# Business Operations

posted by
**HJ** on
.

I am wondering if someone could let me know whether my calculations for the critical ratio is correct. I've included the problem and my portion of the work I'd like some help on.

Hi-Ho Yo-Yo, Inc.

It was a little past 9:00 on a Monday morning when Jeff Baker walked into your office with a box of donuts.

“I’ve been talking with Anne about a problem we have with short-term capacity in our pad printing operation. You know, that’s where we print the logo on the Custom lines of yo-yos. We have received more orders than usual for July, and I want to release the orders to pad printing in a way that will enable us to meet our due date commitments in the best way possible. Would you have time to look at our order list (attached) and see what kind of schedule we should follow to do that? By the way, you have established quite a reputation in your short stay here. You have a talent for really explaining why your recommendations are the best approach in a way that all of us “over-the-hill” managers can understand. Please be sure to do that for me too. I want to understand why your recommendation is the best schedule and what the tradeoffs are for other possible schedules- and none of that philosophical college mumbo-jumbo. Remember, I came up through the ranks. I don’t have one of those sheepskins on my wall,” he says with a laugh.

Since your schedule was back to normal after that MRP report you did for Anne, you agree to look at the information. After that compliment, how could you say no? “Try to get back to me within a couple of days,” Jeff said as he left your office.

After a few minutes with your old operations management text, you call the production control office to confirm the pad printing schedule. They confirm that pad printing runs one eight-hour shift per day. They tell you that due to a make-up day for flooding in June, pad printing will be running 23 days in July, beginning Friday, July 1 (they will work three Saturdays on July 9, 16, and 23, and take a one-day holiday for July 4). You thank them for the information and then you begin to develop your plan.

Even though Jeff lacks a college degree, from what you have seen, he is very sharp. And obviously he knows good work when he sees it since he liked, and apparently understood, your past work. You resolve to cover all the bases but in a way that is as clear as possible.

PAD PRINTING ORDER LIST

Job

Date Order Received

Set-Up Time

Production Time

Due Date

A

6/4

2 hrs.

6 days

11-Jul

B

6/7

4 hrs.

2 days

8-Jul

C

6/12

2 hrs.

8 days

25-Jul

D

6/14

4 hrs.

3 days

19-Jul

E

6/15

4 hrs.

9 days

26-Jul

Note: Setup time is to set up the pad printer at the start of the job. Setup includes thoroughly cleaning the printing heads and ink reservoirs, installing the new pad(s) and ink supply, and carefully aligning the machine. Setup at the beginning of a new day with the same job is insignificant.

Examine the following rules and write a report to Jeff Baker summarizing your findings and advise him on which rule to use.

Rules: FCFS, SPT, DD, and CR.

Here's my CR portion that I'm unsure about. I have tables created from Excel but I don't think they show up on here...

Critical ratio jobs are “processed according smallest ratio of time remaining until due date to processing time remaining” (Stevenson, 2011, p. 712). The CR rule has a few more steps in the calculation process but still easy to use. The CR calculations involve subtracting the flow time from the due date for each job that is in the queue waiting to be processed. The job sequence is determined by the ratios and begins with the lowest critical ratio. Once that job is complete, the critical ratios are determined for the remaining jobs and, again, the job with the lowest critical ratio is next in line to be processed. This process continues until all jobs are complete. The breakdown of the process is as follows with the lowest CR value highlighted in yellow;

Job Sequence (1) Set-Up Time based on 8 hour day (2) Production Time (days) (1) + (2) Processing Time (3) Flow Time = (1) + (2) + (previous cell in 3) (4) Due Date Critical Ratio Calculation

A 0.25 6 6.25 6.25 7/11 11/6.25 ± 1.76

B 0.5 2 2.5 8.75 7/8 8/2.5 ± 3.2

C 0.25 8 8.25 17 7/25 25/8.25 ± 3.03

D 0.5 3 3.5 20.5 7/19 19/3.5 ± 5.42

E 0.5 9 9.5 30 7/26 26/9.5 ± 2.74

Once job A is complete, the following table shows the next job in the queue for processing at the flow time of 6.25 days:

Job Sequence (1) Set-Up Time based on 8 hour day (2) Production Time (days) (1) + (2) Processing Time (3) Flow Time = (1) + (2) + (previous cell in 3) (4) Due Date Critical Ratio Calculation

A - - - - - -

B 0.5 2 2.5 8.75 7/8 8-6.25/2.5 ± 0.7

C 0.25 8 8.25 17 7/25 25-6.25/8.25 ± 2.27

D 0.5 3 3.5 20.5 7/19 19-6.25/3.5 ± 3.64

E 0.5 9 9.5 30 7/26 26-6.25/9.5 ± 2.08

The process is repeated at the flow time of 8.75 days:

Job Sequence (1) Set-Up Time based on 8 hour day (2) Production Time (days) (1) + (2) Processing Time (3) Flow Time = (1) + (2) + (previous cell in 3) (4) Due Date Critical Ratio Calculation

A - - - - - -

B - - - - - -

C 0.25 8 8.25 17 7/25 25-8.75/8.25 ± 1.97

D 0.5 3 3.5 20.5 7/19 19-8.75/3.5 ± 2.93

E 0.5 9 9.5 30 7/26 26-8.75/9.5 ± 1.82

With two jobs left to do, the critical ratios are determined at the flow time of 18.25 days:

Job Sequence (1) Set-Up Time based on 8 hour day (2) Production Time (days) (1) + (2) Processing Time (3) Flow Time = (1) + (2) + (previous cell in 3) (4) Due Date Critical Ratio Calculation

A - - - - - -

B - - - - - -

C 0.25 8 8.25 17 7/25 25-18.25/8.25 ±1.88

D 0.5 3 3.5 20.5 7/19 19-18.25/3.5 ± 0.21

E - - - - - -

Now, we can arrange the job sequence based on the critical ratios as A-B-E-D-C as shown below with the calculations of the average flow time, average tardiness, and average number of jobs;

Average flow time: 85/5 ± 17 days

Average tardiness: 8.5/5 ± 1.7 days

Average number of jobs: 85/30 ± 2.83

Job Sequence Date order received Set-Up Time (hours) (1) Set-Up Time based on 8 hour day (2) Production Time (days) (1) + (2) Processing Time (3) Flow Time = (1) + (2) + (previous cell in 3) (4) Due Date (3) - (4) Days Tardy (0 if negative)

A 6/4 2 0.25 6 6.25 6.25 7/11 0

B 6/7 4 0.5 2 2.5 8.75 7/8 0.75

E 6/15 4 0.5 9 9.5 18.25 7/26 0

D 6/14 4 0.5 3 3.5 21.75 7/19 2.75

C 6/12 2 0.25 8 8.25 30 7/25 5

30 85 8.5