INVENTORY

MANAGEMEN
T AND
CONTROL
OMGT 102
MA. CRISTINA C. DANAC-DELFIN, MD,
MBA, DPBA, FPSA
1st Sem. SY 2016-2017

CSJ-R
Lecture 14/ Sept. 13, 2016

CHAPTER

15

SCHEDULING FOR
THE SHORT TERM
McGraw-Hill/Irwin

Operations Management, Eighth Edition, by William J. Stevenson

Copyright 2005 by The McGraw-Hill Companies, Inc. All rights

Outline

The Importance of Short-Term

Scheduling
Scheduling Issues
Scheduling Process-Focused
Facilities
Loading Jobs
Scheduling Jobs
Finite Capacity Scheduling (FCS)
Scheduling Services

Short-Term Scheduling
OBJECTIVE:
-to allocate and prioritize
demand (generated by either
forecasts or customer orders)
to available facilities

Importance of Short-Term
Scheduling

Effective and efficient scheduling can be a competitive

advantage and strategic importance:

Faster movement of goods and services
greater use of assets
greater capacity per
dollar invested
lowers costs
Added
Faster throughput and related flexibility
capacity
faster delivery
improves
customer service
realistic commitments
Good schedules
more dependable deliveries

Scheduling Issues
Scheduling deals with the timing of operations
Scheduling decisions range from years, for
capacity planning, to minutes / hours / days,
called Short-term scheduling

Sequence of decisions affects scheduling

Example of types of scheduling decisions

made in 5 organizations - hospital, college,

manufacturer, restaurant, and airline

ORGANIZATION

Arnold Palmer Hospital

University of Missouri

Lockheed Martin factory

MANAGERS SCHEDULE THE

FOLLOWING:
Operating room use
Patient admissions
Nursing, security, maintenance
staffs
Outpatient treatment
Classrooms and audiovisual
equipment
Student and instructor schedules
Graduate and undergraduate
courses
Production of goods
Purchases of materials
Workers

Hard Rock Caf

Chef, waiters, bartenders

Delivery of fresh foods
Entertainers
Opening of dining areas

Delta Air Lines

Maintenance of aircraft
Departure timetables
Flight crews, catering, gate, and
ticketing personnel

Scheduling Issues
Schedule decisions begin with Capacity Planning
which involves total facility and equipment resources available

Capacity plans usually

annual or quarterly as new equipment and

facilities are purchased or discarded.

Aggregate

planning makes decisions regarding the

use of facilities, inventory, people and outside contractors;

typically

monthly and resources are allocated in

terms of an aggregate measure such as total units,
tons, or shop hours.

Scheduling Issues
Master schedule breaks down the aggregate plan and develops a
schedule for specific products or product lines for
each week.

Short-termschedules then

translate capacity decisions,

aggregate (intermediate) planning and master
schedules into job sequences and specific
assignments of personnel, materials and
machinery.

Scheduli
ng Flow
Figure 15.1

Scheduling Issues
The

task is the allocation and prioritization of

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

Significant factors are

1. Type of scheduling

- Forward or backward

scheduling
2. Criteria for priorities
a. Finite or infinite loading
b. The criteria for sequencing jobs

Forward and Backward Scheduling

Forward scheduling starts as soon as the requirements are
known

Used in a variety of organizations:

hospitals,

clinic, fine-dining restaurants, and machine tool

manufacturers - jobs performed to customer order and
delivery is often requested as soon as possible.

Usually

designed to produce a schedule that can be

accomplished even if it means not meeting the due date.

Causes a build up of work-in-process inventory.

Now

Due
Date

Forward and Backward Scheduling

schedules the
Backward scheduling begins with the due date and
e

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twemanufacturing
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final operation first.

Schedule is produced by working backwards though the processes

quality
shortages, others
Resources mayMachine
not bebreakdowns,
available absenteeism,
to accomplish
theproblems,
schedule
COMPLICATIONS:

Now

Due
Date

Scheduling Criteria
Correct scheduling technique depends on the volume of orders, the
nature of operations and the overall complexity of jobs, as well as the
importance placed on each of four criteria:

1.

Minimize completion time: evaluated by determining the average

completion time per job.

2.

Maximize utilization of facilities - evaluated by determining the

percent of the time the facility is utilized.

3.

Minimize work-in-process (WIP) inventory: - evaluated by

determining the average number of jobs in the system; the
relationship between the number of jobs in the system and the WIP
inventory will be high. Therefore, the fewer the number of jobs that
are in the system, the lower the inventory.

4.

Minimize customer waiting time:

average number of late days.

evaluated by determining the

Scheduling Process-Focused Facilities

PROCESS-FOCUSED FACILITIES - intermittent or job-shop

facilities

High-variety,

low volume systems commonly found in

manufacturing and service organizations (made-to-order)

Production

differ considerably in terms of materials used,

order of processing, processing requirements, time of
processing and setup requirements.

Schedule

incoming orders without violating capacity

constraints

Scheduling can be complex

Scheduling Process-Focused Facilities

For a balanced and efficient operations:

System should:
Schedule

incoming orders without violating capacity constraints of

individual work centers.
Check the availability of tools and materials before releasing an order
to a department.
Establish due dates for each job and check progress against need
dates and order lead times.
Check work in progress as jobs move through the shop.
Provide feedback on plant and production activities.
Provide work efficiency statistics and monitor operator times for
payroll and labor distribution analyses.

TABLE 15.2: DIFFERENT PROCESSES SUGGEST

DIFFERENT APPROACHES TO SCHEDULING
(2014)
Process-focused facilities (job shops)
Scheduling to customer orders where changes in both volume
and variety of jobs/clients/ patients are frequent
Schedules are often due-date focused, with loading refined by
finite loading techniques.
Examples: foundries, machine shops, cabinet shops, print
shops, many restaurants and the fashion industry

Work cells (focused facilities

families of similar components)

that

process

Focus is on generating a forward-looking schedule

MRP generates due dates, and subsequent detail scheduling /
dispatching is done at the work cell with kanbans and priority
rules.
Examples: work cells at ambulance manufacturer Wheeled
Coach, aircraft engine rebuilder Standard Aero, greeting-card
maker Hallmark

TABLE 15.2: DIFFERENT PROCESSES SUGGEST

DIFFERENT APPROACHES TO SCHEDULING

Repetitive facilities (assembly

line)
Schedule module production and product
assembly based on frequent forecasts.
Finite loading with a focus on generating a
forward-looking schedule.
JIT techniques are used to schedule
components that feed the assembly line.
Examples:
assembly lines for washing
machines at Whirlpool and automobiles at
Ford.

TABLE 15.2: DIFFERENT PROCESSES SUGGEST

DIFFERENT APPROACHES TO SCHEDULING

Product-focused facilities (continuous)

Schedule high volume finished products of limited
variety to meet a reasonably stable demand within
existing fixed capacity.
Finite loading with a focus on generating a forwardlooking schedule that can meet known setup and
run times for the limited range of products.
Examples:
facilities with very high volume
production and limited-variety products such as
huge paper machines at International Paper, beer in
a brewery at Anheuser-Busch, and potato chips at
Frito-Lay.

3 TYPES OF PLANNING FILES

1.

An ITEM MASTER FILE, which contains

information about each component the firm produces
or purchases.

2.

A ROUTING FILE, which indicates each

components flow through the shop.

3.

A WORK-CENTER MASTER FILE, which contains

information about the work center such as capacity and
efficiency.

CONTROL FILES - track the actual progress made

against the plan for each work order.

Focus for Different

Process Strategies
Process-focused
(job shops)

Repetitive facilities
(assemble lines)

Product-focused
(continuous)

Number of
inputs
Schedule orders

Typical focus of the

master production
schedule

Schedule modules

Number of
end items

Schedule finished
product
Examples:

Print shop
Machine shop
Fine-dining restaurant

Motorcycles
Autos, TVs
Fast-food restaurant

Steel, Beer, Bread

Lightbulbs
Paper

Loading Jobs

Assign jobs so that costs, idle time, or

completion time are minimized

Two forms of loading

1. Capacity oriented- Finite Loading
Assigns work up to the capacity of the work
station
All work gets done
Due dates may be pushed out

Loading Jobs

2. Assigning specific jobs to work

centers - Infinite loading
does not consider capacity;
All due dates are met
Capacities may have to be
adjusted

Input-Output Control

Technique for LOADING from the perspective of capacity

System that allows operations personnel to manage facility
work flows by tracking work added to a work center and its
work completed.

Identifies overloading and underloading conditions

Prompts managerial action to resolve scheduling problems
Can be maintained using ConWIP cards that control the
scheduling of batches

Input-Output Control

ConWIP cards - constant work-in-process

Travels with a job (or batch) through the work center
When the job is finished, the card is released and returned to
the initial workstation, authorizing the entry of a new batch int
o the work center

Effectively

limits the amount of work in the work center,

controls lead time, and monitors the backlog

INPUT-OUTPUT CONTROL EXAMPLE:

DNC
MACHINING
INC.,
manufactures
driveway security fences and gates. It wants
to develop an input-output control report for
the aluminum machining work center for 5
weeks (weeks 6/6 through 7/4). The planned
input is 280 standard hours per week. The
actual input is close to this figure, varying
between 250 and 285. Output is scheduled at
320 standard hours, which is the assumed
capacity. A backlog exists in the work center.

Input-Output Control Example

DNC uses schedule information to create the Figure below
which monitors the workload capacity relationship at the
work15.2
center.
Figure
Work Center DNC Milling (in standard hours)
Week Ending

6/6

6/13

6/20

6/27

7/4

Planned Input

280

280

280

280

280

Actual Input

270

250

280

285

280

Cumulative Deviation

10

40

40

35

Planned Output

320

320

320

320

Actual Output

270

270

270

270

Cumulative Deviation

50

100

150

200

20

10

+5

Cumulative Change in
Backlog

7/11

The deviations between scheduled input and actual output are shown. Actual output (270 hours)
is substantially less than planned. Therefore, neither the input plan nor the output plan is being
achieved.

Input-Output Control Example

The backlog of work in this work center has actually increased by 5 hours by week 6/27. This
increases
inventory, complicating the scheduling task and indicating the
Figurework-in-process
15.2
need for manager action.
Work Center DNC Milling (in standard hours)
Week Ending

6/6

6/13

6/20

6/27

7/4

Planned Input

280

280

280

280

280

Actual Input

270

250

280

285

280

10

40

40

35

320

320

320

320

Actual Output

270

270

270

270

Cumulative Deviation

50

100

150

200

20

10

+5

Explanation:
270 input,
Cumulative Deviation
270 output
implies
Planned Output
0 change

Cumulative Change in
Backlog

7/11

Explanation:
250 input,
270 output implies
20 change

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
by:
a. Routing work to or from other work centers
b. Increasing or decreasing subcontracting
c. Producing less (or producing more)

Input-Output Control Example

ADVANTAGES OF PRODUCING LESS:
1. Customer service levels may improve because
units may be produced on time.
2. Efficiency may actually improve because there
is less work in process cluttering the work
center and adding to overhead.
3. Quality may improve because less work-inprocess hides fewer problems.

Gantt Charts
Planning charts used to schedule resources and allocate time.
Visual aids that are useful in loading and scheduling.
From Henry Gantt (1800s)
Charts show the use of resources, such as work centers and labor.
When used in loading: Gantt 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 to account for changes

GANTT CHART EXAMPLE:

A
New
Orleans
washing
machine
manufacturer accepts special orders for
machines to be used in such unique facilities
as submarines, hospitals and large industrial
laundries.
The production of each machine requires
varying tasks and duration. The company
wants to build a load chart for the week of
March 8.

The four work centers process several jobs during the week. This
particular chart indicates that the metalworks and painting
centers are completely loaded for the entire week.

Gantt
Loadand
Chart
Example
The
mechanical
electronic
centers have some idle time
Figure
15.3 during the week.
scattered
Day

Work
Center

Metalworks

Monday

Tuesday

Job 349

Painting

Processing

Thursday

Friday

Job 350
Job 349

Mechanical
Electronics

Wednesday

Job 408

Job 408
Job 349

Job 295

Unscheduled

Job 408

Job 349

Center not available

We also note that the metalworks center is unavailable on

Tuesday and the painting center is unavailable on Thursday,
perhaps for preventive maintenance.

Gantt Schedule Chart Example

FIRST PRINTING in Winter Park, Florida, wants to use a Gantt
chart to show the scheduling of three orders jobs A, B, and C.

Each pair of brackets on the time axis denotes the estimated starting and finishing of a job
Figure 15.4
enclosed
within it. The solid bars reflect the actual status or progress of the job. It is just
finishing by day 5.
Job

Day
1

Day
2

Day
3

Day
4

Day
5

Day
6

Day
7

Day
8

Start of an
activity
End of an
activity

Scheduled
activity time
allowed
Maintenance

Actual work
progress
Nonproduction
time
Point in time
when chart is
reviewed

Now
Job A is about a half-day behind schedule
at the end of day 5. Job B was
completed after equipment maintenance. Job C is ahead of schedule.

Assignment Method
A

special class of linear programming models that

involves assigning tasks or jobs to resources

Examples include assigning jobs to machines, contracts

to bidders, people to projects, and salespeople to
territories.

Objective is to minimize cost or time required to perform

the tasks at hand.

Only one job (or worker) is assigned to one machine (or

project)

Assignment Method
Build

a table of costs or time associated with

particular assignments

TYPESETTER
JOB

R-34

$11

$14

$ 6

S-66

$ 8

$10

$11

T-50

$ 9

$12

$ 7

Assignment Method
Subtract

the smallest number in each

ROW from every number in the ROW

TYPESETTER
JOB

R-34

$5

$8

$0

S-66

$0

$2

$3

T-50

$2

$5

$0

Assignment Method
Subtract

the smallest number in each

column from every number in the column.

TYPESETTER
JOB

R-34

$5

$6

$0

S-66

$0

$0

$3

T-50

$2

$3

$0

Assignment Method
Draw

the minimum number of vertical and horizontal straight lines

needed to cover all zeros. Because two lines suffice, the solution is
not optional.

TYPESETTER
JOB

R-34

$5

$6

$0

S-66

$0

$0

$3

$2

Smallest
uncovered
number

$0

T-50

$3

Subtract

the smallest uncovered

number (2 in this table) from
every other uncovered number
and add it to numbers at the
intersection of two lines.

TYPESETTER
JOB

R-34

$3

$4

$0

S-66

$0

$0

$5

T-50

$0

$1

$0

Assignment Method
Cover the zeros with straight lines again.
TYPESETTER
JOB

R-34

$3

$4

$0

S-66

$0

$0

$5

T-50

$0

$1

$0

Assignment Method
Because 3 lines are necessary, an optional assignment can
be made. Assign R-34 to person C, S-66 to person B and T50 to person A.

TYPESETTER

JOB

R-34

$3

$4

$0

S-66

$0

$0

$5

T-50

$0

$1

$0

Assignment Method
If

the Job R-34 would cost $10 if given to

Typesetter C, what will be the outcome?

TYPESETTER
JOB

R-34

$11

$14

$10

S-66

$8

$10

$11

T-50

$9

$12

$7

Assignment Method
Subtract the smallest number in each
row from every number in the row.

TYPESETTER
JOB

R-34

$1

$4

$0

S-66

$0

$2

$3

T-50

$2

$5

$0

Assignment Method
Subtract

the smallest number in each

column from every number in the column.

TYPESETTER
JOB

R-34

$1

$2

$0

S-66

$0

$0

$3

T-50

$2

$3

$0

Assignment Method
Draw

the minimum number of vertical and

horizontal straight lines needed to cover all
zeros.

TYPESETTER
JOB

C
Smallest
uncovered
number

R-34

$1

$2

$0

S-66

$0

$0

$3

T-50

$2

$3

$0

Assignment Method
Subtract

the smallest uncovered

number (2 in this table) from every
other uncovered number and add it to
numbers at the intersection of two
lines.

TYPESETTER
JOB

R-34

$1

$0

$0

S-66

$0

$0

$3

T-50

$2

$1

$0

Assignment Method
Cover the zeros with straight lines again.
TYPESETTER
JOB

R-34

$1

$0

$0

S-66

$0

$0

$3

T-50

$2

$1

$0

Assignment Method
Because 3 lines are necessary, an optional assignment can
be made. Assign R-34 to person A, S-66 to person B and T50 to person C.

TYPESETTER

JOB

R-34

$0

$0

$0

S-66

$0

$0

$0

T-50

$1

$1

$0

MINIMUM COST = $11 + $10 + $7 = $28

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
(Jobs are completed in the order they arrived.)

SPT: Shortest processing time

(Jobs with the shortest processing times are assigned first.)

EDD:

Earliest due date

(Earliest due date jobs are performed first.)

LPT:

Longest processing time

(Jobs with the longest processing time are completed first.)

Sequencing Jobs
Five

architectural rendering jobs are

waiting to be assigned at Avanti Sethi
Architects. Their work (processing) times
and due dates are given in the following
table. The firm wants to determine the
sequence of processing according to (1)
FCCFS, (2) SPT, (3) EDD, and (4) LPT
rules. Jobs were assigned a letter in the
order they arrived.

Sequencing Example
Apply the four popular sequencing rules to
these five jobs

Job
A

Job Work (Processing) Time

(Days)
6

Job Due Date

(Days)
8

18

15

23

The FCFS sequence is simply A-B-C-D-E. The flow time in

the
system for this
sequence measures the time each job
Sequencing
Example
spends waiting plus time being processed. Example: Job B
waits 6 days while Job A is being processed, then takes 2
more
days
of operationA-B-C-D-E
time itself; so it will be completed
FCFS:
Sequence
in 8 days - which is 2 days later than its due date.
Job
Sequence

Job Work
(Processing)
Time

Flow
Time

16

18

19

15

28

23

28

77

Job Due
Date

Job
Lateness

11

Sequencing Example
FCFS: Sequence A-B-C-D-E
The FCFS rule results in the following measures of effectiveness:
Average completion time =

Sum of total flow time

Number of jobs

Total job work time

Utilization metric = Sum of total flow time

= 77/5 = 15.4 days

= 28/77 = 36.4%

Average number of = Sum of total flow time = 77/28 = 2.75 jobs

Total job work time
jobs in the system
Total late days
Average job lateness = Number of jobs

= 11/5 = 2.2 days

The SPT rule shown in the table results in the sequence B-DA-C-E. Orders are sequenced according to processing time,
with the highest priority given to the shortest job.

SPT: Sequence B-D-A-C-E

Job
Sequence

Job Work
(Processing)
Time

Flow
Time

Job Due
Date

Job
Lateness

15

11

19

18

28

23

28

65

Sequencing Example
SPT: Sequence B-D-A-C-E
Average completion time =

Sum of total flow time

Number of jobs

Total job work time

Utilization metric = Sum of total flow time

Average number of
jobs in the system

Sum of total flow time

= Total job work time

Total late days

Average job lateness = Number of jobs

= 65/5 = 13 days

= 28/65 = 43.1%
= 65/28 = 2.32 jobs
= 9/5 = 1.8 days

The EDD rule shown in the table gives the

sequence B-A-D-C-E.
Note that jobs are
ordered by earliest due date first.
EDD: Sequence B-A-D-C-E
Job
Sequence

Job Work
(Processing)
Time

Flow
Time

Job Due
Date

Job
Lateness

11

15

19

18

28

23

28

68

Sequencing Example
EDD: Sequence B-A-D-C-E
Average completion time =

Sum of total flow time

Number of jobs

Total job work time

Utilization metric = Sum of total flow time

Average number of
jobs in the system

Sum of total flow time

= Total job work time

Total late days

Average job lateness = Number of jobs

= 68/5 = 13.6 days

= 28/68 = 41.2%
= 68/28 = 2.43 jobs
= 6/5 = 1.2 days

Sequencing Example
LPT: Sequence E-C-A-D-B
Job
Sequence

Job Work
(Processing)
Time

Flow
Time

Job Due
Date

Job
Lateness

23

17

18

23

15

26

15

11

28

22

28

103

48

Sequencing Example
LPT: Sequence E-C-A-D-B
Average completion time =

Sum of total flow time

Number of jobs

Total job work time

Utilization metric = Sum of total flow time

Average number of
jobs in the system

Sum of total flow time

= Total job work time

Total late days

Average job lateness = Number of jobs

= 103/5 = 20.6 days

= 28/103 = 27.2%
= 103/28 = 3.68 jobs

= 48/5 = 9.6 days

LPT is the least effective measurement for sequencing for

Sequencing
the
Avanti Sethi Example
firm. SPT is superior in 3 measures and
EDD is superior in the 4th (average lateness.)

Summary of Rules

Rule

Average
Completion
Time (Days)

Utilization
Metric (%)

Average
Number of
Jobs in
System

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

Average
Lateness
(Days)

Comparison of Sequencing Rules

No one sequencing rule excels on all criteria

1.

SPT does well on minimizing flow time and number of

jobs in the system

2.

3.

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 maximum
lateness

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

CR =

Time remaining
Workdays remaining =

Due date Todays date

Work (lead) time remaining

TODAY is day 25 on ZYCO MEDICAL

LABORATORIES PRODUCTION SCHEDULE.
JOBS ARE ON ORDERS, AS INDICATED HERE:

Critical Ratio Example

TESTING
THREE

Currently Day 25
JOB

DUE DATE

WORKDAYS REMAINING

30

28

C
27
2
ZYCO wants to compute the critical ratios, using the
formula
JOB for CR.CRITICAL RATIO
PRIORITY ORDER
A

(30 - 25)/4 = 1.25

(28 - 25)/5 = .60

(27 - 25)/2 = 1.00

Job B has a CR of <1, meaning it will be late unless expedited. Thus, it

has the highest priority. Job C is on time and Job A has some slack. Once
job B has been completed, compute CR for jobs A and C to determine
whether their priorities have changed.

Critical Ratio Technique

1. Helps

determine the status of specific

jobs

2. Establishes

relative priorities among

jobs on a common basis

3. Adjusts

priorities automatically for

changes in both demand and job
progress

4. Dynamically tracks job progress

Sequencing N Jobs on Two

Machines: Johnsons Rule

N/2 PROBLEM:
N jobs (where N is 2 or more) must go through
2 different machines or work centers in the
same order

JOHNSONS RULE:
an approach that minimizes

processing time for

sequencing a group of jobs through 2 work centers
while minimizing total idle time in the work centers.

Sequencing N Jobs on Two

Machines: Johnsons Rule

Minimize

the processing time for

sequencing a group of jobs through 2
work centers.

Minimizes total idle time on the machines

Johnsons Rule: 4 STEPS

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. Ties in activity times can be broken
arbitrarily.

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

Johnsons Rule Example:

Example
Five specialty jobs at a La Crosse, Wisconsin, tool and die
shop must be processed through two work centers (drill
press and lathe.) The time for processing each job follows:
JOB

WORK CENTER 1
(DRILL PRESS)

WORK CENTER 2
(LATHE)

10

12

The owner, Niranjan Pati, wants to set the sequence to

minimize his total processing time for the five jobs. He
applies the 4 steps of Johnsons rule.

Johnsons Rule Example:

Example
Five specialty jobs at a La Crosse, Wisconsin, tool and die
shop must be processed through two work centers (drill
press and lathe.) The time for processing each job follows:
JOB

WORK
CENTER 1
(DRILL
PRESS)

WORK
CENTER 2
(LATHE)

10

12

The owner, Niranjan Pati, wants to set the sequence to

minimize his total processing time for the five jobs. He
applies the 4 steps of Johnsons rule.

STEP 1: The job with the shortest processing time

is A, in work center 2 ( with a time of 2 hours).
Because it is at the second center, schedule A last.
Eliminate it from consideration.
A

STEP 2: Job B has the next shortest time (3 hours).

Because that time is at the first work center, we
schedule it first and eliminate it from consideration
B

STEP 3: The next shortest time is job C (4 hours) on

the second machine. Therefore, it is placed as late
as possible.
B

STEP 4: There is a tie (at 7 hours) for the shortest

remaining job. We can place E, which was on the
first work center, first. Then D is placed in the last
sequencing position.
B

The sequential times are:

B

Work
center 1

10

Work
center 2

12

Time-phased flow: 5 jobs are

completed in 35 hours
WORK CENTER
1 (DRILL
PRESS)

JOB

WORK CENTER
2 (LATHE)

C second8work center will wait

4 3 hours for its first job, and it will
The
also
hour after completing
D wait 1 10
7 job B.
E

Time

73

WC
1

12

20

28

33

A
Idle

WC
2
Time 0
35

10

B
1

E
7

9 10 11 12 13

D
17 19 21 22 2325

C
27

29

31

A
33

C A

Job
completed

Limitations of Rule-Based
Dispatching Systems

1. Scheduling is dynamic and rules need to be

revised to adjust to changes
-in orders, process, equipment, product mix, and so
forth.
2. Rules do not look upstream or downstream
- Idle sources and bottleneck resources in other
departments may not be recognized.
3. Rules do not look beyond due dates
-2 orders may have the same due date
(distributor/custom order which is more important)

Finite Capacity Scheduling

FCS
-

computerized short-term scheduling that overcomes the

disadvantage of rule-based systems by providing the user with
graphical interactive computing

Allow virtually instantaneous change by the operator

May include rules and expert systems or simulation

to allow real-

time response to system changes

FCS allows the balancing of delivery needs and efficiency

Has the flexibility to handle any situation, including order,
machine changes

labor or

Finite Capacity Scheduling Systems combine MRP and Shop Floor

Production Data to Generate a Gantt chart that can be Manipulated by
the User on a Computer Screen
Planning Data
Master
schedule
BOM
Inventory
Priority
rules
Expert
systems
Simulation
models

Interactive Finite Capacity Scheduling

Routing files
Work center
information
Tooling and
other
resources
Setups and
run time

Figure 15.5

This Lekin finite capacity scheduling software presents a schedule

of the 5 jobs and the 2 work centers in Gantt chart form. Software
Finite Capacity Scheduling
free at www.stern.nyc.edu/om/software/lekin/download/html.

Figure 15.6

SCHEDULING REPETITIVE FACILITIES

Repetitive producers create forwardlooking schedules with level material use.

LEVEL MATERIAL USE :
-the use of frequent, high-quality, small lot sizes that
contribute to JIT production
- Harley-Davidson, John Deere, and Johnson Controls

SCHEDULING REPETITIVE FACILITIES

ADVANTAGES OF LEVEL MATERIAL USE :
-1. Lower inventory levels, which releases capital for other uses.
2. Faster product throughout (that is, shorter lead times).
3.

Improved component quality and hence improved product quality.

4. Reduced floor-space requirements.

5. Improved communication among employees because they are
closer together (which can result in improved teamwork and esprit
de corps)
6. Smoother production process because large lots have not hidden
the problems.

Scheduling Services
Service systems differ from manufacturing: more complex
MANUFACTURING

SERVICES

Schedules machines
and materials

Schedule staff

Inventories used to
smooth demand

Seldom maintain inventories

Machine-intensive and
demand may be smooth

Labor-intensive and demand

may be variable

Scheduling may be bound by

union contracts

Legal issues may constrain

flexible scheduling

Few social or behavioral

issues

Social and behavioral issues

may be quite important

Scheduling Services
Hospitals

have complex scheduling system to handle

complex processes and material requirements; seldom use
FCFS for treating ER patients; but can in scheduling elective
surgeries

Banks

use a cross-trained and flexible workforce and parttime workers; provide variable capacity

Retail stores use scheduling optimization systems that track

sales, transactions, and customer traffic to create work
schedules in less time and with improved customer satisfaction

Scheduling Services

Airlines

must meet complex FAA and union

regulations and often use linear programming to
develop optimal schedules

24/7

operations like police/fire departments,

emergency hot lines, and mail order businesses
use flexible workers and variable schedules,
often created using computerized systems

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

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

CYCLICAL SCHEDULING: EXAMPLE

Hospital administrator Doris Laughlin wants to
staff the oncology ward using a standard 5-day
work-week with 2 consecutive days off, but also
wants to minimize the staff. However, as in most
hospitals, she faces an inconsistent demand.
Weekends have low usage. Doctors tend to work
early in the week and patients peak on
Wednesday then taper off.
Doris must first establish staffing requirements.
Then the following 5-step process is applied.

Staffing requirements:
DAY

Staff required

Identify the 2 consecutive days that have the lowest total

requirement and circle these.
DAY

Staff required

DAY

Staff required

Employee 1

Assign these two days off to the first employee In this case, the
first employee has Saturday and Sunday off because 3 plus 3 is
the lowest sum of any 2 days. In the case of a tie, choose the
days with the lowest adjacent requirement or by first assigning
Saturday and Sunday as an off day. If there are more than one,
make an arbitrary decision.

Capacity
(Employees)

Cyclical Scheduling Example

DAY

Staff required

Employee 1

Employee 2

Capacity
(Employees)

Cyclical Scheduling Example

DAY

Staff required

Employee 1

Employee 2

Employee 3

Capacity
(Employees)
Excess Capacity

Cyclical Scheduling Example

DAY

Staff required

Employee 1

Employee 2

Employee 3

Employee 4

Capacity
(Employees)
Excess Capacity

Cyclical Scheduling Example

DAY

Staff required

Employee 1

Employee 2

Employee 3

Employee 4

Employee 5

Capacity
(Employees)
Excess Capacity

Cyclical Scheduling Example

DAY

Staff required

Employee 1

Employee 2

Employee 3

Employee 4

Employee 5

Employee 6

Capacity
(Employees)
Excess Capacity

Doris needs six full- time employees to meet the staffing

needs and one employee to work Saturday. Notice that
capacity (number of employees) equals requirements,
provided an employee works OT on Saturday, or a parttime employee is hired for Saturday.
DAY
T scheduling
W
T system
F
Doris has implemented
anMefficient
that accommodates
Staff required 2 consecutive
5
5 days
6 off 5for every
4
employee.
M
T
W
T
F

Cyclical Scheduling Example

Employee 1

Employee 2

Employee 3

Employee 4

Employee 5

Employee 6

Employee 7

Capacity
(Employees)

Excess Capacity

Colorado General Hospital saved an average of 10 -15 hours a

month and found these added advantages:
1. No computer was needed.
2. The nurses were happy with the schedule.
3. The cycles could be changed seasonally to accommodate
avid skiers.
4. Recruiting was easier because of predictability and flexibility.

NO CLASS ON SEPTEMBER 8.
ASSIGNMENT FOR SEPTEMBER 13:
IN A SHORT COUPON BOND, PLEASE PRINT LEGIBLY YOUR ANSWERS.
DONT FORGET TO WRITE YOUR NAME AND DATE OF SUBMISSION.
A.
1. READ ON THE FOLLOWING:
a. Mayo Clinic
b. Southwest Airlines
c. Hard Rock Caf
2. Then answer the following questions (for each company):
a. How does the company create its schedules to effectively serve
its customers promptly and efficiently at the same time be
affordable?
b. Do you think that what the company has implemented is
enough or appropriate or do you recommend other schedules to
better improve their services?
c. Is the companys Capacity Planning (Long term), Aggregate
Planning (intermediate term), Master Schedule (Weekly) and Short Term (days, hours, minutes) able to help the managers allocate
and
prioritize demand of the companys services?

NO CLASS ON SEPTEMBER 8.
ASSIGNMENT FOR SEPTEMBER 13
PREFINALS - SEPTEMBER 15
IN A SHORT COUPON BOND, PLEASE PRINT LEGIBLY YOUR ANSWERS.
DONT FORGET TO WRITE YOUR NAME AND DATE OF SUBMISSION.
B
1.
2.
3.
4.
5.

What is JIT?
What is a lean producer?
What is TPS?
What is level scheduling?
How does the following companies make use of the JIT and Lean
Operations?
a. Toyota Motor Corporation
b. Krupp Refrigeration, Inc.
c. Arnold Palmer Hospital, Orlando