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Production Activity Control

Chapter 6
“The time comes when plans must be
put into action”

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Production Activity Control
• Responsible for executing the:
– Master Production Schedule (MPS)
– Materials Requirements Plan (MRP)

• At the same time:


– Make good use of labor, machines and materials
– Minimize work-in-process inventory
– Maintain customer service
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Production Activity Control
• Release work orders
• Control work orders to complete on time
• Control the flow of work
– Through manufacturing
– Carrying out the plan
– To completion
• Manage day-to-day activity and provide support

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Production
Planning

Master
Planning Production
Scheduling

Material
Requirements
Planning
Input/
Output
Implement
Production Control
and
Purchasing Activity
Control
Control
Operation
Figure 6.1 Sequencing
Priority planning and production activity control
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Planning
• To meet delivery dates
• Ensure:
– The required materials, tooling, personnel and
information
• Schedule:
– Start and completion times for each shop order
– Develop load profiles for the work centres`

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Implementation
• Gather information needed to make the
product
• Release orders to the shop floor
– MRP authorized

“Dispatching”

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Control
• The production order has been released
• Is corrective action necessary?
– Rank the orders by priority
– Establish a dispatch list
– Track performance to planned schedule
– Replan, reschedule, adjust capacity
– Monitor and control WIP, lead times, cues
– Report work center effciency, scrap, times
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
PRODUCTION ACTIVITY CONTROL

PLAN
Schedule
Replan

EXECUTE CONTROL
Work Compare
Authorization Decide

Dispatch Feedback

MANUFACTURING OPERATIONS
Figure 6.2 Production control system
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Manufacturing Systems
• Flow manufacturing
• Intermittent manufacturing
• Project manufacturing

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Flow Manufacturing
• High volume
• Standard products
– Repetitive or
– Continuous

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Flow Manufacturing
• Routings are fixed
– Work centers arranged according to the routing
• Dedicated to a limited range of products
– specifically designed equipment
• Use of mechanical transfer devices
– Low WIP and throughput times
• Capacity is fixed by the line

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Flow Manufacturing
• Production Activity Control
– Plans the flow of work
– Planned schedule of materials to the line
– Implementation and control are relatively
simple

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Intermittent Manufacturing
• Many variations in:
– product design
– process requirements
– order quantities

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Intermittent Manufacturing
• Flow of work is varied - work flow not
balanced
• Machinery and workers must be flexible
– Usually grouped according to function
• Throughput times are generally long
• Capacity required depends on product mix

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Intermittent Manufacturing
• Production Activity Control is complex:
– number of products made
– variety of routings
– scheduling problems
– PAC is a major activity
• Controlled through shop orders for each
batch

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Project Manufacturing
• One or a small number of units
• Usually in one place
• Close coordination between:
– Manufacturing, Marketing, Purchasing,
Engineering
• Examples:
– Shipbuilding
– House construction
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Data Requirements
• Need to know:
– What and how much to produce
– When parts are needed
– What operations and times are required
– Work center capacities
• Organized into databases:
– Planning or Control

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Planning Files

• Item master file


• Product structure file
• Routing file
• Work center master file

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Item Master File

• Part number • Quantity on hand

• Part description • Quantity available


• Allocated quantity
• Manufacturing lead
– already assigned to
time other work orders
• Lot size quantity • On-order quantities

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Product Structure File
• Bill of material file
– A listing of single-level components to make an
assembly
– Forms a basis for a „pick list‟

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Routing File
• Step-by-step instructions on how to make
the product
– Operations and their sequence
– Operation descriptions (brief)
– Equipment tools and accessories
– Operation setup times
– Operation run times
– Lead times for each operation
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Work Center Master File
• Details on each work center
– Work center number
– Capacity
– Shifts, machine hours and labor hours per week
– Efficiency
– Utilization
– Average queue time
– Alternative work centers
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Control Files
• Shop order master file
– Summarized data on each shop order

• Shop order detail file


– Current record of each operation

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Shop Order Master File
• Shop order number
• Order quantity
• Quantity completed
• Quantity scrapped
• Quantity of material • Due date
issued to the order • Priority
• Balance due
• Cost information
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Shop Order Detail File
• Operation number
• Setup hours planned and actual
• Run hours planned and actual
• Quantity complete (at this operation)
• Quantity scrapped (at this operation)
• Lead time remaining

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Order Preparation
• A check for available:
– Tooling
– Materials
– Capacity - when it is needed

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Scheduling
• To meet delivery dates
• Make the best use of resources
• Need information on:
– Routing
– Capacity
– Competing jobs
– manufacturing lead times

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Manufacturing Lead Time

• Queue - time spent waiting before operation


• Setup - time to prepare the work center
• Run - time to make the product
• Wait - time spent after the operation
• Move - transit time between work centers

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Manufacturing Lead Time
Queue Setup Run Wait
Need a lift truck here

Move

Move
Queue Setup Run Wait

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Cycle Time
• “The length of time from when material
enters a production facility until it exits”
– APICS Dictionary 11th Edition

• Synonym - throughput time

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Example Problem

Work Center A operation time = 30 + (100 x 10) = 1030 minutes


Wait time = 240 minutes
Move time from A to B = 10 minutes
Work Center B operation time = 50 + (100 x 5) = 550 minutes
Wait time = 240 minutes
Move time from B to stores = 15 minutes
Total manufacturing lead time = 2085minutes

= 34 hours, 45 minutes

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Scheduling Techniques
• Forward Scheduling • Backward Scheduling
– Start when the order is – Uses MRP logic
received – Schedule last operation
– May finish early to be complete on the
– Used to determine the due date
earliest completion – Schedule previous
date operations back from
– Determine promise the last operation
dates – Reduces inventory
– Builds inventory
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Forward and Backward Scheduling:
Infinite Load
Order Recieved Due Date
1 2 3 4 5 6 7 8 9

Forward Scheduling
Material 1st 2nd 3rd
Ordered Operation Operation Operation

Backward Scheduling

Material 1st 2nd 3rd


Ordered Operation Operation Operation

Figire 6.4 Infinite load profile


Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Infinite Load Profile
Capacity Overload

Capacity

Capacity Underload
Figure 6.5 Infinite load profile
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Forward and Backward Scheduling:
Finite Load
Order Recieved Due Date
1 2 3 4 5 6 7 8 9

Forward Scheduling
Material 1st 2nd 3rd
Ordered Operation Operation Operation

Backward Scheduling

Material 1st 2nd 3rd


Ordered Operation Operation Operation

Figure 6.6 Forward and Backward scheduling: finite load


Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Finite Load Profile

Capacity

Smoothed Load

Figure 6.7 Finite load profile


Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Example Problem
Backward Scheduling
• A company has an order for 50 brand X to be
delivered on day 100
• Only one machine is available for each operation
• The factory works one 8 hour shift 5 days a week
• The parts move in one lot of 50

Part Operation Time


X A 10 5
20 3
B 10 10
A B X Assembly 5

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Example Problem Answer

Part A

OP 10 OP 20
X

Part B Assembly

OP 10

85 90 95 100
Working Days

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Operation Overlapping
• The next operation is allowed to begin
before the entire lot is completed
• Reduces the manufacturing lead time
• Order is divided into at least two transfer
lots
Operartion A
SU Lot 1 Lot 2
T T Transfer Time

SU Lot 1 Lot 2
Operation B
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Operation Overlapping
• Costs involved:
• Handling costs between work centers
• May increase queue and wait for other
orders
• Idle time if the second batch doesn‟t arrive
in time

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Size of the Transfer Batch
SUA = Set up time operation A
SUB = Set up time operation B
RTA = Run time per piece operation A
RTB = Run time per piece operation B
QT = Total order size
T1 = size of the first transfer batch

T1 = QT x RTA - SUB T2 = QT - T1
RTA + RTB
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Size of the Transfer Batch
• If the second operation is slower than the
first make the first transfer batch small
– i.e. get the slower machine started early

• If the second machine is faster than the first


make the first transfer batch large
– i.e. the second machine will be able to catch up

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Example Problem
Operartion A
0 30 730 1,000 (Minutes)

30 70 x 10 = 700 30 x 10 = 300

T T Transfer Time
1,010

50 70 x 5 = 350 30x5 = 150

740 790 1140 1290


Operation B
Stores 1305
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Operation Splitting
• Reduces manufacturing lead time
• The order is split into at least two lots
• Similar machines are run simultaneously

• Setup time is low compared to run time


• Operators can run more than one machine

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Operation Splitting
One Machine
SU Run

Two Machine Operation Splitting


SU Run
Reduction in
Lead Time

SU Run

Figure 6.9 Operation splitting


Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Load Leveling
• Load Report
• Tells PAC the current and upcoming load
on a work center
• Based on standard hours of operation for
each order

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Load Report
Work Center: 10 Available Time: 120 Hours per week
Description: Lathes Efficiency: 115%
Number of Machines: 3 Utilization 80%
Rated Capacity: 110 standard hours / wk

Week 18 19 20 21 22 23 Total
Released
80 30 0 0 315
Load 105 100
60 80 130 80 350
Planned Load
Total Load 105 100 140 110 130 80 665
Rated
110 110 110 110 110 110 660
Capacity
(Over) /
Under 5 10 (30) 0 (20) 30 (5)
Capacity

Figure 6.10 Work centre load report


Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Scheduling Bottlenecks
• Some workstations are overloaded and
some are underloaded

• Bottlenecks
– “a facility, function, department, or resource
whose capacityis equal to or less than the
demand put upon it.”
APICs Dictionary 11th Edition

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Throughput
• The total volume of product passing
through a facility
• Bottlenecks control the throughput
– Work centers feeding bottlenecks will build
inventory
– Work Centers fed by bottlenecks have their
throughput controlled by the bottleneck

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Example Problem - Bottlenecks
• Wagon Wheel Assembly - 1200 sets (2) per week
• Handle Assembly - 450 per week
• Final Assembly - 550 wagons per week
a. What is the capacity of the factory?
b. What limits the throughput of the factory?
c. How many wheel assemblies should be made?
d. What is the utilization of the wheel assembly?
e. What happens if utilization is 100%
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Example Problem - Bottlenecks
a. 450 units per week
b. Throughput is limited by the handle
assembly operation
c. 900 wheel assemblies per week
d. Utilization of the wheel assemblies =
900 ÷ 1200 = 75%
e. Excess inventory of wheel assemblies
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Bottleneck Principles (7)
1. Utilization of a non-bottleneck resource is not determined
by its potential, but by another constraint in the system.
2. Utilization of a non-bottleneck 100% of the time does not
produce 100% utilization.
3. The capacity of the system depends on the capacity of the
bottleneck.
4. Time saved at a non-bottleneck saves the system nothing.
5. Capacity and priority must be considered together.
6. Loads can and should be split.
7. Focus should be on balancing the flow in the shop.

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Managing Bottlenecks
1. Establish a time buffer before each bottleneck.
2. Control the rate of material feeding the bottleneck.
3. Do everything to provide the bottleneck with
capacity.
4. Adjust loads.
5. Change the schedule.
Back schedule before the bottleneck; forward
schedule after the bottleneck.

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Theory of Constraints
• 1. Identify the constraint

Process 1 Process 2 Process 3 Process 4


5 per hour 7 per hour 4 per hour 9 per hour

Marketing sells
5 per hour?

Figure 6.11

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Theory of Constraints continued
2. Exploit the constraint. (idle time?)
3. Subordinate everything to the constraint.
4. Elevate the constraint.
5. Once the constraint is a constraint no-
longer, find the new one and repeat the
steps.
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Drum-Buffer-Rope
• Drum - pace of production set by the
constraint
• Buffer - inventory established before the
constraint
• Rope - coordinated release of material

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
X
Example Problem Y Z

Work Center 20: Capacity = 40 hours per week


Y: Setup = 1 hour, Run Time = .3 hours per piece
Z: Setup = 2 hours, Run Time = .2 hours per piece

Let x = the number of Y‟s and Z‟s to produce


1 + 0.3x + 2 + .2x = 40 hours
0.5x = 37 hours
x = 74 (you can produce 74 Y’s and 74 Z’s)
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Implementation
• Issuing shop orders to manufacturing
• Which have a good chance of being
completed on time
• Orders which have the:
– tooling
– material
– capacity

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Shop Order Information
• Order number, • Material Issue Tickets
description
• Tool Requisitions
• Engineering Drawings

• Bills of Material • Job Tickets

• Route Sheets • Move Tickets

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Figure 6.12 Review Order
Order Release
Process Check Tooling
and Material
Availability

No
Okay? Resolve
Yes
Check Capacity
Requirements
and Availability

No
Okay? Resolve
or
Yes Reschedule
Release
Order
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Control
• Control the work going into and out of a
work center: Input/output control

• Set the priority of orders to run at each work


center

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Input / Output Control
Input Rate
Control

Queue
(Load, WIP)

Output Rate
Control
Figure 6.13
Input/output control
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Work Center: 201
Capacity per period: 40 standard hours

Period 1 2 3 4 5 Total
Planned Input 38 32 36 40 44 190
Actual Input 34 32 32 42 40 180
Cumulative Variance -4 -4 -8 -6 -10 -10

Planned Output 40 40 40 40 40 200


Actual Output 32 36 44 44 36 192
Cumulative Variance -8 -12 -8 -4 -8 -8

Planned Backlog 32 30 22 18 18 22
Actual Backlog 32 34 30 18 16 20

Figure 6.14 Input/output report

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Cumulative Variance
• The difference between the total planned for
a given period and the actual total for that
period

• Cumulative variance
= previous cumulative variance + actual
- planned

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Work Center: 201
Capacity per period: 40 standard hours

Period 1 2 3 4 5 Total
Planned Input 38 32 36 40 44 190
Actual Input 34 32 32 42 40 180
Cumulative Variance -4 -4 -8 -6 -10 -10

Planned Output 40 40 40 40 40 200


Actual Output 32 36 44 44 36 192
Cumulative Variance -8 -12 -8 -4 -8 -8

Planned Backlog 32 30 22 18 18 22
Actual Backlog 32 34 30 18 16 20

Cumulative variance week 2 = -4 + 32 -32 = -4


Figure 6.14 Input/output report
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Example Problem: Input/Output
Week 1 2

Planned Input 45 40

Actual Input 42 46

Cumulative Variance

Planned Output 40 40

Actual Output 42 44

Cumulative Variance

Planned Backlog 30

Actual Backlog 30

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Operations Sequencing
• “a technique for short term planning of
actual jobs to be run in each work center
based on capacities and priorities.”
APICS Dictionary 11th Edition

• Priority: The sequence in which jobs should run


at a work center
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Dispatching
• Selecting and sequencing jobs to be run at a
work center
• Dispatch list
• Plant, department, work center
• Part number, shop order number, operation number
and description
• Standard hours
• Priority information
• Jobs coming to the work center

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Dispatching Rules
• FCFS - First come, first served
• EDD - Earliest job due date
• ODD - Earliest operation due date
• SPT - Shortest processing time
• CR - Critical ratio

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Critical Ratio
CR= due date - present date CR<1 Behind
lead time remaining Schedule

CR=1 On Schedule
= actual time remaining
lead time remaining CR>1 Ahead of
Schedule

CR<0 Already late

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Sequencing Rules
Process Sequencing Rule
Arrival Due Operation
Job Time
Date Date Due Date FCFS EDD ODD SPT
(days)
A 4 223 245 233 2 4 1 3
B 1 224 242 239 3 2 2 1
C 5 231 240 240 4 1 3 4
D 2 219 243 243 1 3 4 2

Figure 6.16 Application of sequencing rules

Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Production Reporting
• Feedback of what is actually happening on
the shop floor
• Needed for management decisions

on-hand on-order
job status shortages
scrap material shortages
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Production Activity Control
Summary
• Converting MRP plans into action
– Reporting results
– Revising plans
• Need:
– detailed and current schedules and priorities
• Results:
– on-time deliveries, well utilized labor, and
equipment, minimum inventory levels
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.

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