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1 Introduction to Operations and Supply Management 생생 ( 생생 ) 생생 Hansoo Kim ( 생생생 ), Ph.D Dept. of Management Information Systems, YUST

1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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Page 1: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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Introduction to Operations and Supply Management

생산 ( 공급 ) 관리

Hansoo Kim ( 金翰秀 ), Ph.DDept. of Management Information Systems,

YUST

Page 2: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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오늘의 개요 Welcome to “Introduction to Operations

Management (OM)” course! ICE-Breaking What is Business? What is OM? Class overview

Purpose of the class Expected effects of education About Instructor Rules of the class

OM overview

Page 3: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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Welcome! 환영 ! 歡迎 ! 欢迎

Page 4: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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Quiz 1. for ICE Breaking

77→49 →(?)→18→8, what is the number to be in (?)

Answer is 36, you know why?Answer is 36, you know why?

Page 5: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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Quiz 2. for IB

O→T→T →F→F→S→S→(?) →N Which alphabet should be in (?) ?

Answer is “E”, you know why?Answer is “E”, you know why?

Page 6: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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Quiz 3. 4IB

12→1→1→1 →2→(?)→3 What is the number to be in (?) ?

Answer is “1”, you know why?Answer is “1”, you know why?

Page 7: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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To be OM Expert ???

OM EXPERT!!

? ?

?

Most Popular job positions for MIS students of YUST

- Sales Department- Operation Manager

Page 8: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

Business Model

Cost ( 비용 )

Profit ( 수익 )Revenue( 수입 )

경제적 가치

가치Value

비경제적 가치

Value( 가치 ) : Ratio of quality to price paid. Competitive “Happiness” is being able to increase quality and reduce price while maintaining or improving profit margins<Jacobs, Chase, “Operations and Supply Management, 2008>

공급자( 거래처 )

공급자( 거래처 )

Business활동

Business활동

고객고객원자재 제품 /서비스

부가가치 생성

직원직원

노동급여

수입비용Needs

가치Valu

e

가치Valu

e

Value = Quality / Price

가치Valu

e

가치Valu

e

Money Flow

Value Flow

Creativity + Productivity

Page 9: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

모든 것이 Business 다 ! 비즈니스 모델로 모든 직업적 사회활동이 설명될 수 있다 !

혜택대상자혜택

대상자 비영리사업비영리사업 후원자

후원자

영접 /변혁 후원결과 보고

부가” 가치” 생성

직원직원

노동급여

후원금 사업활동비용Needs

가치Valu

e

가치Valu

e

Value = Quality / Price

가치Valu

e

가치Valu

e

비즈니스적 관점에서 비영리사업( 이 경우 고객은 후원자가 된다 )

가장 보편적인 삶의 형태

누군가의 Service Provider… 그리고 그 댓가로 돈을 받는 모든 경우

Page 10: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

경제적 가치의 의미

Cost ( 비용 )

Profit ( 수익 )

Revenue( 수입 )

경제적 수익의 발생은 기업의 지속성을 가능하게 한다 .

수익을 내지 못하는 기업은 결국 파산

Profit = Revenue - Cost

Page 11: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

비즈니스 : “ 가치” 를 만들어 내는 Framework

• 가치는 가치 판단 기준에 의해 평가될 수 있다 .• 같은 사건에 대해서 , 판단 기준에 따라 좋은

가치를 유의한 가치를 갖을수도 있고 , 그렇지 않을 수도 있다 .

• 그렇기 때문에 가치경영은 어떤 가치기준을 가지고 그 가치를 극대화 하는가에 따라 그 내용과 결과가 달라질 수 있다 .

주주가치경영 고객가치경영

이해관계자 (Stakeholders)가치경영

주주가 추구하는 가치를 우선하는 경영철학

고객이 추구하는 가치를 우선하는 경영철학

기업경영과 관련된 다양한 이해관계자의 종합적 가치를 우선하는

경영철학

Page 12: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

비즈니스를 통한 참된 삶의 가치관의 실현

인격에 대한 가치관 대인관계에 대한 가치관 업무수행에 대한 가치관

진실함정직 / 솔직함성실 / 근면

신용신의 / 책임절도 / 청결긍정적 태도

겸손봉사정신

존중 / 배려정의 / 공평호의 / 친절관용 / 신뢰

책임감친화감

봉사정신우수성유용성탁월성

< 켄 엘드레드 , Business Mission>

기업활동을 통해 드러낼 수 있는 올바른 “가치” 관

직업과 비즈니스의 궁극적인 목적은 단순히 경제적인 필요를 채우거나 , 자아실현을 위한 것이 아니라 , 그것을 뛰어넘어 인류의 진정한 가치를

드러내는 행위를 통하여 인류사회에 공헌하기 위한 것이다 !

( ) 가치는 ( ) 영향력을 만들어 낸다

Page 13: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

사업의 성공비결

ProfessionalismProfessionalism(( 전문성전문성 ))

Truth, Peace, LoveCreativity,

Cooperation

Volunteer ServiceIntegrity

ExcellenceExcellence(( 탁월성탁월성 ))

UsefulnessUsefulness(( 유용성유용성 ))

Tools for Tools for Company ImpactCompany Impact

추구하는 보편적 가치를 세우라 !

What is C.I. (Company Impact)?

Page 14: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

사업이란 “필요” 를 채우는 것 !

사업(Business)

사업(Business)

고객(Desire)

고객(Desire)

기술(Technolo

gy)

기술(Technolo

gy)

혁신 (Innovation)

idea

Page 15: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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What is OM( 生产管理 )? Operations Management (OM)

the set of activities that creates value( 价值 ) in the form of goods( 商品 ) and services( 服务 ) by transforming inputs into outputs

What activities ( 어떤 活动 이 있는가 )? How to evaluate ( 어떻게 评价 할 것인가 )?

We need evaluation measures – Productivity!!( 生产性 )What are the better activities?( 어떤 活动을 어떻게 하면 生产性이 좋을까 ?)

Page 16: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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Example: Product Mix

Smart furnitureSmart furniture company manufactures two products, Chair and Table.The profit of selling a Chair is $10.00 and that of Table is $20.00. To makea Chair, it requires 5 units of wood, 3 units of steel and 20 units of nails( 螺丝 ), and to make a Table, it requires 10 units of wood, 10 units of steel, and 10 units of nail. Suppose that the Smart furnitureSmart furniture has 1000 units of wood, 300 units of steel, and 1000 units of nail, how many Chairs and Tables should be produced to make maximum profitsto make maximum profits?

$10.00 $20.00

Wood: 5 unitsSteel: 3 unitsNail: 20 units

Wood: 10 unitsSteel: 10 unitsNail: 10 units

Wood: 1000 units

Steel: 300 units

Nail: 1000 units

Page 18: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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3 Key Things in Studying OM

1. Understanding Problem ( 问题 상황에 대한 理解 ) What kind of problems are there in an Operation? Is there any way to control (or decision making)? What is the evaluation measure? (profit ↑ cost ↓)

2. Developing Proper Model ( 적절한 모델 개발 ) Let’s Make it Simple but Meaningful! Trade off between Reality and Problem solving Finding good model is important!

3. Finding Solution Techniques ( 문제 해결 방법 찾기 ) Problem solving techniques, and analysis Efficient solution vs. Effective solution

Page 19: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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1. Understanding Problem( 문제에 대한 이해 )

From the example, Need a decision rule for product mix

How many chairs? How many tables? Why it is important?

Depending on the result of product mix, total profit are different!!

Number of chairs and tables can be controlled Evaluation measure

Profit maximization

We need to find a way to decide number of We need to find a way to decide number of chairs and tables to chairs and tables to maximize total profitmaximize total profit

Page 20: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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2. Developing Proper Model( 적절한 모델 개발 )

From the example, Make it simple but meaningful

Selling price depends on its selling unit. Assumption: No discount! Why? Realistic Model => Difficult to analysis but better

resultSimple Model => Easy to analysis but worse result

We should We should develop proper develop proper modelmodel to solve the problem!!! to solve the problem!!!

Page 21: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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Mathematical Model Decision Variables:

X1:= Number of Chairs, X2:=Number of Tables

Objective Function: Max Z= 10 X1 + 20 X2

Conditions (or Constraints) S.t. 5 X1 + 10 X2 1000 3 X1 + 10 X2 300 20X1 + 10 X2 1000

X1 0, and X2 0

Page 22: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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3. Finding Solution Techniques( 문제해결 방법 찾기 )

For the example, How to solve the problem? Solution techniques Two types of solution techniques

Effective ( 效果的 ) (or Optimal, Exact) Solution The best solution but difficult to find it

Efficient ( 效率的 ) Solution Not best solution but easier to find it

We need to know how to solve the We need to know how to solve the problem problem efficientlyefficiently or or effectivelyeffectively

Max Z= 10 X1 + 20 X2S.t. 5 X1 + 10 X2 1000 3 X1 + 10 X2 300 20X1 + 10 X2 1000 X1 0, and X2 0

Page 23: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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To be OM Expert !!!

UnderstandingProblem

DevelopingProper Model

Finding SolutionTechnique

Communicable with other OM People

Domain Expert(Studying general

Problems and Working Experience)

Operations Research(경영과학)

Mathematical Programming, and Computational

Methodology

Existing Models:LP Model,

Queueing Model, Simulation Model,PERT/CPM Model

Develop New Models

OM EXPERT!!

Page 24: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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Purpose of the class By: introducing basic knowledge of operations

management and control with various quantitative and qualitative techniques Types of OM activities Types of problems Types of solution techniques

To: Improve the abilities to analyze the problem occurred in OM fields, to present the efficient and effective solutions for

the problems in the modern production and logistics systems

Page 25: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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After finishing this course… YOU CAN

The most important effects You can talk with other OM people You can identify the types of problem in OM You can understand the basic principles of

problem-solving techniques.

Other important effects You can become an Expert having “Intuition”

Knowledge, Responsibility, and Professionalism

Page 26: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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Page 27: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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About Instructor… Professor Kim, Hansoo, Ph.D ( 김한수 , 金翰秀 )

Office: #501, R&D Center. Telephone: 138-0448-1224 E-mail: [email protected] Educational Background:

’87~’91 BS, Hanyang Univ. IE (Industrial Engineering) ’91~’93 MS, KAIST, IE ’98~’04 MS, PH.D, Georgia Institute of Technology, ISyE

(Industrial and Systems Engineering) Work Experiences

’93~’98: System Engineer, Simulation Consultant in CIM dept. Samsung SDS, Seoul, Korea

’98~’04: GRA, HiFiVE Project Leader The Keck Virtual Factory Lab, Georgia Tech. USA

’04~Present: Associate Professor, MIS and CS depts., YUST

Page 28: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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About Class Text book: Operations Management 9e, 2007, by

William J. Stevenson생산운영관리 ( 한글 10 판 ) 강종열 외 공저중국어 판 사용가능

Class hour:

Office hours:

Evaluation: Quiz or attendance: 10% + HW: 20% +

Project: 20% + 2 or 3 Exams: 50% = 100 %

Class Webpage: http://yustOM.wikispaces.com/

Page 29: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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About Class (continued) 3 Absences -> “F” : No Question! 3 No Homework -> “D or F” : No Question! Reading Assignments: Students should read the reading

assignments before they come to the class. Class discussion will proceed with the assumption that students have read the assignment.

Individual Assignments: Students will need to turn in the homework each week.

Team Project: Students will work as a team of 4 or 5. Team members will work on the cases together and will take turns to present their work. Each team is required to submit a written report prior to the assigned class.

The lecture notes and other materials will be uploaded on the class homepage. Before attending class, please check class homepage!!!

No late homework. If you have proper excuse for late homework, you can turn in the homework only after talking with the instructor.

Page 30: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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2 Class rules you should keep! (2 가지 수업규칙 )

Don’t do harmful actions to yourself( 자신을 해치는 행위는 용납되지 않는다 !)

Don’t do harmful actions to others( 남을 해치는 행동은 용납되지 않는다 !)

Page 31: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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OM Overview

Class Overview(Ch. 0)

Project Management

(Ch. 17)

Strategic Capacity Planning(Ch. 5, 5S)

Operations, Productivity, and Strategy

(Ch. 1, 2)

Mgmt of Quality/Six Sigma Quality

(Ch. 9, 10)

Supply Chain Management

(Ch 11)

Location Planning and Analysis

(Ch. 8)

Demand MgmtForecasting

(Ch 3)

Inventory Management

(Ch. 12)

Aggregated Planning

(Ch. 13)

Queueing/ Simulation

(Ch. 18)

MRP & ERP (Ch 14)

JIT & Lean Mfg System

(Ch. 15)

Term Project

Process Selection/

Facility Layout; LP(Ch. 6, 6S)

Exam I

Exam II

Final

Page 32: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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Class ScheduleWeek Contents Text Remarks

1 Class overview

2 Introduction to OM; Strategy Ch 1,2 HW1

3 Project Management Ch 17 HW2

4 Strategic Capacity Planning for Products and Services Ch 5, 5s HW3

5 Process Selection and Facility Layout; LP Ch 6, 6s HW4

6 Exam I. ; Management of Quality; Six Sigma Quality Ch 9, 10 Exam I

7 Queueing and Simulation Ch 18 HW5

8 Supply Chain Management Ch 11 HW6

9 Location Planning and Analysis Ch 8 HW7

10 Lean Manufacturing; JIT Ch 15 HW8

11 Exam II. Exam II

12 Demand Management and Forecasting Ch 3 HW9

13 Aggregate Production Planning Ch 13 HW10

14 Inventory Management and Control Ch 12 HW11

15 MRP and ERP Ch 14 HW12

16 Project Presentation, Final Exam Final Exam

Page 33: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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Who are you?

Guideline What is your name? Department? Your future plan

After graduation… Study abroad? Or Working? Long term plan

What you want to ask for this class? Bad E.g.) Less HW? or Easy Test? Good E.g.) More project, more case study, or

about way of communication etc.

Page 34: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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What you should do by the next time!

Wikipedia.com 아이디 만들고 등록하기 교과서 구입 Read Chapter 1 and 2 Play with MS-Excel..

Page 35: 1 Introduction to Operations and Supply Management 생산 ( 공급 ) 관리 Hansoo Kim ( 金翰秀 ), Ph.D Dept. of Management Information Systems, YUST

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Good Bye