Schedule Design

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 Calculating Process Requirements:

• Phase I: Calculation of production requirements

• Determine quantity of components to be produced
• Use BOM structure to identify quantities.
• Include scrap allowance based on the estimated production requirements for
each product.
• Phase II: Estimation of the number of Machines required
• Estimate equipment requirement for each operation
• Combine operation requirement to obtain overall equipment requirement

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 Phase I: Scrap Estimate

• Geometric or quality defects material wasted (scrap)

• Market estimate + scrap estimate
• = number of units scheduled for production
• Scrap estimates:
• Pk : percentage of scrap produced in k-th operation
• Ok : desired non-defective output from k-th operation
• Ik : input requirement to k-th operation

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 Phase I: Scrap Estimate ...

= Ik+1

On
I1 
(1  P1 )(1  P2 )......(1  Pn )
I2 I3 In-1 In
I1 1 2  n-1 n On
P1 P2 Pn-1 Pn 4
 Phase II: Equipment Requirements -
Machine fraction

• Total time reqd. =

setup time X # setups + run • F = number of machines required per shift

time X # opers. • S = standard time (minutes) per unit produced

• Q = number of units to be produced per shift
• Determining total number of
• E = Efficiency; actual production rate as
equipments:
percent of standard time
• Combine equipment factors for
identical equipment type • H = time of availability (minutes) per machine
• consider overtime and • R = reliability of machine
subcontracting (percent uptime=uptime/(uptime + downtime)
• SQ = total time required to perform an operation
• HER = time available to complete the operation 5
 Exercise 1 (Serial)

• A product has a market estimate of 97,000 components and requires

three processing steps (turning, milling and drilling), having defective
estimates of 0.04, 0.01 and 0.03. the market estimate is the output
required from step 3. what is the amount of raw material required for
operation 1?
I1 I2 I3
1 2 3 97,000

d1=0.04 d2=0.01 d3=0.03

I1=101,010/(1-0.04)=105,219 I2=100,000/(1-0.01)=101,010 I3=97,000/(1-0.03)=100,000

97,000
I1=
(1−0.03)(1−0.01)(1−0.04)
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Exercise 2 (No-serial)
 Exercise 3

I3 = (1 – d1) I1 + (1 – d2) I2
I3 = (1 – d1) I1 + (1 – d2) d1 I1
I3 = I1 ((1 – d1) + (1 – d2) d1 )
=> I1 = I3 / (1 – d1) + (1 – d2) d1
I3 = O3 / (1 – d3) alors
I1 = O3 / (1 – d3) ((1 – d1) + (1 – d2) d1 ) 8
 Exercise 3 (cont.)

• End product requirement is 100,000 pieces. Based on the given

rework assumption earlier, calculate the number of units required for
processing at the first operation. Defective rates are 0.03, 0.40 and
0.02 respectively.

• I1=100,000/0.98(0.97+0.03(0.60))=103,280

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 Exercise 4 : Calculating production requirements for assembled products
We assume that the components are outsourced and the final assembly is performed locally. The final products are
two assemblies requiring three components. Assembly1 requires 4 units of component 1 and 3 units of component
2, Assembly 2 requires 2 units of component 2 and 1 unit of component 3. The percentage defectives are d1 = 0.06,
d2 = 0.05, d3 = 0.04, d4 = 0.03 et d5 = 0.02.

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 Exercise 5
• A company manufactures 3 products (P1, P2 and P3) from 4 raw
material. These products are produced in 6 machines that have scrap
rates. The demand of P1, P2 and P3 is 2000, 1000 and 3000 units
respectively. The production process is given below.
a) The purchasing department wants to know the number of raw materials
needed. Calculate input and output values for each machine and raw
material needed.
b) The owner of the company wants to determine layout. Calculate from to
chart.
c) All of the purchased raw materials are carried by forklifts in the inventory
area. Raw materials are carried with 100 lots. Each lot is carried in 10 mins.
The forklifts work with 90 % efficiency and 70 % reliability. The task should
be completed in in a shifts with 8 hours. Calculate the number of forklifts
needed.

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 a) INVENTORY AREA

I1 I2 I3 I4
Not: Machine 1 scrap rate 2053 2062/(1-0.05)= 2171 3222 3357
is high compared to p1I1
standards. Since it is an M1 M4 M6
expensive machine, it is in 2053*0.3= 616 3222
use. The scraps are p1:0.3 p4:0.05 p6:0.04
remanufactured in
machine3 and send to M2.
(1-p1)I1
2053*0.7
p3:0.02 M3 = 1437
1031*2= 2062 1031*3= 3093
(2)
(1-p3)p1I1 = 604
A (3) Not: There is an assembly
operation. 2 units of M4
(1-p3)p1I1+(1-p1)I1=2000/(1-p2) 3000/(1-0.02)
output and 3 units of M6
= 3061 1000/(1-0.03)= 1031
(1-0.02)0.3I1+(1-0.3)I1=2000/(1-0.02) output is assembled and
send to M5.
(0.98*0.3I1+0.7I1=2041
0.994I1=2041 M2 M5
I1=2053
p2:0.02 p5:0.03
P3 P1 P2
(3000) (2000) (1000) STOCK AREA 12
b) From-to ( parts are carried with 100 loads)

FROM-TO INV M1 M2 M3 M4 M5 M6 STOCK

INV 21 22 33+34
M1 14 6
M2 50
M3 6
M4 30 20
M5 10
M6 32 31
STOCK

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 c) Forklift Requirements

• All of the purchased raw materials are carried by forklifts in the inventory area.
Raw materials are carried with 100 lots. Each lot is carried in 10 mins. The
forklifts work with 90 % efficiency and 70 % reliability. The task should be
completed in in a shifts with 8 hours. Calculate the number of forklifts needed.
S = 10 mins
Q = 2053/100 + 2171/100 + 3222/100 +
3357/100 = 21 + 22 + 32 + 34 = 99
E = 0.90
H = 8*60=480 mins
R = 0.70
F = (10*99) / (0.9*0.7*480) = 3.27

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Exercise 6

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