Center for Engineering Logistics and Distribution (CELDi)

1. CELDi Center for Engineering Logistics and Distribution (CELDi) National Science Foundation sponsored Industry/University Cooperative Research Center (I/UCRC) Welcome to the CELDi Research Conference April 29, 2003 hosted by Oklahoma State University

2. CELDi Center for Engineering Logistics and Distribution (CELDi) National Science Foundation sponsored Industry/University Cooperative Research Center (I/UCRC) • Overview of CELDi • Technical Review • Poster Presentations • Luncheon and “Best Poster Presentation” • “What Keeps You Awake at Night?” Industry/Academic Breakout Sessions 1. Logistics Professionals of Tomorrow, Dr. G. Don Taylor 2. Hurdles to Internationalization, Mr. Don Stuart 3. LIFE after ERP, Dr. Manjunath Kamath 4. Financial Drivers of Supply Chains & Metrics, Dr. Ricki Ingalls • Overview of New Projects • Reception

3. I/UCRC Purpose • Develop partnership among academe, industry and other organizations • Promote research of mutual interest • Contribute to the Nation’s research infrastructure • Enhance the intellectual capacity of the engineering workforce through research and education • Mission • The vision for the center is to provide integrated solutions to logistics problems, through modeling, analysis and intelligent-systems technologies.

4. CELDi Knowledge Create through research Disseminate through Apply through practice education

5. University of Arkansas Material Handling Intelligent Systems Distribution Logistics Network Design University of Oklahoma Shop Floor Logistics Value-chain Integration Transportation Information Technology Fleet Supportability Field Service Logistics Reliability Modeling Planning Systems Strategic Logistics Issues -Intelligent Material Handling -Fleet Field Support -Intermodal Transportation -Shop Floor Logistics -Intelligent Transportation & Distribution -Reverse Logistics -Logistics Network Modeling -Planning Algorithms Oklahoma State University University of Louisville Center Organization • Partnerships • ITaL (OU) • LODI (UL) • MBTC (UA) • OTC (OU,OSU) • SCMRC (UA) • CASI (OU,OSU) • MCEC (OSU)

6. Organization • Center Headquarters • Center for Engineering Logistics & Distribution • University of Arkansas • Dept. of Industrial Engineering • 4207 Bell Engineering Center • Fayetteville, AR 72701 • Tel (479) 575-2124 • Fax (479) 575-8431 • http://celdi.ineg.uark.edu

7. CELDi Organization University of Arkansas Dr. John R. English Executive Director, CELDi Professor and Chair, Industrial Engineering 4207 Bell Engineering Center University of Arkansas Fayetteville, AR 72701 479-575-6029 • FAX 479-575-8431 jre@uark.edu Dr. Earnest Fant Associate Director, CELDi University of Arkansas 4207 Bell Engineering Center University of Arkansas Fayetteville, AR 72701 479-575-3940 FAX 479-575-8431 ewf@engr.uark.edu University of Louisville Dr. G. Don Taylor Director, CELDi Professor, Industrial Engineering Mary Lee and George F. Duthie Chair in Engineering Logistics Speed Scientific School University of Louisville Louisville, KY 40292 502-852-2741• FAX 502-852-5633 don.taylor@louisville.edu Dr. John Usher Associate Director, CELDi Speed Scientific School University of Louisville Louisville, KY 40292 502-852-6342 usher@louisville.edu

8. CELDi Organization Oklahoma State University Dr. Ricki Ingalls Director, CELDi Assoc. Professor Oklahoma State University 322 Engineering North Stillwater OK 74078 405-744-9129• FAX 405-744-4654 ingalls@okstate.edu Dr. Manjunath Kamath Associate Director, CELDi Oklahoma State University 322 Engineering North Stillwater OK 74078 mkamath@okstate.edu University of Oklahoma Dr. Thomas L. Landers Director, CELDi Associate Dean, College of Engineering Morris R. Pitman Professor University of Oklahoma Carson Engr. Center, 202 W. Boyd, Room 107 Norman, OK 73019-1022 405-325-0986 • FAX 405-325-7508 landers@ou.edu Dr. B. Mustafa Pulat Associate Director, CELDi University of Oklahoma 761 Asp Norman Ok 73019 405-325-4532 bpulat@ou.edu

9. CELDi Organization Center Evaluator: Dr. Tom Jones 479-575-6128 • twjones@comp.uark.edu Industrial Advisory Board, Chairman: Mr. Don E. Stuart Global Concepts, Inc. 900 S.Shackleford Rd.,Ste 412 Little Rock, AR 72211 800-459-1168 FAX 501-312-0180 dstuart@gclogistics.com • Potential Research Partners: • University of Florida, Dr. Joseph Geunes • University of Minnesota, Dr. Saifallah Benjaafar • Lehigh University, Dr. David Wu

10. Strategic Areas Supply Chain Management Supply Chain Design Material Handling/Shop Floor Logistics Warehousing & Inventory Control Reverse Logistics Transportation Intermodal operations Intelligent systems Vehicle/Bridge ITS Data mining/fusion Trucking Waterways Enterprise Performance Scalable Systems Techniques Human Factors/ Ergonomics Robotics/Automation Quality/Metrics OR/Simulation/Optimization Supportability Information Technology Sensors and Communications Management CORECOMPETENCIES

11. Membership Levels • Membership • Full Members (more than 50 employees) -- $50K/yr • Partners in research • Curriculum involvement • Associate Members (50 employees or less) -- $25K/yr • Smaller projects if only one member involved • May participate in research through affiliation with a full member or another associate member • Curriculum involvement • Affiliate Members -- $5K/yr • Companies desiring affiliation with CELDi • No research project • Attend meetings

12. Involvement Problem definition Data Sponsorship of a student Host study team visits Biannual meetings Annual contribution Feedback Benefits Networking National/International Students/Faculty/UA resources Student recruiting Advanced logistics education, research and practice Access to all research Case studies Influence courses & research Tangible return on investment Matching funds 10X documented return on investment Benefits to students Membership Benefits

13. Coursework enhancement Collaboration with industry Utilization of leading-edge techniques Named research assistantships Possible publications Employment opportunities Benefits to Students

14. Membership in CELDi • Benefits >> Costs • Effective technology transfer • Timely exposure to emerging technology • Opportunities to hire world class experts • Partnership in an elite group of world leaders • Leaders in Logistics • Faculty/Student/Sponsor interaction • Student recruiting • Progressive problem solutions and techniques

15. Center for Engineering Logistics and Distribution • Members include corporations and government agencies • CELDi provides creative, leading edge solutions to real-world problems • Members collaborate with faculty and student researchers and each other • Employment of a systems perspective and an engineering approach

16. CELDi Membership • Introductions ABF Freight System Inc.* - UA Air Force Research Laboratories (AFRL) - UA Altech Services, Inc.* - OU American Commercial Barge Lines (ACBL) - UL Burlington Northern/Santa Fe Railway* - OU Cargill Inc.* - UA Cobb-Vantress* - UA ConAgra Frozen Foods - UA ConocoPhillips - OSU Crane - Naval Surface Warfare Ctr. - UL Defense Logistics Agency (DLA) - UA Federal Aviation Admin. Logistics Center - OU Global Concepts Inc. - UA Halliburton* - OSU Naval Supply Systems Command - UA Northrop Grumman Info. Tech. - UA Oklahoma City Air Logistics Center - OU Okla. Dept. of Transportation (ODOT) - OSU Okla. Dept. of Transportation (ODOT) - OU Pine Bluff Arsenal - UA Raytheon* - UA Science Applications Int’l Corp. (SAIC)* - OU Smith Tool - OSU Tyson Foods, Inc.* - UA UPS - Supply Chain Solutions - UL U. S. Army Defense Ammunition Center - OU United States Postal Service (USPS) - UL Vanderlande* - UL Wal-Mart Stores, Inc. – UA Yellow Freight System* - UA *Affiliate (non-voting member)

17. CELDi We appreciate you!

18. CELDi Technical Review

19. University of Arkansas

20. University of Arkansas Current Projects UA03- AFRL (7) ITAR Regulations UA03-DLA Analysis of Military Processing Center Operations UA03-NAVSUP Readiness Based Customer Wait Time Sparing within Manugistics Advanced Planning System UA03-PBA Incorporating Lean Thinking into Grenade Line Maintenance

21. Air Force Research Laboratoriesand Northrop Grumman Info. Tech. Projects (7) subject to International Traffic in Arms Regulations (ITAR)

22. UA03-DLA Analysis of Material Processing Center Operations • Examine the strategic, tactical, and operational effectiveness of the design and operation of material processing centers (MPC) • Evaluate the center’s necessities for material handling equipment and systems • Improve the efficiency of supply support to military customers during peacetime and reliability during war-time

23. UA03-DLA Research Strategy for the MPC Analysis • Observation of the Susquehana, PA Defense DC and the Norfolk, VA Naval Base MPC • Document current operating policies and procedures at DDNV MPC site and within supporting DDC operations • Examine the effectiveness of pre-sort strategies and other process re-engineering changes within the MPC support operations • Recommend process improvement changes for the operation based on measurable performance criteria.

24. UA03-DLA Current Focus of the 2002-2003 CELDi/DLA Project • Investigation of the DSS/LCAV data interchange potential • Generation of simulation model for the current and proposed systems • Analysis of appropriate material handling equipment applications • Assessment of current MPC re-engineering proposals

25. Q Ao R UA03-NAVSUP Readiness Based Customer-Wait -Time Sparing within a Commercial Advanced Planning System • Assess 3 COTS sparing solutions for the F/A-18 data set, comparing and contrasting solutions with results of an earlier study. • Explore and assess inventory segmentation strategies and clustering algorithms for use with the Navy’s wholesale and retail inventories. Principal Investigator: Manuel D. Rossetti, Ph.D., P.E. Co-Principal Investigator: Erhan Kutanoglu, Ph.D. CELDi Research Assistant: Nancy Sloan, M.S.O.R. Graduate Research Assistant: Ashish Achlerkar

26. UA03-NAVSUP Outcomes • Less risk to continue with 2 competitors for SMART 2.5 • Continue with segmentation strategies and clustering algorithms for setting stock policies for the Navy’s inventory system

27. UA03-PBA UA03-PBA Applying Lean Concepts to Grenade Line Maintenance Sponsor Pine Bluff Arsenal Principal Investigator C. Richard Cassady, Ph.D., P.E. Co-Principal Investigator Earnest W. Fant, Ph.D., P.E. Graduate Assistant Pingjian Yu Undergraduate Assistants Kellie Schneider DeAnne Starks Objective: • To apply the concepts of lean maintenance to the procedures and practices of the Pine Bluff Arsenal’s grenade line by implementing lean inventory policies focused on reducing transportation and waiting times associated with the location of maintenance tools and/or spare parts

28. CELDi UA03-PBA Methodology/Benefit • Methodology: • Data collection of Spare Parts Location and Maintenance Practices Survey will help identify opportunities to eliminate the seven forms of waste: • Overproduction Waiting • Transportation Process waste • Inventory Motion • Defects • Implementation of Lean Inventory Policies will eliminate unnecessary inventory • and indicate areas to reduce transportation and waiting times. • Targeted Benefits: • Waste reduction • Production cost reduction • Inventory reduction • Labor reduction • Higher profits

29. University of Louisville

30. 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

31. 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

32. University of Louisville • Current Projects • UL02-01 Seeking Cost Effective Solutions for Flat Mail Preparation • UL02-02 Power Forecasting and Fleet Location Optimization • UL02-03 Management of Performance Based Logistics

33. Improving Flat Mail Preparation at USPS UL02-01 United States Postal Service Researchers: G. Don Taylor, John S. Usher, and Jamie Little Problem Definition: Postal automation programs, in terms of sortation and material handling systems, have been so successful that flat mail preparation areas cannot keep pace. The current methods of preparing flat mail for induction to automated systems is very labor intensive. Objective: To examine the possible alternative flat mail preparation systems, both procedural and physical, that would reduce the costs associated with present, labor intensive mail preparation systems.

34. Methodology/Benefit UL02-01 Methodology: • Review current methods and literature • Visit multiple USPS facilities, major mailers & printers • Enumerate options for procedural and physical changes • Make final recommendations based on efficacy and cost Targeted Benefit: Reduce the cost associated with preparing flat mail for automated systems without violating basic system constraints

35. Fleet Planning, Scheduling and Optimization UL02-02 American Commercial Barge Line LLC Researchers: G. Don Taylor, Gail W. DePuy & 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.

36. Methodology/Benefit UL02-02 Methodology: • Review current methods and literature • Separation of river operations and fleet building problems to make the problem tractable (Current funding in review at MBTC to extend the coordination effort) • 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

37. 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.

38. 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

39. Concluding Remarks • Louisville is one of the world’s great logistics cities • The University of Louisville lists logistics as one of two major thrust areas for the entire university • The four-university partnership brings synergies & opportunities for member companies—each campus brings unique skills • Multi-campus research projects are encouraged • CELDi research is pragmatic, cost-effective and often leads to a quantifiable payback

40. University of Oklahoma

41. University of Oklahoma Current Projects OU02-02 Material Handling and Distribution Study OU02-FAALC NAS Stock Vulnerabilities – Phase II

42. Material Handling and Distribution for MRO Facilities OU02-02 Oklahoma City Air Logistics Center (ALC), Aircraft and Commodities Directorates, Tinker AFB Researchers: M. Court, D. Baldwin, and M. Pulat (University of Oklahoma), Randall Kirk (Global Concepts) Problem Definition: Develop an enhanced material handling and distribution system including the technology insertions required to support a maintenance / repair / overhaul (MRO) facility relying on stochastic bills of materials Objective: Focus on volume utilization and material flow requirements for workload driven by reverse logistics, stochastic bills of materials and diverse volumetrics- with zero tolerance for damage in handling/storage

43. Material Handling and Distribution for MRO Facilities OU02-02 Methodology: • Best Practices Review • Complete System Analysis • System Documentation • Gap Analysis • Technology Insertion • Requirements • Space Utilization and Design • Ergonomically enhanced Material Handling and Storage Equipment • Warehouse Layout and Control Targeted Benefits: Efficient Material Tracking, Handling and Control System Improved Space Utilization

44. OU02-FAALC NAS Stock/Process Vulnerabilities – Phase II FAA Logistics Center Researchers: B.M. Pulat, Matt Vanderpol, Lauren Henshaw (University of Oklahoma) Randall Kirk (Global Concepts, Inc.) Problem Definition: Review the NAS (National Air Space) inventory for stock, and the operational order fulfillment process for process vulnerability Objective: Identify stock/process vulnerabilities and strategies for managing both.

45. OU02-FAALC NAS Stock/Process Vulnerabilities – Phase II Methodology: • Refine NSN Listing • Reduce NSN Criticalities • Detailed Management/Costing Realized/Targeted Benefits: • Increased Accuracy of Critical NSNs • Enhanced Management Options

46. Oklahoma State University

47. Oklahoma State University Current Projects OSU02-01 Manufacturing and Distribution Strategies for Volatile and Cyclical Customer Demand – Smith Tool OSU02-02 Success Factors in eProcurement and eTrading in the Petroleum Industry – ConocoPhillips OSU02-03 Freight Movement Model Development for Oklahoma – Okla. Dept. of Transportation

48. Manufacturing and Distribution Strategies for Volatile and Cyclical Customer Demand Researcher: Ricki G. Ingalls, Ph.D. OSU02-01 • Problem: • Investigate and develop business management models that will develop manufacturing and distribution strategies in markets with volatile and cyclical customer demand. • Objective: • Develop a business strategy model that optimizes resources during periods of volatile and cyclical demand • Methodology: • The project is broken into three major tasks: the literature search, model development, and the final project report and delivery. • Targeted Benefit: • The model will be applicable across industries where business cycles are becoming shorter and customer demand is becoming more volatile.

49. Success Factors in eProcurement and eTrading in the Petroleum IndustryResearcher: Ricki G. Ingalls, Ph.D. OSU02-02 • Problem: • Electronic procurement and trading are emerging industries whose value proposition is uncertain. • Objective: • Investigate and determine the success factors for electronic procurement and electronic trading • Methodology: • Determining the list of marketplaces to research • Identifying the success factors for these marketplaces • Determining the value propositions for these marketplaces • Apply the finding to the petroleum industry. • Targeted Benefit: • A comprehensive look at eProcurement and eTrading to help determine the value of companies investing in such marketplaces.

50. Freight Movement Model Dev. for OklahomaResearchers: Ricki G. Ingalls, Ph.D., Manjunath Kamath, Ph.D. (OSU), P. Simin Pulat, Ph.D., Guoqiang Shen, Ph.D. (OU) OSU02-03 • Problem: • The freight movement in the state of Oklahoma is not well understood and no model exists for infrastructure planning. • Objective: • Develop a proposal for a Freight Movement Model for the state of Oklahoma. • Methodology: • Review existing freight movement models, available software, and databases. • Understand the advantages and disadvantages of the models and databases available for freight movement. • Develop the research plan. • Targeted Benefit: • The methodology for developing a freight movement model will be available to all of the members.