Rank Order Clustering Algorithm - New Portion in SCMPE
Channel: CA Anuj Jalota - SCMPE - Costing- FM
Date: 2021-03-31

The above is the video of SCMPE - CA FINAL - PAPER 5 - RTP May 2021 issued by ICAI. Complete 5 hours and 15 minutes video - all regular students have got in their lifetime updates. 

This is a video of Q4 and Q5 of RTP, which is one of the new portion issued by ICAI. It pertains to Rank Cluster Algorithm Matrix. It is one of the applications of cellular manufacturing. Complete notes are there on our telegram channel t.me/CAFINAL_AJNEXT.

The above lectures do not have any formulas. It is taught from scratch and even if you do not know how to solve it, you will be able to solve it. 

any doubts can be addressed on our telegram channel: t.me/@ajnext

Steps
1. Production Flow Analysis rests on the basic idea to identify items that are made with the same processes / the same set of equipment. These parts are assembled into a part family and such the same equipment can be grouped (clustering) into a cell to minimize material handling requirements. There are various clustering methods
(i) Part family grouping - Form part families and then group machines into cells
(ii) Machine grouping - Form machine cells based upon similarities in part routing and then allocate parts to cells
(iii) Machine-part grouping - Form part families and machine cells simultaneously.(this is what we are interested in)
2. Various heuristic and exact methods have been developed for grouping/clustering, but the simplest one is binary ordering, also known as rank order clustering or King’s algorithm.
3. Solving Rank order clustering algorithm.
Count Number of ROWS (i) = 5
Count Number of COLUMNS (j) = 5
4. Give Binary Weights (BW) to each Column as 1, 2, 4, 8, 16, 32 starting from the last one. In this case only up to 16 as there are 5 columns
 Calculate Decimal Equivalent (DE) for each row using a total of BW where there is an allocation. Compute the total of BW for each row and based on DE, give ranks (the highest one being 1). Re-arrange the rows based on ranks and make the new matrix. If BE is the same, you can give any rank to any part/machine.
5. Now, Give Binary Weights (BW) to each Row as 1, 2, 4, 8, 16, 32… starting from the last one. In this case only up to 16 as there are 5 rows
 Calculate Decimal Equivalent (DE) for each column using a total of BW where there is an allocation. Compute total of BW for each column
 Give Ranks for each column based on DE and re-arrange the matrix based on ranks.
6. Keep on repeating till their matrix is arranged in RANK ORDER perfectly for rows and columns. 
7. Once done, find the final clusters (clusters are an independent group of machines and parts that have got no correlation with each other and which manufacture parts of a family of parts).
8. Sometimes there might be a cell that may lie in two clusters. Mention that in form of a note. (see the second question)