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DEPARTMENT OF BUSINESS MANAGEMENT A PROJECT REPORT ON UNDER THE GUIDANCE OF Page 1

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Page 1: Production mgmt

DEPARTMENT OF BUSINESS MANAGEMENT

A

PROJECT REPORT

ON

UNDER THE GUIDANCE OF

PROF .VIDHYA.SHIRSAGAR

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SUBMITTED BY:-

NAME ROLL NO. SPECIALISATION

ANURADHA.MUKKU 02 BANKING & INSURANCE

HEMANGI.BHISE 03 BANKING & INSURANCE

POOJA.LAKHANI 07 BANKING & INSURANCE

KIRAN.HEMNANI 08 BANKING & INSURANCE

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INDEX

Serial No Particulars Page No

1. Introduction 4-6

2. Objectives Of Scheduling 7-8

3 Elements Of Scheduling 9-10

4 Priority Planning 11-12

5 Master Production Schedule 13

6 Objectives Of MPS 14

7 Functions Of MPS 15-16

8 Examples Of Scheduling 17-20

9 Shortest Processing Time (STP) 21-23

10 Weighted Shortest Processing Time (WSPT)

24-26

11 Conclusion

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INTRODUCTION

Scheduling is one of the most important elements in production planning. Scheduling calls for through understanding of all aspects of the production process and is an outcome of the integration of the efforts of planners in the planning group and the people in the shop-floor.

A keen interaction and exchange of information between various groups is very essential. Various aspects such as market demand, production capabilities in terms of plant & machinery, material supply position from vendors and availability of required manpower to carry on the transformation process from raw materials to finished products are very important to complete the job as per schedule.

Scheduling executes a company’s strategic business plan and affects functional areas throughout the company. Accounting relies on schedule information and completion of customer orders to develop revenue projections

Scheduling integrates the people, machine, materials, customer demands, and quality requirements in finalizing the priorities. Scheduling makes it possible by determining starting and completion data each of the operations.

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Scheduling determines the exact order in which the jobs are to be executed. Scheduling provides the flexibility in the transformation process to accommodate the ever changing situations due to availability / non-availability of various resources and environmental factors.

Scheduling is important for manufacturing and engineering, where it can have a major impact on the productivity of a process. In manufacturing, the purpose of scheduling is to minimize the production time and costs, by telling a production facility when to make, with which staff, and on which equipment. Production scheduling aims to maximize the efficiency of the operation and reduce costs.

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SCHEDULING EFFECTS FROM two environmental factors which are internal and external to the organization.

1. Internal environment refers to the order booking, availability of material in quality and quantity, tools, required manpower, and management priorities.

2. External environment refers to the competitive business environment, sudden demand due to various reasons such as war, political activities, and natural calamities like earthquake heavy rains, floods, accidents or any other unexpected happenings of importance to business.

SCHEDULING IS NOT AS SIMPLE. THE SCHEDULING MUST:

1. Ensure maximum utilization of the plant at minimum cost.

2. Ensure that requirements of manpower is optimum and is evenly distributed, there being no peaks and valleys.

3. Keep itself abreast of hiring, dismissals, retrenchment, holidays, leaves, etc. of the work force.

4. Possess up-to-date information regarding availability of materials, expected delivery dates, materials rejection, shortages, purchase orders cancelled etc.

5. Possess up-to-date data on each machine regarding its breakdown, availability of spares, average frequency of breakdowns, servicing and overhauling schedules, replacement schedules, etc.

6. Possess complete information on performance standards and their revisions, method improvement, changes in materials and machines etc.

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OBJECTIVES OF SCHEDULING

The primary objective of scheduling is to improve system performance.

Various objectives of the scheduling are as follows:

•MAXIMIZE THROUGHPUT:

Scheduling should attempt to service the largest possible number of processes per unit time. Maximize the number of interactive user receiving acceptable response times.

•BE PREDICTABLE:

A given job should utilize the same amount of time and should cost the same regardless of the load on the system.

•MINIMIZE OVERHEAD:

Scheduling should minimize the wasted resources overhead.

•BALANCE RESOURCE USE:

The scheduling mechanisms should keep the resources of the system busy. Processes that will use underutilized resources should be favored.

AVOID INDEFINITE POSTPONEMENT :  

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It would be fair if all processes are treated the same and no process can suffer indefinite postponement.

•ACHIEVE A BALANCE BETWEEN RESPONSE AND UTILIZATION :  

The best way to guarantee good response times is to have sufficient resources available whenever they are needed. In real time system fast responses are essential, and resource utilization is less important.

•ENFORCE PRIORITIES:

In environments in which processes are given priorities, the scheduling mechanism should favor the higher-priority processes.

•GIVE PREFERENCE TO PROCESSES HOLDING KEY RESOURCES :

Even though a low priority process may be holding a key resource, the process may be in demand by high priority processes. If the resource is not perceptible, then the scheduling mechanism should give the process better treatment that it would ordinarily receive so that the process will release the key resource sooner.

•DEGRADE GRACEFULLY UNDER HEAVY LOADS :  

A scheduling mechanism should not collapse under heavy system load. Either it should prevent excessive loading by not allowing new processes to be created when the

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load in heavy or it should provide service to the heavier load by providing a moderately reduced level of service to all processes.

ELEMENTS OF SCHEDULING

THE PROCESSORS

Processors are the "workers" that do the work.The word 'processor' itself carries an important connotation; namely, processors need not be people.A processor could be an integrated circuit, a robot, a machine, a computer, an ATM, or even a person.Rotationally, we will use P1 , P2 , P3 ,  . . .  , PN  to represent the set of N processors available to do a job.And, since scheduling is not much of an issue when there is only one processor, we will concern ourselves only with cases for which the number of processors is 2 or more.

THETASK

Tasks or jobs are the individual pieces of work for our purposes, we will define a task as a unit of work that can't (by nature or by specification) be broken down into smaller units of work and is always carried out by a single processor.A task could be wiring a house, installing a hard drive, baking a cake, or inspecting a hazardous waste disposal site. For scheduling purposes, tasks must be specified in advance. For instance, wiring a house might be scheduled as a 16 hour task for a single electrician or perhaps as two separate 7 hour tasks that could be done by two electricians.  The important

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thing is that a task, once specified, cannot be further sub-divided during the actual scheduling process.

THE PRECEDENCE RELATIONS

These are restrictions on the order in which the tasks can be carried out.We will use   to indicate that task X must precede (come before) task Y.Of course, if task Y must precede task X, we will write   .If there are no precedence requirements between task X and task Y (X can come before Y or Y can come before X), then we say that the two tasks are independent.If task X is putting on your socks, task Y is putting on your shoes, and task Z is putting on your shirt, then    since you should always put on your socks before putting on your shoes.   However, tasks X and Z are independent since it doesn't matter whether you put on your socks before your shirt or your shirt before your socks.  Similarly, Y and Z are independent.Precedence Relations are transitive.  This simply means that if      and   , then  .  Or, in other words, if task X precedes task Y and task Y precedes task Z, then task X must also precede task Z.

THE PROCESSING TIMES Every task has a processing time.It is the amount of uninterrupted time required to carry out the task.There is a serious complication here.  In many situations it may be the case that the processing time varies depending on which processor carries out the task or that some processors cannot carry out the task at all.We will only deal with scheduling problems for which we can always assume that:(1) each processor can carry out each task and(2) the processing time for a task is the same for all processors and(3) once a task is started, the processor must execute it without

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interruption.Rotationally, we may indicate the processing time for a task by putting it in parentheses after the name of the task, e.g., if task A can be completed in 5 hours, we might write ‘A (5)'.

PRIORITY PLANNING

Priority Planning is the process by which the elements required to perform a task are determined in advance of the job start.

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The operations group takes in orders which will fluctuate in terms of quantity, mix and priority.

In the short term, it has the responsibility of judiciously managing existing capacity so that delivery requirements are met.

To perform this task, the operations group must determine the sequence or priority that orders will run, the dates that production will commence, and the quantities that will be produced.

THE OPERATIONS GROUP is also responsible for planning and scheduling around the problems that can rob the operation of its available capacity. These problems include new orders, order changes, material shortages, breakdowns, labor problems, vendor problems, and quality problems. The operations group is influenced by the policy constraints set by the management group. These constraints are termed “soft” because they can be varied in the short term. The operations group is also influenced by the constraints set by the engineering group. These constraints are termed “hard” because they are typically fixed in the short term.

THE MANAGEMENT GROUP

Determines what kinds of lead times will be quoted, inventory levels, overtime and other labor policies, and sets the general guidelines that influence how the operation’s shop floor is run. They use market information and feedback on performance in setting these policies. All these policies influence the planning and scheduling of available capacity and therefore delivery.

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THE ENGINEERING GROUP

Determines the levels of machinery, tooling, and equipment that will be available to the operations group for the purpose of planning and scheduling. They build and maintain the standards and routings that determine how product flows through the plant and also control the plant processes. The engineering group typically certifies vendors and determines to whom work can be outsourced.

MASTER PRODUCTION SCHEDULE

A Master Production Schedule is a Schedule of the completions of the end items and these completions are very much planned in nature. Master production schedule acts as a very distinct and important linkage between the planning processes. With the help of this schedule, one can know the requirements for the individual end items by date and quantity. In companies, MPS are generally produced in order to know the number of each product that is to be made over some planning horizon. This schedule forms a very unique part of the company’s sales program which deals with the planned response to the demands of the market.

A master production schedule is also in management language referred to as the master of all the schedules as this schedule provides the production, planning, purchasing & top management, the most needed information required for planning and control of the whole manufacturing process or the operation.

Master production scheduling plays an important role in the balancing of demand with the supply i.e.

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satisfying customers according to the limits of the factory and the supplier’s base. MPS is used to know the number of the items that are to be produced, the planned inventories of raw materials, finished products and parts etc. MPS tells the company what is to be made or produced and also refers to the time in which this production of the products is to be completed. It must be kept in mind that MPS does not act as a sales forecast or as a manufacturing schedule or a wish list or a final assembly schedule. MPS can be linked only with the final products and not with the planning involving the production of parts or the components, as these listings require very detailed planning – so these are left to the other plans that will follow this schedule.

OBJECTIVES OF MASTER PRODUCTION SCHEDULE (MPS)

1. Keeping the inventories at the desired level by making perfect use of the resources that are available with the company.

2. Setting up due dates for the availability of the end items and also providing the required information regarding resources and also the materials – which act as the supporting pillars of the aggregate planning.

3. Maintaining properly, the desired level of customer service.

4. Setting particular schedules for the production of the parts and the components that are used as the inputs to materials requirements planning, in the end items.

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MPS which is effective in nature helps in keeping the customer delivery promises, as delivery in time forms a very important factor in today’s competitive world – which contributes towards the formation of the impression of the company, its working in the customer’s minds. An effective MPS acts as a basis for the utilization of the capacity of the plant to a good level and also helps in the resolving of the trade – offs that usually occur in between production and the marketing. With the help of the master production schedule, one can establish production schedule for the models of the products and one can also get the schedule input for the materials requirements planning process, along with the schedule that is used by order processing.

FUNCTIONS OF MASTER SCHEDULING

The functions of master scheduling are as follows:-

Service and maintenance items.

Specifies planning periods as daily, weekly, or monthly.

Generates reports using time-phased buckets.

Institutes multiple planning time fences.

Master schedule can be created at all product levels.

Master schedule incorporates configure-to-order items.

Group work order processing.

Schedule can be edited, changed, or consolidated.

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Tracks accuracy of order forecasting as percentage.

Transmits master schedule requirements (gross or net) to MRP.

Demand planning forecasts with customizable period buckets.

Weekly forecasts.

Unlimited quantity of production schedules may be generated, including simulations.

Inventory demand is recorded by class including target inventory level, and transfer, forecast, or target demand.

Classifies supply into types such as materials, purchased, flow, work order, and transfer.

Data can be compiled based on specified criteria or variables, net change, simulations, in real time, etc.

Planning periods can be defined in standard intervals (monthly, weekly, daily, by shift, etc.), or as specified by the user.

Customizable planning periods and horizons.

A master production schedule may be necessary for organizations to synchronize their operations and become more efficient. An effective MPS ultimately will:

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Give production, planning, purchasing, and management the information to plan and control manufacturing.

Tie overall business planning and forecasting to detail operations.

Enable marketing to make legitimate delivery commitments to warehouses and customers.

Increase the efficiency and accuracy of a company's manufacturing.

EXAMPLES OF SCHEDULING

These are few examples of scheduling which are as follows:-

(1) TIMETABLING

Scheduling of the PC room at Duisburg University: a number of different courses (tasks) have to be given using the PC room (resource)

(2) WORKFORCE SCHEDULING

Assign shifts for nurses and doctors in a Hospital

(3) SPORTS SCHEDULING

Assigning different sports activities to different students according to their skills and abilities.

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(4) DRUGS

Drugs, substances, and certain chemicals used to make drugs are classified into five (5) distinct categories or schedules depending upon the drug’s acceptable medical use and the drug’s abuse or dependency potential. The abuse rate is a determinate factor in the scheduling of the drug; for example, Schedule I drugs are considered the most dangerous class of drugs with a high potential for abuse and potentially severe psychological and/or physical depend As the drug schedule changes-- Schedule II, Schedule III, etc., so does the abuse potential-- Schedule V drugs represents the least potential for abuse. A Listing of drugs and their schedule are located at Controlled Substance Act (CSA) Scheduling or CSA Scheduling by Alphabetical Order.

These lists describes the basic or parent chemical and do not necessarily describe the salts, isomers and salts of isomers, esters, ethers and derivatives which may also be classified as controlled substances. These lists are intended as general references and are not comprehensive listings of all controlled substances.

Please note that a substance need not be listed as a controlled substance to be treated as a Schedule I substance for criminal prosecution. A controlled substance analogue is a substance which is intended for human consumption and is structurally or pharmacologically substantially similar to or is represented as being similar to a Schedule I or Schedule II substance and is not an approved medication in the United States. (See 21 U.S.C. §802(32)(A) for the definition of a controlled substance analogue and 21 U.S.C. §813 for the schedule.)

SCHEDULE I

Schedule I drugs, substances, or chemicals are defined as drugs with no currently accepted medical use and a high potential for abuse. Schedule I drugs are the most dangerous drugs of all the drug schedules with potentially severe psychological or physical

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dependence. Some examples of Schedule I drugs are: Heroin, lysergic acid diethylamide (LSD), marijuana (cannabis), 3,4-methylenedioxymethamphetamine (ecstasy), methaqualone, and peyote.

SCHEDULE II

Schedule II drugs, substances, or chemicals are defined as drugs with a high potential for abuse, less abuse potential than Schedule I drugs, with use potentially leading to severe psychological or physical dependence. These drugs are also considered dangerous. Some examples of Schedule II drugs are: cocaine, methamphetamine, methadone, hydromorphone (Dilaudid), meperidine (Demerol), oxycodone (OxyContin), fentanyl, Dexedrine, Adderall, and Ritalin

SCHEDULE III

Schedule III drugs, substances, or chemicals are defined as drugs with a moderate to low potential for physical and psychological dependence. Schedule III drugs abuse potential is less than Schedule I and Schedule II drugs but more than Schedule IV. Some examples of Schedule III drugs are: Combination products with less than 15 milligrams of hydrocodone per dosage unit (Vicodin), Products containing less than 90 milligrams of codeine per dosage unit (Tylenol with codeine), ketamine, anabolic steroids, testosterone.

SCHEDULE IV

Schedule IV drugs, substances, or chemicals are defined as drugs with a low potential for abuse and low risk of dependence. Some examples of Schedule IV drugs are Xanax, Soma, Darvon, Darvocet, Valium, Activan, Talwin, Ambien

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SCHEDULE V

Schedule V drugs, substances, or chemicals are defined as drugs with lower potential for abuse than Schedule IV and consist of preparations containing limited quantities of certain narcotics. Schedule V drugs are generally used for antidiarrheal, antitussive, and analgesic purposes.

SHORTEST PROCESSING TIME (SPT)

In single – machine scheduling problem, sequencing the jobs in increasing orders of processing time is known as shortest processing time (SPT) sequencing.

In single – machine scheduling, sometimes we may be interested in minimizing the time spent by jobs in the system. This in turn will minimize in-process inventory. Also, we may be interested in rapid turnaround/throughput times of the jobs. The time spent by job j in the system is nothing but its flow time (Fj) and the “rapid turnaround time” is the mean flow (f) of the jobs in the system. Shortest processing time (SPT) rule minimize the mean flow of time.

EXAMPLE:-

The data about a set of single operation jobs that is to be processed in a CNC lathe and the processing times of the jobs in the given set of jobs are as given in table.

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Find the optimal sequence which will minimize the mean flow time and also obtain the corresponding minimum mean flow time.

Job, j Processing time, tj

1 7

2 18

3 6

4 8

5 12

Solution:-

For the given problem, the number of jobs is equal to 5. The jobs are arranged as per the SPT ordering.

Job, j Processing time, tj3 61 74 85 122 18

Therefore, the job sequence which will minimize the mean flow time is 3-1-4-5-2.

The computation of flow time for the optimal sequence (3-1-4-5-2).

COMPUTATION FLOW TIME

Job, j Processing time, tj Completion time, cj(fj)3 6 61 7 134 8 215 12 33

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2 18 51

Since the ready time rj is zero for all the values of j, the flow time (fj) = cj for all j. therefore,

F = 1/5 ∑ Fj = 1/5 (6+13+21+33+51)

= 1/5 (124)

= 24.8 hours

Therefore, the optimal mean flow time = 24.8 hours.

WEIGHTED SHORTEST PROCESSING TIME (WSPT)

Sometimes, the jobs in a single machine scheduling will not have equal importance. Under such situation each job is assigned with a weight, wj. The mean flow time which is computed after incorporating wj is called mean flow time and its formula is:

f w = ∑j=1

n

wj fj÷∑j=1

n

wj

WSPT rule. In single – machine scheduling problem, sequencing the jobs in increasing order of weighted processing time is known as weighted shortest processing time (WSPT) sequencing. The weighted processing time of a job is obtained by dividing its processing time by its weight.

Example:-

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Job, j Processing time, tj Weight , wj

1 7 1

2 18 2

3 6 1

4 8 2

5 12 3

Determine the sequence which will minimize the weighted flow time of this problem. Also find the corresponding weighted mean flow time.

SOLUTION:-

The weighted processing times of various jobs are summarized by using the formula tj/wj, j = 1,2,3,4, and 5

Job, j Processing time, tj Weight , wj Tj/wj1 7 1 72 18 2 93 6 1 64 8 2 45 12 3 4

Next the jobs are arranged in the increasing order of tj/wj (i.e. WSPT ordering). From the above table we can verify the following relation.

t 4w 4 ≤

t 5w 5 ≤

t 3w 3≤

t 1w 1≤

t 2w 2

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Therefore, the optimal sequence which will minimize the weighted mean flow time is 4-5-3-1-2.

f wCalculations: the details of weighted flow time calculations of various jobs with respect to the optimal sequence are summarized.

Calculations of weighted flow times

Job, j Processing time, tj

Cj (Fj) Weight , wj Fjwj

4 8 8 2 165 12 20 3 603 6 26 1 261 7 33 1 332 18 51 2 102

Therefore,

f w = ∑j=1

n

wj fj÷∑j=1

n

wj = 16+60+26+33+102

2+3+1+1+2 = 26.33 hours.

CONCLUSION

Scheduling is very important in every organization as it helps in planning the activities and reducing future production problems.

Scheduling integrates the people, machine, materials, customer demands, and quality requirements in finalizing the priorities.

Scheduling makes it possible by determining starting and completion data each of the operations.

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There are a few benefits of production scheduling which are as follows:

Process change-over reduction

Inventory reduction, leveling

Reduced scheduling effort

Increased production efficiency

Labor load leveling

Accurate delivery date quotes

Real time information.

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