Saturday, July 14, 2007

Why Scheduling Doesn't Work

The most important thing to explain to people not familiar with manufacturing and distribution scheduling is the fact that the environment is one of constant change. Most production schedules start with a forecast, and the forecast is typically wrong. To put it simply - all forecasts are wrong. As each day goes by, sales and new orders develop - customer requirements and shipping requests change. Manufacturing lots are moved ahead and others are pushed back. Customer's breakdowns, stockouts, and other emergencies are never in the forecast.

Every change in a production schedule cascades into changes in supporting schedules, and changes in the suppliers schedule. Suppliers often have delivery problems of their own - after all, they are manufacturing companies too!

There is no way for a manual system to cope with the constant changes. Manufacturing companies can compensate for the unknown by keeping extra inventory, or operating with an order backlog to keep ship dates far enough in the future to cover uncertainties. These actions lead to suboptimal financial performance and/or to less than satisfactory customer service.

The manufacturing environment is one of constant change. Synchronous experts are well experienced in manufacturing resource planning (MRP II) and techniques to turn a fuzzy forecast into practical manufacturing schedules. Give us a call, send us an information request at Sales@SynchronousLLC.com, or go to our website www.SynchronousLLC.com to review our capabilities profile.

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