Production/Operations
Management

Block
Copyrights

4
Production Planning & Scheduling
UNIT11
Aggregate Production Planning 209

UNIT12
Just-in-Time (JIT) 219

UNIT13
Scheduling & Sequencing 245

AIOU

 
 

Copyrights

AIOU
206
 
 

BLOCK 4 PRODUCTION PLANNING &

SCHEDULING
Block 3 was on Production System Design. The block has got four units: Capacity Planning,
Facilities Planning, Work System Design and Managing Information for Production System.

Copyrights
This block contains 3 units.
Unit l1 has talked about Aggregate Production Planning with its major purposes. It has
highlighted different steps in aggregate planning and its managerial importance. The issues like
work force adjustment, vacations schedules, subcontracting and backlongs etc. are discussed in
details.
Unit 12 is very important as it deals with Just-in Time Production/Operations System. It has
introduced JIT concept with its major characterostocs with respect to people involvement, team
work, discipline, TQM, and pull method of material flow. The unit has introduced JIT philosphy
in manufacturing. The Kanban System in JIT has given an idea of eliminating the waste in
manufacturing. Finally the unit has given different examples of JIT implementation in different
industries.
Unit 13 is on Scheduling and Sequencing. It has classified the production system and scheduling
of each production system: mass production, batch production, and job shop production The unit
has discussed in nutshell the sequencing of different operations.

AIOU
207
 
 

Copyrights

AIOU
208
 
 

UNIT11 AGGREGATE PRODUCTION PLANNING

Objectives
Upon reading this unit you will get to know:
• Necessity of aggregate planning
•
•
Copyrights
Linkage between different levels of production planning
Steps in aggregate planning
• Sources of medium range production capacity
• Managerial importance of aggregate planning.
Structure
11.1 Introduction
11.2 Linkage Between Long Term and Short Term Planning
11.3 The Purpose of Aggregate Planning
11.4 Steps in Aggregate Planning
11.5 Dimension of Production Capacity
11.6 Managerial Importance of Aggregate Planning
11.7 Summary
11.8 Self-Assesment Exercises
11.9 Further Readings

11.1 INTRODUCTION
If the demand for a company products was absolutely stable, there would be no need for
aggregate planning. The company can develop a production process and a workforce level that
would produce exactly the amount demanded every month in a repeating cycle while
maintaining practically no inventory. However this is seldom found to be true and the demand
mix among the products do fluctuate over time.
The problem facing the company is to create production, inventory and the workforce plans far
enough in advance to satisfy the anticipated demand at minimum total cost without harming the
company's long terms strategy and viability. The output of the planning process should be a
period by period plan of how much of each product type to produce, how much to add or remove
from the inventory, how much the workforce to be increased or decreased, how much over time
work should be planned and, if applicable, how much production should be subcontracted.
As the aggregate plan is based on satisfying expected intermediate term demands, it is necessary
that accurate forecasts of these demands be made. Due importance must be given to seasonal
factor while arriving at forecasts. In addition, intermediate range wage rates, material prices and

AIOU
holding costs also affect optimal plans. All these parameters must be properly considered.
Aggregate Planning is necessary in Production and Operations Management (POM) because it
provides for,
Fully loaded facilities and minimizes overloading and underloading, thus reducing costs.

209
 
 

Adequate production capacity to meet expected aggregate demand.

Getting the most output for the amount of resources available, which is important in times of
scarce production resources.
Aggregate planning is the key to managing change in POM because the changing patterns of
customer demand and the plans for providing production resources that adapt to those changes

Copyrights
are fundamental to aggregate planning.

11.2 LINKING LONG TERM AND SHORT TERM PLANNING

Decisions involving design and mix of products, the location and capacity of facilities and design
of production process are long term decision and they decide the environment within which the
production system must operate.
On the other hand aggregate planning is the process of determining the company's production,
inventory and personnel levels etc. for three to twelve month ahead. Aggregate plans act as
interface (Fig-11.1) between strategic decision, which fix the operating environment, and short
term scheduling and control decisions, which guide the company's day-to-day operations.
Aggregate planning typically focuses on manufacturing several aspects of operations-aggregate
production, inventory, and personnel levels-to minimize costs over some planning horizon while
satisfying demand and policy requirements. Intermediate term planning is normally performed in
terms of aggregate production units and resources (hence the term aggregate planning) rather
than for individual products. Although in the intermediate term major facility and process
changes usually be expanded by using overtime work, subcontracting production, hiring addition
workers, or even adding entire work shifts. This approach takes the demand pattern as forecasted
and focuses on minimizing the costs.

AIOU
Fig 11.1

210
 
 

11.3 THE PURPOSE OF AGGREGATE PLANS

In this section we explain why companies need aggregate plans and how they use them to take a
macro view of their business. We also discuss how the aggregate plan relates to a company's
long-term and short-term plans. Only qualitative aspect of the aggregate planning in discussed.
Quantitative explanation of aggregate planning is given in block 4 of MS-5.
Aggregation
Copyrights
The aggregate plan is useful becauses it focuses on a general course of action, consistent with the
company's strategic goals and objectives, without getting bogged down in details, for example, it
allows managers to determine whether they can satisfy budgetary goals without having to
schedule each of the company's thousands of products and employees. Even if a planner could
prepare such a detailed plan, the time and effort required to update it would make it
uneconomical. For this reason, production and staffing plans are prepared by grouping together,
or aggregating, similar products, services, units of labour, or units of time. For instance, a
manufacturer of bicycles that products 12 different models of bikes might divide them into,two
groups, mountain bikes and road bikes, for the purpose of preparing the aggregate plan, it might
also consider its work-force needs in the terms of unit of labour needed per month. In general,
companies aggregate products or services, labour, and time.
Following Definitions may be used for Aggregating Products:
— Items are the end products sold to customers.
— Families are groups of items that are processed on the same equipment and share the
same general machine setup.
— Product types are groups of product families that have similar cost structures, holding
costs per unit, productivities, and seasonal demand patterns.
Aggregate planning is normally done at the product type level of aggregation and at the facility
level, rather than at the corporate level.
Assigning items to families and product types is easier than it may at first appear. One of the
tricks to making these assignments is somewhat counter intuitive. Product types, families, and
item from a hierarchy, with product types being the highest level of the three.
Selecting the aggregate measures of production and inventory is normally straight forward
because items within the same product type should be very similar physically for example, the
units may be expressed in terms of the number of appliances, number of refrigerators, thousand
of TV, or tones of steel produced and stored. Production resources and capacity should be
expressed in aggregate form as well. For example, one of the variables to be determined by the
plan is the amount of direct labour (workforce level) needed, including the amount of overtime
labour to use in each time period. The measure of workforce or overtime would be expressed in
labour hours or resources consumed in production, such as gallons of paint or hours of machine

AIOU
time should be expressed in terms of the aggregate amount of each resource consumed to
produce one unit of the aggregate product.
Product Famlies: Sometimes, products families relate to market grouping or in the case of
production plans, to specific manufacturing processes. A firm can aggregate its products or
services into a set of relatively broad families, avoiding too much detail at this stage of the

211
 
 

planning process. Common and relevant measurements, such as units, rupees, standard hour or
litre, should be used. For example, consider the bicycle manufacturer that has aggregated all
products into two families: mountain bikes and road bikes, this facilitates production planning
for the assembly lines in the plant. A firm that socializes in quick oil changes might aggregate
the services it offers into two categories: the basic service and special services.
Labour: A company can aggregate labour in various ways, depending on workforce flexibility.

Copyrights
For example, if workers at the bicycle manufacturer are trained to work on either mountain bikes
or road bikes, for planning purposes management can consider its work force to be a single
aggregate group, even through the skills of individual workers may differ.
Alternatively, management can aggregate labour along product family lines by splitting the work
force into subgroups and assigning a different group to the production of each product family
devoting production lines and even entire plants to separate product families. In service
operations, such as a city government, workers are aggregated by the type of service they
provide: fire fighters, police officers, Citation workers, and administrators.
Companies that aggregate labour along product lines must plan for change in economic
conditions and consumer demand that may cause cutbacks in production of some product
families and increases in production of others when such shifts occur, labour may not be
interchangeable. For example, in automobile assembly, production of different product families
takes place in scattered locations. In such cases, planning for changes in workforce levels and the
use of overtime by aggregating labour around product families is the most practical approach.
Time: A planning horizon is the length of time covered by an aggregate plan. Typically, the
planning horizon is one year, although it can differ in various situations to avoid the expense and
disruptive effect of frequent changes in output rates and the work force adjustment usually are
made monthly or quartely. In other words, the company rather than days or hours. Some
companies use monthly planning periods for the near portion of the planning horizon and
quarterly periods for the later portion. In practice, planning periods reflect a balance between the
needs for (i) a limited number of decision points to reduce planning complexity and (ii)
flexibility to adjust output rates and work-force levels when demand forcecasts exhibit seasonal
variations. The bicycle manufacturer for example may choose monthly planning periods so that
timely adjustments to inventory levels can be made without excessively disruptive changes to the
work force.

11.4 STEPS IN AGGREGATE PLANNING

1) Begin with a sales forecast for each product that indicates the quantities to be sold in each
time period (usually weeks, months, or quarters) over the planning horizon (usually 3
months to 12 months).
2) Total all the individual product or service forecasts into one aggregate demand. If the
products are not additive because of heterogeneous units, a homogeneous unit of measure

3)
production capacity. AIOU
must be selected that both allows the forecasts to be added and links aggregate outputs to

Transform the aggregate demand for each time period into workers, materials machines,
and other elements of production capacity required to satisfy aggregate demand.
4) Develop alternative resource schemes for supplying the necessary production capacity to
212
 
 

support the cumulative aggregate demand.

5) Select the capacity plan from among the alternatives considered that statistics aggregate
demand and best meets the objective of the organisation.
Activity A
Visit to some manufacturing company in your neighborhood. Study their forecast for next year

Copyrights
for different products. Suggest a suitable aggregate plan based on it.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

11.5 DIMENSIONS OF PRODUCTION CAPACITY

An essential part of aggregate planning is a comprehensive understanding of each production
system's capacities. If particular importances are the answers to the following questions:
1) How much of each production resources is available? Production capacity in each time
period may be constrained of machines.
2) How much capacity is provided by each type of resource? The amount of resources
required to produce a single products allows the translation of demand into production
capacity needs. Labour standards (labour-hours per product) and machine standards
(machine hours per product) are commonly used to translate demand into the number of
workers and machines needed.
3) At what step in production do we determine capacity? In product-focused production,
capacity may be determined by a bottleneck operation, or an operation with the least
capacity for a product. In other types of production, capacity may be determined by the
number of labour-hours or machine-hours in a particular production department or an
entire factory.
4) How much does it cost to scale capacities up to down? The cost of hiring laying off and
recallng employees, for example, can affect plans for providing production capacity.
Such intricacies of production capacity have led production systems to identify several practical
sources of providing medium-range production capacity.
Sources of medium-Range production capacity
Because aggregate planning spans periods from only 3 to 12 months, not enough time is
available to increase capacity by adding building, machines, and other capital goods. This shifts
the focus to other sources of production capacity as plan are developed for supplying customer
demand. Several variables can be altered to change production capacity from month to month.
Among these variables are:
1)
AIOU
Straight-time labour — Production by workers paid straight time labour rates, which
usually means for 40 hours or less per week. The sources of labour are full-time and part
time present employees, new hires, and workers who have been laid off and can be
recalled. The local labour market could be a limiting factor, and union contracts can limit
management's flexibility in hiring new employees and laying off experienced workers.

213
 
 

2) Overtime labour — Production by workers paid overtime labour rates, which usually
means for more than 40 hours per week, overtime can be limited by union or company
policies.
3) Inventory — Production in previous time periods that is held for shipment in later time
periods.
4)
Copyrights
Subcontracting — Production of products or services by suppliers.
Straight-Time labour is the preferred source of production capacity and is used to provide a base
production capacity when demand exeeds the capacity of the existing work force, new hires
overtime inventory and subcontracting can be used. But new hires, overtime, inventory, and
subcontracting can cost more an cause other difficulties. Companies approach with caution the
decision of how to best production capacity for the peaks of demand.
Activity B
Study the policy followed by the company to meet the fluctuating demands. Suggest a " better
alternative.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

11.6 MANAGERIAL IMPORTANCE OF AGGREGATE PLANS

In this let us concentrate on the managerial inputs, objectives, alternatives and strategies
associated with aggregate plans.
Managerial Inputs
Figure 11.2 shows the type of information that managers from various functional areas supply to
aggregate plans. One way of ensuring the necessary cross-functional coordination and supply of
information is to create a committee of functional-area represepentatives, chaired by a general
manager, the committee has the overall responsibility to make sure that company policies are
followed, conflicts are resolved amanda final plan is approved.
Typical Objectives
The many functional areas in an Digitisation that give input to the aggregate plan typically have
conflicting objectives for the use of the organisation's resources. Six objectives usually are
considered during development of a production or a staffing plan:
1) Minimize costs maximize profits. If customer demand isn't affected by the plan
minimizing costs will also maximize profits.
2) Maximize customer service. Improving delivery time and on-time delivery may require
additional work-force, machine capacity, or inventory resources.

AIOU
214
 
 

Copyrights

Fig: 11.2
3) Minimize inventory investment. Inventory accumulations are expensive because the
money could be used more productive investments.
4) Minimize changes in production rates. Frequently changes in production rates can cause
difficulties in coordination line rebalancing.
5) Minimize changes in work-force levels. Fluctuating work-force levels may cause lower
productivity because new employees typically need time to become fully productive.
6) Maximize utilisation of plant and equipment. Firm with a product focus require
uniformly high utilisation of plant and equipment.
The weight given to each one in the plan involves cost trade-offs and consideration of non-
quantifiable factors. For example, maximizing customer service with fast, on-time delivery can
be improved by increasing -not minimisation the stock of finished goods in a production plan.
Or, for example, a staffing plan that minimizes costs may not minimize changes in work-force
levels or maximize customer service.
Balancing these various objectives to arrive at an acceptable aggregate plan involves
consideration of various alternatives the two basic types of alternatives are action s that adjust
demand pattern, whereas reactive alternatives are actions that respond to given demand patterns.
Reactive Alternatives
Reactive alternatives are actions that can be taken to cope with demand requirements. Typically,
an operations manager controls reactive alternatives that is the operations manager accepts
forecaster demand as a given and modifies work-force levels overtime, vacation schedules,
inventory levels, subcontracting and planned backlogs to meet that demand.
Work force Adjustment. Management can adjust work-force levels by hiring or laying off
employees. The use of this alternative can be attractive if the work force is largely unskilled or

AIOU
semiskilled and the labour pool is large. However, for a particular company, the size of the
qualified labour pool may limit the number of new employees that can be hire at any one time
also new employees must be trained and the capacity of the training facilities themselves might
limit the number of new hires at any one time in some industries laying off employees is difficult
or unusual for contractual reasons (unions) in other industries such as tourism and agriculture,

215
 
 

seasonal lay offs and hiring are norm.

Overtime and undertime an alternative to work -force adjustment is the use of overtime and
undertime. Overtime can be used to satisfy output requirements that cannot be completed on
regular time. However, overtime is expensive. Moreover, in many cases, workers do not want to
work a lot of ovrtime for extended period of time, and excessive overtime may result in declining
quality and productivity. Undertime is used when labour capacity exceeds demand requirements,

Copyrights
workers are kept on the payroll rather than being laid off. This option is used by companies that
have highly skilled, hard-to-replace employees (particularly firms with a process focus) or that
confront contractual obstacles to laying off workers. In the latter case, undertime can cause
inefficiency and higher unit costs.
Vocations Schedules: A firm can shut down during an annual full in sales, leaving a skeleton
crew to cover operations and perform maintenance, employees might be required to take all or
part of their allowed vacation time during this period. The companies sometimes use of this
alternative during the holiday period, not only to do maintenance work or install equipment, but
also to decease inventory. Use of this alternative depends on whether the employer can mandate
the vacation schedules of its employees. In any case, employees may be strongly discouraged
from taking vacations during peak periods or encouraged to take vacation during periods when
replacement part-time labour is most abundant.
Anticipation Inventory: A plant facing seasonal demand can stock anticipation inventory
during light demand periods and use k during heavy demand periods although this approach
stabilizes output rates and work-force levels, it can be costly because the value of the product is
greatest in its finished state, stocking components and sub assemblies that can be assembled
quickly when customer orders come in might be preferable to stocking finished goods.
Service providers generally cannot use anticipation inventory because services cannot be
stocked, in some instances however, services can performed prior to actual need, for example
telephone company workers usually lay cables for service to a new subdivision beefore housing
construction begins, they can do this work during a period when the workload for scheduled
services is low.
Subcontractors: Subcontractors can be used to overcome short-term capacity shortages, such as
during peaks of the season or business cycle. Subcontractors van supply services, make
components and subassemblies, or even assemble an entire product. If the subcontractor can
supply components or subassemblies of equal or better quality less expensively than the
company can produce them itself, these arrangements may become permanent, the major
automakers. For example, typically subcontract for underbody frames, steering linkage
components, and other item. In the service industry, book publishers are turning increasingly to
free-lance artists and copy editors as part of a downsizing trend.
Backlogs, Backorders and Stockouts: Another way in which firms with a process focus often
cope with a high demand forecast is to plan for order backlogs. A backlog is an accumulation of
customer orders that have been promised of delivery at some future date. Having a sizable
AIOU
backlog may be a good strategy, if on time delivery and quality are not Sacrificed. Delivery lead
times typically increase during seasonal peaks in demand. Firms with process focus often use
this method. The customer places an order for a customized product or service, and the firm
promises it for later delivery, job shops, TV repair shops, and automobile repair shops work to
varying degrees to backlogs. Examples of backlogs in services are tickets for a concert and
216
 
 

appointments to see a dentist.

Backorders and stockouts are used by firms with a product focus. A back order is a customer
order that is not ready for the customer when promised or demanded, thereby delaying demand
requirements to later periods. A stockout is an inability to satisfy the demand for a stock item
when it occurs. In this case, the customer may go to a competitor, resulting in a lost scale.
Generally, backorders and stockouts are to be avoided. Planned stockouts may be used, but only

Copyrights
when the expected loss in sales and customer goodwill is less than the cost of using other
reactive alternatives or aggressive alternatives, or adding the capacity needed to satisfy demand.
In conclusion, decisions about the use of each alternative for each period of the. planning horizon
specify the output rate for each period. In other words, the output rate is a function of the choices
among these alternatives.
Activity C
Analyse some real life cases and find out whether sub-contracting is an effective alternative or
not, in Indian/Pakistani Context
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

11.7 SUMMARY
It is clear from foregoing discussions that the success of any organisation very much depends on
how its long range planning is converted into reality. Aggregate planning plays pivotal role is
achieving this goal. Any mistake in medium range planning leads to wastage/improper use of
resources, excess/shortage of inventory etc. The success of organisation is directly linked with
how efficiently the medium range planning is done. Despite the number of models available and
the favourable results in a few cases aggregate planning models have not gained widespread
acceptance in industry. A more concerted implementation effort may be needed which includes
careful definition of the decision problem in each case, tailor-made models, and demonstration of
improved planning results.

11.8 SELF-ASSESSMENT EXERCISES

1. Aggregate planning is sometimes confused with scheduling. What is the difference?
2. The XYZ company manufactures a seasonal product. At the present, they use a level
labor force a matter of company policy. The company is afraid that, if they lay off
workers they will not be able to rehire them or to find qualifies replacements. Does this
company have a aggregate planning problem? Discuss.
3. It has been said that aggregate planning is related to personnel planning budgetting, and

4.
planning.
AIOU
marketing planning. Describe the nature of the relationship between these types of

What factors are important in choosing the length of the planning horizon for aggregate
strategy?
5. What assumption are used in deriving the LDR model?
217
 
 

6. What problems are being experienced is using aggregate planning in industry? How can
these problems be overcome?
7. How is the choice between a level strategy and a chase strategy influenced by the skill
level of the work force and the degree of automation? After all, isn't the choice between
these strategies just a matter of the lowest cost?
8.
9. Copyrights
Provide a definition of decision rule always required in and aggregate planning model?
A barber shop has been using a level work force of barbers 5 days a week, Tuesday
through Saturday. The barbers have considerable idle time on Tuesday through Friday,
with certain peak periods during the noon hours and after 4 p.m. each day. On Friday
afternoon and all day Saturday, all the barbers are very busy, with customers waiting a
substantial amount of time and some customers being turned away. What options should
this barber shop consider for aggregate planning? How would you analyze these options?
What data would be collected and how would be collected and how would the options be
compared.

11.9 FURTHER READINGS

1. Adam, Jr. E.E andElbert, R.J., Production and Operations Management. Prentice-Hall of
India, New Delhi.
2. Schroeder, R.G., Operation Management, McGraw-Hill Book Company.
3. Narasimhan, S.L, McLeavey, D.W., and Biilington, P.J., Production Planning and
Inventory Control Prentice-Hall of India, New Delhi.

AIOU
218
 
 

UNIT12 JUST-IN-TIME (JIT)

Objectives
Upon completion of this unit, you will get to know:
• What is the philosophy of just-in-time(JIT) operation
•
•
Copyrights
Characteristics of just-in-time system
Pull method versus push method of operation
• Prerequisite for JIT manufacturing
• Benefits of JIT manufacturing
• Kanban system of manufacturing
Structure
12.1 Introduction
12.1.1 Raw Material, WIP, Finished Goods
12.2 Stock Points in a Production- Distribution
12.3 Just-In-Time
12.4 Characteristics of Just-In-Time Systems
12.5 The Just-In-Time Manufacturing Philosophy
12.5.1 Prerequisite for JlT manufacturing
12.6 Elements of Manufacturing
12.6.1 Eliminating Waste
12.6.2 Enforced Problem Solving and Continuous Improvements
12.6.3 Benefits of JIT Manufacturing
12.7 JIT Purchasing
12.8 The Kanban System
12.9 JIT Implementation in Industries
12.10 Summary
12.11 Self-Assessment Exercises
12.12 Further Readings

12.1 INTRODUCTION
In financial parlance, inventory is defined as the sum of the value of raw materials, fuels and
lubricants, spare parts, maintenance consumables, semi-processed materials and finished goods
stock at any given point of time. The operational definition of inventory would be: the amount of
raw materials, fuel and lubricants, spare parts and semi-procetsed material to be stocked for the
smooth running of the plant. Since these resources are idle when kept in the stores, inventory is
defined as an idle resource or any kind having an economic value.

AIOU
Inventories are maintained basically for the operational smoothness which they can effect by
uncoupling successive stages of production, whereas the monetary value of inventory serves as a
guide to indicate the size of the investment made to achieve this operational convenience. The
materials management department is expected to provide this operational convenience with a
minimum possible investment in inventories. The objectives of inventory, operational and
219
 
 

financial, needless to say, are conflicting. The materials department is accused of both stock outs
as well as large investment in inventories. The solution lies in exercising a selective inventory
control and application of inventory control techniques.
Inventory control has been attracting the attention of managers in India for a long time.
12.1.1 Raw Material, WBP, Finished Goods

Copyrights
For control purposes, it is very essential to study the inventory in detail-raw materials,
production components, work-in-progress and finished goods inventories should be segregated
as the reasons for their existence and the causes for their size are different.
Raw materials and production components are purchased from outside suppliers and the reason
for their existence is to uncouple the purchasing function from the production function. The size
of this inventory is depent upon factors such as internal lead time for purchase, supplier lead
time, vendor relations availability of the material government import policy, in the case of
imported material, the annual consumption of the materials (ABC classification) and the relative
criticality of the material (VED classification).
Work-in progress inventory might exist merely because of the production cycle time or could
also be maintained for decoupling successive manufacturing operations. The decoupling could be
employed either for implementing an incentive scheme or to enable each of the production
departments to plan independently. The size of this inventory is dependent on the production
cycle time, the percentage of machine utilization, the make/ buy policies of the company, and the
management policy for decoupling the various stages of manufacturing.
The finished goods inventory is maintained to assure a free-flowing supply to the customers and
for this the marketing department insists on substantial finished goods inventory. The size also
depends on the ability of the marketing department to push the products, the company's ability to
stick to the delivery schedule of the client, the shelf life and the warehousing capacity.
Two factors which influence the inventories of all types are: the accuracy and details of the final
forecast-all the inventories are geared for future requirements and are therefore sensitives to this
factor-and the available storage space-the logical sequence to this factor is the shelf life of the
items stored, a factor for consideration in the case of perishable goods.

12.2 STOCK POINTS IN A PRODUCTION-DISTRIBUTION

Figure 12.1 identifies the main stock points that occur in a production- distribution system from
raw materials and ordering of supplies through the productivity process, culminating in
availability for use. At the head of the system, we must have raw materials and supplies in order
to carry out the production process. If we are to be able to produce at minimum cost and by the
required schedule, these materials and supplies need to be available. Therefore, we need to
develop policies for deciding when to replenish these inventories and how much to order at one
time. These issues are compounded by price discounts and by the need to ensure that delays in

AIOU
supply time and temporary increases in requirements will not disrupt operations.

220
 
 

Copyrights
Fig: 12.1: Main Stock Points in a Production-Distribution System
Adapted from Buff a, ES; Modern Production/Operations Management, 7/e. Wiley Eastern Ltd.
As a part of the conversion process within the productivity system we have in process
inventories, which are converted to finished good inventories. The finished goods inventory
levels depend on the policies used for deciding on the production lot sizes and their timing and
on the usage rates determined by distributor's orders. High volume items would justify different
policies for production and inventory replenishment than medium or low - volume items. The
production lot size decisions and their timing are very important in relation to the economical use
of personnel and equipment and may justify continuous production of a high volume item. On
the other hand, low volume items will be produced only periodically in economic lots. Again, we
will need policy guidelines to determine the size of buffer inventories to absorb the effects to
production delays arid random variations in demand by distributors.
The functions of distributors and retailers are those of inventorying products to make them
available. Distributors and retailers often carry a wide range of items, and they need
replenishment policies that, take into account this kind of complexity. They commonly place
routine orders periodically, ordering a variety of items from each supplier. Price discounts are
often an additional factor to consider.
Although the details of problems may differ at each level in the production-distribution system,
note that at each level the basic policy issues are in the inventory replenishment process, focused
on the order quantity and when to order.

12.3 JUST-IN-TIME
Just-in-Time (JIT) is a Japanese innovation, and key features of this were perfected by Toyota.
Some facets of the management practices Toyota developed are ideologically related to Japan's
unique customs, culture, and labour - management relations. However there is nothing uniquely
Japanese about JIT production and it is usable anywhere. The concepts have been applied
successfully in many companies throughout the world. JIT production means producing and
buying in very small quantities just in time for use. It is simple hand to mouth mode of industrial
operations that directly cuts inventories and also reduces the need for storage space, racks,
conveyors, forklifts, computer terminals for inventory control and of course material control
personnel. Products are assembled just before they are sold, subassemblies are made just before
the products are assembled, and components are fabricated just before the subassemblies are

AIOU
made - so work-in-process (WIP) inventory is low and production lead times are short. To
operate with these low inventories, the companies must be excellent in other areas. They must
have consistently high quality throughout the organizations. To achieve this quality and
coordination, they must have the participation and cooperation of all employees. So JIT
manufacturing or manufacturing excellence is a broad philosophy of continuous improvement.
221
 
 

More important, the absence of continuous improvement. More important, the absence of extra
inventories creates an imperative to run an error free operation because there is no cushion of
excess parts to keep production going when problems crop up, causes of error are rooted out,
never to occur again.
The JIT transformation begins with inventory removal. Fewer materials are bought, and parts
and products are made in smaller numbers; that is the lot size inventories thereby decrease. This

Copyrights
immediately results in work stoppages. Production comes to standstill because feeder processes
breakdown or produce too many detectives and there are no buffer stock to keep things going on.
Once this happens, analysts and engineers try to solve the problems and keep things going on.
Each round of problem exposure and solution increases productivity and quality too.
Just-in-time (JIT) is a philosophy of improvement through aggressively discovering and
resolving any problems or weaknesses that impede the organization's effectiveness and
efficiency. Basically, it seeks to eliminate all waste within the organisation, including the waste
of underutilizing the talents, skills, and potential of its employees. Anything that does not
contribute to add in value for an internal or external customer is considered waste. The
philosophy orginated in manufacturing operations, but its concepts have been applied in other
area such as a means of work, service and distribution. JIT can be very effective and powerful as
a means of improvement.
Activity A
What is Just-in-time (JIT) production? How does it differ from Manufacturing Resource
Planning (MRP)? What is MRP-JIT system?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
Activity B
Visit a repetitive manufacturing facility in your area. What, are the major causes of inventory?
Be sure to ask about lot sizes and setup times. Would a JIT system work in this facility? Why
and why not?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

12.4 CHARACTERISTICS OF JUST-IN-TIME SYSTEMS

Just-in-time systems focus on reducing inefficiency and unproductive time in the production
process to improve continuously the process and the quality of the produce or service. Employee
involvement and inventory reduction are essential to JIT operations. Just-in-time systems are
known by many different names, including zero inventory synchronous manufacturing, lean
AIOU
production, stock less production (Hewlett- Packard), material as needed (Harley - Davidson),
and continuous flow manufacturing (IBM). In this section we discuss the following
characteristics of JIT systems: People involvement, Team Work, Discipline, total quality
management, pull method of material flow, small lot sizes, short setup times, uniform
workstation loads, standardized components and work methods, close supplier ties, flexible work
222
 
 

force, product focus, automated production, and preventive maintenance.

12.4.1 People Involvement
Probability all management efforts have some behavioural aspects, because management is
working through other people to accomplish the organization's objectives. Management plans
and decisions only lay the groundwork. This is the resulting human behaviour that determines a

Copyrights
company's success or failure. Such terms as zero inventory and stock less production have given
some people the impression that JIT is only an inventory programm. JIT has a strong human
resources management components that must be recognized if the technical component is to be
fully successful. Much of the success of JIT can be traced to the fact that companies that use it
train their employees to have the appropriate skill, give them responsibility, and coordinate and
motivate them.
The JIT philosophy of continuous improvement and minimization of waste considers waste to be
any activity that does not add value to the product or serve the customer in some way. One form
of waste that is inconspicuous and difficult to combat is the underutilization of human talent. JIT
seejcs to utilize more fully the creative talents of employees, suppliers, subcontractors, and
others who may contribute to the company's improvement.
Businesses ultimately succeed or fail because of their people. JIT is no exception to this rule.
Because JIT is a system of enforced problem solving, having a dedicated work force committed
to working together to solve production problems is essential. JIT manufacturing, therefore, has a
strong element of training and involvement of workers in all phases of manufacturing.
12.4.2 Teamwork
First, and foremost, a culture of mutual trust and teamwork must be developed in an
organization. Managers and workers must see each other as co-workers committed to the
company's success.
Successful people involvement steams from a culture of open trust and team work in which
people interact to recognize, define, and solve problems. Sometimes it is mistakenly assumed
that this component is just another program, such as a suggestion program or a quality circle
program. People involvement can include these programs and others, such as adhoc project
teams that focus on specific improvement targets and semi-autonomous work teams whose
membership seldom changes. The involvement components of JIT is much broader than a
program or two: it is a management style and a permanent company wide attitude of teamwork.
So that each person works to improve the company. People are encouraged to suggest ways to
improve methods which are quickly and fairly considered, and the companies are open to trying
something new that seem like a worthwhile improvement.
Another important factor that is crucial to JIT is the empowerment of workers. This means that
workers are given the authority to take the initiative in solving production problems. Rather than
waiting for guidance from above, workers have the authority to stop production at any tune for
such things as quality problems machine malfunctions or safety concerns. Groups of workers are

AIOU
then encouraged to work togather to quickly get production going again. Once workers have
identified problems. They are encouraged to meet during breaks before work or after work to
discuss the problems. Having workers actively involved in problem solving is the objective of
worker empowerment.
People, suppliers, workers, managers and customers must all be motivated and committed to
223
 
 

teamwork for JIT manufacturing to be effective.

12.4.3 Discipline
This open, improvement - driven atmosphere does not mean, however, that any employee is free
to work by any method he or she choose to try. Usually there is a standard way each job is to be
done. If an improvement is suggested and approved, a new standard procedure will be adopted.

Copyrights
This standardization prevents variations in products or services which can cause defects. Defects
occure because some variation has been introduced in to a material or procedure that normally
products good result. When an efficient procedure that results in good quality is established it is
to be followed until a better way is tested and approved. You can see that creativity and openness
to change are needed, but it is creativity in conjunction with teamwork and discipline that
achieves consistent good quality and leads to improvements.
12.4.4 Total Quality Management (TQM)
JIT systems seek to eliminate scrap and rework in order to achieve a uniform flow of materials.
Efficient JIT operations require conformance to product or service specifications. JIT systems
control quality at the source, with workers acting as their own quality inspectors.
JIT manufacturing depends on a system of TQM being in place. Successful JIT manufacturing
goes hand-in-hand with an organization-wide TQM culture. Just as everyone has to be involved
in JIT, so also must everyone be involved in TQM. Total commitment to producing products of
perfect quality every time and total commitment to producing products for fast delivery to
customers have one essential thing in common: Both are finely focused on the overall goal of
satisfied customers.
12.4.5 Pull Method of Material Flow
Just-in-time systems utilize the pull method of material flow. However, another popular method
of material flow is the push method. To differentiate between these two systems, we consider the
production system for a fast food dish at a restaurant. There are two workstations. The dish
maker is the person responsible for producing this dish: the cutlets must be prepared; buns must
be toasted and then dressed with ketchup, pickles, onions, lettuce, and cheese; and the cutlets
must be inserted into buns and put on a tray. The final assembler takes the tray, wraps the buns in
paper, and restocks the inventory. Inventories must be kept low because any buns left unsold
after ten minutes must be destroyed.
The flow of materials is from the dish maker to the final assembler to the customer. One way to
manage this flow is by using the push method, in which the production of the item begins in
advance of customer needs. With this method, management schedules the receipt of all raw
materials (e.g., vegetables, buns, and condiments) and authorizes the start of production, all in
advance of the dish needs. The dish maker starts of production of 24 no. of dish (the capacity of
the griddle) and, when they are completed, pushes them along to the final assembler's station,
where they might have to wait until he is ready for them. The packaged dishes then wait on a
warming tray until a customer purchases one.

AIOU
The other way to manage the flow among the dish maker, the final assembler, and the customer
is to use the pull method, in which customer demand activates production of the item. With the
pull method, as customer purchase dish, the final assembler checks the inventory level of dish
and, when they are almost depleted, orders six more. The dish maker produces the six dish and
gives the tray to the final assembler, who completes the assembly and places the dish in the
224
 
 

inventory for sale. The pull method is better for the production of dish: The two workers can
coordinate the two workstations to keep inventory low, important because of the ten-minute time
limit. The production of dish is a highly repetitive process, setup times and process times are
low, and the flow of materials is well defined. There is no need to produce to anticipated needs
more than a few minutes ahead.
Firms mat tend to have highly repetitive manufacturing processes and well-defined material

Copyrights
flows use just-in-time systems because the pull method allows closer control of inventory and
production at the workstations. Other firms, such as job shops, producing products in low
volumes with low repeatability in the production process, tend to use a push method such as
MRP. In this environment a customer order is promised for delivery on some future date.
Production is started at the first workstation and pushed ahead to the next one. Inventory
accumulates in anticipation of shipping the completed order on the promised date.
12.4.6 Small Lot Sizes
Rather than building up a cushion of inventory, users of JIT systems maintain inventory with lot
sizes mat are as small as possible. Small lot size have three benefits. First, small lot sizes reduce
cycle inventory, the inventory in excess of the safety stock carried between orders. The average
cycle inventory equals one-half the lot size: As the lot size gets smaller, so does cycle inventory.
Reducing cycle inventory reduces the time and space involved in manufacturing and holding
inventory.
Second, small lot size help cut lead times. A decline in lead time in turn cuts pipeline (WIP)
inventory because the total processing time at each workstation is greater for large lots man for
small lots. Also, a large lot often has to wait longer to be processed at the next workstation while
that workstation finishes working on another large lot. In addition, if any defective items are
discovered, large lots cause longer delays because the entire lot must be inspected to find all the
items that need rework.
Finally, small lots help achieve a uniform operating system workload. Large lots consume large
chunks of processing time on one workstation and therefore complicate scheduling.
12.4.7 Short Setup Times
Reduced lot sizes have the disadvantage of increased setup frequency. In operations where the
setup times are normally low, small lots are feasible. However, in fabrication operations with
sizable setup times, increasing the frequency of setups may result in wasting employee and
equipment time. Theses operations must reduce setup times to realize the benefits of small-lot
production.
12.4.8 Uniform Workstation Loads
The JIT systems works best if the daily lo'ad on individual workstation is relatively uniform.
Uniform loads can be achieved by assembling the same type and number of units each day, thus
creating a uniform daily demand at all workstations. Capacity planning, which recognizes

master production schedule. AIOU

capacity constraints at critical workstations and line balancing are used to develop the monthly

12.4.9 Standardized Components and Work Methods

The standardization of components, called part commonality or modularity, increases
repeatability. For example, a firm producing 10 products from 1000 different components could
225
 
 

redesign its products so that they consist of only 100 different components with large daily
requirements. Because the requirements per components increase, so does repeatability; that is,
each worker performs a standardized task or work method more often each day. Productivity
tends to increase because workers learn to do the task more efficiently. Standardization of
components and work methods aids in achieving the high-productivity, low-inventory objectives
of JIT systems.

Copyrights
12.4.10 Close Supplier Ties
The JIT philosophy may extend beyond the walls of the company applying JIT, to include its
suppliers. It has an impact on the entire logistics system, or "supply chain." Because JIT systems
operate with very low levels of inventory, close relationships with supplier are necessary. Stock
shipments must be frequent, have short lead times, arrive on schedule, and be of high quality. A
contract might require a supplier to deliver goods to a factory as often as several times per day.
Purchasing managers focus on three areas: reducing the number of supplier, using local
suppliers, and improving supplier relations.
Typically, one of the first actions undertaken when a JIT systems is implemented is to pare the
number of suppliers. Xerox, for example, reduced the number of its suppliers for 5000 to just
300. This approach puts a lot of pressure on these suppliers to deliver high-quality components
on time. By placing a bigger percentage of its business with its business with its best suppliers,
the company can improve its quality and the reliability of receiving items. The partnership is a
long term agreement so the companies can develop a smooth working relationship. The desire is
for the supplier to become an extension of the company so that the supply chain is a seamless
organization that works to serve the ultimate customer better than any competing supply chain
could. The JIT Company can also benefit from the supplier's expertise by having supplier
representatives participate in the design phase of few products and recommend improvements.
They also work with their suppliers' vendors, trying to achieve JIT inventory flows throughout
the entire supplier chain.
It can be beneficial to a supplier to work in such a relationship, particularly with a high-volume
manufacturer. When a company reduces the number of suppliers for an item, the volume of
purchase from the remaining supplier or supplier can increase dramatically.
Continuous improvement is central to the philosophy of JIT and is a key reason for its success.
12.4.11 Flexible Work Force
Workers in flexible work forces can perform more than one job. When the skill levels required to
perform most tasks are low, a high degree of flexibility in the work force can be achieved with
little training. In situations requiring higher skill levels, such as at the Hi-tech industries, shifting
workers to other jobs may require extensive, costly training. Flexibility can be very beneficial.
Workers can be shifted among workstations to help relieve bottlenecks as they arise without
resorting to inventory buffers. This is an important aspect to Hie uniform flow of JIT systems.
They can also step in and do the job for those on vacation or out sick. Although assigning

boredom and refreshes workers.

12.4.12 Product Focus
AIOU
workers to tasks they don't usually perform may reduce efficiency, some rotation relieves

A product focus can reduce the frequency of setups. If volumes of specific products are large
enough, groups of machines and workers can be organized into a product layout to eliminate
226
 
 

setups entirely. It volume is insufficient to keep a line of similar products busy, group technology
can be used to design small production lines that manufacture, volume, in families of
components with common attributes. Chang covers from a components in one product family to
the next component in the same family are minimal.
12.4.13 Automated Production

Copyrights
Automation plays a big role in JIT systems and is a key to low-cost production. Sakichi Toyota,
the founder of Toyota, once said "whenever there is money, invest it into machinery". Money
freed up because of JIT inventory reductions can be invested in automation to reduce costs. The
benefits, of course, are greater profits, greater market market share (because prices can be cut),
or both. Automation should be planned carefully, however, many managers believe that if some
automation is good, more is better. That isn't always the case.
12.4.14 Preventive Maintenance
Because JIT emphasizes finely tuned material flows and little buffer inventory between
workstations, unplanned machine downtime can be disruptive. Preventive maintenance can
reduce the frequency and duration of machine downtime. After the technician has performed
routine maintenance activities, he/she can rest other parts that might need to be replaced.
Replacement during regularly scheduled maintenance periods is easier and quicker than dealing
with machine failures during production. Maintenance is done on a schedule that balances the
cost of the preventive maintenance program against the risks and costs of machine failure.
Another tactic is to make workers responsible for routinely maintaining their own equipment and
develop employee pride in keeping their machines in top condition. This tactic, however,
typically is limited to general housekeeping chores, mini lubrication, and adjustments. High-tech
machines need trained specialists. Doing even simple maintenance tasks goes a long way toward
improving machine performance.
12.4.15 Production Methods
Procsses are designed so that there is less specialization of workers. The physical layout is
arranged so that a worker can operate two or three different machines, thus providing flexibility
in processes that might precedes the assembly line. The benefits that result from this organisation
of multi-function workers are:
• reduction of inventory between what would otherwise be separate processes
• decrease in the number of workers required, resulting in a direct increase in productivity
• increased worker satisfaction because of more broadly defined jobs
• multi-functional workers can engage in teamwork
There are three elements of job standardization that are included on a standard operation sheet
stacked up for all workers to see:
Cycle time, operations routing, and standard quantity of work in process.
AIOU
Based on the computed cycle time that is derived from market demand, the aggregate number of
workers required to produce one unit of output in the cycle time is determined. Rebalancing may
then be necessary to schedule for minimum labour input for a given output objective. The
standard quantity of work input for a given output objective. The standard quantity of work in

227
 
 

process indicates the in-process inventory required for smooth flow.

The smoothing of production is regarded as the most critical element in the Just-in-Time
objective. As will be described in more detail under the heading Kanban which follows, workers
go to the preceding process to withdraw the required parts and components for their operations.
If there are fluctuations in the rates at which these materials are withdrawn, then the preceding
process must hold buffer in-process inventories to give off the-shelf service. The required in-

Copyrights
process inventories would increase also for upstream processes. This results in the objective of
minimizing production fluctuations in the final assembly line by scheduling small lots of
individual models, and focusing "all out" efforts on minimizing setup times for all processes.
Activity C
Given your current understanding of Japanese business practices, would you like to work for a
Japanese corporation in your homeland? What would be the positive aspects? The negative
aspects?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

12.5 THE JUST-IN-TIME MANUFACTURING PHILOSOPHY

For years manufacturing firms have sought to provide products with the most value for lowest
cost. Now the leading firms provide products with the most value for lowest cost with the fastest
response time. Quick response to market demands provide a powerful, sustainable competitive
advantage. Indeed, time has emerged as a dominant dimension of global competition,
fundamentally changing the way organization compete. It is no longer good enough for firms to
be high-quality and low cost products. To successes today, they must also be first in getting
products and services to the customer fast. JIT is the weapons of choice today in reducing the
elapsed time of this cycle.
12.5.1 Prerequisites for JIT Manufacturing
The basic idea of JIT is rather simple- drastically reduce work-in-process (WIP) inventories
throughout the production system. In this way, products flow from suppliers to production to
customers with little or no delays or interruptions beyond the amount of time they spend being
produced at work centers in manufacturing. The overall objective of JIT manufacturing is to
reduce manufacturing lead times, and this is achieved by drastic reduction in WIP. The result is a
smooth, uninterrupted flow of small lots of products throughout production.
Most successful JIT applications have been in repetitive manufacturing, operations where batches
of standard products are produced at high speeds and high volumes with materials moving in a
continuous flow. The Toyota automobile factories, where the notion of JIT may have started, are
perhaps the best example of the use of JIT in repetitive manufacturing. In these factories, the

AIOU
continuous of products makes planning and control rather simple, and JIT works best in these
shop-floor situations. Successful use of JIT is rare in large highly complex job shops where
production planning and control is extremely complicated. Smaller, less complex job shops have
used JIT, but these companies have taken many steps to change operations so mat they behave
somewhat like repetitive manufacturing. We will discuss more about this in the next section.

228
 
 

JIT does not come free-certain changes to the factory and the way it is managed must occur
before the benefits can be realized. Among these changes are:
1) Stabilize production schedules.
2) Make the factories more focused.
3) Increase production capacities of manufacturing work centers.
4)
5)
Copyrights
Improve products quality.
Cross-train workers so that they are multi skilled and competent in several jobs.
6) Reduce equipment breakdowns through preventive maintenance.

12.6 ELEMENTS OF MANUFACTURING

We will discuss JIT by examining its important components, and controlling production, and
several of its ongoing activities.
12.6.1 Eliminating waste
Eliminating waste of all kinds is the deep-seated idealogy behind JIT. Shigeo, a JIT authority at
Toyota, identified seven waste in production that should be eliminated. Table 12.1 lists and
describes these waste.
Table 12.1: Toward Eliminating Waste in Manufacturing
A recognised JIT authority and engineer at the Toyota Motor company, Shigeo Shingo, identities
seven wastes.
1. Overproduction: Make only what is needed now.
2. Waiting: Coordinate flows between operations and balance load imbalances by flexible
workers and equipment.
3. Transportation: Design facility layouts that reduce or eliminate materials handling and
shipping.
4. Unneeded production: Eliminate all unneeded production steps.
5. Work in Process (WIP) inventories: Eliminate by reducing setup times, increasing
production rates, and better coordination of production rates between work stations.
6. Motion and Effort: Improve productivity and quality by eliminating unnecessary human
motions, make necessary motions more efficient, mechanize, then automate.
7. Defective products: Eliminate defects and inspection. Make perfect products.
12.6.2 Enforced Problem Solving and Continuous Improvement
In traditional manufacturing in-process inventories allow production to continue even if

AIOU
production problems occur: thus, high machine and worker utilization is achieved. If defective
products are discovered, machines malfunction, or material stock outs occur, in process
inventory can be used to feed what would otherwise be idle workers and machines. The in-
process inventory covers up production problems in traditional manufacturing. Behind JIT is the
continuous drive to improve production process and methods. Toward that end, JIT strives to

229
 
 

reduce inventories because high inventory levels are thought to cover up production problems.
By drastically reducing in-process inventories, production problems are uncovered and
production stops until the causes of the production problems are solved. Only when the machine
is fixed, the quality control problem is solved, or the cause behind the stock out is found and
corrected only then can production begin again.
JIT is really a system of enforced problem solving. There are few safety factors in JIT. Every

Copyrights
material is expected to meet quality standards, every part is expected to arrive exactly at the time
promised and precisely, at the place it is supposed to be, every worker is expected to work
productively, and every machine is expected to function as intended without breakdowns.
Managers in JIT manufacturing have a choice. They can put a huge effort into finding and
solving the causes of production problems, or they can live with an intolerable level of
interruption. One of the approaches to implementing a JIT program is to reduce in-process
inventories, incrementally in small steps. At each step, different production problems have been
removed.
But the job eliminating production problems is not over. Vigilance in continuing to study
potential problem areas is needed to ensure continuous improvement. Japanese manufacturers
have long practiced what they called kaizen, the goal of continous improvement in every phase
of manufacturing. Managers may encourage workers to reduce in process inventories a step
further to see if any production problem occur, thus identifying a target for the workers to
eliminate. Machine setups may be studied with workers and managers working to strip away the
fat so that setups are almost instantaneous. Japanese manufacturers have long used the term less
than a minute set up, meaning that their goal is to have all setups take less than a minute.
12.6.3 Benefits of JIT Manufacturing
Some of the benefits that a JIT system provides are:
1) Inventory levels are drastically reduced.
2) The time it takes for products to get through the factory is greatly reduced, thus enabling
factories to engage in time based competition, using speed as a weapon to capture share.
3) Product quality is improved, and the cost of scrap is reduced. Product quality improves
because of worker involvement in solving the causes of production problem and with
smaller lots, defective parts are discovered earlier.
4) With less in-process inventory, less space is taken up with inventory and materials
handling equipment. Workers are closer together so that they can see each other,
communicate more easily, work out problems more efficiently, learn each other's jobs,
and switch job as needed. This promotes teamwork among workers and flexibility in
work assignments.
5) Because the focus in manufacturing is on finding and correcting the causes of production
problems, manufacturing operations are streamlined and problem-free.

12.7 JIT PURCHASING AIOU

The same pull type approach in JIT is applied to purchasing shipments of parts from suppliers. In
JIT purchasing, supplier use the replacement principle of Kanban by using small. Standardize
containers and make several shipments daily to each customer. If Kanban is used by a supplier.
230
 
 

Kanban cards authorize the movement of containers of parts between the supplier's shop and the
customer. In such arrangements, suppliers are ordinarily located near their customers. JIT
therefore not only reduces in-process inventories by using Kanban, but raw-materials inventories
are also reduced by applying the name principles to suppliers.
The essential elements of JIT purchasing are as follows:
1)
Copyrights
Supplier development and supplier relations undergo fundamental changes. The nature of
the relationships between customers and suppliers shifts from being adversarial to being
cooperative. The Japanese call these relationships subcontractor networks and costs and
improving quality, and even financing are often shared by customers and suppliers.
2) Purchasing departments develop long-term relationships with suppliers. The result is
long-term supply contracts with a few suppliers rather than short-term supply contracts
with many suppliers. Repeat business is awarded to the same suppliers, and competitive
bidding is ordinarily limited to new parts.
3) Although price is important, delivery scheduled, product quality, and mutual trust and
cooperation become the primary basis for supplier selection.
4) Suppliers are encouraged to extend JIT methods to their own suppliers.
5) Suppliers are ordinarily located near the buying firm’s factory, or if they are same
distance from the factory, they are usually clustered together. This causes lead times to be
shorter and more reliable.
6) Shipments are delivered directly to the to the customer's production line. Because
suppliers are encouraged to products and supply parts at a steady rate that matches the
use rate of the buying firm. Company-owned hauling equipment tends to be preferred.
7) Parts delivered in small, standard-size containers with a minimum of paperwork and in
exact quantities.
8) Delivered material is of near-perfect quality. Because suppliers have a long-term
relationship with the buying firms and because parts are delivered in small lot sizes, the
quality of purchased materials tends to be higher.

12.8 THE KANBAN SYSTEM

Accomplishing the Just-in-Time objective rests on systems for determining production methods,
and the information system called Kanban. Both of these concepts contributed to the objective of
having the right number of parts or components at the right place at the right time.
The Kanban system is a unique Japanese information system that "harmoniously" controls the
production quantities in each process.
The Kanban system is a simple information system used by a Work Centre (WC) to signal its
supplier WC to send a container of an item and to authorize the supplier WC to make another
AIOU
container of the particular item. The name comes from the Japanese word kanban, which means
"card" or "sign". Originally a card was used to signal the supplying work center. A WC can use
any of a variety of methods to trigger resupply by its supplier WC. For example, a flashing light,
the empty container itself, or a message on a computer terminal can communicate a request for
more material. We discuss the two-card kanban system to provide some detail about how it is
231
 
 

linking work centers.

In the two-card kanban system, one type of card, called a production card, or P-card, authorize a
WC to make one standard container of a particular part specified on the card. The second type of
card, called a move card, or M-card, authorizes the movement of one container of the specified
part from a particular WC to another WC as specified on the card. These cards are ordinarily
recirculated and new cards are issued only when production of an item is to be started or changed

Copyrights
significantly. The production card circulates repeatedly between the outbound material location
at a WC and the work area where the item is produced. Similar card transactions link the supplier
WC and the WCs that supply it. The user WC will also be linked to one or more WCs that
supplies. A series of these linkages connects the final assembly operation with the WC that
performs the first operations in making the product. Often, even the raw material vendor is
linked with the starting operation through a kanban signal. Kanbans picked up when one delivery
is made authorize the vendor to make specified items and deliver them on the next delivery.
The kanban systems can be a very simple, inexpensive, and effective method of coordinating
work centers and vendors. The organizations must be well disciplined so that there is always an
authorizing kanban with every container, ensuring that only the appropriate items are produced
and excessive inventory does not build up. There is also the opposite danger-that some WC
might run out of material and cause work to stop at work to stop at all subsequent WCs. If this or
any other pull method is to work well with small inventories, there must be no problems to
disrupt production: because there simply is not enough inventory to keep the plant running while
a problem is corrected.
Numeric example of Kanban system:
Example: (Adapted from Production and Operations Management by E.E.Adam and
R.J.Ebert, gpl. New Delhi)
The process of making component xy943 for the Digital Maestro CD player involves five work
stations. The cycle time is three minutes per item for every work station. This means that Kanban
card will be returned from any work station particular to the previous work station, on average,
every three minutes times the lot size: What would be the impact of reducing lot sizes from ten
units to two? Using lot sizes of ten units and two units, average WIP inventory levels and flow-
through times are calculated.
Solution:
WIP inventory levels:
Lot size =10: Average WIP = 5 work stations x 10 units/lot =50 units
Lot size = 2: Average WIP = 5x2=10 units
Process flow-through time (average)
Lot size =10: Flow-through time = 5 work stations x 10 units / lot x 3 minutes/ cycle =
150 minutes
AIOU
Lot size = 2: flow-through time = 5x2x3 = 30 minutes
In the example, by reducing lot sizes from 10 units to 2 units, the CD manufacturer was able to
reduce WIP by a factor of 5 from 50 to 10 units, and flow-through time also by a factor of 5,
from 150 to 30 minutes. Many companies have experienced similar drastic improvements
232
 
 

through the introduction of Kanban. For this reason, they are able to give better customer service
and have lower investments in inventories than do their competitors.
Activity D
Review Shigeo Shingo's seven wastes. Which of these wastes are addressed by the following JIT
techniques?
1)
2)
3)
Kanban Copyrights
Pull production

JIT purchasing
4) Flexible manufacturing
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
Activity E
There is a lot of discussion about but very few documented applications of JIT in service
organisations. What JIT techniques would be valid in the following situations? Be prepare to
explain your choices.
a) A bank
b) A restaurant
c) A copy center
d) A university
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
Activity F
Suppose a JIT work center is being operated with a container size of 25 units and a demand rate
of 100 units per hour. Also assume it takes 120 minutes for a container to circulate.
a) How many containers are required to operate this system?
b) How much maximum inventory can accumulate?
c) How many Kanban cards are required?
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

12.9 JIT IMPLEMENTATION IN INDUSTRIES

1) Kanban System at an American Toyota Motor Facility

AIOU
The plant fabricated, assembled and painted four models of truck beds for Toyota light trucks,
with an annual capacity of 150,000 units a year. The JIT implementation began in assembly area
an then progressed through manufacturing functions to a selected number of suppliers, over a
two year period. The system used material requirement planning (MRP) for overall production

233
 
 

planning and Kanban for shop floor control.

The salient featurer of JIT application are:
Company Toyota Motor Facility
Product category Truck beds
Productivity improvement
Setup time reduction
Inventory reduction
Copyrights Labour -20%
Significant
Raw material - 21 % WIP - 45%
Quality improvement Significant
Space saving Significant
Others Warehousing cost reduced by 30%, Reduction in
presses 30%, Production volume up by 40%, 30%
reduction in-forklifts.

2) JIT as the basis for Revitalisation at Harley Davidson Motor Co.

Harley-Davidson the dominant US producer of motorcycles, faced serious problems throughout
the seventies due to high inventory, scrap, rework, production bottlenecks, etc. Harley-Davidson
adopted JIT as a revitalisation strategy. The company called its JIT programme -"MAN" i.e.,
Material as Needed. The programme encompassed reduction of setups inventories and lead time;
flow processing and schedule stabilisation: use of preventive maintenance, statistical process
control and quality circles; employee involvement and vendor programmes. The salient features
of JIT application are:
Company Harley Davidson
Product category: Motorcycles
Productivity improvement: Vehicles per employee up-32% Revenue per employee up-
100%
Setup time reduction: Overall setup reduction by 75% (many operations-combined)

Inventory reduction: WIP and RM reduction by 50%

Quality improvement: 35% decrease in warranty 50% decrease in scrap rework,
Manufacturing errors down by two-third defects per unit down
by 70%
Space savings: 35% reduction in warehouse 15% reduction in manufacturing

Lead times: All Suppliers within 200 miles weekly or daily delivery

3) AIOU
JIT in an Auto Components Company
A UK based Auto components company adopted JIT as a strategy to contend with the Japanese
competition. The company employed 600 people and fabricated automotive components. The
change to JIT had the following objectives-reduction in through put time from average 10 days
234
 
 

to under 1 working day, reduction of WIP to minimum necessary, doubling of sales per
employee, and reduction in scrap rates and rework. The salient features of JIT application are:
Company Tokai Rika
Product Category Automotive parts
Productivity improvement (Indexed) 100 to 145, equivalent to 317 people.
Set up Time Reduction
Inventory Reduction
Copyrightsthe cast: 40 to 2 min. 90 min. to 20 sec.
(Indexed) 100 in 1975 to 35 in 1976. 17 days in 1975 to 6 days in
1976.
Quality Improvement Significant
Space Savings Significant, elimination of warehouses.
Lead Time Reduction Significant

4) JIT in Automobile Company

The salient features of JIT application are:
Company Toyo Kagyo
Product Category Automobiles.
Productivity Improvement 70 to 80% gain from elimination of waste.
Set up Time Reduction Ring gear cutter.30 min. in 1976 to 13 min. in 1980
Inventory Reduction (Indexed) 100 in 1973 to 31 in 1981.
Quality Improvement Significant, Machine down time reduced to 50 to 60
hours/month. %
Space Savings Significant
Lead Time Reduction Significant

JIT in Electronics, Computers, Telecommunication and Instrumentation

1) JIT at Hewlett Packard
The computer systems division of Hewlett packard Inc., USA had experienced a number of
problems in manufacturing. The standard lead times for a lot of single in-house made PCB was
as much as 11-15 workdays and 10-45 days for subcontracted assemblies. The schedules in the
Random Access Memory circuit testing were not linked with MRP, causing late deliveries. JIT
systems were introduced to achieve, small lot, continuous flow manufacturing. Kanban control
areas were developed for material flow regulation, at various segments of manufacturing flow.
The salient feratures of JIT application are:
Company
Product Category
AIOU
Hewlett Packard
Computers and Test Systems
Productivity Improvement 87 to 39 standard hours

235
 
 

Set up Time Reduction 30% to 45% reduction in manual setup

Inventory Reduction Significant ($2 million inventory eliminated)
Quality Improvement First to improvement JIT/TQC.
Space Savings PC assembly: 8500 to 5750 sq. ft.
Lead Times
Copyrights PC assembly: 15 to 1.5 days

JIT as a basic for the world claw manufacturing (WCM) at Calcomp

JIT strategy was used as a basic to achieve World Class Manufacturing (WCM) at Display
Products Division of Calcomp Inc a Lockhead company. The division produced computer
graphics in a number of models and options. To began with, a simple keyboard unit. Streamlined
layout, mixed model progressive value adding assembly concept, use of Kanban squares for
control of the production flow and worker centered inspection were features of the successful
pilot implementation. Similar methods were then implemented in a major final assembly area
containing hundreds of parts. The salient features of JIT application are:
Company WCM.
Product Category Computer graphics.
Productivity Improvement 41% increase in yields.
Setup Time Reduction Decrease in mfg. cycle time from 12 weeks to 4 weeks.
Inventory Reduction 60% decrease in average inventory.
Quality Improvement 67% decrease in annual scrap and rework.
Space Savings 75000 sq. ft. reduction in floor space.
Lead Times 53% improvement in supplier on time delivery.

3) JIT at Sundstrand Data Control

Sundstrand Data Control’s is Instrument System Division began its JIT programme with its Q-
Flex Accelerometer, a high volume miked- model production line. It implemented JIT on a
phased basis, over a period of two years. To do this, it formed a steering committee of top level
managers and an operating committee of personel from relevant areas. The other features of JIT
included: i) Training workshop for all employees, ii) Setting up Key bench mark for WIP, cycle
time and quality levels, iii) Use of balanced assembly line, iv) Movement of stockroom close to
the line, v) Pull system of production, and vi) Worker centered quality control. The salient
features of JIT application are:
Company SUNDRAND
Product Category Q-flex accelerometer
Productivity Improvement
Setup Time Reduction
AIOU
20% improvement in total capacity.
Cycle time reduced to 90% per unit.
Inventory Reduction Reduction by 80%

236
 
 

Quality Improvement Up by 50%; Rework reduced by 66% Scrap costs cut by

60%
Space Savings Significant
Lead Times 100 days to 2.5 days

4)
Copyrights
JIT at Apple Computers
The salient features of JIT application are
Company Apple Computers
Product Category: Micro computers
Productivity Improvement: i) Inspection labour from 25 to 9.
ii) Assembly labour from 22 to 4
Setup Time Reduction: Estimate to 30% (lines mostly dedicated, started JIT)
Inventory Reduction: Estimate of 90% in WIP and raw material.
Quality Improvement: Scrap and rework reduced by 10%, incoming material quality up
by 20%
Space Savings: No need for warehouse; material delivered to point of use
Lead Times: All computers less than two days. Daily schedule.

JIT in Process Type Industry

1) JIT in Hand Blown Glass Manufacture
An application of JIT in a hand blown glass manufacturing plant has been reported by Byrd and
Carter. The JIT production system was introduced in 1986. The objective was to reduce the
inventories. The overall impact of the project was:
— Over $ 750,000 in cost saving manufacturing
— Reduction in manufacturing cycle time of the glass from three weeks to 4 hours.
— Reduction in material flow through the plant by 81.
— Release of over 1000 sq. ft. of floor space for better use.
— Reduction in material handling by 7 moves in one product line and 4 moves in another
product line.
2) JIT Manufacturing at Avon Cosmetics
Avon Product Inc. is amongst the biggest producer of cosmetics in the world. It is a direct selling
enterprise and its high quality products include cosmetics and fashion jewellery. Avon adopted

AIOU
JIT in 1982. A trend prognosis system was setup for improving accuracy of the sales forecasts.
JIT oriented material disposition and purchasing were brought about using long term contracts;
frequent deliveries, approved vendors and vendor rating schemes. Introduction of Quality and
Productivity Improvement Programme (QPIP)worldwide resulted in many quantity and

237
 
 

productivity improvement system. Results obtained over a 5 years period (1982-87) were as
follows:
— Reduction in inventory of finished goods by 25%, Components (53%), raw ingredients
(52%).
— Reduction in warehousing and handling cost (25%), reduction in average run size (18%)

—
3)
Copyrights
and improvement in readiness to deliver (5.7).
Quality improvement in materials (6.2%), production (1.3%).
JIT in Food Processing Industry
In the food industry, the adoption of JIT principles has been largely due to the increasing
demands from key customers for a better package of services and product options. The key
challenges facing food industry are: improving order performance, improving responsiveness on
pack deliveries, enhanced product quality and freshness, and providing greater pack option
variety.
A limited shelf life food-producer in UK in response to many of these pressures, responded
effectively to the challenge through several innovations to enable JIT operation. The application
produced the following results:
— Initial reduction in clean down time (45%)
— Reduction in setup time (65%)
— Reduction in process losses related to changeovers (60%)
— Reduction in type outer cartons for packaging from 20 to 2, and
— Increasing the weekly deliveries to key retailers to thrice a week.
Other non-quantified benefits were: enhanced customer service, elimination of out of code
returns, reduction in capital charges, lower material handling and quality costs, much reduced
chill store requirement and simplified planning and logistic systems.
4) JIT at Asia Securities Printing
The new production system application at Asia Securities Printing (ASP) is an illustration of JIT
in the printing and publishing industry, ASP adopted JIT, on becoming a number of NPSRA of
Japan. It specialised in printing securities-a high value added product. The important
requirements in this industry are:
i) Short lead time from order -receipt to delivery,
ii) Error free printing, and
iii) Flexibility to print different types of documents.
aced problems like large paper inventory and a number of non-value adding operations like
stacking and unstacking etc., prior to JIT The switch to JIT had the following results:
—
—
daily delivery of paper, AIOU
debottlenecking the printing process to reduce lead time, and
— use of stockless based on production smoothing and staggered deliveries to customer, as

238
 
 

needed, to reduce customer inventory.

JIT enabled ASP to develop a full service business in printing all kinds of documents, and
expand its customer base by 50-60 customers per year. Its sales were targeted to rise at least 25%
per year. Moreover, it helped the customer to reduce his inventory.
JIT in Seasonal Demand Industry
1)
Copyrights
The World Company
The fashion garment industry is example of a high seasonal industry. Fashion garments are
highly style and fashion sensitive and get out-dated quickly. Thus, discount sales and financial
losses are not uncommon. World company is a leading producer of fashion garments in Japan. It
is a member of NPSRA. Prior to JIT, world used mass production system, which made it suffer
from over-production, and excessive inventory.
As part of its JIT strategy, world dispensed with the mass production machinery. It adopted
"slow speed" machines to achieve balanced, synchronised garment production. 'Multitask'
production was adopted, where in each worker operated not one but several machines which
performed different tasks, in a well defined cycle. With transition to JIT, world reduced the lead
time from one month to two hours, enabling it to produce to orders, eliminate inventories and
discounting.
2) Use of Kanban in a Job Environment
A manufacturer in Canda operated a job shop to manufacture to orders, high quality outdoor
clothing used for camping, hunting, canoeing, skiing and so on. Both summer and winter clothes
were produced. The manufacturer faced problems resulting in out of phase production.
Traditionally the orders were grouped in to a production run that included all the sizes and
colours required. This resulted in high WIP and long lead times.
After implementing KANBAN and JIT, following improvements were observerved: improved
quality due to small lots, less WIP, lower congestion in packing and shipping areas, increase in
throughput capacity, quicker availability of finished products, and release of 40-50% of space.
Other Manufacturing Industries
1) JIT Implementation in Lucas Industries, UK
JIT implementation was brought about in 18 months. The steps involved:
— Training for all levels of management
— Factory redesign on a cellular basis
— Job redesign and reclassification to suit cellular organisation
— Reduction in the machine and process change-over times
— Use of Kanban system.

AIOU
Introduction of JIT resulted in reduction of lead time from 14 days to 1 day. Productivity
increased by 25%. The final assembly operated with only 15 hrs of stock. Stock levels were
reduced by 7.5 million pounds. The staff strength was reduced by 300. Business turnover ratio
increased from 7 to 15 times.

239
 
 

2) JIT at Kawasaki Electricals

JIT was implemented at Kawasaki Electric of Japan, a member of NPSRA, as a way to over
come the near bankruptcy condition of the company in 1982. Kawasaki operated in the electrical
switch board industry. Kawasaki began JIT with a focus on orderlines and organisation leading
to a plant clean up campaign. The benefits derived were as
—
—
3)
Copyrights
Space saving of 53,000 sq. ft.
Overall workforce decreased by 157 over a four a four year period.
JIT at Misawa Homes
A unique example of application of JIT in prefabricated housing industry is provided by Miswa
Homes of Japan. Miswa was the leader in this industry in Japan. It was however facing
difficulties due to poor sales and profit, on account of an industry recession. Miswa's inventory
of unsold homes was mounting. It then adopted JIT and developed fccven new design for the
homes to match seven stages of a person's life cycle. Thus there were 49 combinations of design
and life cycle stages. The strategy called for high diversified, small volume production, often
customised, but at no additional costs. The results observed were:
— Capital investment per year reduced from $4 million/year to $ 1.2 million/year.
— Manufacturing lead time decreased from 2 months to 1 day.
— Inventory went down to $ 2.8 million.
— Productivity went up 2-3 times.
— Vast amount of space released.
JIT in Service and Administration Operations
JIT philosophy has already demonstrated its usefulness in service and administratiove operations.
The various case applications are:
1) JIT at Skylark Restaurant Chain
Prior to JIT Skylark owned a chain of 300 restaurant in Japan. To service these, it prepared food,
using mass production equipment, in its centralised kitchen facility. This, coupled with the need
to cater a large variety resulted in large quantities of each variety. A large refrigeration facility
was used to preserve the prepared foods. These practices led to large amount of wastage,
enormous cost and very low capital turnover.
Transition to JIT was achieved by dismantling much of the mass production equipment in favour
of the single item production methods. Kanban method was used in production and in production
and in keeping the restaurant clean. The switch to JIT produced impressive results. Free space
was released. The inventory was cut to half in just 3 months of JIT introduction. JIT enabled
Skylark to switch to custom production in a highly cost effective manner.
2) JIT at a Customer Service Centre
AIOU
Northern Telecom's customer service centre repaired printed circuit packs (PCPS) which become
inoperable in digital switches. The labour intensive operation had four major steps: PCP
modification, testing and trouble shooting, repair and shipping. The centre faced problems which
caused quality errors, high WIP, long repair cycle time of one week, and an 85% customer

240
 
 

service level. In 1987, JIT was started at the centre. Following a training programme in JIT, work
cells were implemented, each of which was full responsible for the complete repair of a specified
group of PCPS. WIP and work flow were controlled by the use of Kanbans and remarkable:
100% customer service level, 89% improvement in quality, 75% reduction in WIP and two day
repair cycle time for PCP.
3) JIT in a Mail Order Operation

Copyrights
A company called Semantodontics in USA adopted JIT in a mail order operation. It sold
nationwide to dentists by mail order catalogue and had a major production line called
personalised printed products. The large number of customer complaints on this products. The
large number of customer complaints on this product mainly arose on account of information
delays on the amount charged and order delivery delays. These were caused by the customer
waiting times of three or more weeks and a monthly charging of customers.
A JIT like operation was achieved by the use of three order batches per day, elimination of new
customer set-up processes, and faster pace of working in the order verification area. As a result,
the order processing lead time went down from 4 days to 4 hours. The calls went down sharply.

12.10 SUMMARY
JIT is a new approach to repetitive manufacturing, whereas MRP is suited to job shop or batch
production. We have seen how parts should be produced just-in-time rather than Just-in-Case
they are needed. This is accomplished by a simple visual system of production control and
dedication toward constant reduction in inventories. The objective of JIT is to improve return on
investment. This is done by increasing revenues, reducing costs, and reducing the investment
required. It is based on philosophy of eliminating the waste and utilising the full capability of
each worker. This system was originally developed in Japan and gradually picking up in Indian
industries. In Kanban system a fixed number of containers are provided for each plant required.
When these containers full, no more parts are produced, thus limiting the inventory of each part.
Improvement activities are encouraged by workers and management to reduce the number of
containers, size of containers and inventory. Implementation of JIT systems requires a staged
progression of activities. Top management must provide leadership and support.

12.11 SELF-ASSESSMENT EXERCISES

1) Why did the JIT approach evolve in Japan and not in western countries?
2) How can lot sizes and inventories be reduced in a JIT system? Mention specific
approach.
3) Why has repetitive manufacturing tended to use long runs and large lot sizes in the past?
4) Describe vendor relations both before and after installation of a JIT approach.
5) What are the effects of JIT system on workers and manager?
6) AIOU
Suppose a work center has a setup plus run time of 30 minutes to make 50 parts. Also
assume that it takes 10 minutes to move a standard container of 50 parts. Also assume
that it takes 10 minutes to move a standard container of 50 parts to the next work center,
and the demand rate is one part per minute through the day.

241
 
 

a) Schedule this situation by drawing a picture of when work center. A should be

producing and idle and when movements of containers take place from A to B.
b) How many standard containers are needed for this part to calculate the picture in
part a.
c) Use the formula n = DT/ C to calculate the number of container.
7)

8)
Copyrights
Why is it important to study Japanese manufacturing in a production and operation and
operations management course?
The process of making a certain component involves seven work stations. The cycle time
for all of the work stations is nine minutes. The current lot size is 25 units. What would
be the effect on WIP levels and process flow-through times if the lot size were reduced
to:
a) 19 units
b) 12 units
c) 5 units
d) 1 units
9) What are the most critical things needed to implement JIT? Compare these things to
implementation of an JIT system.
10) Will the EOQ formula work in JIT enviroment?
11) The process for making alarm clocks involves six work stations with cycle times of four
minutes per item for every work station. The single card kanban system uses 10 units in
each bin. The quality circle group has found a method to eliminate one stage of
production, reducing the number of work stations to five. What are the reductions in
work-in-process inventories and in flow-through time?
12) Discuss how JIT reduces costs (material, labor, overhead)- not including inventory Be
specific.
13) For a particular operation, the setup time is 10 minutes at a cost of $10 in lost machine
time and labor. The run time is 50 minutes to produce a standard lot of 400 parts. Assume
a holding cost of $2 per part per month a production rate of 20000 parts per month. It
takes 3 hours to circulate a container of parts.
a) Calculate the EOQ for this part.
b) How many standard containers are needed?
c) If the setup time can be cut to 1 minute, recalculate the lot size and number of
containers needed.

12.12 FURTHER READINGS

1)
AIOU
Buffa, E. S; Modern Production/Operations Management, 7/e, Wiley Eastern Ltd.
2) Dilwort, James B; Operations Management, 2/e, The McGraw Hill Companies, Inc.
3) Gaither Norman; Production & Operations Management, 6/e, The Dryden Press, A
242
 
 

Harcourt Brace College Publisher.

4) Krajewski/Ritzman, Operations Management-Strategy & Analysis, 4/e, Addison-Wesley
Publishing Co.
5) Hutchins, D. Just-in-Time
6) Korgaonkar, M.G., Just-in-Time Manufacturing
7)
8)
Copyrights
Ohno, T and Mito, S., Just-in-Time for Today and Tomorrow
Hall, Robert. W, Attaining Manufacturing Excellence
9) Hirano., JITFactory Revolution
10) Ansari, A., andModaress, B., Just-in-Time Purchasing

AIOU
243
 
 

Copyrights

AIOU
244
 
 

UNIT13 SCHEDULING & SEQUENCING

Objectives
Perusal of this unit will enhance student’s:
• Understanding of the importance of scheduling and sequencing in operations

•
management
Copyrights
Appreciation of the role played by effective scheduling and sequencing in reducing
incidence of changes and cutting down manufacturing cycle time
• Learning of the criticality of correct scheduling and sequencing in improving response
and imparting flexibility to cope with changing needs and wants of customers
• Acquiring working knowledge of various techniques for scheduling and sequencing of
mass, batch and job shop types of production systems
• Understanding of the role of computers and information technology in obtaining optimal
solutions to problems of scheduling and sequencing in very short time.
Structure
13.1 Introduction
13.2 Situations Requiring Scheduling
13.3 Classifying Production Systems
13.4 Scheduling Mass Production Systems
13.5 Scheduling Batch Production Systems
13.6 Scheduling Jobshop Production Systems
13.7 General Principles of Scheduling
13.8 Summary
13.9 Self-Assessment Exercises
13.10 Further Readings

13.1 INTRODUCTION
Scheduling is the preparation of timetable of activities or action plan for a specific period. Since
it has to be drawn up before the commencement of that period - a day, a week, a fortnight or a
month, it incorporates projected future activities and events of a firm.
It is not unusual for companies to prepare a timetable of labour requirements to meet target
production levels within a specific period; it would be of little value if materials required for
performing those operations are not available. Similarly, a good schedule of activities cannot be
prepared until we have frozen the method of manufacturing (sequence of manufacturing
process), we ensure that machines are available and in running condition, all production
accessories like jigs, fixtures, tools, dies, punches, gauges have not only been designed, but also

AIOU
fabricated and are ready for use, we have drawn up all productions schedules and sequences
including route cards, progress sheets etc. and we have reliable source of electricity supply or
alternatively, standby arrangement for power generation and supply.
Scheduling of industrial activities or tasks is therefore, a very complex operation as it involves
simultaneous consideration of all the above factors besides the demands of customers and
245
 
 

commitments made to them by the sales personnel.

13.2 SITUATIONS REQUIRING SCHEDULING

Scheduling problems are not only common when programming an individual machine or
equipment but also for programming the entire manufacturing plant. Obviously, the purpose of

Copyrights
such scheduling would be to maximize the number of on-time deliveries to customers.
There are a large variety of situations where scheduling can be very useful. For example;
a) Running a large number of programmes of a computer or a computer terminal or
networked personal computer (PC) in a specified time period.
b) Processing of applications for loan or credit facilities at a commercial bank the objectives
of scheduling may vary from one bank to another.
c) Scheduling of pathological tests on a patient in the hospital so that overall time for
obtaining the results is minimum.
d) Scheduling of all activities prior to the landing of aircrafts at an airstrip to ensure safety
to passengers and aeroplanes.
Arbitrary scheduling will invariably lead to solutions that are not compatible mid optimal for
meeting company's objectives.

13.3 CLASSIFYING PRODUCTION SYSTEMS

Production systems present a very wide spectrum of patterns of working for the conversion of
input resources like men, machines, methods, measurement, message (information and
communication), motive power (energy), money mid management into output in the form of
goods and services which are valued by customers. Production systems can be classified into
three categories as below:
a) Mass Production
When goods and services are produced by performing same activities in specified sequence
repetitively, we call it a How shop or mass production system. It uses special purpose machinery
designed and built to perform specific individual operations in that company. Henry Ford, the
guru of mass production, introduced "assembly line concept in 1913 for assembling Fords Cars
in large quantities. Henry Ford opined that any task, however gigantic and daunting, when split
into small elements, becomes easy to learn and perform. The entire job was divided into small
elements which were grouped together to form stages of manufacture on a flow line basis. The
material between the stages may be moved manually (as in the case of assembly benches for
manufacturing electric fans etc) or on conveyors moving at predetermined speed (for instance,
for assembling TV sets or Maruti Cars).
b) Batch Production

AIOU
When a range of products have to be manufactured in quantities which are reasonable but not
large enough to go in for dedicated production line (or assembly line), we go in for production in
batches or lots which are convenient and acceptable without adding to the cost of manufacturing.
In batch production systems, general purpose machines and equipment are used, and these are
246
 
 

grouped together functionwise. All turning machines are located in one area and the department
may be referred to as "turning shop". Similarly, the manufacturing plant may have drilling,
grinding, milling, sub assembly, assembly, painting and testing shops. In such situations,
material is moved in batches of say 50, 100, 1000 etc from one shop to another until it is packed
and despatched to its destinations. Row of material within the firm tends to be complex and
distances travelled are longer as they are circuitous.
c) Job Shop Production
Copyrights
In jobbing production system, variety of products is larger than the batch production and
quantities to be produced at a time are significantly lower. In jobbing industry, it is very difficult
to predict the type of work and its requirement in terms of demand. Besides, each order or job
may be quite different in terms of operations, dieir sequence and time taken at a workstation.
A job shop would also use general-purpose machines, grouped together into departments only
when the total volume of business is large. Job shops are usually small and suffer from lack of
support services and functions. Uneven loads at different machines or departments is quite
common in practice.

13.4 SCHEDULING MASS PRODUCTION SYSTEMS

Mass production systems are appropriate when volume of demand is large and product variety
small. It can take the form of continuous production lines working round the clock, seven days a
week as in many chemical and processing plants or it can be an intermittent assembly line like
assembly of cars on two shift basis.
It would be ideal production system if we have to produce large volumes of one product (without
any changes of design) continuously. For example, Maruti Udyog Ltd has several assembly lines
for assembling different models of cars. However, owing to large volumes, one assembly line is
totally dedicated to Maruti 800 model sold domestically. Currently, the volume of demand is so
high that additional quantities are manufactured on the second assembly line which caters for the
'tatkal and “export model”. Assembly line technology is used very widely for assembling TV
sets, electrical appliances, computers, electronic goods, toys etc.
Assembly lines are typically as below:
Let us assume that the work content of each of the eight stages of assembly of an appliance is as
below:
Stages Work Contact (minutes) Idle Time (minutes)
SI .4.90 0.10
S2 4.90 0.10
S3 4.80 0.20
S4 5.00 -
S5 4.90 0.10
S6

S7
AIOU
4.90

4.90
0.10

0.10
S8 4.70 0.30
TOTAL 39.00 1.00

247
 
 

If each person is given one assembly independently, he will be able to assemble the following
number of appliances:
Available time = 8x60 minutes
(8 hours of work) = 480 minutes
Personal time = 30 minutes
Working time
Copyrights
Total no. of appliances that will
= 450 minutes
450 = 11.54 say 11
39
be assembled in a day by one person =

if we engage. 8 person in the assembly of these electrical appliances, we shall get a daily
production of 8 x 11 = 88 appliances.
a) However, if we can go in for assembly line splitting the entire manufacturing line of 39
minutes into eight stages as shown above, the throughput rate of the system will be
constrained by the slowest stage viz S4 which is 5 minutes.
Production of appliances per day = 450/5
= 90
This approach is extremely important for high volume mass production systems and is known as
Line Balancing.
b) If through a re-arrangement of some elements of task either by better grouping of by
making slight changes in tooling etc, we are able to modify the work content of eight
stages as below:
Stages Work Content (minutes) Idle Time (minutes)
S1 4.88 0
S2 4.88 0
S3 4.86 0.02
S4 4.86 0.02
S5 4.88 -
S6 4.88 -
S7 4.88 -
S8 4.88 -
39.0 0.04

production of appliances per day AIOU

In this revised line balancing of tasks at different stages,
= 450/4.88
= 92.2
say 92
248
 
 

c) Usually it is more rewarding to change the design of the appliance or layout of

components within the same appliance so that there is a decrease in the total work content
of the job in such a way that the bottleneck stage (S-4) stands to gain the most.
Stages Work Content (minutes) Idle Time (minutes)
S1 4.75 0.03
S2
S3
Copyrights 4.76
4.78
0.02

S4 4.70 0.08
S5 4.74 0.06
S6 4.75 .0.05
S7 4.76 0.04
S8 4.76 0.04
38.00 0.32
In this revised line balancing,
production of appliances per day = 450/4.78
= 94.14
say 94
It is observed that with small changes in the work content of stages of production on the
assembly line, we are able to increase the output rate. Parameter of line efficiency is often used
for measuring the effectiveness of line balancing.
It is the ratio of the total stage time and total cycle time:

Activity A
Maruti 800 is assembled on a conveyor belt with 30 stages, roughly well balanced in terms of
cycle time for each stage. The slowest stage has a cycle time, of 1.5 minutes and the cycle time at
other stages is no more than 1.4 minutes. Each stage is manned by 3 to 5 workers depending

AIOU
upon the total work content at that stage. What would be the-increase in production per shift if
the work content of the slowest stage is brought lower than 1.4 minutes.
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
249
 
 

13.5 SCHEDULING BATCH PRODUCTION SYSTEMS

Batch production systems are very common as in a large number of industries. Quite a few
things are required to be manufactured in quantities which are not large enough for assembly line
technology. In these situations, similar machine and processes are grouped together into
specialist shops and departments and materials are moved from one to another in line with the

a) Copyrights
requirement of process sequence. Various issues that often crop up in batch production are:
Determining optimum size of batch / lot size
When production of annual requirements of a product is split into batches so as to meet the
demands of market without building high levels of inventory, we have to determine the optimum
batch or lot size for production. The various costs involved are cost of setting up or changeover
and the cost of stockholding or carrying inventory. Let us assume:
A = annual demand in quantity or units
C = change even or setting up costs
N = number of production batches per year
R = economic batch size
U = unit cost of production
i = cost of carrying inventory in fractions
Cost of changeover per year = xc

Differentiating w.r.t. Q
dTC − AC ui
= 2 + +0
dQ Q 2
Differentiating second time w.r.t. Q
2 AC
= + 0 which is positive
Q3
Consequently, value of Q obtained when first derivative will be equal to zero, will correspond to
overall cost minimization i.e.

AIOU
250
 
 

Copyrights
Often, a batch size 'Q' is made at a machine and then transferred in one lot to the next machine in
sequence.

Activity B
AIOU
For an item of product, annual demand is 26,000 units and can be produced at the rate of 1000
pieces per week, at a cost of 1000 pieces per week, at a cost of Rs 26/- per unit. If the cost of
changeover is Rs 50/- per occasion and cost of carrying inventory is 20%, what is the economic
size of production batch?

251
 
 

………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
b) Line of Balance (LOB) for Production Control
This technique is very useful when production is organized in batches. This technique is used to

Copyrights
compare progress on each operation with the progress that would be required to meet the
delivery requirements to cope with the market demand. It consists of the following steps.
i) Cumulative delivery schedule
This is the starting point. The delivery commitment is drawn up in the form of a graph on time-
scale and is positioned on the left hand top half of the paper.
ii) Relationship Diagram
This is drawn below the cummulative delivery schedule. It represents the entire process of
manufacturing starting from the end point backwards. All the major transition points, called the
control points are identified in the diagram along with the time lag from the end point.
iii) Line of Balance Chart
This is design on the right hand top half along side the cumulative delivery schedule and xo-
ordiriate (y axis) is same as in the delivery graph. Along the X-axis, all the itrol points
identifiedin the Relationship Diagram, corresponding to Control points, bar diagram is drawn for
different points on time.
Illustration
An order has been placed on a supplier of vital defence equipment and following delivery dates
have been agreed:-
3rd Week 10 Units
th
4 Week 20 Units
th
5 Week 20 Units
th
6 Week 20 Units
th
7 Week 20 Units
8th Week 20 Units
9th Week 20 Units
10th Week 20 Units
11th Week 20 Units
12th Week 20 Units
13th Week
Total AIOU
10
200
Units
Units.
The details of manufacturing process have been examined and agreed with the supplier. It has
been decided to visit the supplier at the end of the 6th, 9th and 12th week to ensure against delays

252
 
 

so that eventual delivery commitments are complied with.

The technique of LOB can be illustrated graphically as shown in figure on the next page
i) Drawing the Cumulative delivery schedule
This graph, where time scale is on X-axis and cumulative quantities of output on the Y-axis, is
drawn on the left hand top quadrant of a piece of paper. The origin of the time scale may

Copyrights
coincide with the date of placement of purchase order or any point later, butrmust cover the
entire period of progressive completion and/or despatch. We must be very clear of the cut off
point, whether it is completion or despatch.
ii) Drawing of Relationship diagram.
This is similar to a network - in fact, historically, it was the predecessor of networks as it was
discovered in 1941. However, this is drawn backwards starting with the end point which must
coincide with the cut-off incorporated in the cummulative delivery schedule drawn above. The
entire process of manufacture is blown into sub assemblies, components which may be cast,
forged, machined, bought out etc. and extended to the procurement of raw materials and for
preparation of drawings as applicable.

AIOU
253
 
 

Copyrights

The checkpoints in these networks are called control points and they are so chosen as to facilitate
easy measurement and control. Usually they coincide with the transition points between
departments or functions and are often points of recording and reporting outputs.
It is perhaps easy to understand that upstream control points would be ahead of the end control
point in terms of output at any given time, it is preferable to draw these control points by
adopting a time scale for the processing time lags between them. Since the time scale is from
right to left (reverse of the normal one), these have been shown on a negative scale.
iii) Drawing the Line of Balance Chart
Once the above two data have been recorded as above, we are ready to draw the LOB chart for
any date of interest. The procedure is simple as it is iterative:-
1) On the date, we want to monitor the progress of work on the job, we plot it on the
cumulative delivery schedule. For example, if we have to draw the LOB chart, on the 6th
week after the issue of the purchase order, we trace it on the 6th week and trace the point.

AIOU
on the cumulative curve to read the total output on the end-control point on the date point
and plot it on the corresponding bar diagram on the right hand top half of the paper, (e.g.
Control point VIII)
2) For the other control points, the methodology is fairly simple. For example, for control
point VII, we plot it on the cumulative delivery schedule one week to the right of the
254
 
 

date, because total quantity of output cumulatively has to be more than the quantity at the
end control point VIII and higher quantity in the cumulative delivery schedule is obtained
only when it is plotted on the right-exact point is determined by the processing the time
lag of the manufacturing process. By following this procedure, target quantities for each
of the control points identified in the relationship diagram can be determined,
3) There is one exception when, for any control point, the plot on the right of the date for

Copyrights
which LOB chart is being drawn, goes beyond the cumulative delivery schedule, it has to
be limited to the end point of the delivery schedule-cummulative quantities for any
control point cannot exceed the total quantity on order.
4) The approach is to de-emphasize the focus only on the end point of completion while
scheduling the jobs in production-for achieving completion of the job, we need to control
other important transition points in the manufacturing process -usually coinciding with
the inter department transfer point. These control points are so chosen as to permit easy
counting and measuring or a routine for reporting.
Activity C
Prepare a schedule for different departments if we have to complete a batch of 1,000 pieces in
ten weeks as below:-
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
Week No Quantity of Finished Product (as packed)

1 60
2 80
3 100
4 120
5 120
6 120
7 120
8 120
9 120
10 40
Total 1000

AIOU
The process of manufacturing, starting from the end point of completion, is as below:-
The products have to be packed before they can despatch-10 to a box. The assembly must be
completed one week before so that final testing and packing can be done. The bought out
components should reach the factory two weeks before the assembly. In-house machined
components must be started four weeks before the assembly which takes one week. Similarly
255
 
 

sheet metal components must start three weeks before the assembly. Raw materials for the same
should be received in the factory two weeks before the start of sheet metal processing can
commence. Final assembly also requires a subassembly done in another department and this
subassembly also takes one week to complete and must be available to the final assembly
department Justin time. The sub assembly being a specialist item, contains a bought out unit
which must be available at least two weeks before the sub assembly starts. The housing unit is

Copyrights
manufactured in house and must be ready in time for starting the sub assembly, but the process
of making the housing takes two weeks.
(c) Kanban System of Production Scheduling
Japan has made rapid strides in developing and perfecting imaginative and comprehensive any
production systems - the most important of which is revolutionary in concept and these are
known as Just-in-Time (JIT) systems which now comprises of a cluster of techniques. One such
technique is called the Kanban system.
Literal meaning of Kanban is visual record, hence it is also referred to as Card system. It can be
either a two-card system as introduced and practiced in Toyota Motor Company's Takahama
plant or it can be the more popular one-card system.
Material flow and work-in-progress is regulated in production shops through these Kanbans
(cards). A typical process is illustrated below:-

Work station (WS-2) is the customer; he will decide when he needs the next lot of material. For
this, he will transfer the Kanban to WS-1 only when its incoming trolley is nearly empty - the
worker at WS-1 cannot transfer the material until he receives the Kanban from his customer
stage. By controlling the no. of Kanbans in the production process, work-in-progress is reduced
and materials arrive into the next workstation just-in time.
In two-kanban system, two types of cards are used - one for transportation between the
workstations and is known as conveyance Kanban and the second, for production at the
workstation itself and is called- the production kanban.
This process of sequencing production is different from the traditional one - it preaches that we
should manufacture (or buy) only that much as required (or demanded) by the next stage. This
principle is described as Demand -Pull system in contrast with the traditional principle of
pushing production.
It focuses on the ideal principle, as is common in assembly lines when one component is worked
AIOU
at a time and passed onto the next stage just-in-time for the operator to pick up and do his/her
part of the job on a continued basis.
Kanban system links up the supplying workstation with the receiving workstation and it leads to
a number of advantages as below:-

256
 
 

i) It reduces/eliminates transportation and handling considerably.

ii) It eliminates delays in a batch size of production by adopting a one-piece flow or minimal
lot size flow between workstations
iii) It leads to reduction in manufacturing cycle times and set-up times.
iv) It facilitates producing what is required and not what may be required.
v)
Copyrights
It eliminates 'production-to-stock' approach of Demand - Push system & encourages high
degree of responsiveness among individual operators for meeting variance in demands at
different workstation.
vi) Control of work-in-progress inventory is achieved not by magnitude of demand & supply
but by improving individual's capacity to respond to demand fluctuations that are
generally unavoidable.
vii) It leads to high degree of employee involvement.

13.6 SCHEDULING JOB PRODUCTION SYSTEMS

Unlike in batch production, demand is not predictable in jobshop work, where each job is unique
and so is its sequence of processing time for each of the work stage. Jobshops are therefore
charactised by a number of general purpose machines and is typefied by a large number of jobs
A job moves from one machine to another workstation has to wait there (as queue) before it is
taken up. Conversely, a machine or workstations may complete all pending jobs and is idle as it
is waiting for the next job (which may not be in the pipeline!)
Optimal sequencing procedures has been developed for various situations as below:
— “n” jobs and one machine
— “n” jobs and two machines
— Two jobs and “m” machines
However, there are no optimal rules for jobshops with more than two jobs and to machines,
which, in real life, is the most likely situation.
Traditionally, managers have been guided by commonsense principles of reducing congestion in-
the shop, maximising machine utilization etc. Several principles or rules have been developed to
decide the next job to be selected from amongst the various jobs waiting for loading on the
machine. A few of these rules are as below
a) Earliest Due Date First (EDO)
Herein the jobs due for completion earliest is given the first priority for scheduling on the
machine.
b) First In Shop First Served (FISFS)

AIOU
If this rule is applied, the job that arrived in the shop first is chosen for scheduling on the
machine
c) First Come First Served (FCFS)
Under this rule, first priority for scheduling is given to the job that arrived at the machine
257
 
 

first.
d) Least Slack Time (LST)
If this principle is followed, first priority is assigned to the job that has the least slack
time available. Slack time is the free time available after subtracting the time required by
the job to be processed through remaining work stages. For example, if we are 11 days

Copyrights
away from the due date of a job and the time taken for the remaining three stages is
4+2+1 respectively, then the slack time is four being the difference between the due date
and the time required to complete the remaining work on the job.
e) Shortest Processing Time (SIT)
Herein, first priority is accorded to the job dial have the shortest processing time on the
machine. This is often followed even by the doctors whose waiting rooms gel congested
with patients waiting to consult.
f) Least Work Remaining (LWR)
Highest priority, under the rule, is given to the job with the least amount of processing
time remaining to complete the job. The rules, also called dispatching rules can be
extended. However, managers must evaluate, through Comparative study, which of the
rules is most rewarding in a job shop.

13.7 GENERAL PRINCIPLES OF SCHEDULING

Two variables - Lost Time and Manufacturing Cycle Time, form the most important criteria in a
production system. Let us assume that a job in a shop entails six stages of processing viz.
A,B,C,D,E&F and the corresponding processing times are Ta, Tb, Tc, Td, Te, and Tf. The three
guiding principles can be stated as below:
a) For Minimum Lost Time and Manufacturing Cycle Time
This is an ideal objective to achieve. Here in, all operations showed have same durations
viz.
Ta = Tb = Tc = Td = Te = Tf
Assembly flow lines are the best examples of scheduling such productions systems.
Similarly, with the help of Kanban System, we can design even batch production.
b) For Minimum Lost Time
Each succeeding operation should be longer than its predecessor in the Schedule
Ta<Tb<Tc<Td<Te<Tf
Jobs wait for minimal time for being loaded onto the subsequent machines.
c) For Minimum Manufacturing Cycle Time

AIOU
Each succeeding operation should be shorter than its predecessor in the schedule
Ta>Tb>Tc>Td>Te>Tf
In practice there is usually a severe limitation of availability of resources (capacities) as
demand far exceeds the availability.

258
 
 

13.8 SUMMARY
All scheduling decisions deal with the collection of scarce resources to jobs, activities, tasks, or
customers. Within the available resources, scheduling seeks to satisfy the conflicting objectives
of low inventories, high efficiency and good customer services. Scheduling, however, differ
between mass production, batch production & job shop production. The production line is

Copyrights
utilized to the extent needed for the single product, however for multiple products, a line
capacity scheduling is needed for different products. In batch production too little impact will
result in low inventories low utilisation of labour and machines, and fast customer service. Too
much impact will result in high utilisation and long customers delivery times. For scheduling
individual jobs, either sequencing on dispatching rules may be used. If sequencing is used a gantt
chart is developed which shows exactly when each operation is planned for each job. When
dispatching rules are used, jobs are selected for the next operation on the basis of prescribed
priority rule. Scheduling system in general should answer the following questions (1) What
delivery date do I promise? (2) How much capacity do I need? (3) When should I start each
particular activity or task? (4) How do I make sure that the job is completed on time? To take
care of this dynamism of operations of the situation it can be computerised.

13.9 SELF-ASSESSMENT EXERCISES

1) What is Line-Balancing of assembly operations? Illustrate with examples
2) What approach would you suggest for increasing throughput rate of assembly lines and
why?
3) Describe Economic Batch size of production? What are the cost factors involved in the
above and how are they evaluated for determining the Economic Batch Size?
4) What are the two approaches of determining the Economic Batch size of production and
how do they differ from each other?
5) Theoretically, what would be the ideal size of batch? Which technique in modern
management envisions this approach in total operation management?
6) Compare and contrast 'push' type of production system with pull type of production
System and justify which one is better?
7) Is mass production, batch or job shop type of production system going to be the trend in-
the future and why?
8) What are the general principles in guiding scheduling and sequencing?
9) In your opinion, is mass production/ assembly line system the most optimal? Justify with
reasons.
10) What is the role of computers in scheduling and sequencing of operations?
11)

12)
AIOU
Describe Line of Balance Technique for batch production. Compare it with the network
analysis technique of project management.
What is Kanban system of production? Describe its working details.
13) Compare and contrast one-card and two-card Kanban system.

259
 
 

14) What are the different criteria for scheduling jobshop production system and give the
justification.

13.10 FURTHER READINGS

1) Joseph G. Monks, Operations Management - Theory and Problems, McGraw-Hill

2)
International
Copyrights
James B. Dilworth, Production and Operations Management - Manufacturing & Services.
McGraw-Hill International
3) Alan Muhleman, John Oakland & Keith Lockyer, Production and Operations
Management, Macmilan.
4) Elwood S. Buffa, Rakesh K. Sarin, Modern Production/Operations Management, John
Wiley & Sons.
5) Everette E Adam Jr. & Ronald J. Ebert, Production and Operations Management,
Prentice Hall India.
6) K.G. Lockyer, Production Control in Practice, Pitman.

AIOU
260