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Planning and Scheduling in Manufacturing and Services

by: Michael Pinedo Materials provided by: Academia: Erwin Hans and Johann Hurink (Twente University, the Netherlands) Siggi Olafsson (Iowa State University) Sanja Petrovic (Nottingham University) Fatma Sibel Salman (Carnegie-Mellon University) Cees Duin and Erik van der Sluis (University of Amsterdam) J. Christopher Beck (University of Toronto) Tim Nieberg (University of Bonn) Marco Chiarandini (University of Southern Denmark) Corporations: Alcan Inc. (Montreal, Canada) Jeppesen Systems (Carmen Systems – Gothenburg, Sweden) Cybertec (Trieste, Italy) Fair Isaac (Dash Optimization – Northants, England) Ilog (Paris, France) SAP (Walldorf, Germany) Oliver Wyman (MultiModal – Princeton, USA) Contents of the CD 1. Slides from Academia

The textbook “Operations Scheduling with Applications in Manufacturing and Services” has been adopted by more than 20 instructors worldwide. A number of these instructors have developed elaborate websites and large number of power point transparencies. In this CD we have compiled the material developed by four of them, namely

Erwin Hans & Johann Hurink (Twente University) 300 transparencies Siggi Olafsson (Iowa State University) 500 transparencies Sanja Petrovic (Nottingham University) 400 transparencies Fatma Sibel Salman (Carnegie-Mellon University) 100 transparencies Cees Duin & Erik van der Sluis (University of Amsterdam) 350 transparencies Christopher Beck (University of Toronto) 650 transparencies Tim Nieberg (University of Bonn)130 transparencies Marco Chiarandini (University of Southern Denmark) 180 transparencies

a. Twente-Holland University of Twente-Enschede, The Netherlands – Dr. Erwin Hans and Johann Hurink  Course Title: Production planning: operations scheduling with applications in manufacturing and services  Course Description: The objective of this course is to develop an acquaintance with models and techniques for operations scheduling, with applications in manufacturing and services. The course will focus on resource constrained project scheduling, job shop scheduling, interval scheduling and reservation systems, workforce scheduling and scheduling applications. It will concentrate on exact methods as well as heuristic methods. b. Iowa State

Iowa State University – Professor Sigurdur Olafsson  Course Title: Production Scheduling IE514  Course Description: As modern manufacturing moves towards manufacture-to-order and virtual environments that both increase the complexity of the operation and demand an increasing rapid response time, it becomes more important than ever that manufacturing enterprises have Advanced Planning and Scheduling (APS) systems that can reliably schedule complicated operations quickly. At the same time, scheduling plays an increasing role in many service industries, such as the transportation, computer, and communication industries. Against this background, this course presents a solid background in the models and scheduling techniques that are the most useful in both manufacturing and service industries and places these tools within the context of modern enterprise-wide information systems such as Enterprise Resource Planning (ERP) systems, where the APS module works interactively with other modules such as MRP, inventory management, product and process design, product costing, and supply chain management. Thus, although most of our lectures in this course will be spent on scheduling models and solution techniques, after completing the course you should also understand how these technical tools can be integrated into enterprise-wide computing systems that improve the overall efficiency of the organization. In particular, by incorporating the models and techniques from this course, an APS module can be used to improve customer service and delivery promises, increase throughput, reduce work in process, and minimize setup operations.

c. Nottingham University of Nottingham - Dr. Sanja Petrovic  Course Title: Automated Scheduling G53ASD  Course Description: The aim of the course is to provide a sound understanding of the fundamental techniques and algorithms for scheduling problems that arise in a range of commercial and service sectors. The objectives of the course include the introduction of a number of scheduling algorithms including General Purpose Procedures Applied to Production Scheduling (Single Machine Deterministic Models, and Multiple Machines Problems), University Timetabling, Employee Timetabling, Project Scheduling. The course will also cover some modern approaches for dealing with scheduling problems including treating uncertainties in scheduling by fuzzy sets and fuzzy logic, using previous experiences in scheduling by case based reasoning, and multicriteria approaches to scheduling. d. CMU Carnegie Mellon University – Professor Fatma Sibel Salman  Course Title: Sequencing and Scheduling: 45-865 – Spring 2000  Course Description: Every organization needs to schedule its operations effectively in order to remain competitive in today's markets. This course gives an introduction to a broad range of scheduling problems that arise in both manufacturing and service organizations. We will examine a variety of scheduling techniques, starting from basic principles and leading to algorithms and computerized scheduling systems. We will apply these techniques to problems arising in production scheduling, project management, transportation scheduling and workforce scheduling. The emphasis is on practicality rather than depth and theory, with the goal of bringing the student up to the position where he or she knows where to look and what to expect to be able to do when faced with a situation that seems to involve some sort of scheduling problem. Instruction will be through a mix of lectures, readings, cases and problem sets. Guest lectures by practitioners, articles, videos and software demos on industrial applications will complement the class material.

e. Amsterdam University of Amsterdam, The Netherlands – Dr. Erik van der Sluis and Dr. Cees Duin  Course Title: Operations Scheduling, Spring 2004  Course Description: The objective of this course is to introduce a number of scheduling problems arising in manufacturing and service environments. The course will focus on single machine scheduling, resource constrained project scheduling, job shop and flow shop scheduling, interval scheduling and reservation systems and workforce scheduling. It will concentrate on mathematical formulations, exact methods as well as heuristic methods and complexity results. Instruction will be through a mix of lectures and problem sets. f. University of Toronto University of Toronto, Canada – Professor J. Christopher Beck  Course Title: MIE 562: Scheduling  Course Description: This course takes a practical approach to scheduling problems and solution techniques, motivating the different mathematical definitions of scheduling with real-world scheduling systems and problems. The linking theme for the course is the use of search (partition, relaxations, and inference) to solve hard combinatorial problems. Topics covered include: job shop scheduling, timetabling, project scheduling, and the variety of solution approaches including constraint programming, local search, heuristics, and dispatch rules. Also covered will be information engineering aspects of building scheduling systems. A group project will require the creation a scheduling system using the Warp Shoes database. Evaluation will be based on three terms tests, the project, and the final exam. Students should have a basic knowledge of standard optimization techniques as taught in second and third year MIE courses.

g. University of Bonn University of Bonn, Germany – Professor Tim Nieberg  Course Title: Scheduling  Course Description: The term scheduling represents the assignment of resources over time to perform some tasks, jobs or activities. Feasible schedules are compared with respect to a given optimality criterion. Mostly, the optimization problem is combinatorial and very complex. From a computational point of view these problems are hard (NP-hard) and the classical techniques fail in practice. Therefore, an optimal solution is often approximated. The following topics will be discussed:  Classification of scheduling models  Single-machine models  Parallel-machine models  Open shop, flow shop and job shop models  Timetabling  Transportation  On-line models h. SDU University of Southern Denmark – Professor Marco Chiarandini  Course Title: Scheduling, Timetabling and Routing  Course Description: The course is application-oriented and is focused on three optimization contexts: production planning, service timetabling, and transportation routing. In the first context, application examples are project scheduling, job shop scheduling and scheduling in flexible assembly systems. In the second context, application examples are crew and workforce scheduling, education timetabling and employee timetabling. In the third context, application examples are the vehicle routing problems, with constraints that derives from capacities, time windows, pickup and delivery or back-haul. For each case, the problem will be formulated, modeled and solved. Cases under uncertainty of data will also be considered. The solution techniques are mainly heuristics, such as local search methods and metaheuristics, but exact methods, such as networks algorithms, integer programming and branch and bound, will also be outlined when they are feasible for the given problem. The configuration and tuning of these solvers on the specific application will be solved by means of a systematic methology. 2. Slides from Corporations

a. Alcan Inc. Alcan is the second largest aluminum company in the world headquartered in Montreal, Canada. Their Industrial Engineering group has developed a number of planning and scheduling systems for their smelters as well as for their converting facilities. Their algorithms are based on genetic algorithms as well as integer programming techniques.

b. Jeppesen Systems (Carmen Systems) Jeppesen Systems is a software house that specializes in systems for the airline industry. They have systems that are designed to route and schedule the aircraft as well as systems that do crew scheduling. Their applications are based on the latest research in optimization. Jeppesen Systems also provides services to analyze, implement, support and improve.

c. Cybertec

Cybertec is the largest scheduling software development company in Italy. It has implementations in virtually every major company in Italy. This slide show is one that was prepared for Zanussi (the major Italian manufacturer of appliances). It clearly shows the elaborate user interfaces of the Cyberplan system.

d. Fair Isaac (Dash Optimization)

Fair Isaac develops and markets Xpress-MP, the world's leading software product for modeling and optimization. Xpress-MP solves large-scale optimization problems and enables better business decisions and resulting financial benefits in areas such as supply chain management, operations, logistics and asset management. It has been applied in sectors as diverse as manufacturing, processing, distribution, retailing, transport, finance and investment. e. Oliver Wyman (MultiModal Applied Systems)

Oliver Wyman is the market leader in planning and service design software, consulting and support for railway systems worldwide. Oliver Wyman builds MultiRail, the industry- standard system for operations and schedule planning for freight and passenger railways. Other products and services focus on operating plan design, line capacity/dispatch planning, real-time marshalling plan management, crew optimization, yield management, and a wide variety of consulting and custom software development services.

f. SAP

SAP is one of the largest software developers in the world. It is based in Walldorf, Germany. Its APO division developed an Integrated supply chain management system with a demand management module, a medium term planning module and a detailed scheduling module. 3. Scheduling Systems

 LEKIN This CD contains a copy of the LEKIN scheduling system, which is being used at hundreds of universities and companies worldwide. 4. Optimization Software

This CD contains a copy of Xpress-MP

Xpress-MP – the fast track from formulation to solution Xpress-MP is the preferred choice for end-user applications  Powerful yet flexible model building tools  The fastest optimizers around  Able to solve large problems  Rapid development

Xpress-MP – the superior optimization software component Xpress-MP is the preferred optimization component for software product developers  Easy to integrate  Reliable  Powerful, flexible, industry standard interfaces  Delivers state-of-the-art technology

This CD also contains sample programs for examples 8.41 and 11.2.1.

This CD contains a trial version of ILOG OPL Studio ILOG OPL Studio is a complete platform for leveraging valuable resources with optimization technology. Powered by ILOG's leading optimization engines, this comprehensive modeling system expedites development and deployment.

Fast development Minimal computer programming is required to develop optimization applications, thanks to ILOG OPL Studio's intuitive optimization programming language (OPL):

 Reduce development time for a wide range of optimization problems, ranging from short-term operational scheduling to long-term economic planning  Experiment with both constraint programming and mathematical programming to determine the most effective method for solving optimization problems  Descriptive OPL syntax produces substantially simpler code than traditional programming languages, reducing development time from weeks to days

Smooth deployment Optimization projects advance directly from concept to implementation, drawing on OPL Component Libraries:  Embed OPL models directly into business applications after analysis and testing  Connect optimization systems directly to data sources, reading business information and storing optimized solutions  Solve large or complex optimization problems, utilizing support for powerful computation servers 5. Examples and Exercises This section includes the details of examples and exercises which are covered in the book.  Tanker Scheduling (Computational details of Example 11.2.1)  Aircraft Routing and Scheduling (Computational details of Example 11.3.1) 6. Mini-Cases

The mini-cases in this section describe actual industrial implementations of planning and scheduling systems in industry. Most of these cases have been provided by ILOG, a software house based in Paris that markets various products including CPLEX. Some cases have been provided by Fair Isaac (Dash Optimization). Fair Isaac (Dash Optimization) markets the Xpress-MP software that is presented in Section 4 of this CD.

The mini-cases are organized according to the chapters in the book. There is one or more mini- cases for each chapter from 4 to 11.

Chapter 4: Project Planning and Scheduling Mini-case: - Samho Heavy Industries (Shipbuilding Scheduling System)

Chapter 5: Job Shop Scheduling Mini-Case: - Eurocopter (Workshop Planning for Helicopter Propellor Repair)

Chapter 6: Scheduling of Flexible Assembly Systems Mini-Cases: - Automotive Industry (Enabling Technology for Success) - PSA Peugeot Citroën (Solving the car sequencing problem using combined CP/MIP for PSA Peugeot Citroën)

Chapter 7: Lot Sizing and Scheduling Mini-Cases: - POSCO (Optimizing Steel Production to Better Meet Customer Demand) - McDougalls Foods (Matching Production to Demand) - BASF (Solving BASF’s plastics production planning and lot-sizing problem using combined CP/MIP) - Procter & Gamble (Production and planning in Procter & Gamble’s snacks business)

Chapter 8: Planning and Scheduling in Supply Chains Mini-Case: - MARS (Optimizing Production and Supporting Decisions)

Chapter 9: Interval Scheduling, Reservation Systems and Timetabling Mini-Case: - FREMAP (Planning of Medical Appointments) - British Army (Training Administration Financial Management Information System)

Chapter 11: Transportation Planning and Scheduling Mini-Cases: - Siemens (Railway Timetabling) - SNCF (Train Station Resource Allocation) - ADP (Reducing Congestion at Paris Airports) - Navion (Oil Tanker Scheduling) - Clarity Systems (Freight Container Scheduling) Chapter 13: Workforce Scheduling Mini-Case: - Long Island Lighting Co. (Corporate Resource Management System) - Severn Trent Systems (Crew Scheduler) - Banque Bruxelles Lambert (Staff Planner) 7. Additional Readings

This section includes papers that are useful additional reading. The papers are selected based on the insights and perspectives they provide. Chapter 11: Transportation Planning and Scheduling  Using Constraint Propagation to Accelerate Column Generation in Aircraft Scheduling Mattias Groenkvist Jeppesen Systems (Carmen Systems)

 MultiRail Passenger Edition System Description  Fast Track II System Description  Rail Crew Scheduling, Rostering and Management- Opcom White Paper Oliver Wyman (MultiModal Applied Systems)

Chapter 13: Workforce Scheduling  Integrating operations Research and Constraint Programming Techniques in Crew Scheduling Niklas Kohl and Stefan E. Karish Jeppesen Systems (Carmen Systems) 8. Movies

Double click on the movie. The movie should automatically open in either Windows Media Player, or Real Player. If you cannot view the movie, go to the Microsoft website (http://www.microsoft.com) and download Windows Media Player.

Saïga Aéroports de Paris (A 14 minute film) Presenting Saïga, an application developed with ILOG products by Aéroports de Paris. Designed to optimize resource allocation at airports, Saïga includes a graphical user interface, a planning and allocation optimization module, and a real-time control engine. ILOG products are used at many other airports throughout the world as well. At London’s Heathrow Airport, for example, British Airways is using an ILOG-based application to design the proposed Terminal 5. Airports are not the only operations that use ILOG products; they are also widely used in the telecommunications, defense, transportation and manufacturing industries. Also featured in the film is an ILOG-based system used by Motorala to schedule the satellites in IRIDIUM, a global communication system.

United Airlines PEGASUS Software (A 10 minute film) Managing flight schedules tends to be a complicated process and involves many different variables, like aircraft scheduling, maintenance, crew scheduling, and so on. Moreover, it has to be flexible enough to meet the changing expectations of the customers. PEGASUS, the scheduling system developed by United Airlines, uses a heuristic system, instead of a linear program, to develop flight schedules that are both efficient and flexible.