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Operations Planning and Scheduling g

PowerPoint Slides by Jeff Heyl


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For Operations Management, Management 9e by Krajewski/Ritzman/Malhotra 2010 Pearson Education


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Across the Organization


z Operations planning and scheduling is the process of making sure that demand and supply plans are in balance at all levels Sa es a and d ope operations at o s p planning a ga and d z Sales scheduling z Requires managerial inputs from all of the firms functions z Each function is affected by the plan

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Across the Organization


TABLE 14.1 Term p Sales and operations plan (S&OP) Aggregate plan Production plan g plan p Staffing | | TYPES OF PLANS WITH OPERATIONS PLANNING AND SCHEDULING Definition A time-phased p plan p of future aggregate gg g resource levels so that supply is in balance with demand throughout the organization Another term for the sales and operations plan A manufacturing firms sales and operations plan that centers on production rates and inventory holdings A sales and operations p plan p for a service firm, , which centers on staffing and on other human resource-related factors An intermediate, more detailed, step in the planning process that lies between S&OP and scheduling A detailed plan that allocates resources over shorter time horizons to accomplish specific tasks

Resource plan Schedule

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Stages in Planning and Scheduling


z Aggregation gg g
Product

families

Workforce Time

z The Th relationship l ti hi of f operations ti plans l and d schedules to other plans


A

business plan annual plan or financial plan planning lowest p planning g level is scheduling g
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An

Resource The

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Stages in Planning and Scheduling


Figure 14.1 The Relationship of Sales and Operations Plans and Schedules to Other Plans
Business or annual l plan l Operations strategy t t

Sales and Operations Plan Forecasting Sales Plan Operations Plan Constraint management

Resource Pl R Planning i (services) ( i ) Workforce schedule Materials and facility resources

Resource Pl R Planning i (manufacturing) ( f t i ) Master production schedule Material requirements planning

Scheduling Employee schedules Facility y schedules Customer schedules

Scheduling Employee and equipment schedules Production order schedules Purchase order schedules

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Managing Demand
z Matching supply with demand becomes challenging when forecasts call for uneven d demand d patterns tt z Demand management, the process of changing demand patterns using one or more demand options

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Managing Demand
| DEMAND AND SUPPLY OPTIONS FOR | OPERATIONS PLANNING AND SCHEDULING Demand Options Supply Options Complementary Anticipation inventory products Promotional pricing Workforce adjustment (hiring or layoffs) Prescheduled Workforce utilization (overtime and appointments undertime) Reservations Part-time workers and subcontractors Revenue management Vacation schedules Backlogs Workforce schedules Backorders Job and customer sequence q Stockouts Expediting TABLE 14.2

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Sales and Operations Plans


Operations C rrent machine capacities Current Plans for future capacities Workforce capacities Current staffing level Distribution and marketing C stomer needs Customer Demand forecasts Competition behavior

Materials Supplier capabilities Storage capacity Materials availability

Aggregate plan

Accounting and finance Cost data Financial condition of firm

Engineering New products Product design changes Machine standards

Human resources Labor-market conditions Training capacity

Figure 14.2 Managerial Inputs from Functional Areas to Sales and Operations Plans
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Sales and Operations Plans


z Information inputs z Supply options

Anticipation inventory Workforce adjustment Workforce utilization Part-time workers Subcontractors Vacation schedules

z Planning strategies

Chase strategy Level strategy Mi d strategy Mixed t t


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Sales and Operations Plans


z Constraints and costs z Six steps in the sales and operations planning process
TABLE 14.3 Cost Regular time Overtime Hiring and layoff | TYPES OF COSTS WITH SALES AND OPERATIONS PLANNING Definition Regular-time wages plus benefits and pay for vacations Wages paid for work beyond the normal workweek exclusive of fringe benefits Cost of advertising jobs, interviews, training programs, scrap caused by inexperienced employees, exit interviews, severance pay, and retraining Capital, storage and warehousing, pilferage and obsolescence, insurance, and taxes Costs to expedite past-due orders, potential cost of losing a customer

Inventory holding Backorder and stockout

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Sales and Operations Plans

Figure 14.3 Sales and Operations Plan for Make-to-Stock Product Family
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Sales and Operations Plans

Gather data 1

Demand planning 2

Update S&OP spreadsheets 3

Finalize and communicate 6

Executive S&OP meeting 5

Consensus meeting 4

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Using Spreadsheets

Figure 14.4 Manufacturers Plan Using a Spreadsheet and Mixed Strategy


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Using Chase and Level Strategies


EXAMPLE 14.1 A large distribution center must develop a staffing plan that minimizes total costs using part-time stockpickers First level strategy that meets demand with the minimum use of undertime and not consider vacation scheduling Each part-time employee can work a maximum of 20 hours per week on regular time Instead of paying undertime, each workers day is shortened during slack periods and overtime can be used during peak periods
1 Forecasted demand 6 2 12 3 18 4 15 5 13 6 14 Total 78

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Using Chase and Level Strategies


Currently, 10 part-time clerks are employed. They have not been subtracted from the forecasted demand shown. Constraints and cost information are as follows: a. The size of training facilities limits the number of new hires in any period to no more than 10. b. No backorders are permitted. c. Overtime cannot exceed 20 percent of the regular-time capacity in any period. The most that any part-time employee can work is 1.20(20) = 24 hours per week. d. The following costs can be assigned: Regular-time wage rate Overtime wages Hires Layoffs
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$2,000/time $2 000/time period at 20 hrs/week 150% of the regular-time rate $1,000 per person $500 per person
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Using Chase and Level Strategies


SOLUTION a. Chase Strategy This strategy simply involves adjusting the workforce as needed to meet demand, demand as shown in Figure 14.5. 14 5 Rows in the spreadsheet that do not apply (such as inventory and vacations) are hidden. The workforce level row is identical to the forecasted demand row. row A large number of hirings and layoffs begin with laying off 4 part-time employees immediately because the current staff is 10 and the staff level required in period 1 is only 6. 6 However, However many employees, employees such as college students, prefer part-time work. The total cost is $173,500, and most of the cost increase comes from frequent hiring and layoffs, which add $17,500 to the cost of utilized regular-time regular time costs.

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Using Chase and Level Strategies

Figure 14.5 Spreadsheet for Chase Strategy

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Using Chase and Level Strategies


b. Level Strategy In order to minimize undertime, the maximum use of overtime possible must occur in the peak period. For this particular level strategy (other workforce options are possible), the most overtime that the manager can use is 20 percent of the regulartime capacity, w, so 1.20w = 18 employees required in peak period (period 3)

w=

18 = 15 employees 1.20

A 15-employee staff size minimizes the amount of undertime for this level strategy. Because the staff already includes 10 part-time employees, the manager should immediately hire 5 more. The complete plan is shown in Figure 14.6. The total cost ti is $164,000. $164 000
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Using Chase and Level Strategies

Figure 14.6 Spreadsheet for Level Strategy

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Application 14. 14.1


The Barberton Municipal Division of Road Maintenance is charged with road repair in the city of Barberton and surrounding area. Cindy Kramer, road maintenance director, must submit a staffing plan for the next year based on a set schedule h d l for f repairs i and d on the th city it budget. b d t Kramer K estimates ti t that the labor hours required for the next four quarters are 6,000, 12,000, 19,000, and 9,000, respectively. Each of the 11 workers on the workforce can contribute 520 hours per quarter. quarter Overtime is limited to 20 percent of the regular-time capacity in any quarter. Subcontracting is not permitted. Payroll costs are $6,240 in wages per worker for regular time worked up to 520 hours, with an overtime pay rate of $18 for each overtime hour. Although unused overtime capacity has no cost, unused d regular l time i is i paid id at $12 per hour. h The Th cost of f hiring a worker is $3,000, and the cost of laying off a worker is $2,000.

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Application 14. 14.1


Use a chase strategy for the Barberton Municipal Division that varies the workforce level without using overtime. Undertime p for the minimal amount mandated should be minimized, except because the quarterly requirements are not integer multiples of 520 hours. (Students complete highlighted sections)

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Application 14. 14.1


Quarter Forecasted F t d demand (hrs) Workforce level (workers) Undertime (hours) Overtime (hours) Utilized time (hours) Hires (workers) Layoffs (workers) 1 6 000 6,000 12 240 0 6,000 1 0 2 12 000 12,000 24 480 0 12,000 12 0 3 19 000 19,000 37 240 0 19,000 13 0 4 9 000 9,000 18 360 0 9,000 0 19 Total 46 000 46,000 91 1,320 0 46,000 26 19

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Application 14. 14.1


What is the total cost of this plan?

Costs per Quarter 1 Utilized time Undertime Overtime Hires Layoffs 2,880 0 3 000 3,000 0 2 5,760 0 36 000 36,000 0 3 $228,000 2,880 0 39 000 39,000 0 4 $108,000 4,320 0 0 38,000 Total Cost Total $552,000 15,840 0 78 000 78,000 38,000 $683,840 $72,000 $144,000

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14 23

Application 14. 14.2


Find a level plan for the Barberton Municipal Division that allows no delay in road repair and minimizes undertime. Overtime can be used to its limits in any quarter. Given that the d demand d peaks k in i quarter t 3, 3 we get: t 1.20w = 19,000 = 36.54 employee employee-period period equivalents 520

w = 30.45 or 31 employees

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14 24

Application 14. 14.2


Q Quarter t 1 Forecasted demand (hrs) Workforce level (workers) Undertime (hours) Overtime (hours) Utilized time (hours) Hires (workers) Layoffs (workers) 6,000 31 10,120 0 6,000 20 0 2 12,000 31 4,120 0 12,000 0 0 3 19,000 31 0 2,880 16,120 0 0 4 9,000 31 7,120 0 9,000 0 0 Total 46,000 124 21,360 2,880 43,120 20 0

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Application 14. 14.2


What is the total cost of this level workforce plan?

1 Utilized time Undertime Overtime Hires Layoffs $72,000 121,440 0 60,000 0

Costs per Quarter 2 3 $144,000 49,440 0 0 0 $193,440 0 51,840 0 0

4 $108,000 85,440 0 0 0 Total Cost

Total $517,440 256,320 51,840 60,000 0 $885 600 $885,600

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Application 14. 14.3


A mixed strategy considers and implements a fuller range of reactive alternatives than any one pure strategy. Now propose a plan of your own for the Barberton Municipal Division. Use the chase strategy as a base, but find a way to decrease the cost of hiring and layoffs by selectively using (Students complete p highlighted g g sections) ) some overtime. (

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Application 14. 14.3


Quarter 1 Forecasted demand W kf Workforce l level l Undertime (hours) Overtime (hours) Utilized time (hours) Hires (workers) Layoffs (workers) 6,000 12 240 0 6,000 1 0 2 12,000 24 480 0 12,000 12 0 3 19,000 31 0 2,880 16,120 7 0 4 9,000 18 360 0 9,000 0 13 Total 46,000 85 1,080 2,880 43,120 20 13

Several solutions are possible possible. The key idea in creating this one is hiring only 7 employees in quarter 3, while using overtime to its maximum limit and eliminating undertime for that quarter. Hiring fewer in quarter 3 allows the number of layoffs in quarter 4 to drop to only 13, down from 19.
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Application 14. 14.3


What is the cost of your mixed strategy plan?

1 Utilized time Undertime Overtime Hires Layoffs $72,000 2,880 0 3,000 0

Costs per Quarter 2 3 $144,000 5,760 0 36,000 0 $193,440 0 51,840 21,000 0

4 $108,000 4,320 0 0 26,000 Total Cost

Total $517,440 12,960 51,840 60,000 26,000 $668 240 $668,240

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Scheduling
z Takes operations and scheduling process from planning to execution and requires gathering data from sources such as demand forecasts, resource availability from the sales and operations plan, and specific ifi constraints t i t from f employees l and d customers. Generates a work schedule for employees or sequences of jobs or customers at workstations.

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Gantt Charts
z The job or activity progress chart z The workstation chart
C Current td date t

Job

4/17 4/18 4/19 4/20 4/21 4/22 4/23 4/24 4/25 4/26
Start activity Finish activity Scheduled activity time

Ford

Nissan

Actual progress Nonproductive N d ti time

Pontiac

Figure 14.7 Gantt Progress Chart for an Auto Parts Company


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Gantt Charts
Time
Workstation 12 7am 8am 9am 10am 11am pm
Dr. Jon Adams

1pm 2pm 3pm 4pm 5pm 6pm

Operating Room A

Dr. Aubrey Brothers

Dr. Alaina Bright

Operating Room B

Dr. Gary Case

Dr. Jeff Dow

Dr. Madeline Easton

Operating Room C

Dr. Jordanne Flowers

Dr. Dan Gillespie

Figure 14.8 Gantt Workstation Chart for Operating Rooms at a Hospital

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Scheduling Employees
z Translate the staffing plan into specific schedules of work for each employee z Constraints

Technical constraints L Legal l and d behavioral b h i l considerations id ti Psychological needs of workers

z Rotating schedule z Fixed schedule

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Scheduling Employees
z Steps in developing a workforce schedule
Step 1: Find all the pairs of consecutive days Step 2: If a tie occurs occurs, choose one of the tied pairs, consistent with the provisions written into the labor agreement Step 3: Assign the employees for the selected pair of days off Step 4: Repeat steps 1 3 until all of the requirements have been satisfied

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Developing a Workforce Schedule


EXAMPLE 14.2 The Amalgamated Parcel Service is open seven days a week. The schedule of requirements is
Day Required number of employees M 6 T 4 W 8 Th 9 F 10 S 3 Su 2

The manager needs a workforce schedule that provides two consecutive days off and minimizes the amount of total slack capacity. To break ties in the selection of off days, the scheduler gives preference to Saturday and Sunday if it is one of the tied pairs. If not, she selects one of the tied pairs arbitrarily.

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Developing a Workforce Schedule


SOLUTION Friday contains the maximum requirements, and the pair S Su has the lowest total requirements. Therefore, Employee 1 is scheduled to work Monday through Friday. Note that Friday still has the maximum requirements and that the requirements for the S Su pair are carried forward because these are Employee 1 1s s days off off. These updated requirements are the ones the scheduler uses for the next employee. The day-off ff assignments f for the employees are shown in the following table.

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Developing a Workforce Schedule


Scheduling Days Off M 6 5 4 3 3 2 2 1 T 4 3 2 1 1 0 0 0 W 8 7 6 5 4 3 2 1 Th 9 8 7 6 5 4 3 2 F 10 9 8 7 6 5 4 3 S 3 3 3 3 2 2 1 1 Su 2 2 2 2 1 1 0 0 Employee 1 2 3 4 5 6 7 8 Comments The SSu pair has the lowest total requirements. Assign Employee 1 to a M-F schedule. The SSu pair has the lowest total requirements. Assign E l Employee 2 to t a M-F M F schedule. h d l The SSu pair has the lowest total requirements. Assign Employee 3 to a M-F schedule. The MT pair has the lowest total requirements. Assign E l Employee 4 to t a W-Su W S schedule. h d l The SSu pair has the lowest total requirements. Assign Employee 5 to a M-F schedule. The MT pair has the lowest total requirements. Assign Employee 6 to a W-Su W Su schedule. schedule The SSu pair has the lowest total requirements. Assign Employee 7 to a M-F schedule. Four pairs have the minimum requirement and the lowest total total. Choose the S SSu Su pair according to the tietie breaking rule. Assign Employee 8 to a M-F schedule. Arbitrarily choose the SuM pair to break ties because the SSu pair does not have the lowest total requirements. Assign Employee 9 to a T-S schedule. Choose the SSu pair according to the tie-breaking rule. Assign Employee 10 to a M-F schedule.
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10

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Developing a Workforce Schedule


Scheduling Days Off M 6 5 4 3 3 2 2 1 T 4 3 2 1 1 0 0 0 W 8 7 6 5 4 3 2 1 Th 9 8 7 6 5 4 3 2 F 10 9 8 7 6 5 4 3 S 3 3 3 3 2 2 1 1 Su 2 2 2 2 1 1 0 0 Employee 1 2 3 4 5 6 7 8 Comments The SSu pair has the lowest total requirements. Assign Employee 1 to a M-F schedule. The SSu pair has the lowest total requirements. Assign E l Employee 2 to t a M-F M F schedule. h d l The SSu pair has the lowest total requirements. Assign Employee 3 to a M-F schedule. The MT pair has the lowest total requirements. Assign E l Employee 4 to t a W-Su W S schedule. h d l The SSu pair has the lowest total requirements. Assign Employee 5 to a M-F schedule. The MT pair has the lowest total requirements. Assign Employee 6 to a W-Su W Su schedule. schedule The SSu pair has the lowest total requirements. Assign Employee 7 to a M-F schedule. Four pairs have the minimum requirement and the lowest total total. Choose the S SSu Su pair according to the tietie breaking rule. Assign Employee 8 to a M-F schedule. Arbitrarily choose the SuM pair to break ties because the SSu pair does not have the lowest total requirements. Assign Employee 9 to a T-S schedule. Choose the SSu pair according to the tie-breaking rule. Assign Employee 10 to a M-F schedule.
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Developing a Workforce Schedule


In this example, Friday always has the maximum requirements and should be avoided as a day off. off The final schedule for the employees is shown in the following table.
Final Schedule Employee 1 2 3 4 5 6 7 8 9 10 Capacity, C Requirements, R Slack, C R M X X X off X off X X off X 7 6 1 T X X X off X off X X X X 8 4 4 W X X X X X X X X X X 10 8 2 Th X X X X X X X X X X 10 9 1 F X X X X X X X X X X 10 10 0 S off off off X off X off off X off 3 3 0 Su off off off X off X off off off off 2 2 0 50 42 8
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Total

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Sequencing Jobs at a Workstation


z Priority sequencing rules

First-come, first-served (FCFS) Earliest due date (EDD)

z Performance measures

Flow time
Flow time = Finish time + Time since job arrived at workstation

Past due (also referred to as tardiness)

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14 40

Using the FCFS Rule


EXAMPLE 14.3 Currently a consulting company has five jobs in its backlog. The time since the order was placed, processing time, and promised due dates are given in the following table. Determine the schedule by using the FCFS rule, and calculate the average days past due and flow time. How can the schedule be p , if average g flow time is the most critical? improved,
Customer A B C D E Time Since Order Arrived (days ago) 15 12 5 10 0 Processing Time (days) 25 16 14 10 12 Due Date (days from now) 29 27 68 48 80

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14 41

Using the FCFS Rule


SOLUTION a. The FCFS rule states that Customer A should be the first one in the sequence, because that order arrived earliest15 days ago. Customer Es E s order arrived today, so it is processed last. The sequence is shown in the following table, along with the days past due and flow times.
Customer Sequence A B C D E Start Time (days) Processing Time (days) Finish Time (days) Due Date Days Past Due Days Ago Since Order Arrived Flow Time (days)

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14 42

Using the FCFS Rule


SOLUTION a. The FCFS rule states that Customer A should be the first one in the sequence, because that order arrived earliest15 days ago. Customer Es E s order arrived today, so it is processed last. The sequence is shown in the following table, along with the days past due and flow times.
Customer Sequence A B C D E Start Time (days) 0 25 41 51 65 + + + + + Processing Time (days) 25 16 10 14 12 = = = = = Finish Time (days) 25 41 51 65 77 Due Date 29 27 48 68 80 Days Past Due 0 14 3 0 0 Days Ago Since Order Arrived 15 12 10 5 0 Flow Time (days) 40 53 61 70 77

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14 43

Using the FCFS Rule


The finish time for a job is its start time plus the processing time. Its finish time becomes the start time for the next job in the sequence, assuming that the next job is available for immediate processing. The days past due for a job is zero (0) if it d its due d date t i is equal l to t or exceeds d the th finish fi i h time. ti Otherwise Oth i it equals the shortfall. The flow time for each job equals its finish time plus the number of days ago since the order first arrived at the workstation workstation. The days past due and average flow time performance measures for the FCFS schedule are
Average days past due = 0 + 14 + 3 + 0 + 0 = 3.4 days 5

Average flow time =

40 + 53 + 61 + 70 + 77 = 60.2 days 5

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14 44

Using the FCFS Rule


b. The average flow time can be reduced. One possibility is the sequence shown h in i the th following f ll i table. t bl
Customer Sequence D E C B A Start Time (days) Processing Time (days) Finish Time (days) Due Date Days Past Due Days Ago Since Order Arrived Flow Time (days)

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14 45

Using the FCFS Rule


b. The average flow time can be reduced. One possibility is the sequence shown h in i the th following f ll i table. t bl
Customer Sequence D E C B A Start Time (days) 0 10 22 36 52 5 + + + + + Processing Time (days) 10 12 14 16 25 5 = = = = = Finish Time (days) 10 22 36 52 77 Due Date 48 80 68 27 29 9 Days Past Due 0 0 0 25 48 8 Days Ago Since Order Arrived 10 0 5 12 15 5 Flow Time (days) 20 22 41 64 92 9

0 + 0 + 0 + 25 + 48 = 14.6 days 5 20 + 22 + 41 + 64 + 92 Average flow time = = 47.8 days 5 Average days past due =

This schedule reduces the average flow time from to 60.2 to 47.8 daysa 21 percent improvement. However, the past due times for jobs A and B have increased.
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Software Support
z Computerized scheduling systems are available to cope with the complexity of workforce scheduling z Software is also available for sequencing jobs at workstations z Advance planning and scheduling (APS) systems t

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14 47

Application 14. 14.4


Revisit Example 14.3, where the consulting company has five jobs in its backlog. Create a schedule using the EDD rule, calculating the average days past due and flow time. In this case, does EDD outperform the FCFS rule? SOLUTION
Customer Sequence B A D C E Start Time (days) 0 16 41 51 65 + + + + + Processing Time (days) 16 25 10 14 12 = = = = = Finish Time (days) 16 41 51 65 77 Due Date 27 29 48 68 80 Days Past Due 0 12 3 0 0 Days Ago Since Order Arrived 12 15 10 5 0 Flow Time (days) 28 56 61 70 77

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14 48

Application 14. 14.4


Customer Sequence q B A D C E Start Time (days) 0 16 41 51 65 + + + + + Processing Time ( (days) y ) 16 25 10 14 12 = = = = = Finish Time (days) 16 41 51 65 77 Due Date 27 29 48 68 80 Days Past Due 0 12 3 0 0 Days Ago Since Order Arrived 12 15 10 5 0 Flow Time (days) 28 56 61 70 77

The days past due and average flow time performance measures for the EDD schedule are
0 + 12 + 3 + 0 + 0 = 3.0 days 5 28 + 56 + 61 + 70 + 71 Average flow time = = 58.4 days 5 Average days past due =

By both measures, EDD outperforms the FCFS. However, th solution the l ti found f d in i part t (b) of f Example E l 14.3 14 3 still till has h the th best average flow time of only 47.8 days.
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Solved Problem 1
The Cranston Telephone Company employs workers who lay telephone cables and perform various other construction tasks. The company prides itself on good service and strives to complete all service orders within the planning period in which th are received. they i d Each worker puts in 600 hours of regular time per planning period and can work as many p y as an additional 100 hours of overtime. The operations department has estimated the following workforce requirements for such services over the next four planning periods:
Planning Period Demand (hours) 1 21,000 2 18,000 3 30,000 4 12,000

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Solved Problem 1
Cranston pays regular-time wages of $6,000 per employee per period for any time worked up to 600 hours (including undertime). The overtime pay rate is $15 per hour over 600 hours. Hiring, training, and outfitting a new employee costs $8 000 Layoff $8,000. L ff costs t are $2,000 $2 000 per employee. l Currently, C tl 40 employees work for Cranston in this capacity. No delays in service, or backorders, are allowed. Use the spreadsheet approach to answer the following questions: a. Prepare a chase strategy using only hiring and layoffs. What are the total numbers of employees hired and laid off? b. Develop a workforce plan that uses the level strategy, relaying only on overtime and undertime. Maximize the use of overtime o ertime d during ring the peak period so as to minimi minimize e the workforce level and amount of undertime. gy plan. c. Propose an effective mixed-strategy d. Compare the total costs of the three plans.
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Solved Problem 1
a. The chase strategy workforce is calculated by dividing the demand for each period by 600 hours, or the amount or regular-time work for one employee during one period. This strategy calls for a total of 20 workers to be hired and 40 to b laid be l id off ff during d i the th four-period f i d plan. l Figure Fi 14 9 shows 14.9 h the th chase strategy solution that OM Explorers Sales and Operations Planning with Spreadsheets solver produces. We simply hide any unneeded columns and rows in this generalgeneral purpose solver.

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Solved Problem 1

Figure 14.9 Spreadsheet for Chase Strategy


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Solved Problem 1
b. The peak demand is 30,000 hours in period 3. As each employee can work 700 hours per period (600 on regular time and 100 on overtime), the workforce level of the level strategy that minimizes undertime is 30,000/700 = 42.86, or 43 employees. l This Thi strategy t t calls ll for f three th employees l to t be b hired in the first quarter and for none to be laid off. To convert the demand requirements into employee-period equivalents divide the demand in hours by 600. equivalents, 600 For example, the demand of 21,000 hours in period 1 translates into 35 employee-period equivalents (21,000/600) and demand in period 3 translates into 50 employee-period employee period equivalents (30,000/600). Figure 14.10 shows OM Explorers spreadsheet for this level strategy that minimizes undertime.

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Solved Problem 1

Figure 14.10 Spreadsheet for Level Strategy


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Solved Problem 1
c. The mixed-strategy plan that we propose uses a combination of hires, layoffs, and overtime to reduce total costs. The workforce is reduced by 5 at the beginning of the first period, increased by 8 in the third period, and reduced b 13 in by i the th fourth f th period. i d Figure Fi 14 11 shows 14.11 h the th results. lt

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Solved Problem 1

Figure 14.11 Spreadsheet for Mixed Strategy


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Solved Problem 1
d The d. Th total t t l cost t of f the th chase h strategy t t is i $1,050,000. $1 050 000 The level strategy results in a total cost of $1,119,000. $ , , The mixed-strategy gy p plan was developed by trial and error and results in a total cost of $1,021,000. Further improvements are possible. possible

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Solved Problem 2
The Food Bin grocery store operates 24 hours per day, 7 days per week. Fred Bulger, the store manager, has been analyzing the efficiency and productivity of store operations recently. Bulger decided to observe the need for checkout clerks on the fi t shift first hift for f a one-month th period. i d At th the end d of f the th month, th he h calculated the average number of checkout registers that should be open during the first shift each day. His results showed peak needs on Saturdays and Sundays. Sundays

Day Number of Clerks Required

M 3

T 4

W 5

Th 5

F 4

S 7

S Su 8

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Solved Problem 2
Bulger now has to come up with a workforce schedule that guarantees each checkout clerk two consecutive days off but still covers all requirements. a. Develop a workforce schedule that covers all requirements while giving two consecutive days off to each clerk. How many clerks are needed? Assume that the clerks have no preference regarding p g g which days y they y have off. b. Plans can be made to use the clerks for other duties if slack or idle time resulting from this schedule can be determined. How much idle time will result from this schedule schedule, and on what days?

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Solved Problem 2
SOLUTION a. We use the method demonstrated in Example 14.2 to determine the number of clerks needed. The minimum number of clerks is eight.
Day M Requirements Clerk 1 R Requirements i t Clerk 2 Requirements Clerk 3 Requirements Clerk 4 3 off 3 off 3 X 2 X T 4 off 4 off 4 X 3 X W 5 X 4 X 3 X 2 X Th 5 X 4 X 3 off 3 off F 4 X 3 X 2 off 2 off S 7 X 6 X 5 X 4 X Su 8 X 7 X 6 X 5 X

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Solved Problem 2
Day M Requirements Clerk 5 Requirements Clerk 6 Requirements Clerk 7 R Requirements i t Clerk 8 Requirements 1 X 0 off 0 X 0 X 0 T 2 off 2 off 2 X 1 X 0 W 1 off 1 X 0 off 0 X 0 Th 3 X 2 X 1 off 1 X 0 F 2 X 1 X 0 X 0 off 0 S 3 X 2 X 1 X 0 off 0 Su 4 X 3 X 2 X 1 X 0

The minimum number of clerks is eight.

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

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Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall.

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