Supply Chain

Management
–
Short-Term Scheduling

© 2006
© 2006 Prentice
Prentice Hall, Inc. Hall, Inc. 15 – 1
 Learning Objectives
When you complete this chapter, you
should be able to:
Identify or Define:
 Gantt charts
 Assignment method
 Sequencing rules
 Johnson’s rule
 Bottlenecks

© 2006 Prentice Hall, Inc. 15 – 2

 Learning Objectives
When you complete this chapter, you
should be able to:
Describe or Explain:
 Scheduling
 Sequencing

© 2006 Prentice Hall, Inc. 15 – 3

 Delta Airlines
 About 10% of Delta’s flights are
disrupted per year, half because of
weather
 Cost is $440 million in lost revenue,
overtime pay, food and lodging
vouchers
 The $33 million Operations Control
Center adjusts to changes and keeps
flights flowing
 Saves Delta $35 million per year
© 2006 Prentice Hall, Inc. 15 – 4
 Strategic Importance of
Short-Term Scheduling
 Effective and efficient scheduling
can be a competitive advantage
 Faster movement of goods through a
facility means better use of assets
and lower costs
 Additional capacity resulting from
faster throughput improves customer
service through faster delivery
 Good schedules result in more
reliable deliveries
© 2006 Prentice Hall, Inc. 15 – 5
 Scheduling
Issues

Figure 15.1

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 Scheduling Decisions
Organization Managers Must Schedule the Following
Arnold Palmer Operating room use
Hospital Patient admissions
Nursing, security, maintenance staffs
Outpatient treatments
University of Classrooms and audiovisual equipment
Missouri Student and instructor schedules
Graduate and undergraduate courses
Lockheed-Martin Production of goods
factory Purchases of materials
Workers
Hard Rock Cafe Chef, waiters, bartenders
Delivery of fresh foods
Entertainers
Opening of dining areas
Delta Airlines Maintenance of aircraft
Departure timetables
Table 15.1 Flight crews, catering, gate, ticketing personnel
© 2006 Prentice Hall, Inc. 15 – 7
 Scheduling Criteria

1. Minimize completion time

2. Maximize utilization of facilities
3. Minimize work-in-process (WIP)
inventory
4. Minimize customer waiting time

Optimize the use of resources so

that production objectives are met
© 2006 Prentice Hall, Inc. 15 – 8
 Scheduling Process-
Focused Facilities
1. Schedule incoming orders without
violating capacity constraints
2. Check availability of tools and materials
before releasing an order
3. Establish due dates for each job and
check progress
4. Check work in progress
5. Provide feedback
6. Provide work efficiency statistics and
monitor times
© 2006 Prentice Hall, Inc. 15 – 9
 Planning and Control Files
Planning Files
1. An item master file contains information about
each component
2. A routing file indicates each component’s flow
through the shop
3. A work-center master file contains information
about the work center

Control Files
Track the actual progress made against
the plan

© 2006 Prentice Hall, Inc. 15 – 10

 Gantt Charts
 Load chart shows the loading and
idle times of departments, machines,
or facilities
 Displays relative workloads over
time
 Schedule chart monitors jobs in
process
 All Gantt charts need to be updated
frequently
© 2006 Prentice Hall, Inc. 15 – 11
 Gantt Load Chart Example
Work Day Monday Tuesday Wednesday Thursday Friday
Center

Metalworks Job 349 Job 350

Mechanical Job 349 Job 408

Electronics Job 408 Job 349

Painting Job 295 Job 408 Job 349

Processing Unscheduled Center not available

Figure 15.3
© 2006 Prentice Hall, Inc. 15 – 12
 Gantt Schedule Chart
Example
Start of an
Day Day Day Day Day Day Day Day activity
Job
1 2 3 4 5 6 7 8
End of an
activity
A Scheduled
activity time
allowed
Maintenance Actual work
B progress

Nonproduction
time
C
Point in time
when chart is
reviewed
Now
Figure 15.4
© 2006 Prentice Hall, Inc. 15 – 13
 Assignment Method

 A special class of linear

programming models that assign
tasks or jobs to resources
 Objective is to minimize cost or
time
 Only one job (or worker) is
assigned to one machine (or
project)

© 2006 Prentice Hall, Inc. 15 – 14

 Assignment Method
 Build a table of costs or time
associated with particular
assignments

Typesetter
Job A B C
R-34 $11 $14 $ 6
S-66 $ 8 $10 $11
T-50 $ 9 $12 $ 7

© 2006 Prentice Hall, Inc. 15 – 15

 Assignment Method
1. Create zero opportunity costs by
repeatedly subtracting the lowest costs
from each row and column
2. Draw the minimum number of vertical
and horizontal lines necessary to cover
all the zeros in the table. If the number
of lines equals either the number of
rows or the number of columns,
proceed to step 4. Otherwise proceed to
step 3.

© 2006 Prentice Hall, Inc. 15 – 16

 Assignment Method
3. Subtract the smallest number not
covered by a line from all other
uncovered numbers. Add the same
number to any number at the
intersection of two lines. Return to
step 2.
4. Optimal assignments are at zero
locations in the table. Select one, draw
lines through the row and column
involved, and continue to the next
assignment.
© 2006 Prentice Hall, Inc. 15 – 17
 Assignment Example
Typesetter
A B C
Job
R-34 $11 $14 $ 6
S-66 $ 8 $10 $11
T-50 $ 9 $12 $ 7

Step 1a - Rows Step 1b - Columns

Typesetter Typesetter
A B C A B C
Job Job
R-34 $ 5 $ 8 $ 0 R-34 $ 5 $ 6 $ 0
S-66 $ 0 $ 2 $ 3 S-66 $ 0 $ 0 $ 3
T-50 $ 2 $ 5 $ 0 T-50 $ 2 $ 3 $ 0

© 2006 Prentice Hall, Inc. 15 – 18

 Assignment Example
Step 2 - Lines The smallest uncovered
number is 2 so this is
Typesetter subtracted from all other
A B C uncovered numbers and
Job added to numbers at the
R-34 $ 5 $ 6 $ 0 intersection of lines
S-66 $ 0 $ 0 $ 3
T-50 $ 2 $ 3 $ 0 Step 3 - Subtraction
Typesetter
Because only two lines A B C
are needed to cover all Job
the zeros, the solution R-34 $ 3 $ 4 $ 0
is not optimal S-66 $ 0 $ 0 $ 5
T-50 $ 0 $ 1 $ 0

© 2006 Prentice Hall, Inc. 15 – 19

 Assignment Example
Step 2 - Lines Start by assigning R-34 to
worker C as this is the only
Typesetter possible assignment for
A B C worker C. Job T-50 must
Job go to worker A as worker C
R-34 $ 3 $ 4 $ 0 is already assigned. This
S-66 $ 0 $ 0 $ 5 leaves S-66 for worker B.
T-50 $ 0 $ 1 $ 0 Step 4 - Assignments
Typesetter
Because three lines are A B C
needed, the solution is Job
optimal and R-34 $ 3 $ 4 $ 0
assignments can be
S-66 $ 0 $ 0 $ 5
made
T-50 $ 0 $ 1 $ 0
© 2006 Prentice Hall, Inc. 15 – 20
 Assignment Example

From the original cost table

Minimum cost = $6 + $10 + $9 = $25

Step 4 - Assignments
Typesetter Typesetter
A B C A B C
Job Job
R-34 $11 $14 $ 6 R-34 $ 3 $ 4 $ 0
S-66 $ 8 $10 $11 S-66 $ 0 $ 0 $ 5
T-50 $ 9 $12 $ 7 T-50 $ 0 $ 1 $ 0
© 2006 Prentice Hall, Inc. 15 – 21
 Sequencing Jobs
 Specifies the order in which jobs
should be performed at work centers
 Priority rules are used to dispatch or
sequence jobs
 FCFS: First come, first served
 SPT: Shortest processing time
 EDD: Earliest due date
 LPT: Longest processing time

© 2006 Prentice Hall, Inc. 15 – 22

 Sequencing Example
Apply the four popular sequencing rules
to these five jobs
Job Work Job Due
(Processing) Time Date
Job (Days) (Days)
A 6 8
B 2 6
C 8 18
D 3 15
E 9 23

© 2006 Prentice Hall, Inc. 15 – 23

 Sequencing Example
FCFS: Sequence A-B-C-D-E
Job Work
Job (Processing) Flow Job Due Job
Sequence Time Time Date Lateness
A 6 6 8 0
B 2 8 6 2
C 8 16 18 0
D 3 19 15 4
E 9 28 23 5
28 77 11

© 2006 Prentice Hall, Inc. 15 – 24

 Sequencing Example
FCFS: Sequence A-B-C-D-E
Jobtime
Work Total flow time
Average completion = = 77/5 = 15.4 days
Job (Processing) NumberFlowof jobs
Job Due Job
Sequence Time Time Date Lateness
Total job work time
A Utilization = 6 6 = 28/77
8 = 36.4% 0
Total flow time
B 2 8 6 2
Average number of Total flow time
jobsCin the system =8 Total job work16 time 18
= 77/28 = 2.75 jobs
0
D 3 19 days 15
Total late 4
Average job lateness = = 11/5 = 2.2 days
E 9 Number 28of jobs 23 5
28 77 11

© 2006 Prentice Hall, Inc. 15 – 25

 Sequencing Example
SPT: Sequence B-D-A-C-E
Job Work
Job (Processing) Flow Job Due Job
Sequence Time Time Date Lateness
B 2 2 6 0
D 3 5 15 0
A 6 11 8 3
C 8 19 18 1
E 9 28 23 5
28 65 9

© 2006 Prentice Hall, Inc. 15 – 26

 Sequencing Example
SPT: Sequence B-D-A-C-E
Job Work Total flow time
Average completion time = = 65/5 = 13 days
Job (Processing) NumberFlow of jobs
Job Due Job
Sequence Time Time Date Lateness
Total job work time
B Utilization = 2 2 = 28/65
6 = 43.1% 0
Total flow time
D 3 5 15 0
Average number of Total flow time
jobsAin the system =6 Total job work11 time 8
= 65/28 = 2.32 jobs
3
C 8 19 days 18
Total late 1
Average job lateness = = 9/5 = 1.8 days
E 9 Number 28of jobs 23 5
28 65 9

© 2006 Prentice Hall, Inc. 15 – 27

 Sequencing Example
EDD: Sequence B-A-D-C-E
Job Work
Job (Processing) Flow Job Due Job
Sequence Time Time Date Lateness
B 2 2 6 0
A 6 8 8 0
D 3 11 15 0
C 8 19 18 1
E 9 28 23 5
28 68 6

© 2006 Prentice Hall, Inc. 15 – 28

 Sequencing Example
EDD: Sequence B-A-D-C-E
Jobtime
Work Total flow time
Average completion = = 68/5 = 13.6 days
Job (Processing) NumberFlowof jobs
Job Due Job
Sequence Time Time Date Lateness
Total job work time
B Utilization = 2 2 = 28/68
6 = 41.2% 0
Total flow time
A 6 8 8 0
Average number of Total flow time
jobsDin the system =3 Total job work11 time 15
= 68/28 = 2.43 jobs
0
C 8 19 days 18
Total late 1
Average job lateness = = 6/5 = 1.2 days
E 9 Number 28of jobs 23 5
28 68 6

© 2006 Prentice Hall, Inc. 15 – 29

 Sequencing Example
LPT: Sequence E-C-A-D-B
Job Work
Job (Processing) Flow Job Due Job
Sequence Time Time Date Lateness
E 9 9 23 0
C 8 17 18 0
A 6 23 8 15
D 3 26 15 11
B 2 28 6 22
28 103 48

© 2006 Prentice Hall, Inc. 15 – 30

 Sequencing Example
LPT: Sequence E-C-A-D-B
Jobtime
Work Total flow time
Average completion = = 103/5 = 20.6 days
Job (Processing)Number Flowof jobs Due
Job Job
Sequence Time Time Date Lateness
Total job work time
EUtilization = 9 9 = 28/103
23 = 27.2% 0
Total flow time
C 8 17 18 0
Average number of Total flow time
jobs in = = 103/28 = 3.68 jobs
A the system 6Total job work 23 time 8 15
D 3 26 days 15
Total late 11
Average job lateness = = 48/5 = 9.6 days
B 2 Number of
28 jobs 6 22
28 103 48

© 2006 Prentice Hall, Inc. 15 – 31

 Sequencing Example
Summary of Rules

Average Average Number Average

Completion Utilization of Jobs in Lateness
Rule Time (Days) (%) System (Days)
FCFS 15.4 36.4 2.75 2.2

SPT 13.0 43.1 2.32 1.8

EDD 13.6 41.2 2.43 1.2

LPT 20.6 27.2 3.68 9.6

© 2006 Prentice Hall, Inc. 15 – 32

 Comparison of
Sequencing Rules
 No one sequencing rule excels on all
criteria
 SPT does well on minimizing flow time and
number of jobs in the system
 But SPT moves long jobs to the end which
may result in dissatisfied customers
 FCFS does not do especially well (or
poorly) on any criteria but is perceived as
fair by customers
 EDD minimizes lateness
© 2006 Prentice Hall, Inc. 15 – 33
 Critical Ratio (CR)
 An index number found by dividing the
time remaining until the due date by the
work time remaining on the job
 Jobs with low critical ratios are
scheduled ahead of jobs with higher
critical ratios
 Performs well on average job lateness
criteria
Time remaining Due date - Today’s date
CR = =
Workdays remaining Work (lead) time remaining

© 2006 Prentice Hall, Inc. 15 – 34

 Critical Ratio Example
Currently Day 25

Due Workdays Priority

Job Date Remaining Critical Ratio Order

A 30 4 (30 - 25)/4 = 1.25 3

B 28 5 (28 - 25)/5 = .60 1

C 27 2 (27 - 25)/2 = 1.00 2

With CR < 1, Job B is late. Job C is just on schedule

and Job A has some slack time.

© 2006 Prentice Hall, Inc. 15 – 35

 Critical Ratio Technique
1. Helps determine the status of specific
jobs
2. Establishes relative priorities among
jobs on a common basis
3. Relates both stock and make-to-order
jobs on a common basis
4. Adjusts priorities automatically for
changes in both demand and job
progress
5. Dynamically tracks job progress
© 2006 Prentice Hall, Inc. 15 – 36
 Sequencing N Jobs on Two
Machines: Johnson’s Rule

 Works with two or more jobs that

pass through the same two
machines or work centers
 Minimizes total production time and
idle time

© 2006 Prentice Hall, Inc. 15 – 37

 Johnson’s Rule
1. List all jobs and times for each work
center
2. Choose the job with the shortest activity
time. If that time is in the first work center,
schedule the job first. If it is in the second
work center, schedule the job last.
3. Once a job is scheduled, it is eliminated
from the list
4. Repeat steps 2 and 3 working toward the
center of the sequence
© 2006 Prentice Hall, Inc. 15 – 38
 Johnson’s Rule Example
Work Center 1 Work Center 2
Job (Drill Press) (Lathe)
A 5 2
B 3 6
C 8 4
D 10 7
E 7 12

© 2006 Prentice Hall, Inc. 15 – 39

 Johnson’s Rule Example
Work Center 1 Work Center 2
Job (Drill Press) (Lathe)
A 5 2
B 3 6
C 8 4 B E D C A
D 10 7
E 7 12

© 2006 Prentice Hall, Inc. 15 – 40

 Johnson’s Rule Example
Work Center 1 Work Center 2
Job (Drill Press) (Lathe)
A 5 2
B 3 6
C 8 4 B E D C A
D 10 7
E 7 12
Time 0 3 10 20 28 33

WC
1 B E D C A

WC
2

© 2006 Prentice Hall, Inc. 15 – 41

 Johnson’s Rule Example
Work Center 1 Work Center 2
Job (Drill Press) (Lathe)
A 5 2
B 3 6
C 8 4 B E D C A
D 10 7
E 7 12
Time 0 3 10 20 28 33

WC
1 B E D C A

WC
2 B E D C A

Time 0 1 3 5 7 9 10 11 12 13 17 19 21 22 23 25 27 29 31 33 35

B E D C A
© 2006 Prentice Hall, Inc. 15 – 42
 Limitations of Rule-Based
Dispatching Systems

1. Scheduling is dynamic and rules

need to be revised to adjust to
changes
2. Rules do not look upstream or
downstream
3. Rules do not look beyond due
dates

© 2006 Prentice Hall, Inc. 15 – 43

 Finite Capacity Scheduling
 Overcomes disadvantages of rule-based
systems by providing an interactive,
computer-based graphical system
 May include rules and expert systems or
simulation to allow real-time response to
system changes
 Initial data often from an MRP system
 FCS allows the balancing of delivery
needs and efficiency

© 2006 Prentice Hall, Inc. 15 – 44

 Finite Capacity Scheduling
Interactive Finite Capacity Scheduling
MRP Data • Routing files
• Master • Work center
schedule information
• BOM
• Inventory
Tooling
Priority and other
rules resources

• Expert
systems Setups and
run time
• Simulation
models

Figure 15.5

© 2006 Prentice Hall, Inc. 15 – 45

 Finite Capacity Scheduling

© 2006 Prentice Hall, Inc. 15 – 46

 Scheduling Repetitive
Facilities
 Level material use can help
repetitive facilities
 Better satisfy customer demand
 Lower inventory investment
 Reduce batch size
 Better utilize equipment and facilities

© 2006 Prentice Hall, Inc. 15 – 47

 Scheduling Repetitive
Facilities
 Advantages include:
1. Lower inventory levels
2. Faster product throughput
3. Improved component quality
4. Reduced floor-space requirements
5. Improved communications
6. Smoother production process

© 2006 Prentice Hall, Inc. 15 – 48

 Scheduling Services
Service systems differ from manufacturing
Manufacturing Services
Schedules machines Schedule staff
and materials
Inventories used to Seldom maintain
smooth demand inventories
Machine-intensive and Labor-intensive and
demand may be smooth demand may be variable
Scheduling may be bound Legal issues may constrain
by union contracts flexible scheduling
Few social or behavioral Social and behavioral
issues issues may be quite
© 2006 Prentice Hall, Inc.
important 15 – 49
 Scheduling Services
 Hospitals have complex scheduling
system to handle complex processes
and material requirements
 Banks use a cross-trained and flexible
workforce and part-time workers
 Airlines must meet complex FAA and
union regulations and often use linear
programming to develop optimal
schedules
 24/7 Operations use flexible workers and
variable schedules
© 2006 Prentice Hall, Inc. 15 – 50
 Demand Management
 Appointment or reservation
systems
 FCFS sequencing rules
 Discounts or other promotional
schemes
 When demand management is not
feasible, managing capacity
through staffing flexibility may be
used
© 2006 Prentice Hall, Inc. 15 – 51
 Scheduling Service Employees
With Cyclical Scheduling
 Objective is to meet staffing
requirements with the minimum
number of workers
 Schedules need to be smooth and
keep personnel happy
 Many techniques exist from simple
algorithms to complex linear
programming solutions
© 2006 Prentice Hall, Inc. 15 – 52
 Cyclical Scheduling Example
1. Determine the staffing requirements
2. Identify two consecutive days with the
lowest total requirements and assign
these as days off
3. Make a new set of requirements
subtracting the days worked by the first
employee
4. Apply step 2 to the new row
5. Repeat steps 3 and 4 until all
requirements have been met
© 2006 Prentice Hall, Inc. 15 – 53
 Cyclical Scheduling Example
M T W T F S S
Employee 1 5 5 6 5 4 3 3

Capacity
Excess Capacity

© 2006 Prentice Hall, Inc. 15 – 54

 Cyclical Scheduling Example
M T W T F S S
Employee 1 5 5 6 5 4 3 3
Employee 2 4 4 5 4 3 3 3

Capacity
Excess Capacity

© 2006 Prentice Hall, Inc. 15 – 55

 Cyclical Scheduling Example
M T W T F S S
Employee 1 5 5 6 5 4 3 3
Employee 2 4 4 5 4 3 3 3
Employee 3 3 3 4 3 2 3 3

Capacity
Excess Capacity

© 2006 Prentice Hall, Inc. 15 – 56

 Cyclical Scheduling Example
M T W T F S S
Employee 1 5 5 6 5 4 3 3
Employee 2 4 4 5 4 3 3 3
Employee 3 3 3 4 3 2 3 3
Employee 4 2 2 3 2 2 3 2

Capacity
Excess Capacity

© 2006 Prentice Hall, Inc. 15 – 57

 Cyclical Scheduling Example
M T W T F S S
Employee 1 5 5 6 5 4 3 3
Employee 2 4 4 5 4 3 3 3
Employee 3 3 3 4 3 2 3 3
Employee 4 2 2 3 2 2 3 2
Employee 5 1 1 2 2 2 2 1

Capacity
Excess Capacity

© 2006 Prentice Hall, Inc. 15 – 58

 Cyclical Scheduling Example
M T W T F S S
Employee 1 5 5 6 5 4 3 3
Employee 2 4 4 5 4 3 3 3
Employee 3 3 3 4 3 2 3 3
Employee 4 2 2 3 2 2 3 2
Employee 5 1 1 2 2 2 2 1
Employee 6 1 1 1 1 1 1 0

Capacity
Excess Capacity

© 2006 Prentice Hall, Inc. 15 – 59

 Cyclical Scheduling Example
M T W T F S S
Employee 1 5 5 6 5 4 3 3
Employee 2 4 4 5 4 3 3 3
Employee 3 3 3 4 3 2 3 3
Employee 4 2 2 3 2 2 3 2
Employee 5 1 1 2 2 2 2 1
Employee 6 1 1 1 1 1 1 0
Employee 7 1

Capacity
Excess Capacity

© 2006 Prentice Hall, Inc. 15 – 60

 Cyclical Scheduling Example
M T W T F S S
Employee 1 5 5 6 5 4 3 3
Employee 2 4 4 5 4 3 3 3
Employee 3 3 3 4 3 2 3 3
Employee 4 2 2 3 2 2 3 2
Employee 5 1 1 2 2 2 2 1
Employee 6 1 1 1 1 1 1 0
Employee 7 1

Capacity 5 5 6 5 4 4 3
Excess Capacity 0 0 0 0 0 1 0

© 2006 Prentice Hall, Inc. 15 – 61