SCMH Section 1.

1 Introduction
Revision Letter: A
Revision 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 and
control system, however efforts are often misdirected. It happens, in part, because
many companies still operate in a reactive mode, in which decisions, priorities, and
schedule are driven by the day to day fluctuations of the marketplace, momentary
changes in the plant, and suppliers non schedule adherence. Well-known situations
are for example:
- Hot lists to set priorities in getting products out of the door and that cause
major 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 to
reconcile demand with supply to ensure the organization will always be able to
deliver 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 manufacturing
company. The MPCS is concerned with planning and controlling all aspects of
manufacturing, including managing materials, scheduling machines and people, and
coordinating suppliers and key customers.
An effective planning and control system includes 5 major levels and associated
sequences as described in MRP2 model. They are summarized in the following
table:

SCMH Section 1.1 Introduction

Revision Letter: A
Revision 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 planning

The objective is to match supply and demand in terms of both volume and product
mix, on an intermediate-long term horizon. The focus is on providing material and
production capacity needed to meet customer needs.
Shorter-term aspects are not treated in this section and will be covered later in
Section 7 Plan & Manage under the topic Capacity Management, Ordering and
Logistics 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 operations
planning process and the master production scheduling process.

Disclaimer:
The intention of this section is to assist organizations with understanding effective
Sales, 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