Most people are familiar with scheduling in their personal lives – setting aside time

for specific activities, organising events, and so on. But what about the business
world? What is scheduling in operations management, and what role does it play in
production processes? This blog post will explore the answers and more. We’ll
discuss the different scheduling methods used in operations management and the
associated benefits and challenges. By the end, you should better understand what
scheduling is and how it can be used to improve production processes.

What Is Production Process Scheduling?

In operations management and production processes, scheduling is the process of

planning, coordinating, and controlling the sequence of events and activities within
a production process. Scheduling aims to ensure that resources are used optimally
and effectively to meet customer demands. 

There are three primary types of schedules used in production processes: 

1. Master Production Schedule (MPS): It is a plan that indicates when each

item in the product mix will be produced. 
2. Production Activity Control (PAC): The PAC schedule tracks the progress
of individual production orders through the manufacturing process. 
3. Capacity Planning: Capacity planning schedules ensure enough capacity is
available to meet customer demand. 

Scheduling is a critical component of operations management as it helps ensure

that products are manufactured promptly and efficiently. When done correctly, it
can help to minimise costs and maximise profits.

What is Scheduling in Operations Management?

Scheduling in Operations Management is the process of planning, coordinating,

and controlling the use of resources to complete a production process. It involves
deciding when to start and finish each task, which resources to use for each task,
and the sequence in which to carry out the tasks. In manufacturing, scheduling in
operations management is often done using computer software that considers
various constraints such as available resources, customer demand, and production
capacity.

Common Production Scheduling KPIs

A few key performance indicators (KPIs) are commonly used to measure the
effectiveness of production scheduling in operations management and
manufacturing processes. Here are six of the most common KPIs: 

1. On-time delivery performance: This KPI measures how well the

production schedule meets customer demand in terms of delivery timing.
The goal is to deliver as many products on time (or early) as possible.
2. Setup time: This KPI measures the time taken to prepare a machine for
production. The goal is to minimise setup time so the production process can
be started more quickly.
3. Cycle time: This KPI measures the time it takes to produce one product
unit. The goal is to minimise cycle time so that more products can be
produced in a given period.
4. Changeover time: This KPI measures the time it takes to change from
producing one product to another. The goal is to minimise changeover time
so that production can be more flexible and adapt to changing customer
demand.
5. scrap rate: This KPI measures the percentage of products that are scrapped
or rejected due to defects or poor quality. The goal is to minimise the scrap
rate so fewer resources are wasted and more products meet customer
standards.
6. Downtime: This KPI measures the amount of time when a machine is not in
use due to maintenance, repairs, etc.

Explain Stages of Production Scheduling

There are four main stages of production scheduling: planning, sequencing,
releasing, and monitoring.

1. Planning: The first stage of production scheduling is planning. In this stage,

managers develop a master schedule that outlines the desired output for the
upcoming period. This schedule considers factors such as customer demand,
available resources, and lead times for each product. This stage aims to
create a feasible plan that will meet customer demand without overloading
the system.
2. Sequencing: The second stage of production scheduling is sequencing. In
this stage, managers determine the specific order in which products will be
produced. This sequence should consider factors such as product
dependencies and machine capacities. The goal of this stage is to create an
efficient production plan that minimises bottlenecks and maximises
throughput.
3. Releasing: The third stage of production scheduling is releasing. In this
stage, managers assign specific due dates to each production order. This
release date should consider the lead time for each product and any slack
time in the system. This stage aims to ensure that each order is completed on
time and that there is no build-up of WIP Inventory.
4. Forecasting: The first stage of production scheduling is forecasting, which
involves estimating the future demand for a service or product. This can be
done using statistical methods, market research, or other forecasting
techniques.
5. Capacity planning: The second stage of production scheduling is capacity
planning, which involves determining how much capacity is needed to meet
the forecasted demand. It includes considering both the physical and human
resources that will be required.
6. Scheduling: The third stage of production scheduling is creating the
schedule. This includes deciding what order tasks need to be completed in
and when they should be started and finished. It also includes assigning
resources to tasks and ensuring that all constraints are considered.
7. Monitoring and control: The fourth stage of production scheduling is
monitoring and control, which involves ensuring that the schedule is
followed and that any deviations are corrected. It can be done through
regular status reports, earned value management, or other monitoring
techniques.
8. Adjustments: The fifth stage of production scheduling is adjustments,
which involve making changes to the schedule as needed in response to
 changes in demand or other factors. This might include rescheduling tasks,
reassigning resources, or adding new tasks to the schedule.

Also Read: What Is The Scope Of Operations Management?

Types of Production Scheduling

Different types of production schedules are needed to accommodate the different

types of production systems. The three most common types of production
scheduling are make-to-stock (MTS), make-to-order (MTO), and mixed mode.

Make-to-Stock Production Scheduling: 

MTS aims to produce items in advance so that they can be stocked and ready for
sale when customer demand arises. This type of production is typically used when
demand is relatively stable and predictable, such as with fast-moving consumer
goods. To maintain efficient inventory levels, MTS schedulers must understand
both the lead time required to produce an item and the expected rate of customer
demand. 

Make-To-Order Production Scheduling: 

In contrast to MTS, where goods are produced in advance of customer orders,

MTO schedulers wait until they receive a customer order before starting
production. This system is often used for custom or personalised products where
each unit must be made specifically for the customer who ordered it. While this
approach eliminates stock shortages, it can result in long lead times if capacity
constraints exist within the manufacturing process. 

Mixed Mode Production Scheduling:

Mixed-mode production scheduling is the process of creating a production

schedule that includes both manufacturing and assembly operations. This type of
scheduling can be used to improve efficiency and flexibility in the manufacturing
process. Mixed-mode production scheduling can be beneficial because it facilitates
coordination between manufacturing and assembly operations. This can lead to
improved quality control, shorter lead times, and reduced inventory levels. In
addition, mixed-mode production scheduling can help reduce manufacturing costs
by reducing waste and improving the utilisation of resources.
What Are The Steps To Optimise Scheduling in Operations Management and
Production?

To optimise production scheduling, businesses need to consider several factors,

including:

 The type of products or services being produced

 The number of products or services needed
 The available resources (labour, materials, equipment)
 The time required to complete each production process
 Production constraints (e.g., due dates, capacity limits)

Once all of these factors have been considered, businesses can develop a
production schedule that outlines when each step in the production process should
be completed. This schedule can then be used to ensure that resources are utilised
efficiently and that deadlines are met.

What Are The Benefits of Scheduling in Operations Management and

Production?

The benefits of production scheduling are varied but can be broadly outlined as
follows:

Improved Coordination:
Improved coordination between different departments and functions is one of the
main benefits of production scheduling. Having a centralised view of all upcoming
production tasks makes it much easier to ensure that everyone is on the same page
and running towards similar goals and that no bottlenecks are formed. It can lead to
increased efficiency and output and improved communication across the board.

Increased capacity utilisation:

Production scheduling can increase capacity utilisation by helping to ensure that all
production resources are used as efficiently as possible. By reducing downtime and
maximising the use of available resources, production schedules can help to
improve overall productivity and reduce costs. In addition, effective production
scheduling can help to improve customer satisfaction by ensuring that orders are
delivered on time and as promised.

Improved quality control:

Improved quality control is one of the main benefits of production scheduling. By

better understanding and anticipating customers’ needs, businesses can plan their
production accordingly and ensure that a higher quality product is delivered. In
addition, by reducing waste and maximising resources, businesses can also save
money on production costs.

Reduced inventory levels:

Reduced inventory levels are one of the main benefits of production scheduling.
By reducing the amount of inventory on hand, businesses can save money on
storage costs and reduce the risk of stockouts. In addition, having a schedule in
place can help to ensure that orders are filled promptly, and that production line
disruptions are minimised.

Lower overall costs:

Production scheduling can lower overall costs by reducing the time and resources
required to produce a product or service. By better understanding the production
process and what is required at each stage, businesses can plan their work more
efficiently and avoid unnecessary waste. This can lead to reduced production
times, less downtime, and improved quality control. In turn, these efficiencies can
save money on materials, labour, and other operating costs.

Also Read: What Are The Objectives Of Operations Management?

What Are The Challenges of Scheduling in Operations Management and
Production?

Many challenges can arise when production schedules, some more common than
others. Here are a few examples of potential challenges:

1) Not having enough information: To create an effective schedule, you need

access to accurate and up-to-date information. It includes knowing what raw
materials are available, the lead times for each component/part, etc. If any of this
information needs to be included or updated, it can make it very difficult to create
an effective schedule.

2) Changing priorities: Once a schedule is created, it can be difficult to change it

without disrupting the entire production process. This is often due to dependent
tasks – if one task is changed, it can have a ripple effect on other tasks down the
line. As such, schedules often need to be flexible to accommodate changes in
priorities or unexpected delays/problems.

3) Long lead times: Some products may have components with long lead times
(e.g., weeks or even months). This can make it difficult to accurately predict when
the finished product will be ready for shipment. In these cases, it may be necessary
to create a “rolling” schedule that covers a longer period.

What Are The Roles Of a Production Manager?

A production manager is responsible for the day-to-day operations of a

manufacturing or production facility. They oversee the entire production process,
from raw materials to the final finished products. Production managers typically
work in industrial and manufacturing settings.

A production manager’s primary role is to ensure that the manufacturing process

runs smoothly and efficiently. They develop schedules and coordinate workers and
resources to meet demand. Production managers also troubleshoot problems when
they arise, ensuring that production goals are met.

In addition to managing the day-to-day operations of a facility, production

managers also play a key role in planning and strategy. They develop long-term
plans for meeting demand, increasing efficiency, and expanding capacity.
Production managers may also be involved in decisions about new product
development and changes to the manufacturing process.
Aggregate Planning – Definition,
Importance, Strategies And Advantages
August 24, 2020 By Hitesh Bhasin Filed Under: Operations Management

Definition:

Aggregate planning is a planning method in the production process which is

also considered a marketing activity used to determine the required resource
capacity to meet expected demand. Aggregate planning

The aggregate planning is done in advance of 6 – 18 months and includes a

combination of sub-contracting, sourcing, outsourcing, employment, labor
overtime, amount of inventory and planned output to match demand and
supply cost-effectively.

Importance of aggregate planning

Aggregate planning is a proven technique that brings an element of foresight
and stability into manufacturing. It helps the management to achieve the long-
term objectives of a company. The importance of aggregate planning include-

 Creates a satisfied and happy workforce

 Reduce changes in the levels of the workforce
 Helps to determine resources for the short-term
 Helps in maximum utilization of space
 Meets the overall goals and objectives of a company
 Helps to adjust capacity to meet demand
 Minimizes costs associated with inventory stocking
 Reduce investments related to various inventories
 Matching demand with supply and minimizing the waiting time for
the customers to maximize customer service
 Offers better customer value
 Proper utilization of production facilities
  Maximum usage of various types of equipment
 Reducing the changes in production rates
 Removes variable cost and improves the bottom line of the
financial statement for achieving the business goals of an
organization

The aggregate planning strategies include-

 1. Level strategy

 This type of aggregate planning deals with producing goods of similar

quantities over equal duration. This is done to handle a peak in market
demand by filling out back orders or by sending the extra products to
inventory. The level strategy is considered a traditional aggregate
planning method that maintains a steady production rate as well as the
level of the workforce by continuing consistent human resources
and production in the organization.
 It is best suited where the inventory carrying costs are not high and are
adopted by mainly manufacturing companies. The advantages of using
level strategy are well-trained workforce as their changes are not so
frequent, experienced workers and a low rate of absenteeism and
employee turnover. An essential disadvantage of level strategy is
building up inventory costs during the lean period when the demand is
low.
 2. Chase strategy

 The chase strategy of aggregate planning puts its onus on reducing

inventory. It keeps pace with demand fluctuations by varying either
actual level of output or the workforce number. It is considered not as
rigid as a level strategy as it allows room for some deviation from the
conventional approach. This methodology helps to minimize waste by
receiving goods when needed. It often leads to stressed employees.
 This strategy is popular in several industries like hospitals, hospitality
business and educational centers like schools. The advantage of chase
strategy is high flexibility to meet the fluctuations in demand and the
disadvantages related to the strategy include high costs associated with
hiring as well as training the workforce.
  Hybrid strategy for an aggregate planning

 As the name indicates, the Hybrid strategy is an integration of both level

and chase strategies to get a better result. It maintains a sufficient
 balance between stock level, recruiting, termination and production rate.
In the hybrid strategy of aggregate planning, the organizations build up
inventory before rising demands. It uses backorders to level with high
peak periods.
 It can easily cover short-term peaks by hiring workers temporarily or by
subcontracting production. Hiring, lay-off and reassigning workers is a
normal part of the hybrid strategy.

Advantages
The advantages associated with aggregate planning include-

 It helps the organization in dealing with production facilities in a

lean manner. If a manufacturing facility has an excess of finished
products, then it is not suitable for it. The chance of product
damage before reaching the end target is higher and this means
loss. Moreover, excess inventory costs mean additional expense
for the company. The only way to minimize these costs is by
implementing a proper aggregate planning process.
 The process helps to develop effective strategic plan as well as
relationships with distributors and suppliers. It also assists in
making developing accurate market research
 The planning helps in the optimization of inventory. Carrying
excessive inventory will mean additional expenses for a
manufacturing company. It also results in more storage space to
keep it properly because the chances of damage increase if the
storage space is not proper. The organization will also have to
invest in more resources, labor and equipment to manage the
inventory and for its movement. The process makes an adequate
estimation for the anticipated inventory that will be sufficiently able
to meet projected demands.
 An essential advantage is that it serves as a useful tool for making
viable forecasts about product demand. A business entity is now
able to make predictions about staff requirements, for instance, the
number of additional workers it will need temporarily or the number
of employees it will need to lay-off. Proper forecasting helps the
company to fill the positions with temporary staff from agencies.
The need for additional hires is easily met without other expenses
 that are part of the full-time workforce. The aggregate planning
method helps the organization to make considerable savings in
terms of both money and time that would have to be spent on the
hiring and training process.
 It helps to adjust capacity so that it can meet demands
 The aggregate planning process helps to calculate capacity, for
instance, how many units can be produced daily or in a week or a
month.
 Production orders cannot be constant throughout the year. It will
vary and this makes it difficult for the business entities to keep up
with a similar production plan for all times. The aggregate planning
process takes this thought into consideration and allows for
contingency measures. These are put in place so that the
manufacturing facilities can accommodate the changes that occur
in production as well as orders from the customers. The
organization keeps shifting between the level strategy, chase
strategy and hybrid strategy to keep up with the changes.
 It helps the organization to identify the best options so that it can
meet the demands easily.
 It assists in knowing about the inefficiencies that exist within the
organization
 It helps to determine resources for instance amount of raw
materials on hand, availability of total machine hours and the total
number of workers along with products in progress, packaging
materials, and tools required for manufacturing finished goods
 An advantage of the planning process is that it helps to project
demand and figure out the units in need for the short-term by
factoring in advertising campaigns, special pricing, and promotions.
 It encourages the optimized utilization of space. The facilities that
are used by organizations for manufacturing purposes are too
costly and it is not feasible to own or rent it at all times. Besides
paying for space, an organization also has to pay for maintenance
and utilities. The planning helps the company to avoid any scenario
where the space is unused for an extended period and it has to
bear unnecessary expenses
 It helps to offer optimized value to both the direct buyers from
which it is getting raw materials etc. and end customers to which it
will sell the products. The process reduces the production costs
and this helps them to pass on savings. Ultimately the end
consumer gets the best quality products at the minimum price
levels
MASTER SCHEDULING
A master production schedule (MPS) is the overall plan to assess the production of
your finished goods, detailing what you need to produce, how much you need to
produce, and when you need to produce it. 
In short, it contains any relevant information related to production, including time
frames, such as your manufacturing lead time. Here is a quick overview of the master
production schedule process steps you’ll need to follow when putting this together:  

Here is a quick overview of the master production schedule process steps you’ll need
to follow when putting this together:  
1. Map your demand and make a demand plan. 
2. Work out the raw materials you need and get your supply chain up and running
with production planning processes. 
3. Now you’re ready to develop a master production schedule proposal. This is
like a rough draft to see if your production schedule is achievable. 
4. Use a rough-cut capacity planning technique to calculate if you can meet your
proposed MPS manufacturing. Continue using this technique to continuously
assess if your capacity can meet demand when your master production schedule
is in action. 
5. If your master production schedule proposal is doable, you then evaluate it with
regard to customer service, effective use of resources, and inventory
investment.  
Once you’ve implemented your master schedule, every employee on your shop
floor is clear about what needs to be produced each week. Your master production
schedule ensures everyone in your business is working towards the same goal. The
master scheduler — the MPS architect — can then forecast relationships between
demand and supply so you know when to increase or decrease production.  

functions of a master
production schedule
1. Translating production plans
2. Evaluating alternative schedules
3. Produce capacity requirements
4. Facilitating information processing
5. Utilization of capacity

The other master production schedule objectives

are: 
1. Makes your demand flow smoother  
2. Keeps your lead-time low  
3. Standardizes communication across your business  
4. Helps you to prioritize requirements  
5. Helps keep production stable  
6. Generates workable plans for your manufacturing orders  
7. Assists in making accurate purchases and transfer orders 

The components of a master

production schedule
Aggregate planning is a planning method in the production process which is
also considered a marketing activity used to determine the required resource
capacity to meet expected demand. Aggregate planning

The aggregate planning is done in advance of 6 – 18 months and includes a

combination of sub-contracting, sourcing, outsourcing, employment, labor
overtime, amount of inventory and planned output to match demand and
supply cost-effectively.

Scheduling in Operations Management is the process of planning, coordinating,

and controlling the use of resources to complete a production process. It involves
deciding when to start and finish each task, which resources to use for each task,
and the sequence in which to carry out the tasks. In manufacturing, scheduling in
operations management is often done using computer software that considers
various constraints such as available resources, customer demand, and production
capacity.
A master production schedule (MPS) is the overall plan to assess the production of
your finished goods, detailing what you need to produce, how much you need to
produce, and when you need to produce it. 
In short, it contains any relevant information related to production, including time
frames, such as your manufacturing lead time. Here is a quick overview of the master
production schedule process steps you’ll need to follow when putting this together: