1st Edition
Production Scheduling for the Process Industries Strategies, Systems, and Culture
This book is aimed at manufacturing and planning managers who struggle to bring a greater degree of stability and more effective use of assets to their operations, not realizing the degree to which production scheduling affects those objectives. It has been reported that 75% of the problems on the manufacturing floor are caused by activities outside the plant floor. Poor production scheduling strategies and systems are often the biggest contributors to the 75%.
The book explains in detail that no scheduling strategy, and especially no transition to a different and better scheduling strategy, will succeed without strong commitment and guidance from senior leadership. Leadership must understand their active role in the transition, that people will feel uncomfortable and even threatened by change, and that they will need to be measured by different standards. Effective scheduling requires that following the schedule and production to plan is more important than trying to maximize each day’s throughput.
The book explains the advantages of a structured, regularly repeating schedule: how it can increase throughput, right-size inventory based on cycles and variabilities and therefore make it more usable, and improve customer delivery. It will explain the trade-offs between throughput, inventory, and delivery performance, how those trade-offs are actually decided in production scheduling, and how an appropriate scheduling strategy can make the trade-offs and their ramifications visible. It discusses several popular structured scheduling concepts, their similarities, and differences, to allow the readers to decide which might fit best in their environments.
In addition, the authors discuss what makes an appropriate scheduling software system, and why a package designed for structured scheduling offers capabilities well beyond the Excel workbooks used by many companies, and how it offers much more design capability and ease of use than the finite scheduling modules in SAP or Oracle.
Finally, the authors offer a proven roadmap for implementation, critical success factors necessary to achieve the full potential, and give examples of operations that have done this well. In addition, a guide for leaders and managers post-implementation is provided to help them fully exploit the advantages of a structured, repeating scheduling strategy.
SECTION 1 – Introduction
Chapter 1 Business Imperatives – Why Scheduling Matters
The Scheduler’s World has been turned upside down
The Challenge of Scheduling
Scheduling is even more Important
Scheduling is a Foundation of Manufacturing Performance
Why Now?
Chapter 2 Characteristics of Process Operations - and Scheduling Challenges
Changeover Difficulty
Starting Up After A Changeover
Sanitation Cycles
Shelf Life Constraints
Multi-Step Manufacturing
Balancing Limited Resources
Divergence Vs Convergence
Product Differentiation Points
Limited Extra Capacity
Summary
Chapter 3 Overview of Production Strategies
Chapter 4 Scheduling Processes and Software
Production Planning
Scheduling
Supporting Processes
Scheduling Software
Goal Seeking Algorithms
Repetitive Scheduling
The Scheduling Process
Software Selection
Chapter 5 Example Process
The Process
Scheduling Information Flow – Communication Between Systems
The Products
Product Differentiating Characteristics
Cultural Challenges
SECTION 2 – Scheduling Strategies
Chapter 6 Repetitive Scheduling Strategies
Product Wheels
Product Wheel Design
Synergy with Lean
Benefits of Product Wheels
Repetitive flexible Supply (RfS)
Rhythm Wheels
Fixed Sequence Variable Volume (FSVV)
Summary
Chapter 7 Dealing With Disruption
The Nature Of Disruption
Ability To Deal With Disruption
An Example - The Story Of P&G Luvs Diapers
SECTION 3 – Scheduling Processes, Systems, Software
Chapter 8 The role of Forecasting
Forecast value add
Bias and Accuracy
Coefficient of Variation
Different Forecast Goals
Choice of Demand Forecasting Unit
Product Transitions
Product Segmentation and Forecasting
Summary
Chapter 9 The Role of Inventory
Components of Inventory
Managing Inventories
An Inventory Management Example
Cycle Stock and Safety Stock
Calculating Safety Stock
Variability in Demand
Seasonality
Variability in Lead Time
Combined Variability
Cycle Service and Fill Rate
Safety Stock and Lot Size Impact
Summary
Chapter 10 Typical Scheduling Process Steps
The Planning and Scheduling Process
Exception Management
Preparing to Plan
Creating the Production Plan
Creating the Detailed Schedule
Communicating the Plan
Preparing for Tomorrow
The Detailed Scheduling Process
Scheduling the Constraint
KPI Based Algorithms and Solvers
Resources
Evaluating and Adjusting the Schedule
Releasing Firm or Committed Orders
Chapter 11 Multi-Level Scheduling
Product mix and Moving Bottlenecks
Types of Scheduling Problems
More than Two Levels
Batch and Lot Size Restrictions
Distribution Rules
Logical Relationships between Levels
Linking Between Activities
The Multi-Level Scheduling Process
Scheduling with Inventory Constraints Between Levels
Chapter 12 Tanks, Bins, and Flow Paths
Tank and Bin Scheduling
Tank Scheduling Example
Specific Flow Paths
Simplifying the Complex
Chapter 13 The Role of ERP in Planning and Scheduling
Assumption of Infinite Capacity
Daily Time Resolution
Assumption of Independence
ERP Scheduling Modules
Repetitive Scheduling in an ERP System
Quality Management
System of Record
Chapter 14 Excel as a Finite Scheduling Tool
Business Continuity
Critical Features of Scheduling Software
Issues with Excel
Visibility of Attributes and Sequencing
Time Offsets
Lot Sizing and Multi Level Scheduling
Summary
Chapter 15 Software Designed for Production Scheduling
Supporting Processes
Scheduling Requirements
Repetitive Scheduling Requirements
Multi-Level Requirements
Software Selection
Chapter 16 Critical Ingredients, Raw Materials, and Components
Availability Checking
Critical Materials
Firm Zone Strategy
Strategy Examples
Summary
Chapter 17 Scheduling Software - Security and Privacy
Security
Privacy
SECTION 4 – Prerequisites to Good Scheduling
Chapter 18 The Role of the Plant Leader
Future-proof the Plant
Dealing with Disruption
Collaboration
Physical Triage Meetings
Implementing a virtual team in the plant
What is needed of the plant leader?
Reinforcing Repetitive Patterns of Production
Conclusions
Chapter 19 Scheduling Readiness CriteriaReadiness and Sustainability
Project Management Prerequisites
Project Roles
Readiness Examples
Chapter 20 Accessible, Accurate, and Complete Data
Master Data and Transaction Data
Examples of Data Accuracy and Timeliness Problems
Data Audits or Checking Practices
Documenting the Process
Checking Data against a Standard
Chapter 21 Effective Production and Capacity Planning
The Importance of Planning
Resolving Overloads
Automated Planning
Planning Example
Characteristics of a Good Production Plan
Managing Inventory to Targets and Constraints
Summary
Chapter 22 Workforce Engagement
Selling The Idea
Designing The New Process
Executing The New Process
Chapter 23 Changeover Reduction – SMEDSMED And Its Origins
SMED Concepts
Process Industry Changeovers
Automotive Fluids Packaging
Diaper Manufacturing
SMED Beyond Product Changes
A Non-Manufacturing Example
SMED Applied To Blue Lakes Packaging
Summary
Chapter 24 Production StabilityTotal Productive Maintenance
TPM Relevance In Process Industries
Overall Equipment Effectiveness (Oee)
Non-Standard Oee Metrics
Summary
Chapter 25 Cellular Manufacturing
Typical Process Plant Equipment Configurations
Cellular Manufacturing Applied To Process Lines
Synthetic Sheet Manufacturing Example
Virtual Cell Implementation In A Synthetic Rubber Production Facility
Would Cellular Flow Apply To The Salad Dressing Operation?
Group Technology
Summary
Chapter 26 Managing Bottlenecks and ConstraintsPoor Scheduling Can Cause Bottlenecks
Moving Bottlenecks
Scheduling Moving Bottlenecks
Summary
SECTION 5 – Getting to SuccessChapter 27 Leading Scheduling Improvements to Drive Value: Five Steps for Leaders
Laying the foundations for effective scheduling
Five Steps to Value for Leaders
Step 1: Layout the Improvement Goals and Plan
STEP 2: Work on the Culture
Step : Improve scheduling
Step 4: Take stock
Step 5: Sustaining the Gains
Chapter 28 Where to Begin - A Roadmap to Project Success
Initial Preparation
Scheduling System Design
Strategy Design
Final Preparation
Sustaining
Summary
Chapter 29 Critical Success FactorsScheduling Strategy Critical Success Factors
Scheduling System Critical Success Factors
Cultural And Behavioral Critical Success Factors
Chapter 30 Success Stories – Examples Of Scheduling Best PracticesDean Bordner – Nature’s Bounty
Mike Evans - Bellisio Foods
James Overheul –Bg Products
Ryan Scherer – Appvion
David Kaissling - Shearer’s Snacks
Raymond Floyd – Exxon Mobil
Ethylene Co-Polymers – Sabine, Tx
Martin Fernandes - Dow Chemical
Dave Stauffer - Advanced Food Products
Biography
Peter L. King is the president of Lean Dynamics, LLC, where he has spent the last 14 years applying lean concepts and tools to a diverse group of clients in the chemical, food & beverage, consumer products, and nutraceutical industries. Prior to founding Lean Dynamics, Pete spent 40 years with the DuPont Company, in a variety of control systems, manufacturing automation, continuous flow manufacturing, and lean manufacturing and lean supply chain assignments. The last 18 years at DuPont were spent applying lean techniques to a wide variety of products, including sheet goods like DuPont™ Tyvek®, Sontara®, and Mylar®; fibers such as nylon, Dacron®, Lycra®, and Kevlar®; automotive paints; performance lubricants; bulk chemicals; adhesives; electronic circuit board substrates; and biological materials used in human surgery. On behalf of DuPont, Pete consulted with key customers in the processed food and carpet industries.
Pete retired from DuPont in 2007, leaving a position as Principal Consultant in the Lean Center of Competency. Pete received a bachelor’s degree in electrical engineering from Virginia Tech, graduating with honors. He is Six Sigma Green Belt certified (DuPont, 2001), Lean Manufacturing certified (University of Michigan, 2002), and is an APICS Certified Supply Chain Consultant (CSCP, 2010). He is a member of the Institute of Industrial and Systems Engineers, the Association for Manufacturing Excellence, the Association for Supply Chain Management, and APICS.
Pete has authored four books published by Productivity Press: Lean for the Process Industries, first and second editions (2009, 2019), The Product Wheel Handbook (2013), and Value Stream Mapping for the Process Industries (2015). He has authored a dozen magazine articles, and is a frequent presenter at technical society conferences. Pete is an avid runner, having completed a marathon and more than a hundred 5K, 5 mile, and 10K races.
He currently resides in Dewey Beach, DE, with his wife of 42 years, Bonnie H. King.
Mac Jacob has implemented four generations of Advanced Planning and Scheduling Software and SAP MRP II at over 100 Procter & Gamble sites worldwide. He started as a project engineer at a manufacturing site, and moved through assignments of production line manager, production planning manager, site logistics manager, and North American Planning Manager for Luvs Diapers. He began to see how the lack of supply chain systems prevented the Diaper business from executing its product and manufacturing strategy and led a project to improve P&G’s planning systems. He was the business leader, developed the business processes, and wrote the original training materials for most of P&G’s supply chain processes: Production Execution, Warehouse and Shipping, Distribution Requirements Planning, Site Planning, Category Planning, and Supply Chain Master Data.
Mac is a recipient of P&G’s Magnus Award for lifetime contribution to supply chain improvement. He is APICS Certified in Production and Inventory Management (CPIM), with the SCOR-P endorsement. He is certified by Oliver Wight as an MRP II instructor and was a P&G Lead Instructor and Master for Site Planning, DRP, and Supply Chain Master Data.
Since retiring from P&G, Mac has worked on several global supply chain management projects as a consultant and is currently the Head of Product for Phenix Planning and Scheduling.
Mac graduated Cum Laude from the University of Michigan with a degree in Naval Architecture and Marine Engineering. He was on the sailing team and captain of the ski team. He earned his MBA from Xavier University. He now lives in Harbor Springs, Michigan, with his wife of 39 years, Suzie. When not designing and implementing production planning software, he is active in sailing, bicycling, skiing, and as an assistant coach of the Harbor Springs High School Ski Team.
Noel Peberdy has had a multi-faceted career across the value chain of process manufacturing operations, focusing on people and process, harnessing technology to drive transformative change. His early career centered on solving complex system-level problems using dynamic simulation to optimize mineral processing, metallurgical and food/beverage plants, and operations in deep underground mines. Building a plant in the computer, using mathematical models to simulate the reality of the system, led to his career focus - "connecting the dots" and "bridging silos." He was also fortunate to have led numerous rescue operations on failed or troubled projects -- A newly developed gold mine in which the extraction plant control system didn’t work and put people’s lives at risk; An offshore gas platform on which the safety systems and emergency shutdown systems did not work; A Brewing plant that was performing well below potential. Navigating through these crises – still meeting key dates – demanded out-of-the-box methods, ruthless focus on the ingredients for success – and importantly, an awareness of the interdependencies between the moving parts – People, Process, Technology, and Data aspects – to architect long term success.
At the other end of the spectrum, he has had a central role in conceiving, designing, and bringing several transformative greenfields projects to life. This gave him and his team opportunities to architect plants of the future, fully realizing Stages 3-to-4 capabilities and performance. Production scheduling in a process manufacturing operation is a complex systems-level challenge. In his consulting work, Noel realized that scheduling is the most significant disconnect in the process manufacturing value chain. Noel has an MSc in Engineering in Distributed Computer Control Systems from the University of Cape Town. He has founded four successful companies In Africa and North America.
He is an avid outdoor person. Canoeing and hiking in the wilds of Canada is a passion. He has been married to Ellie Zweegman for 37 years, with whom he has three children. He lives in Southern Ontario, Canada.
Don’t underestimate the revolutionary nature of the concepts described and recommended in this book. This should be required reading for leaders in operations roles. Had more of our manufacturing organizations been built on this structured scheduling methodology, I believe our [Covid] response would’ve been stronger, quicker, and far less painful to our manufacturing teams, sales teams, customers, and consumers.
-- Dave Rich, VP, Strategic Sourcing & Fulfillment, Litehouse Foods
Effective production scheduling is a critical tool to optimize product-to-product transitions and one of the most critical factors to achieve truly effective use of your production resources. Peter King made a significant contribution to understanding and improving production scheduling in his first book. I have personally used his concepts with great benefit. Peter, Mac, and Noel have continued that work in this fine new book that will surely be of great value to process operators.
-- Raymond Floyd, SVP Suncor Energy (Retired) Current member of Manufacturing Hall of Fame, The Shingo Academy and the Baldrige Award Board of Overseers
By implementing planning wheels we were able to move from fill rates of ~75% to over 99% reliably in a 3- month timeframe. The approach to working with people on the floor captured in this book is key to managing the change needed to stabilize manufacturing. Having a predictable cycle of changeovers is huge to improve performance and improve morale on the factory floor.
--David Kaissling, Chief Supply Chain Officer, Shearer’s Snacks; and head of supply chain for several fortune 500 companies.
… a comprehensive resource on the "how" and "why" of production scheduling and how it enables improved manufacturing performance and business success.
-- Dave Rurak, Executive VP, Integrated Operations and Supply Chain, W. L. Gore & Associates
In my 35+ years in supply chain, it is rare to come across such an esteemed and knowledgeable group of practitioners in the area of production scheduling. This book is an outstanding reference and step by step guide on how to plan and schedule any repetitive manufacturing operation. … a "must-read."
-- Paul Baris, VP Planning Strategy, enVista
The concept in this book along with the Phenix planning tools allowed us to move very complex scheduling rules from head knowledge into a cloud-based system. It has improved our speed of scheduling and the consistency of scheduling to our established rules.
-- Dave Stauffer, Director of Supply Chain, Advanced Food Products
This book is a wonderful overview of the benefits of Product Wheels including all the pressure testing our wheels have had in the most disruptive of environments. An international pandemic, labor compression, and record inflation have really made plant scheduling even more challenging than it has ever been. Product Wheels have been the backbone of which to "grab on to" for these difficult environments.
-- Mike Evans, Senior VP Operations, Bellisio Foods
Production scheduling has long been a massively neglected part of the equation for maximizing customer service and shop floor performance, while minimizing cost and capital. [This] is an exceptional read on the value, mechanisms and alternatives to optimize shop floor performance. Kudos! to King, Jacob and Peberdy for providing such a comprehensive and unbiased handbook to practitioners and leaders everywhere!
-- Mike Wittman, Formerly Chief Supply Chain Officer, Pinnacle Foods, now Senior Advisor, Boston Consulting Group
