Download - 8 -scheduling_and_executing_operations
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Alex Hill and Terry Hill
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Scheduling and executing operationsAlex Hill and Terry Hill
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Learning objectives
• Understand NATURE of capacity and the mix of RESOURCES involved
• Appreciate the PURPOSE of managing capacity and the IMPACT of having too little or too much capacity
• Explain how to DEFINE and MEASURE capacity in different organisations
• Understand the FACTORS involved in determining the level of capacity required
• Explain the key STEPS in capacity planning
• Recognise the key FACTORS in managing capacity
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Lecture outline
• INTRODUCTION
• What is operations SCHEDULING?
• Operations scheduling SYSTEMS
• Critical REFLECTIONS
• SUMMARY
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© Alex Hill and Terry Hill© Alex Hill and Terry Hill
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Ensures bothCUSTOMER REQUIREMENTS
and PERFORMANCE TARGETSare met
OPERATIONS SCHEDULING
What is operations scheduling?
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What is operations scheduling?
•Schedules RESOURCES to•Meet CUSTOMER
requirements
•Cushions STABLE delivery system
•From UNSTABLE markets
HOW
WHAT
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> KEY IDEA
Operations scheduling helps toCUSHION the delivery system from the INSTABILITY of the market
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•BASIC mechanisms- Order backlog- Inventory; or- A combination of the two•SECONDARY mechanisms- Planned capacity- Forecasting; and- Demand management•SUPPLEMENTARY
mechanisms- Reactive capacity - e.g.
overtime
What is operations scheduling?
CUSHIONING MECHANISMS
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Operations scheduling systems
Low VOLUME High
Hig
hV
AR
IET
YLo
w
Non-repea
t
Repeat
Vary by delivery system and process type
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Operations scheduling systems
Low VOLUME High
Hig
hV
AR
IET
YLo
w
Non-repea
t
Vary by delivery system and process type
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Operations scheduling systems
System typeService or product type
Simple Complex
Bar charts
Network analysis
Non-repeat delivery systems and processes
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Operations scheduling systemsBar chart
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Operations scheduling systemsBar chart
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> KEY IDEA
Where the demand isNON-REPEAT and the delivery system contains only a FEW ACTIVITIES, aBAR CHART or INFORMAL scheduling system is used
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Operations scheduling systemsNetwork analysis
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Operations scheduling systemsNetwork analysis
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Operations scheduling systemsNetwork analysis
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Operations scheduling systemsNetwork analysis
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Operations scheduling systemsNetwork analysis
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Operations scheduling systemsNetwork analysis
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Operations scheduling systems
Low VOLUME High
Hig
hV
AR
IETY
Low
Non-repea
t
Repeat
Vary by delivery system and process type
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Operations scheduling systems
Low VOLUME High
Hig
hV
AR
IET
YLo
w
Repeat
Vary by delivery system and process type
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Operations scheduling systems
System type
Scheduling philosophy Functional coverage
Plan-push
Demand-pull
Constraint-based
Operations
Operations related
Other
MRP I
MRP II
ERP
JIT
Lean
OPT
TOC
Repeat delivery systems and processes
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Operations scheduling systems
•Identify DEMAND for services and products- Determine for known orders- Forecast for unknown orders•Calculate REQUIREMENT for dependent items•Deliver services and products in line with
FORECAST
PHILOSOPHY
MRPI and MRPII
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Operations scheduling systemsMRPI and MRPII
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> KEY IDEARequirements with anINDEPENDENT PATTERN of demand have to be forecast based on KNOWN ORDERS
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> KEY IDEARequirements with a DEPENDENT PATTERN of demand can beCALCULATED
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Operations scheduling systemsMRPI and MRPII
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Operations scheduling systemsMRPI and MRPII
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Operations scheduling systemsMRPI and MRPII
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> KEY IDEA
MRPI:• Determines FUTURE DEMAND for independent items; and then• Calculates REQUIREMENTS for dependent items
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> KEY IDEA
MRPII:• Ties the MRPI ACTIVITIES in• With other RELEVANT FUNCTIONS
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Operations scheduling systems
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> KEY IDEA
ERP:• Evolved out of MRPII and• Covers the WHOLE ORGANISATION
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CASE 8.1
IT SYSTEM CHANGESAT DELL
1.Why did the SAP R/3 introduction FAIL?
2.Why is the later installed system WORKING?
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CASE 8.1
Question
Answer
SAP R/3 failed
Later system worked
• Each system BEST-FITS its requirements• STAGGERED introduction• Easier to CUSTOMISE each system
separately
IT SYSTEM CHANGES AT DELL
• ADVANTAGES of system:- Tried, tested, cheaper and covers all
functions• DISADVANTAGES of system:- Standardised- Business has to change to meet system- Difficult to install- Unable to change with business
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Operations scheduling systemsJIT
IMPLEMENTATION
PHILOSOPHY
PRE-REQUISITES
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Operations scheduling systemsJIT
PHILOSOPHY
•REVERSE the flow of information- Each stage places requirement on previous
stage•Minimise INVENTORY•Eliminate BOTTLENECKS- Minimise process uncertainty•Reduce SET-UP times- So can deliver small batches of services and
products
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Operations scheduling systemsJIT
•Suits REPETITIVE operations- Normally high volume and low variety•Must be introduced and developed by
END-USER- In supply chain•FIRM schedules- Allowing sufficient time to deliver to next
stage•LOCAL suppliers- More responsive to changes
PRE-REQUISITES
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Operations scheduling systemsJIT
IMPLEMENTATION
•PHYSICAL change- Layout and balanced flow•Staff INVOLVEMENT- Broader role- Responsibility for quality and
improvement
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Operations scheduling systemsJIT
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Operations scheduling systemsJIT
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> KEY IDEA
•Whereas MRPI is PLAN-PUSH,•JIT is a DEMAND-PULL system
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CASE 8.2
JIT SYSTEM DEVELOPMENTS AT NISSAN
1.Why does it suit a JIT scheduling system?
2.What are its ADVANTAGES of this system?
3.What are its DISADVANTAGES?
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Question Answer
Suits JIT
Advantages
Disadvantages
• REPETITIVE high volume• VARIETY is known and fixed• END-USER (NIssan) is driving introduction and
development• FIXED schedules• LOCAL suppliers (Sommer-Allibert)
CASE 8.2
• Increased TRANSPORTATION COSTS as multiple deliveries
• Increased ENVIRONMENTAL COSTS as multiple deliveries
• Increased RISK for Nissan as more dependent on supplier
JIT SYSTEM DEVELOPMENTS AT NISSAN
• Low INVENTORY for Nissan and Sommer-Allibert• Reduced HANDLING COSTS delivered to assembly
line• Reduced VARIABLE COSTS from stable delivery
system
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•Invest in PROCESS- Rather than inventory•Improve by EXPOSING PROBLEMS - Through inventory reduction•Give direct staff responsibility for INDIRECT
ACTIVITIES- Scheduling, quality conformance and
improvement•Eliminate WASTE- Inventory, movement and non-value adding•Reduce SET-UP- Deliver small batches of services or products
Operations scheduling systemsLean
PHILOSOPHY
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Operations scheduling systemsLean
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Operations scheduling systemsLean
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1.Identify the system’s CONSTRAINTS- Physical or non-physical • Identify constraints affecting the OVERALL
OUTPUT of the organisation•Decide how to maximise THROUGHPUT with
the current constraint(s)•Don’t fully load the NON-CONSTRAINT
resources•Manage the CONSTRAINTS- Keep them BUSY- Identify ways to IMPROVE them•When constraints are relaxed return to STEP
1
Operations scheduling systemsOPT and TOC
PHILOSOPHY
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> KEY IDEA
CAPACITY CONSTRAINTS govern the rate of FLOW in operations
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CasinoSpy mission
Planning and control
Scheduling and executing operations
Mission
Impossible(1998)
Gung Ho
(1986)
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Film clip Spy Mission (Planning)
FilmTitleDirector (year)
Mission impossibleDe Palma (1996)
ClipStartFinish
00:03:4100:07:33
What clip shows A team planning a spy mission
Key learning objective
The methods used to plan a project manufacturing process
Planning and control
Scheduling and executing operations
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Film clip Spy Mission (Control)
FilmTitleDirector (year)
Mission impossibleDe Palma (1996)
ClipStartFinish
00:10:1700:13:01
What clip shows A team executing a spy mission
Key learning objective
The methods used to control a project manufacturing process
Planning and control
Scheduling and executing operations
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Film clip Casino (Planning)
FilmTitleDirector (year)
CasinoScorsese (1995)
ClipStartFinish
00:04:5700:09:33
What clip showsHow a casino processes money from the gambling tables in Las Vegas to the casino bosses in Kansas City
Key learning objective
The methods used to plan a high volume batch manufacturing process
Planning and control
Scheduling and executing operations
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Film clip Casino (Control)
FilmTitleDirector (year)
CasinoScorsese (1995)
ClipStartFinish
00:21:0000:23:09
What clip showsThe casino being run and managed to make sure that people aren’t cheating or stealing money
Key learning objective
The methods used to control a high volume batch manufacturing process
Planning and control
Scheduling and executing operations
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Low VOLUME High
Hig
hV
AR
IET
YLo
wProcess type
Scheduling and executing operations
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Question
Spy mission Casino
Planning methods
Controlling methods
Planning and control
Scheduling and executing operations
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Process type
Scheduling and executing operations
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Question
Spy mission Casino
Planning methods
Controlling methods
• Project schedule• Bar chart• Tasks for individuals• Overall sequencing• of activities
• Batch schedule• Resource loading• - Front office tables• - Back office counting• Maintain flow of money
• Video surveillance - Remote - Between individuals• Marking target
• Video surveillance• People on shop floor• Ex-cheats in balcony
Planning and control
Scheduling and executing operations
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Critical reflections
• Need to INTEGRATE all systems used within a business
• Each system needs to support DIVERSE needs
- Multiple MARKETS- Multiple SERVICES and PRODUCTS- Multiple ORDER-WINNERS and QUALIFIERS
• Must select system that best SUPPORTS- BUSINESS requirements- MARKET requirements- Recognise TRADE-OFFS
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Summary
• Scheduling systems CUSHION- STABLE delivery systems from- UNSTABLE markets
• Alternative cushioning METHODS- BASIC - inventory, order-backlog, capacity- SECONDARY - plan capacity, forecast, manage
demand- SUPPLEMENTARY - reactive capacity
• Choice of scheduling SYSTEM - Varies by delivery system and process type
• NON-REPEAT scheduling systems- Bar charts, network analysis
• REPEAT scheduling systems- MRPI, MRP II, ERP, JIT, Lean, OPT, TOC
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© Alex Hill and Terry Hill© Alex Hill and Terry Hill
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Revision questions
1 Which of the following is NOT a way to cushion a stable delivery system from unstable markets:a) Inventory or excess capacity
b) Long-term changes in capacity
c) Order backlog
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Revision questions
1 Which of the following is NOT a way to cushion a stable delivery system from unstable markets:a) Inventory or excess capacity
b) Long-term changes in capacity
c) Order backlog
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Revision questions
2 Which of the following is NOT a factor that influences the choice of scheduling system:
a) The complexity of the service or product
b) The choice of delivery system or process
c) The nature of competition in the market
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Revision questions
2 Which of the following is NOT a factor that influences the choice of scheduling system:
a) The complexity of the service or product
b) The choice of delivery system or process
c) The nature of competition in the market
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Revision questions
3 Which of the following is NOT a system used to schedule and manage operations:
a) Statistical process control
b) Network analysis
c) Enterprise resource planning
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Revision questions
3 Which of the following is NOT a system used to schedule and manage operations:
a) Statistical process control
b) Network analysis
c) Enterprise resource planning
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Revision questions
4 Which of the following is NOT a pre-requisite for implementing JIT:
a) It must be end-user driven
b) Operations schedules must be flexible
c) It is most suited to repetitive, high volume and low variety operations
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Revision questions
4 Which of the following is NOT a pre-requisite for implementing JIT:
a) It must be end-user driven
b) Operations schedules must be flexible
c) It is most suited to repetitive, high volume and low variety operations
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Revision questions
5 Waste is an activity that:
a) Customer is not willing to pay for
b) Customer is willing to pay for
c) Both a) and b)
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Revision questions
5 Waste is an activity that:
a) Customer is not willing to pay for
b) Customer is willing to pay for
c) Both a) and b)
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CASE FOR TUTORIAL
ASH ELECTRICS