Transcript IE3104: Supply Chain Modeling: Manufacturing & Warehousing

IE3104: Supply Chain Modeling:
Manufacturing & Warehousing
Spring 2006
Instructor: Spyros Reveliotis
e-mail: [email protected]
homepage: www.isye.gatech.edu/~spyros
“Course Logistics”
• TA: TBA
• Office Hours: MWF 1-2pm
• Grading policy:
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Homework: 20%
Midterm I: 20% (Tentative Date: Wed., February 15)
Midterm II: 20% (Tentative Date: Wed., March 29)
Final: 30% (Date: TBA)
Class Participation: 10%
Exams closed-book, with 2 pages of notes per midterm exam and 6
pages for the final
– No make-up exams and incompletes.
• Reading Materials:
– Course Textbook: S. Nahmias, “Production and Operations
Analysis”, 5th Ed. McGraw Hill / IRWIN
– Course slides and any other material posted at my homepage or
circulated in class.
Course Objectives
(What this course is all about?)
• How to design and operate manufacturing and
warehousing facilities (and more…)
– A conceptual description and classification of modern production
and warehousing environments and their operation
– An identification of the major issues to be addressed during the
design, planning and control of the production and warehousing
activity
– Decomposition of the overall production planning and control
problem to a number of sub-problems and the development of
quantitative methodologies for addressing the arising sub-problems
– Emerging trends, including the implications of a globalized and
internet-based economy
Organizational Operations
• Organization / Production System: A transformation
process (physical, locational, physiological, intellectual,
etc.)
Inputs
•Materials
•Capital
•Labor
•Manag. Res.
Outputs
Organization
•Goods
•Services
• Supply or Value Chain / Network:
Stage 1
Stage 2
Stage 4
Suppliers
Stage 3
Stage 5
Customers
Productivity:
Basic Organizational Performance Measure
Productivity = Value produced / Input used
= Output / (Labor + Material + Capital + Energy + Miscellaneous)
Remarks:
• Typically both the numerator and the denominator are measured in $$$. If the
output corresponds to actual sales, then productivity measures both
effectiveness (doing the right thing) and efficiency (in the right way).
•From an economic standpoint, major emphasis is placed on the annual
percentage change (hopefully increase) of productivity.
• For the entire US economy, the annual increase in productivity is higher than
2.5% (38% of this increase is due to capital improvements, 10% to labor
improvements and 52% to management improvements).
•For the Chinese economy, this number has been more than 6% lately!
Major Productivity Variables and their
contribution to productivity increase
• Labor
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Better basic education
Better diet
Better social infrastructure like transportation and sanitation
Better labor utilization and motivation
• Capital
– Steady and well-planned investments on equipment and its timely
maintenance
– Research & Development
– Controlling of the cost of capital
• Management
– Exploitation of new (information) technologies
– Utilization of accumulated knowledge
– Education
Knowledge
Society
Operations Management (OM)
Definition: The study and improvement / optimization of the set of
activities that create goods and services in an organization.
Typical issues addressed:
• Service and product selection and design
• Quality Management
• Process and capacity design
• Facility design
• Facility Location
• Human resources and job design
• Inventory management
• Production planning and control
• Maintenance
• Supply-chain management
The major functional units of a modern
organization
Strategic Planning:
defining the organization’s mission and
the required/perceived core competencies
Production/
Operations:
product/service
creation
Finance/
Accounting:
monitoring of
the organization
cash-flows
Marketing:
demand
generation
and
order taking
Examples (borrowed from Heizer & Render)
Reading Assignment
• Chapter 1: Sections 1.1-1.3