Managing Operations Supply Chain Management Inventory Management Aggregate Planning Material Requirements Planning Short – Term Scheduling Project Management Maintenance & Reliability
Managing OperationsSupply Chain ManagementInventory ManagementAggregate PlanningMaterial Requirements PlanningShort – Term SchedulingProject ManagementMaintenance & Reliability
CAPACITY PLANNING1) Facility Size2) Equipment Procurement
AGGREGATE PLANNING1) Facility Utilization2) Personnel Needs3) Subcontracting
MASTER SCHEDULE1) MRP2) Disaggregations of
Master Plan
SHORT-TERM SCHEDULING1) Work Center Loading2) Job Sequencing
Long – Term
Intermediate- Term
ST
SCHEDULING pertains to establishing the TIMING
of the use of equipment, facilities, and human activities in an organization
is the final step (in the operations decision-making hierarchy) in the transformation process before actual output occurs
Strategic Importance of Scheduling
1) LOWER COST with better asset utilization
2) FASTER DELIVERY better customer service
3) DEPENDABLE DELIVERY competitive advantage
Scheduling CriteriaThe correct scheduling technique depends on
Volume of orders Nature of operations Complexity of jobs Importance placed on each of the
following scheduling criteria:1) Minimize completion time or process times2) Maximize utilization of staff equipment and
facilities3) Minimize Inventory (WIP & FG)4) Minimize customer waiting time
SCHEDULING Involves assigning DUE DATES to
specific jobs, but many jobs compete simultaneously for the same resources
Scheduling Techniques1. Forward Scheduling – begins as soon
as the requirements are known2. Backward Scheduling – begins with
the due date and schedules the final operation first and the other job steps in reverse order
Scheduling Operations Scheduling encompasses
a) allocating workloads to specific work centers, and
b) determining the sequence in which operations are to be performed
Scheduling tasks are largely a function of the volume of system output
Scheduling in High-Volume Systems High-volume systems: characterized by
standardized equipment and activities that provide identical or highly similar operations or products as they pass through the system (often referred to as Flow Systems)
Goal: obtain a smooth rate of flow of goods through the system in order to get a high utilization of labor and equipment
Flow Shop Scheduling: examples are PCs, cars, appliances, toys, etc.
Scheduling in Intermediate-Volume Systems
Standard Intermediate Made-to- type of Volume Order of Output System (job shop)
More economical to process such items intermittently, thus intermediate volume centers periodically shift from one job to another (e.g. canned foods, baked goods, paints and cosmetics)
3 basic issues: Run size of jobs Timing of jobs Sequence in which jobs are processed
Scheduling in Low-Volume Systems Products are made to order Orders usually differ considerably in
Processing requirements Materials needed Processing time Processing sequence & setups
Job Shop Scheduling: scheduling for low-volume systems with many variations in requirements; fairly complex with 2 basic issues:
a) How to distribute workload among work centers
b) What job processing sequence to use
Production Planning & Control To run a facility in a balanced and efficient
manner PPC system should
1. Schedule incoming order without violating capacity constraints of individual work centers
2. Check the availability of tools and materials before releasing an order to a department
3. Establish due dates for each job and check progress against need dates and order lead times
4. Check work-in-progress as jobs move through the shop5. Provide feedback on plant and production activities6. Provide work efficiency statistics and monitor operator
times for payroll and labor distribution analyses.
Scheduling System Whether manual or automated, must be
accurate and relevant; Requires a production database with both planning and control files
3 types of planning files1) Item Master File contains information about each
component the firm produces or purchases2) Routing File indicates each component’s flow
through the shop3) Work-Center Master File contains information about
the work center, such as capacity and efficiency
Control files track the actual progress made against the plan for each work order
LOADING JOBS in WORK CENTERS
Loading means the assignment of jobs to work or processing centers so that costs, idle time or completion times are kept to a minimum
2 forms of loading work centers: Oriented to capacity
Technique: INPUT-OUTPUT CONTROL Related to assigning specific jobs to work
centers Approaches: GANTT-CHART
ASSIGNMENT METHOD
LOADING JOBS in WORK CENTERS
Infinite Loading – jobs are assigned to work centers without regard to the capacity of the work center
Finite Loading – jobs are assigned to work centers taking into account the work center capacity and job processing times
LOADING JOBS in WORK CENTERS
Vertical Loading – loading jobs at a work center, job by job, usually according to some priority criterion, using infinite loading
Horizontal Loading – loading each job on all work centers it will require, one at a time, according to some priority criterion, using finite loading
Input-Output Control A system that allows operations personnel
to manage facility work flows by tracking work added to a work center and its work completed.
If the work is arriving faster that it is being processed, the facility is overloaded and backlog develops Overloading causes crowding in the facility, leading to
inefficiencies and quality problems If the work is arriving at a slower rate than
jobs are being performed, the facility is underloaded and the work center may run our of work Underloading results in idle capacity and wasted
resources
Assignment Method A special class of linear programming models
that involves assigning tasks or jobs to resources (e.g. jobs to machines, contracts to bidders, people to projects, and salespeople to territories)
The objective is most often to minimize total costs or time required to perform the tasks at hand
One important characteristics of assignment problems is that only one job (or worker) is assigned to one machine (or project)
Assignment Method Each assignment problem uses a
table The numbers in the table will be the
costs or times associated with each particular assignment
The assignment method involves adding and subtracting appropriate numbers in the table in order to find the lowest opportunity cost for each assignment
Assignment Method Steps:1. Subtract the smallest number in each row from every
number in that row and then, from the resulting matrix, subtract the smallest number in each column from every number in the column. This step has the effect of reducing the numbers in the table until a series of zeros, meaning zero opportunity costs, appear. Even though the numbers change, this reduced problem is equivalent to the original one, and the same solution will be optimal.
2. Draw the minimum number of vertical and horizontal straight lines necessary to cover all zeros in the table. If the number of lines equals either the number of rows or the number of columns in the table, then an optimal assignment can be made (see step 4). If the number of lines is less than the number of rows or columns, proceed to step 3.
Assignment Method Steps:3. Subtract the smallest number not covered by a line from
every other uncovered number. Add the same number to any number(s) lying at the intersection of any two lines. Do not change the value of the numbers which are covered by only one line. Return to step 2 and continue until an optimal assignment is possible.
4. Optimal assignments will always be at zero locations in the table. One systematic way of making a valid assignment is first to select a row or column that contains only one zero square. An assignment can be made to that square and then draw lines through its row and column. From the uncovered rows and columns, choose another row or column in which there is only one zero square. Make that assignment and continue the procedure until assigning each person or machine to one task.
SEQUENCING JOBS in WORK CENTERS
Scheduling provides a basis for assigning jobs to work centers.
Loading is a capacity-control technique that highlights overloads and underloads.
Sequencing specifies the order in which jobs should be done at each center
PRIORITY RULES for dispatching jobs to work centers are rules that are used to determine the sequence of jobs in process-oriented facilities.
Priority Rules FCFS: First Come, First Served. The first
job to arrive at a work center is processed first.
SPT: Shortest Processing Time. The shortest jobs are handled first and completed
EDD: Earliest Due Date. The job with the earliest due date is selected first
LPT: Longest Processing time. The longer, bigger jobs are often very important and are selected first.
Priority Rules - Assumptions The ser of jobs is known; no new jobs arrive
after processing begins; and no jobs are cancelled
Setup time is independent of processing sequence
Setup time is deterministic Processing times are deterministic rather
than variable There will be or interruptions in processing
such as machine breakdowns, accidents, or worker illness
Performance Measures in judging the effectiveness of any given sequence
Job Flow Time – length of time a job is at a particular workstation or work center (Average Flow Time = total flow time number of jobs)
Job Lateness – length of time the job completion date is expected to exceed the date the job was due or promised to a customer. It is equal to the difference with compliance times that exceed due dates, with zeros assigned to jobs that are early (average tardiness = sum of the differences from due dates no. of jobs)
Performance Measures in judging the effectiveness of any given sequence Makespan – total time needed to
complete a group of jobs; length of times between the start of the first job in the group and the completion of the last job in the group (makespan = sum of the given processing times of all jobs)
Utilization – Total job work (processing) sum of total flow time or makespan
Average Number of Jobs - computed as total flow time makespan (this ratio reflects the average work-in-process inventory)
Critical Ratio A sequencing rule that is an index number
computed by dividing the time remaining until due date by the work time remaining
As opposed to the priority rules, critical ratio is dynamic and easily updated. It tends to perform better than FCFS, SPT, EDD, or LPT on the average job-lateness criterion.
CR gives priority to jobs that must be done to keep shipping on schedule.
Formula:CR = Time remaining = Due date - Today’s date
Workdays remaining Work(lead)time remaining
Critical Ratio A job with a low critical ratio (less
than 1.0) is one that is falling behind schedule.
If CR is exactly equal to 1.0, the job is on schedule.
A CR greater than 1.0 means the job is ahead of schedule and has some slack.
Sequencing N Jobs on Two Machines: Johnson’s Rule
The next step in complexity is the case in which N jobs (where N is 2 or more) must go through two different machines or work centers in the same order. This is called the N/2 problem.
Johnson’s Rule: minimizes the processing time for sequencing a group of jobs through two work centers; also minimizes total idle time on the machines; involves 4 steps:
1. All jobs are to be listed, and the time that each requires on a machine to be shown
2. Select the job with the shortest activity time. If the shortest time lies with the first machine, the job is scheduled first. If the shortest time lies the second machine, schedule the job last. Ties in activity times can be broken arbitrarily.
3. Once a job is scheduled, eliminate it.4. Apply steps 2 and 3 to the remaining jobs, working toward the
center of the sequence.
THEORY of CONSTRAINTS The body of knowledge that deals with
anything that limits an organization’s ability to achieve its goals
Managers need to identify the operations (bottlenecks) that constrain output because it is throughput – that is, units processed through the facility and sold – that makes the difference.
Constraints can be physical (such as personnel availability, raw materials or supplies) or non-physical (such as procedures, morale, training)
THEORY of CONSTRAINTS Avoided scheduling complexities and
focused on bottleneck operations (i.e., those for which there was insufficient capacity – in effect, a work center with zero idle time)
Output of the system is limited by the output of the bottleneck operation(s)
Idle time of nonbottleneck operations was not a factor in overall productivity of the system, as long as the bottleneck operations were used effectively.
THEORY of CONSTRAINTS “drum-buffer-rope” technique
Drum = is the schedule that sets the pace of production, the goal of which is to schedule to make maximum use of bottleneck resources
Buffer = refers to potentially constraining resources outside of the bottleneck; its role is to keep inventory from piling up on either side of the bottleneck operation
Rope = represents the synchronizing of the sequence of operations to insure effective use of the bottleneck operations; the goal is to avoid costly and time-consuming multiple setups, particularly of capacity of constrained resources, so they do not become bottlenecks too.
THEORY of CONSTRAINTS system of varying “batch” sizes to
achieve the greatest output of bottleneck operations Process Batch – denotes the basic lot size for a
job Transfer Batch – denotes a portion of the basic
lot that could be used during production to facilitate utilization of bottleneck operations
In effect, a lot could be split into two or more parts.Splitting a large lot at one or more operations preceding a
bottleneck operation would reduce the waiting time of the bottleneck operation.