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 Criteria Readiness 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 – SMED SMED 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 Stability Total 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 Constraints Poor Scheduling Can Cause Bottlenecks Moving Bottlenecks Scheduling Moving Bottlenecks Summary SECTION 5 – Getting to Success Chapter 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 Factors Scheduling Strategy Critical Success Factors Scheduling System Critical Success Factors Cultural And Behavioral Critical Success Factors Chapter 30 Success Stories – Examples Of Scheduling Best Practices Dean 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

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