SCHEDULING OPERATIONS

Operation Management and TQM

PRESENTED BY:
Corvera, Herson
Tabil, Glenda M.
LEARNING OUTCOMES:
 Identify the important tools and techniques in scheduling operations.
 Describe the importance of capacity when scheduling.
 Explain the rules in priority dispatching.

TABLE OF CONTENTS:
 Batch Scheudling
 Grantt Charts
 Finite Capacity Scheduling
 Theory of Constraints
 Priority Dispatching Rules
 Planning and Controlling
INTRODUCTION:
 Batch scheduling is a method used for manufacturing a group of identical
products at one time with the same equipment.
 Scheduling production in batches is a more efficient, cost-effective and
traceable approach to manufacturing than continuous or on-demand
approaches.

WHAT IS BATCH SCHEDULING?

Batch scheduling is common among companies that manufacture paper, chemicals,

steel, plastic, consumer packaged goods, food and beverages, pharmaceutical and
biotech products, and apparel — or who manufacture multiple products using
common raw materials or the same machinery and settings.

Batch processing started with punch cards, which were tabulated into instructions
for computers. Entire decks, or batches, of cards, would be processed at one time.
This system, created by Herman Hollerith, goes as far back as 1890. Hollerith
developed it to be used to process data from the U.S. Census.1 Punched manually,
the card was fed into and read by an electromechanical device. Hollerith patented
his invention as the "Electronic Tabulating Machine", and later joined a group of
other inventors and investors to form the Computing-Tabulating-Recording
Company (CTR), which would eventually become International Business
Machines, or IBM.
The concepts, however, apply to batch operations of all types, including factories,
hospitals, offices, and schools. For service operations, “job” can be replaced by
“customer,” “patient,” “client,” “paperwork,” or whatever type of work flows
through the process. Furthermore, “work center” can be replaced by “room,”
“office,” “facility,” “skill specialty,” or whatever the processing centers are. In this
way, the concepts can be generalized to all types of operations.

Consider a haircare brand that manufactures eight different types of hairsprays.

While the company may use the same equipment and some of the same packaging
components for the full line of products, each hairspray will have different
ingredients and variations in packaging. Rather than constantly change machine
settings, raw materials and other inputs to produce the different hairsprays as
needed, the company turns to batch scheduling and production. Employees set up
the manufacturing line to mix the ingredients needed to produce a specified
volume of the first type of hairspray, then they produce that hairspray in a batch.
When that batch is done, they will change the settings, raw materials and other
inputs to produce a batch of the second hairspray, and so on.

Another reason quality is easily controlled through batch production is because of

how it is done. For batch production processes, the machinery needed for the
manufacturing processes, such as an assembly line, is usually already set in order
of what needs to be done first to last.
However, no two batches can be on the same manufacturing step together. Each
batch of raw or partially-made materials goes through the manufacturing process
one step at a time. And if there is a batch currently still undergoing a certain stage
in the manufacturing process, the batch following it cannot start on it yet until that
first batch is done. This ensures that each batch is thoroughly inspected for issues
and quality checks before moving on to the next manufacturing process or quality
control step.
A manufacturing system aims to produce output of the highest quality, at the
lowest cost, and the shortest amount of time by constantly improving processes and
equipment. Batch production can be more cost-effective for some businesses. If
some have machinery that allows them to automate the process, it can help them
allocate their time for other tasks. Batch production also allows for more variety in
the kinds of products that can be produced, as each batch can be made of different
materials yet still go through the same or similar processes.
ADVANTAGES AND DISADVANTAGES
The advantages of batch production are:

 Reduced unit costs, as creating in bulk is cheaper

 Addressed customer needs, such as different sizes and colors
 Less manual work, as the machinery will do most of it

Meanwhile, the disadvantages are:

 Possible lost time from changing, fixing, or resetting machines

 Loss of motivation for staff, if there is not much to do

Some examples of items produced in batches are:

Soap, food products such as meals, baked goods, and the like clothing in different
sizes and designs, sporting goods, electrical goods, newspapers, magazines, and
books computer chips.

GRANTT CHART

Finite capacity scheduling (FCS) is an extension of Gantt charts. It establishes a

work schedule to be produced in a certain time period, considering relevant
limitations of resources.

FCS offers several advantages for production managers and customers, such as
improved resource utilization, reduced lead times and inventory, increased
customer satisfaction, and enhanced visibility and control. FCS helps to allocate
resources more efficiently and avoid idle time, overwork, or underutilization. It
also helps to schedule production activities more accurately and minimize the
waiting time between operations, which reduces the need for excess inventory and
storage space. Moreover, FCS helps to meet customer expectations and deadlines
more reliably and consistently, which enhances the quality and reputation of the
products and services. Additionally, it helps to monitor and track the status and
performance of the production processes and resources, which enables better
decision making and problem solving.
FINITE CAPACITY SCHEDULING

Finite capacity scheduling (FCS) is an extension of Gantt charts. It

establishes a work schedule to be produced in a certain time period, considering
relevant limitations of resources.

FCS offers several advantages for production managers and customers, such
as improved resource utilization, reduced lead times and inventory, increased
customer satisfaction, and enhanced visibility and control. FCS helps to allocate
resources more efficiently and avoid idle time, overwork, or underutilization. It
also helps to schedule production activities more accurately and minimize the
waiting time between operations, which reduces the need for excess inventory and
storage space. Moreover, FCS helps to meet customer expectations and deadlines
more reliably and consistently, which enhances the quality and reputation of the
products and services. Additionally, it helps to monitor and track the status and
performance of the production processes and resources, which enables better
decision making and problem solving.

Benefits of Finite Capacity Scheduling

 FCS offers several advantages for production managers and

customers, such as improved resource utilization, reduced lead times
and inventory, increased customer satisfaction, and enhanced
visibility and control.
 FCS helps to allocate resources more efficiently and avoid idle time,
overwork, or underutilization.
 It also helps to schedule production activities more accurately and
minimize the waiting time between operations, which reduces the
need for excess inventory and storage space.
 Moreover, FCS helps to meet customer expectations and deadlines
more reliably and consistently, which enhances the quality and
reputation of the products and services.
 Additionally, it helps to monitor and track the status and performance
of the production processes and resources, which enables better
decision making and problem solving.

THEORY OF CONSTRAINTS
 The THEORY OF CONSTRAITS is management philosophy that aims to identify
and alleviate the bottleneck in a system to maximize productivity and efficiency.
By understanding the constraints, organizations can optimize their process and
unlock their full potential.

OVERVIEW OF THE THEORY OF CONSTRAINTS

· The Theory of Constraints (ToC) is a management philosophy developed by Dr.

Eliyahu M. Goldratt in the 1980s.

· It posits that every system has at least one constraint limiting its ability to
achieve its goal.

· Constraints can be anything that restricts a system's performance, including

processes, resources, or policies.

· The goal of ToC is to identify and manage constraints to improve overall

system efficiency and effectiveness.

THEORY OF CONSTRAINTS ELEMENTS

The TOC process is made up of the following elements:

· Constraints: A limiting factor that affects a system’s productivity

THE FIVE FOCUSING STEPS

· Five Focusing Steps: The focusing steps allow managers to identify constraints
and improve systems

The theory of constraints presents a well established scientific method comprised

of a continuous stream of five steps that specifically focus upon the identification
and elimination of the constraints that limit a process from achieving its maximum
capability:

 Identification of the constraint: In this step constraint or bottleneck in the

system is identified.
 Optimization of the constraint: The constraint is exploited to its maximum
outcome in its present state.
 Subordination of other activities: All the other activities present in the system
are set to match the needs of the constraint.
  Elevation of the constraint: This step involves the enhancement of current
capacity of the constraint. This step consumes both time as well as money
resources.
 Process Repetition: The fifth step is not actually a step in itself, rather it is a
repetition of the above mentioned four steps. This is because when a constraint
is removed from a system, it moves somewhere else within the system (i.e.,
another constraint within the process is found and eliminated using first four
steps).

THINKING PROCESS FRAMEWORK

Thinking Processes: The thinking processes are problem-solving tools to improve

constraints and eliminate bottlenecks

THINKING PROCESS FRAMEWORK:

This process demands the user to search for three questions in a system.

 What do you need to change?

 What the change should be?
 What actions will bring the change?

GOLDRATT THINKING PROCESSES

When Eliyahu Goldratt created TOC, he defined several thinking processes to

manage different aspects of a project or system. To keep things simple we’ll
explain the most widely used TOC thinking processes.

Current reality tree: The current reality tree is a diagram that identifies the
undesirable effects (UDEs) and traces their root cause

Evaporating Cloud tree: It’s a diagram that helps identify specific changes to the
undesirable effects identified in the current reality tree. Serves as a transition to the
future reality tree

Future reality tree: The future reality tree is a diagram that represents the future
state of the project after the changes to the undesirable effects are made
 Strategy and tactics tree: The strategy and tactics tree diagram shows an
implementation plan that explains how to apply the changes that will solve the
undesirable effects and will take the project to the future state

THROUGHPUT ACCOUNTING

· Throughput Accounting: An accounting method that focuses on the throughput

of the business

 Goldratt's alternative begins with the idea that each organization has a goal
and that better decisions increase its value. The goal for a profit maximizing
firm is stated as, increasing net profit now and in the future.

THEORY OF CONSTRAINTS KEY ASSUMPTION

-The theory of constraints’ key assumption is that an organization can be managed

by measuring these three things:

· Throughput: The rate at which the system generates “goal units” (or money)
through sales

Throughput (T) is the rate at which the system produces "goal units." When
the goal units are money [7] (in for-profit businesses), throughput is net sales
(S) less totally variable cost (TVC), generally the cost of the raw materials
(T = S – TVC).

· Operational Expense: Money spent when generating “goal units”

Operating expense (OE) is the money the system spends in generating "goal
units." For physical products, OE is all expenses except the cost of the raw
materials. OE includes maintenance, utilities, rent, taxes and payroll

· Investment: All the money that is invested in the system (inventory, machinery,
etc.)
 Investment (I) is the money tied up in the system. This is money associated
with inventory, machinery, buildings, and other assets and liabilities.

BENEFITS OF THE THEORY OF CONSTRAINTS

The main goal of TOC is to streamline management and manufacturing systems to

maximize productivity. But that’s not all, a successful TOC implementation will
have other benefits:

 Reduction of operating expenses

 Increased profit and return on investment
 Increased capacity
 Increased throughput rate

EXAMPLES OF THE APPLICATION OF THEORY OF CONSTRAINTS

(TOC):

The theory of constraints (TOC) is a very practical theory and has its implication
worldwide. Both small and large multinational companies widely use it to
recognize and rectify the vulnerabilities of their systems or processes. One
example is the Boeing Company – a multi-national company that manufactures and
sells aircrafts world wide. Boeing implemented the theory into its Aerospace
Segment in 1996. The results they achieved were the lead time of their supplies
was improved by 75% and inventory decrease reduced by 60%.

PRIORITY DISPATCHING RULES

A dispatching rule is a rule that prioritises all the jobs that are awaiting for
processing on a machine. Whenever a machine has been freed, a dispatching rule
inspects the waiting jobs and selects the job with the highest priority.
 ABSTRACT

Priority-dispatching rules have been studied for many decades, and they form the
backbone of much industrial scheduling practice. Developing new dispatching
rules for a given environment, however, is usually a tedious process involving
implementing different rules in a simulation model of the facility under study and
evaluating the rule through extensive simulation experiments. In this research, an
innovative approach is presented, which is capable of automatically discovering
effective dispatching rules. This is a significant step beyond current applications of
artificial intelligence to production scheduling, which are mainly based on learning
to select a given rule from among a number of candidates rather than identifying
new and potentially more effective rules. The proposed approach is evaluated in a
variety of single machine environments, and discovers rules that are competitive
with those in the literature, which are the results of decades of research

OVERVIEW OF DISPATCHING RULES

 Dispatching is a scheduling technique used to determine the priority of jobs at

different work centers.
 Priority may vary between work centers based on chosen dispatch rules.
 In finite capacity scheduling, dispatch rules determine the next job to schedule
when multiple jobs await processing.

REAL-TIME ADJUSTMENTS

Schedules often face disruptions like machine breakdowns, operator absence, or

delayed materials.

Dispatch rules facilitate real-time adjustments by determining the next job for
processing.

Dynamic nature of dispatch rules continually sets priorities based on changing

conditions.

TYPES OF DISPATCH RULES IN SERVICES

1. First Come, First Served (FCFS):

  Serves customers in the order of their arrival.
 Common in services but performs poorly in manufacturing.

2. Priority Rule:

 Assigns priority based on factors like customer payment or service urgency.

3. Preemptive Rule:

 Interrupts service for urgent cases, often used in hospitals or emergency

services.

TYPES OF DISPATCH RULES IN MANUFACTURING

 Critical Ratio (CR):

Prioritizes jobs based on the ratio of remaining time until the due date to
remaining processing time.

Efficient for meeting due dates.

 Shortest Processing Time (SPT):

Selects jobs with the shortest processing time first.

Efficient for throughput but may not meet due dates effectively.

EXAMPLE OF DISPATCH RULES IN PRACTICE

 Public Safety Hiring Process:

Example from Odessa, Texas, where TOC principles improved the hiring
process for the police department.

Reference: Taylor, Moersch, & Franklin, 2003.

CONSIDERATIONS FOR LEAD TIMES

Lead times can vary based on manager decisions and scheduling practices.

Tight due dates may require prioritization strategies like CR to ensure timely
completion.

CONCLUSION

Dispatching plays a crucial role in scheduling by determining job priorities.

Various dispatch rules exist for both service and manufacturing environments.

Effective use of dispatch rules can optimize scheduling, improve throughput, and
meet due dates.

KEY POINTS AND TERMS

In this chapter, we have treated scheduling decisions for batch operations.

The chapter’s theme is that all scheduling decisions deal with the allocation of
limited resources to jobs, activities, tasks, or customers. We assume, for scheduling
purposes, that resources are fixed as a result of aggregate planning and facilities
decisions.

The following are among this chapter’s key points:

 Within the available resources, scheduling seeks to satisfy the conflicting
objectives of low inventories, high efficiency, and good customer service.
Thus, trade-offs may be implicitly or explicitly made whenever a schedule is
developed. Because of the potential for conflicting objectives, cross-
functional coordination is required for effective scheduling.
 Gantt charting is the simplest form of scheduling. It is used to schedule jobs
one at a time according to the resources available. Gantt charting will
determine the waiting time of each job, job completion dates, resource
(machine) utilization, and the makes-pan of all jobs.
 Finite capacity scheduling is used to schedule multiple jobs through a
number of different work centers. The jobs are scheduled in a manner
similar to Gantt charting except that each work center may have multiple
machines (or resources). In finite scheduling, efforts are made to improve
job flow through bottlenecks by splitting jobs, alternative routings, overtime,
and other methods.
  The theory of constraints (TOC) is an extension of finite capacity scheduling
that maximizes operations throughput by identifying and scheduling
bottleneck resources. Bottlenecks are scheduled to maximize flow, and
nonbottlenecks are scheduled to keep the bottleneck busy.
 Dispatching is used to decide on the priority of jobs as they pass through the
factory or service process. Various dispatching rules can be used to decide
which job or activity to process next at each work center.
 Scheduling systems should answer the following questions: (1) What
delivery date do we promise? (2) Where is the bottleneck? (3) When should
we start each job, activity or task? (4) How do we ensure that the job is
completed on time? To handle constantly changing situations, these systems
are usually part of an information system and they operate as a daily
planning and control system.
 Lead time for completion of a job is not a statistical phenomenon. Lead time
is a function of both capacity and priority decisions.

REFFERENCE:

https://safetyculture.com/topics/manufacturing-operations/batch-production/

https://www.netsuite.com/portal/resource/articles/inventory-management/batch-
scheduling.shtml

https://www.investopedia.com/terms/g/gantt-chart.asp

https://www.linkedin.com/advice/1/what-benefits-challenges-using-finite-capacity

https://www.gantt.com/

Theory of Constraints: A Guide for Project Managers - ProjectManager

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disadvantages | Accounting For Management

Schroeder, R., & Goldstein, S. M. (2018). Operations Management in the Supply

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Throughput accounting - Wikipedia

https://web-static.stern.nyu.edu/om/faculty/pinedo/scheduling/shakhlevich/
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