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Praise for Master Planning and Scheduling — ­the Book, the Process, the Results!

Past and Present Be at your best when your best is needed!

“The overarching driver for supply planning and supply scheduling is the master planning and scheduling set of processes. This is covered in depth in the best book ever written on the subject, Master Scheduling (Proud 2013). Suffice to say that the term master says it all—­it is the master of all other detailed supply plans and schedules. Master Planning and Scheduling is the fourth edition of the very successful Master Scheduling book (originally released in 1994).”

—­Rod Hozack, Stuart Harman, Todd Ferguson, and Dawn Howarth, authors of Integrated Tactical Planning, Oliver Wight International, Inc. “In Master Planning and Scheduling, authors Proud and Deutsch bring us both the science and the art of integrated planning and day-­to-­day execution—­application based on sound theory—­written in a clear and straightforward way. The vital role of master planning and scheduling in a holistic, effective, and efficient planning and execution environment is brought to life in a real-­world and compelling fashion. This book is a comprehensive resource for the education, design, implementation, and measurement of best-­practice supply chain processes to support sustainable value creation and enduring competitive advantage.”

—­Bob Hirschey, president, Oliver Wight Americas, Inc. and former vice president, strategic planning, cellulose fibers, Weyerhaeuser Company

“Planning together, as one team . . . a novel concept that is too frequently overlooked.

The work here by Proud and Deutsch reinforces the fact that planning together is imperative to the success of any organization embarking on a journey of becoming Best in Class. While executing or implementing this plan may be daunting, Master Planning and Scheduling provides a roadmap to linking the day-­to-­day operations with the strategic vision of the company.”

—­Kris Morgan, director of Planning & Third Party Manufacturing, Curation Foods, Inc. “Proud’s third edition of Master Scheduling has been on my desk for the past 15 years. The front and back covers are missing, and the binding barely holds the pages any longer. I’ve referenced this book at least monthly irrespective of the company/ industry I was working for (consumer products, electronics, capital equipment, pharmaceutics, biotech). In each experience we reaped the rewards a great master planning and scheduling process delivers, and each MPS improvement had its origin in John’s (and now Eric’s and John’s) book.”

—­Paul McGuire, former planning manager, materials manager, supply chain director “Master Planning and Scheduling: An Essential Guide to Competitive Manufacturing is a comprehensive road map to managing a business in this competitive world. Proud (and Deutsch) teach the value of a disciplined approach to balancing supply and demand, while reducing manufacturing cost via transparency and timely diagnostics.”

—­Shaker Chandrasekaran, former vice president, Cellulose Fibers Manufacturing, Weyerhaeuser Company “This latest edition of Master Planning and Scheduling further refines the definitive body of knowledge on the topic. A valid master (planning and) scheduling process has been and remains one of the most effective tools to manage the complexities of a manufacturing business and will provide the practitioner as well as the executive with valid insight and support to direct the critical activities of their enterprise.”

—­Michael L. Bales, former president, Delta/Unibus Corporation

“Proud (and Deutsch) clearly outline, define, and explain the process of master (planning and) scheduling. The book is an excellent read for both the beginner and practitioner, giving either one an understanding of how to apply the concepts and tools for the best results in any manufacturing environment.”

—­Jimmie White, materials and logistics manager, RGM Products “Proud (and Deutsch) help the reader understand the application of master planning and scheduling principles and describe what works in great detail. Master (Planning and) Scheduling will become the text for any course on master (planning and) scheduling and the standard resource for all manufacturing companies.”

—­Richard C. Ling, president, Richard C. Ling, Inc. “Master planning and scheduling, the complex integration of all management planning activities, is presented in Proud (and Deutsch’s) effective style. A tremendously broad undertaking, Master (Planning and) Scheduling is sensitive to the need of the practitioner to know how and the executive to know why.”

—­Richard Pugliese, former executive, Monitor Labs, Systech, and Xerox

MASTER PLANNING AND SCHEDULING

MASTER PLANNING AND SCHEDULING An Essential Guide to Competitive Manufacturing

FO U R T H E D I T I O N

JOHN F. PROUD ERIC DEUTSCH

Copyright © 2022 by John F. Proud. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-­copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, (978) 750-­8400, fax (978) 646-­8600, or on the Web at www.copyright.com. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-­6011, fax (201) 748-­6008, or online at http://www.wiley.com/go/permissions.

Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Further, readers should be aware that websites listed in this work may have changed or disappeared between when this work was written and when it is read. Neither the publisher nor authors shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

For general information on our other products and services or for technical support, please contact our Customer Care Department within the United States at (800) 762-­2974, outside the United States at (317) 572-­3993 or fax (317) 572-­4002.

Wiley publishes in a variety of print and electronic formats and by print-­on-­demand. Some material included with standard print versions of this book may not be included in e-­books or in print-­on-­demand. If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com. For more information about Wiley products, visit www.wiley.com.

Library of Congress Cataloging-­in-­Publication Data is Available: ISBN 9781119809418 (Hardcover) ISBN 9781119809432 (ePDF) ISBN 9781119809425 (ePub) COVER DESIGN: PAUL MCCARTHY COVER ART: © GETTY IMAGES | NANOSTOCKK

This book was originally (and still is today) dedicated to manufacturing professionals worldwide, especially those who chose or have chosen master planning and scheduling as a career for the past 50 years and beyond.

John and Eric, 2021 Oliver Wight Principals Additionally, this enhanced and updated master planning and scheduling book is dedicated to my late wife Darlene, who I lost in the final month of 2014. She was always the wind beneath my wings. I only regret that I did not recognize enough her contributions to my life, career, and this book during her living years!

John F. Proud, 2021 Oliver Wight Principal Additionally, this book is dedicated to my amazing wife Claudia, my partner in life’s adventures. She keeps my inner curmudgeon in check and makes me laugh when I need it most. You’re the best, Babe. I love you!

Eric Deutsch, 2021 Oliver Wight Principal

Oliver Wight Supply Chain Management Book Series Master Planning and Scheduling: An Essential Guide to Competitive Manufacturing, Fourth Edition John F. Proud and Eric Deutsch Supercharged Supply Chain: Discover Unparalleled Business Planning and Execution Practices James G. Correll, Lloyd C. Snowden, and James Bentzley Integrated Tactical Planning Rod Hozack, Todd Ferguson, Stuart Harman, and Dawn Howarth The Oliver Wight Class A Standard for Business Excellence, Seventh Edition Oliver Wight International The Oliver Wight Proven Path, Second Edition Oliver Wight International An Executive’s Guide to Achieving Class A Business Excellence Dennis Groves, Kevin Herbert, and Jim Correll Achieving Class A Business Excellence: An Executive’s Perspective Dennis Groves, Kevin Herbert, and Jim Correll Demand Management Best Practices: Process, Principles, and Collaboration Colleen Crum with George E. Palmatier Supply Chain Colloration: How to Implement CPFR and Other Best Collaborative Practices Ronald K. Ireland with Colleen Crum The Transition from Sales and Operations Planning to Integrated Business Planning George E. Palmatier with Colleen Crum Enterprise Sales and Operations Planning: Synchronizing Demand, Supply and Resources for Peak Performance George E. Palmatier with Colleen Crum The Marketing Edge: The New Leadership Role of Sales & Marketing in Manufacturing George E. Palmatier and Joseph S. Shull

Gaining Control: Managing Capacity and Priorities, Third Edition James G. Correll and Kevin Herbert Purchasing in the 21st Century: A Guide to State-­of-­the-­Art Techniques and Strategies, Second Edition John E. Schorr High Performance Purchasing John E. Schorr and Thomas F. Wallace Manufacturing Data Structures Jerry Clement, Andy Coldrick, and John Sari Distribution Resource Planning Andre J. Martin Inventory Record Accuracy, Second Edition Roger Brooks and Larry Wilson Orchestrating Success Richard C. Ling and Walter E. Goddard World Class Production and Inventory Management, Second Edition Darryl V. Landvater Just-­in-­Time: Surviving by Breaking Tradition Walter E. Goddard Just-­in-­Time: Making It Happen William A. Sandras, Jr. The Executive’s Guide to MRP II Oliver Wight Master Scheduling: A Practical Guide to Competitive Manufacturing, First through Third Editions John F. Proud

Contents

Acknowledgments xxiii Foreword xxix Introduction xxxi Initial Thoughts xxxix 1

Chaos in Manufacturing 1 Problems in Manufacturing And the Solutions Getting Out of the Overloaded Master Plan and/or Master Schedule Rescheduling the Overloaded Master Plan and/or Master Schedule

2 7 16 19

2

Why Master Planning and Scheduling 25 The Four Cornerstones of a Manufacturing Business Between Strategy and Execution What Is a Master Plan versus a Master Schedule?

Maximizing, Minimizing, and Optimizing Objectives of Master Planning and Scheduling (If You Don’t Know Where You’re Going, Any Road Will Get You There) Challenges for the Master Planner and Master Scheduler Principles of Master Planning and Scheduling MPS, MRPII, ERP, SCM, and ITP Finding the Diamond in the Rough—­Why It’s Important The Four Cornerstones of Manufacturing Revisited Four Levels of Planning (Sometimes Use Only Three) Why Master Planning and Scheduling Is a Must in Business Excellence

xiii

25 27 31 32 33 35 37 39 58 67 68 74

xiv

Contents 3

The Mechanics of Master Planning and Scheduling 79 The Importance of Master Planning and Scheduling 79 The Master Planning and Scheduling Matrices 80 Master Scheduling in Action 87 Why and How Master Scheduling Drives Material Requirements Planning and Detailed Scheduling 92 The What, Why, and How of Safety Stock 99 Additional Material Planning Techniques 103 Maintaining Demand/Supply Balance Inside the Planning Time Fence 107 Master Plan and Schedule Design Criteria 113 So, What’s Next?

115 4

Managing the Supply Chain with Master Planning and Scheduling 117 The Master Planner’s and Master Scheduler’s Job Exception-­Driven Action Messages Six (Sometimes Seven) Key Questions to Answer Answering the Six (or Seven) Questions Time Zones as Aids to Decision Making Planning Within Master Planning and Scheduling Policy No Past Dues Managing with Planning Time Fences Load-­Leveling in Manufacturing Lean Manufacturing and Continuous Improvement Mixed-­Model Scheduling Planned Plant Shutdowns

119 125 129 133 134 138 141 142 147 150 151 154

5

Using the MPS Output for Make-­to-­Stock Products 159 The Master Schedule Screens Working Make-­to-­Stock Master Scheduled Items Time Phasing the Bills-­of-­Material Understanding Exception-­Driven Action Messages Bridging Data and Judgment The Seven Key Questions Revisited

160 168 170 172 180 184

Contents

xv

Scheduling in a World of Many Schedules From Master Planning and Scheduling to Time-­Phased Material Requirements Planning From Master Planning to Master Scheduling (It’s Called Master Planning and Scheduling)

185 194 199

6

Where and What to Master Plan and Master Schedule 203 Manufacturing Strategies Defined Choosing the Right Manufacturing Strategy Master Planning, Master Scheduling, and Product Structures Multilevel Master Planning and Scheduling Ensuring That Supply Plans and Schedules Are Aligned, Synchronized, and Integrated Master Scheduling Capacities, Activities, and Events

204 206 210 213 216 224

7

Scheduling in a Flow Environment 227 Different Manufacturing Environments Similarities Between Intermittent and Flow Environments Product Definition The Planning Process Process Company Using Rough Cut Capacity Planning: An Extended Example Catalysts and Recovered Material Production Line Scheduling Planning Multiplant Workloads

228 232 236 239 244 250 251 252

8

Planning Bills 255 The Overly Complex Bill-­of-­Material Anatomy of a Planning Bill Creating Demand at the Master Planning and Scheduling Level

257 266 271

9

Two-­Level MPS Coupled with Other Advanced Techniques 277 The Backlog Curve Identifying Demand Creating the Master Plan and/or Master Schedule for Products Using a Make-­to-­Order Manufacturing Strategy

277 281 288

xvi

Contents

Option Overplanning Calculating Projected Available Balance for Pseudo Items Calculating Available-­to-­Promise Using Available-­to-­Promise to Commit Customer Orders Changes in Projected Available Balance Option Overplanning for Products in the Make-­to-­Stock Environment Master Planning and Scheduling Products in Make-­to-­Stock and Make-­to-­Order Environments: A Comparison

292 294 295 297 303 305 309

10

Using MPS Output for Make-­to-­Order Products 313 Using Planning Bills to Simplify Option Scheduling The Scheduling Process Master Scheduling Common Components Analyzing the Detail Data Balancing the Sold-­Out Zone for Common Components Handling Abnormal Demand Action Messages Working the Pseudo Options Master Scheduling Purchased Items in the Planning Bill Linking the Master Plan to the Master Schedule to the Material Plan Manufacturing Strategies—­Products in the Make-­to-­Order Environment

315 317 321 325 326 328 330 330 341 346 350

11

Master Planning and Scheduling in Custom-­Product Environments 355 The Unique Challenges of the DTO and ETO Environments The Case of New Product Introduction Master Planning and Scheduling—­Activities and Events Prices and Promises to Keep What Can Go Wrong Integrating Design and Operation Activities Plan Down, Replan Up Make-­to-­Contract Environments The Need for Standards—­A Long Time Ago When Supply Can’t Satisfy Demand

356 358 363 367 368 370 373 381 382 386

Contents

xvii

Manufacturing Strategy Tied to Finishing/Final Assembly Schedules Manufacturing Strategy Approaches Traditional Means of Communicating the Master Plan and/or Master Schedule The Role of People and Computers in Finishing and Final Assembly Scheduling—­Past, Present, and Future The Kanban System Tying It All Together (Aggregate Integrated Business Planning Through Master Planning and Scheduling Through Detailed Production Scheduling) Final Assembly or Process Routings Configuring and Building to a Customer Order Finishing or Final Assembly Combined Materials and Operations List Choosing the Most Effective Approach Master Plans versus Master Schedules versus Finishing Schedules Master Scheduling Logistics (Sharing In/Out Information)

389 391 395

12

Finishing or Final Assembly Scheduling 389

397 399 403 406 408 411 413 414 415

13

Data Integrity Requirements to Support Master Planning and Scheduling 417 What Is Data Integrity and Why Is It Important?

418 Gaining Control and Integration Points 422 The Four Pillars of Data Integrity 425 Applying the Four Pillars of Data Integrity in Support of Master Planning and Scheduling 438 Summary 452 14

Integrated Business Planning 455 Integrated Business Planning Process Elements in Brief Workable, Adjustable Plans Master Supply Planning Integrated Business Planning and the Master Supply Schedule Synchronizing and Assessing Demand and Supply Measuring Accuracy and Performance The Evolution of Integrated Business Planning

457 466 468 470 481 487 495

xviii

Contents 15

Resource Requirements Planning and Rough Cut Capacity Planning 499 Know Before You Go Rough Cut Revealed The Rough Cut Process Creating the Resource Profile Finalizing the Resource Profile Capacity Inputs Overloading Demonstrated and/or Planned Capacity Rough Cut Capacity Planning at the Master Planning and Master Scheduling Levels Resource Requirements and Rough Cut Capacity Planning Graphs Using and Working the Rough Cut Capacity Plan Simulations—­Rough Cut Capacity Planning Screen and Report Formats Rough Cut Capacity Planning at a Process Company (Industry Example) The Benefits and Limitations of Rough Cut Capacity Planning Implementing the Rough Cut Capacity Planning Process Closing Comments Regarding Resource Requirements Planning and Rough Cut Capacity Planning

500 502 502 505 512 514 520 522 529 533 538 540 543 551 554 555

16

Supply Management and Aggregate Master Planning 559 Supply Management and Master Planning in Action The Impact of New Product in Supply Management and Master Planning Inventory Projection and Planning Will the Plan Work?

Product-­Driven, Disaggregated Inventory Planning Product-­Driven, Aggregated Backlog Planning Product-­Driven, Disaggregated Backlog Planning Production-­Driven Environments Reviewing and Approving the Aggregate Supply Plan Interplant Product Integration Key Performance Metrics—­Calculations, Colors, Standards Should Companies Have Supply Managers and/or Master Planners?

565 567 572 575 577 579 585 589 591 592 597 598

Contents

xix

17

Demand Management and Aggregate Master Planning 603 What Is Demand Management?

The Impact of New Product in Demand Management Master Launch Plan and Pipeline Funnel Examples for New Products Problems with the Demand Forecast The Impact of Demand Bias on Supply Chain Management Coping with Forecast Inaccuracies Reviewing and Approving the Aggregate Demand Plan It’s About Quantities It’s About Time Demand and Forecast Adjustment Customer Order Processing with Process Flow Diagram Example Possible Problems Caused by Abnormal Demand Customer Linking Getting Sales Pipeline Control Distribution Resource/Requirements Planning Available-­to-­Promise ATP with Two Demand Streams Should Companies Have Demand Managers?

603 608 609 614 615 617 619 621 623 631 637 640 642 645 646 655 659 663

18

The Proven Path to a Successful MPS Implementation (Phase 1) 669 From the Original Implementation Plan to the Current Proven Path The Proven Path to Successful Operational Excellence The Decision Point Going on the Air The Former Proven Path to Master Planning and Scheduling in a Class A Operational Excellence Environment The Journey to Excellence—­Today and Tomorrow Oliver Wight’s Class A Integrated Planning and Control Milestone The Proven Path (3rd Version) to Successful Supply Chain Management and Master Planning and Scheduling Implementation Phase 1: Lead Phase (Understanding and Committing)

669 671 673 675 676 679 681 683 685

xx

Contents

Company Vision of Operations (A Modified Client Example) Case for Change (A Modified Excerpt from a Client Example) Segue to . . .

The Proven Path to a Successful MPS Implementation (Phase 2) Influencers Transform MPS Process Design and Structure

687 696 702 702

19

The Proven Path to a Successful MPS Implementation (Phase 2) 705 Methodology for Implementing Change Revisited 705 Phase 2: Transform Phase (Process Designing and Structuring) 707 Policy, Flow Diagrams, Procedures, Work Instructions, and Metrics Defined 731 Segue to . . .

741 The Proven Path to a Successful MPS Implementation (Phase 3) Users Own MPS Launch and Measures 741 20

The Proven Path to a Successful MPS Implementation (Phase 3) 743 Methodology for Implementing Change Revisited—­Again!

Phase 3: Own Phase (Launching and Measuring) Deterrents to Successful Implementation of the Master Planning and Scheduling Process and Supporting System Technology The Master Planner’s and Master Scheduler’s List of Responsibilities Putting It All Together to Ensure Success—­Guaranteed An Aggressive Master Plan and Schedule for the MPS Implementation The Variables of a Master Planning and Scheduling Implementation Epilogue

Order from Chaos 779 Final Thoughts – People and Process and Profession 783 Appendix A Master Planning and Scheduling Process and Performance Standards

809

Appendix B Master Planning and Scheduling Improvement Initiative Task Listing

817

Appendix C Master Planning and Scheduling Policy, Procedure, and Flow Diagram

827

743 745 762 764 768 771 774

Contents Appendix D Master Planning and Scheduling

831

Appendix E Supply Chain Management Overall Process Flow Diagram (An Example) Appendix F Master Planning and Scheduling Process Flow Diagram Examples Appendix G Master Planning and Scheduling RACI Examples

845

851

Appendix H Master Planning and Scheduling Spinoff Task Team Charter

855

Appendix I Master Planning and Scheduling Oliver Wight International Offerings Founders’ and Co-Authors’ Biographies 859 Glossary

865

Index

895

843

xxi

Acknowledgments

You’re never too old to set another goal or to dream a new dream!

We are jointly grateful to a number of people who have shaped as well as enhanced our professional careers through education, coaching, and idea sharing. Many of these people are current and past members of Oliver Wight International, of which we have been members for 33 years (John) and 10 years (Eric). One person in particular, George Palmatier, has had more influence in our combined careers than the many others.

George Palmatier, former Oliver Wight associate, was not only a great thought leader but a great simplifier, a quality that Oliver Wight (the man) held with high esteem. George was the man who could stand up in a room full of passionate (and opinionated) Oliver Wight principals, engage in a heated debate on one topic or another, and speak simple truths and principles that would cut right to the heart of the matter. Simply put, when George stood up, we listened. He brought the same gravitas and unique perspective to his clients. We have had the pleasure in our careers, both as clients of Oliver Wight while in industry and as Oliver Wight principals, to listen to and absorb George’s wisdom. We will be forever grateful for his influence, guidance, and friendship.

Additionally, we would like to thank our book reviewers, who spent many hours working their way through parts of this book (the entire book might have been too much for each reviewer in the time allotted in our master plan and schedule!). Those book reviewers are David Goddard, Oliver Wight Americas (OWA); Paul McGuire, OWA; Kris Morgan, Curation Foods, Inc.; Pam Lindsey, OWA; and Ben Sellers, OWA. The book’s original

xxiii

xxiv

Acknowledgments

reviewers should not be forgotten. Those reviewers were Darryl Landvater, OWA and the late Mike Bales, Dick Pugliese, John Sari, and Larry Wilson.

John F. Proud’s Personal Acknowledgments I continue to find myself in a place surrounded by people who care about doing things right and doing the right things. My career has covered 50-­plus years from being a naval officer to a co-­author of this master planning and scheduling book. Without the navy in my background, I’m not sure what type of person I might have turned out to be. Without ­Oliver Wight in my past and present, I again don’t have any idea where I might have wound up. However, I do know one thing: this book and its preceding three editions might never have been written, or, if they were, I would not be one of the co-­authors.

Besides the people already mentioned in my present and past acknowledgments, I want to highlight what a pleasure it was to work with Walt Goddard, Tom Gillen, Al Stevens, Dick Ling, Roger Brooks, Jim Correll, Jerry Clement, Marv Jensen, Bill Pendleton, Tom Allen, Eric Deutsch, and so many others. When I was in learning mode, they taught me.

When I was in listening mode, they talked to me. When I was in teaching mode, they listened to me. When I was in troubled mode, they comforted me. And the story goes on!

Now in 2021, I once again find myself in a very privileged situation. Working for the past couple of years with my colleague, Eric Deutsch, we are proud to release this first and only definitive book covering the complete subject of master planning and scheduling.

Original Acknowledgments for Master Scheduling—­A Practical Guide to Competitive Manufacturing, First (1994), Second (1999), and Third (2007) Editions I am deeply grateful to a number of people who have shaped as well as enhanced my professional career through education and idea sharing. Many of these people are current and past members of the Association for Operations Management (APICS), which I have been a member of for over 25 years. However, two people have had more influence in that career than the many others.

Dick Ling, former Oliver Wight associate and former president of Arista Education and Consulting, exposed me to the real profession of master scheduling. Had I not crossed paths with Dick Ling and several other Oliver Wight associates, I would not have been able to write this book. I learned my master scheduling skills from the best in the industry—­ Dick Ling, Oliver Wight associates, and professional master schedulers working in Class A companies worldwide.

Acknowledgments

xxv

Dick Pugliese, while serving as general manager of a Xerox plant, gave me the opportunity to be part of a Class A Manufacturing Resource Planning system implementation.

It was during this time that I learned how a manufacturing company should work if it is to be successful and achieve Class A results.

Other colleagues and associates have also taught me much about this complex subject.

John Dougherty literally spent hours with me discussing and developing concepts that we hope furthered the industry’s understanding of how important master scheduling is to the manufacturing environment. Walt Goddard, John Sari, and Al Stevens also developed numerous master scheduling concepts over the years and were kind enough to share them with me. Oliver Wight associates Tom Gillen, who helped me with the engineering issues, and George Palmatier, who made sure I did justice to the demand side of the business, also deserve recognition.

Several other people who I would like to thank and acknowledge are: Dick Luecke, who was instrumental in taking my thoughts and structuring them into sentences and phrases that actually make sense; Lori Stacey, who spent hours upon hours typing, correcting, retyping, and recorrecting the lengthy manuscript; the Oliver Wight Publications staff, who have been effective, cooperative, patient, and understanding throughout this book’s entire process; and the John Wiley & Sons staff, who added the professional flavor.

Once the manuscript draft was available, Mike Bales, former vice-­president operations, G & W Electric; Dick Pugliese, retired executive; John Sari, Oliver Wight Alliance; and Larry Wilson, Oliver Wight Americas principal worked their way through the many pages, challenging my thoughts and recommending changes as appropriate. Without their critical input, this book would be less than the book it is today. My “severest and best critic” was former Oliver Wight associate Darryl Landvater, who challenged not only content but organization. A special thank you goes to Darryl for his effort, time, and patience.

Another special thank you goes to my original editor and publisher, Jim Childs, as well as my current editor, Matt Holt, who I am sure I caused great grief when I missed several milestones along the way—­What? The person who wrote the book on valid master schedules was “past due”? If you ever doubt how important it is for a manufacturing company to create valid schedules and then perform to these schedules in order to satisfy its customers, just give my publisher a call. In addition to Jim Childs, Dana Scannell was the first to give me the chance to write this book and encouraged me to keep going when my frustrations were high and my stamina was low.

My final thank you goes to my lovely (late) wife, Darlene, who gave me the time necessary and seldom complained about being left alone while I worked in the office. Darlene was truly my best friend, and without her understanding and encouragement, I would never have found myself in a position to write these acknowledgments for what I still believe was the first and only definitive book covering the subject of master scheduling.

xxvi

Acknowledgments

Eric Deutsch Personal Acknowledgments I am deeply grateful for those who had faith in me and enabled me to grow and learn throughout my career. Their companionship, coaching, and inspiration was, and is, invaluable to me.

I began my career at Novagen, Inc., a growing biotech company in Madison, Wisconsin.

Tom Foti hired me as a dish scrubber and lab assistant while I was working to attain my Bachelor of Science degree in Bacteriology from the University of Wisconsin–Madison.

When I graduated, he hired me as a laboratory production scientist, but soon I took on other supervisory and operational responsibilities outside of the lab under his guidance.

Tom and I worked on many projects (scientific, operational, software implementations, etc.) and had many adventures over the ensuing years. It was then that I learned, largely through the school of hard knocks and a little scientific problem solving, how to plan and schedule for manufacturing in a growing company. I owe Tom a huge debt of gratitude.

Tim Moser seemed to appear at just the right time in my career. Tim was an intern at Novagen via the University of Madison School of Business and was hired full time after attaining his MBA in Supply Chain Management. Tim opened my eyes to the true profession of supply chain management. It was through Tim and his network of supply chain professionals that I took my “subsistence understanding” of manufacturing management to a true appreciation of the science behind operations and supply chain management. I must also thank Pete Lukszys for bringing Tim into the Novagen organization and providing his own guidance and leadership to me over the years.

Novagen was the target of several acquisitions over time, ultimately by Merck KGaA. There are many people I would like to thank: Bob Mierendorf and Lisa Johnson for showing executive leadership with heart, compassion, and integrity; Tom Van Oosbree for his leadership, scientific guidance, and being such an all-­around great human being; Aditya Sobti (now an Oliver Wight principal) for his faith and guidance through lots of changes and trying times. And all of the friends and colleagues that put up with my mistakes, grew with me, and provided companionship along the way.

I had the privilege of leading the IBP/S&OP implementation in the North American divisions of Merck KGaA and we partnered with Oliver Wight in that endeavor. As a client of Oliver Wight and since joining Oliver Wight Americas, several Oliver Wight principals have been enormously generous in their guidance, mentorship, and friendship. In addition to George Palmatier, who was acknowledged earlier, Donald McNaughton and David Goddard provided valuable guidance and friendship during the Merck IBP/S&OP implementation as our coaches and as my colleagues through the present day—­class A guys all the way. I thank Coco Crum for her leadership, guidance, and friendship and

Acknowledgments

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for teaching me the principles of demand management. It is a great honor to be working alongside all of my Oliver Wight colleagues and to continue to learn from each of them.

John Proud, my generous and patient colleague and co-­author for this fourth edition, has given me an immeasurable gift. His generosity in sharing his decades of experience and knowledge with me, both as a client and an Oliver Wight principal, is beyond compare. The faith and generosity that he has shown to include me in the writing of this fourth edition is also beyond compare. I am deeply humbled and grateful for this opportunity.

Finally, to my wife Claudia, for her love, support, and patience while I was writing the fourth edition of this book. I’m a lucky man!