MD 021 - Management and Operations

Lean Systems/Scheduling
Outline

• Definition of a just-in-time (JIT) system

• Characteristics of JIT systems

• Types of scheduling

• Scheduling performance measures

• Priority sequencing (dispatching) rules

• Scheduling in services

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 JIT System

Definition
Just-in-time (JIT) is a dependent demand production control system designed
to produce goods or services as needed and minimize inventories.

Environments for Effective JIT

• Manufacturing: Firms that tend to have highly repetitive manufacturing
processes, well-defined material flows, and reasonably high volumes use
JIT systems because the pull method allows closer control of inventory and
production at the work stations.
• Services: Firms that tend to have repetitive operations, reasonably high
volumes, and deal with tangible items can benefit from JIT systems.
• In general, JIT works well in stable and predictable environments because
there is little forward visibility.

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 Characteristics of JIT Systems

• Pull method

• Consistently high quality

• Small lot sizes

• Short setup times

• Uniform workstation loads

• Standardization of components and work

methods

• Close supplier ties

• Flexible work force

• Product focus

• Automated production

• Preventive maintenance

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 Enabling Customization using Standardized
Operations

Product or service customization has negative effects on

both:

• Predictability of demand
• Predictability of operations

Since uncertainty in operations requires extra resources,

customization is inherently less efficient than
standardization.

However, it is sometimes possible to increase operational

efficiency even with customization using standardization
strategies. Standardization strategies include:

• Part standardization – Maximize component

commonality across products

• Process standardization – Delay customization as late as

possible

• Product standardization – Carry a limited number of

products in inventory

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 Types of Scheduling

• Operations scheduling - Assigns workers to tasks or jobs to machine work

centers. Operations schedules are short-term plans designed to implement the
master production schedule.

• Work-force scheduling - Determines when human resources are available

for work

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 Common Performance Measures for Operations Schedules

• Job flow time - The time a job spends in the shop

• Makespan - For a group of jobs, the time between the start of the first job
and the finish of the last job

• Past due
• The amount of time late, average job lateness
• The percentage of jobs completed late

• Work-in-process or pipeline inventory expressed in units, number of jobs,

dollar value, or weeks of supply

• Total inventory - The sum of scheduled receipts and on-hand inventory

• Utilization - The percentage of paid time spent productively

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 Priority Sequencing Rules

Time Remai ning to Du e Date

CR =
Total Shop Time Rema ining

Time Remai ning to Du e Date - Total Sho p Time Rem aining

S / RO =
Number of Operations Remaining

EDD = Select Job With Earliest Due Date

FCFS = Job That Arrives First is Processed First

SPT = Select Job With Shortest Processing Time

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 Performance of Priority Sequencing Rules

• Earliest due date (EDD) - Performs well with respect to: minimizing percentages of jobs past
due, minimizing the maximum amount of time a job is late. Performs poorly with respect to:
job flow time, work-in-process inventory, utilization.

• First come, first serve (FCFS) - Perceived as being fair. Performs poorly with respect to all
performance measures.

• Shortest processing time (SPT) - Performs well with respect to: average job flow time, work-
in-process inventory, minimizing percentages of jobs past due, utilization. Performs poorly with
respect to: minimizing the maximum amount of time a job is late, minimizing total inventory (it
pushes work to finished goods before it is needed), adjusting schedules when due date changes
(due date is not used in the calculation of priority).

• Critical ratio (CR) - Performs well when we are concerned with global operation of a system
of work centers

• Slack per remaining operations (S/RO) - Performs similarly to EDD with added advantages of
a global view and accounting for the duration of the jobs.

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 Scheduling in Services

Characteristics of services that have an impact on scheduling:

• Services can not buffer demand uncertainties with inventory.

• Demand for services is difficult to predict.
• Scheduling systems can facilitate the capacity management of service providers.

Two approaches:

• Schedule customer demand (capacity remains fixed and demand is leveled)

• Appointments
• Reservations
• Backlogs

• Schedule the work force to meet forecasted demand (adjust capacity to demand)