Module- IV:

Loading and Scheduling:Aims-Reasons for

scheduling-Master Scheduling or
Aggregate Scheduling, estimating shop
loads, short-term scheduling, mathematical
loading and scheduling problems.

Scheduling through CPM/PERT problems

1

Aggregate Planning .
It is the process of planning the quantity and the
timing of output over the intermediate time horizon
of 3 months to 1 year.
The word aggregate means that the planning is
conducted at a gross level to meet the total demand
from all products that share the same limited
resources of a dedicated facility.
Within that time frame, the maximum capacity of a
production facility is relatively fixed.
The production control department must schedule to
meet fluctuating demands for increasing varieties of
products.
The objective of aggregate planning is the productive
utilisation of both human and equipment resources.
2

Aggregate Planning .
Y
In the manufacturing
environment, inventory,
capacity and resources are
just few considerations
that require aggregate
Production
planning.
Qty
As the manufacturing
facilities grow, the
problem of planning and
control become extremely
O
complex.

Actual Demand

Aggregate
Planning

Back orders
Inventory
X
Productive Days
3

Aggregate Planning .
The production control department must schedule to meet
fluctuating demands for satisfying the customers.
In case of a sudden increase of demand for a product, the
production control department has many alternatives to
satisfy the customers such as :
1. Sub contract
2. Overtime production
3. Increase capacity- speed, feed, depth of cut etc.
4. Increase work force (Additional Manpower)
5. An extra shift
6. Use other machine not intended for the purpose
7. Build-up inventory.
4

Aggregate Planning Guidelines

Formulate output plans that adjust production activities
to provide a rational response to demand. The planning
guide lines are:1. Determine corporate policies regarding controllable
variable.
2. Use a good forecast as the basis for planning
3. Plan in appropriate units of capacity
4. Maintain as stable a workforce as possible
5. Maintain as much inventory control as needed
6. Maintain as much flexibility as possible
7. Respond to demand fluctuations in a controlled
manner
8. Evaluate planning adequacy on a regular time.
5

Quantitative Model for Aggregate Planning1.BOWMANS TRANSPORTATION MODEL..

Let
r=Regular production rate/unit
c=Carrying cost/unit/unit time
Io =Initial Inventory
If =Final Inventory
S1 , S2 ,S4 =Production Capacity of different plant
D1 ,D2 ,D4 =Demand of the product
Now make a simple transportation model, which
gives the details of demand/capacity and the cost
Involved.
6

Bowmans Transportation Model.

Demand period

Production
Period
Demand

Capacity

1
r

2
r+c

3
r+2c

4
r+3c

C1

r+c

r+2c

C2

r+c

C3

C4

D1

D2

D3

D4

Initially there is no inventory exists, so the costs are r and c 7only

Bowmans Transportation Model.

Production Period

Demand Period
1

Final
Inv.

Capacity

1
2
3
4

r+c

r+2c

r+3c

r+4c

S1

r+c

r+2c

r+3c

S2

r+c

r+2c

S3

r+c

S4

Demand

D1

D2

D3

D4

If

This is a model when there is an inventory I0 is available at the

beginning and a final inventory If is available at the end of production
8

Bowmans Transportation Model.

Production
Period

Demand Period

Slack

Final
Inv.

Capacity

Initial Inv.

2c

3c

4c

Io

Reg. Prodn. 1

r+c

r+2c

r+3c

r+4c

S1

Overtime 1

v+c

v+2c

v+3c

v+4c

O1

Reg. Prodn. 2

r+c

r+2c

r+3c

S2

Overtime 2

v+c

v+2c

v+3c

O2

Reg. Prodn. 3

r+c

r+2c

S3

Overtime 3

v+c

v+2c

O3

Reg. Prodn. 4

r+c

S4

Overtime 4

v+c

O4

Demand

D1

D2

D3

D4

If

D5

Let v= overtime prodn. Cost/unit, s= subcontract prodn. Cost/unit,

b= Back logging prodn. Cost/unit and O=Overtime production

Bowmans Transportation Model.

Production
Period

Demand Period

Slack

Final
Inv.

Capacity

Initial Inv.

2c

3c

4c

Io

Reg. Prodn. 1

r+c

r+2c

r+3c

r+4c

S1

Overtime 1

v+c

v+2c

v+3c

v+4c

O1

Reg. Prodn. 2

r+b

r+c

r+2c

r+3c

S2

Overtime 2

v+b

v+c

v+2c

v+3c

O2

Reg. Prodn. 3

r+2b

r+b

r+c

r+2c

S3

Overtime 3

v+2b

v+b

v+c

v+2c

O3

Reg. Prodn. 4

r+3b

r+2b

r+b

r+c

S4

Overtime 4

v+3b

v+2b

v+b

v+c

O4

Demand

D1

D2

D3

D4

If

D5

Let v= overtime prodn. Cost/unit, s= subcontract prodn. Cost/unit, 10

b= Back logging prodn. Cost/unit and O=Overtime production

Bishops Simplification Rule

Locate the maximum cost cell in the final inventory
column.
Allocate the maximum possible demand/capacity in the
least cell of the row corresponding to the maximum cost
cell selected in the previous step.
Repeat step 1 and step 2 till all the demands and
capacity are allocated
Conduct an optimum test to find out the best decision.
Optimum steps can be conducted by any one of the
following methods.
1. Stepping stone method
2. MODI Method.
11

Aggregate Plan and Master Plan

Aggregate Plan
Month
J F M A M J J A S
No. of
40 25 50 30 30 50 30 40 40
Motors
Master Plan
Month

J F M A M J J A S

A.C. Motors
5HP
15 -- 30 -- -- 30 -- -- 10
25HP
20 25 20 15 15 15 20 20 20
D.C.Motors
-- -- -- -- -- -- 10 10 -20HP
W.R. Motors
10 HP
5 -- -- 15 15 5 -- 10 10

Aggregate planning is
the process of
planning the quantity
and timing of output
over the intermediate
time horizon. Within
that time horizon, the
maximum capacity of a
production facility is
relatively fixed.
Master Scheduling
follows aggregate
planning and express
the overall plan in
terms of end items or
models that can be
assigned priorities.
12

Master Production Schedule

0

31

15

Forecast 0

13

18 THE AGGREGATE PLAN

3
4

is

Orders

Period
Item A
Item B
Item C

15
12
4

10
12
3

6
15

Disaggregated in to
FORECASTS & ORDERS
and matched against
MATERIAL & CAPACITY
available

To derive an acceptable
MASTER SCHEDULE
13

Master Schedule Functions

Translate aggregate plan in to specific end items

Evaluate alternate schedule
Generate material requirements
Generate capacity Requirements
Facilitate information processing
( coordination of marketing information, financial
resources and personal policies for supplying labour
etc.)

Maintain valid priorities

Effectively utilise capacity.
14

Policy Guidelines and Procedures for

implementing and monitoring Master Schedule

Work from an aggregate production plan

Schedule common modules when possible
Load facilities realistically
Release orders on timely basis
Monitor inventory levels closely
Reschedule as required.
15

Scheduling and Loading Guidelines

Provide a realistic schedule
Allow adequate time for operations
Allow adequate time before, between and after
operations
Dont release all available jobs to the shop
Dont schedule all available capacity in the shop
Load only selected work centers
Allow for necessary changes
Shop responsibility to schedule.
16

Scheduling Methodology
1. Charts and Boards:
Gantt Charts, Schedule Boards

2. Priority Decision Rules:

FCFS, EDD, LS, SPT, LPT, PCO, RS etc.

3. Mathematical Programming Models.

Linear Programming: (Simplex and
Transportation models)
Dynamic Programming
Assignment Methods etc.
17

Loading of Machines
Simple Assignment Model
No splitting of Job at all.

Transportation Model
Loading with Splitting of Jobs

Loading by Index Method

18

Loading by Simple Assignment Model

M/Cs
Jobs
A
B
C
D

3
6
2
8

5
4
5
2

7
7
3
6

4
2
5
1

Job A

M/C 1

Job B

M/C 4

Job C

M/C 3

Job D

M/C 2

Total
Cost=Rs 10/19

Loading by Transportation Model

M/Cs
Jobs

M1

M2

M3

M4

Demand
in Nos.

J1

4.8

3.6

300

J2

3.5

5.6

4.2

210

J3

4.8

3.6

240

J4

15

30

24

18

1800

J5

12.5

25

20

15

400

Available
Hours

40

60

80

41.67

M/C Skill
Wage Rate
(Rs per Hr)

IV

II

6 4.2

III

4.8 3.6

Jobs
Ml.Co/Pi

J1 J2 J3 J4 J5
0.5 0.6 0.8 1.00 1.20

S. Pri/Pi. 4

3
20

Loading By Index Method

The index number for a facility is
a measure of the time
disadvantage of using that
facility for processing and is
obtained by Index Number for
facility j

Order No.
(i)

No. of
Jobs in
Order
(Qi)

Ij=(Xij-Xi minimum)/Xi minimum

Operation time
per job i on
facility j in
Minutes (xij)
A

30

2.5

25

1.5

2.5

45

4.5

IB=(4-2.5)/2.5=0.6 and

15

2.5

3.5

IC=(2.5-2.5)/2.5=0 and so on.

10

3.5

100

80

150

Therefore for order No.1

IA=(5-2.5)/2.5=1

Available capacity of
each facility in Min.

21

Project Scheduling
Definition: A project is a set of unique activities that
must be completed with in a specified time by utilizing
appropriate resources, frequently at job sites.

Project Management:
Project Planning
Objectives
Team organization
Project Definition
Performance Criteria
Cost, Time, quality

Project Scheduling
Resource Availability
Human, Material, Finance

Managerial Technique

Project Control
Monitoring
Revision and
Updating

Gantt Chart, Milestone

Chart, CPM, PERT

22

Network Fundamentals
Definition: A network diagram is a mathematical model that
uses small circles (nodes) connected by links or branches
(arcs) to represent precedence relationships of activities.
The Critical Path Method (CPM) and Program Evaluation
Review Technique (PERT) are network technique for
analyzing a system in terms of activities and events that must
be completed in a specified sequence in order to achieve the
goal.

Activities: Component task that takes time and are

designated by arrow (

).

Events: are points in time which indicate that some

activities have been completed and others may begin . They
are sometimes called nodes and are represented by circles
(O).
23

Network Diagram- An Example

E.g..Construction of an Electrical Power Plant
12

3
8
1

12

18
4

4
7

5
6

ACTIVITIES
(1-2)Design of Plant,
3)Select Site, (2-4)Select Vendor, (2-6)Select Personnel,
4)Dummy Activity, (3-5)Prepare Site,
(4-5)Manufacture Generator, (4-6)Prepare Operations Manuel,
(5-7)Install Generator,
(6-7)Train Operator and
8)Obtain License.

(2(3-

24

(7-

Commonly Used Symbols

1

2
1

B
A

2
3
3

C 4
D
5

A 3 D
1
C
B
E
2
4

5
6

Activity A must be completed before

activity B can begin

Activity A and B can occur concurrently,but

both must be completed before B can begin
Activity A&B must both must be completed
before C&D can begin, but C can begin
independently of D and vice versa.

Activity A&B can occur concurrently, but

both must be completed before D can begin.
Activity C is a dummy activity which shows
a precedence relationship but has a Zero
time duration.
25

Network Scheduling Advantages

Coordinates total project and all interrelated
activities. It shows relationship of each activity to
whole project.
Forces logical planning of all activities. Facilitates
work organization and assignment
Identifies precedence relationships and activity
sequences that are especially critical
Provides completion times (and/or cost) estimates
and a standard for comparing with actual values.
Facilitates better use of resources by identifying
areas when human, material or financial resources
can be shifted.
26

Critical Path Method

CPM is extensively used for Project management in
construction, R&D, product planning and numerous
other areas.The steps involved in implementing CPM
are:
1. Define the project in terms of activities and events
2. Construct a network diagram showing the
precedence relationship
3. Develop a point estimate of each activity time
4. Compute the time requirement for each path in the
network
5. Shift resources as warranted to optimize the
27
attainment of objectives.

Definitions
CRITICAL PATH: The path with the longest time sequence
is called the critical path.The summation of these activity
times is the expected mean time of the critical path
(Te).Other paths will have excess (or slack) time, and the
slack associated with any path is simply the difference
between Te and the time for the given path.
EARLIEST & LATEST ACTIVITY TIMES: In managing
the activities of a project, it is sometimes useful to know how
soon or how late an individual activity can be started or
finished without affecting the scheduled completion date of
the total project.Four symbols are commonly used to
designate the earliest (ES &EF) and latest activity times
(LS&LF).
28

Definitions.
ES
The earliest start time for an activity. The
assumption is that all predecessor activities are
started at their earliest start time.
EF
The earliest finish time for an activity. The
assumption is that the the activity starts on its ES
and takes its expected time t. Therefore EF=ES+t
The process of calculating ES and EF times
involves calculations in sequence from left to
right(in the network). Thus, the ES of an activity
can be determined by summing the times of all
preceding activities, where two paths converge at a
node, the longest path governs.
29

Definitions
LF
The latest finish time for an activity
without delaying the project. The assumption is
that successive activities take their expected time.
LS
The latest start time or an activity without
delaying the project. i.e.LS=LF-t or LF=LS+t.
The latest times are computed from right to
left. We begin with the critical or ending time Te
and subtract time of each preceding activity up to
the specified activity.If two or more paths
converge on one event or route, the figure
developed from the path with short time governs
because that path has the least slack.
30

Example 1: Power generation Plant

Activity

Time
t

ES

LS

EF

LF

Slack
=LS-ES
(or) LF-EF

1-2

12

12

12

2-3

12

14

20

22

NC

2-4

12

12

16

16

2-6

12

26

15

29

14

NC

3-5

12

20

22

32

34

NC

4-5

18

16

16

34

34

4-6

16

24

21

29

NC

5-7

34

34

38

38

6-7

21

29

30

38

NC

7-8

38

38

44

44

C/NC

31

Program Evaluation Review Technique

(PERT)
PERT is, like CPM, a time oriented planning and control
device.
CPM develops only one central measure of completion
time for a project, whereas PERT develops both a
measure of central tendency (mean) and a measure of
dispersion (a standard deviation).
PERT incorporates uncertainty (and Probability) by
including three time estimates for each activity rather
than only one.
PERT is event oriented network whereas CPM is a
activity oriented network problem.
Slack is associated with PERT whereas Float is
32
associated with CPM.

PERT ANALYSIS
The three time estimates for each activity is given below.

a=Optimistic time. This is the best time that could be expected

if everything went exceptionally well, and it would be achieved
only about 1 percent of the time.

m=Most likely time. This is the better time estimate, or mode

expectation.

b=Pessimistic time.This is the worst time that could be

reasonably be expected if everything went wrong, and it would
occur only about 1 percent of the time.
The expected mean time te and variance 2 of each activity
can then be determined on the basis of the -distribution as:

te =(a+4m+b)/6 and 2 ={(b-a)/6} 2

33

PERT ANALYSIS
Individual activity times are then summed up over the respective
paths, and the path with the longest time is the critical path. Now the
mean completion time of the Project Te= te

Variances of the component activity times along the critical path may
be summed up. The assumptions here are: 1) The time estimate along
critical path are independent 2) the resulting variation of project
completion times about the mean completion time is normally
distributed.
The standard deviation (cr) is the square root of the sum of the
variances of the activity times along the CP. Now cr = cp2 .

To determine the probability that a project would exceed time TX, We

would compute Z=( T x -T E)/ cr
Find the probability associated with Z value from normal
distribution curve.
34