SCP Presentation

NI K HI L K J OS E P H - F R ANK L I N J OS E P H - S I MON S CH L E R
PRODUCTION PLANNING AND

SCHEDULING
CONTENTS
1. Description of the Decision Situation.
2. Planning Decentralization.
3. How to proceed from a model to a Production
Schedule.
4. Production Process Model (PPM).
5. Objectives of Production Planning and Scheduling
6. Updating Production Schedule.
7. Incremental Planning.
8. Number of Planning Levels & Limitations.

15th May, 2014 2
Nikhil k Joseph Franklin Joseph
Simon Schler
DESCRIPTION OF THE DECISION
SITUATION
Production schedule indicates for each order to be
executed within the planning period its start and
end time and also resources required for various
processes.
It can be visualised by using a Gantt chart.
The planning period for production and scheduling
varies from one day to weeks depending on the
industrial sector.
It should cover the largest throughput time of an
order within the production unit.
It mostly depends on availability of known
customers and accurate demand forecasting.
15th May, 2014 3
Simon Schler
DESCRIPTION OF THE DECISION
SITUATION... CONTD
For some production types like Job Shop production
planning and scheduling requires sequencing and
scheduling of orders on potential bottlenecks.
For other production types like group technology an
automated bucket-oriented capacity check can
be used sequencing can then be performed
manually.

15th May, 2014 4
Simon Schler
PLANNING DECENTRALIZATION
Planning tasks should be done decentraly utilizing the
expertise of the staff at each location and their current
knowledge of the state of the Job shop.
The master plan would set the frame work within which
production planning and scheduling at the
decentralized units can be performed.
The directives used are
The amount of overtime or additional shifts to be done .
The availability of items from upstream units in the supply
chain at different points in time.
Purchase agreements concerning input materials from
suppliers.

15th May, 2014 5
Simon Schler
PLANNING
DECENTRALIZATIONCONTD
Master plan also give additional directives like
The amount of seasonal stock of different items to
be built up by the end of the planning horizon
Due dates for orders to be delivered to the next
downstream unit in the supply chain.

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Simon Schler
I
1. Model Building
2. Extracting required data from ERP
system, Master Planning,...etc
3. Generating a set of assumptions (a
scenario)
4. Generating a (initial) production
schedule
5. Analysis of the production schedule
and interactive modifications
7.Executing and updating the production schedule via the
ERP-System until an even requires reoptimization
6. Approval
of a
scenario
III
III
II
II
No
Yes
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Simon Schler
HOW TO PROCEED FROM A MODEL TO
A PRODUCTION SCHEDULE
Step 1: Model building
A model of the shop floor has to capture the
specific properties of the production process and
the corresponding flow of materials in a detail that
allows to generate feasible plans at minimum costs.
Only a subset of the existing resources which can
result into a bottleneck need to be modelled
seperately
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Simon Schler
A PRODUCTION SCHEDULECONTD
Step 2: Extracting required data
Production planning and scheduling utilizes data
from
ERP system
Master planning system
Demand Planning
Only a subset of the data available in these modules
is used so it is necessary to specify which data will
be used.
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Simon Schler
Step 3:Generating a set of assumptions(A scenario)
In addition to the data received from sources like
ERP the decision maker at the plant or production
unit may have some further knowledge or
expectations about the current and future situation
of the shop floor not available in software modules .
Therefore the decision maker must have the ability
to modify data and thereby set up a certain
sceanrio

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Simon Schler
Step 4:Generating an initial production schedule.
Next an initial production schedule would be
created automatically from the above given
scenario.
This can be done either by a two level planning
hierarchy or in one step.

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Simon Schler
Step 5 : Analysis of the production schedule and
interactive modifications.
If we are using a bucket oriented upper planning level
then this production plan must be analysed first before a
detailed schedule is generated.
If the plan is infeasible the decision maker may indicate
some course of action interactively to balance
capacities(like introduction of overtime or the
specification of a different routing).
This would be easier than modifying a detailed
sequence of operations on individual resources we can
also incorporate the experience and knowledge of the
decision maker interactively.
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Simon Schler
Step 6 :Approval of a scenario
Once the decision maker has evaluated all
available alternatives he/she can choose the most
promising production schedule relating to a specific
scenario.

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Simon Schler
Step 7: Executing and updating the production
schedule
The production schedule selected would be
transferred to
The MRP module to explode the plan
The ERP system to execute the plan
The transport planning module for generating routes
and vehicle loadings to deliver customer orders
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Simon Schler
The MRP module performs the explosion of all
planned activities on bottleneck resources to those
materials that are produced on non-bottleneck
resources.
Changing the model of the plant is less frequent
and if the structure remains unaltered and only
quantities are affected the model can be updated
automatically via the data that is downloaded from
the ERP system however for major changes like the
introduction of a new production stage with new
properties a manual adaptation of the model is
advisable.
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Simon Schler
Cleaning Stirring Waiting
Cleaning
Material
Ingredients
Waste Liquid
Ketchup
-24h
0h 0h
Cleaning Bottling Packaging
Liquid Ketchup,
bottles
Cleaning
Personnel
Boxes
containing
24 Ketchup
bottles
0h
0h 0h
Primary Resource 1:
Tub
Primary Resource 2:
Packaging Line
Packaging
Personnel
(..Activities...) (..Products) Material Flow with max Lead Time.
Explanations:
Secondary Resources:
Boxes
Bottling
Personnel
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Simon Schler
PPM MODEL(PRODUCTION PROCESS
MODEL)
The number of items per order as well as the resource
consumption per item are required for sequencing and
scheduling of individual orders hence a combination of
both called PPM model is used .
Example for PPM : Two stage production of ketchup
bottles of a specific size and brand.
First part of PPM would represent the production of the
ketchup-cleaning the tub, stirring the ingredients and
waiting for the bottles to be filled up.
Once the liquid is ready it has to be bottled within the
next 24 hours.
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Simon Schler
MODEL)CONTD
The liquid can be bottled in bottles of different sizes.
For each size there will be an individual PPM.
The liquid ketchup can be used up for different
bottles simultaneously.
A PPM will at least consist of one operation and
each operation will consist of at least one primary
resource( like tub) and secondary resources like
personnel
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Simon Schler
MODEL)CONTD
Activities would require some input material and
yield some material as output we need to specify
the point of input and output though.
The technical sequence of activities within an
operation is called as precedence relationship
represented by arcs in the diagram.

15th May, 2014 19
Simon Schler
Cleaning Stirring Waiting
Cleaning
Material
Ingredients
Waste Liquid
Ketchup
-24h
0h 0h
Cleaning Bottling Packaging
Liquid Ketchup,
bottles
Cleaning
Personnel
Boxes
containing
24 Ketchup
bottles
0h
0h 0h
Packaging
Personnel
Boxes
Bottling
Personnel
Primary Resource 1:
Tub
Primary Resource 2:
Packaging Line
Secondary Resources:
15th May, 2014 20
Simon Schler
MODEL)CONTD
MODEL)CONTD
Pegging
The timing as well as the resource and material
requirement of a order may be derived by linking
associated PPMs by the pegging arcs.
Pegging arcs connect the input material of one
PPM with the respective output material of the
predecessor PPM.
PPMs are stored and updated solely in APS this
allows to take into account more details like timing
restrictions than when they are stored in an ERP
system.
15th May, 2014 21
Simon Schler
MODEL)CONTD
APS offers following information whether a plant or
resource is operated in in one ,two, three shifts.
Situation dependent data varies with current
situation of the shop floor it includes.
Initial inventories ,including WIP.
Setup state of resources
Set of orders processed within a given interval of
time.

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Simon Schler
MODEL)CONTD
Operational procedures include
Lot size rules
Priority rules
Choice of routings
The rules of building lot sizes would actually depend on
actual production situation APS provides some input like
simple rules of priori like fixed lot size, minimum lot size, or
a lot size between orders.
Fixing lot sizes to the EOQ(economic order quantity )is
not a wise decision because large deviations would
result only in small cost increases instead there should be
certain amount of flexibility in the system.
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Simon Schler
OBJECTIVES OF PRODUCTION
PLANNING AND SCHEDULING
The objectives for production planning and scheduling
are as follows minimizing the
Makespan
Sum of lateness
Maximum lateness
Sum of throughput times
Sum of setup times
Three objectives related to costs are also important
Variable production costs
Setup costs
Penalty costs
15th May, 2014 24
Simon Schler
OBJECTIVES OF PRODUCTION
PLANNING AND SCHEDULING..CONTD
If a decision maker wants to pursue several of the
above objectives an ideal solution does not exist
we have to look for a compromise solution which
includes weighted sum of individual objectives .
15th May, 2014 25
Simon Schler
UPDATING PRODUCTION SCHEDULE
Used to cope with uncertainty.
Softwares and simulations for real-time updates of
estimated orders completion time.
Before the actual schedule is delivered to the shop
floor.
Time is of essence.
Assumes that decision situation is deterministic.
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Simon Schler
INCREMENTAL PLANNING
It is a two step planning process.
A new order can be accepted if;
It can be added into the current sequence of Production
Planning and Scheduling.
Only minor changes in the timing of orders result.
Reoptimization is done time to time, depending on
the different sequence of orders.

15th May, 2014 27
Simon Schler
E.G. FOR INCREMENTAL PLANNING
Assume
Four Orders are currently scheduled with due dates
given as;

Processing times for all orders are 1 unit.
We cannot interrupt the processing of any order that
has already begun.
Objective:-To minimize the Sum of Sequence
dependent Setup Times.

Orders A B C D
Due
Dates
102 104 107 108
A B C D
100 01 02 03 04 05 06 07 08
t
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Simon Schler
E.G. FOR INCREMENTAL
PLANNING...CONTD
Now if we need to add a new order E, with due
date 107
Given the Setup Times for all process as;

Between A & E there is a positive Setup Time;
However, E cannot be inserted before, as it will affect Bs
due date.
To A B C D E
A 0 0 1 1 1
B 1 0 0 0 2/3
C 1 1 0 0 1/3
D 1 1 1/3 0 1
E 1 1 2/3 1 0
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Simon Schler
PLANNINGCONTD
The Three Alternative Solutions are;
1) Sum of Setup Times= 2 1/3

2) Sum of Setup Times= 2 1/3

3) Sum of Setup Times= 2
A B C D
100 01 02 03 04 05 06 07 08
t
E
A B C D
100 01 02 03 04 05 06 07 08
t
E
A B C D
100 01 02 03 04 05 06 07 08
t
E
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Simon Schler
PLANNING..CONTD
After reoptimization we get; Setup Time 1 2/3

Explanation:
Setup Time-
Production-

A B C D
100 01 02 03 04 05 06 07 08
t
E
15th May, 2014 31
Simon Schler
Software modules usually generate either one or two
planning levels for production planning and scheduling,
depending on production type and the repetition of
operations

Production types:

Flow lines no separation into multiple planning levels

Process organization divided into two planning levels
Upper planning level: Time buckets of days and weeks,
resources are grouped in resource groups
Lower planning level: assignment of orders to individual
resources

NUMBER OF PLANNING LEVELS AND
LIMITATIONS
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Simon Schler
Time buckets:
Big time bucket:

Small time bucket:

LIMITATIONS
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Simon Schler
Time buckets:
In a big time bucket
Operation started in time bucket has to be finished within
the time bucket
Setup stage can not preserved from one period to next
Aggregation of resources to resource groups

In a small time bucket
Setup stage can be preserved from one period to next
Usually only one setup per time bucket

LIMITATIONS
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Simon Schler
Sometimes, even through a possible big bucket plan
exists, it might not be possible to disaggregate the
plan into a production schedule because

- Sequence dependent setup time:
Planning in time buckets might not be possible because loading
of time bucket is done without sequencing. Portion reserved for
setup time, be to small or to large.

LIMITATIONS
15th May, 2014 35
Simon Schler

- Loading of resource groups:
Bucket size is 3 periods and 2 resources allocated
6 time units within bucket.
3 operations with 1 time unit per operation and 1 time unit setup
time each 6 time units needed

LIMITATIONS
15th May, 2014 36
Simon Schler

- Lead time offset of zero time units between successive
operations
Two successive operations loaded into same big time bucket.
Operation B is successor of operation A. Both need 9 hours
processing time.

LIMITATIONS
15th May, 2014 37
Simon Schler
Possible solution:

Mixture of big and small time bucket big time bucket with linked
lot sizes

-Last lot within time bucket gets chosen which can be linked with
a first lot in next time bucket
-If these two lots concern the same product, a setup can be saved

Allows model a setup over two or more big time buckets, like in
the small bucket model
LIMITATIONS
15th May, 2014 38
Simon Schler
Limitations due to computational efforts:

For finding best production schedule, there usually are many
alternatives for sequencing orders (n! sequences for n orders per
period).
Combined with choise of use of paralell resources, excessive
number of possibilities.

LIMITATIONS
15th May, 2014 39
Simon Schler

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NI K HI L K J OS E P H - F R ANK L I N J OS E P H - S I MON S CH L E R

PRODUCTION PLANNING AND

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