In our series on Integrated Business Planning (IBP) we explained why we think IBP is important: it enables you to extend your planning horizon in order to anticipate uncertainties in an early stage. Our previous white paper  discusses, through a case at Freudenberg, what elements play a role within IBP. In the current whitepaper we explain the specific role of planning & scheduling in more depth, specifically focused on the manufacturing industry.

Within IBP planning & scheduling translates predictions made by forecasting into actionable production plans. As discussed in our previous whitepaper, IBP forecasting, if done accurately, enables stability throughout the supply chain. Planning & Scheduling however creates reliability. A well-structured and organized planning & scheduling process ensures that production is able to meet (forecasted) demand.

However, when implementing planning & scheduling, many uncertainties can stand in the way of a smooth process. For instance, inaccuracy of your forecast; uncertainty in the delivery of your suppliers; and internal discussions about which customer to prioritize if your maximum production capacity is reached. Making sure the right materials and products are at the right time and place, while ensuring optimal efficiencies in your own processes, can be very complex.

Both planning & scheduling play an important role when improving your supply chain process. While your planning process probably will take place weeks or even months before the actual production, scheduling is more about the short-term and determines the  allocation of production (e.i. what product will be produces at what machine).

This paper provides you with a better understanding towards implications and how to overcome those challenges.