MS 401 Production and Service Systems Operations Spring 2009-2010

1. MS 401 Production and Service Systems Operations Spring 2009-2010 Introduction Slide Set #1

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

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. Textbooks • Nahmias, S. Production and Operations Analysis, 5th or 6th edition • Vollmann, T.E., W.L. Berry, and D.C. Whybark, F.R. Jacobs Manufacturing Planning and Controlfor Supply Chain Management, 5th 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. 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. Midterm Information • Midterm-1 • March 26th, Friday, 17:40 -20:00 • Midterm-2 • May 7th , Friday, 17:40 -19:40 • Midterm Locations: • FENS Auditorium • FMAN Auditorium

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 11th • Do not wait until the last week! Start early…

8. Project Calendar and Grading • By March 5th 17:00: E-mail the names of group members (5% of total grade) • By April 16th 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 11th, 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 12-13-14th: 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.

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. 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. 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. Course Outline

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. Operations Management

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. 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. 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. Operations Strategy • Firms compete along… Operations Strategy: Positioning the firm along these dimensions Operations Management: Implementation of operations strategy to achieve competitive advantage

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