Mike Liddell, CEO of Suncoast Technology Partners, has published a book entitled The Little Blue Book on Scheduling, in which he explains several broad principles relatable to the scheduling of petroleum operations, in a fun and easy to understand manner. In this session, we will discuss these principles and demonstrate their application using H/Sched examples and exercises.

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2. “Scheduling is where the rubber meets the
road” - Mike Liddell (ML)
“Everyone has a plan until they get hit”
– Mike Tyson
“Unless a scheduling system has the built
in logic to model real world business
constraints, it is of no use because it will
give faulty information”
– ML
“Many companies stay in business by
building in huge, expensive buffers”
- ML
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3. 1. The ability to schedule more accurately at the machine level as opposed to the
work center level and to assign different shifts and run speeds for each machine.
2. The ability to schedule each machine finitely or infinitely.
3. The ability to schedule using multiple constraints (such as tooling and operators).
4. The ability to calculate sequence dependent setup times.
5. The ability to schedule precisely (minutes or seconds) as opposed to time
buckets (usually days or weeks).
6. The ability to integrate easily with other systems like ERP and Shop Floor Data
Collection (SFDC).
7. The ability to sequence orders based on due date, priority or some other
attribute.
8. The ability to schedule quickly (minutes or seconds) and maintain a real-time
view of the schedule.
9. The ability to easily make changes such as adding new orders, changing
priorities, adding machine downtimes or completing operations.
10. The ability to synchronize the schedule with material constraints.
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4. Two Kinds of Manufactures:
1. The make-to-stock (MTS) manufacturer
◦ Selling inventories
◦ Group demands into long runs
◦ Relies on inventories and time buckets
◦ ERP (Enterprise Resource Planning) Systems are the
tool of choice; these tool, however, cannot
 help prioritize
 estimate the promise date of new orders
 synchronize material and capacity constraints
“Like driving a car with your eyes closed; the only time you know
you have a problem is when you hit something.” – ML
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5. Two Kinds of Manufactures:
2. The make-to-order (MTO) manufacturer
◦ Selling capacity
◦ Making excess inventory consumes materials and
capacities, making on-time deliveries more difficult
◦ Lean business model
◦ APS (Advanced Planning and Scheduling) Systems are
the tool of choice. H/Sched is one such tool.
“Scheduling is the brain center that drives the operations side of a
manufacturing company.” – ML
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6. The MTO/APS manufacture still
needs an MTS/ERP planning system
Without a planning process the MTO manufacture
may quickly find that there will be times when his
capacity is consumed by low priority orders
“A scheduling system is like a GPS, it will help us get where we want
to go but it won’t tell us where we want to go.” – ML
“A planning system is like a map, it shows us where we want to go,
but cannot account for obstructions along the way” – DT
So just as a map is an overall trip guide, but cannot give us actual turn-
by-turn instructions along the way - an ERP system should be used to
guide and set the objectives of the APS system, but then let the APS
system get us there.
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7. 1. They must handle the level of detail needed to model real world
constraints such as operators and tooling or the ability to calculate
sequence dependent setup times based on multiple product attributes
that may be unique to each company.
2. They must be able to provide advanced functionality, such as custom
sequencing rules, for schedulers who want to get additional benefits
from their systems.
3. They need to be easily customized and modified (think Excel) so that
they can meet the changing requirements of a business without being
orphaned when new versions are released.
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8. “Because most people are comfortable with Excel and it usually doesn’t
cost anything, it often becomes the drug of choice. Like so many other
drugs, however, the side effects can make things much worse and
sometimes even fatal.” – ML
“Excel can create a valid schedule. For that matter a patient person can put
together a valid schedule using cards and a wall. The big problem is the
enormous output of time and energy it takes to update that schedule every
time something changes because, as we know, things change all day and
every day” – ML
“Home-grown EXCEL systems are our biggest competition.” – DT
Two Options Mike Gives:
1. Hire a number of people totally dedicated to manually updating your
schedule several times a day, or
2. Buy a system that does all of that in just a few seconds, every day.”
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9. “The schedule should be automated
to do all the donkey work (the 80%)
but allow the scheduler to use his or
her experience to fine tune the
schedule (the 20%)” – ML
80+% of scheduling is pure simulation.
The 20-% that includes optimization is
often better left to experienced
schedulers.
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10. Developing an
APS System
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11. Developing an
APS System
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12. Developing an
APS System
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13. Developing an
APS System
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14. The Ten Biggest Mistakes Made Implementing Scheduling Systems
1. Not setting up for success. How is success to be measured? Be realistic.
2. Buying a software package because someone else did. Bigger isn’t always
better; just ‘cause it worked for Joe ...
3. Trying to “do it yourself”. Like performing surgery on yourself.
4. Buying an “integrated” solution because it is integrated. The appearance of
integration is only the tip of the iceberg; no one-size-fits-all.
5. Too much design/not enough testing. Move quickly to prototyping.
6. Letting “better” be the enemy of a good solution. 80/20 rule; simulation vs.
optimization.
7. Forgetting that all customers are not created equal. No common
denominator; over generalized systems fail many customers.
8. Did I mention not doing enough testing? Beyond “does the software work?”;
testing with “scripts”.
9. Failing to train adequately. Don’t rely on schedulers figuring out system
capabilities on their own.
10.Believing that successful implementation is the end. Improving scheduling
and customer service is an ongoing challenge.
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15. Scheduling Break Out Session -- Lube Block Flow Diagram
Arab Light
100 MBD
** 75.0%
15.0% Furf 60.0% XLN
LGO XLX
Two **
15 70.0%
DeWax LN
10.0% XLGO MBD 50.0%
LX
CDU 10
40.0% MBD 85.0% HN
10.0% HGO
** Minimize
40.0% Light to
Furf HX 80.0% XHN
5.0% Heavy
XHGO One Stock
10 changes
25.0% 60.0%
MBD XHX 75.0%
DWBS
DAO
50.0%
BS
20.0%
PDA
10 MBD
** Three day minimum run length on any stock
(the longer each run the better)
Mode 1 (20 days per month)
Mode 2 (10 days per month) All Inventories: 50 MB Maximum each stock
!! Minimize mode switches !! All non-lube product streams not shown go to FCC feed
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16. Lube Plant
Runout Spreadsheet
Exercise
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