OPERATIONS PLANNING AND SCHEDULING

Process planning
Long range Forecasting & demand management

Strategic capacity planning

Intermediate range Manufacturing

Sales and operations (aggregate) planning Sales plan Aggregate operations plan
Services

Master scheduling Material requirements planning Weekly workforce and customer scheduling Daily workforce

Short range

Order scheduling

Required Inputs to the Production Planning System

Competitorsbeh avior Raw material availability Market demand External to firm External capacity Planning for production Economic conditions

Current physical capacity

Current workforce

Inventory levels

Activities required for production

Internal to firm

A Basic Frame Work

Customer Orders Aggregate Production Plannig Demand Management

Engineering Design

Rough-Cut Capacity Planning

Inventory Management Shop-Floor Control

Master Production Schedule

Material Requirement Planning Detailed Capacity Planning Purchasing

Engineering Changes

Bill of Materials

Process Planning

Finished Products

Vendors

AGGREGATE PRODUCTION PLANNING:

In a high-variety, discrete manufacturing environment, demand for product may fluctuate considerably. On the other end, the resources of the company (number of machines, number of workers, etc.) remain constant during the planning horizon (normally 12 months). The best approach to obtain feasible solutions is to aggregate the information being processed.

MASTER PRODUCTION SCHEDULE:

The primary use of an aggregate production plan is to level the production schedule so that the production costs are minimized.
However, the output of an aggregate plan does not indicate individual product. This means that the aggregated plan must be disaggregated into individual product. The result of such a disaggregation methodologies is what is known as master production schedule.
6

Overview of the MRP System

Product Structure File Master Production Schedule Inventory Master File

Material Requirements Planning

Manufacturing Orders

Purchase Orders

Various Reports

What is MRP?
Computerized

Inventory

Control Production Planning System Management Information System Manufacturing Control System

When to use MRP

Job

Shop Production Complex Products Assemble-to-Order Environments Discrete and Dependent Demand Items

What can MRP do?

Reduce Inventory Levels Reduce Component Shortages Improve Delivery Performance Improve Customer Service Improve Productivity Simplified and Accurate Scheduling

Reduce Purchasing Cost Improve Production Schedules Reduce Manufacturing Cost Reduce Lead Times Less Scrap and Rework Higher Production Quality

What can MRP do?

Improve Communication Improve Plant Efficiency Reduce Freight Cost Reduction in Excess Inventory

Reduce Overtime Improve Supply Schedules Improve Calculation of Material Requirements Improve Competitive Position

Three Basic Steps of MRP

Identifying

Requirements Running MRP Creating the Suggestions Firming the Suggestions

Inventory Master File

On-Hand

Quantities On-Order Quantities Lot Sizes Safety Stock Lead Time Past-Usage Figures

An Example
Resource Planning: Assume that a jewelry manufacturing company decided to open three manufacturing sites (US, Ireland and Singapore). Each plant is going to run one shift except plating area which will be run 2 shifts due to high investment requirement.

Example Contd
Demand Management: Demand is forecasted for different product families and different plants as follows: US plant Earrings Pendants Rings Singapore plant 300000units/yr 200000units/yr 150000units/yr 350000 225000 200000 150000 100000 75000 Ireland plant

Production Plans: US Plant 1 2

Example Contd
Months 6 7 8

10 11 12

Earring 20K 20K 20K 20K 20K 20K 30K 30K 30K 30K 30K 30K Pendant 20K 20K 20K 20K 20K 20K 30K 40K 40K 40K 40K 40K Ring 10K 10K 10K 10K 10K 10K 15K 15K 15K 15K 15K 15K

PRODUCTION PLAN IS PREPARED FOR IRELAND AND SINGAPORE PLANTS AS WELL.

Example Contd
Demand Management:
Following manpower and resources requirements are estimated for each plant:

US plant Manpower Machine Type X Machine Type Y Machine Type Z 300 50 100 150

Ireland plant 200 40 120 40

Singapore plant 150 30 50 70

Example Contd
Master Production Schedule: US Plant Earring Family 1ST Month Weeks 2 3 4
1K 1K 2K 1K 5K 1K 2K 1K 1K 5K 2K 1K 1K 1K 5K

1
Gold Earring Gold Earring with red stone Silver Earring Silver Earring with red stone TOTAL 1K 1K 1K 2K 5K

MASTER SCHEDULE IS PREPARED FOR EACH MONTH (POSSIBLY FOR THE 1ST COUPLE OF MONTHS, NOT FOR THE ENTIRE YEAR) AND PRODUCT FAMILY.

Example Contd
Rough-cut Capacity Planning: Manpower and machine requirements are revised. US plant 330 55 95 190

Manpower Machine Type X Machine Type Y Machine Type Z

Example Contd
Materials Planning: Detailed material plans are prepared for subassemblies and parts to be manufactured; components and raw materials to be purchased. Weeks 5 6 7

1
Gold Silver Red Stone Plated parts

10 11 12

3kg 3kg 2.5kg 2.5kg 5kg 5kg 4kg 4kg 3K 2K 3K 2K 5K 5K 5K 5K

Example Contd
Capacity Requirements Planning: Weeks
1 2 Manpower 320 310 Machine 52 55 X Machine 90 92 Y Machine 178 163 Z 3 330 60 98 172 4 322 57 95 170 5 6 7 8 9 10 11 12

Example Contd
Purchasing: Contact vendors, evaluate quotes and cut purchase orders. Shop Floor Control: Assign parts to be plated to different plating lines Load manufacturing cells with products and determine start and completion times Cell1 Job1 Job 3 Job 7 Cell2 Job 2 Job 4 Cell3 Job 5 Job 8 Job 6 0 5hr 7 10 22 25 34 38

Planning vs. Control

planning

Plans
no

control

OK?
yes

Revise

Stop

Matching PPC with the Needs of the Firm

Number of Subparts

Just-in-Time

MRP

CPM/PERT

Repetitive Flow
Seconds Minutes Days Weeks Months

Time between successive units Examples: Oil, food, drugs, watches, TV, trucks, planes, houses, ships

Matching PPC with the Needs of the Firm

1.

Flow-Oriented Manufacturing Systems Very short time between successive units A few components needed Flow rate is the measure Ex: Chemical, food, petroleum

Matching PPC with the Needs of the Firm (Contd)

2. Repetitive-Nature Manufacturing Systems Short time between successive units Assemble similar products Flow Rate or Assembly Rate is the measure Ex: Televisions, Radios, Watches, Cars

Matching PPC with the Needs of the Firm (Contd)

3. Just-in-Time High production volume Low Product Variety Reduced Inventory and Leadtime Ex: Cars, Computers, Jewelry, Copy Machines

Matching PPC with the Needs of the Firm (Contd)

4. Materials Requirements Planning (MRP) Batch production High product variety Low production quantity Ex: Electric Motors, Fans

Matching PPC with the Needs of the Firm (Contd)

5. CPM/PERT Long leadtimes Low production quantity Ex: Airplanes, ships

PPC Functions

Material : Procurement, storage, inventory control and issue Methods : Processes , operations and their sequences. Machines and equipments : Selection of m/cs, maintenance policies, loading of jobs and proper utilization. Manpower : Manpower planning Routing : Sequence of operations to be performed. (Route sheet It defines each step of the production and lays down precise path or route through which product will flow during the conversion process)

Contd..
Estimating : Estimation of processing time both set up time and operations times and establishing performance standards. Loading and scheduling : Time table of production, priority sequencing and machine loading. Dispatching : Execution of plan production orders and instructions are released. Expediting and progressing : Follow up or keeping track of progress providing feedback to the PPC manager to prompt review of targets and schedules

Contd..
Inspection : Checking quality in production and of evaluating the efficiency of the processes, methods and workers so that improvements can be to achieve the desired level of quality. Evaluating and controlling : To improve the performance

Gantt Chart

Operations Scheduling

Work Center

A work center is an area in a business in which productive resources are organized and work is completed Can be a single machine, a group of machines, or an area where a particular type of work is done

Capacity and Scheduling

Infinite loading Finite loading Forward scheduling Backward scheduling

Typical Scheduling and Control Functions

Allocating orders, equipment, and personnel Determining the sequence of order performance Initiating performance of the scheduled work Shop-floor control

Work-Center Scheduling Objectives

Meet due dates Minimize lead time

Minimize setup time or cost

Minimize work-in-process inventory Maximize machine utilization

Priority Rules for Job Sequencing 1. First-come, first-served (FCFS) 2. Shortest operating time (SOT)
3.

Earliest due date first (EDD)

Example of Job Sequencing: FirstCome First-Served

Suppose you have the four jobs to the right arrive for processing on one machine
Jobs (in order of arrival) A B C D Processing Due Date Time (days) (days hence) 4 5 7 10 3 6 1 4

What is the FCFS schedule?

Do all the jobs get done on time? No, Jobs B, C, and D are going to be late

Answer: FCFS Schedule

Jobs (in order of arrival) A B C D Processing Time (days) 4 7 3 1 Due Date Flow Time (days hence) (days) 5 4 10 11 6 14 4 15

Example of Job Sequencing: Shortest Operating Time

Suppose you have the four jobs to the right arrive for processing on one machine
Jobs (in order of arrival) A B C D Processing Time (days) 4 7 3 1 Due Date (days hence) 5 10 6 4

What is the SOT schedule?

Do all the jobs get done on time?

Answer: Shortest Operating Time Schedule

Jobs (in order of arrival) D C A B Processing Time (days) 1 3 4 7 Due Date Flow Time (days hence) (days) 4 1 6 4 5 8 10 15

No, Jobs A and B are going to be late

Example of Job Sequencing: Earliest Due Date First

Suppose you have the four jobs to the right arrive for processing on one machine
Jobs (in order of arrival) A B C D Processing Time (days) 4 7 3 1 Due Date (days hence) 5 10 6 4

What is the earliest due date first schedule?

Do all the jobs get done on time?

Answer: Earliest Due Date First

Jobs (in order of arrival) D A C B Processing Time (days) 1 4 3 7 Due Date Flow Time (days hence) (days) 4 1 5 5 6 8 10 15

No, Jobs C and B are going to be late

Example of Job Sequencing: Johnsons Rule (Part 1)

Suppose you have the following five jobs with time requirements in two stages of production. What is the job sequence using Johnsons Rule?

Jobs A B C D

Time in Hours Stage 1 Stage 2 1.50 1.25 2.00 3.00 2.50 2.00 1.00 2.00

Example of Job Sequencing: Johnsons Rule (Part 2)

First, select the job with the smallest time in either stage. That is Job D with the smallest time in the first stage. Place that job as early as possible in the unfilled job sequence below. Jobs A B C D Time in Hours Stage 1 Stage 2 1.50 1.25 2.00 3.00 2.50 2.00 1.00 2.00

Drop D out, select the next smallest time (Job A), and place it 4th in the job sequence.

Drop A out, select the next smallest time. There is a tie in two stages for two different jobs. In this case, place the job with the smallest time in the first stage as early as possible in the unfilled job sequence. Then place the job with the smallest time in the second stage as late as possible in the unfilled sequence. Job Sequence 1 Job Assigned D 2 B 3 C 4 A

SCHEDULING N NUMBER ON JOBS ON N NO OF MACHINES Assignment method transportation method of linear programming. SCHEDULING N NUMBER ON JOBS ON N NO OF MACHINES Computer simulation

Shop-Floor Control: Major Functions

1. Assigning priority of each shop order 2. Maintaining work-in-process quantity information 3. Conveying shop-order status information to the office

Shop-Floor Control: Major Functions (Continued)

4. Providing actual output data for capacity control purposes 5. Providing quantity by location by shop order for WIP inventory and accounting purposes 6. Providing measurement of efficiency, utilization, and productivity of manpower and machines

Tools for Shop floor control

Daily dispatch list Status and exception reports,

Anticipated delay report, Scrap reports Rework reports Performance summary reports Shortage list Input/output control report- monitor workload capacity relationship

Input/Output Control
Input Work Center Output

Planned input should never exceed planned output

Focuses attention on bottleneck work centers

Principles of Work Center Scheduling

1. There is a direct equivalence between work flow and cash flow 2. The effectiveness of any job shop should be measured by speed of flow through the shop 3. Schedule jobs as a string, with process steps back-to-back 4. A job once started should not be interrupted

Principles of Job Shop Scheduling

5. Speed of flow is most efficiently achieved by focusing on bottleneck work centers and jobs 6. Reschedule every day

7. Obtain feedback each day on jobs that are not completed at each work center
8. Match work center input information to what the worker can actually do

Principles of Job Shop Scheduling (Continued)

9. When seeking improvement in output, look for incompatibility between engineering design and process execution 10. Certainty of standards, routings, and so forth is not possible in a job shop, but always work towards achieving it

Personnel Scheduling in Services

Scheduling consecutive days off

Scheduling daily work times

Scheduling hourly work times