AAOM Handbook

An Operating Master Schedule constructed using the above principles will comprise; • the relatively few elements, representing activities that have a major impact on process performance and costs, and • a number of elements that characterise and summarise the remaining activities. The process of forecasting the occurrence of activities in the schedule, with the exception of dependency based triggers, treats each activity independently. Hence, the resulting (baseline) schedule may not align all of the schedule elements to maximise the synergies and minimise the potential conflicts between packages. However, an experienced person reviewing the baseline schedule can often readily identify such synergies and conflicts. In this case it is possible to adjust the scheduling of elements, within the range of tolerance allowed by the Production and Service strategy, in order to optimise output and/or resourcing for the schedule. The Work Package specifications developed when setting the Production Strategies include the identification of the operating parameters (utilisation, operating rate, quality, etc.) and major resources (labour, equipment, materials) required for the Production work. The work package specifications developed when setting the Service Strategy, and for unpredicted events, include the identification of the impact on operating parameters (availability, operating rate, quality, etc.) and major resources (labour, equipment, materials) associated with the activity. If the operating parameters and major execution resources are assigned as ‘resources’ to the activities in the Operating Master Schedule, a forecast of the quantity and timing of outputs produced, and resources required, can be produced. A basic principle of the Operating Model is that Service Work cannot be displaced by Production work, since by definition Service work is necessary for future Production work to occur. Service work can be adjusted in the schedule, to minimise its impact on Production work, but not displaced. Hence, in instances where a Service Work Package in the schedule would prevent or constrain Production work (by requiring downtime or a lowered operating rate, quality or efficiency) the Operating Master Schedule must recognise this constraint in the modelling of the process output. Due to the impact of variation in activity parameters forecasts of output and resourcing may be in the form of a run chart over time and probability distribution for a reporting interval. These probability distributions can be used to validate that the Production Strategy, Service Strategy and the Operating Master Schedule can deliver the output Performance Targets at the required level of confidence, and to help define and manage resourcing strategies. The Operating Master Schedule defines the roadmap to the achievement of the Performance Targets. We can use the Operating Master Schedule to help us identify where we stand in relation to completion of the intended Production and Service Strategies, and what further work needs to be completed in order to deliver the target performance.

© McAlear Management Consultants 2006

Operational Planning: Set Operating Master Schedule

Updated: August 2018

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