Approach To Production Scheduling Wave 13

Pragmatic Approach to Production Scheduling
Introduction: An effective and reliable production scheduling system is must for a manufacturing organization to achieve
true operations excellence. Many organizations often struggle to implement an effective production planning system which
often leads to shop-floor inefficiencies, large Inventory and WIP levels. Lack of accurate Production Scheduling also
affects timely delivery and quality of goods thus impacting overall customer satisfaction.
Based on my experience I've tried to present a pragmatic approach to production planning and scheduling through this
series comprising of five Articles. The series primarily focuses on Production Scheduling and Capacity Planning utilizing
Oracle Inventory, Bills of Material (BOM), Work in Process (WIP), Advanced Supply Chain Planning (ASCP) and
Production Scheduling (PS) modules.
I've described five waves of implementing an effective production scheduling system taking into view the complexities,
pre-requisites and business maturity required for each wave.
www.OracleMfgBlog.wordpress.com
This article is the first of a five-article series "Pragmatic Approach to Production Scheduling" and describes the "Wave 1"
of the above discussed approach.
Wave 1: Accurate Lead Time computation and WIP based Job scheduling
The main pre-requisite for any production scheduling system to work effectively is accurate master data. It is essential to
validate the correctness of data and practically understand the lead time computation & detailed scheduling logic before
proceeding ahead with an advance planning system such as Oracle ASCP or PS. Following is the fine print of critical
master data elements and their exact impact on production scheduling.
Assumption: Unconstrained material availability and production scheduling can be carried out on the basis of available
machine and manpower resources (Hours).
Four Scenarios are discussed below to demonstrate the lead time calculation and its impact on Job scheduling. Two
critical attributes required towards manufacturing lead time computation and scheduling are:
Lead Time %: Percent of manufacturing (processing) lead time required for previous operations, calculated from the start
of a job to the start of an operation.
Offset %: Percent of manufacturing (processing) lead time required for previous Manufacturing Lead Times operations,
calculated from the start of the job to the start time of a resource at an operation.
Scenario A: Sequential Operations with single Assigned Units

Let's discuss a typical case of component manufacturing where multiple operations and activities need to be carried out
sequentially one after another with no parallel / overlapping activities.
1)
Routing definition: A Routing is defined for TA0001 (Test Assembly for demonstration) in following fashion. Critical
details are mentioned below in tabular format. (Navigation: Bill of materials Routings Routings New)
Operation
Sequence
5
10
10
20
Department
Resource
Usage (Hrs)
Scheduling flag
Assigned Units
Basis
MACHINING
ASSEMBLY
ASSEMBLY
FINISHING
R001
R002
R003
R004
12
12
24
36
Yes
Yes
Yes
Yes
1
1
1
1
Item
Item
Item
Item
Note: 24 hour production and resource availability is assumed for simplification and highlighting computation logic
2)
Lead Time and Offset % Computation: Manufacturing lead time computation is carried out based on this Routing
data ((Navigation: Bill of materials Routings Routings Find Tools Compute Lead Time) with following
results. "Lead Time %" and Resource "Offset %" are estimated.
Operation
Sequence
5
10
10
20
Department
MACHINING
ASSEMBLY
ASSEMBLY
FINISHING
Lead
Time %
0
14.29
57.14
Resource
R001
R002
R003
R004
Usage
(Hrs)
12
12
24
36
Scheduling
flag
Yes
Yes
Yes
Yes
Offset %
0
14.29
28.57
57.14
"Lead Time % (LT)" and "Offset % (OT)" parameters are updated based on above listed definition.
Detailed Illustration:
Since there is no operation prior to first operation ("Operation 5") both LT as well as OT are set to zero (0).
Total hours consumed in first operation = (12/84)*100 => 14.29% , hence LT for "Operation 10" is set as 14.29%
which is same as OT for R002 resource assigned to this operation
Total hours consumed in until the start of this resource activity = (24/84)*100 => 28.57% , hence OT is set to
28.57%
Total hours consumed in until the start of "Operation 20" = (48/84)*100 => 57.14% , hence LT for "Operation 20" is
set as 57.14% which is same as OT for R004 resource assigned to this operation
3) Detailed Scheduling from Oracle WIP
Oracle WIP uses detailed up-to-minute Job scheduling based on Routing details (as defined above) and does not refer
Item Lead time attributes. Lead time computation logic which updates the item level lead time attributes for MRP/ASCP
planning is discussed in next section.
Let's have a quick snapshot of Job based scheduling and validate our routing data. Following Gantt chart (Navigation:
WIP Discrete Job Workbench) shows the Job operations being scheduled sequentially as per the details mentioned
above.
Job 254215 is created for Quantity 1 using the above defined routing for assembly "TA0001".
Snapshot of resource loading for the concerned resources (against all jobs scheduled to use these resources)
Scenario B: Sequential Operations with Multiple Assigned Units

Lets repeat the above analysis with just one change i.e. No. of assigned units for Resource R004 is changed to 2 instead
of 1.
1)
Operation
Sequence
5
10
10
20
Department
Resource
Usage (Hrs)
Scheduling flag
Assigned Units
Basis
MACHINING
ASSEMBLY
ASSEMBLY
FINISHING
R001
R002
R003
R004
12
12
24
36
Yes
Yes
Yes
Yes
1
1
1
2
Item
Item
Item
Item
2)
Operation
Sequence
5
10
10
20
Department
MACHINING
ASSEMBLY
ASSEMBLY
FINISHING
Lead
Time %
0
14.29
57.14
Resource
R001
R002
R003
R004
Usage
(Hrs)
12
12
24
36
Scheduling
flag
Yes
Yes
Yes
Yes
Assigned
Units
1
1
1
2
Offset %
0
18.18
36.36
72.73
"Lead Time % (LT)" and "Offset % (OT)" parameters are updated based on above listed definition. Please note that
chaning no. of assigned units from1 to 2 actually reduces the total manufacturing lead time to 66 hours instead of 84
hours as in scenario A.
Total hours consumed in first operation => (12/66)*100 => 18.18.% , hence LT for "Operation 10" is set as
18.18% which is same as OT for R002 resource assigned to this operation
36.36%
above.
Please note that assigning 2 units to R004 actually resulted in job being completed by Friday itself instead of next Monday
as in scenario A. Though total resource usage for R004 increased on Friday resulting in Overload.
Scenario C: Parallel Resource Operations

Let's again repeat the above analysis with one more change i.e. making R002 and R003 as parallel resources
1)
Operation
Sequence
5
10
10
20
Department
Resource
MACHINING
ASSEMBLY
ASSEMBLY
FINISHING
R001
R002
R003
R004
Usage
(Hrs)
12
12
24
36
Scheduling flag
Yes
Yes
Yes
Yes
Assigned
Units
1
1
1
2
Schedule
Sequence No.
NA
1
1
NA
Basis
Item
Item
Item
Item
Schedule Sequence No. is kept as 1 (in Operation Resources scheduling tab) i.e. both resources are required to work
parallel.
2)
Operation
Sequence
5
Department
MACHINING
Lead
Time %
0
Resource
R001
Usage
(Hrs)
12
Schedule
Sequence No.
NA
Assigned
Units
1
Offset %
0
10
10
20
ASSEMBLY
ASSEMBLY
FINISHING
22.22
66.67
R002
R003
R004
12
24
36
1
1
NA
1
1
2
22.22
22.22
66.67
making R002 and R003 as parallel reduces the total manufacturing lead time to 54 hours instead of 66 hours as in
scenario B. This change is due to the fact that for Operation second operation, processing time is considered as 24 which
is maximum of the two parallel resources
Total hours consumed in first operation => (12/54)*100 => 22.22% , hence LT for "Operation 10" is set as 22.22%
which is same as OT for R002 resource assigned to this operation
22.22%
above.
Please note that making R002 and R003 parallel resources resulted in further reduction in manufacturing lead time as two
activities are carried out in parallel. Creating Job for Scenario C resulted in overloading of R001 as well on Wednesday.
Please note that for demonstration purpose I am creating a new job for each scenario keeping the dates same which is
leading to increasing in Resource loadings.
Scenario D: Overlapping Operations with Schedule attribute as "Prior" / "Next" options

Let's again repeat the above analysis by adding one more change to scenario B i.e. setting "Schedule" attribute for R001
as "Next" and for R004 as "Prior"
4)
Operation
Sequence
5
10
10
20
Department
Resource
MACHINING
ASSEMBLY
ASSEMBLY
FINISHING
R001
R002
R003
R004
Usage
(Hrs)
12
12
24
36
Schedule
Next
Yes
Yes
Prior
Assigned
Units
1
1
1
2
Basis
Item
Item
Item
Item
Schedule Attributes:
Prior: WIP schedules the job such that last resource on the prior Routing Operation ends at the same time as this
resource.
Next: WIP schedules the job such that first resource on the next operation begins at the same time as this resource.
5)
Operation
Sequence
Department
Lead
Time %
Resource
Usage
(Hrs)
Schedule
Assigned
Units
Offset %
5
10
10
20
MACHINING
ASSEMBLY
ASSEMBLY
FINISHING
0
0
50
R001
R002
R003
R004
12
12
24
36
Next
Yes
Yes
Prior
1
1
1
2
0
0
33.33
50
making changes to "Schedule" attributes as described above reduces the total manufacturing lead time to just 36 hours
instead of 66 hours as in scenario B. This change is due to overlapping first and last operations.
Since there is a overlap from first operation LT for "Operation 10" is set as 0 % which is same as OT for R002
resource assigned to this operation
33.33%
Total hours consumed in until the start of "Operation 20" = (18/36)*100 => 50% , hence LT for "Operation 20" is
set as 50% which is same as OT for R004 resource assigned to this operation
above.
Please note that making changes to "Schedule" attribute as "Next" and "Prior" resulted in further reduction in
manufacturing lead time as it lead to overlapping first and last operation. Creating new Job for Scenario D resulted in
overloading at different points. Please note that for demonstration purpose I am creating a new job for each scenario
keeping the dates same which is leading to increasing in Resource loadings.
Manufacturing Lead Time Computation

Following Item level Lead Time attributes are updated by "Compute Lead Time" program which are referred by Oracle
MRP/ASCP for computing material requirement dates and generating planned orders (Navigation: Inventory
Organization Items Lead Times)
Routing Data:
Operation
Sequence
5
10
10
20
Department
Resource
Usage (Hrs)
Scheduling flag
Assigned Units
Basis
MACHINING
ASSEMBLY
ASSEMBLY
FINISHING
R001
R002
R003
R004
12
12
24
36
Yes
Yes
Yes
Yes
1
1
1
1
Item
Item
Item
Item
Lead Time Computation:

Lead Time Attribute
Total resource Usage (U)
Fixed (F)
Variable (V)
Processing (P)
Lead time Lot size (LS)
Average Shift Time (T)
Lead Time
84
0
3.5
4
1
24
Fixed Lead Time (F) is sum total of resource usage amounts with basis type as "Lot". Lot basis type means that resource
usage will not depend upon the job quantity and would remain fixed. This basis type is generally used in scenarios where
"setup" time is significant.
Variable Lead time (V) depends on the quantity of the job. It is specified as resource usage per assembly. In Our
example, V = 84/24 = 3.5 Days (all resources have 24 hours availability)
Processing Lead Time (P) = F + V*LS = 0 + 3.5*1 = 3.5 ~ 4 days (captured in integer days, for Lead Time Lot Size (LS) of
1)
Processing Lead Time for make items is considered as manufacturing lead time. Pre-processing lead time is also
considered by MRP/ASCP for generating planned order recommendations.
Lead Time Computation Logic
Oracle Master Scheduling / MRP use Dynamic Lead Time Offsetting as lead time computation logic which plans at Day
level rather than up-to-minute detailed planning. It refers the item level lead time attributes as well as Lead Time and
Offset % at Routing level and generates the plan as quick as possible with minimum load on resource intensive planning
engine.
Dynamic lead time offsetting offsets dates in two steps, computing total lead time and offsetting the date by total lead
time. Total lead time contains both fixed lead time and the quantity-dependent portion of lead time. Preprocessing lead
time is also included for discrete items.
Total Lead Time = preprocessing lead time + fixed lead time + (order quantity x variable lead time)
Material Requirement dates: Master Scheduling/MRP computes component requirement dates for planned orders using
the offset percentage for the operation where each component is used. Master Scheduling/MRP multiplies the operation
offset percentage times the planned order lead time to get offset days, and then finds the workday that is the number of
days past the planned order start date.
Since Oracle WIP uses detailed up-to-minute Job scheduling based on Routing details (as defined above) and does not
refer Item Lead time attributes, results from MRP/Unconstrained ASCP may differ from WIP level detailed Job scheduling.
Note: Oracle ASCP supports both day level as well as up-to-minute scheduling as per the chosen scheduling option (I'll
cover this in my second post which will cover the scheduling cycle through ASCP).
References: Oracle User Guides, Oracle EBS R12.1.3 Vision Instance
Hope you found this Post interesting. Your valued comments and feedback are most welcome.
Best Regards
Manu Singhal
The Oracle Manufacturing Blog
Email: msinghal.iitk@gmail.com

Approach To Production Scheduling Wave 13

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Approach To Production Scheduling Wave 13

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Pragmatic Approach to Production Scheduling

Scenario A: Sequential Operations with single Assigned Units

Scenario B: Sequential Operations with Multiple Assigned Units

Scenario C: Parallel Resource Operations

Scenario D: Overlapping Operations with Schedule attribute as "Prior" / "Next" options

Manufacturing Lead Time Computation

Lead Time Computation:

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