Page 281 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management

Notes  The finished product is decomposed into required resources – labour, equipment, and
even operational times – lead times are then calculated.

 The gross requirements, called rough-cut capacity, are eventually mapped against the
available resources.

 If resources are in short supply, the planning system flags the affected customer and
manufacturing orders so that the MPS can be recalculated.
 This information tells the enterprise when to order new materials, when to start making
products from those materials, and when to distribute the finished products to end
customers.

14.1.1 Operations Scheduling Models

People face scheduling problems and opportunities every day.

Example: At the railway station, someone is responsible for assigning platforms to the
different trains that come in and go out. Or in a manufacturing facility, someone is in charge of
assigning jobs to machines. How does one build a model that can be used under these
circumstances? To build a model is quite simple.
The main components of a planning and scheduling model require that you define the variables.
These could include the following:
 When are people, machines, vehicles, etc., available to do work?
 What product needs to be made or service needs to be performed?

 What is the process to make the product or perform the service?
 What resources are required to complete or perform the process (i.e., machines, people,
tooling, materials, etc.)?

 How many parts do we need to make for each customer, or what services does the customer
need?

 When do they need the products delivered or the services performed?
There are two basic types of scheduling exercises:
 Operations scheduling assigns jobs to machines or workers to jobs. In manufacturing,
operations scheduling is crucial because many performance measures, such as, on-time
delivery, levels, the manufacturing cycle time, cost, and quality, relate directly to the
scheduling of each production lot.
 Workforce scheduling determines when employees work. In service organizations,
workforce scheduling is equally crucial because measures of performance such as customer
waiting time, waiting-line length, utilization, cost, and quality are related to the availability
of the servers.
Perhaps the most fundamental questions in scheduling are:
 What is the capacity?
 How do you balance load and capacity?

Capacity has two basic types of constraints—a hard ceiling and a soft ceiling.

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