University of Louisville

1. University of Louisville

2. CELDi (Ind. Eng.) Optimization, Simulation Information Technologies, Engineering Bias Increased Networking Opportunities, Potential For Matching Funds Continuing Education, Logistics Certificate, MS Logistics Engineering U of L LOGISTICS Emphasis LODI Independent Projects Educational Programming, Inter-college Coordination Varied Research in Several Disciplines Increased Resource Base Logistics Initiatives

3. Efforts at Louisville, KY • Louisville is a major manufacturing center and distribution hub that is well placed relative to population and infrastructure. • Ohio River, 3 major interstate highways, 10th busiest freight airport in the world, UPS air hub, ACBL headquarters, Ford assembly plants. • The U of L lists logistics as a top priority. • At the J.B. Speed Scientific School… • New Logistics Center (LODI & CELDi) & Endowed Chairs • New Logistics & Distribution Certificate • Several New Courses • New Business Partners

4. University of Louisville • Current Projects • UL02-02 Fleet Planning, Scheduling and Optimization • UL02-03 Performance Based Logistics in Legacy Systems • UL 03-01 Layout of Common Areas in Shared Warehouse Facilities • UL 03-02 Identifying Logistics Education Needs

5. Fleet Planning, Scheduling and Optimization UL02-02 American Commercial Barge Line LLC Researchers: Gail W. DePuy, G. Don Taylor & Amy Bush Problem Definition: Planning for optimal usage of a boat fleet is a daunting task. Building barge tows with common destinations minimizes downstream handling but adds to barge dwell time. On the other hand, minimizing dwell time leads to excessive downstream handling. Concurrently, it is necessary to utilize company-owned boats whenever possible to reduce sub-contract costs. Objective: Provide an easily solved model to assist in optimizing the assignment of barges to boats on single river segments and to minimize the cost associated with operating fleet areas.

6. Methodology/Benefit UL02-02 Methodology: • Review current methods and literature • Separation of river operations and fleet building problems to make the problem tractable. Concurrent development of a simulation- based evaluation system Targeted Benefit: • Reduce the cost of making fleet assignments while better utilizing fleet boats and better serving customer needs Status: • Complete and in review with ACBL

7. Performance Based Logistics in Legacy Systems UL02-03 Naval Surface Warfare Center, Crane, Indiana Researchers:Gail W. DePuy, John S. Usher, G. Don Taylor, John Ward Problem Definition: NSWC-Crane has a mission of supporting legacy systems in the field. They have existing business case analysis (BCA) tools to support this activity. The question is whether or not existing BCA tools can be used to support systems in a performance based logistics (PBL) environment. Objective: Determine whether or not existing BCA tools can be used to support performance based logistics using a case environment supplied by Crane. Quantify, to the extent possible, the performance of enhanced processes compared to current methods.

8. Methodology/Benefit UL02-03 Methodology: • Understand and evaluate existing BCA and PBL processes in legacy systems • Examine the literature for similar activities • Provide a simplified overview of BCA steps • Determine how to use BCA processes in a PBL environment • Use a Crane specific case study for testing • Quantify the performance of enhanced systems compared to current systems Targeted Benefit: • Increased ability to manage performance based logistics activities in legacy systems Status: • Completed in Sept. 2003

9. UL03-01 Layout of Common Areas in Shared Warehouse Facilities UPS Supply Chain Solutions, Louisville, KY Researchers:Suraj Alexander, Gerald Evans, Jason Hurt, Amarpreet Singh Problem Definition: UPS logistics is heavily involved in value-added warehousing activities at their large facility in Louisville, KY. They have multiple customers in a shared warehouse. The question is how to optimally allocate space to these customers and how to layout shared areas such as aisles and docks. Objective: Provide general methodologies to assist in laying out common areas in shared warehouse settings. Determine how these methodologies are related to decisions regarding where and how to allocate space to customers.

10. UL03-01 Methodology/Benefit Methodology: • Examine the literature in shared warehousing, warehouse layout and 3PL warehousing • Finalize experimental setting and objectives • Develop a general methodology for customer space assignment and layout of common areas • Ensure that layout solutions support efficient slotting and order picking Targeted Benefit: • Increased warehousing efficiency as measured by total operating cost Status: • Completed—Student thesis defended in Summer 2003

11. UL03-02 and RET Identifying Logistics Education Needs Crane-Naval Surface Warfare Center, Crane, IN Researchers:John S. Usher, Gail W. DePuy, G. Don Taylor Problem Definition: Logistics is a key business strategy yet personnel are often poorly prepared for the profession. It is difficult to determine what skills are needed, how best to obtain those skills, how to deliver training, and how to measure progress relative to educational goals. Objective: Provide assistance in determining appropriate logistics skill sets and in developing measurable training programs to help employees to acquire those skills deemed most important.

12. UL03-02 and RET Methodology/Benefit Methodology: Focus on 6 questions: • How do we determine core competencies? • How to we measure preparation and progress? • Who should own logistics training within the organization? • How do we develop the workforce? • How can specific case studies support training while maintaining a generic flavor? • What are the appropriate methods of delivery? Targeted Benefit: A better educated logistics workforce with appropriate and measurable skills.

13. University of Louisville New Projects UL03-03-Activity Based Costing in Repair/Rework Activities for Legacy Systems UL04-UPS-Defining and Engineering a World-Class Tech Room Environment

14. NEW UL03-03 Activity Based Costing in Repair/Rework Activities for Legacy Systems Crane-Naval Surface Warfare Center, Crane, IN Researchers:G. Don Taylor, John S. Usher, Gail W. DePuy Problem Definition: Activity Based Costing Systems have been applied very effectively to understand and control costs in manufacturing settings, but have not been adequately addressed in support of repair/rework activities supporting legacy systems. Given the uncertain nature of demand in that setting, the controls can be more important than ever. Objective: Study the specific needs of this difficult setting and develop tools to assist in implementing activity based cost systems in repair/rework environments.

15. NEW UL03-03 Methodology/Benefit Methodology: • Understand the differences between general manufacturing and repair/rework for legacy systems. • Determine what cost activities and drivers are most critical in this environment. • Determine what differences would exist based on the industry type, i.e. military versus private. • Develop appropriate tools to support these activities. • Test the tools and methods on a Crane-based project. Targeted Benefit: • Methods and tools to support better cost estimating and better cost controls in this challenging environment.

16. NEW UL03-UPS Defining and Engineering a World-Class Tech Room Environment UPS Supply Chain Solutions, Louisville, KY Researchers:Suraj M. Alexander, and TBD Problem Definition: • Currently UPS SCS has a repair tech room in Louisville servicing the most prominent customers in the technology industry. The size of this facility is approximately 5,000 square feet. Although this facility is addressing the current needs for existing business, it is crucial for UPS SCS and related companies to operate in facilities that address the majority of the industry standard requirements. Objective: • Defining and engineering a world-class tech room environment that addresses functional, technological and personnel needs.

17. NEW UL03-UPS Methodology/Benefit Methodology/Requirements: • Develop flexible layouts that allow optimal traveling and processing paths, ergonomic workstations and appropriate wiring. The layouts need to be able to address future needs related to the dynamics of client’s volume and space requirements. The daily interactions between receiving, processing and shipping the product needs to be considered in order to gain the desired production efficiencies. • Design a “clean room” environment that possess the layout flexibility requirements that were discussed above. • Complete an analysis of a high valued parts cage in order to minimize unproductive periods for part retrieval. Different alternatives for retrieving and transporting parts from the parts cage to the areas where the technicians will be operating needs to be presented. Targeted Benefit: • Design a world-class tech room environment that would be suitable for use by UPS in particular, and CELDi members in general.