Professional Documents
Culture Documents
2
Inventory
Maintenance/
Work-in- Repair/
Finished
Raw material progress Operating
good
(WIP) (MRO)
supply
5
Inventory Management
ABC Analysis
classifies items according to its
importance
Record Accuracy
able to make precise decision about
ordering, scheduling and shipping
Class C
100 — Class B
90 —
Class A
Percentage of dollar value
80 —
70 —
60 —
50 —
40 —
30 —
20 —
10 —
0—
10 20 30 40 50 60 70 80 90 100
Percentage of items
ABC analysis - steps
1. Classify the items of inventories, determining the
expected use in units and the price per unit for each
item.
12
Holding Cost
cost associated with maintaining the inventory warehouse and
protecting
Setup Cost
arranging specific equipment setups, filling out the required papers
and moving out the previous stock of material
Ordering Cost
clerical cost to prepare the purchase and production order such as
counting items and calculating order quantities
Shortage Cost
Associated with demand when stocks have been depleted. When
sales are lost because of stock-outs, the firm loses both profit margin
on unmade sales and its customers’ good will. Some will even suffer
with lateness penalties.
Inventory models
Fixed-time Period/
Fix-order Quantity/
Fixed Order Quantity Discount
EOQ model
Interval System
14
Notations
The following are the notation that will be
used in developing the inventory models.
D = Annual demand
Q = Quantity ordered (in units)
S = Annual Setup/Ordering cost per order
H = Annual Holding Cost per unit
C = Total annual Cost
How
Much?
When!
Bird feeder container.
Sales are 18 units/week.
Supplier charges = $60/unit
Order cost = $45
Annual holding cost = 25% of unit value
Museum operates = 52weeks/year
Management decision 390 unit lot size
What is the annual cost?
Would lot size 468 be better?
Assumptions
1. Demand rate is constant
2. No constraints on lot size
3. Only relevant costs are holding and
ordering/setup
4. Decisions for items are independent
from other items
5. No uncertainty in lead time or supply
Receive Inventory depletion
order (demand rate)
On-hand inventory (units)
Q Average
— cycle
2
inventory
1 cycle
Time
Total cost = HC + OC
Annual cost (dollars)
3000 —
Q D
Annual cost (dollars)
D
Ordering cost = (S)
0— Q
| | | | | | | |
50 100 150 200 250 300 350 400
Lot Size (Q)
Example 15.2
3000 —
Q D
Annual cost (dollars)
Q D D
Ordering cost = (S)
0—C = (H) + (S) Q
2 Q
| | | | | | | |
C = $2925 + $108 = $3033
50 100 150 200 250 300 350 400
Lot Size (Q)
Current
cost Example 15.2
3000 —
Q D
Annual cost (dollars)
Q D D
Ordering cost = (S)
0—C = (H) + (S) Q
2 Q
| | | | | | | |
C = $2925 + $108 = $3033
50 100 150 200 250 300 350 400
Current
Lot Size (Q)
Q
Current
cost Example 15.2
3000 —
Q D
Annual cost (dollars)
Q D D
Ordering cost = (S)
0—C = (H) + (S) Q
2 Q
| | | | | | | |
C = $2925 + $108 = $3033
50 100 150 200 250 300 350 400
Current
Lot Size (Q)
Q
Current
cost Example 15.2
3000 —
Q D
Annual cost (dollars)
Q D D
Ordering cost = (S)
0—C = (H) + (S) Q
2 Q
| | | | | | | |
C = $3510 + $90 = $3600
50 100 150 200 250 300 350 400
Current
Lot Size (Q)
Q
D Q
S= H
S 2
2 DS = Q 2 H
2 DS
Q2 =
H
2 DS
Q* =
H
EOQ
D Q
formula: S= H
S 2
2 DS = Q 2 H
2 DS
Q =
2
H
2 DS
Q* =
H
Current
cost Example 15.2
3000 —
Bird feeder costs
Q D
Annual cost (dollars)
D
Ordering cost = (S)
0— Q
| | | | | | | |
50 100 150 200 250 300 350 400
Current
Lot Size (Q)
Q
Current
cost Example 15.2
3000 —
Bird feeder costs
Q D
Annual cost (dollars)
D
Ordering cost = (S)
0— Q
| | | | | | | |
50 100 150 200 250 300 350 400
Current
Lot Size (Q)
Q
Current
cost Example 15.2
3000 —
Bird feeder costs
Q D
Annual cost (dollars)
| | | | | | | |
50 100 150 200 250 300 350 400
Current
Lot Size (Q)
Q
Current
cost Example 15.2
3000 —
Bird feeder costs
Q D
Annual cost (dollars)
3000 —
Bird feeder costs
Q D
Annual cost (dollars)
3000 —
Bird feeder costs
Q D
Annual cost (dollars)
3000 —
Bird feeder costs
Time between orders
Q D
Annual cost (dollars)
Master
Bill of Accurate Purchase Lead Time
Production
Material Inventory Order for each
Schedule
(BOM) Records Standing component
(MPS)
38
Authorized Other
master production sources
schedule of demand
Engineering
Inventory Inventory MRP Bills of
and process
transactions records explosion materials
designs
Material
requirements
plan
Back slats Seat cushion
Back Front
legs legs A
Ladder-back
chair
A
Ladder-back
chair
J (4)
Seat-frame
boards
April May
1 2 3 4 5 6 7 8
Aggregate
production plan 670 670
for chair family
Item: C Lot Size: 230 units
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37
inventory
Planned
receipts
Planned order
releases
Item: C Lot Size: 230 units
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37
inventory
Planned
receipts Explanation:
Gross requirements are the total demand for
Planned order
the two chairs. Projected on-hand inventory
releases
in week 1 is 37 + 230 – 150
Item: C Lot Size: 230 units
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117
inventory
Planned
receipts Explanation:
Gross requirements are the total demand for
Planned order
the two chairs. Projected on-hand inventory
releases
in week 1 is 37 + 230 – 150 = 117 units.
Item: C Lot Size: 230 units
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117
inventory
Planned
receipts
Planned order
releases
Item: C Lot Size: 230 units
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117
inventory
Planned
receipts Scheduled
Projected on-hand Inventory on Gross
or planned
inventory balance
Planned order = hand at end + receipts in – requirements
releases at end of week t of week t - 1
week t
in week t
Item: C Lot Size: 230 units
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117 117 117 –3 –3 –153 –273 –273
inventory
Planned
receipts Scheduled
Projected on-hand Inventory on Gross
or planned
inventory balance
Planned order = hand at end + receipts in – requirements
releases at end of week t of week t - 1
week t
in week t
Explanation:
Item: C
Without a new order in week 4, Lot Size: 230 units
Description: Seat subassembly Lead Time: 2 weeks
there will be a shortage of three
units: 117 + 0 + 0 – 120 = – 3 Week
units.
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117 117 117 –3 –3 –153 – 273 – 273
inventory
Planned
receipts
Planned order
releases
Item: C Lot Size: 230 units
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117 117 117
inventory
Planned
receipts
Planned order
releases
Explanation:
Item: C Lot Size: 230 units
Adding the planned
Description: receipt
Seat subassembly Lead Time: 2 weeks
brings the balance to
Week
117 + 0 + 230 – 120 = 227 units.
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117 117 117 227
inventory
Planned
230
receipts
Planned order
releases
Explanation:
Item: C Lot Size: 230 units
Adding the planned
Description: receipt
Seat subassembly Lead Time: 2 weeks
brings the balance to
Week
117 + 0 + 230 – 120 = 227 units.
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117 117 117 227
inventory
Planned
230
receipts
Planned order
releases
Explanation:
Item: C Lot Size: 230 units
Offsetting for Seat
Description: a two-week lead time
subassembly Lead Time: 2 weeks
puts the corresponding planned
Week
order release back to week 2.
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117 117 117 227
inventory
Planned
230
receipts
Planned order
230
releases
Explanation:
Item: C Lot Size: 230 units
Offsetting for Seat
Description: a two-week lead time
subassembly Lead Time: 2 weeks
puts the corresponding planned
Week
order release back to week 2.
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117 117 117 227
inventory
Planned
230
receipts
Planned order
230
releases
Explanation:
Item: C Lot Size: 230 units
TheDescription:
first planned
Seat order lasts
subassembly Lead Time: 2 weeks
until week 7, when projected
Week
inventory would drop to – 43.
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117 117 117 227 227 77 –43
inventory
Planned
230
receipts
Planned order
230
releases
Explanation:
Item: C Lot Size: 230 units
Adding the second
Description: planned
Seat subassembly Lead Time: 2 weeks
receipt brings the balance to
Week
77 + 0 + 230 – 120 = 187.
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117 117 117 227 227 77
inventory
Planned
230 230
receipts
Planned order
230
releases
Explanation:
Item: C Lot Size: 230 units
Adding the second
Description: planned
Seat subassembly Lead Time: 2 weeks
receipt brings the balance to
Week
77 + 0 + 230 – 120 = 187.
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117 117 117 227 227 77 187
inventory
Planned
230 230
receipts
Planned order
230
releases
Explanation:
Item: C Lot Size: 230 units
TheDescription:
corresponding planned
Seat subassembly Lead Time: 2 weeks
order release is for week 5.
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117 117 117 227 227 77 187
inventory
Planned
230 230
receipts
Planned order
230 230
releases
Item: C Lot Size: 230 units
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117 117 117 227 227 77 187 187
inventory
Planned
230 230
receipts
Planned order
230 230
releases
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117
inventory
Planned
receipts
Planned order
releases
Item: C Lot Size: P = 3
POQ Gross
Description: Seat requirements
subassembly Lead Time: 2 weeks
Inventory at
lot = for weeks – end of week 3
size 4, 5, and 6 Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117
inventory
Planned
receipts
Planned order
releases
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117
inventory
Planned
receipts
Planned order
releases
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0 + 150)
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117
inventory
Planned
receipts
Planned order
releases
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0 + 150) – 117
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117
inventory
Planned
receipts
Planned order
releases
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0 + 150) – 117 = 153 units
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117
inventory
Planned
153
receipts
Planned order
releases
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0 + 150) – 117 = 153 units
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117
inventory
Planned
153
receipts
Planned order
releases
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0 + 150) – 117 = 153 units
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117 150
inventory
Planned
153
receipts
Planned order
releases
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0 + 150) – 117 = 153 units
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117
inventory 117 117 150
Planned
receipts 153
Planned order
releases 153
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
(120 + 0) – 0 = 120 units
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117 150 150 0 0 0
inventory
Planned
153 120
receipts
Planned order
153 120
releases
Item: C Lot Size: P = 3
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117 150 150 0 0 0
inventory
Planned
153 120
receipts
Planned order
153 120
releases
Item: C Lot Size: L4L
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117
inventory
Planned
receipts
Planned order
releases
Item: C Lot Size: L4L
L4L
Description:Gross
Seat subassembly Lead Time: 2 weeks
requirements Inventory balance
lot = in week 4 – at end of week 3
size Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117
inventory
Planned
receipts
Planned order
releases
Item: C Lot Size: L4L
L4L
Description: Seat subassembly Lead Time: 2 weeks
lot = 120 – 117 = 3
size Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117
inventory
Planned
receipts
Planned order
releases
Item: C Lot Size: L4L
L4L
Description: Seat subassembly Lead Time: 2 weeks
lot = 120 – 117 = 3
size Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117
inventory
Planned
3
receipts
Planned order
releases
Item: C Lot Size: L4L
L4L
Description: Seat subassembly Lead Time: 2 weeks
lot = 120 – 117 = 3
size Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117 0
inventory
Planned
3
receipts
Planned order
3
releases
Item: C Lot Size: L4L
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117 0 0 0
inventory
Planned
3
receipts
Planned order
3
releases
Item: C Lot Size: L4L
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117 0 0 0
inventory
Planned
3 150
receipts
Planned order
3 150
releases
Item: C Lot Size: L4L
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117 0 0 0 0
inventory
Planned
3 150 120
receipts
Planned order
3 150 120
releases
Item: C Lot Size: L4L
Description: Seat subassembly Lead Time: 2 weeks
Week
1 2 3 4 5 6 7 8
Gross
requirements 150 120 150 120
Scheduled
receipts 230
Projected
on-hand 37 117 117 117 0 0 0 0 0
inventory
Planned
3 150 120
receipts
Planned order
3 150 120
releases
• The FOQ rule generates high average
inventory because it creates remnants.
H (1) I (1)
Seat Seat
frame cushion
J (4)
Seat-frame
boards
Item: Seat subassembly
Lot size: 230 units
Week
Lead
time: 2 weeks 1 2 3 4 5 6 7 8
Gross
requirements 150 0 0 120 0 150 120 0
Scheduled
receipts 230 0 0 0 0 0 0 0
Projected
on-hand 37 117 117 117 227 227 77 187 187
inventory
Planned
230 230
receipts
Planned order
230 230
releases
Item: Seat subassembly
Lot size: 230 units
Week
Lead
time: 2 weeks 1 2 3 4 5 6 7 8
Gross
150 0 0 120 0 150 120 0
requirements
Planned
230 230
receipts
Planned
order 230 230
releases
Item: Seat subassembly
Lot size: 230 units
Week
Lead
time: 2 weeks 1 2 3 4 5 6 7 8
Gross
150 0 0 120 0 150 120 0
requirements
Planned
230 230
receipts
Planned
order 230 230
releases
Week Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8
Gross Gross
requirements requirements
Scheduled Scheduled
0 300 0 0 0 0 0 0 0 0 0 0 0 0 0 0
receipts receipts
Projected Projected
on-hand 40 on-hand 0
inventory inventory
Planned Planned
receipts receipts
Planned Planned
order order
releases releases
Item: Seat subassembly
Lot size: 230 units
Week
Lead
time: 2 weeks 1 2 3 4 5 6 7 8
Gross
150 0 0 120 0 150 120 0
requirements
Planned
230 230
receipts
Planned
order 230 230
releases
Week Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8
Gross Gross
0 230 0 230
requirements requirements
Scheduled Scheduled
0 300 0 0 0 0 0 0 0 0 0 0 0 0 0 0
receipts receipts
Projected Projected
on-hand 40 on-hand 0
inventory inventory
Planned Planned
receipts receipts
Planned Planned
order order
releases releases
Item: Seat subassembly
Lot size: 230 units
Week
Lead
time: 2 weeks 1 2 3 4 5 6 7 8
Gross
150 0 0 120 0 150 120 0
requirements
Planned
230 230
receipts
Planned
order 230 230
releases
Week Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8
Gross Gross
0 230 0 0 230 0 230 0 0 230
requirements requirements
Scheduled Scheduled
0 300 0 0 0 0 0 0 0 0 0 0 0 0 0 0
receipts receipts
Projected Projected
on-hand 40 on-hand 0
inventory inventory
Planned Planned
receipts receipts
Planned Planned
order order
releases releases
Item: Seat subassembly
Lot size: 230 units
Week
Lead
time: 2 weeks 1 2 3 4 5 6 7 8
Gross
150 0 0 120 0 150 120 0
requirements
Planned
230 230
receipts
Planned
order 230 230
releases
Week Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8
Gross Gross
0 230 0 0 230 0 0 0 0 230 0 0 230 0 0 0
requirements requirements
Scheduled Scheduled
0 300 0 0 0 0 0 0 0 0 0 0 0 0 0 0
receipts receipts
Projected Projected
on-hand 40 40 110 110 110 180 180 180 180 on-hand 0 0 0 0 0 0 0 0 0
inventory inventory
Planned Planned
300 230 230
receipts receipts
Planned Planned
order 300 order 230 230
releases releases
Item: Seat frames Item: Seat cushion
Lot size: 300 units Lot size: L4L
Week Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8
Gross Gross
0 230 0 0 230 0 0 0 0 230 0 0 230 0 0 0
requirements requirements
Planned Planned
300 230 230
receipts receipts
Planned Planned
order 300 order 230 230
releases releases
Item: Seat frames Item: Seat cushion
Lot size: 300 units Lot size: L4L
Week Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8
Gross Gross
0 230 0 0 230 0 0 0 0 230 0 0 230 0 0 0
requirements requirements
Planned Planned
300 230 230
receipts receipts
Planned Planned
order 300 order 230 230
releases releases
Week
Lead
time: 1 week 1 2 3 4 5 6 7 8
Gross
requirements
Scheduled
0 0 0 0 0 0 0 0
receipts
Projected
on-hand 200
inventory
Planned
receipts
Planned
order
releases
Item: Seat frames Item: Seat cushion
Lot size: 300 units Lot size: L4L
Week Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8
Gross Gross
0 230 0 0 230 0 0 0 0 230 0 0 230 0 0 0
requirements requirements
Planned Planned
300 230 230
receipts receipts
Planned Planned
order 300 order 230 230
releases releases
Usage quantity: 4
Item: Seat-frame boards
Lot size: 1500 units
Week
Lead
time: 1 week 1 2 3 4 5 6 7 8
Gross
0 0 0 1200 0 0 0 0
requirements
Scheduled
0 0 0 0 0 0 0 0
receipts
Projected
on-hand 200
inventory
Planned
receipts
Planned
order
releases
Item: Seat frames Item: Seat cushion
Lot size: 300 units Lot size: L4L
Week Week
Lead Lead
time: 1 week 1 2 3 4 5 6 7 8 time: 1 week 1 2 3 4 5 6 7 8
Gross Gross
0 230 0 0 230 0 0 0 0 230 0 0 230 0 0 0
requirements requirements
Planned Planned
300 230 230
receipts receipts
Planned Planned
order 300 order 230 230
releases releases
Week
Lead
time: 1 week 1 2 3 4 5 6 7 8
Gross
0 0 0 1200 0 0 0 0
requirements
Scheduled
0 0 0 0 0 0 0 0
receipts
Projected
on-hand 200 200 200 200 500 500 500 500 500
inventory
Planned
1500
receipts
Planned
order 1500
releases
Authorized
production
plan
Authorized Prospective master
production production
plan schedule
Authorized Prospective master
production production Are resources
plan schedule available?
Authorized Prospective master No
production production Are resources
plan schedule available?
Authorized Prospective master No
production production Are resources
plan schedule available?
Yes
Authorized master
production schedule
Authorized Prospective master No
production production Are resources
plan schedule available?
Yes
Material
Authorized master
requirements
production schedule
planning
55 chairs 38 chairs already
MPS quantity 17
Inventory = currently in + – promised for =
(0 for week 1) chairs
stock delivery in week 1
Item: Ladder-back chair
55 chairs 38 chairs already
MPS quantity
April 17
Inventory = currently in + – promised for =
Quantity (0 for week 1) chairs
stock
55 1 2 delivery in week 1
On Hand:
Forecast 30 30
Customer orders
(booked)
38 27
Projected on-hand
Inventory
MPS quantity
MPS start
Item: Ladder-back chair
55 chairs 38 chairs already
MPS quantity
April 17
Inventory = currently in + – promised for =
Quantity (0 for week 1) chairs
stock
55 1 2 delivery in week 1
On Hand:
Forecast 30 30
Explanation:
Forecast is less than booked
Customer orders orders in week 1; projected
(booked)
38 27 on-hand inventory
balance = 55 + 0 – 38 = 17.
Projected on-hand
Inventory
17
MPS quantity 0
MPS start
Item: Ladder-back chair
55 chairs 38 chairs already
MPS quantity
April 17
Inventory = currently in + – promised for =
Quantity (0 for week 1) chairs
stock
55 1 2 delivery in week 1
On Hand:
Forecast 30 30
Explanation:
Forecast is less than booked
Customer orders orders in week 1; projected
(booked)
38 27 on-hand inventory
balance = 55 + 0 – 38 = 17.
Projected on-hand
Inventory
17 -13
Explanation:
MPS quantity 0 0 Forecast exceeds booked orders in
week 2; projected on-hand inventory
balance = 17 + 0 – 30 = –13. The
MPS start shortage signals a need to schedule an
MPS quantity for completion in week 2.
Order Policy: 150 units
Item: Ladder-back chair Lead Time: 1 week
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17
inventory
MPS quantity 0
MPS start
Order Policy: 150 units
Item: Ladder-back chair Lead Time: 1 week
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17 137
inventory
MPS start
Order Policy: 150 units
Item: Ladder-back chair Lead Time: 1 week
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17 137 Explanation:
inventory
On-hand inventory balance
= 17 + 150 – 30 = 137.
137 The
MPS quantity 0 150
MPS quantity is needed to
avoid a shortage of 30 – 17 = 13
MPS start chairs in week 2.
Order Policy: 150 units
Item: Ladder-back chair Lead Time: 1 week
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17 137
inventory
Explanation:
MPS quantity 0 150 The time needed to assemble
150 chairs is one week. The
assembly department must
MPS start 150 start assembling chairs in week
1 to have them ready by week 2.
Order Policy: 150 units
Item: Ladder-back chair Lead Time: 1 week
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17 137 107
inventory
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17 137 107 77
inventory
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17 137 107 77 42
inventory
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17 137 107 77 42 7
inventory
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17 137 107 77 42 7 122
inventory
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17 137 107 77 42 7 122 87
inventory
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17 137 107 77 42 7 122 87
inventory
Available-to-
promise (ATP)
inventory
Order Policy: 150 units
Item: Ladder-back chair Lead Time: 1 week
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17 137 107 77 42 7 122 87
inventory
Explanation:
MPS quantity 0 150 The
0 total
0 of customer
0 orders
0 150 0
booked until the next MPS
receipt is 38 units. The ATP =
MPS start 150 0 55
0 (on-hand)
0 + 00 (MPS150 0 0
quantity) – 38 = 17.
17
Available-to-
promise (ATP) 17
inventory
Order Policy: 150 units
Item: Ladder-back chair Lead Time: 1 week
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17 137 107 77 42 7 122 87
inventory
April May
Quantity
55
on Hand: 1 2 3 4 5 6 7 8
Forecast 30 30 30 30 35 35 35 35
Customer
orders 38 27 24 8 0 0 0 0
(booked)
Projected
on-hand 17 137 107 77 42 7 122 87
inventory
Available-to-
promise (ATP) 17 91 150
inventory
Week
1 2 3 4 5 6 7 8 9 10
MPS
0 150 0 0 0 0 150 0 0 0
quantity
Week
1 2 3 4 5 6 7 8 9 10
MPS
0 150 0 0 0 0 150 0 0 0
quantity
Demand
time
fence
Week
1 2 3 4 5 6 7 8 9 10
MPS
0 150 0 0 0 0 150 0 0 0
quantity
Week
Quantity
5
on Hand: 1 2 3 4 5 6 7 8 7 8
Forecast 20 10 40 10 0 0 40 20 30 10
Customer
orders 30 20 5 8 0 2 0 0 0 0
(booked)
Projected
on-hand 25
inventory
MPS quantity 50
MPS start
Available-to-
promise (ATP)
inventory
Customer orders Forecasts
Bills of materials
MRP Inventory records
Routings
explosion Inventory transactions
Time standards
Cost and
Manufacturing resource plan
financial data
750 —
500 —
250 —
0—
| | | |
1 2 3 4
Quarter
Production
Plan 1500 —
Tru-Rainbow
1250 —
Company
Paint (thousands of gallons)
Requirements
1000 —
Production plan
750 —
500 —
250 —
0—
| | | |
1 2 3 4
Quarter
Production Inventory
Plan 1500 —
accumulation
Tru-Rainbow
1250 —
Company
Paint (thousands of gallons)
Requirements
1000 —
Production plan
750 —
500 —
250 — 300
0 — 510
| | | |
1 2 3 4
Quarter
Production Inventory
Plan 1500 —
accumulation
Inventory
Tru-Rainbow consumption
1250 — 400
Company
Paint (thousands of gallons)
Requirements
1000 —
Production plan
750 —
110
500 —
250 — 300
0 — 510
| | | |
1 2 3 4
Quarter
Production Inventory
Plan 1500 —
accumulation
Inventory
Tru-Rainbow consumption
1250 — 400
Company
Paint (thousands of gallons)
Requirements
1000 —
Production plan
750 —
110
500 —
250 — 300
0 — 510
| | | |
1 2 3 4
Quarter
Production
Planning
Tableau
Tru-Rainbow
Company
Production
Planning
Tableau
Tru-Rainbow Total Cost
Company Quarter Cost
Production
Planning
Tableau
Tru-Rainbow Total Cost
Company Quarter Cost
1 250($0) + 30($1.00) + 20($1.90) = $68
Production
Planning
Tableau
Tru-Rainbow Total Cost
Company Quarter Cost
1 250($0) + 30($1.00) + 20($1.90) = $68
2 420($1.30) + 90($1.80) + 340($1.00) = 1,048
Production
Planning
Tableau
Tru-Rainbow Total Cost
Company Quarter Cost
1 250($0) + 30($1.00) + 20($1.90) = $68
2 420($1.30) + 90($1.80) + 340($1.00) = 1,048
3 110($1.30) + 90($1.80) + 200($2.20)
+ 750($1.00) + 150($1.50) = 2,100
Production
Planning
Tableau
Tru-Rainbow Total Cost
Company Quarter Cost
1 250($0) + 30($1.00) + 20($1.90) = $68
2 420($1.30) + 90($1.80) + 340($1.00) = 1,048
3 110($1.30) + 90($1.80) + 200($2.20)
+ 750($1.00) + 150($1.50) = 2,100
4 450($1.00) + 90($1.50) + 110($1.90) = 794
Total $4,010
Regular-Time Overtime Subcon-
Quarter Production Production tracting Total
1 450 90 20 560
2 450 90 200 740
3 750 150 200 1,100
4 450 90 110 650
Totals 2,100 420 530 3,050
Anticipation Inventory
Quarter Quantity
Regular-Time Overtime Subcon-
Quarter Production Production tracting Total
1 450 90 20 560
2 450 90 200 740
3 750 150 200 1,100
4 450 90 110 650
Totals 2,100 420 530 3,050
Anticipation Inventory
Quarter Quantity
1 250 + 560 – 300 = 510
2 510 + 740 – 850 = 400
3 400 + 1,100 – 1,500 = 0
4 0 + 650 – 350 = 300
er
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ter
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Re cont Ca Ca
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Re cont
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Bythe end of this topic, you should be
able to:
Discuss the aggregate planning
strategies;
Describe some of the methods used in
aggregate planning;
Identify assignment method, sequencing
rules and Johnson’s rule; and
Explain shop loading, sequencing
monitoring.
147
Planning Relationships
Business
or annual
plan
Planning Relationships
Business
or annual
plan
Production
or staffing
plan
Planning Relationships
Business
or annual
plan
Production
or staffing
plan
MPS or
workforce
schedule
Planning Relationships
Business
or annual
plan
Production
or staffing
plan
MPS or
workforce
schedule
Planning Relationships
Business
or annual
plan
Production
or staffing
plan
MPS or
workforce
schedule
Managerial Inputs
Aggregate
plan
Managerial Inputs
Distribution and marketing
Customer needs
Demand forecasts
Competition behavior
Aggregate
plan
Managerial Inputs
Distribution and marketing
Customer needs
Demand forecasts
Competition behavior
Human resources
Labor-market conditions
Training capacity
Managerial Inputs
Distribution and marketing
Customer needs
Demand forecasts
Competition behavior
Is the plan
acceptable?
Aggregate Planning Process
Determine Prepare prospective
Identify alternatives,
requirements for plan for
constraints, and costs
planning horizon planning horizon
No
Is the plan
acceptable?
Aggregate Planning Process
Determine Prepare prospective
Identify alternatives,
requirements for plan for
constraints, and costs
planning horizon planning horizon
No
Is the plan
acceptable?
Yes
Implement and
update the plan
Aggregate Planning Process
Determine Prepare prospective
Identify alternatives,
requirements for plan for
constraints, and costs
planning horizon planning horizon
No
Is the plan
acceptable?
Yes
Move ahead
Implement and
to next
update the plan
planning session
• Regular-Time Costs
• Overtime Costs
• Hiring and
Layoff Costs
• Inventory
Holding Costs
• Backorder and Stockout Costs
169
Dock Aisle
170
Dock Aisle
TIME PERIOD
1 2 3 4 5 6 Total
Requirement* 6 12 18 15 13 14 78
Current employment = 10 part-time clerks * Number of part-time employees
171
Dock Aisle
TIME PERIOD
1 2 3 4 5 6 Total
Requirement* 6 12 18 15 13 14 78
Current employment = 10 part-time clerks * Number of part-time employees
172
Dock Aisle
TIME PERIOD
1 2 3 4 5 6 Total
Requirement* 6 12 18 15 13 14 78
Current employment = 10 part-time clerks
Peak Requirement
1. No more than 10 new hires in any period
2. No backorders are permitted
3. Overtime can not exceed 20% of regular-time capacity
4. The following costs can be assigned:
Regular-time wage $2,000/period at 20 hours/week
Overtime wages 150% of regular-time
Hiring $1,000/person
Layoffs $500/person
173
Dock Aisle
TIME PERIOD
1 2 3 4 5 6 Total
Requirement* 6 12 18 15 13 14 78
Current employment = 10 part-time clerks
Peak Requirement
1. No more than 10 new hires in any period
2. No backorders are permitted
1.20w = 18 employees in peak period
3. Overtime can not exceed 20% of regular-time capacity
4. The following costs can be assigned:
Regular-time wage $2,000/period at 20 hours/week
Overtime wages 150% of regular-time
Hiring $1,000/person
Layoffs $500/person
174
Dock Aisle
TIME PERIOD
1 2 3 4 5 6 Total
Requirement* 6 12 18 15 13 14 78
Current employment = 10 part-time clerks
Peak Requirement
1. No more than 10 new hires in any period
2. No backorders are permitted
1.20w = 18 employees in peak period
3. Overtime can not exceed 20% of regular-time capacity
4. 18
The following costs can be assigned:
Regular-time wage w = = 15atemployees
$2,000/period 20 hours/week
1.20
Overtime wages 150% of regular-time
Hiring $1,000/person
Layoffs $500/person
175
Dock Aisle
TIME PERIOD
1 2 3 4 5 6 Total
Requirement* 6 12 18 15 13 14 78
Current employment = 10 part-time clerks
Peak Requirement
1. No more than 10 new hires in any period
2. No backorders are permitted
1.20w = 18 employees in peak period
3. Overtime can not exceed 20% of regular-time capacity
4. 18
The following costs can be assigned:
Regular-time wage w = = 15atemployees
$2,000/period 20 hours/week
1.20
Overtime wages 150% of regular-time
Hiring $1,000/person
Layoffs $500/person
176
Scheduling Services
Required employees
Day M T W Th F S Su
Number of employees 6 4 8 9 10* 3 2
178
Scheduling Services
Required employees
Day M T W Th F S Su
Number of employees 6 4 8 9 10* 3 2
Employee 1
179
Scheduling Services
Required employees
Day M T W Th F S Su
Number of employees 6 4 8 9 10* 3 2
Employee 1 X X X X X
180
Scheduling Services
Required employees
Day M T W Th F S Su
Number of employees 6 4 8 9 10* 3 2
Employee 1 X X X X X
Requirement 5 3 7 8 9* 3 2
181
Scheduling Services
Required employees
Day M T W Th F S Su
Number of employees 6 4 8 9 10* 3 2
Employee 1 X X X X X
Requirement 5 3 7 8 9* 3 2
Employee 2 X X X X X
182
Scheduling Services
Required employees
Day M T W Th F S Su
Number of employees 6 4 8 9 10* 3 2
Employee 1 X X X X X
Requirement 5 3 7 8 9* 3 2
Employee 2 X X X X X
Requirement 4 2 6 7 8* 3 2
183
Scheduling Services
Required employees
Day M T W Th F S Su
Number of employees 6 4 8 9 10* 3 2
Employee 1 X X X X X
Requirement 5 3 7 8 9* 3 2
Employee 2 X X X X X
Requirement 4 2 6 7 8* 3 2
Employee 3 X X X X X
184
Scheduling Services
Required employees
Day M T W Th F S Su
Number of employees 6 4 8 9 10* 3 2
Employee 1 X X X X X
Requirement 5 3 7 8 9* 3 2
Employee 2 X X X X X
Requirement 4 2 6 7 8* 3 2
Employee 3 X X X X X
Requirement 3 1 5 6 7* 3 2
185
Scheduling Services
Required employees
Day M T W Th F S Su
Number of employees 6 4 8 9 10* 3 2
Employee 1 X X X X X
Requirement 5 3 7 8 9* 3 2
Employee 2 X X X X X
Requirement 4 2 6 7 8* 3 2
Employee 3 X X X X X
Requirement 3 1 5 6 7* 3 2
Employee 4 X X X X X
186
Scheduling Services
Required employees
Day M T W Th F S Su
Number of employees 6 4 8 9 10* 3 2
Employee 1 X X X X X
Requirement 5 3 7 8 9* 3 2
Employee 2 X X X X X
Requirement 4 2 6 7 8* 3 2
Employee 3 X X X X X
Requirement 3 1 5 6 7* 3 2
Employee 4 X X X X X
Requirement 3 1 4 5 6* 2 1
187
Scheduling Services
Required employees
Day M T W Th F S Su
Number of employees 6 4 8 9 10* 3 2
Employee 1 X X X X X
Requirement 5 3 7 8 9* 3 2
Employee 2 X X X X X
Requirement 4 2 6 7 8* 3 2
Employee 3 X X X X X
Requirement 3 1 5 6 7* 3 2
Employee 4 X X X X X
Requirement 3 1 4 5 6* 2 1
Employee 5 X X X X X
188
Scheduling Services
Required employees
Day M T W Th F S Su
Requirement 2 0 3 4 5* 2 1
189
Scheduling Services
Required employees
Day M T W Th F S Su
Requirement 2 0 3 4 5* 2 1
Employee 6 X X X X X
190
Scheduling Services
Required employees
Day M T W Th F S Su
Requirement 2 0 3 4 5* 2 1
Employee 6 X X X X X
Requirement 2 0 2 3 4* 1 0
Employee 7 X X X X X
191
Scheduling Services
Required employees
Day M T W Th F S Su
Requirement 2 0 3 4 5* 2 1
Employee 6 X X X X X
Requirement 2 0 2 3 4* 1 0
Employee 7 X X X X X
Requirement 1 0 1 2 3* 1 0
Employee 8 X X X X X
192
Scheduling Services
Required employees
Day M T W Th F S Su
Requirement 2 0 3 4 5* 2 1
Employee 6 X X X X X
Requirement 2 0 2 3 4* 1 0
Employee 7 X X X X X
Requirement 1 0 1 2 3* 1 0
Employee 8 X X X X X
Requirement 0 0 0 1 2* 1 0
Employee 9 X X X X X
193
Scheduling Services
Required employees
Day M T W Th F S Su
Requirement 2 0 3 4 5* 2 1
Employee 6 X X X X X
Requirement 2 0 2 3 4* 1 0
Employee 7 X X X X X
Requirement 1 0 1 2 3* 1 0
Employee 8 X X X X X
Requirement 0 0 0 1 2* 1 0
Employee 9 X X X X X
Requirement 0 0 0 0 1* 0 0
Employee 10 X X X X X
194
Scheduling Services
Final Schedule
Day M T W Th F S Su
Employee 1 X X X X X off off
Employee 2 X X X X X off off
Employee 3 X X X X X off off
Employee 4 off off X X X X X
Employee 5 X X X X X off off
Employee 6 off off X X X X X
Employee 7 X X X X X off off
Employee 8 X X X X X off off
Employee 9 off X X X X X off
Employee 10 X X X X X off off
195
Scheduling Services
Final Schedule
Day M T W Th F S Su
Employee 1 X X X X X off off
Employee 2 X X X X X off off
Day Employee M3 T XW XTh X F XS XSuoff TOTAL
off
Employee 4 off off X X X X X
Employee 5 X X X X X off off
Employee 6 off off X X X X X
Employee 7 X X X X X off off
Employee 8 X X X X X off off
Employee 9 off X X X X X off
Employee 10 X X X X X off off
196
Scheduling Services
Final Schedule
Day M T W Th F S Su
Employee 1 X X X X X off off
Employee 2 X X X X X off off
Day Employee M3 T XW XTh X F X S XSuoff TOTAL
off
Employee
Capacity, C 74 8 off10off10 X10 X 3 X2 X X
50
Employee 5 X X X X X off off
Employee 6 off off X X X X X
Employee 7 X X X X X off off
Employee 8 X X X X X off off
Employee 9 off X X X X X off
Employee 10 X X X X X off off
197
Scheduling Services
Final Schedule
Day M T W Th F S Su
Employee 1 X X X X X off off
Employee 2 X X X X X off off
Day Employee M3 T XW XTh X F X S XSuoff TOTAL
off
Employee
Capacity, C 74 8 off10off10 X10 X 3 X2 X X
50
Employee
Requirements, R 65 4 X 8 X 9 X10 X 3 X 2 off 42
off
Employee 6 off off X X X X X
Employee 7 X X X X X off off
Employee 8 X X X X X off off
Employee 9 off X X X X X off
Employee 10 X X X X X off off
198
Scheduling Services
Final Schedule
Day M T W Th F S Su
Employee 1 X X X X X off off
Employee 2 X X X X X off off
Day Employee M3 T XW XTh X F X S XSuoff TOTAL
off
Employee
Capacity, C 74 8 off10off10 X10 X 3 X2 X X
50
Employee
Requirements, R 65 4 X 8 X 9 X10 X 3 X 2 off 42
off
Slack, CEmployee
–R 16 4 off 2 off 1 X 0 X 0 X0 X X8
Employee 7 X X X X X off off
Employee 8 X X X X X off off
Employee 9 off X X X X X off
Employee 10 X X X X X off off
199
Manufacturing Process
Shipping Department
Raw Materials
Legend:
Batch of parts
Workstation
200
Dispatching Procedures
• Critical ratio (CR)
= (Due date – Today’s date)/Total shop time remaining
• Earliest due date (EDD)
• First come, first served (FCFS)
• Shortest processing time (SPT)
• Slack per remaining operations (S/RO)
= ((Due date - Today’s date) – Total shop time remaining)/
Number of operations remaining
201
Sequencing
Single-Dimension Rules – EDD
Job Scheduled Actual
Engine Processing Flow Customer Customer Hours
Block Begin Time Time Pickup Pickup Hours Past
Sequence Work (hr) (hr) Time Time Early Due
Ranger 0 + 8 = 8 10 10 2
Explorer 8 + 6 = 14 12 14 2
Econoline 150 14 + 3 = 17 18 18 1
Bronco 17 + 15 = 32 20 32 12
Thunderbird 32 + 12 = 44 22 44 22
202
Sequencing
Single-Dimension Rules – EDD
Job Scheduled Actual
Engine Processing Flow Customer Customer Hours
Block Begin Time Time Pickup Pickup Hours Past
Sequence Work (hr) (hr) Time Time Early Due
Ranger 0 + 8 = 8 10 10 2
Explorer 8 + 6 = 14 12 14 2
Econoline 150 14 + 3 = 17 18 18 1
Bronco 17 + 15 = 32 20 32 12
Thunderbird 32 + 12 = 44 22 44 22
8 + 14 + 17 + 32 + 44
Average job flow time =
5
203
Sequencing
Single-Dimension Rules – EDD
Job Scheduled Actual
Engine Processing Flow Customer Customer Hours
Block Begin Time Time Pickup Pickup Hours Past
Sequence Work (hr) (hr) Time Time Early Due
Ranger 0 + 8 = 8 10 10 2
Explorer 8 + 6 = 14 12 14 2
Econoline 150 14 + 3 = 17 18 18 1
Bronco 17 + 15 = 32 20 32 12
Thunderbird 32 + 12 = 44 22 44 22
204
Sequencing
Single-Dimension Rules – EDD
Job Scheduled Actual
Engine Processing Flow Customer Customer Hours
Block Begin Time Time Pickup Pickup Hours Past
Sequence Work (hr) (hr) Time Time Early Due
Ranger 0 + 8 = 8 10 10 2
Explorer 8 + 6 = 14 12 14 2
Econoline 150 14 + 3 = 17 18 18 1
Bronco 17 + 15 = 32 20 32 12
Thunderbird 32 + 12 = 44 22 44 22
205
Sequencing
Single-Dimension Rules – EDD
Job Scheduled Actual
Engine Processing Flow Customer Customer Hours
Block Begin Time Time Pickup Pickup Hours Past
Sequence Work (hr) (hr) Time Time Early Due
Ranger 0 + 8 = 8 10 10 2
Explorer 8 + 6 = 14 12 14 2
Econoline 150 14 + 3 = 17 18 18 1
Bronco 17 + 15 = 32 20 32 12
Thunderbird 32 + 12 = 44 22 44 22
Average job flow time = 32 hours Average hours early = 0.6 hour
206
Sequencing
Single-Dimension Rules – EDD
Job Scheduled Actual
Engine Processing Flow Customer Customer Hours
Block Begin Time Time Pickup Pickup Hours Past
Sequence Work (hr) (hr) Time Time Early Due
Ranger 0 + 8 = 8 10 10 2
Explorer 8 + 6 = 14 12 14 2
Econoline 150 14 + 3 = 17 18 18 1
Bronco 17 + 15 = 32 20 32 12
Thunderbird 32 + 12 = 44 22 44 22
Average job flow time = 32 hours Average hours early = 0.6 hour
0 + 2 + 0 + 12 + 22
Average hours past due =
5
207
Sequencing
Single-Dimension Rules – EDD
Job Scheduled Actual
Engine Processing Flow Customer Customer Hours
Block Begin Time Time Pickup Pickup Hours Past
Sequence Work (hr) (hr) Time Time Early Due
Ranger 0 + 8 = 8 10 10 2
Explorer 8 + 6 = 14 12 14 2
Econoline 150 14 + 3 = 17 18 18 1
Bronco 17 + 15 = 32 20 32 12
Thunderbird 32 + 12 = 44 22 44 22
Average job flow time = 32 hours Average hours early = 0.6 hour
208
Sequencing
Single-Dimension Rules – EDD
Job Scheduled Actual
Engine Processing Flow Customer Customer Hours
Block Begin Time Time Pickup Pickup Hours Past
Sequence Work (hr) (hr) Time Time Early Due
Ranger 0 + 8 = 8 10 10 2
Explorer 8 + 6 = 14 12 14 2
Econoline 150 14 + 3 = 17 18 18 1
Bronco 17 + 15 = 32 20 32 12
Thunderbird 32 + 12 = 44 22 44 22
Average job flow time = 32 hours Average hours early = 0.6 hour
Average job flow time = 32 hours Average hours early = 0.6 hour
Average job flow time = 32 hours Average hours early = 0.6 hour
Average hours past due = 7.2 hours Average WIP = 2.61 blocks
211
Sequencing
Single-Dimension Rules – EDD
Job Scheduled Actual
Engine Processing Flow Customer Customer Hours
Block Begin Time Time Pickup Pickup Hours Past
Sequence Work (hr) (hr) Time Time Early Due
Ranger 0 + 8 = 8 10 10 2
Explorer 8 + 6 = 14 12 14 2
Econoline 150 14 + 3 = 17 18 18 1
Bronco 17 + 15 = 32 20 32 12
Thunderbird 32 + 12 = 44 22 44 22
Average job flow time = 32 hours Average hours early = 0.6 hour
Average hours past due = 7.2 hours Average WIP = 2.61 blocks
Sum of time in system
Average total inventory =
Makespan
212
Sequencing
Single-Dimension Rules – EDD
Job Scheduled Actual
Engine Processing Flow Customer Customer Hours
Block Begin Time Time Pickup Pickup Hours Past
Sequence Work (hr) (hr) Time Time Early Due
Ranger 0 + 8 = 8 10 10 2
Explorer 8 + 6 = 14 12 14 2
Econoline 150 14 + 3 = 17 18 18 1
Bronco 17 + 15 = 32 20 32 12
Thunderbird 32 + 12 = 44 22 44 22
Average job flow time = 32 hours Average hours early = 0.6 hour
Average hours past due = 7.2 hours Average WIP = 2.61 blocks
10 + 14 + 18 + 32 + 44
Average total inventory =
44
213
Sequencing
Single-Dimension Rules – EDD
Job Scheduled Actual
Engine Processing Flow Customer Customer Hours
Block Begin Time Time Pickup Pickup Hours Past
Sequence Work (hr) (hr) Time Time Early Due
Ranger 0 + 8 = 8 10 10 2
Explorer 8 + 6 = 14 12 14 2
Econoline 150 14 + 3 = 17 18 18 1
Bronco 17 + 15 = 32 20 32 12
Thunderbird 32 + 12 = 44 22 44 22
Average job flow time = 32 hours Average hours early = 0.6 hour
Average hours past due = 7.2 hours Average WIP = 2.61 blocks
Average job flow time = 20.4 hours Average hours early = 3.6 hour
Average hours past due = 7.6 hours Average WIP = 2.32 blocks
217
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1
2 10.5 10 2 7.8
3 6.2 20 12 14.5
4 15.6 8 5 10.2
15
CR =
6.1
218
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1
2 10.5 10 2 7.8
3 6.2 20 12 14.5
4 15.6 8 5 10.2
15
CR = = 2.46
6.1
219
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46
2 10.5 10 2 7.8
3 6.2 20 12 14.5
4 15.6 8 5 10.2
15
CR = = 2.46
6.1
220
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46
2 10.5 10 2 7.8 1.28
3 6.2 20 12 14.5 1.38
4 15.6 8 5 10.2 .78
221
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46
2 10.5 10 2 7.8 1.28
3 6.2 20 12 14.5 1.38
4 15.6 8 5 10.2 .78
222
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46
2 10.5 10 2 7.8 1.28
3 6.2 20 12 14.5 1.38
4 15.6 8 5 10.2 .78
15 – 6.1
S/RO =
10
223
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46
2 10.5 10 2 7.8 1.28
3 6.2 20 12 14.5 1.38
4 15.6 8 5 10.2 .78
15 – 6.1
S/RO = = 0.89
10
224
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 2 7.8 1.28
3 6.2 20 12 14.5 1.38
4 15.6 8 5 10.2 .78
15 – 6.1
S/RO = = 0.89
10
225
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 2 7.8 1.28 1.10
3 6.2 20 12 14.5 1.38 0.46
4 15.6 8 5 10.2 .78 – 0.44
226
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 2 7.8 1.28 1.10
3 6.2 20 12 14.5 1.38 0.46
4 15.6 8 5 10.2 .78 – 0.44
CR Sequence =
227
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 2 7.8 1.28 1.10
3 6.2 20 12 14.5 1.38 0.46
4 15.6 8 5 10.2 .78 – 0.44
CR Sequence = 4
228
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 2 7.8 1.28 1.10
3 6.2 20 12 14.5 1.38 0.46
4 15.6 8 5 10.2 .78 – 0.44
CR Sequence = 4–2
229
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 2 7.8 1.28 1.10
3 6.2 20 12 14.5 1.38 0.46
4 15.6 8 5 10.2 .78 – 0.44
CR Sequence = 4–2–3
230
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 2 7.8 1.28 1.10
3 6.2 20 12 14.5 1.38 0.46
4 15.6 8 5 10.2 .78 – 0.44
CR Sequence = 4–2–3–1
231
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 2 7.8 1.28 1.10
3 6.2 20 12 14.5 1.38 0.46
4 15.6 8 5 10.2 .78 – 0.44
CR Sequence = 4–2–3–1
S/RO Sequence =
232
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 2 7.8 1.28 1.10
3 6.2 20 12 14.5 1.38 0.46
4 15.6 8 5 10.2 .78 – 0.44
CR Sequence = 4–2–3–1
S/RO Sequence = 4
233
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 2 7.8 1.28 1.10
3 6.2 20 12 14.5 1.38 0.46
4 15.6 8 5 10.2 .78 – 0.44
CR Sequence = 4–2–3–1
S/RO Sequence = 4 – 3
234
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 2 7.8 1.28 1.10
3 6.2 20 12 14.5 1.38 0.46
4 15.6 8 5 10.2 .78 – 0.44
CR Sequence = 4–2–3–1
S/RO Sequence = 4 – 3 – 1
235
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Remaining Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 2 7.8 1.28 1.10
3 6.2 20 12 14.5 1.38 0.46
4 15.6 8 5 10.2 .78 – 0.44
CR Sequence = 4–2–3–1
S/RO Sequence = 4 – 3 – 1 – 2
236
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Sequence
Remaining Summary
Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 2 7.8 1.28 1.10
3 6.2 20 12 14.5 1.38 0.46
4 15.6 8 5 10.2 .78 – 0.44
CR Sequence = 4–2–3–1
S/RO Sequence = 4 – 3 – 1 – 2
237
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Sequence
Remaining Summary
Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 FCFS
2 = 17.8
– 2 – 1.28
3 – 4 1.10
3 6.2 20 12 14.5 1.38 0.46
4 15.6 8 5 10.2 .78 – 0.44
CR Sequence = 4–2–3–1
S/RO Sequence = 4 – 3 – 1 – 2
238
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Sequence
Remaining Summary
Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 FCFS
2 = 17.8
– 2 – 1.28
3 – 4 1.10
3 6.2 20 SPT = 14.5
12 1 – 3 – 1.38
2 – 4 0.46
4 15.6 8 5 10.2 .78 – 0.44
CR Sequence = 4–2–3–1
S/RO Sequence = 4 – 3 – 1 – 2
239
Sequencing
Multiple-Dimension Rules
Operation Time
Time at Remaining Number of
Engine to Due Date Operations Shop Time
Job Lathe (hr) (Days) Sequence
Remaining Summary
Remaining CR S/RO
1 2.3 15 10 6.1 2.46 0.89
2 10.5 10 FCFS
2 = 17.8
– 2 – 1.28
3 – 4 1.10
3 6.2 20 SPT = 14.5
12 1 – 3 – 1.38
2 – 4 0.46
4 15.6 8 EDD
5 = 10.2
4 – 2 – 1.78
– 3 – 0.44
CR Sequence = 4–2–3–1
S/RO Sequence = 4 – 3 – 1 – 2
240
Sequencing
Multiple-Dimension Rules
Operation Time
Priority Rule Summary
Time at Remaining Number of
Engine to Due Date Shortest
Operations Shop Time Slack per
Job Lathe (hr) Sequence
(Days) Processing Earliest
Remaining Summary
Critical CR
Remaining Remaining
S/RO
FCFS Time Due Date Ratio Operation
1 2.3 15 10 6.1 2.46 0.89
Avg Flow Time 17.175 16.100 26.175 27.150 24.025
2Avg Early
10.5Time 10
3.425
FCFS =0 17.8
6.0502
– 2 –01.28
3 – 4 1.10
0
3Avg Past6.2
Due 20
7.350 SPT12.925
12
8.900 = 14.5
1 –13.900
3 – 1.38
2 –10.775
4 0.46
4Avg WIP
15.6 8
1.986 1.861EDD = 10.2
5 3.026 4 – 3.129
2 – 1.78
– 32.777
– 0.44
Avg Total Inv 2.382 2.561 3.026 3.129 2.777
CR Sequence = 4–2–3–1
S/RO Sequence = 4 – 3 – 1 – 2
241
Sequencing
Simulation
1. Frame straightening * 8 2
2a. Body repair, major damage * 16 4
2b. Body repair, minor damage * 8 2
3. Paint preparation 11/4 1
/3
4. Paint application (two coats) 11/2 1
/2
6. Clean up 3 1
/2
* Not necessary for all vehicles
242
Sequencing
Simulation
243
Sequencing
Simulation
244
Sequencing
Simulation
Figure 17.6
245
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
246
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence =
247
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence =
248
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence = M3
249
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence = M3
250
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence = M3
251
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence = M3
252
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence = M2 M3
253
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence = M2 M3
254
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence = M2 M3
255
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence = M2 M5 - M3
256
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence = M2 M5 - M3
257
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence = M2 - M1 M5 - M3
258
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence = M2 - M1 M5 - M3
259
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence = M2 - M1 - M4 - M5 - M3
260
Sequencing
Johnson’s Rule
Time (hr)
Motor Workstation 1 Workstation 2
M1 12 22
M2 4 5
M3 5 3
M4 15 16
M5 10 8
Sequence = M2 - M1 - M4 - M5 - M3
261
Sequencing
Johnson’s Rule
Time (hr)
Workstation Motor Workstation 1 Workstation 2
1 M1 12 22
M2 4 5
2 M3 5 3
M4 15 16
0 5 10 15 20 25 30 35 40 45 50 55 60 65
M5 10 Day 8
Sequence = M2 - M1 - M4 - M5 - M3
262
Sequencing
Johnson’s Rule
Time (hr)
Workstation Motor Workstation 1 Workstation 2
M2 M1 M4 M5 M3 Idle—available
1 (4) M1
(12) 12
(15) (10) (5) 22 for further work
M2 4 5
2 M3 5 3
M4 15 16
0 5 10 15 20 25 30 35 40 45 50 55 60 65
M5 10 Day 8
Sequence = M2 - M1 - M4 - M5 - M3
263
Sequencing
Johnson’s Rule
Time (hr)
Workstation Motor Workstation 1 Workstation 2
M2 M1 M4 M5 M3 Idle—available
1 (4) M1
(12) 12
(15) (10) (5) 22 for further work
M2 4 5
2 M3 5 3
M4 15 16
0 5 10 15 20 25 30 35 40 45 50 55 60 65
M5 10 Day 8
Sequence = M2 - M1 - M4 - M5 - M3
264
Sequencing
Johnson’s Rule
Time (hr)
Workstation Motor Workstation 1 Workstation 2
M2 M1 M4 M5 M3 Idle—available
1 (4) M1
(12) 12
(15) (10) (5) 22 for further work
M2 4 5
2 Idle M3 5 3
M4 15 16
0 5 10 15 20 25 30 35 40 45 50 55 60 65
M5 10 Day 8
Sequence = M2 - M1 - M4 - M5 - M3
265
Sequencing
Johnson’s Rule
Time (hr)
Workstation Motor Workstation 1 Workstation 2
M2 M1 M4 M5 M3 Idle—available
1 (4) M1
(12) 12
(15) (10) (5) 22 for further work
M2 4 5
2 Idle M2M3 5 3
(5)
M4 15 16
0 5 10 15 20 25 30 35 40 45 50 55 60 65
M5 10 Day 8
Sequence = M2 - M1 - M4 - M5 - M3
266
Sequencing
Johnson’s Rule
Time (hr)
Workstation Motor Workstation 1 Workstation 2
M2 M1 M4 M5 M3 Idle—available
1 (4) M1
(12) 12
(15) (10) (5) 22 for further work
M2 4 5
2 Idle M2M3 5 3
(5)
M4 15 16
0 5 10 15 20 25 30 35 40 45 50 55 60 65
M5 10 Day 8
Sequence = M2 - M1 - M4 - M5 - M3
267
Sequencing
Johnson’s Rule
Time (hr)
Workstation Motor Workstation 1 Workstation 2
M2 M1 M4 M5 M3 Idle—available
1 (4) M1
(12) 12
(15) (10) (5) 22 for further work
M2 4 5
2 Idle M2M3Idle 5 3
(5)
M4 15 16
0 5 10 15 20 25 30 35 40 45 50 55 60 65
M5 10 Day 8
Sequence = M2 - M1 - M4 - M5 - M3
268
Sequencing
Johnson’s Rule
Time (hr)
Workstation Motor Workstation 1 Workstation 2
M2 M1 M4 M5 M3 Idle—available
1 (4) M1
(12) 12
(15) (10) (5) 22 for further work
M2 4 5
2 Idle M2M3Idle 5(22)
M1 3
(5)
M4 15 16
0 5 10 15 20 25 30 35 40 45 50 55 60 65
M5 10 Day 8
Sequence = M2 - M1 - M4 - M5 - M3
269
Sequencing
Johnson’s Rule
Time (hr)
Workstation Motor Workstation 1 Workstation 2
M2 M1 M4 M5 M3 Idle—available
1 (4) M1
(12) 12
(15) (10) (5) 22 for further work
M2 4 5
2 Idle M2M3Idle 5(22)
M1 M43
(5) (16)
M4 15 16
0 5 10 15 20 25 30 35 40 45 50 55 60 65
M5 10 Day 8
Sequence = M2 - M1 - M4 - M5 - M3
270
Sequencing
Johnson’s Rule
Time (hr)
Workstation Motor Workstation 1 Workstation 2
M2 M1 M4 M5 M3 Idle—available
1 (4) M1
(12) 12
(15) (10) (5) 22 for further work
M2 4 5
2 Idle M2M3Idle 5(22)
M1 M43 M5
(5) (16) (8)
M4 15 16
0 5 10 15 20 25 30 35 40 45 50 55 60 65
M5 10 Day 8
Sequence = M2 - M1 - M4 - M5 - M3
271
Sequencing
Johnson’s Rule
Time (hr)
Workstation Motor Workstation 1 Workstation 2
M2 M1 M4 M5 M3 Idle—available
1 (4) M1
(12) 12
(15) (10) (5) 22 for further work
M2 4 5
2 Idle M2M3Idle 5(22)
M1 M43 M5 M3
(5) (16) (8) (3)
M4 15 16
0 5 10 15 20 25 30 35 40 45 50 55 60 65
M5 10 Day 8
Sequence = M2 - M1 - M4 - M5 - M3
272
Sequencing
Johnson’s Rule
Time (hr)
Workstation Motor Workstation 1 Workstation 2
M2 M1 M4 M5 M3 Idle—available
1 (4) M1
(12) 12
(15) (10) (5) 22 for further work
M2 4 5
2 Idle M2M3Idle 5(22)
M1 M43 M5 M3
(5) (16) (8) (3)
M4 15 16
0 5 10 15 20 25 30 35 40 45 50 55 60 65
M5 10 Day 8
Sequence = M2 - M1 - M4 - M5 - M3
273
Gantt Charts
Progress Chart
Key
Job 4/17 4/18 4/19 4/20 4/21 4/22
Start4/23 4/24 4/25 4/26
activity
274
Gantt Charts
Progress Chart
Current
date
Job 4/17 4/18 4/19 4/20 4/21 4/22 4/23 4/24 4/25 4/26
Ford
Plymouth
Pontiac
275
Gantt Charts
Operating Rooms Chart
Time
12
Workstation 7am 8am 9am 10am 11am noon 1pm 2pm 3pm 4pm 5pm 6pm
Dr. Jon
Operating Adams Dr. Aubrey Brothers
Room A
Dr. Jeff
Operating Dr. Gary Case Dow Dr. Madeline Easton
Room B
276
Date: Week: 32
Plant 01 Dept. 03: Lathe Station
Capacity: 320 hours per week
Week
32 33 34 35 36 37
Actual hours
Total hours
Date: Week: 32
Plant 01 Dept. 03: Lathe Station
Capacity: 320 hours per week
Week
32 33 34 35 36 37
Total hours
Date: Week: 32
Plant 01 Dept. 03: Lathe Station
Capacity: 320 hours per week
Week
32 33 34 35 36 37
Week
32 33 34 35 36 37
Week Ending
28 29 30 31 32
Inputs
Planned
Actual
Cumulative deviation
Outputs
Planned
Actual
Cumulative deviation
Workstation: Rough Mill Week: 32
Tolerance: ± 25 hours
Week Ending
28 29 30 31 32
Inputs
Planned 160 155 170 160 165
Actual 145 160 168 177
Cumulative deviation – 15 – 10 – 12 +5
Outputs
Planned 170 170 160 160 160
Actual 165 165 150 148
Cumulative deviation – 5 –- 10 – 20 – 32
Explanation:
Cumulative deviations
Workstation: Rough Mill Week: 32 between – 25 hours
Tolerance: ± 25 hours and + 25 hours are
allowed.
Week Ending
28 29 30 31 32
Inputs
Planned 160 155 170 160 165
Actual 145 160 168 177
Cumulative deviation – 15 – 10 – 12 +5
Outputs
Planned 170 170 160 160 160
Actual 165 165 150 148
Cumulative deviation –5 – 10 – 20 – 32
Explanation:
Cumulative deviations
Workstation: Rough Mill Week: 32 between – 25 hours
Tolerance: ± 25 hours and + 25 hours are
allowed.
Week Ending
28 29 30 31 32
Inputs
Planned 160 155 170 160 165
Actual 145 160 168 177
Cumulative deviation – 15 – 10 – 12 +5
Explanation:
Cumulative deviation
Outputs exceeds lower tolerance
Planned 170 170 160 160 160 limit, indicating actual
Actual 165 165 150 148 hours of output have fallen
Cumulative deviation –5 – 10 – 20 – 32
too far below planned
hours of output and some
action is required.
Topic 5
A large, integrated information
system that supports many
enterprise processes and data
storage needs.
286
Purchasing
• Communication
• Transportation
Suppliers • EDI
• Materials handling
• Testing
• Storage
• Office technology
• Information
technology
Purchasing
• Communication
Suppliers • Transportation
• EDI
• Materials
handling
• Testing
• Storage
• Office
technology
• Information
technology
Service
Operations
Basic processes
Suppliers
•
•
Purchasing
Communication
Transportation
• Testing
• Materials
• EDI
• Materials
handling
• Testing
•
•
Storage
Office
technology
handling
• Information
technology • Office
technology
• Information
technology
Service
Operations
Basic processes
• Testing
• Materials
Purchasing handling
• Communication • Office
Suppliers • Transportation technology
• EDI • Information
• Materials technology
handling
• Testing
• Storage
• Office
technology
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technology
Manufacturing Operations
Basic processes
• CIM (computer-
Service
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integrated
Basic processes
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Suppliers
•
•
Purchasing
Communicationmanufacturing)
Transportation
handling
• Office
technology
•
•
EDI
Materials
handling
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technology
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technology
• Information
technology
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Service
Operations
Basic processes
• Testing
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Purchasing handling
• Communication • Office
Suppliers • Transportation technology
• EDI • Information
• Materials technology
handling
• Testing
• Storage Manufacturing
• Office Operations
technology Basic processes
• Information • CIM (computer-
technology integrated
manufacturing)
• Materials
handling
• Office
technology
• Information
technology
• Materials
technology
• Testing
• Storage
Distribution
• Communication
Service
Operations
• Transportation
Basic processes
• Testing
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•
Purchasing
EDI
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• Communication • Office
Suppliers • Transportation technology
•
• EDI
Materials handling
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• Materials technology
handling
• Testing
•
•
Storage
Office
technology
• Packaging
Manufacturing
Operations
Basic processes
• Information
technology • Storage
• CIM (computer-
integrated
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• Office technology
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handling
• Office
• Information
technology
• Information
technology
technology
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technology
• Testing
• Storage
Service
Operations
Basic processes
• Testing
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Purchasing handling Distribution
• Communication • Office • Communication
Suppliers • Transportation technology • Transportation
• EDI • Information • EDI
• Materials technology • Materials
handling handling
• Testing • Packaging
• Storage Manufacturing • Storage
• Office Operations • Office
technology Basic processes technology
• Information • CIM (computer- • Information
technology integrated technology
manufacturing)
• Materials
handling
• Office
technology
• Information
technology
• Materials
technology
• Testing
• Storage
Marketing Service
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Suppliers
•
•
•
Communication
Purchasing
Communication
Transportation
• OfficeCustomers
handling
technology
•
•
Distribution
Communication
Transportation
• Media technology
• EDI • Information • EDI
• Materials technology • Materials
handling handling
•
• Testing • Packaging
•
• Electronic commerce
Storage
Office
technology
Manufacturing
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•
•
Storage
Office
technology
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Basic processes
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Information
technology
• CIM (computer-
integrated
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technology
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technology
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technology
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technology
• Testing
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• Communication • Office • Communication and Sales
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• EDI • Information • EDI • Media
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handling handling • Electronic
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• Storage Manufacturing • Storage • Testing
• Office Operations • Office • Office
technology Basic processes technology technology
• Information • CIM (computer- • Information • Information
technology integrated technology technology
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technology
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technology
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technology
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technology
Accounting • Electronic data
interchange (EDI)
• Information
technology
• Office technology
Operations • Electronic
commerce
• Planning and budgeting
technology
• Electronic data interchange
(EDI)
• Information technology
• Office technology
• Electronic commerce
Accounting
Operations
• Planning and budgeting
technology
• Electronic data interchange
(EDI)
• Information technology
• Office technology
• Electronic commerce
Accounting
Engineering
• Product technology
• Office technology
• Information technology
• Process technology
• Pilot-plant technology
• Computer-aided design (CAD)
• Planning and budgeting
technology
• Electronic data interchange
(EDI)
• Information technology
• Office technology
• Electronic commerce
Accounting
• Product
technology
• Office technology
• Information
Engineering technology
• Process
technology
• Pilot-plant
Operations technology
• Computer-aided
design (CAD)
• Planning and budgeting
technology
• Electronic data interchange
(EDI)
• Information technology
• Office technology
• Electronic commerce
Accounting
• Product
technology
• Office technology
• Information
Engineering technology
• Process
technology
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Operations technology
• Computer-aided
design (CAD)
• Telecommunications technology
• Office technology
• Information
Management Engineering technology
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Information technology
Systems • Pilot-plant
Operations technology
• Computer-aided
design (CAD)
ERP System
Data Analysis
• Product costing
• Job costs
ERP System
Data Analysis
• Product costing
• Job costs
• Field service
• Pricing system
• Quality
ERP System
Data Analysis
• Product costing
• Job costs
ERP System
Customer Service
• Field service
• Quality
Supply-Chain
Data Analysis
• Product costing
• Job costs
• Forecasting
• Pricing system
• Purchasing
ERP System
ERP System
Customer Service
• Field service
• Quality
Supply-Chain
Management
• Forecasting
• Purchasing
• Distribution
Accounting and Finance
Data Analysis
• Product costing
• Job costs
Supply-Chain
Management
• Forecasting
• Purchasing
• Distribution
Data Analysis
• Product costing
• Job costs
ERP System
Customer Service
• Field service
Accounting and Finance
• Quality
• Accounts payable and
receivable
• General ledgers Supply-Chain
• Asset management Management
• Forecasting
• Purchasing
• Distribution
Data Analysis
• Product costing
• Scheduling
Customer Service
• Field service
Accounting and Finance
• Quality
• Accounts payable and
receivable
• General ledgers Supply-Chain
• Asset management Management
• Forecasting
• Purchasing
• Distribution
Data Analysis
• Product costing
• Job costs
Manufacturing
• Material requirements ERP System
planning
• Scheduling
Customer Service
• Field service
Accounting and Finance
• Quality
• Accounts payable and
receivable
• General ledgers Supply-Chain
• Asset management Management
• Forecasting
• Purchasing
• Distribution
Data Analysis
• Product costing
Manufacturing
• Benefits
• Material requirements
planning
ERP System
• Scheduling
• Payroll
Customer Service
• Field service
Accounting and Finance
• Quality
• Accounts payable and
receivable
• General ledgers Supply-Chain
• Asset management Management
• Forecasting
• Purchasing
• Distribution
Data Analysis
Human • Product costing
Resources • Job costs
• Benefits
• Payroll Sales and Marketing
• Sales orders
• Pricing system
Manufacturing
• Material requirements ERP System
planning
• Scheduling
Customer Service
• Field service
Accounting and Finance
• Quality
• Accounts payable and
receivable
• General ledgers Supply-Chain
• Asset management Management
• Forecasting
• Purchasing
• Distribution
Back-Office Processes Front-Office Processes
Data Analysis
Human • Product costing
Resources • Job costs
• Benefits
• Payroll Sales and Marketing
• Sales orders
• Pricing system
Manufacturing
• Material requirements ERP System
planning
• Scheduling
Customer Service
• Field service
Accounting and Finance
• Quality
• Accounts payable and
receivable
• General ledgers Supply-Chain
• Asset management Management
• Forecasting
• Purchasing
• Distribution
ERP
Systems
325
326
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