1. Murat Kaya, Sabancı Üniversitesi 1 MS 401 Production and Service Systems Operations Spring 2009-2010 Introduction Slide Set #1

2. Murat Kaya, Sabancı Üniversitesi 2 Course Contact Information Instructor: Murat Kaya Office: FENS G020 Phone: 483 9622 Email: mkaya@sabanciuniv.edu TAs: Özlem Çoban, Ceyda Sol, Mahir Yıldırım Emre Adnan Işık, Oğuz Özden, Akın Selçuk (Student TAs)

3. Murat Kaya, Sabancı Üniversitesi 3 Course Description Mathematical methods for planning and control in production and distribution systems; forecasting; inventory replenishment; aggregate production planning; master production scheduling; material and capacity requirements planning; just-in-time manufacturing and supply chain management Prerequisite: MS 301 - Deterministic Models in Operations Research

4. Murat Kaya, Sabancı Üniversitesi 4 Textbooks Nahmias, S. Production and Operations Analysis, 5 th or 6 th edition Vollmann, T.E., W.L. Berry, and D.C. Whybark, F.R. Jacobs Manufacturing Planning and Control for Supply Chain Management, 5 th edition Reference Books Silver, E.A., Pyke, D.F., Peterson, R., Inventory Management and Production Planning and Scheduling Stevenson, W. J. Production/Operations Management

5. Murat Kaya, Sabancı Üniversitesi 5 Course Grading / Evaluation Course grading –Quizzes, Assignments (10%) –Project (12%) –Midterm Exam-1 (22%) –Midterm Exam-2 (24%) –Final Exam (comprehensive) (32%) Course attendance highly recommended Exams will be closed book and notes Single make-up exam after the final –the student needs to document the reason to miss the regular exam

6. Murat Kaya, Sabancı Üniversitesi 6 Midterm Information Midterm-1 –March 26 th, Friday, 17:40 -20:00 Midterm-2 –May 7 th, Friday, 17:40 -19:40 Midterm Locations: –FENS Auditorium –FMAN Auditorium

7. Murat Kaya, Sabancı Üniversitesi 7 Course Project You will apply forecasting and inventory management techniques on fictitious data using MS Excel Teams of maximum 3 students (no groups of larger size) Each group will be assigned to a teaching assistant Project due date: May 11 th Do not wait until the last week! Start early…

8. Murat Kaya, Sabancı Üniversitesi Project Calendar and Grading By March 5 th 17:00: E-mail the names of group members (5% of total grade) By April 16 th 17:00: Progress meeting with your assigned TA (25% of total grade). You should bring the following two files with you: –A two-page proposal explaining your proposed solution methodology. –A preliminary MS Excel file that you plan to use. By May 11 th, 17:00: Submit the following to your TA: –MS Excel file containing your model (30% of total grade). –Project report (25% of total grade). Check the format requirements. The report should explain your solution methodology, assumptions and results with references to the MS Excel file you submit. –50% penalty if delivered past 24 hours of the deadline. 100% penalty if later. May 12-13-14 th : Post-submission oral exam by the TAs (15% of total grade) –You may fail in the project (or, in the course) if you cannot explain your project work. 8

9. Murat Kaya, Sabancı Üniversitesi 9 Homework Assignments Lowest graded assignment will be dropped from consideration Late deliveries will NOT be accepted Submit to the assistants, not to me Submit assignments in hand-writing –no print-outs (unless indicated otherwise) –no email attachments Collaboration is permitted provided that: –each student writes the homework on his/her own i.e., do not “copy” from others –the student mentions the names of his/her collaborators in the title of the assignment

10. Murat Kaya, Sabancı Üniversitesi 10 Other Notes Only PARTIAL slide sets will be posted to SU-Course –come to lectures and take notes Obtain the course books as early as possible Quizzes –either in class hours or in recitation hours –will be announced in advance Bring calculators to class sessions Need to follow the recitation section to which you register MS 401 is a strong prerequisite for the FENS Area Elective “MS 454 Supply Chain Analysis”

11. Murat Kaya, Sabancı Üniversitesi 11 Course Goals The objective of MS401 is to prepare students for manufacturing practice and/or research through an advanced treatment of concepts and methods for manufacturing planning and control The outcomes expected from MS401 are: – an understanding of the various subsystems of a modern manufacturing planning and control (MPC) system and their interrelationships – a comprehension of the fundamentals of inventory management – an in-depth understanding of MRP and JIT concepts and techniques – an awareness of current practice and research issues in manufacturing planning and control

12. Murat Kaya, Sabancı Üniversitesi 12 Course Outline NahmiasVBWJ Operations Management Overview1 Forecasting2 Inventory Control and Management4,5 Manufacturing Planning and Control (MPC)1,2 Aggregate Production Planning (APP)3 Master Production Scheduling (MPS)6 Material Requirements Planning (MRP)7,14 Capacity Planning10 Just-in-Time (JIT)9 Supply Chain Management--

13. Murat Kaya, Sabancı Üniversitesi 13 Why Learn MS 401 Material? Highly related to real-world applications Presents the terminology, the jargon of production planning and control Good to know even if you will not work in production area Provides the foundation to understand popular subjects such as supply chain management –will be mentioned at the end of the course Good for your summer internship

14. Murat Kaya, Sabancı Üniversitesi 14 Operations Management

15. Murat Kaya, Sabancı Üniversitesi 15 Operations Management Operations management: Managing all activities related to producing –goods (manufacturing, assembly) our focus in this course –services (healthcare, transportation, retailing) “Operations” is a function of the firm –main functions: operations, finance, marketing –if the firm were a car, operations would be its engine

16. Murat Kaya, Sabancı Üniversitesi 16 Scope of Operations Management Imagine that you have just invented “iPod”. You want to produce and sell your new product… What kind of issues you need to think about?

17. Murat Kaya, Sabancı Üniversitesi 17 Why Study Operations ? A company’s operations function is either a competitive weapon or a corporate millstone. It is seldom neutral. Skinner 1980s: Japanese invasion of the US market –weapon: operations strategy –American firms focused mostly on marketing & finance Understanding operations management gives YOU a competitive advantage

18. Murat Kaya, Sabancı Üniversitesi 18 Operations Strategy Firms compete along… Operations Management: Implementation of operations strategy to achieve competitive advantage Operations Strategy: Positioning the firm along these dimensions

19. Murat Kaya, Sabancı Üniversitesi 19 Why Consider Manufacturing? In the US: Manufacturing is in decline Turkey has been moving towards a being a “manufacturing base” for the European Union