14

Operations Planning and Scheduling g

PowerPoint Slides by Jeff Heyl
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall.

For Operations Management, Management 9e by Krajewski/Ritzman/Malhotra © 2010 Pearson Education
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Across the Organization
z Operations planning and scheduling is the process of making sure that demand and supply plans are in balance at all levels Sa es a and d ope operations at o s p planning a ga and d z Sales scheduling z Requires managerial inputs from all of the firm’s functions z Each function is affected by the plan

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

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

Resource plan Schedule

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Publishing as Prentice Hall. Inc. .Stages in Planning and Scheduling z Aggregation gg g ‹ Product families ‹ Workforce ‹ Time z The Th relationship l ti hi of f operations ti plans l and d schedules to other plans ‹A business plan annual plan or financial plan planning lowest p planning g level is scheduling g 14 – 4 ‹ An ‹ Resource ‹ The Copyright © 2010 Pearson Education.

Stages in Planning and Scheduling Figure 14. Publishing as Prentice Hall.1 – The Relationship of Sales and Operations Plans and Schedules to Other Plans Business or annual l plan l Operations strategy t t Sales and Operations Plan Forecasting Sales Plan Operations Plan Constraint management Resource Pl R Planning i (services) ( i ) • Workforce schedule • Materials and facility resources Resource Pl R Planning i (manufacturing) ( f t i ) • Master production schedule • Material requirements planning Scheduling • Employee schedules • Facility y schedules • Customer schedules Scheduling • Employee and equipment schedules • Production order schedules • Purchase order schedules Copyright © 2010 Pearson Education. Inc. 14 – 5 .

the process of changing demand patterns using one or more demand options Copyright © 2010 Pearson Education.Managing Demand z Matching supply with demand becomes challenging when forecasts call for uneven d demand d patterns tt z Demand management. 14 – 6 . Publishing as Prentice Hall. Inc.

14 – 7 . Publishing as Prentice Hall.Managing Demand | DEMAND AND SUPPLY OPTIONS FOR | OPERATIONS PLANNING AND SCHEDULING Demand Options Supply Options Complementary Anticipation inventory products Promotional pricing Workforce adjustment (hiring or layoffs) Prescheduled Workforce utilization (overtime and appointments undertime) Reservations Part-time workers and subcontractors Revenue management Vacation schedules Backlogs Workforce schedules Backorders Job and customer sequence q Stockouts Expediting TABLE 14.2 Copyright © 2010 Pearson Education. Inc.

Publishing as Prentice Hall. 14 – 8 .2 – Managerial Inputs from Functional Areas to Sales and Operations Plans Copyright © 2010 Pearson Education.Sales and Operations Plans Operations C rrent machine capacities Current Plans for future capacities Workforce capacities Current staffing level Distribution and marketing C stomer needs Customer Demand forecasts Competition behavior Materials Supplier capabilities Storage capacity Materials availability Aggregate plan Accounting and finance Cost data Financial condition of firm Engineering New products Product design changes Machine standards Human resources Labor-market conditions Training capacity Figure 14. Inc.

Sales and Operations Plans z Information inputs z Supply options ‹ ‹ ‹ ‹ ‹ ‹ Anticipation inventory Workforce adjustment Workforce utilization Part-time workers Subcontractors Vacation schedules z Planning strategies ‹ ‹ ‹ Chase strategy Level strategy Mi d strategy Mixed t t 14 – 9 Copyright © 2010 Pearson Education. Inc. . Publishing as Prentice Hall.

severance pay. insurance. potential cost of losing a customer Inventory holding Backorder and stockout Copyright © 2010 Pearson Education. pilferage and obsolescence. exit interviews. and retraining Capital. training programs. Inc. interviews.3 Cost Regular time Overtime Hiring and layoff | TYPES OF COSTS WITH SALES AND OPERATIONS PLANNING Definition Regular-time wages plus benefits and pay for vacations Wages paid for work beyond the normal workweek exclusive of fringe benefits Cost of advertising jobs. and taxes Costs to expedite past-due orders. 14 – 10 .Sales and Operations Plans z Constraints and costs z Six steps in the sales and operations planning process TABLE 14. Publishing as Prentice Hall. scrap caused by inexperienced employees. storage and warehousing.

Sales and Operations Plans Figure 14. Inc. Publishing as Prentice Hall. 14 – 11 .3 – Sales and Operations Plan for Make-to-Stock Product Family Copyright © 2010 Pearson Education.

Sales and Operations Plans Gather data 1 Demand planning 2 Update S&OP spreadsheets 3 Finalize and communicate 6 Executive S&OP meeting 5 Consensus meeting 4 Copyright © 2010 Pearson Education. Inc. 14 – 12 . Publishing as Prentice Hall.

14 – 13 .4 – Manufacturer’s Plan Using a Spreadsheet and Mixed Strategy Copyright © 2010 Pearson Education. Publishing as Prentice Hall.Using Spreadsheets Figure 14. Inc.

14 – 14 . Inc.Using Chase and Level Strategies EXAMPLE 14. each worker’s day is shortened during slack periods and overtime can be used during peak periods 1 Forecasted demand 6 2 12 3 18 4 15 5 13 6 14 Total 78 Copyright © 2010 Pearson Education. Publishing as Prentice Hall.1 A large distribution center must develop a staffing plan that minimizes total costs using part-time stockpickers First level strategy that meets demand with the minimum use of undertime and not consider vacation scheduling Each part-time employee can work a maximum of 20 hours per week on regular time Instead of paying undertime.

d. Publishing as Prentice Hall.000 per person $500 per person 14 – 15 . Inc.Using Chase and Level Strategies Currently.000/time $2 000/time period at 20 hrs/week 150% of the regular-time rate $1. No backorders are permitted. c. The following costs can be assigned: Regular-time wage rate Overtime wages Hires Layoffs Copyright © 2010 Pearson Education. 10 part-time clerks are employed.20(20) = 24 hours per week. Constraints and cost information are as follows: a. The size of training facilities limits the number of new hires in any period to no more than 10. b. The most that any part-time employee can work is 1. $2. They have not been subtracted from the forecasted demand shown. Overtime cannot exceed 20 percent of the regular-time capacity in any period.

6 However.500. However many employees. The workforce level row is identical to the forecasted demand row. The total cost is $173. Chase Strategy This strategy simply involves adjusting the workforce as needed to meet demand. 14 – 16 .Using Chase and Level Strategies SOLUTION a. Copyright © 2010 Pearson Education. 14 5 Rows in the spreadsheet that do not apply (such as inventory and vacations) are hidden. which add $17.5. row A large number of hirings and layoffs begin with laying off 4 part-time employees immediately because the current staff is 10 and the staff level required in period 1 is only 6. and most of the cost increase comes from frequent hiring and layoffs. prefer part-time work.500 to the cost of utilized regular-time regular time costs. employees such as college students. Inc. Publishing as Prentice Hall. demand as shown in Figure 14.

Using Chase and Level Strategies Figure 14.5 – Spreadsheet for Chase Strategy Copyright © 2010 Pearson Education. Inc. Publishing as Prentice Hall. 14 – 17 .

For this particular level strategy (other workforce options are possible).Using Chase and Level Strategies b. the maximum use of overtime possible must occur in the peak period.6. The total cost ti is $164. Inc. so 1. Level Strategy In order to minimize undertime. w. 14 – 18 . Publishing as Prentice Hall.20w = 18 employees required in peak period (period 3) w= 18 = 15 employees 1. Because the staff already includes 10 part-time employees. The complete plan is shown in Figure 14.20 A 15-employee staff size minimizes the amount of undertime for this level strategy. $164 000 Copyright © 2010 Pearson Education. the manager should immediately hire 5 more.000. the most overtime that the manager can use is 20 percent of the regulartime capacity.

6 – Spreadsheet for Level Strategy Copyright © 2010 Pearson Education. Inc.Using Chase and Level Strategies Figure 14. 14 – 19 . Publishing as Prentice Hall.

19. and 9. Inc.000. Payroll costs are $6. must submit a staffing plan for the next year based on a set schedule h d l for f repairs i and d on the th city it budget. Subcontracting is not permitted. with an overtime pay rate of $18 for each overtime hour. unused d regular l time i is i paid id at $12 per hour.000. 14 – 20 . and the cost of laying off a worker is $2. Publishing as Prentice Hall.240 in wages per worker for regular time worked up to 520 hours. b d t Kramer K estimates ti t that the labor hours required for the next four quarters are 6. 12. h The Th cost of f hiring a worker is $3.000. respectively.000.1 The Barberton Municipal Division of Road Maintenance is charged with road repair in the city of Barberton and surrounding area.000. 14.Application 14. Cindy Kramer.000. Each of the 11 workers on the workforce can contribute 520 hours per quarter. quarter Overtime is limited to 20 percent of the regular-time capacity in any quarter. Copyright © 2010 Pearson Education. Although unused overtime capacity has no cost. road maintenance director.

14.1 Use a chase strategy for the Barberton Municipal Division that varies the workforce level without using overtime. except because the quarterly requirements are not integer multiples of 520 hours.Application 14. Publishing as Prentice Hall. Inc. 14 – 21 . (Students complete highlighted sections) Copyright © 2010 Pearson Education. Undertime p for the minimal amount mandated should be minimized.

000 12 240 0 6. Publishing as Prentice Hall.000 13 0 4 9 000 9. Inc. 14 – 22 .320 0 46.000 18 360 0 9.000 1 0 2 12 000 12. 14.000 24 480 0 12.000 91 1.1 Quarter Forecasted F t d demand (hrs) Workforce level (workers) Undertime (hours) Overtime (hours) Utilized time (hours) Hires (workers) Layoffs (workers) 1 6 000 6.Application 14.000 26 19 Copyright © 2010 Pearson Education.000 0 19 Total 46 000 46.000 37 240 0 19.000 12 0 3 19 000 19.

000 Copyright © 2010 Pearson Education.320 0 0 38.760 0 36 000 36.1 What is the total cost of this plan? Costs per Quarter 1 Utilized time Undertime Overtime Hires Layoffs 2.000 0 2 5. 14 – 23 .000 4. Inc.880 0 39 000 39. 14.000 38.840 $72.Application 14.000 0 3 $228.000 2.000 0 4 $108.000 $683.000 15.840 0 78 000 78.000 Total Cost Total $552.880 0 3 000 3.000 $144. Publishing as Prentice Hall.

Publishing as Prentice Hall.2 Find a level plan for the Barberton Municipal Division that allows no delay in road repair and minimizes undertime. Inc. 14 – 24 .45 or 31 employees Copyright © 2010 Pearson Education.20w = 19.Application 14.54 employee employee-period period equivalents 520 w = 30. 3 we get: t 1. Overtime can be used to its limits in any quarter. 14. Given that the d demand d peaks k in i quarter t 3.000 = 36.

000 31 7.120 0 6.120 0 12.000 124 21.000 31 4.880 43. Inc.000 31 0 2.120 20 0 Copyright © 2010 Pearson Education.000 20 0 2 12.120 0 0 4 9.120 0 9. 14 – 25 .000 31 10.000 0 0 3 19.880 16. 14.000 0 0 Total 46.Application 14. Publishing as Prentice Hall.360 2.2 Q Quarter t 1 Forecasted demand (hrs) Workforce level (workers) Undertime (hours) Overtime (hours) Utilized time (hours) Hires (workers) Layoffs (workers) 6.

440 256.840 60.000 0 Costs per Quarter 2 3 $144.440 0 60. 14.840 0 0 4 $108.600 Copyright © 2010 Pearson Education.Application 14.320 51.440 0 51.000 0 $885 600 $885.440 0 0 0 $193. 14 – 26 .000 121. Inc.440 0 0 0 Total Cost Total $517.000 49. Publishing as Prentice Hall.000 85.2 What is the total cost of this level workforce plan? 1 Utilized time Undertime Overtime Hires Layoffs $72.

14 – 27 . but find a way to decrease the cost of hiring and layoffs by selectively using (Students complete p highlighted g g sections) ) some overtime. 14.3 A mixed strategy considers and implements a fuller range of reactive alternatives than any one “pure” strategy. ( Copyright © 2010 Pearson Education.Application 14. Inc. Publishing as Prentice Hall. Use the chase strategy as a base. Now propose a plan of your own for the Barberton Municipal Division.

Publishing as Prentice Hall. Inc.000 24 480 0 12.080 2.000 12 0 3 19. The key idea in creating this one is hiring only 7 employees in quarter 3. down from 19.000 18 360 0 9. while using overtime to its maximum limit and eliminating undertime for that quarter.000 85 1.000 1 0 2 12.3 Quarter 1 Forecasted demand W kf Workforce l level l Undertime (hours) Overtime (hours) Utilized time (hours) Hires (workers) Layoffs (workers) 6.120 7 0 4 9. Copyright © 2010 Pearson Education.000 0 13 Total 46.880 43.000 12 240 0 6.Application 14.120 20 13 Several solutions are possible possible. 14. Hiring fewer in quarter 3 allows the number of layoffs in quarter 4 to drop to only 13. 14 – 28 .000 31 0 2.880 16.

000 26.840 60. 14 – 29 .000 0 4 $108.000 0 $193.760 0 36.000 0 Costs per Quarter 2 3 $144.000 5.000 4.440 0 51.000 2. 14.000 Total Cost Total $517.240 Copyright © 2010 Pearson Education.840 21. Inc.440 12.000 $668 240 $668. Publishing as Prentice Hall.Application 14.320 0 0 26.960 51.880 0 3.3 What is the cost of your mixed strategy plan? 1 Utilized time Undertime Overtime Hires Layoffs $72.

resource availability from the sales and operations plan. 14 – 30 . Generates a work schedule for employees or sequences of jobs or customers at workstations. Copyright © 2010 Pearson Education. Publishing as Prentice Hall.Scheduling z Takes operations and scheduling process from planning to execution and requires gathering data from sources such as demand forecasts. and specific ifi constraints t i t from f employees l and d customers. Inc.

Publishing as Prentice Hall. Inc. 14 – 31 .Gantt Charts z The job or activity progress chart z The workstation chart C Current td date t Job 4/17 4/18 4/19 4/20 4/21 4/22 4/23 4/24 4/25 4/26 Start activity Finish activity Scheduled activity time Ford Nissan Actual progress Nonproductive N d ti time Pontiac Figure 14.7 – Gantt Progress Chart for an Auto Parts Company Copyright © 2010 Pearson Education.

Gantt Charts Time Workstation 12 7am 8am 9am 10am 11am pm Dr. Jordanne Flowers Dr.8 – Gantt Workstation Chart for Operating Rooms at a Hospital Copyright © 2010 Pearson Education. Madeline Easton Operating Room C Dr. Inc. Jeff Dow Dr. Jon Adams 1pm 2pm 3pm 4pm 5pm 6pm Operating Room A Dr. Dan Gillespie Figure 14. 14 – 32 . Gary Case Dr. Alaina Bright Operating Room B Dr. Publishing as Prentice Hall. Aubrey Brothers Dr.

14 – 33 . Publishing as Prentice Hall. Inc.Scheduling Employees z Translate the staffing plan into specific schedules of work for each employee z Constraints ‹ ‹ ‹ Technical constraints L Legal l and d behavioral b h i l considerations id ti Psychological needs of workers z Rotating schedule z Fixed schedule Copyright © 2010 Pearson Education.

Scheduling Employees z Steps in developing a workforce schedule Step 1: Find all the pairs of consecutive days Step 2: If a tie occurs occurs. choose one of the tied pairs. consistent with the provisions written into the labor agreement Step 3: Assign the employees for the selected pair of days off Step 4: Repeat steps 1 – 3 until all of the requirements have been satisfied Copyright © 2010 Pearson Education. Publishing as Prentice Hall. 14 – 34 . Inc.

The schedule of requirements is Day Required number of employees M 6 T 4 W 8 Th 9 F 10 S 3 Su 2 The manager needs a workforce schedule that provides two consecutive days off and minimizes the amount of total slack capacity. Copyright © 2010 Pearson Education. she selects one of the tied pairs arbitrarily. Inc.2 The Amalgamated Parcel Service is open seven days a week. the scheduler gives preference to Saturday and Sunday if it is one of the tied pairs. If not. Publishing as Prentice Hall. To break ties in the selection of off days. 14 – 35 .Developing a Workforce Schedule EXAMPLE 14.

These updated requirements are the ones the scheduler uses for the next employee. Employee 1 is scheduled to work Monday through Friday. The day-off ff assignments f for the employees are shown in the following table. 14 – 36 . Note that Friday still has the maximum requirements and that the requirements for the S – Su pair are carried forward because these are Employee 1 1’s s days off off.Developing a Workforce Schedule SOLUTION Friday contains the maximum requirements. Inc. and the pair S – Su has the lowest total requirements. Copyright © 2010 Pearson Education. Therefore. Publishing as Prentice Hall.

Four pairs have the minimum requirement and the lowest total total. Inc. Assign Employee 10 to a M-F schedule. Assign Employee 1 to a M-F schedule. Assign Employee 6 to a W-Su W Su schedule. h d l The S–Su pair has the lowest total requirements. Assign Employee 5 to a M-F schedule. h d l The S–Su pair has the lowest total requirements. Assign E l Employee 4 to t a W-Su W S schedule. Arbitrarily choose the Su–M pair to break ties because the S–Su pair does not have the lowest total requirements. Assign Employee 8 to a M-F schedule. schedule The S–Su pair has the lowest total requirements. Publishing as Prentice Hall. The M–T pair has the lowest total requirements. Choose the S–Su pair according to the tie-breaking rule. Assign E l Employee 2 to t a M-F M F schedule. 14 – 37 0 0 0 1 2 1 0 9 0 0 0 0 1 0 0 10 Copyright © 2010 Pearson Education. Assign Employee 3 to a M-F schedule. The S–Su pair has the lowest total requirements. Choose the S S–Su Su pair according to the tietie breaking rule. . Assign Employee 9 to a T-S schedule. Assign Employee 7 to a M-F schedule.Developing a Workforce Schedule Scheduling Days Off M 6 5 4 3 3 2 2 1 T 4 3 2 1 1 0 0 0 W 8 7 6 5 4 3 2 1 Th 9 8 7 6 5 4 3 2 F 10 9 8 7 6 5 4 3 S 3 3 3 3 2 2 1 1 Su 2 2 2 2 1 1 0 0 Employee 1 2 3 4 5 6 7 8 Comments The S–Su pair has the lowest total requirements. The M–T pair has the lowest total requirements.

Assign Employee 8 to a M-F schedule. Assign E l Employee 4 to t a W-Su W S schedule. Choose the S–Su pair according to the tie-breaking rule. The S–Su pair has the lowest total requirements. Assign E l Employee 2 to t a M-F M F schedule. schedule The S–Su pair has the lowest total requirements. The M–T pair has the lowest total requirements. Assign Employee 1 to a M-F schedule. Choose the S S–Su Su pair according to the tietie breaking rule.Developing a Workforce Schedule Scheduling Days Off M 6 5 4 3 3 2 2 1 T 4 3 2 1 1 0 0 0 W 8 7 6 5 4 3 2 1 Th 9 8 7 6 5 4 3 2 F 10 9 8 7 6 5 4 3 S 3 3 3 3 2 2 1 1 Su 2 2 2 2 1 1 0 0 Employee 1 2 3 4 5 6 7 8 Comments The S–Su pair has the lowest total requirements. Assign Employee 9 to a T-S schedule. h d l The S–Su pair has the lowest total requirements. Assign Employee 10 to a M-F schedule. . Inc. Assign Employee 5 to a M-F schedule. Arbitrarily choose the Su–M pair to break ties because the S–Su pair does not have the lowest total requirements. h d l The S–Su pair has the lowest total requirements. The M–T pair has the lowest total requirements. Assign Employee 6 to a W-Su W Su schedule. Assign Employee 3 to a M-F schedule. Four pairs have the minimum requirement and the lowest total total. Assign Employee 7 to a M-F schedule. 14 – 38 0 0 0 1 2 1 0 9 0 0 0 0 1 0 0 10 Copyright © 2010 Pearson Education. Publishing as Prentice Hall.

Friday always has the maximum requirements and should be avoided as a day off. . R Slack. Inc. Publishing as Prentice Hall. Final Schedule Employee 1 2 3 4 5 6 7 8 9 10 Capacity.Developing a Workforce Schedule In this example. C – R M X X X off X off X X off X 7 6 1 T X X X off X off X X X X 8 4 4 W X X X X X X X X X X 10 8 2 Th X X X X X X X X X X 10 9 1 F X X X X X X X X X X 10 10 0 S off off off X off X off off X off 3 3 0 Su off off off X off X off off off off 2 2 0 50 42 8 14 – 39 Total Copyright © 2010 Pearson Education. C Requirements. off The final schedule for the employees is shown in the following table.

Inc. first-served (FCFS) Earliest due date (EDD) z Performance measures ‹ Flow time Flow time = Finish time + Time since job arrived at workstation ‹ Past due (also referred to as tardiness) Copyright © 2010 Pearson Education. 14 – 40 . Publishing as Prentice Hall.Sequencing Jobs at a Workstation z Priority sequencing rules ‹ ‹ First-come.

14 – 41 . and calculate the average days past due and flow time. Customer A B C D E Time Since Order Arrived (days ago) 15 12 5 10 0 Processing Time (days) 25 16 14 10 12 Due Date (days from now) 29 27 68 48 80 Copyright © 2010 Pearson Education.Using the FCFS Rule EXAMPLE 14. Inc. processing time. Publishing as Prentice Hall. if average g flow time is the most critical? improved.3 Currently a consulting company has five jobs in its backlog. The time since the order was placed. Determine the schedule by using the FCFS rule. and promised due dates are given in the following table. How can the schedule be p .

because that order arrived earliest—15 days ago. along with the days past due and flow times. Customer Sequence A B C D E Start Time (days) Processing Time (days) Finish Time (days) Due Date Days Past Due Days Ago Since Order Arrived Flow Time (days) Copyright © 2010 Pearson Education. The sequence is shown in the following table. so it is processed last.Using the FCFS Rule SOLUTION a. Publishing as Prentice Hall. The FCFS rule states that Customer A should be the first one in the sequence. 14 – 42 . Inc. Customer E’s E s order arrived today.

Using the FCFS Rule SOLUTION a. Inc. because that order arrived earliest—15 days ago. 14 – 43 . The FCFS rule states that Customer A should be the first one in the sequence. Customer Sequence A B C D E Start Time (days) 0 25 41 51 65 + + + + + Processing Time (days) 25 16 10 14 12 = = = = = Finish Time (days) 25 41 51 65 77 Due Date 29 27 48 68 80 Days Past Due 0 14 3 0 0 Days Ago Since Order Arrived 15 12 10 5 0 Flow Time (days) 40 53 61 70 77 Copyright © 2010 Pearson Education. Customer E’s E s order arrived today. along with the days past due and flow times. so it is processed last. The sequence is shown in the following table. Publishing as Prentice Hall.

4 days 5 Average flow time = 40 + 53 + 61 + 70 + 77 = 60. The days past due for a job is zero (0) if it d its due d date t i is equal l to t or exceeds d the th finish fi i h time. Publishing as Prentice Hall. Its finish time becomes the start time for the next job in the sequence. Inc.2 days 5 Copyright © 2010 Pearson Education. assuming that the next job is available for immediate processing. ti Otherwise Oth i it equals the shortfall. 14 – 44 .Using the FCFS Rule The finish time for a job is its start time plus the processing time. The days past due and average flow time performance measures for the FCFS schedule are Average days past due = 0 + 14 + 3 + 0 + 0 = 3. The flow time for each job equals its finish time plus the number of days ago since the order first arrived at the workstation workstation.

t bl Customer Sequence D E C B A Start Time (days) Processing Time (days) Finish Time (days) Due Date Days Past Due Days Ago Since Order Arrived Flow Time (days) Copyright © 2010 Pearson Education. One possibility is the sequence shown h in i the th following f ll i table.Using the FCFS Rule b. 14 – 45 . Inc. Publishing as Prentice Hall. The average flow time can be reduced.

One possibility is the sequence shown h in i the th following f ll i table. Publishing as Prentice Hall. However. Inc.Using the FCFS Rule b.8 days 5 Average days past due = This schedule reduces the average flow time from to 60.6 days 5 20 + 22 + 41 + 64 + 92 Average flow time = = 47. Copyright © 2010 Pearson Education. 14 – 46 .8 days—a 21 percent improvement. the past due times for jobs A and B have increased. t bl Customer Sequence D E C B A Start Time (days) 0 10 22 36 52 5 + + + + + Processing Time (days) 10 12 14 16 25 5 = = = = = Finish Time (days) 10 22 36 52 77 Due Date 48 80 68 27 29 9 Days Past Due 0 0 0 25 48 8 Days Ago Since Order Arrived 10 0 5 12 15 5 Flow Time (days) 20 22 41 64 92 9 0 + 0 + 0 + 25 + 48 = 14. The average flow time can be reduced.2 to 47.

Publishing as Prentice Hall. Inc.Software Support z Computerized scheduling systems are available to cope with the complexity of workforce scheduling z Software is also available for sequencing jobs at workstations z Advance planning and scheduling (APS) systems t Copyright © 2010 Pearson Education. 14 – 47 .

Application 14. 14.4
Revisit Example 14.3, where the consulting company has five jobs in its backlog. Create a schedule using the EDD rule, calculating the average days past due and flow time. In this case, does EDD outperform the FCFS rule? SOLUTION
Customer Sequence B A D C E Start Time (days) 0 16 41 51 65 + + + + + Processing Time (days) 16 25 10 14 12 = = = = = Finish Time (days) 16 41 51 65 77 Due Date 27 29 48 68 80 Days Past Due 0 12 3 0 0 Days Ago Since Order Arrived 12 15 10 5 0 Flow Time (days) 28 56 61 70 77

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Application 14. 14.4
Customer Sequence q B A D C E Start Time (days) 0 16 41 51 65 + + + + + Processing Time ( (days) y ) 16 25 10 14 12 = = = = = Finish Time (days) 16 41 51 65 77 Due Date 27 29 48 68 80 Days Past Due 0 12 3 0 0 Days Ago Since Order Arrived 12 15 10 5 0 Flow Time (days) 28 56 61 70 77

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

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

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C tl 40 employees work for Cranston in this capacity. and outfitting a new employee costs $8 000 Layoff $8. No delays in service. Copyright © 2010 Pearson Education. training. The overtime pay rate is $15 per hour over 600 hours. gy plan. Prepare a chase strategy using only hiring and layoffs. c. or backorders. Hiring.000 per employee per period for any time worked up to 600 hours (including undertime). Maximize the use of overtime o ertime d during ring the peak period so as to minimi minimize e the workforce level and amount of undertime. 14 – 51 . l Currently. relaying only on overtime and undertime. Compare the total costs of the three plans. Propose an effective mixed-strategy d. What are the total numbers of employees hired and laid off? b.000 $2 000 per employee. Use the spreadsheet approach to answer the following questions: a.Solved Problem 1 Cranston pays regular-time wages of $6.000. Inc. Publishing as Prentice Hall. Develop a workforce plan that uses the level strategy. L ff costs t are $2. are allowed.

The chase strategy workforce is calculated by dividing the demand for each period by 600 hours.9 h the th “chase strategy” solution that OM Explorer’s Sales and Operations Planning with Spreadsheets solver produces. Inc. This strategy calls for a total of 20 workers to be hired and 40 to b laid be l id off ff during d i the th four-period f i d plan. Copyright © 2010 Pearson Education. l Figure Fi 14 9 shows 14. Publishing as Prentice Hall. We simply hide any unneeded columns and rows in this generalgeneral purpose solver. 14 – 52 .Solved Problem 1 a. or the amount or regular-time work for one employee during one period.

Solved Problem 1 Figure 14. 14 – 53 . Inc.9 – Spreadsheet for Chase Strategy Copyright © 2010 Pearson Education. Publishing as Prentice Hall.

Inc. the workforce level of the level strategy that minimizes undertime is 30. the demand of 21. equivalents. As each employee can work 700 hours per period (600 on regular time and 100 on overtime).000/700 = 42. Publishing as Prentice Hall. The peak demand is 30. 600 For example.000 hours in period 3.86.Solved Problem 1 b.000/600).10 shows OM Explorer’s spreadsheet for this level strategy that minimizes undertime. Copyright © 2010 Pearson Education. Figure 14. To convert the demand requirements into employee-period equivalents divide the demand in hours by 600. 14 – 54 .000 hours in period 1 translates into 35 employee-period equivalents (21. or 43 employees. l This Thi strategy t t calls ll for f three th employees l to t be b hired in the first quarter and for none to be laid off.000/600) and demand in period 3 translates into 50 employee-period employee period equivalents (30.

Solved Problem 1 Figure 14.10 – Spreadsheet for Level Strategy Copyright © 2010 Pearson Education. 14 – 55 . Inc. Publishing as Prentice Hall.

Solved Problem 1 c. Publishing as Prentice Hall. and overtime to reduce total costs. and reduced b 13 in by i the th fourth f th period. The workforce is reduced by 5 at the beginning of the first period. layoffs.11 h the th results. Inc. increased by 8 in the third period. The mixed-strategy plan that we propose uses a combination of hires. 14 – 56 . lt Copyright © 2010 Pearson Education. i d Figure Fi 14 11 shows 14.

Inc.Solved Problem 1 Figure 14.11 – Spreadsheet for Mixed Strategy Copyright © 2010 Pearson Education. 14 – 57 . Publishing as Prentice Hall.

The mixed-strategy gy p plan was developed by trial and error and results in a total cost of $1.000.021. . Th total t t l cost t of f the th chase h strategy t t is i $1. $ .119. Publishing as Prentice Hall.Solved Problem 1 d The d.050.000. Further improvements are possible. possible Copyright © 2010 Pearson Education.000. $1 050 000 The level strategy results in a total cost of $1. 14 – 58 . Inc.

has been analyzing the efficiency and productivity of store operations recently. Bulger decided to observe the need for checkout clerks on the fi t shift first hift for f a one-month th period. i d At th the end d of f the th month. 14 – 59 . Fred Bulger. His results showed peak needs on Saturdays and Sundays. th he h calculated the average number of checkout registers that should be open during the first shift each day.Solved Problem 2 The Food Bin grocery store operates 24 hours per day. Sundays Day Number of Clerks Required M 3 T 4 W 5 Th 5 F 4 S 7 S Su 8 Copyright © 2010 Pearson Education. Publishing as Prentice Hall. the store manager. Inc. 7 days per week.

Publishing as Prentice Hall. How many clerks are needed? Assume that the clerks have no preference regarding p g g which days y they y have off. 14 – 60 . b. and on what days? Copyright © 2010 Pearson Education. Inc.Solved Problem 2 Bulger now has to come up with a workforce schedule that guarantees each checkout clerk two consecutive days off but still covers all requirements. How much idle time will result from this schedule schedule. Develop a workforce schedule that covers all requirements while giving two consecutive days off to each clerk. a. Plans can be made to use the clerks for other duties if slack or idle time resulting from this schedule can be determined.

Inc. Day M Requirements Clerk 1 R Requirements i t Clerk 2 Requirements Clerk 3 Requirements Clerk 4 3 off 3 off 3 X 2 X T 4 off 4 off 4 X 3 X W 5 X 4 X 3 X 2 X Th 5 X 4 X 3 off 3 off F 4 X 3 X 2 off 2 off S 7 X 6 X 5 X 4 X Su 8 X 7 X 6 X 5 X Copyright © 2010 Pearson Education. We use the method demonstrated in Example 14. The minimum number of clerks is eight.2 to determine the number of clerks needed. 14 – 61 .Solved Problem 2 SOLUTION a. Publishing as Prentice Hall.

Copyright © 2010 Pearson Education. 14 – 62 .Solved Problem 2 Day M Requirements Clerk 5 Requirements Clerk 6 Requirements Clerk 7 R Requirements i t Clerk 8 Requirements 1 X 0 off 0 X 0 X 0 T 2 off 2 off 2 X 1 X 0 W 1 off 1 X 0 off 0 X 0 Th 3 X 2 X 1 off 1 X 0 F 2 X 1 X 0 X 0 off 0 S 3 X 2 X 1 X 0 off 0 Su 4 X 3 X 2 X 1 X 0 The minimum number of clerks is eight. Inc. Publishing as Prentice Hall.

14 – 63 . Publishing as Prentice Hall.Copyright © 2010 Pearson Education. Inc.