What are the most effective techniques for sequencing and prioritizing production orders?

1 First-come, first-served (FCFS)

This is the simplest and most intuitive technique, where production orders are processed in the order they are received. It is easy to implement and follow, and it ensures fairness and transparency for the customers. However, it may not be optimal for minimizing the total production time, cost, or inventory, as it does not consider the characteristics or urgency of each order. It may also result in long waiting times and poor customer service for some orders.

2 Earliest due date (EDD)

This technique prioritizes production orders based on their due dates, with the earliest ones being processed first. It is useful for meeting delivery deadlines and avoiding late penalties or customer dissatisfaction. However, it may not be efficient for maximizing the utilization of resources or minimizing the setup times, as it does not account for the processing times or the similarities of each order. It may also lead to overproduction or underproduction, depending on the demand fluctuations.

3 Shortest processing time (SPT)

This technique prioritizes production orders based on their processing times, with the shortest ones being processed first. It is effective for reducing the average flow time, which is the time it takes for an order to complete the production process. It also reduces the work-in-progress inventory and the idle time of resources. However, it may not be suitable for meeting delivery deadlines or satisfying customer preferences, as it does not consider the due dates or the importance of each order. It may also create bottlenecks or imbalance in the production system.

4 Critical ratio (CR)

This technique prioritizes production orders based on their critical ratio, which is the ratio of the remaining time to the due date to the remaining processing time. It is a dynamic and flexible technique, as it adjusts the priority of each order according to the changes in the production status and the demand situation. It aims to balance the objectives of meeting delivery deadlines and minimizing flow time. However, it may not be easy to calculate and implement, as it requires accurate and updated information on the processing times and the due dates. It may also be sensitive to errors or uncertainties in the data.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?