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Asst. Prof. Dr. Mahmut Ali GKE, Izmir University of Economics Week 1
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Email: uguruscu2000@yahoo.com
and gorkemsariyer@gmail.com
Asst. Prof. Dr. Mahmut Ali GKE, Izmir University of Economics Week 1
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Course Description
An overview of design, analysis, operation and control of industrial systems; systems analysis of industrial systems and their interactions with other systems in the enterprise; system dynamics analysis of complex interactions among the entities within and without the production system.
Prerequisites : None
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Text Book(s)
Main Textbook: Blanchard, B.S and Fabrycky W.J.,Systems Engineering and Analysis, (4th ed.) : NJ Prentice Hall, 2006. References Vollmann, T.E., W.L. Berry, and D.C. Whybark, Manufacturing Planning and Control Systems, 4th edition, Irwin/McGraw-Hill, 1997. Goldratt, E.M. J. Cox, The Goal - A Process of Ongoing Improvement, North River Press; 2nd Rev edition, 1992.
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Objectives
After ISE 102, the students are expected to learn, 1. What Manufacturing Systems/Industrial Engineering is. 2. how to approach a decision making problem, how to model a problem and make abstractions. 3. to taste the complexity of real life problems and get insights from simple techniques. 4. obtaining familiarity with basic IE/SE terminology.
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Course Contents
In this course, we will discuss, some of the basic SE/IE problems and methodologies. The following is the tentative list of the content of the course;
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Course Grading/Evaluation
Attendance ( 5%) Assignments (10%) Midterm (35%) Final Exam (50%) The final exam will be comprehensive and will cover the entire syllabus material.
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Class Information
Exams will be closed book & closed notes. The Final Exam will be given during the Final Exam Week as scheduled by the university. What is Expected From Students ?
Class Attendance and Participation Significant Effort in Learning Materials Ask Challenging Questions Discuss Knowledge & Ideas with the Class Put Forth Best Effort on All Assignments
Asst. Prof. Dr. Mahmut Ali GKE, Izmir University of Economics Week 1 11 of 52
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Late Assignments
Late Assignments
Assignments are due on the date and at the time designated; otherwise, they are late. Unless the instructor has granted prior permission, late assignments turned in by 5:00 p.m. the day they are due will be graded for credit.
Disclaimer
The instructor reserves the right, when necessary, to alter the grading policy, change examination dates, and modify the syllabus and course content. Modifications will be announced in class. Students are responsible for announced changes.
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Content
Business Organizations Key Functions Manufacturing Systems Manufacturing Systems Engineering Manufacturing vs. Service Operations Operations Management Supply Chain Management
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Business Organizations
Organizations are formed to pursue goals that are achieved more efficiently by the concerted efforts of a group of people than by the individuals working alone.
Business organizations are devoted to producing good and/or providing services.
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What is Production?
Production is the making of something new - either tangible (products) or intangible (services). Modes of Production Primary - Agriculture, cattle breeding, poultry, fishing, mining, refining of metals (e.g., copper, iron, aluminum). Secondary - Manufacturing, construction, energy generation. Tertiary - Services (e.g., transportation, insurance, banking, education)
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Factors of Production
Land - natural resources. Labour - human effort both physical and mental. Capital - financial resources and physical goods for reproduction. Knowledge - becomes an increasingly larger portion of the cost of goods, particularly of information goods; increasing emphasis on intellectual property rights.
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Operations
Marketing
Finance
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Operations
The operation function consist of all activities directly related to producing good and services.
Hence it exists both in manufacturing and assembly operations, which are goodsoriented and in areas such as health care, transportation, food handling and retailing which are primarily service- oriented
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Internal Disturbances A Manufacturing Process is a complex arrangement of physical elements characterized by measurable Products Service Knowledge Return OUTPUTS Customer
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INPUTS
Knowledge Demand
Energy
parameters
Physical Elements Machine Tools Tools Mat Handl. Equ. People
Measurable Parameters e.g., Production Rate Percent on Time Delivery Manufacturing Lead Time Defects per Million Unit Cost
Asst. Prof. Dr. Mahmut Ali GKE, Izmir University of Economics Week 1
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Production system is defined as an organization in the industrial sector for the creation of manufacturing goods and commodities and/or providing services.
*International Institution for Production Engineering Research (CIRP)
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Direct labour cost (Direct labour is the labour of those people who work, either with machines or hand tools directly on the materials converted into finished products) Direct material cost (Direct material are the commodities that enter directly into and become a part of the finished product) Overhead costs
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Indirect labour and material cost Rent on land, equipment and building Maintenance and repairs to buildings and equipment Taxes on plant, equipment, material, inventory Taxes on all wages and salaries of the personnel Insurance on all personnel and physical facilities Depreciation on plant and equipment, etc.
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It fosters an understanding of the whole manufacturing process and studies it as a system in order to fulfil the objective(s) of the company. It incorporates the new manufacturing technologies and methodologies into manufacturing so that manufacturing systems can efficiently support the manufacturing strategy of the company.
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Recall Operations
The operation function consist of all activities directly related to producing good and services.
Hence it exists both in manufacturing and assembly operations, which are goodsoriented and in areas such as health care, transportation, food handling and retailing which are primarily service- oriented
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Provides services
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Good-Service Continuum
Steel production Automobile fabrication
House building
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Read the differences between two types of organizations from the text book or other sources.
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Profit objective. Profit is defined here as the difference between the revenue and the expenses of a firm before taxes and investment. Profit is needed by a firm for its stability and survivability. It provides the firm with the necessary resources to redefine itself. Social objective. A firm should also try to contribute to the welfare of the society. This is particularly expected from a firm of a reasonable size. A firm cannot exist in isolation from the society in which it operates. Thus, social objectives are related to the long term survivability of the firm.
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Both types of productivity can be expressed as physical productivity with output being measured in physical units and as well as value productivity with output being measured in monetary units.
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Outputs
Workforce
Capital Knowledge
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Examples of OM Decisions
Intel needs to construct a new fabrication plant to produce its next generation of computer chips. Where should it build the facility? What should the capacity of the facility be?
United Airlines needs to allocate resources to meet all of its customer demand for air travel next month. How should it assign different-sized aircraft to flight routes? How should it assign crews to flights while adhering to government regulations and union agreements? How should it schedule aircraft maintenance?
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Examples of OM Decisions
Charter Cable needs to plan tomorrows service visits. Which customers will get serviced? How should customer site visits be assigned to service personnel?
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Decision Making
System Design
capacity location arrangement of departments product and service planning acquisition and placement of equipment
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tradeoffs
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S u p p l
C u s
Source
Make
Deliver
i e r
o m e
Information Flow
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Funds Flow
Material Flow
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Systems of Processes
Operations management involves making decisions about the entities and activities within systems of processes Beyond the central transformation process, a business can be seen as a collection of processes to be designed, managed, and improved
Furthermore there is the concept of Supply Chain Management
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