Operations Management: "Critical Ratio Method " Presented by Fatima Zahra

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Operations Management

“Critical Ratio Method “

Presented By
Fatima Zahra
Talha-bin-sajid bukhari
Ayesha Masood
Critical Ratio:
 The critical ratio method assigns a priority that is
a continually updated ratio between the time
remaining until due date and the required job
processing time. When used in conjunction with
other jobs waiting to be processed, it is a relative
measure of critical job order priority.
Continue…
 The critical ratio gives the highest priority to jobs that
must be done to maintain a predetermined shipping
schedule.

 Jobs that are falling behind a shipping schedule


receive a ratio of less than 1…

 While a job receiving a critical ratio greater than 1 is


ahead of schedule and is less critical.

 A job receiving a critical ratio score of 1.0 is precisely


on schedule.
Calculating Critical Ratio:
 The critical ratio is calculated by dividing the
remaining time until the date due by the
remaining process time using the following
formula:

 critical ratio = remaining time / remaining


process time
= (Due Date - Today`s date) / days of
remaining process time
Example:
 On day 16, four jobs, A, B, C, and D, are on order for
Ferguson`s Kitchen Installation Service:
 Jobs on Order
Continue…
 Using this data, the critical ratios and priority
order are computed.

 Job C has a critical ratio less than one indicating it has


fallen behind schedule. Therefore, it gets the highest
priority. Job D is exactly on schedule, but jobs B and A have
respectively higher critical ratios indicating they have some
slack time. This gives them respectively lower priorities.
Continue…
Critical Ratio
Critical ratio:
 looks at time remaining between current
time and due date
 considers processing time as a percentage
of remaining time
 CR = 1.0 means just enough time
 CR > 1 .0 more than enough time
 CR < 1.0 not enough time
Example: Critical Ratio
 T=0 Process Critical
Job Time Due Ratio
1 6 18 3.0
2 2 6 3.0
3 3 9 3.0
4 4 11 2.75
5 5 8 1.6
Job 5 is done first.
Example: Critical Ratio
 T=5 Process Due - Critical
Job Time Current Ratio
1 6 13 2.17
2 2 1 0.5
3 3 4 1.33
4 4 6 1.5

Job 2 is done second.


Example: Critical Ratio
 T=7 Process Due - Critical
Job Time Current Ratio
1 6 11 1.84
3 3 2 0.67
4 4 4 1.0

Job 3 is done third.


Example: Critical Ratio
 T = 10 Process Due - Critical
Job Time Current Ratio
1 6 8 1.84
4 4 1 0.25

Job 4 is done fourth, and job 1 is last.


Critical Ratio Solution
Job TimeDone Due Tardy
55 5 8 0
22 7 6 1
3 3 10 9 1
4 4 14 11 3
1 6 20 18 2
Total 56 7
Mean flow time = 56 / 5 = 11.2
Average tardiness = 7 / 5 = 1.4
Number tardy = 4
Max Tardy 3

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