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

2. 2 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

3. 3 Welcome! 환영 ! 歡迎 ! 欢迎

4. 4 Quiz 1. for ICE Breaking  77 → 49 → (?) → 18 → 8, what is the number to be in (?) Answer is 36, you know why?

5. 5 Quiz 2. for IB  O → T → T → F → F → S → S → (?) → N Which alphabet should be in (?) ? Answer is “E”, you know why?

6. 6 Quiz 3. 4IB  12 → 1 → 1 → 1 → 2 → (?) → 3 What is the number to be in (?) ? Answer is “1”, you know why?

7. 7 To be OM Expert ??? Most Popular job positions for MIS students of YUST - Sales Department - Operation Manager

8. Business Model Cost ( 비용 ) Profit ( 수익 ) Revenue ( 수입 ) 경제적 가치 가치 Valu e 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 공급자 ( 거래처 ) Business 활동 Business 활동 고객 원자재제품 / 서비스 부가가치 생성 직원 노동 급여 수입 비용 Needs 가치 Valu e Value = Quality / Price 가치 Valu e Money Flow Value Flow Creativity + Productivity

9. 모든 것이 Business 다 ! 비즈니스 모델로 모든 직업적 사회활동이 설명될 수 있다 ! 혜택 대상자 비영리사업 후원 자 영접 / 변혁 후원결과 보고 부가 ” 가치 ” 생성 직원 노동 급여 후원금 사업활동비용 Needs 가치 Valu e Value = Quality / Price 가치 Valu e 비즈니스적 관점에서 비영리사업 ( 이 경우 고객은 후원자가 된다 ) 가장 보편적인 삶의 형태 누군가의 Service Provider… 그리고 그 댓가로 돈을 받는 모든 경우

10. 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

11. 비즈니스 : “ 가치 ” 를 만들어 내는 Framework 가치는 가치 판단 기준에 의해 평가될 수 있다. 같은 사건에 대해서, 판단 기준에 따라 좋은 가 치를 유의한 가치를 갖을수도 있고, 그렇지 않 을 수도 있다. 그렇기 때문에 가치경영은 어떤 가치기준을 가 지고 그 가치를 극대화 하는가에 따라 그 내용 과 결과가 달라질 수 있다. 주주가치경영고객가치경영 이해관계자 (Stakeholders) 가치경영 주주가 추구하는 가치를 우선하는 경영철학 고객이 추구하는 가치를 우선하는 경영철학 기업경영과 관련된 다양한 이해관계자 의 종합적 가치를 우선하는 경영철학

12. 비즈니스를 통한 참된 삶의 가치관의 실현 인격에 대한 가치관대인관계에 대한 가치관업무수행에 대한 가치관 진실함 정직 / 솔직함 성실 / 근면 신용 신의 / 책임 절도 / 청결 긍정적 태도 겸손 봉사정신 존중 / 배려 정의 / 공평 호의 / 친절 관용 / 신뢰 책임감 친화감 봉사정신 우수성 유용성 탁월성 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

13. 사업의 성공비결  Professionalism ( 전문성 ) Truth, Peace, Love Creativity, Cooperation Volunteer Service Integrity Excellence ( 탁월성 ) Usefulness ( 유용성 ) Tools for Company Impact 추구하는 보편적 가치를 세우라 ! What is C.I. (Company Impact)?

14. 사업이란 “ 필요 ” 를 채우는 것 ! 사업 (Business) 사업 (Business) 고객 (Desire) 고객 (Desire) 기술 (Technology) 기술 (Technology) 혁신 (Innovation) idea

15. 15 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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17. 17 Example: Product Mix Smart furniture Smart 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 make a 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, Smart furniture and 10 units of nail. Suppose that the Smart furniture has 1000 units of wood, 300 units of steel, and 1000 units of nail, how many Chairs to make maximum profits and Tables should be produced to make maximum profits? $10.00$20.00 Wood: 5 units Steel: 3 units Nail: 20 units Wood: 10 units Steel: 10 units Nail: 10 units Wood: 1000 units Steel: 300 units Nail: 1000 units

18. 18 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

19. 19 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 chairs and tables to maximize total profit

20. 20 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 result Simple Model => Easy to analysis but worse result  We should develop proper model to solve the problem!!!

21. 21 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

22. 22 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 efficiently or effectively Max Z= 10 X1 + 20 X2 S.t. 5 X1 + 10 X2  1000 3 X1 + 10 X2  300 20X1 + 10 X2  1000 X1  0, and X2  0

23. 23 To be OM Expert !!!

24. 24 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

25. 25 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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27. 27 About Instructor…  Professor Kim, Hansoo, Ph.D ( 김한수, 金翰秀 ) Office: #501, R&D Center. Telephone: 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

28. 28 About Class  Text book: Operations Management 9e, 2007, by William J. Stevenson 생산운영관리 ( 한글 10 판 ) 강종열 외 공저 중국어 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/http://yustOM.wikispaces.com/

29. 29 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.

30. 30 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 !)

31. 31 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 Mgmt Forecasting (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

32. 32 Class Schedule WeekContentsTextRemarks 1Class overview 2Introduction to OM; StrategyCh 1,2HW1 3Project ManagementCh 17HW2 4Strategic Capacity Planning for Products and ServicesCh 5, 5sHW3 5Process Selection and Facility Layout; LPCh 6, 6sHW4 6Exam I. ; Management of Quality; Six Sigma QualityCh 9, 10Exam I 7Queueing and SimulationCh 18HW5 8Supply Chain ManagementCh 11HW6 9Location Planning and AnalysisCh 8HW7 10Lean Manufacturing; JITCh 15HW8 11Exam II.Exam II 12Demand Management and ForecastingCh 3HW9 13Aggregate Production PlanningCh 13HW10 14Inventory Management and ControlCh 12HW11 15MRP and ERPCh 14HW12 16Project Presentation, Final ExamFinal Exam

33. 33 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.

34. 34 What you should do by the next time!  Wikipedia.com 아이디 만들고 등록하기  교과서 구입  Read Chapter 1 and 2  Play with MS-Excel..

35. 35 Good Bye