This document provides an overview of operations scheduling. It begins by defining operations scheduling as ensuring customer requirements and performance targets are met. Operations scheduling helps cushion stable delivery systems from unstable markets through various mechanisms like inventory, order backlog, and capacity. The choice of scheduling system depends on factors like the delivery system/process type and whether demand is repeat or non-repeat. For non-repeat demand, bar charts or informal systems are used, while for repeat demand MRP, JIT, Lean and other systems are options. Different case studies on JIT and ERP implementations are also discussed. The document concludes by reflecting on integrating systems to support diverse business needs and selecting systems that best match requirements.

1. Alex Hill and Terry
Hill

2. Scheduling and executing operations
Alex Hill and Terry
Hill

3. 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

4. Lecture outline
• INTRODUCTION
• What is operations SCHEDULING?
• Operations scheduling SYSTEMS
• Critical REFLECTIONS
• SUMMARY

5. ©© AAlleexx H Hilli lal nadn dTe Trreyr Hryill Hill

6. What is operations
scheduling?
OPERATIONS SCHEDULING
Ensures both
CUSTOMER REQUIREMENTS
and PERFORMANCE TARGETS
are met

7. What is operations
scheduling?
WHAT
• Schedules RESOURCES to
• Meet CUSTOMER
requirements
HOW
• Cushions STABLE delivery
system
• From UNSTABLE markets

8. > KEY IDEA
Operations scheduling helps to
CUSHION the delivery system from the
INSTABILITY of the market

9. What is operations
scheduling?
CUSHIONING MECHANISMS
• 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

11. Operations scheduling
systems
Vary by delivery system and process type
Low VARIETY High
Non-repea
t
Repeat
Low VOLUME High

12. Operations scheduling
systems
Vary by delivery system and process type
Low VARIETY High
Non-repea
t
Low VOLUME High

13. Operations scheduling
systems
Non-repeat delivery systems and
processes
System type
Service or product type
Simple Complex
Bar charts
Network
analysis

14. Operations scheduling
sByasr tcehmarst

15. Operations scheduling
sByasr tcehmarst

16. > KEY IDEA
Where the demand is
NON-REPEAT and the delivery system
contains only a FEW ACTIVITIES, a
BAR CHART or INFORMAL scheduling
system is used

17. Operations scheduling
sNyestwteomrks analysis

18. Operations scheduling
sNyestwteomrks analysis

19. Operations scheduling
sNyestwteomrks analysis

20. Operations scheduling
sNyestwteomrks analysis

21. Operations scheduling
sNyestwteomrks analysis

22. Operations scheduling
sNyestwteomrks analysis

23. Operations scheduling
systems
Vary by delivery system and process type
Low VARIETY High
Non-repea
t
Repeat
Low VOLUME High

24. Operations scheduling
systems
Vary by delivery system and process type
Low VARIETY High
Repeat
Low VOLUME High

25. Operations scheduling
systems
Repeat delivery systems and processes
System
type
Scheduling philosophy Functional coverage
Plan-push
Demand
-pull
Constraint
-based
Operation
s
Operation
s related Other
MRP I
MRP II
ERP
JIT
Lean
OPT
TOC

26. Operations scheduling
systems
PHILOSOPHY
MRPI and MRPII
•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

27. Operations scheduling
sMyRsPteI amnds MRPII

28. > KEY IDEA
Requirements with an
INDEPENDENT PATTERN of demand
have to be forecast based on KNOWN
ORDERS

29. > KEY IDEA
Requirements with a
DEPENDENT PATTERN of demand can
be
CALCULATED

30. Operations scheduling
sMyRsPteI amnds MRPII

31. Operations scheduling
sMyRsPteI amnds MRPII

32. Operations scheduling
sMyRsPteI amnds MRPII

33. > KEY IDEA
MRPI:
• Determines FUTURE DEMAND for
independent items; and then
• Calculates REQUIREMENTS for
dependent items

34. > KEY IDEA
MRPII:
• Ties the MRPI ACTIVITIES in
• With other RELEVANT FUNCTIONS

35. Operations scheduling
systems

36. > KEY IDEA
ERP:
• Evolved out of MRPII and
• Covers the WHOLE ORGANISATION

37. CASE 8.1
IT SYSTEM CHANGES
AT DELL
1.Why did the SAP R/3
introduction FAIL?
2.Why is the later installed
system WORKING?

38. CASE 8.1
Questio
n
IT SYSTEM CHANGES AT DELL
Answer
SAP R/3
failed
Later
system
worked
• 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
• Each system BEST-FITS its requirements
• STAGGERED introduction
• Easier to CUSTOMISE each system
separately

39. Operations scheduling
sJIyTstems
PHILOSOPHY
PRE-REQUISITES
IMPLEMENTATIO
N

40. Operations scheduling
sJIyTstems
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

41. Operations scheduling
sJIyTstems
PRE-REQUISITES
•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

42. Operations scheduling
sJIyTstems
IMPLEMENTATION
•PHYSICAL change
- Layout and balanced flow
•Staff INVOLVEMENT
- Broader role
- Responsibility for quality and
improvement

43. Operations scheduling
sJIyTstems

44. Operations scheduling
sJIyTstems

45. > KEY IDEA
•Whereas MRPI is PLAN-PUSH,
•JIT is a DEMAND-PULL system

46. 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?

47. JIT SYSTEM
DEVELOPMENTS AT
NISSAN
Question Answer
Suits JIT
Advantages
Disadvantag
es
• 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
• Low INVENTORY for Nissan and Sommer-Allibert
• Reduced HANDLING COSTS delivered to assembly
line
• Reduced VARIABLE COSTS from stable delivery
system
• Increased TRANSPORTATION COSTS as multiple
deliveries
• Increased ENVIRONMENTAL COSTS as multiple
deliveries
• Increased RISK for Nissan as more dependent on
supplier

48. Operations scheduling
sLeyasntems
PHILOSOPHY
• 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

49. Operations scheduling
sLeyasntems

50. Operations scheduling
sLeyasntems

51. Operations scheduling
sOyPsTt eanmds TOC
PHILOSOPHY
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

52. > KEY IDEA
CAPACITY CONSTRAINTS govern the
rate of FLOW in operations

53. Scheduling and executing
operations
Planning and control
Mission
Impossi
ble(199
8)
Gung Ho
(1986)
Spy mission Casino

54. Scheduling and executing
operations
Planning and control
Film clip Spy Mission (Planning)
Film
Title
Director
(year)
Mission impossible
De Palma (1996)
Clip Start
Finish
00:03:41
00:07:33
What clip shows A team planning a spy mission
Key learning
objective
The methods used to plan a project
manufacturing process

55. Scheduling and executing
operations
Planning and control
Film clip Spy Mission (Control)
Film
Title
Director
(year)
Mission impossible
De Palma (1996)
Clip Start
Finish
00:10:17
00:13:01
What clip shows A team executing a spy mission
Key learning
objective
The methods used to control a project
manufacturing process

56. Scheduling and executing
operations
Planning and control
Film clip Casino (Planning)
Film
Title
Director
(year)
Casino
Scorsese (1995)
Clip Start
Finish
00:04:57
00:09:33
What clip shows
How 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

57. Scheduling and executing
operations
Planning and control
Film clip Casino (Control)
Film
Title
Director
(year)
Casino
Scorsese (1995)
Clip Start
Finish
00:21:00
00:23:09
What clip shows
The 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

58. Scheduling and executing
operations
Process type
Low VARIETY High
Low VOLUME High

59. Scheduling and executing
operations
Planning and control
Questio
n
Spy mission Casino
Planning
methods
Controlling
methods

60. Scheduling and executing
operations
Process type

61. Scheduling and executing
operations
Questio
n
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

62. 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

63. Summar
y• 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

64. ©© AAlleexx H Hilli lal nadn dTe Trreyr Hryill Hill

65. 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

66. 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

67. 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

68. 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

69. 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

70. 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

71. 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

72. 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

73. 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)

74. 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)

75. CASE FOR TUTORIAL
ASH ELECTRICS