Source: Chapman, Fundamentals of Production Planning and Control

Production Activity Control

shop floor control
Concerned with controlling the
actual activity of making a product
or delivering a service.

PAC
Planning has already been done and the
actual order to produce a product has
been executed.

Deals with controlling the priority of the

jobs at a work center
Execution control activity.
Monitor, prioritize and control.

PAC inputs:
Newly released orders (MRP)
Existing order status
Routing information steps, sequence
needed to complete the job
Lead time information
Status of resources (quantity available,
maintenance schedules, machine
problems, etc.)

PAC inputs cont.

Resources number, type, conditions
People number, skills, time availability
Tools equipment for setup or operation of
the machinery
Machine or equipment capacity and downtime
Materials needed to complete the order

Information generated by PAC:

Status and location of orders

Status of critical resources
Performance to standards
Scrap / rework
Problems (unscheduled downtime, broken
equipment, etc.)

Need for PAC

Process industries and repetitive assembly
lines with a high volume standard product
dont use detailed PAC systems. Only
need to monitor the quantity as it is
produced.
Industries with smaller quantities of
discrete jobs, often use dispatch lists.

 Dispatch list = list of jobs to be performed

at a given work center in the order in
which the jobs should be done.
Includes information:
Scheduled run date, setup and run time
Equipment to be used and specific operation
Lot sizes
Estimates of capacity available
Next work center (where to move the job)
Jobs expected to be received at the WC in
some specified time period (future jobs)

 The dispatch list is followed by a report to

the PAC system with information on:
Part number and quantity produced
Any problems (scrap, quality, shortages)
Workforce data
Equipment status
Comments, suggestions

PAC and Gantt charts

Gantt chart = simple visual tool used to
schedule work according to priority and to
assess the status of all jobs ordered.
Used to reprioritize jobs if needed.
Shows work to be done, expectation of
time required, start and end dates, and job
status.
Done for each work center or specific
machine.

Prioritizing work
Practice exercise data
Suppose the
following jobs
have arrived
at a WC in the
order listed:

JOB

Due in

Hrs. work
remaining

3 hrs.

9 hrs.

4 hrs.

15 hrs.

11 hrs.

3.5

19 hrs.

Prioritizing Work methods

1. Due date = Job with earliest due date is
done first. Often used with MRP planning.

Due date
job

Due in

Work
remaining

Start time

Completion
time

Late?

3 hrs.

4 hrs.

Yes

4 hrs.

1 hr.

Yes

9 hrs.

2 hrs.

No

11 hrs. 3.5 hrs.

10.5

No

15 hrs.

5 hrs.

10.5

15.5

Yes

19 hrs.

4 hrs.

15.5

19.5

Yes

 2. SPT Shortest processing time = quick

jobs are done first.
A lot of jobs are completed quickly.
Leaves long jobs for last and sometimes
makes them late. (customer service and
big orders)

Shortest processing time

Job

Due in

Work
remaining

Start time

Completion
time

Late?

4 hrs.

1 hr.

No

9 hrs

2 hrs.

No

11 hrs 3.5 hrs.

6.5

No

3 hrs.

4 hrs.*

6.5

10.5

Yes

19 hrs. 4 hrs.*

10.5

14.5

No

15 hrs.

14.5

19.5

yes

5 hrs.

 3. Total slack:
Total time until the job is due
-Total processing time____
Total slack
Slack = buffer time, time that can pass
without danger of the job being late.
Work first the jobs with the least total slack
(greatest danger of being late)

Total slack
Job

Due in

Work
remaining

Slack

Start time

Completion
time

3 hrs.

4 hrs.

-1 hr.

4 hrs.

1 hr.

3 hrs.

11 hrs.

3.5 hrs.

6.5 hrs.

8.5

9 hrs.

2 hrs.

7 hrs.

8.5

10.5

15 hrs.

5 hrs.

10 hrs.

10.5

15.5

19 hrs.

4 hrs.

15 hrs.

15.5

19.5

 4. Slack per operation:

Total slack / number of operations left
Work first the job with the least slack per
operation
Gives average slack at each operation
instead of total slack for the entire job.

Job Due in

Slack # operations Slack per

operation

Work
remaining

3 hrs.

-1

-.33

4 hrs.

9 hrs.

.77

2 hrs.

4 hrs.

.75

1 hrs.

15 hrs.

10

15

.66

5 hrs.

11 hrs.

6.5

11

.59

3.5 hrs.

19 hrs.

15

19

.79

4 hrs.

Job

Due in

Slack per
operation

Work
remaining

Start

Completion Late?

3 hrs.

-.33

4 hrs.

11 hrs.

.59

3.5 hrs.

7.5

15 hrs.

.66

5 hrs.

7.5

12.5

4 hrs.

.75

1 hrs.

12.5

13.5

9 hrs.

.77

2 hrs.

13.5

15.5

19 hrs.

.79

4 hrs.

15.5

19.5

 5. First come, first served

Assumes that the first job is also needed
first (doctors office)
Perceived as fair.
Really?

 6. Critical ratio:
Time remaining until due / work remaining
Work remaining = total processing time
If critical ratio is greater than 1 : there is slack
If critical ratio = 1 : there is no slack
If critical ratio is less than 1 : past due, late

rule: work first job with lowest critical ratio

Considered best rule

Critical ratio
Job

Due in

Work
remaining

Ratio

Start time Completion

time

Late?

3 hrs.

4 hrs.

.75

Yes

15 hrs.

5 hrs.

No

11 hrs.

3.5 hrs.

3.14

12.5

Yes

4 hrs.

1 hr.

12.5

13.5

Yes

9 hrs.

2 hrs.

4.5

13.5

15.5

Yes

19 hrs.

4 hrs.

4.75

15.5

19.5

Yes

 These scheduling rules apply in production

environments where integrated production
control systems are not used (smaller job
shop environments).

Integrated approaches (MRP) provide their

own scheduling priorities.

Scheduling: estimation of when a job will reach a

work center and when the job will be completed.

Two approaches:
1. backward scheduling : start with the due
date (promised date) and use lead time
to estimate when job will reach each
center. (MRP)
2. Forward scheduling: start when the job
will be released into the production
process. Estimate final completion date
and this becomes the promise date.

Example data
It is now the start of day 214, and there is
one shift in the operation with 7 productive
hours. The job calls for a quantity of 100
to be built:

Day 214; 7 work hours; 100 units

Operation

Total lead time for 100 u.

21 Hours

14 hours

35 hours

7 hours

10.5 hours

3.5 hours

Forward scheduling
Operation Lead time Completed
hours
A
21
End of day 216 (3 shifts:
214,215,216)
B
14
End of day 218
C

35

End of day 223

End of day 224

10.5

Half through day 226

3.5

End of day 226

 This implies that we can deliver the

product on day 227.
Lead time includes setup, run, queue and
move time.
queue time = time a job must wait to be
processed once it has been moved to the
operation. Largest and most variable of all
the elements of lead time.

Backward scheduling
Suppose the
salesperson
has promised
the job for
delivery on day
240 using a
standard quoted
lead time.
Job must be
finished on
day 239.

Operation; Must be
Lead time completed
by:

Must start
by:

F; 3.5 hrs.

End of 239

Mid-day 239

E; 10.5 hrs.

Mid-day 239

Start of 238

D; 7 hrs.

End of 237

Start of 237

C; 35 hrs.

End of 236

Start of 232

B; 14 hrs.

End of 231

Start of 230

A; 21 hrs.

End of 229

Start of 227

Loading
Work center load: total time estimate to complete
all the jobs at a given work center. Measured in
time units (hours). Two approaches:
1. Infinite loading: jobs are loaded according to
when the customer needs them, regardless of
capacity.
Assume the work center has infinite capacity.
Need for capacity expanding alternatives
(overtime, temporary workers).

Loading
2. Finite loading: known measurable finite capacity
for the work center.
Work is moved to the next time period if there is no
more capacity in the given period.
Advantages:
Smoothing the load
Save on extra expenses
Stability of the work center
Disadvantages:
Customer service

Methods for loading a work center

1. Vertical loading: jobs are loaded into the
center job by job according to a priority
rule (due date, critical ratio, etc.).
Focus is the work center, with the job
loaded work center by work center, one
job at a time.

Methods for loading a work center

2. Horizontal loading: the highest priority job
is loaded work center by work center into
all the work centers required. Then do the
same for the next jobs.
Used in the finite scheduling system.
Focus is on the job.

Loading example:

A work center (X) has the following jobs,

which are listed in the order in which they
arrived at the work center.
The work center uses due date with first
come, first serve to break any ties.
The current day is the start of day 137, and
there are 7 productive hours in a day
(420 minutes).

Job
(arrival
order)

Quantity Due day Setup time Standard per

(min.)
piece (min.)

130

136

10

1.5

100

137

30

1.8

50

137

10

0.6

200

138

25

0.8

120

138

15

1.1

100

138

20

1.3

Vertical loading and infinite

capacity
Need to first determine the time it should
take to complete each job at standard.
See next table

Job; Q Time std. X Q

Setup time

Total time

A; 130

130x1.5=195 min.

10 min.

205 min.

B; 100

100X1.8=180 min.

30 min.

210 min.

50X0.6=30 min.

10 min.

40 min.

D; 200

200X.08=160 min.

25 min.

185 min.

E; 120

120X1.1=132 min.

15 min.

147 min.

F; 100

100X1.3=130 min.

20 min.

150 min.

C; 50

Infinite loading
Load the work center according to due
date. Jobs A, B, and C would be loaded
into day 137.
Jobs D, E, and F would be loaded into day
138.
It will require 455 minutes in day 137 and
482 minutes in day 138.
Minutes available =420
Need for overtime

Finite loading: 420 minutes available

Only try to complete jobs A and B in day 137.
Total minutes required= 415.
5 minutes left. Try to start setup for job C.
Day 138: finish job C and then complete jobs D
and E.
53 minutes left; do setup and start running job F.
Complete approximately 25 of the 100 items (53
min.- 20 min. setup =33 min.
33 min./1.3 min. per item = 25.4 items
Jobs C and F will be late

Infinite vs. Finite

Infinite loading assumes flexibility in
capacity and gives priority to due dates,
regardless of the increase in costs.
Finite loading assumes no flexibility in
capacity and costs. Problems with
customer service levels.

It has been assumed that lead time is

known, constant, and accurate. This is not
always true. We might have different actual
LT.
Corrective actions: (different Std. and real
times)
Subcontracting or purchasing components
Lot splitting = work only on minimal amount
really needed. Leave the rest for a later date.

Corrective actions cont.

Operation overlapping = moving part of the
order to the subsequent operation before the
entire order is ready for that next operation.
Operation splitting = assigning more
resources to the order so that processing can
proceed more quickly.

Corrective actions cont.

Alternative routings = moving the job to
operations not normally used for its
production. Used when primary production
resources are not available.
Order cancellations = costs to complete are
higher than expected profit from the order.