AAOM Handbook

Purpose

To specify an optimised schedule for delivering Performance Targets.

Quantity

The deliverables from setting an Operating Master Schedule shall include; • One set of schedule activities for the major (significant impact on outputs and costs) work packages of the Production and Service Strategies and random events. • One set of schedule activities that characterise, describe and summarise the minor (low impact on outputs and costs) work packages of the Production and Service Strategies and random events. • One baseline and one optimised schedule of the frequency and timing of occurrence of the above activities for the specified forecasting period. • One baseline and one optimised forecast of the quantity and timing (probability distribution) of the output produced by the schedule. • One baseline and one optimised forecast of the quantity and timing (probability distribution) of the major resources (labour, materials or equipment) required for the schedule. • One confidence level for the optimised schedule delivering the output Performance Targets. The deliverables shall meet the following requirements; • the time horizon of the Operating Master Schedule shall be long enough to cover the lead time for preparation and completion of any event that will impact the delivery of Performance Targets, and in any case not less than 3 years, • the forecast of the frequency and timing of occurrence for the activities shall be in the form of a Gantt chart, • the detail of activity breakdown in each interval of the schedule time horizon shall be sufficient to deliver the confidence level required for the forecasts for the period (typically higher confidence close to the present and less confidence further in the future), • as a guideline, the Gantt chart view of the schedule would typically have a minimum time scale unit of one week for the first year, 1 quarter for the subsequent 2 years, and 1 year thereafter • the major schedule activities shall comprise the 20% of items that are likely to deliver 80% of the impact on process output and costs, • the minor schedule activities shall summarise the 80% of the items that are likely to deliver 20% of the impact on process output and costs, • a baseline Operating Master Schedule shall be developed around the trigger parameters and durations for Work Packages derived from the Production and Service Strategies for major schedule activities and the average grouped Work Package interval and duration for the minor schedule activities, • forecasts for unpredicted events shall be included at the Business Structure level for which confident predictions can be made, i.e. the Quality

© McAlear Management Consultants 2006

Operational Planning: Set Operating Master Schedule

Updated: August 2018

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