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Introduction to Operations and Supply Management

생산공급관리

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

YUST

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Today’s Outline

Welcome to “Introduction to Operations Management (OM)” course!

ICE-Breaking What is OM? Class overview

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

OM overview

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Welcome! 환영 ! 歡迎 ! 欢迎

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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?

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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?

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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?

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To be OM Expert ???

OM EXPERT!!

? ?

?

Most Popular job positions for MIS students of YUST

- Sales Department- Operation Manager

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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 ?)

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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

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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

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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

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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 modeldevelop proper model to solve the problem!!!to solve the problem!!!

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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

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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 problem We need to know how to solve the problem efficieefficientlyntly 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

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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!!

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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

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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

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

Office: #105, Nursing Science Bldg. Telephone: 2710, 138-0448-1224 E-mail: kimhsQQ@gmail.com 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

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About Class Text book: Operations Management 9e, 2007, by William J. Stev

enson

Class hour: T 3PM~4PM (Room #216), Th 1PM-3PM (Room #116)

Office hours: T 4PM~5PM

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

3 Exams: 50% = 100 %

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

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About Class (continued) 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.

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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 !)

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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

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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

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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.

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What you should do by the next time!

Read Chapter 1 and 2 Play with MS-Excel..

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Good Bye