Operations Management

BBA
Academic Year 2021-22

Dr. Hasanuzzaman
Assistant Professor
Operations & Information Technology
ICFAI Business School Hyderabad
Scheduling - Hierarchies
 Scheduling
■ Establishing the timing of the use of equipment, facilities and human activities in an
organization
■ Effective scheduling can yield
– Cost savings
– Increases in productivity
– Other benefits

■ Forward scheduling
– Scheduling ahead from a point in time.
■ Backward scheduling
– Scheduling backwards from the due date.
Scheduling
 Scheduling Based on Production Volume
High Volume System
■ Flow System
– High-volume system in which all jobs follow the same sequence
– Flow system scheduling
■ Scheduling for flow systems
■ The goal is to achieve a smooth rate of flow of goods or customers through the system in
order to get high utilization of labor and equipment
 High Volume System – Success Factors
■ Process and product design. Here, cost and manufacturability are important, as is
achieving a smooth flow through the system.
■ Preventive maintenance. Keeping equipment in good operating order can minimize
breakdowns that would disrupt the flow of work.
■ Rapid repair when breakdowns occur. This can require specialists as well as stocks of
critical spare parts.
■ Optimal product mixes. Techniques such as linear programming can be used to deter-
mine optimal blends of inputs to achieve desired outputs at minimal costs.
■ Minimization of quality problems. Quality problems can be extremely disruptive, requiring
shutdowns while problems are resolved.
■ Reliability and timing of supplies. Shortages of supplies are an obvious source of
disruption and must be avoided.
– Shortening supply lead times, developing reliable supply schedules, and carefully
projecting needs are all useful.
 Scheduling Based on Production Volume
Intermediate Volume System
■ Outputs fall between the standardized type of output of high-volume systems and the
make-to-order output of job shops
■ Output rates are insufficient to warrant continuous production
– Rather, it is more economical to produce intermittently
■ Work centers periodically shift from one product to another
■ The three basic issues in these systems are
– The run size of jobs,
– The timing of jobs, and
– The sequence in which jobs should be processed
■ Run size is an issue.
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– Run size that would minimize setup and inventory cost is !! =
% &'(
 Scheduling Based on Production Volume
Low Volume System of Job shop scheduling
■ Scheduling for low-volume systems with many variations in requirements
– Make-to-order products
– Processing requirements
– Material requirements
– Processing time
– Processing sequence and setups
■ A complex scheduling environment
– It is impossible to establish firm schedules until actual job orders are received
 Low Volume - Loading
■ The assignment of jobs to processing centers
■ Objective
– To minimize processing and setup costs,
– To minimize idle time among work centres, or
– To minimize job completion time, depending on the situation.
■ Tools to be used
– Gantt Chart
■ Chart used as visual aid for loading and scheduling purposes.
– Load Chart
■ A Gantt chart that shows the loading and idle times for a group of machines or list of
departments.
Gantt Chart
Gantt Chart – Load Chart
 Gantt Chart – Load Chart
■ Infinite loading Jobs are assigned to work centres without regard to the capacity of the
work centre.
■ Finite loading Jobs are assigned to work centres taking into account the work centre
capacity and job processing times.
 Low Volume Sequencing - Terminologies
■ Sequencing
– Determining the order in which jobs at a work centre will be processed.
■ Workstation
– An area where one or a few workers and/or machines perform similar work.
■ Priority rules
– Simple heuristics used to select the order in which jobs will be processed.
■ Job time
– Time needed for setup and processing of a job.
■ Local priority rules
– Focus on information pertaining to a single workstation when establishing a job
sequence.
■ Global priority rules
– Incorporate information from multiple workstations when establishing a job
sequence.
 Low Volume Sequencing Priority Rules
Local Rules
■ First come, first served (FCFS)
– Jobs are processed in the order in which they arrive at a machine or work centre.
■ Shortest processing time (SPT)
– Jobs are processed according to processing time at a machine or work centre, shortest job first.
■ Earliest due date (EDD)
– Jobs are processed according to due date, earliest due date first.
Global Rules
■ Critical ratio (CR)
– Jobs are processed according to smallest ratio of time remaining until due date to processing time
remaining.
■ Slack per operation (S/O)
– Jobs are processed according to average slack time (time until due date minus remaining time to
process). Compute by dividing slack time by number of remaining operations, including the current
one.
■ Rush
– Emergency or preferred customers first.
 Priority Rules – Assumption
■ The set of jobs is known; no new jobs arrive after processing begins, and no jobs are
cancelled.
■ Setup time is independent of the processing sequence.
■ Setup time is deterministic.
■ Processing times are deterministic rather than variable.
■ There will be no interruptions in processing, such as machine breakdowns, accidents, or
worker illness.
 Sequencing
■ Job flow time
– The amount of time from when a job arrives until it is finished.
■ Job lateness or tardiness
– The difference between the actual completion date and the due date.
■ Makespan
– Total time needed to complete a group of jobs from the beginning of the first job to
the completion of the last job.
■ Average number of jobs.
– Jobs that are in a shop are considered to be work-in-process inventory.
■ The average work-in-process for a group of jobs can be computed using the following
formula:
1-2'3 .3-4 25+%
#$%&'(% )*+,%& -. /-,0 =
6'7%08')
 Sequencing
■ Processing times (including setup times) and due dates for six jobs waiting to be
processed at a work center are given in the following table. Determine the sequence of
jobs, the average flow time, average tardiness, and average number of jobs at the work
center, for each of these rules:
– FCFS
– SPT Job Processing Time Due Date (Days
(Days) from Present Date)
– EDD
A 2 7
– CR
B 8 16
C 4 4
D 10 17
E 5 15
F 12 18
 Sequencing through Two Work Centre
■ Johnson’s rule
– Technique for minimizing make span for a group of jobs to be processed on two
machines or at two work centres.
■ Assumptions
– The processing time on different machines are exactly known and are independent
of the order of the jobs in which they are to be processed.
– The time taken by the job in moving from one machine to another is negligible.
– Once a job has begun on a machine, it must be completed before another job can
begin on the same machine.
– All jobs are known and are ready for processing before the period under
consideration begins.
– Only one job can be processed on a given machine at a time.
– Machines to be used are of different types.
– The order of completion of jobs are independent of the sequence of jobs.
 Johnson Rule – Steps
■ Step 1: List the jobs along with their processing times on each machine

■ Step 2: Find the shortest processing time in each column corresponding to machine M1 and
M2 and identify min. (t1j, t2j) for all j.
■ Step 3 : If the shortest processing time is on machine M1, then schedule the job as early as
possible, i.e. place the job in the first available position in the sequence. If the processing
time is on machine M2, then schedule the job as late as possible, without moving any jobs
already scheduled, i.e. place the job in the last available position in the sequence.
■ If there is a tie in selecting the minimum of all the processing times, then the following three
situations may arise
– The minimum among all processing times is same for the machine, i.e. min(t1j, t2j) = t1k
= t2r, then process the kth job first and the rth job last
– If the tie for the minimum occurs among processing times t1j on machine M1 only, then
select the job corresponding to the smallest job subscript first.
– If the tie for the minimum occurs among processing times t2j on machine M2, then select
the job corresponding to the largest job subscript last.
 Johnson Rule – Steps
■ Step 4: Remove the assigned jobs from the table. If the table is empty, stop and go to Step 5.
Otherwise, go to Step 2.
■ Step 5: Calculate the idle time for machines M1 and M2
– Idle time for machine M1=(Total elapsed time) – (Time when the last job in a sequence
finishes on machine M1)
– Idle time for machine M2=Time at which the first job in a sequence finishes on machine M1
+ {(Time when the jth job in a sequence starts on machine M2) – (Time when the (j –
1)th job in a sequence finishes on machine M2)}.
■ Step 6: The total elapsed time to process all jobs through two machines is given by:
– Total elapsed time= Time when the nth job in a sequence finishes on machine M2

n n
å M 2j + å I2j
■ Where j =1 j =1

– M2j = Time required for processing jth job on machine M2.

– I2j = time for which machine M2 remains idle after processing (j – 1)th job and before
starting work in jth job.
 Johnson Rule – Example
■ A book binder has one printing press, one binding machine and manuscripts of 7 different
books. The times required for performing printing and binding operations for different books
are shown below:
Book 1 2 3 4 5 6 7
Printing Time (Hours) 20 90 80 20 120 15 65
Binding Time (Hours) 25 60 75 30 90 35 50

■ Decide the optimum sequence of processing of books in order to minimize the total time
required to bring out all the books.
 Johnson Rule – Example
■ A manufacturing company processes 6 different jobs on two machines A and B. Number of
units of each job and its processing times on A and B are given below. Find the optimal
sequence, the total minimum elapsed time and idle time for either machine.

Job Number No of Units Processing Time in Minutes

of Each Job Machine A Machine B
1 3 5 8
2 4 16 7
3 2 6 11
4 5 3 5
5 2 9 7.5
6 3 6 14