Industrial Engineering by Prof. Murat Köksalan - Expertise, Award-Winning Education, and Innovative Solutions

1. Industrial Engineering Murat Köksalan

2. Speaker • Prof. Murat Köksalan • BS (1979), MS(1980), IE, METU • Ph. D. (1983) IE, SUNY at Buffalo • Visiting professor • SUNY at Buffalo (1983-84) • Purdue (90-91; 95-96; 2000-2002) • Helsinki (many occasions) • Paris (June 2004) • Awards: Fulbright (80-83), TÜBİTAK (92), 1st prize INFORMS international case competition (2002), Outstanding core teacher award (Purdue 2001), ...

3. Engineering profession using: • basic and engineering sciences, • intellect and creativity • experience develops solutions for practical problems, and implements and manages them daily.

4. Industrial Engineering • Historically: Construction Machines  Manufacturing and organzations  Human activity • 1700s:Industrial revolution  1900s:Scientific management  1950’s on:Operations research (Mathematical and statistical approaches, Computer aid) • 1970s on:service systems in the developed world  2000s:wide scale (supply chains)

5. Areas of interest • Machines – Materials – Human – Finance – Information systems (Efficiency and productivity) • Interdisciplinary • Complex decision situations (such astransportation, defence, location, production planning) • conflicting objectives (cost-quality-duration, customer-company-environmenteffects)

6. A complex system: Disaster Management System - General

7. Disaster management- Systems Analysis

8. METU IE Department • Founded in 1969. • 21 faculty members • 13 teaching and research assistants • 550 undergraduate, 100 graduate students • 7 IEs are doing double-majors (with MEand Math.)and 26 IEs are doing minors ( with ME, CEng., Econ., Sociology, and Philosophy) • Computer, Work study, and Ergonomicslabs

9. Courses Year 1 Year 2 Year 3 Year 4

10. Examples of Student Projects Problem Definition • Organizing the parking and traffic, • Reducing the cycle time of the loading job, • Regulating customer order periods, and as a result, balancing the monthly workload of the depot • “To design an effective system that reduces the waiting line and eliminates the trucks outside the parking area.”

11. 1 – Parking Area • i.Current Parking area and traffic flow (Trucks) 82 m Capacity = 50-55

12. Proposed Solution 1 – Parking Area 94 m 26 m 85 m Capacity = 85 7 15 15 7 9 15 Yönelme Hareketleri 10 9

13. EKER SÜT Şekil 1:Üretim sistemi

14. Problem Objectives: • By accurately forecasting the milk demand, to eliminate excess amounts and shortages of milk and reducing side products. • Finding the most profitable production plan. • Reducing inventory costs of supplementary material by an efficient Material Requirements Planning (MRP) System

15. Proposed System Şekil 2:Önerilen sistem

16. An Applied Project Location, Distribution, and Capacity ExpansionDecisions in Efes

17. Production and Distribution System

18. Optimal Dağıtım Sistemi Bira Talebi Malt Arz / Kapasite Bira Taşıması Malt Taşıması Fabrika Arz / Kapasite Istanbul 103 103 Afyon Izmir 30 / 30 74 26 Istanbul 24.24 48 Antalya 5.76 50 Konya 50 202/ 220 18.24 / 68 60 Bursa 18.24 Ankara 60 İthalat 102 Kayseri 0 / 20 200 / 200 102 13 İhracat 13

19. Distribution System - Optimized Beer Demand Malt Supply / Capacity Optimized Beer Transportation Optimized Malt Transportation Brewery Supply / Capacity Istanbul 103 103 Afyon Izmir 30 / 30 74 26 Istanbul 24.24 48 Antalya 5.76 50 Konya 50 202/ 220 18.24 / 68 60 Bursa 18.24 Ankara 60 Import 102 Kayseri 0 / 20 200 / 200 102 13 Export 13

20. Annual Shipment Cost ($) Savings over the Current Plan ($) Percentage Savings over the Current Plan Current Plan 11,244,000 - - Optimal Plan with Restrictions 11,160,000 84,000 0.75% Optimal Plan without Restrictions 9,935,000 1,309,000 11.64% Cost Comparison

21. Capacity Expansion Decisions • Multi-period strategic planning problem • Increase in forecasted beer demand over next 3 years • Increase beer production capacity by: • opening a new brewery • expanding the new brewery

22. Capacity Expansion Decisions • Optimize • new brewery location • capacity expansion • malt and beer distribution decisions over the next 3 years

23. Optimal solution • Open a new brewery in Izmir in year 2 • Expand the new brewery in year 3 Solution

24. Size of actual problem 5 beer breweries 2 malt plants 300 distribution points

25. Our Graduates • According to a 2002 survey (N=170)

26. Do IEs do any job? NO, BUT There are job opportunities in all types of organizations (Banks, municipalities, factories, public organizationsetc).

27. Difference from Management dept? • Man. Depts. are part of business schools. The emphasis is in the management of organizations. Commerce, human resources, marketing, and finance are main areas of interest. • IE emphasizes the technical and technological subjects using analysis, measurement, model building, and solution techniques.

28. Opportunities to continue abroad? • Many of our graduates get full funding for graduate study abroad. Below are some: Murat Kaya, 2001, Stanford Çağatay Kepek, 2001, Carnegie Mellon Örsan Özener, 2001, Georgia TechBurcu Balçık, 2001, Washington Barış Bekki, 2001, ArizonaOnur Kaya, 2002, Berkeley Esra Coşar, 2003, BuffaloZeliha Akca, 2002, Lehigh Tolga Aydınlıyım, 2003, Case Western Mehmet Can Demirci, 2003, Pittsburgh Ismail Bakal, 2001, FloridaOğuzhan Karakaş, 2002, Princeton Evin Uzun, 2004, WisconsinBahar Aydoğan, 2002, Worchester Taner Göçmez, 2002, AachenCan Yapan, 2002, Berlin

29. Good luck in your studies Visit: http://www.ie.metu.edu.tr