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SCMH Section 1.1 IntroductionRevision Letter: ARevision Date: 01-APR-2014

www.iaqg.org/scmh  Section 1.1.1

Sales, Master Scheduling and Sequencing

Introduction:

Manufacturing companies conscientiously attempt to have a good planning andcontrol system, however efforts are often misdirected. It happens, in part, becausemany companies still operate in a reactive mode, in which decisions, priorities, andschedule are driven by the day to day fluctuations of the marketplace, momentarychanges in the plant, and suppliers’ non schedule adherence. Well-known situationsare for example:

- Hot lists to set priorities in getting products out of the door and that causemajor disruptions in manufacturing

- Shipment dates are missed and customers complain- Unplanned overtime- Poor quality issues

The main objective of a Manufacturing Planning and Control System (MPCS) is toreconcile demand with supply to ensure the organization will always be able todeliver to its commitments and will not commit if it is not capable.

The development of an effective MPCS is key to the success of any manufacturingcompany. The MPCS is concerned with planning and controlling all aspects of

manufacturing, including managing materials, scheduling machines and people, andcoordinating suppliers and key customers.

 An effective planning and control system includes 5 major levels and associatedsequences as described in MRP2 model. They are summarized in the followingtable:

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8/18/2019 Introduction AR1014

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SCMH Section 1.1 IntroductionRevision Letter: ARevision Date: 01-APR-2014

www.iaqg.org/scmh  Section 1.1.1

Sales, Master Scheduling and Sequencing

Sales, Master Scheduling and Sequencing covers:

- Demand management, which includes forecasting

- Sales and Operations Planning, which integrates the sales, development,manufacturing, sourcing and financial plans, and utilises resource planning

- Master Production Scheduling which includes development of a master

production schedule and utilises rough-cut capacity planningThe objective is to match supply and demand in terms of both volume and productmix, on an intermediate-long term horizon. The focus is on providing material andproduction capacity needed to meet customer needs.

Shorter-term aspects are not treated in this section and will be covered later inSection 7 Plan & Manage under the topic Capacity Management, Ordering andLogistics in the SCMH.

Instructions for Use:The section contains the following documents:

  A Sales, Master Scheduling and Sequencing Guideline in a PDF format

   An assessment for the demand planning process, the sales and operationsplanning process and the master production scheduling process. 

Disclaimer:The intention of this section is to assist organizations with understanding effectiveSales, Master Scheduling, and Sequencing processes and is not intended to be a

requirement, nor auditable.

IAQG Product and Supply Chain Improvement Strategy Stream &Supply Chain Management Handbook SCMH Project Team

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