1. 1 Manufacturing Operations Scheduling B2 [----------] B2 [----------] E5 [-------------- E5 [-------------- P9 [---] P9 [---] D1 [-------- D1 [-------- X8 ----] X8 ----] C6 [- C6 [- 3 4 5 6 7 8

2. 2 Scheduling Process-Focused Process-Focused Manufacturing Manufacturing

3. 3 Scheduling Decisions Scheduling at Washburn Guitar, Inc.

4. 4 Process-Focused Manufacturing l Process-focused factories are often called job shops. l A job shop’s work centers are organized around similar types of equipment or operations. l Workers and machines are flexible and can be assigned to and reassigned to many different orders. l Job shops are complex to schedule.

5. 5 Scheduling and Shop-Floor Decisions MaterialRequirements Plan (MRP) CapacityRequirements Plan (CRP) Order- Processing or Routing Plans Planned Order Releases Report Work Center Loading and Overtime Plan Assignment of Orders to Work Centers MasterProduction Schedule (MPS) Product Design and Process Plans Day-to-Day Scheduling and Shop-Floor Decisions

6. 6 Pre-production Planning l Design the product in customer order l Plan the operations the product must pass through..... this is the routing plan l Work moves between operations on a move ticket

7. 7 Common Shop Floor Control Activities l The production control department controls and monitors order progress through the shop. l Assigns priority to orders l Issues dispatching lists l Tracks WIP and keeps systems updated l Controls input-output between work centers l Measures efficiency, utilization, and productivity of shop

8. Capacity requirements planning Routings and work centers Shop- floor dispatching Work- in-process control Input/ output analysis Prioritized queue lists Standard production costs Labor and equipment requirements Work orders Work order scheduling Work order tracking Hewlett-Packard’s Shop-Floor Control System Slide 8 of 31

9. 9 Shop Floor Planning and Control l Input-Output Control l Gantt Chart l Finite and Infinite Loading l Forward and Backward Scheduling

10. 10 Input-Output Control l Input-output control identifies problems such as insufficient or excessive capacity or any issues that prevents the order from being completed on time. l Input-output control report compares planned and actual input, planned and actual output, and planned and actual WIP in each time period

11. 11 Input-Output Control l Input-output control identifies problems such as insufficient or excessive capacity, bottlenecks or any issues that prevents the order from being completed on time l Planned input should never exceed planned output InputOutput Work Center

12. 12 Input-Output Control Report Week:-11 234 Week:-11 234 Planned input: labor-hrs1005040100 Actual input: labor-hrs50403080 Cumulative deviation-50-60-70-90 Planned output: labor-hrs1207050100 Actual output: labor-hrs110502070 Cumulative deviation-10-30-60-90 Planned ending WIP: l-h50302020 Actual ending WIP: l-h701001020

13. 13 Gantt Charts l Gantt charts are useful tools to coordinate jobs through shop; graphical summary of job status and loading of operations

14. 14 Gantt Charts MachiningFabricationAssemblyTest Tue. Wed. Thu. Fri. Sat. Work Centers Mon. EFG C DE HC F ED H C D ScheduledProgress Setup, Maint.

15. 15 Assigning Jobs to Work Centers: How Many Jobs/Day/Work Center l Infinite loading l Assigns jobs to work centers without regard to capacity l Unless excessive capacity exists, long queues occur l Finite loading l Uses work center capacity to schedule orders l Popular scheduling approach l Integral part of CRP

16. 16 Assigning Jobs to Work Centers: Which Job Gets Built First? l Forward scheduling l Jobs are given earliest available time slot in operation l excessive WIP usually results l Backward scheduling l Start with promise date and work backward through operations reviewing lead times to determine when a job has to pass through each operation l Less WIP but must have accurate lead times

17. 17 Order-Sequencing Problems l Sequencing Rules l Criteria for Evaluating Sequencing Rules l Comparison of Sequencing Rules l Controlling Changeover Costs l Minimizing Total Production Time

18. 18 Order-Sequencing Problems l We want to determine the sequence in which we will process a group of waiting orders at a work center. l Many different sequencing rules can be followed in setting the priorities among orders. l There are numerous criteria for evaluating the effectiveness of the sequencing rules.

19. 19 Order-Sequencing Rules l First-Come First-Served (FCFS) Next job to process is the one that arrived first among the waiting jobs l Shortest Processing Time (SPT) Next job to process is the one with the shortest processing time among the waiting jobs l Earliest Due Date (EDD) Next job to process is the one with the earliest due (promised finished) date among the waiting jobs

20. 20 Order-Sequencing Rules l Least Slack (LS) Next job to process is the one with the least [time to due date minus total remaining processing time] among the waiting jobs l Critical Ratio (CR) Next job to process is the one with the least [time to due date divided by total remaining processing time] among the waiting jobs l Least Changeover Cost (LCC) Sequence the waiting jobs such that total machine changeover cost is minimized

21. 21 Evaluating the Effectiveness of Sequencing Rules l Average flow time - average amount of time jobs spend in shop l Average number of jobs in system - l Average job lateness - average amount of time job’s completion date exceeds its promised delivery date l Changeover cost - total cost of making machine changeovers for group of jobs

22. 22 Experience Says: l First-come-first-served l Performs poorly on most evaluation criteria l Does give customers a sense of fair play l Shortest processing time l Performs well on most evaluation criteria l But have to watch out for long-processing-time orders getting continuously pushed back l Critical ratio l Works well on average job lateness criterion l May focus too much on jobs that cannot be completed on time, causing others to be late too.

23. 23 Example: Sequencing Rules Use the FCFS, SPT, and Critical Ratio rules to sequence the five jobs below. Evaluate the rules on the bases of average flow time, average number of jobs in the system, and average job lateness. Job Processing TimeTime to Promised Completion Job Processing TimeTime to Promised Completion A 6 hours10 hours A 6 hours10 hours B 1216 C 9 8 D 1414 E 8 7

24. 24 Example: Sequencing Rules l FCFS RuleA > B > C > D > E Processing Promised Flow Processing Promised Flow JobTime Completion Time Lateness JobTime Completion Time Lateness A 6 10 6 0 A 6 10 6 0 B 12 1618 2 B 12 1618 2 C 9 827 19 C 9 827 19 D 14 1441 27 D 14 1441 27 E 8 749 42 E 8 749 42 49 141 90 49 141 90

25. 25 Example: Sequencing Rules l FCFS Rule Performance l Average flow time: 141/5 = 28.2 hours 141/5 = 28.2 hours l Average number of jobs in the system: 141/49 = 2.88 jobs 141/49 = 2.88 jobs l Average job lateness: 90/5 = 18.0 hours

26. 26 Example: Sequencing Rules l SPT RuleA > E > C > B > D Processing Promised Flow Processing Promised Flow JobTime Completion Time Lateness JobTime Completion Time Lateness A 6 10 6 0 A 6 10 6 0 E 8 714 7 E 8 714 7 C 9 823 15 C 9 823 15 B 12 1635 19 B 12 1635 19 D 14 1449 35 D 14 1449 35 49 127 76 49 127 76

27. 27 Example: Sequencing Rules l SPT Rule Performance l Average flow time: 127/5 = 25.4 hours 127/5 = 25.4 hours l Average number of jobs in the system: 127/49 = 2.59 jobs 127/49 = 2.59 jobs l Average job lateness: 76/5 = 15.2 hours

28. 28 Example: Sequencing Rules l Critical Ratio RuleE > C > D > B > A Processing Promised Flow Processing Promised Flow JobTime Completion Time Lateness JobTime Completion Time Lateness E (.875) 8 7 8 1 E (.875) 8 7 8 1 C (.889) 9 817 9 C (.889) 9 817 9 D (1.00) 14 1431 17 D (1.00) 14 1431 17 B (1.33) 12 1643 27 B (1.33) 12 1643 27 A (1.67) 6 1049 39 A (1.67) 6 1049 39 49 148 93 49 148 93

29. 29 Example: Sequencing Rules l Critical Ratio Rule Performance l Average flow time: 148/5 = 29.6 hours 148/5 = 29.6 hours l Average number of jobs in the system: 148/49 = 3.02 jobs 148/49 = 3.02 jobs l Average job lateness: 93/5 = 18.6 hours

30. 30 Example: Sequencing Rules l Comparison of Rule Performance Average AverageAverage Flow Number of Jobs Job Flow Number of Jobs Job Rule Time in System Lateness Rule Time in System Lateness FCFS 28.2 2.88 18.0 FCFS 28.2 2.88 18.0 SPT 25.4 2.59 15.2 SPT 25.4 2.59 15.2 CR 29.6 3.02 18.6 CR 29.6 3.02 18.6 SPT rule was superior for all 3 performance criteria. SPT rule was superior for all 3 performance criteria.

31. 31 Scheduling Decisions Priority Rules

32. 32 Controlling Changeover Costs l Changeover costs - costs of changing a processing step in a production system over from one job to another l Changing machine settings l Getting job instructions l Changing material l Changing tools l Usually, jobs should be processed in a sequence that minimizes changeover costs

33. 33 Controlling Changeover Costs l Job Sequencing Heuristic l First, select the lowest changeover cost among all changeovers (this establishes the first two jobs in the sequence) l The next job to be selected will have the lowest changeover cost among the remaining jobs that follow the previously selected job

34. 34 Example: Minimizing Changeover Costs Hardtimes Heat Treating Service has 5 jobs waiting to be processed at work center #11. The job- to-job changeover costs are listed below. What should the job sequence be? Jobs That Precede Jobs That Precede ABCDE A--65805062 B95--696765 C9271--6775 D8510565--95 E1257595105-- JobsThatFollow

35. 35 Example: Minimizing Changeover Costs l Develop a job sequence: A follows D ($50 is the least c.o. cost) C follows A ($92 is the least following c.o. cost) B follows C ($69 is the least following c.o. cost) E follows B (E is the only remaining job) Job sequence is D – A – C – B – E Job sequence is D – A – C – B – E Total changeover cost = $50 + 92 + 69 + 75 = $286

36. 36 Minimizing Total Production Time l Sequencing n Jobs through Two Work Centers l When several jobs must be sequenced through two work centers, we may want to select a sequence that must hold for both work centers l Johnson’s rule can be used to find the sequence that minimizes the total production time through both work centers

37. 37 Johnson’s Rule 1. Select the shortest processing time in either work center 2. If the shortest time is at the first work center, put the job in the first unassigned slot in the schedule. If the shortest time is at the second work center, put the job in the last unassigned slot in the schedule. 3. Eliminate the job assigned in step 2. 4. Repeat steps 1-3, filling the schedule from the front and back, until all jobs have been assigned a slot.

38. 38 Example: Minimizing Total Production Time It is early Saturday morning and The Finest Detail has five automobiles waiting for detailing service. Each vehicle goes through a thorough exterior wash/wax process and then an interior vacuum/shampoo/polish process. The entire detailing crew must stay until the last vehicle is completed. If the five vehicles are sequenced so that the total processing time is minimized, when can the crew go home. They will start the first vehicle at 7:30 a.m. Time estimates are shown on the next slide.

39. 39 Example: Minimizing Total Production Time ExteriorInterior JobTime (hrs.)Time (hrs.) Cadillac2.02.5 Bentley2.12.4 Lexus1.92.2 Porsche1.81.6 Infiniti1.51.4

40. 40 Example: Minimizing Total Production Time l Johnson’s Rule Least WorkSchedule Least WorkSchedule Time Job Center Slot 1.4 InfinitiInterior 5 th 1.4 InfinitiInterior 5 th 1.6PorscheInterior 4 th 1.6PorscheInterior 4 th 1.9 LexusExterior 1 st 1.9 LexusExterior 1 st 2.0CadillacExterior 2 nd 2.0CadillacExterior 2 nd 2.1BentleyExterior 3 rd 2.1BentleyExterior 3 rd

41. 41 Example: Minimizing Total Production Time ExteriorInterior 0 1.9 3.9 6.0 7.8 9.3 12.0 0 1.9 4.1 6.6 9.0 10.6 12.0 LCB L PI IdleCBPI It will take from 7:30 a.m. until 7:30 p.m. (not allowing for breaks) to complete the five vehicles.

42. 42 Scheduling Product-Focused Product-Focused Manufacturing Manufacturing

43. 43 Product-Focused Scheduling l Two general types of product-focused production: l Batch - large batches of several standardized products produced l Continuous - few products produced continuously.... minimal changeovers

44. 44 Scheduling Decisions l If products are produced in batches on the same production lines: l How large should production lot size be for each product? l When should machine changeovers be scheduled? l If products are produced to a delivery schedule: l At any point in time, how many products should have passed each operation if time deliveries are to be on schedule?

45. 45 Batch Scheduling EOQ for Production Lot Size l How many units of a single product should be included in each production lot to minimize annual inventory carrying cost and annual machine changeover cost?

46. 46 Example: EOQ for Production Lots CPC, Inc. produces four standard electronic assemblies on a produce-to-stock basis. The annual demand, setup cost, carrying cost, demand rate, and production rate for each assembly are shown on the next slide. a) What is the economic production lot size for each assembly? b) What percentage of the production lot of power units is being used during its production run? c) For the power unit, how much time will pass between production setups?

47. 47 Example: EOQ for Production Lots AnnualSetupCarryDemandProd. DemandCostCostRateRate Power Unit 5,000$1,200$620200 Converter10,000 600 440300 Equalizer12,000 1,5001048100 Transformer 6,000 400 224 50

48. 48 Example: EOQ for Production Lots l Economic Production Lot Sizes

49. 49 Example: EOQ for Production Lots l % of Power Units Used During Production d/p = 20/200 =.10 or 10% l Time Between Setups for Power Units EOQ/d = 1,490.7/20 = 74.535 days EOQ/d = 1,490.7/20 = 74.535 days

50. 50 Batch Scheduling l Limitations of EOQ Production Lot Size l Uses annual “ballpark” estimates of demand and production rates, not the most current estimates l Not a comprehensive scheduling technique – only considers a single product at a time l Multiple products usually share the same scarce production capacity

51. 51 Batch Scheduling l Run-Out Method l Attempts to use the total production capacity available to produce just enough of each product so that if all production stops, inventory of each product runs out at the same time

52. 52 Example: Run-Out Method QuadCycle, Inc. assembles, in batches, four bicycle models on the same assembly line. The production manager must develop an assembly schedule for March. There are 1,000 hours available per month for bicycle assembly work. Using the run-out method and the pertinent data shown on the next slide, develop an assembly schedule for March.

53. 53 Example: Run-Out Method AssemblyMarchApril InventoryTimeForec.Forec. On-HandRequiredDemandDemand Bicycle(Units)(Hr/Unit)(Units)(Units) Razer100.3400400 Splicer600.2900900 Tracker500.61,5001,500 HiLander200.1500500

54. 54 Example: Run-Out Method l Convert inventory and forecast into assembly hours Assemb.MarchMarch Invent.TimeForec.Invent.Forec. On-HandReq’d.Dem.On-HandDem. Bicycle(Units)(Hr/Unit)(Units)(Hours)(Hours) Razer100.340030120 Splicer600.2900120180 Tracker500.61,500300900 HiLander200.15002050 Total4701,250 (1) (2) (3) (4) (5) (1) x (2) (2) x (4)

55. 55 Example: Run-Out Method l Compute aggregate run-out time in months Aggregate Run-out Time = =[(Total Inventory On-Hand in Hours) =[(Total Inventory On-Hand in Hours) + (Total Assembly Hours Available per Month)  (March’s Forecasted Demand in Hours)] / (April’s Forecasted Demand in Hours) = (470 + 1,000  1,250)/1,250 =.176 months = (470 + 1,000  1,250)/1,250 =.176 months

56. 56 Example: Run-Out Method l Develop March’s Production Schedule March’sMarch’s DesiredDesiredAssembly EndingEnd.Inv.RequiredTime Inventory& Forec.ProductionAllocated Bicycle(Units)(Units)(Units)(Hours) Razer70470370111.0 Splicer1581,05845891.6 Tracker2641,7641,264758.4 HiLander8858838838.8 999.8 (6) (7) (8) (9) (3) x.176 (3) + (6) (7)  (1) (8) x (2)

57. 57 Computerized Scheduling l Develops detailed schedules for each work center indicating starting and ending times l Develops departmental schedules l Generates modified schedules as orders move l Many packages available.... select one most appropriate for your business

58. 58 Scheduling Decisions Visual Control Rules at Zytec, Inc.

59. 59 Wrap-Up: World-Class Practice l In process-focused factories: l MRP II refined.... promises are met, shop loading is near optimal, costs are low, quality is high l In product-focused factories: l EOQ for standard parts containers, this sets S, lot sizes are lower, inventories slashed, customer service improved l Scheduling is integral part of a computer information system

60. 60 End of Chapter 16