Operations Management : Scheduling

Abstract
Scheduling is an age-old operations management tool aiming to improve the efficiency of any process, albeit labour intensive, service oriented or production and manufacturing processes. The procedure of scheduling is based on the knowledge that all activities within a company are time dependant. The activities also have dependencies on one another. Scheduling takes all this into account and aims to sequence events or tasks in such a way that a minimum time window is used to complete tasks, and ultimately projects. The problem is that such a wide variety of scheduling techniques and tools are available to businesses, it is sometimes hard to decide which will have the most favourable results. The aim of the project is to supply the reader with enough information about scheduling techniques and tools, specifically backward and forward scheduling, and Gantt charts and network diagrams, that an educated decision can be made as to which tools and techniques will serve their business the best. Information was systematically gathered through a selection of resources and the different techniques and tools were compared in terms of their monetary benefits, resources required to implement the technique or tool and the ease of their implementation. Either technique combined with any one of the scheduling tools bare rewards for a company. It depends on the companys size, service or product deliverables, labour intensiveness of process or a combination of other factors what combination of scheduling tools and techniques will yield optimal results. The Zuquala Steel Rolling Mill project, a joint project of ISCOR (Iron and Steel Company of South Africa) and BMEIB (Basic Metals and Engineering Industries Bureau), face such a dilemma. Their situation will be analysed and the optimal combination of scheduling techniques and tools for their situation will be determined. The second case study, of the steel coil process scheduling at ArcelorMittal, shows the step by step manufacturing process. In this case study the reasons for delays were analysed and how this influenced variability in the schedule.

Table of Contents
1. Introduction ....................................................................................................................................................................... 1 1.1. 1.2. 1.3. 1.4. 2. Background ............................................................................................................................................................. 1 Problem Statement ............................................................................................................................................. 2 Aim .............................................................................................................................................................................. 2 Project Scope.......................................................................................................................................................... 2

Literature Review ............................................................................................................................................................ 3 2.1. 2.1.1. Scheduling ............................................................................................................................................................... 3 Forward Scheduling...................................................................................................................................... 3 Financial benefits .............................................................................................................................. 4 Resources .............................................................................................................................................. 4 Implementing the Technique ...................................................................................................... 4

2.1.1.1. 2.1.1.2. 2.1.1.3. 2.1.2. 2.1.3. 2.2. 2.2.1.

Backward Scheduling................................................................................................................................... 5 Combination of Forward and Backward Scheduling ................................................................... 7 Scheduling Tools .................................................................................................................................................. 7 Gantt Charts ...................................................................................................................................................... 8 Identify time required for each task .......................................................................................................... 9 Drawing the Gantt chart ................................................................................................................................... 9

2.2.2. 3.

Network Diagrams ..................................................................................................................................... 14

Case Studies ..................................................................................................................................................................... 18 3.1. 3.1.1. 3.1.2. 3.1.3. 3.1.4. 3.2. Zuquala Steel Rolling Mill project ............................................................................................................ 18 Introduction ................................................................................................................................................... 18 Challenges they faced................................................................................................................................ 18 How the companies applied scheduling.......................................................................................... 19 How did they benefit. ................................................................................................................................ 19 ArcelorMittal ....................................................................................................................................................... 20

Conclusion .................................................................................................................................................................................. 25

List of Figures
Figure 1: A simplified visual example of what a forward scheduled task/project might look like. 3 Figure 2: Combination schedule where both forward and backward scheduling was implemented ................................................................................................................................................................................ 7 Figure 3: Gantt Chart 1 ......................................................................................................................................................... 10 Figure 4: Colour code for Gantt chart ........................................................................................................................... 11 Figure 5: Gantt Chart 2 ......................................................................................................................................................... 12 Figure 6: network diagram ................................................................................................................................................ 15

List of Tables
Table 1: Various activities of the EGL steel rolling process .............................................................................. 11 Table 2: Network Diagram Activities List .................................................................................................................. 16

1. Introduction
1.1. Background
Scheduling is an exceptionally useful operation to incorporate into a company. It takes into account the time dependence of the activities of a process, as well as the activities dependency on one another, and opts to identify the shortest time window in which the process can be completed, without disregarding the integrity of the process or decreasing the quality of its end product. Scheduling is a very old systems improvement tool, that was first implemented by the old Egyptians, some 3 000 years ago. Scheduling seemed to be a tiresome activity that lacked efficiency because of the calculations of man-to-workstation ratio, that had to be done by hand, and the activity allocation and window for completion that had to be determined manually during the set-up of the activity timetable. According to Patrick Weaver, In 1956/57, Morgan Walker and James Kelley Jr. started developing the algorithms that became the Activity-on-Arrow or Arrow Diagramming Method (ADM) scheduling methodology. The Program Evaluation and Review Technique (PERT) system was developed at around the same time but lagged critical path method (CPM) by six to 12 months, although the PERT team first coined the term critical path. The boom of the computer age gave rise to a new, more effective scheduling system, with many of its calculations and tasks being fully automated. Thanks to the new computerized system, many more companies opted to implement a scheduling in their daily routines. Nowadays scheduling is done using electronic calendars, MS Outlook, Personal Digital Assistants (or PDAs) and even smartphones. Every deed or goings-on within a company is dependent on time. By scheduling effectively, a company can better manage its assets, amongst which is time, creating a greater capacity per Rand investment, resulting in lower costs and thus increasing the companys profit. The main aim of any business is to meet customer demand on time. Scheduling gives any company a competitive advantage, because having a sense of how long a process or product will take to complete gives way to establishing very accurate completion dates. In this manner a company can improve its delivery dependability and customers can have ease of mind that they will receive their service or product on time. An operation can be scheduled in a multitude of ways, the most common being either forward scheduling, backward scheduling, or a combination of the two. The activities that receive the most attention in scheduling is routing, which is the sequence in which operations are performed and the workstations that perform them; loading, in which 1

jobs are assigned to the different workstations; and dispatching, that describes the release of an order to start a production operation. Scheduling is important in both operations management and in the service component of the companys deliverables. With production operations the scheduling varies with the specific job operation, the repetitive nature of the task and the labour intensity. Service scheduling considerations include appointment systems, reservation systems and strategic product pricing. Operation managers have a great number of scheduling tools and techniques at their disposal such as Gantt charts, Network diagrams, Johnson's job sequencing rules, queuing analysis, and the critical ratio method.

1.2.

Problem Statement

Any production company wants to function as efficiently as possible because this could secure them an advantage over their competitors. The problem is constructing a Master Production Schedule (MPS) that uses the right manner of scheduling for the company and conveys the schedule effectively by using one or more of the several techniques available.

1.3.

Aim

The aim of the report is to supply the reader with sufficient information about forward and backward scheduling so that he or she can be capable of making an informed decision as to which technique will suit their purpose the best and what tools they can use to support the chosen technique.

1.4.

Project Scope

Although a wide number of scheduling techniques exist, only forward and backward scheduling, and a combination of both, will be evaluated because, from the research done, they seem to be used most widely. Two scheduling tools will also be analysed: Gantt charts and network diagrams

2. Literature Review
2.1. Scheduling
As was established earlier, all activities within a business are time dependant and have a direct influence on profit margins and the effectiveness of a company, making scheduling a very useful function to implement. By Scheduling effectively companies can use their assets more effectively and create a greater capacity per Rand invested, which will result into lower costs. This added capacity will result into more flexibility which provides a increase in delivery rate and there for the company will provide a better customer service this is all due to effective scheduling. Good scheduling is a competitive advantage which contributes to dependable delivery. It is evident that scheduling is very beneficial to any company striving to be better at what they are providing there for we believe that investing in scheduling will be profitable and deserves the time and money that a company is willing to invest. Scheduling has a few techniques that can be used and implemented depending on the need of each company. A few of these techniques will be described in the following sections.

2.1.1. Forward Scheduling

Many production and manufacturing companies use forward scheduling as their chosen scheduling technique. Forward scheduling starts at the present moment, as soon as the requirements of the customer is known, and schedules tasks at the earliest possible dates when they may be completed, according to when the required resources for the task become available.

Figure 1: A simplified visual example of what a forward scheduled task/project might look like. (http://www2.cob.ilstu.edu/achoudh/ch oudhury/classes/Mqm227/ch15_classno te_1.pdf, 2005)

It is evident when looking at Figure 1, that forward scheduling tells you the earliest date a project can be completed rather than completing the project when it is required. 2.1.1.1. Financial benefits

Forward scheduling implements resources as soon as they are available to complete a task. Thus labour utilization is very high, as the workforce almost always has work that they can continue with, given that the rest of the needed materials are available. Very little of the funds invested in labour goes to waste because of the workforce having no available task to do. Starting a task at the earliest possible date has the result that there is slack time available between the determined completion date and the delivery date at which the customer expects to receive the product or service. Thus if anything should go wrong, the product can still be saved within time to deliver, keeping customer satisfaction high and possibly giving way to new interested customers also wanting the high level of dependability the company offers. The financial benefits of forward scheduling thus lies in the dependability it generates. 2.1.1.2. Resources

For forward scheduling to be implemented successfully, a company must ensure that the estimated manufacturing and fabrication time be accurate, else it is impossible to establish delivery times reliably (http://worldacademyonline.com/article/18/1/scheduling.html, 2012). Implementing high speed electronic databases, to which all activity logs are saved, can aid in calculating the expected activity duration, based on historical data. Furthermore, a knowledgeable Operations Manager that can implement the scheduling technique effortlessly and can convey the implications of the schedule to the workforce is crucial to the success of the schedule. 2.1.1.3. Implementing the Technique

Listed below are some of the advantages of implementing forward scheduling: High labour utilization Flexibility because of slack time Maximises machine utilization Minimises funds lost due to waiting time

The primary disadvantage of this type of scheduling is that is is very dependent on the accuracy of the estimated manufacturing time. No matter how technologically advanced your production of manufacturing software system is, if your estimating technique is inaccurate, your system will render poor results. Forward scheduling is a excellent method to implement for companies that are custom fabricators, and rely on individual customer orders. Bigger companies may find however, that this technique might have a negative effect on their delivery rates as it breaks down if resources arent available for subsequent tasks. A company should thus first investigate their deliverables before choosing forward scheduling to be implanted.

2.1.2. Backward Scheduling

In a document by Jared Cummings (n.d.) it is stated that the definition of Backward scheduling refers to the process of planning a project by commencing with the deadline and designating the component steps in reverse order of time, ultimately revealing the latest possible start date. This process is used as opposed to the forward modelling process that is discussed in a former part of this document. Basically Backward Scheduling makes use of different techniques such as GANTT-Charts, Network Diagrams and PERT, which will be discussed in the following paragraph. PERT, also known as the Program Evaluation and Review Technique, is a technique that uses different time intervals to obtain a realistic estimate of the time it will take to complete certain steps in each step in a process. The intervals used are the most optimistic duration (O), the most likely duration (M) and the most pessimistic duration (P). It is the used in the formula: = + 4 + 6

where E is the most realistic estimated time duration. Using the PERT, it was possible to calculate the most realistic duration of each process for EGL Steel Manufacturing. Only the first calculation will be illustrated, the rest of the times will only be shown. Closing Time To Slab Allocation For Order E = (O + 4M + P)/6 = ((21.3) + (4)(25.1) + (45.1))/6 = 27.8 days

Slab Allocation To Hot Strip Mill 7.4 days Hot Strip Mill To Pickler 8.6 days Pickler To Tandem Mill 5.2 days Tandem Mill To Annealing 7.9 days Annealing To Temper Mill 7.6 days Temper Mill To Inspection 1.1 days Inspection To Galvanizer 7.4 days Galvanizer To Ready 4 days Resources

2.1.2.1.

As opposed to many other scheduling techniques, it is not necessary to have any special software to use backward scheduling. A good understanding of the sub techniques that are supposed to be used in the backward scheduling technique is mandatory. Even though it is a relatively simple technique, it can still be used in a wide variety of situations. 2.1.2.2. Implementation

In a document released by TATA and written by Tarun Chugh (n.d.) it is stated that one of the benefits of backward scheduling is that, because of the fact that the latest date of completion is used, it plans for delays, thus minimizing the time of delays. A high level of resource utilization is ensured It takes all resource constraints and bottlenecks into account. Equipment handling cost is minimized as equipment is only used when it needs to be As there is a valid amount of time available between processes, it reduces the risk of completion times increasing in case of schedule changes or if new orders come in If there are more orders or if there is a necessity of more resources needed in a certain area, the activity can be adjusted accordingly.

2.1.3. Combination of Forward and Backward Scheduling

The values of both forward and backward scheduling have been discussed, however, in come companies, or with certain projects, it is infeasible to implement either of the two methods. In such a case it might be reasonable to combine the two methods to create an new scheduling method. In a situation where the two methods are combined, the first tasks in the process will be forward scheduled (These are the tasks that are resource dependant) up and to the scheduled delivery date or goods issue date, see figure . From this point onward backward scheduling is implemented (the tasks are no longer resource dependant, they now only depend on the unloading date at the customer)

Figure 2: Combination schedule where both forward and backward scheduling was implemented http://help.sap.com/saphelp_scm50/helpdata/EN/05/f8923945b12c4de10000000a114084/content.htm

2.2. Scheduling Tools

Scheduling tools are used to make the task of scheduling more efficient and easy to implement so that the company may benefit from the new scheduling technique without a lot of drama and fuss. These techniques are easy to use and very efficient. They will most certainly be valuable assets to a company wishing to implement scheduling as an operational aspect.

2.2.1. Gantt Charts

According to R.A. Inman (2012), this technique was developed in the 1900s after the management pioneer, Henry Gantt, to serve as a visual aid for loading and scheduling. A Gantt chart is used to organize and clarify the actual or intended use of resources within a time framework. It can be classified as a type of bar chart that shows activity progress on time. The bars on the chart indicate the length of certain tasks, with the two ends of the bars being the starting and completion dates. Time is generally represented horizontally and scheduled resources are listed vertically. With the use of Gantt charts, a manager is able to make trial-and-error schedules to get an impact of the different arrangements. Thorstad (2007) states that there are a variety of Gantt charts, but the most familiar are the load- and schedule charts. A load chart shows the loading and idle times for machines or manufacturing processes; it portrays when certain jobs are scheduled to begin, end and where idle time can be anticipated. A scheduler is able to redo loading tasks for better use of the work centers, with a Gantt chart. A schedule chart is used to observe job progress. The vertical axis of a schedule chart shows the orders or jobs in progress and the horizontal axis represents time. Upon viewing the chart, one can see which jobs are on schedule and on time. An important aspect of Gantt charts is the dependant activities that need to be completed in a sequence, with an activity that can only be completed after a previous activity is done. Other activities, that are not dependent on the completion of other tasks, can be done at any time before or after a particular stage is reached. These activities are nondependent or 'parallel' tasks, as stated by James Manktelow and Amy Carlson. The basic Gantt Chart procedure, as excerpted from Nancy R. Tagues The Quality Toolbox (2004) is listed below and is applied to our case study: 2.2.1.1 Steps to Create a Gantt chart In order to construct a Gantt chart three important steps need to be completed, identifying the tasks that are crucial to complete the operation, key milestones of the operation, and the sequence in which tasks are required to be completed. To explain Gantt chart more effectively, the process of steel manufacturing, specifically the Electro Galvanized Line (EGL), was used to aid as an example. Identify the tasks needed to complete the project: a) Closing time to Slab allocation for order 8

b) Slab allocation-to-hot strip mill c) Hot strip mill to pickler d) Pickler to tandem mill e) Tandem mill to annealing f) Anneling to temper mill g) Temper mill to inspection h) Inspection to galvanizer i) Galvanizing to ready Identify key milestones Identify the key milestones in the operation by brainstorming a list, or by drawing a flowchart, storyboard or arrow diagram for the project. Identify the time required for each task. Identify time required for each task a) Closing time to Slab allocation for order b) Slab allocation-to-hot strip mill c) Hot strip mill to pickler d) Pickler to tandem mill e) Tandem mill to annealing f) Anneling to temper mill 28 days 7 days 9 days 5 days 8 days 11 days 7 days 4 days

g) Inspection to galvanizer h) Galvanizing to ready Identify the sequence of tasks

With the focus on the EGL process, each activity is dependent on the previous activity as listed in point 1 and no tasks can happen simultaneously. Drawing the Gantt chart Draw a horizontal time axis along the top or bottom of a page and choose an appropriate scale for the length of the tasks (days or weeks). 9

Write each task and milestone of the project in order down the left side of the page,. For events that happen at a point in time, a diamond should be drawn under the time the event must happen. For activities that occur over a period of time, a bar should be drawn in accordance to the predicted time. As the activities take place, the diamonds and bar should be filled in to show their completion. For tasks in-progress, one should estimate how far along the task is and fill in the appropriate length of the bar. The Gantt chart shows the manufacturing process: Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11 Week 12 a b c d e f g h
Figure 3: Gantt Chart 1

Due to the fact that the manufacturing tasks in case study are all dependant on the previous task a second Gantt chart will be described for the whole process, to indicate how certain tasks can start, while another is in progress Task1-Raw materials: Collect and store the raw materials: Scrap or sponge iron Task 2- Melting: Sponge iron is melt in an electric arc furnace Task 3-Refining: The melting metal is refined. One separates the chemical elements in order to get the specific steel needed. Task 4-Casting: The liquid steel is cast in products. Task 5-Rolling: The product is heated at 1200c and then rolled in order to get the plates. Any manufacturing process is like a flow of successive tasks chained each other, thus one has to schedule the process carefully. 10

The flow is shown by use of the following figure: Raw material: red, manufacturing process: blue , final goods: yellow

Figure 4: Colour code for Gantt chart

The first task begins with the inventories of raw materials. The manufacturing process has various lines and in each line various work stations. The process ends with the completed goods ready to be delivered to the clients. 1 2 3 4 5 6 7 Buy the raw material Melting Refining Casting Rolling Quality control Shipping 3 weeks 1 week 3 weeks 1 week 2 weeks 7 weeks 4 weeks Previous stage Raw material Melting Refining Casting Raw material Quality control 0 1 1 and 2 1, 2 and 3 1, 2, 3, 4 1 1 to 6

Table 1: Various activities of the EGL steel rolling process

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Table 1: Process Time Schedule One can observe that the quality control operates along the entire process.

Figure 5: Gantt Chart 2

By observing the chart it is clear that one can manage the process in 14weeks in stead of the 21 weeks which it would take when scheduling the tasks added together. 2.2.1.2 Financial benefits The advantage of a Gantt chart is that it simple and cost efficient. The only expense will be for the employee constructing the Gantt chart. The chart will be able to save money for a company, because of the tasks being scheduled for future implementation. The manager can see when tasks are expected to be completed and he is informed visually when a task is behind schedule, which could create expenses. Remedial action can be taken to make the process successful and profitable. A company can save money by scheduling tasks simultaneously, thereby decreasing the production time. 2.2.1.3 Resources This scheduling technique is very a simple, effective and efficient. There are various programs available to draw Gantt charts quicker. The most familiar resource used for drawing Gantt charts is an Excel bar chart. Programs such as Smart Draw can also be used.

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Training an employee to conduct such a chart does not take up a lot of time and is beneficiary for the company. Some Gantt charts are drawn with additional columns showing details such as the amount of time the task is expected to take, resources or skill level needed or person responsible. Constructing the Gantt chart forces group members to think clearly about what must be done to accomplish their goal. By keeping the chart updated as the project proceeds,the project is managed and schedule problems are adhered to. Computer software can simplify constructing and updating a Gantt chart. The unit of time chosen depends on the length and detail of the product, but some common units are weeks, quarters, months, and years. 2.2.1.4 Implementation Gantt charts are used to create precedence networks that determine the priority level of each task. It also evaluates the dependency relationships of each of the tasks. These two aspects of the Gantt chart make it possible arrange and schedule the completion time of various tasks in a manner that shows a logical progression toward the successful completion of the project For more complex processes Critical path analysis and PERT scheduling techniques are used. These techniques will be discussed. Gantt charts are the most widely used scheduling tools; however, they do have some limitations. The chart must be repeatedly updated to keep it current. The chart does not directly reveal costs of alternate loadings nor does it consider that processing times may vary among work centers. This technique is concerned with executing the project in the most efficient manner, it also helps to define the amount of time required to complete each individual task. The chart defines tasks that can be completed concurrently and tasks that cannot be addressed until other tasks are fully complete. This function helps to project both the sequence and the duration of each task involved in the project. According to MindTools (http://www.mindtools.com/pages/article/newPPM_03.htm),One of the main advantages of preparing a Gantt chart is that it provides an easy reference for how to carry out a given project by breaking it down into specific phases and tasks. This visual charting often helps to identify potential bottlenecks in the project, as well as make it easier to identify tasks that may have been overlooked in the original layout of the project. Unlike other scheduling techniques, it is possible to adjust the components of 13

a Gantt chart to accommodate any unforeseen circumstances that take place during the life of the project. Gantt charts are excellent models for scheduling and for budgeting, and for reporting and presenting and communicating project plans and progress easily and quickly, but as a rule Gantt Charts are not as good as a Critical Path Analysis Flow Diagram for identifying and showing interdependent factors, or for 'mapping' a plan from or into all of its detailed causal or contributing elements. Creating a Gantt chart requires a highly specific data structure that must be created purposefully and cannot be expected to exist in the wild in general business data sources. 2.2.1.5 When to Use Gantt Charts When scheduling and monitoring tasks within a project. When communicating plans or status of a project, the steps of the project or process, their sequence and their duration are known or when it is not necessary to show which tasks depend on completion of previous tasks.

2.2.2. Network Diagrams

Network diagram is the step you plan before starting the process. The boxes are called nodes and they represent the activities. These activities link into each other, the activity can not start before the forehanded activities have completed its step (dependencies). 2.2.2.1 Implementing the Network diagram Technique

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Activity (from WBS) Coal Coke oven Blast Furnace Molten Iron Basic Oxygen Furnace Hot strip Pickling Cold Reducing (tandem rolling) Batch or Continuous Annealing Tempering Electro galvanizing Line Electro galvanized Products Lime stone Iron ore Sinter Lime and Flux Scrap Oxygen Hot rolled unprocessed Products Welded pipe and tubing Tempering Tin or Chrome Plating Hot dipped Galvanized Products Cold Rolled Products Hot dipped Galvanizing

Figure 6: network diagram

Activity A B C D E F G H I J K L N O P Q R S T U V X Y Z GG

Predecessors A B,N,O,P C D ,Q,R,S HH F G H I J K F F F J J J,GG G E

Ladle Metallurgy and vacuum degassing HH

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Table 2: Network Diagram Activities List

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2.2.2.2 Benefits of a Network Diagrams Creating realistic Due dates. Project Focus can identify tasks that have the most dependencies. Resource levelling better resource level planning will optimize the efficiency. Schedule Compression - tasks that can be done in parallel to compress the process in order to meet the due date. Use as a guide to do check points (is the process in schedule). Financial benefits If the process does not meet the due date the company can be fine for every day exceeding the due date.

2.2.2.3 What company require creating a successful Network Diagram? There are many types software to create network diagram. The operator should be able to understand the process that needs the diagram. Its important to know the due date and witch task can be performed in parallel and witch tasks will form the critical path.

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3. Case Studies
3.1. Zuquala Steel Rolling Mill project
3.1.1. Introduction
Scheduling and project management requires more attention than the usual management practice because of the utmost importance for the need to Delivering the end result in the specific way within the cost and time constrains as well as agreed quality. Create and manage a project team and Keep well trained staff for continuation of the project

Such attention, which is properly managed, ensures the operation establishment with the effective plan detailed scheduling and task planning proper assessment of the operation

The Zuquala Steel Rolling Mill project, is a project that ISCOR (Iron and Steel Company of South Africa) and BMEIB (Basic Metals and Engineering Industries Bureau) together joint to finish of the project.

3.1.2. Challenges they faced

According to the practicability study conducted by IPS (Industrial Project Services), the projected demand at the average steel factory, for rolled products (reinforcement bars and structural steel) for the year 2009 was estimated to be round about 132,532 tons. For the year 2000, the estimate was about 85,000 tons. Most steel factories produce about 12,000 tons of bars annually if it is utilized efficiently, so they dont come near the demand. To reach this demand, import substitution is the solution. But his situation had to be improved by installing a rolling mill to cover at least about 75% of the demand. Furthermore, there are a lot of issues now a day to get good quality rolled RC bars to secure economical construction by designers. It is because of these problems that the Zuquala Steel Rolling Mill project was defined for ISCOR and BMEIB to solve. 18

To solve all of the above problems according to the available limited resources and existing financial constraints, the companies had to make use of the correct technology and apply the best suitable scheduling techniques very specific.

3.1.3. How the companies applied scheduling.

In the scheduling and detail planning of the project, all the tasks from the instillation of the project office to handing over of the mill to the plant management were all worked out clearly in perfect detail, showing the duration each tasks going to take ant the responsible person for each of the tasks. There were round about 20 major tasks, with each having a detailed sub-task. Then the sub-tasks were further scheduled into subactivities, showing all of their durations and staff responsible. In the initial administrative and supply tasks it shows the pattern of the tasks in the scheduling and detail planning. In the master schedule the relations of the tasks were identified and shown. The critical path was: civil works, refurbishing and erection of mechanical parts of the mill, electrical engineering tasks and Other utility works, specifically the mill central water cooling system.

All of these tasks had to be completed within three months time. The central cooling system, furnace fuel system and compressed air system were also planned in detail, scheduled and assigned to a specific responsible and person which was suitable. All the tasks in the detail planning and scheduling of the project were worked out and processed by using the program Microsoft Project (version 4) software which was practiced by almost all senior erection engineers, and included scheduling techniques such as the Gantt chart, the Activity Network etc.

3.1.4. How did they benefit.

Zuquala Steel Rolling Mill project had been finished in the correct period of time that was planned and the results did not show major differences according to the objectives. In every aspect the projects has met its demands and objective that was acceptable for the clients. The product quality, specifically the RC bars of the mill, has prompted designers to be dependable for economical design. According to the senior engineering, reaching these goals was not just a matter of quick planning and starting the project. Every aspect of the project had to be studied in depth. The scheduling part must be one of the most important aspects. You can have all the staff,

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machines, tools etc. but if your scheduling is not worked out you will never reach the demand required of you. The plant that was use for the project is further expected to fully penetrate the market by producing flat strips and angle irons because of the huge success that was accomplished.

3.2. ArcelorMittal
The scheduling of ArcelorMittal is done by a scheduling department that schedules the steel coils for each process. The schedulers have computer programs that is linked with the company's database. Installing such scheduling software can be expensive but having the software will keep all the material organized and send it to where it needs to go. Problems can also occur where the software cannot schedule the coils (covered with graphs). This is where the schedulers must manually schedule the material or wait for cooling time or repairs etc. When the order is processed and ready to start production, the order information is on the scheduling system and the schedulers can now see at what process the material currently is. They can also see when the coils is done at the previous process and when it is needed to be scheduled for the next process. If the material can be scheduled according to the production rules (covered later with graphs) the schedulers schedule the material for the next process using the computer software. This scheduling is important for the company to keep material flowing as fast as possible and to better keep track of an order while being produced. A rough root cause analysis was done to identify main contributors for late orders and to see where to go into more detail. Data from 450 coils produced in the previous year were used. From this quick root cause analysis it was found that only 26 % of the sample were ready to be shipped to the client on time. 15 % of the sample was less than 2 weeks over the delivery date, and 59 % of the sample were late more than 2 weeks. The following data was used to see the relationship between different aspects. Order reception date vs. ready to be delivered: 87 % of all the orders received more than 8 weeks from the delivery date were on time. 81 % of the orders in the sample were received more than 8 weeks from the delivery date.

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The probability for a late delivery date increases as the order reception date gets later. Thus avoid order reception at 8 weeks or less.

Time from slab allocation to ready to be delivered: Slab allocation: When the metal is cast into a slab and allocated to and order. Measured the time from the allocation to ready to be delivered. Only 26 % of the orders need 6 weeks or less from slab allocation to on time ready. The longer the process takes the higher the chances for late delivery. Process time from slab 8 or 9 weeks - Probability for late delivery is more than 60 % Process time from slab more than 9 weeks - Probability for late delivery is 80 %

In order to try and find a quick solution to be implemented so that the delivery date is not missed, reasons for not scheduling the material at the different processes had to be looked at. This was done because of time is being lost for waiting to be scheduled and all of the time lost at each process contributes to the order not meeting its deadline. Time it takes from being scheduled and processed from one process to another and reasons why the material cannot be scheduled:

1. Process time - Slab allocation for order The graphs shows the percentage of material being produced on the Y-axis, and the time (in days) on the x- axis The top graph is a representation of all the products. The bottom graph is labelled : >OTR+14 - Orders which scheduling took long resulting in a missed delivery date of more than 14 days

OK - Orders that was scheduled quickly and made the delivery date

OTR+14 - Orders that was scheduled slightly faster than >OTR+14 but still not fast enough to make the delivery date. (missed the delivery date by no more than 14 days) 21

This graph illustrates a real world example of the importance of scheduling. If scheduling of the material is not done effectively, the process will take longer than originally planned. Due to the fact that the EGL process has several sub processes, delays at any of the processes cannot be allowed if you want to meet the deadline. Also if there are any material that cannot be scheduled due to defects or production rules, the problem must first be rectified before the material can be scheduled. 2. Process time from slab - Hot strip mill This graph (and the graphs to follow) portrays the same information as the first graph Reasons for a delay in the scheduling process: Cooling of material. Material can only be scheduled for the next process after 4 days of cooling. Material that is being put in the wrong location. Company has scheduling rules stating that at least 5000 ton of material must be on schedule for production to start

3. Process time from Hot strip mill - Pickler This particular process time is very consistent and the scheduling process can keep the material going through quickly. Reasons for a delay in the scheduling process: Cooling of material. Material can only be scheduled for the next process after 4 days of cooling. Material that is being put in the wrong location delays the entire process. Company has scheduling rules stating that at least 6000 ton of material must be on schedule for production to start. 22

Three schedules are made up out of material and each of the schedules must contain at least 2500 ton EGL material.

4. Process time from Pickler - Tandem mill The graph once again shows the effective scheduling of the material. This is seen clearly at the bottom graph. It shoes all three lines on top of each other. Reasons for a delay in the scheduling process: Wide steel rolls is scheduled separate from narrow rolls. The wide or narrow rolls must then wait for another schedule that they fit into. Material that is being put in the wrong location. 5. Process time Tandem mill - Annealing This is a quite long process in which the scheduling is done by sophisticated software to ensure even heat distribution in the oven. The cooling period also takes allot of time at the next process. Reasons for a delay in the scheduling process: The previous process is considered a bottleneck and this leads to downtime of the annealing process.

6. Process time Annealing - Temper mill Once the material is on schedule at this process, the process time is quite fast as seen in the graphs. Reasons for a delay in the scheduling process: The only problem for material that needs to be 23

scheduled for this process is the cooling time of material the exits the annealing process. The cooling time for steel rolls before it can be tempered is 6 days.

7. Process time Temper mill - Inspection The material is automatically scheduled by the computer system when the tempering process is completed. Reasons for a delay in the scheduling process: If the steel coils has a defect re testing is necessary Oiled coils cannot be scheduled for the inspection process. The coils must first be scheduled for the washing line to get rid of the oil.

8. Process time Inspection - Galvanizing Galvanising is the last process in the EGL manufacturing process. The scheduling can be done effectively after the inspection process. Reasons for a delay in the scheduling process: The company has scheduling rules for this process that states that only a certain amount of different products can be galvanized per schedule.

9. Process time Galvanizing - Order ready for delivery This graph only portrays the time taken to get the coils packed and ready to be shipped. Scheduling for this process only involves scheduling the galvanized material to be packed. The scheduling is automatically done by computer form the previous process.

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Conclusion
Scheduling is an extremely important part of operations and project management. Different scheduling techniques exist that help companies to sequence time dependant activities in the optimal manner, reducing the amount of wasted time and resources and increasing the profitability, delivery rate and dependability of any company. All methods of scheduling dont work equally well for all companies. It is important to make sure you have done sufficient research before deciding which method to implement. Two methods that exist is forward and backward scheduling. Forward scheduling seems to work better with small fabrication companies, who rely on individual tenders, whilst backward scheduling can be implemented in any type of company, although it leaves less slack time for contingency planning. It is sometimes necessary to implement a combination of the two scheduling methods, when some tasks are resource dependant and other tasks are delivery date dependant. Gantt charts and network diagrams can be used to visually present the schedule. Both techniques are equally effective and easy to implement. If a software program is used to handle scheduling, both tools can be used as some people understand one better than the other. From the case study about the Zuquala Steel Rolling Mill project, we saw that scheduling has a obvious effect on both the efficiency and dependability of a company and it can largely influence a companys profit. The ArcellorMittal case study showed that efficient scheduling can only go so far. There are many factors that can cause delays in a process or task. It is however a good idea to document these cases so that the scheduling process may be improved even further.

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Reference List
Illinois State University. 2005. Operations Management lecture notes: Chapter 15. [Online]. Available: http://faculty.ksu.edu.sa/BaselShadid/Documents/IE-312%20%20%20%20Introduction%20to%20Production%20Planning%20and%20Control/Lecture %20Notes/Class%2018%20-%20Production%20Scheduling.pdf [11 May 2012]
Ref: (http://www.msilearning.org/pub/x470Common/Unit4.pdf) Book: Project Management, A multi-Disciplinary Approach, third revised edition. Herman Steyn, Michael Carruthers , Yvonne duplissis, Deon Kruger, Birgit Kuschke, Ad Sparrius, Stefan van Eck, Krige Visser http://projectmanager.com.au/managing/time/history-project-scheduling/ Case Studies and Management Resources Asia's Most Popular Collection of Management Case Studies http://www.icmrindia.org/courseware/Operations%20Management/Operations%20Man agement-DS17.htm All Rights Reserved:2010 MBA Official http://www.mbaofficial.com/mba-courses/operationsmanagement/what-is-operations-scheduling/ MBA master of business administration Journal of the ESME, Vol. III, No. 1, September 2000 Reprinted with ESME permission. http://www.africantechnology.com/ESME/prjmgmt/Zuquala.htm#Overview Planning

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