Operation Management

MT OM BBA501
BY: Dr. Anupam Jain
Associate Professor-ABS
Amity University, Jaipur.
 Module IV
Production Planning and
Control
BY: Dr. Anupam Jain
Associate Professor-ABS
Amity University, Jaipur.
 Introduction
Production Planning and Control (PPC) ensures that manufacturing operations
are carried out efficiently — at the right time, in the right quantity, and at
minimum cost.
Functions of PPC:
• Planning of production activities
• Routing (path determination)
• Scheduling (time determination)
• Dispatching (authorization)
• Follow-up and control
 [Link] Fundamentals

Aggregate Master Production

Capacity Planning
Planning (APP) Scheduling (MPS)
 Capacity Planning
Definition: Determining the long-term, intermediate-term, and short-term capacity
needs of a production system. It involves establishing the maximum rate of output an
operation can achieve.
Goal: To match the production capacity to the forecasted demand to achieve
economies of scale and meet customer needs.
Types:
•Long-Term: Deals with facility size, location, and major equipment decisions.
•Intermediate-Term (Aggregate Planning): Focuses on workforce size, inventory
levels, and production rates (6-18 months).
•Short-Term: Focuses on job scheduling and machine loading (day-to-day/week-to-
week).
 Aggregate Planning (APP)
Definition: A process that develops, analyzes, and maintains a preliminary,
approximate schedule of the overall operations of an organization. It plans the
quantity and timing of production for an intermediate range (e.g., 6 to 18 months).
Aggregation: Planning is done for product families (not individual items) and for
aggregate labor/capacity.
Strategies:
• Chase Strategy – Adjust production rate to meet demand.
• Level Strategy – Maintain constant production and use inventory to
meet fluctuations.
• Hybrid Strategy – Combination of both.
 Master Production Scheduling (MPS)
Definition: A detailed plan that translates the Aggregate Production
Plan into a specific build schedule for individual end items. It specifies
what to produce, when to produce it, and how many.
Role: It is the primary input for Material Requirements Planning
(MRP). It uses time buckets (usually weeks).
Available-to-Promise (ATP): The portion of a company's inventory and
planned production that is not already committed to customer orders.
It's calculated directly from the MPS.
 2. Production Planning and Control
Systems
These systems dictate how material flow is authorised and controlled. This can
be of two types:
Push System (e.g., MRP)
Mechanism: Production of components is initiated based on a master
schedule and material planning (like MRP), regardless of whether the next
workstation is ready or needs the material.
Motto: "Make to stock" or "Make based on a forecast/schedule."
Characteristics: Builds up inventory between stages, often leads to higher
Work-In-Process (WIP) inventory, and uses centralized planning.
Pull System (e.g., JIT)
Mechanism: Production at a workstation is only authorized when the
next workstation downstream signals a need (i.e., "pulls" the
material).
Motto: "Produce what is needed, when it is needed, and in the
amount needed."
Characteristics: Minimizes WIP inventory, relies on strong
communication (like Kanban cards), and is driven by actual demand.
 Difference between Push and Pull System
Basis Push System Pull System
Production starts only after demand
Production is based on forecast;
Meaning is known; items are “pulled” by
items are “pushed” through system.
customer demand.
Focus Forecast and scheduling Actual customer demand

Inventory Level High Low

MRP (Material Requirement
Example JIT (Just-in-Time System)
Planning)
Advantage Ensures availability of products Reduces waste and inventory costs

Limitation May lead to overproduction Needs accurate and stable demand

3. Job Shop Scheduling: Single Processor (n
Jobs on 1 Machine)
Job shop scheduling assigns jobs to work centres over time to optimise a chosen
performance criterion.
Scheduling is the process of assigning start and completion times for various jobs in a
system.
Job shop scheduling applies where different jobs are processed on different machines in
varying sequences.
Common Scheduling/Performance Criteria:
• Mean Flow Time (MFT) = Average time a job spends in system.
• Mean Tardiness (MT) = Average delay beyond due date.
• Number of Tardy Jobs (NTJ) = Count of jobs finishing after due date.
 Example 1: Mean Flow Time, Mean
Tardiness, Number of Tardy Jobs

Processing Time
Job Due Date (days)
(days)
A 4 6
B 3 5
C 5 10

Sequence: A → B → C
 Solution
Completion
Job Flow Time Tardiness (if any)
Time
A 4 4 Max(0, 4−6)=0

B 7 7 Max(0, 7−5)=2

C 12 12 Max(0, 12−10)=2

Mean Flow Time=(4+7+12)/3=7.67

Mean Tardiness=(0+2+2)/3=1.33
Number of Tardy Jobs=2
 4. Single Processor Scheduling Methods

Rule Description Primary Goal

Schedule the job with the Minimizes Mean Flow Time

Shortest Processing Time (SPT)
shortest processing time next. and Mean Waiting Time.

Minimizes Maximum Lateness

Schedule the job with the (Lmax) and Maximum
Earliest Due Date (EDD)
earliest due date next. Tardiness (Tmax), and often
reduces Nt
 (a) Shortest Processing Time (SPT)
Method
Rule:
Jobs are processed in increasing order of their processing time.
→ Minimizes mean flow time.
 (b) Due Date Method

Rule:
Jobs are processed according to earliest due date first.
 Numerical Example: SPT vs. EDD

Processing Time (Pj​)

Job (j) Due Date (Dj​) (Hours)
(Hours)
A 5 15
B 2 8
C 7 10
D 4 7
 Solution:
1. Shortest Processing Time (SPT) Method:Sequence: Order by Pj: B (2), D
(4), A (5), C (7)
Start Li​=Ci​− Ti​=ma
Job Pj​ Ci​ Dj Fi​=Ci​
Ci​ Dj​ x(0,Li​)
B 2 0 2 8 2 -6 0
D 4 2 6 7 6 -1 0
A 5 6 11 15 11 -4 0
C 7 11 18 10 18 8 8
Sum 18 37 8
2. Earliest Due Date (EDD) Method: Sequence: Order by $D_j$: D (7), B (8),
C (10), A (15)
Ti​=m
Start Li​=Ci​
Job Pj​ Ci​ Dj​ Fi​=Ci​ ax(0,
Ci​ −Dj​
Li​)
D 4 0 4 7 4 -3 0
B 2 4 6 8 6 -2 0
C 7 6 13 10 13 3 3
A 5 13 18 15 18 3 3
Sum 18 41 6
 5. Two Machines Scheduling: Johnson’s
Rule
Johnson's Rule is an algorithm used to find the optimal sequence of $n$ jobs on two machines (M1
and M2) to minimize the makespan ($C_{max}$), which is the total time to complete all jobs.
•Condition: All jobs must be processed on M1 first, then M2 (Flow Shop).
Johnson’s Rule Algorithm:
1. List the jobs and their processing times on M1 and M2.
2. Find the job with the shortest processing time on either M1 or M2.
i. If the shortest time is on M1, schedule the job as early as possible.
ii. If the shortest time is on M2, schedule the job as late as possible.
3. Remove the scheduled job from the list.
4. Repeat steps 2-4 until all jobs are sequenced.
 Example

Job M1 Time (min) M2 Time (min)

A 3 7
B 6 2
C 4 5
D 7 6

Calculate the Makespan Cmax:

 Step 1 Schedule Slots ( _ _ _ _ )
• Step 1: Shortest time is 2 min (Job B on M2). Schedule B last.
Sequence: ( _ _ _ B ) Jobs remaining: A, C, D
• Step 2: Shortest time is 3 min (Job A on M1). Schedule A first.
Sequence: ( A _ _ B ) Jobs remaining: C, D
• Step 3: Shortest time is 4 min (Job C on M1). Schedule C next available
(second). Sequence: ( A C _ B ) Jobs remaining: D
• Step 4: Only Job D remains. Schedule D in the middle. Optimal
Sequence: A - C - D - B
Step 2 Calculating Makespan (Cmax)

Makespan (Cmax): 23 minutes.

 6. General Job Shop Scheduling – Earliest
Due Date (EDD) Method
General job shop scheduling involves multiple jobs requiring different operations
on a variety of machines, often in a unique sequence for each job.
Earliest Due Date (EDD) Method
For the general case, EDD is a priority dispatching rule that can be applied at each
machine queue.
• Rule: When a machine becomes free, the job waiting in the queue with the
Earliest Due Date is selected next for processing. Jobs are arranged in
ascending order of due dates.
• Goal: Primarily used to manage job flow and reduce the number of tardy jobs
and lateness across the entire shop.
 Example:

Processing Completion
Job Due Date Job Tardiness
Time Time
A 5 8 B 4 0
B 4 6 A 9 1
C 6 10 C 15 5
Order: B → A → C Mean Tardiness = (0 + 1 + 5)/3 = 2