Planning & Forecasting

Critical Ratio

Definition

Critical ratio is a dispatching priority index calculated as time remaining until due date divided by work time remaining; a ratio below 1.0 means the job is behind schedule, and lower ratios get worked first.

In Practice

Critical ratio dynamically re-ranks shop orders as conditions change. A job due in 10 days with 5 days of work remaining has a ratio of 2.0 and can wait; a job due in 4 days with 8 days of work left is at 0.5 and needs expediting. Because both the numerator and denominator shrink as time passes and operations complete, the rule continuously rebalances priorities without manual intervention.

It is one of the most widely used dispatching rules in job shops precisely because it blends due-date urgency with remaining workload, unlike simpler rules that look at only one.

Frequently Asked Questions

How is critical ratio calculated?

Divide the time remaining until the due date by the work time remaining on the job, including setup, run, and normal interoperation time. A ratio of 1.0 means exactly on schedule, above 1.0 means ahead with slack to spare, and below 1.0 means the job is late-trending and should be prioritized.

What is the difference between critical ratio and slack time?

Slack subtracts work remaining from time remaining, giving an absolute buffer in days; critical ratio divides them, giving a relative index. The ratio scales better across jobs of different sizes — one day of slack is comfortable for a 4-hour job but alarming for a 10-day job.

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