THE UNIVERSITY OF LARKANO

BUSINESS ADMINISTRATION
DEPARTMENT

LECTURE NO: 5

COURSE INSTRUCTOR:
SHAGUFTA SALEEM SHAIKH

OPERATIONS
© 2006 Prentice Hall, Inc. MANAGEMENT (BBA 2K21) BY: SHAGUFTA SALEEM SHAIKH
15 – 1
 Outline
 The Strategic Importance Of Short-
Term Scheduling

 Scheduling Issues
 Forward and Backward Scheduling
 Scheduling Criteria

© 2006 Prentice Hall, Inc. 15 – 2

 Outline – Continued
 Scheduling Process-Focused
Facilities
 Loading Jobs
 Input-Output Control
 Gantt Charts
 Assignment Method

© 2006 Prentice Hall, Inc. 15 – 3

 Outline – Continued
 Sequencing Jobs
 Priority Rules for Dispatching Jobs
 Critical Ratio
 Sequencing N Jobs on Two
Machines: Johnson’s Rule
 Limitations Of Rule-Based
Dispatching Systems
 Finite Capacity Scheduling (FCS)

© 2006 Prentice Hall, Inc. 15 – 4

 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 – 5

 Learning Objectives
When you complete this chapter, you
should be able to:
Describe or Explain:
 Scheduling
 Sequencing
 Shop loading
 Theory of constraints

© 2006 Prentice Hall, Inc. 15 – 6

 Short-term Scheduling
 short-term scheduling is defined
as drawing up schedules giving detailed
times for jobs, people, materials,
equipment and any other resources
utilized in the process.

 The objectives would be to allocate and

prioritize to available facilities demand
generated either by forecasts or
customer orders.

© 2006 Prentice Hall, Inc. 15 – 7

 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 – 8
 Scheduling Issues
 Scheduling deals with the timing of
operations
 The task is the allocation and
prioritization of demand
 Significant issues are
 The type of scheduling, forward or
backward
 The criteria for priorities

© 2006 Prentice Hall, Inc. 15 – 9

 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 – 10
 Forward and Backward
Scheduling
 Forward scheduling starts as soon
as the requirements are known
 Produces a feasible schedule
though it may not meet due dates
 Frequently results in
excessive work-in-
process inventory
Due
Now Date

© 2006 Prentice Hall, Inc. 15 – 11

 Forward and Backward
Scheduling
 Backward scheduling begins with
the due date and schedules the final
operation first
 Schedule is produced by working
backwards though the processes
 Resources may not
be available to
accomplish the Due
Now
schedule Date

© 2006 Prentice Hall, Inc. 15 – 12

 Forward and Backward Scheduling

Forward scheduling is planning with the primary

objective of completing a task as soon as possible, with
plenty of lead time.
In production and manufacturing, forward scheduling
typically means planning to ensure that each step in a
process is completed immediately when the time or
resources are available.

Backward scheduling is planning with the primary

objective of completing tasks right on time. Backward
scheduling is optimized for flexibility and allows
businesses to easily incorporate last-minute changes or
customizations.

© 2006 Prentice Hall, Inc. 15 – 13

 Forward and Backward Scheduling

© 2006 Prentice Hall, Inc. 15 – 14

 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 – 15
 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 – 16
 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 – 17

 Loading Jobs

 Assign jobs so that costs, idle

time, or completion time are
minimized
 Two forms of loading
 Capacity oriented
 Assigning specific jobs to work
centers

© 2006 Prentice Hall, Inc. 15 – 18

 Input-Output Control

 Identifies overloading and

underloading conditions
 Prompts managerial action to
resolve scheduling problems

© 2006 Prentice Hall, Inc. 15 – 19

 Input-Output Control
Example
Work Center DNC Milling (in standard hours)

Week Ending 6/6 6/13 6/20 6/27 7/4 7/11

Planned Input 280 280 280 280 280
Actual Input 270 250 280 285 280
Cumulative Deviation –10 –40 –40 –36

Planned Output 320 320 320 320

Actual Output 270 270 270 270
Cumulative Deviation –50 –100 –150 –200

Cumulative Change 0 –20 –10 +5

in Backlog

Figure 15.2
© 2006 Prentice Hall, Inc. 15 – 20
 Input-Output Control
Example
Work Center DNC Milling (in standard hours)

Week Ending 6/6 6/13 6/20 6/27 7/4 7/11

Planned Input 280 280 280 280 280
Actual Input 270 250 280 285 280
Cumulative Deviation –10 –40 –40 –36

Planned Output 320 320 320 320 Explanation:

Explanation: 250 input,
270 input, Actual Output 270 270 270 270 270 output implies
270 output implies
Cumulative Deviation –50 –100 –150 –200 –20 change
0 change
Cumulative Change 0 –20 –10 +5
in Backlog

Figure 15.2
© 2006 Prentice Hall, Inc. 15 – 21
 Input-Output Control
Example
Options available to operations
personnel include:
1. Correcting performances
2. Increasing capacity
3. Increasing or reducing input to
the work center

© 2006 Prentice Hall, Inc. 15 – 22

 Gantt Charts

 A Gantt chart is defined as a graphical

representation of activity against time;
 it helps project professionals monitor
progress. Gantt charts are essentially
task scheduling tools:
 operation management timelines and
tasks are converted into horizontal bars
(also called Gantt bars) to form a bar
chart.

© 2006 Prentice Hall, Inc. 15 – 23

 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 – 24
 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 – 25
 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 – 26

 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 – 27

 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 – 28

 Sequencing Example
FCFS: Sequence A-B-C-D-E
Total flow time
Average completion time = = 77/5 = 15.4 days
Number of jobs
Total job work time
Utilization = = 28/77 = 36.4%
Total flow time
Average number of Total flow time
jobs in the system = = 77/28 = 2.75 jobs
Total job work time
Total late days
Average job lateness = = 11/5 = 2.2 days
Number of jobs

© 2006 Prentice Hall, Inc. 15 – 29

 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 – 30

 Sequencing Example
SPT: Sequence B-D-A-C-E
Total flow time
Average completion time = = 65/5 = 13 days
Number of jobs
Total job work time
Utilization = = 28/65 = 43.1%
Total flow time
Average number of Total flow time
jobs in the system = = 65/28 = 2.32 jobs
Total job work time
Total late days
Average job lateness = = 9/5 = 1.8 days
Number of jobs

© 2006 Prentice Hall, Inc. 15 – 31

 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 – 32

 Sequencing Example
EDD: Sequence B-A-D-C-E
Total flow time
Average completion time = = 68/5 = 13.6 days
Number of jobs
Total job work time
Utilization = = 28/68 = 41.2%
Total flow time
Average number of Total flow time
jobs in the system = = 68/28 = 2.43 jobs
Total job work time
Total late days
Average job lateness = = 6/5 = 1.2 days
Number of jobs

© 2006 Prentice Hall, Inc. 15 – 33

 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 – 34

 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 – 35

 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 – 36

 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 – 37
 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 – 38

 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 – 39

 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 – 40
 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 – 41

 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 – 42
 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 – 43

 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 – 44

 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 – 45

 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
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