What is Operations Scheduling?

Introduction
In the operations management or the production management, this technique of operations
scheduling forms a very important part and acts as the back bone for the performance of the
manufacturing or the service organizations. With the help of the operations scheduling, two very
important factors or the aspects of the resources within an organization that can be pertained are as
follows
1. Allocating the resources within an organization.
2. Setting up the time table.
In todays competitive world, the orders that are placed either from the side of the customer or from
the side of the assembly benches are to be completed on or before the contracted or the promised
date. For fulfilling this, operations scheduling plays a very critical and an essential role and
completely ensures that these dates are met.

Operations scheduling helps in the confirmation or the revision of the tentative delivery date that
has been promised in the original quotation. Sometimes during the operations scheduling of the
work order, it may be discovered that the delivery date originally and tentatively promised cannot
be met. All this may be due to the several problems like the materials that are required may not be
available at that particular time or may not be available immediately. This problem can also occur
due to the increased plant loading while the customer is deciding whether or not to award the
quoted job to this company.

It has been observed that the operations scheduling has a direct affect on the effectiveness of the
production function and this relation was actually explained by Vollman.

According to Vollman, The priority planning and the shop floor control and the scheduling elements
ultimately determine the performance of the production system.

If the operations scheduling is carried out in an efficient manner, then there occurs a considerable
improvement in the performance in the delivery. Also helps in the achievement of the goals that
have been set by the company. Efficient operations scheduling playa a very critical part in the
reduction of the production lead times.

Explain about types of Operations Scheduling

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Various types of Operations Scheduling are:
1. Forward operations scheduling
a. Classified on the basis of the time.
b. All the activities are scheduled from the date of the planned order release.
c. First task of the job is scheduled.
d. Its subsequent task is scheduled on the scheduled completion of the first task.
e. Like this, accordingly all the tasks of the job are scheduled.

2. Backward operations scheduling

a. Also classified on the basis of the time.
b. Activities are scheduled from the date or the planned receipt date.
c. The last activity is scheduled first.
d. Time of the start of the last task is considered as the time for the start of the previous activity.

Methods used for the operations scheduling

1. Johnsons two machine algorithm
a. Very effective when the operations sequencing has two machines and the processing time
depends on the sequence in which the jobs are loaded.
b. Also used when the company involves a backlog of the orders.
c. Is a very simple process.
d. Also a time saving process.
e. Helps in the determination of the optimal job sequence.

2. Index method
a. Used for the purpose of the loading and also for allocating the different jobs to the different
machines.
b. Generally orders are assigned on the basis of the first come first assigned method.
c. But does not provide optimum loading.

3. Critical path analysis

a. Helps in the determination of the scheduling of the activities of the projects.
b. Reveals inter relationships between the different activities of the project.
c. Reflects the uncertainty in the durations estimated for the various activities.

4. Critical ratio scheduling

a. Helps in the establishment and the maintenance of the priorities among the jobs in a factory.
b. Concept of critical ratios is used widely.
c. Helps in the expedition of the functions of the PPC.

SCHEDULING FOR SERVICE ORGANIZATIONS

In many service organizations, scheduling is complicated because service demand quantity, type
of service, and timingis often variable and hard to forecast. In addition, inventories may not be
possible and capacity is limited. For example, a movie theater cannot show the movie before the
customers arrive and hope to satisfy demand. The theater is also limited as to how many people can
occupy the theater at any given time. Because of these constraints, some additional techniques are
available for scheduling services. These include scheduling the services demanded and scheduling
the workforce.
SCHEDULING SERVICES DEMANDED

Techniques for scheduling services demanded range from setting appointments, requiring
reservations, using a public schedule, and delaying or back-ordering the service. Let's look at each
of these individually.

Appointments Appointment systems set a time for the customer to use the service. For example,
students make appointments with professors to discuss class work. Appointments minimize
customer waiting time and make good use of the service provider's capacity. Appointment systems
are used by physicians, lawyers, auto repair or service shops, and hair salons. The shared
component of each of these services is that no tangible inventory is usually possible. Disadvantages
of an appointment system include the problem of no-showspeople ...

OPERATIONS SCHEDULING

Scheduling pertains to establishing both the timing and use of resources within an organization.
Under the operations function (both manufacturing and services), scheduling relates to use of
equipment and facilities, the scheduling of human activities, and receipt of materials.

While issues relating to facility location and plant and equipment acquisition are considered long
term and aggregate planning is considered intermediate term, operations scheduling is considered
to be a short-term issue. As such, in the decision-making hierarchy, scheduling is usually the final
step in the transformation process before the actual output (e.g., finished goods) is produced.
Consequently, scheduling decisions are made within the constraints established by these longer-
term decisions. Generally, scheduling objectives deals with tradeoffs among conflicting goals for
efficient utilization of labor and equipment, lead time, inventory levels, and processing times.

Byron Finch notes that effective scheduling has recently increased in importance. This increase is
due in part to the popularity of lean manufacturing and just-in-time. The resulting drop in inventory
levels and subsequent increased replenishment frequency has greatly increased the probability of
the occurrence of stock-outs. In addition, the Internet has increased pressure to schedule effectively.
"Business to customer" (B2C) and "business to business" (B2B) relationships have drastically
reduced the time needed to compare prices, check product availability, make the purchase, etc.
Such instantaneous transactions have increased the expectations of customers, thereby, making
effective scheduling a key to customer satisfaction. It is noteworthy that there are over 100 software
scheduling packages that can perform schedule evaluation, schedule generation, and automated
scheduling. However, their results can often be improved through a human scheduler's judgment
and experience.

There are two general approaches to scheduling: forward scheduling and backward scheduling. As
long as the concepts are applied properly, the choice of methods is not significant. In fact, if process
lead times (move, queue and setup times) add to the job lead time and process time is assumed to
occur at the end of process time, then forward scheduling and backward scheduling yield the same
result. With forward scheduling, the scheduler selects a planned order release date and schedules all
activities from this point forward in time.
With backward scheduling, the scheduler begins with a planned receipt date or due date and moves
backward in time, according to the required processing times, until he or she reaches the point
where the order will be released.

Of course there are other variables to consider other than due dates or shipping dates. Other factors
which directly impact the scheduling process include: the types of jobs to be processed and the
different resources that can process each, process routings, processing times, setup times,
changeover times, resource availability, number of shifts, downtime, and planned maintenance.

LOADING

Loading involves assigning jobs to work centers and to various machines in the work centers. If a job
can be processed on only one machine, no difficulty is presented. However, if a job can be loaded on
multiple work centers or machines, and there are multiple jobs to process, the assignment process
becomes more complicated. The scheduler needs some way to assign jobs to the centers in such a
way that processing and setups are minimized along with idle time and throughput time.

Two approaches are used for loading work centers: infinite loading and finite loading. With infinite
loading jobs are assigned to work centers without regard for capacity of the work center. Priority
rules are appropriate for use under the infinite loading approach. Jobs are loaded at work centers
according to the chosen priority rule. This is known as vertical loading.

Finite loading projects the actual start and stop times of each job at each work center. Finite loading
considers the capacity of each work center and compares the processing time so that process time
does not exceed capacity. With finite loading the scheduler loads the job that has the highest priority
on all work centers it will require. Then the job with the next highest priority is loaded on all required
work centers, and so on. This process is referred to as horizontal loading. The scheduler using finite
loading can then project the number of hours each work center will operate. A drawback of
horizontal loading is that jobs may be kept waiting at a work center, even though the work center is
idle. This happens when a higher priority job is expected to arrive shortly. The work center is kept
idle so that it will be ready to process the higher priority job as soon as it arrives. With vertical
loading the work center would be fully loaded. Of course, this would mean that a higher priority job
would then have to wait to be processed since the work center was already busy. The scheduler will
have to weigh the relative costs of keeping higher priority jobs waiting, the cost of idle work centers,
the number of jobs and work centers, and the potential for disruptions, new jobs and cancellations.

If the firm has limited capacity (e.g., already running three shifts), finite loading would be
appropriate since it reflects an upper limit on capacity. If infinite loading is used, capacity may have
to be increased through overtime, subcontracting, or expansion, or work may have to be shifted to
other periods or machines.

SEQUENCING

Sequencing is concerned with determining the order in which jobs are processed. Not only must the
order be determined for processing jobs at work centers but also for work processed at individual
work stations. When work centers are heavily loaded and lengthy jobs are involved, the situation can
become complicated. The order of processing can be crucial when it comes to the cost of waiting to
be processed and the cost of idle time at work centers.
There are a number of priority rules or heuristics that can be used to select the order of jobs waiting
for processing. Some well known ones are presented in a list adapted from Vollmann, Berry,
Whybark, and Jacobs (2005):

Random (R). Pick any job in the queue with equal probability. This rule is often used as a
benchmark for other rules.

First come/first served (FC/FS). This rule is sometimes deemed to be fair since jobs are
processed in the order in which they arrive.

Shortest processing time (SPT). The job with the shortest processing time requirement goes
first. This rule tends to reduce work-in-process inventory, average throughput time, and average job
lateness.

Earliest due date (EDD). The job with the earliest due date goes first. This seems to work well
if the firm performance is judged by job lateness.

Critical ratio (CR). To use this rule one must calculate a priority index using the formula (due
datenow)/(lead time remaining). This rule is widely used in practice.

Least work remaining (LWR). An extension of SPT, this rule dictates that work be scheduled
according to the processing time remaining before the job is considered to be complete. The less
work remaining in a job, the earlier it is in the production schedule.

Fewest operations remaining (FOR). This rule is another variant of SPT; it sequences jobs
based on the number of successive operations remaining until the job is considered complete. The
fewer operations that remain, the earlier the job is scheduled.

Slack time (ST). This rule is a variant of EDD; it utilizes a variable known as slack. Slack is
computed by subtracting the sum of setup and processing times from the time remaining until the
job's due date. Jobs are run in order of the smallest amount of slack.

Slack time per operation (ST/O). This is a variant of ST. The slack time is divided by the
number of operations remaining until the job is complete with the smallest values being scheduled
first.

Next queue (NQ). NQ is based on machine utilization. The idea is to consider queues (waiting
lines) at each of the succeeding work centers at which the jobs will go. One then selects the job for
processing that is going to the smallest queue, measured either in hours or jobs.

Least setup (LSU). This rule maximizes utilization. The process calls for scheduling first the
job that minimizes changeover time on a given machine.

These rules assume that setup time and setup cost are independent of the processing sequence.
However, this is not always the case. Jobs that require similar setups can reduce setup times if
sequenced back to back. In addition to this assumption, the priority rules also assume that setup
time and processing times are deterministic and not variable, there will be no interruptions in
processing, the set of jobs is known, no new jobs arrive after processing begins, and no jobs are
canceled. While little of this is true in practice, it does make the scheduling problem manageable.
GANTT CHARTS

Gantt charts are named for Henry Gantt, a management pioneer of the early 1900s. He proposed
the use of a visual aid for loading and scheduling. Appropriately, this visual aid is known as a Gantt
chart. This Gantt chart is used to organize and clarify actual or intended use of resources within a
time framework. Generally, time is represented horizontally with scheduled resources listed
vertically. Managers are able to use the Gantt chart to make trial-and-error schedules to get some
sense of the impact of different arrangements.

There are a number of different types of Gantt charts, but the most common ones, and the ones
most appropriate to our discussion, are the load chart and schedule chart. A load chart displays the
loading and idle times for machines or departments; this shows when certain jobs are scheduled to
start and finish and where idle time can be expected. This can help the scheduler redo loading
assignments for better utilization of the work centers. A schedule chart is used to monitor job
progress. On this type of Gantt chart, the vertical axis shows the orders or jobs in progress while
the horizontal axis represents time. A quick glance at the chart reveals which jobs are on schedule
and which jobs are on time.

Gantt charts are the most widely used scheduling tools. However, they do have some limitations.
The chart must be repeatedly updated to keep it current. Also, the chart does not directly reveal
costs of alternate loadings nor does it consider that processing times may vary among work centers.

SCHEDULING SERVICE OPERATIONS

The scheduling of services often encounters problems not seen in manufacturing. Much of this is due
to the nature of service, i.e., the intangibility of services and the inability to inventory or store
services and the fact that demand for services is usually random. Random demand makes the
scheduling of labor extremely difficult as seen in restaurants, movie theaters, and amusement parks.
Since customers don't like to wait, labor must be scheduled so that customer wait is minimized. This
sometimes requires the use of queuing theory or waiting line theory. Queuing theory uses estimate
arrival rates and service rates to calculate an optimum staffing plan. In addition, flexibility can often
be built into the service operation through the use of casual labor, on-call employees, and cross-
training.

Scheduling of services can also be complicated when it is necessary to coordinate and schedule
more than one resource. For example, when hospitals schedule surgery, not only is the scheduling of
surgeons involved but also the scheduling of operating room facilities, support staff, and special
equipment. Along with the scheduling of classes, universities must also schedule faculty,
classrooms, labs, audiovisual and computer equipment, and students. To further complicate matters,
cancellations are also common and can add further disruption and confusion to the scheduling
process.

Instead of scheduling labor, service firms frequently try to facilitate their service operations by
scheduling demand. This is done through the use of appointment systems and reservations.

LOADING

here are two basic techniques for planning the control of a production system. One of these is
loading; the other is scheduling. Of the two loading is the easier to do. But scheduling can give more
control and is more detailed, although it is usually done for a shorter time period. A load is the
amount of work assigned to a facility work centre or operator, and loading is the assignment of work.
Loading does not specify the sequence in which the work is done or when it is to be done. Loading is
the aggregate assignment of jobs to specific entities. Inputs necessary for loading include: 232
Operations Management Routing Standard hours per operation or work centre Gross
machine/man-hour available Efficiency factors Due date. Loading is closely tied to capacity
planning in the sense that loading is the first indication that capacity levels need adjusting. 9.7.1
Steps in the Loading Typically, the loading process considered as a six step procedure. Step I through
4 is managerial decision steps that usually do not change week to week or month to month. The last
two steps are required on a periodic basis as an input to scheduling. 1. Choose load centers; 4.
Choose loading method Department To infinite capacity Group To finite capacity
Machine/Work-center Combination 2. Develop efficiency factors by load centers 5. Load schedule
orders into load centers 3. Determine capacity by centers 6. Unload completed hours Step 1: The
first step in machine loading is to choose the load centers. Some companies load by department
only if all the machines are interchangeable. When different machine centers within the department
have different capacities, the typical approach is to break the machines down into similar machine
groups. For example, all 24 inch boring machines might be included in the same group, if jobs are
interchangeable among the machines. The trend is to group as many machines together as possible
since doing so will reduce the complexity of the loading problem and tend to stabilize the load. Step
2: The second step is to develop efficiency factors by load centers/work stations. A load center with
two people is theoretically capable of 80 hours of production per week, but actual output might be
considerably less than 80 hours of production per week, indirect activities, or other nonvalue adding
activities. If they are working on incentives, they could be turning out more than 80 standard hours
of production. Step 3: The third step is to determine the gross capacity by load centers. This capacity
is either human or machine dependent. A center is machine dependent if all machines have at least
one operator assigned. A center is human dependent if there are more workers than machines and
machine stand idle while all workers are busy. With the number of people or machine as an input,
the gross capacity is the gross number of hours that the resources are available per planning period.
The centers capacity is then the gross capacity times of the efficiency factor. Step 4: The fourth step
is to choose the loading method, which may be either to finite or to infinite capacity. Infinite capacity
loading means showing the work for a work center in the time Material and Capacity Requirements
Planning (MRP and CRP) 233 period required, regardless of the work centers capacity. Finite capacity
loading means putting no more work into a work center than it can be expected to execute. Step 5:
The fifth step is to load the scheduled orders into the load centers while at the same time
considering the capacity and other restrictions. Step 6: The sixth step is to select the unloading
technique. Unloading is the process of removing the planned work from the work center load as jobs
are partially or totally completed. Manual systems may require shortcuts, such as considering a job
to be completed when the first lot of pieces is reported. This saves posting many partial lots and
recalculating load balances, but the load is always understated by the number of hours remaining on
jobs unloaded. Another short-cut relieves the load only when the last lot is completed, giving a load
constantly overstated by the hours completed but not removed. The number of hours to be
unloaded must be equal to the number of hours loaded for each job. A work center load, based on
the actual work order released, is a good short-tenn technique for highlighting the under load or
overloads on work centers and showing the need for overtime, temporary transfer, subcontracting or
other short-range adjustments. 9.7.2 Loading Concepts Why use loading? The major reason is that it
can predict some future events. A chart tells of an overload, and it tells this in advance. This same
chart can warn of excess capacity before the machine and workers are idle. Therefore, loading is
most useful to dispatchers, supervisors, and production schedulers planning shop work. Loading can
be used to smooth the workload from month to month or between the work centers. It is an aid in
identifying the critical departments or machines and in judging the effect of break-downs, rush
orders, and new products. It is also useful for documenting the requirements for more or less
capacity. INFINITE LOADING Infinite capacity loading means showing the work for a work center in
the time period required, regardless of the work centers capacity. When using infinite loading to
create the schedule, it is necessary to check the load to determine whether there is sufficient
capacity available in the time period in which the work is required. FINITE LOADING Finite capacity
loading means putting no more work into a work center than it can be expected to execute. Loading
to finite capacity by operation is more complex than infinite capacity. A facility activity that does not
go according to schedule may require that the load be recalculated, and therefore, loads will fall in
different time periods. Finite loading also requires that the company establish priority for loading the
jobs. In practice, finite loading is unsatisfactory since it assumes that the present capacity is all that
is available and does not show the time period in which overloads will occur if an attempt is made to
meet desirable schedules. COMBINATION LOADING A good machine loading system involves a
combination