aggregate production level but also for daily production levels.
Synchronization of Time Units Between the Master Schedule and the S&OP Plan
The S&OP plan is a usually a monthly plan. The company needs to translate this planned monthly production into a daily production rate for the Master Schedule. It also needs to synchronize aggregate production levels between both plans.
Product Family Definitions Should Be Identical in the Master Schedule and the S&OP Plan
Production efficiencies is better when manufacturing occurs in a way that minimizes maintenance needs between product families. For example, for a manufacturer of pastry products, a typical production run might begin with white cake batter through all the color iterations until they produce a deep chocolate cake batter. At that point, the equipment shuts down so a thorough cleaning can occur. And then, the next production run beginning with white cake batter can begin anew. “Cake batter” can be viewed as a “product family”. Clearly defining shared product names that appear the same in both the Master Schedule and the S&OP plan is critical. In the above example, both plans product names should use the name “cake batter, white”. The name should not be “cake batter, white” in the S&OP plan and “white cake batter” in the Master Schedule.
Master Schedule in Supply Planning and Production Rates
Not all products run at the same rate. In the above bakery example, due to greater product density, brownie batter may run at a slower rate than cake batter. Professionals need to incorporate these rate differentials into the Master Schedule.
The Master Schedule in Supply Planning Drives Bill of Material (BOM) Planning
The Master Schedule sets production levels for finished product goods. Integrated BOMs will generate raw material needs. This streamlined process promotes manufacturing and organizational efficiencies.
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