Introduction to
Operations and Supply Management
생산(공급)관리
Hansoo Kim (金翰秀), Ph.D
Dept. of Management Information Systems, YUST
1
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
2
Welcome! 환영! 歡迎! 欢迎
3
Quiz 1. for ICE Breaking
 77→49 →(?)→18→8, what is the number
to be in (?)
Answer is 36, you know why?
4
Quiz 2. for IB
 O→T→T →F→F→S→S→(?) →N
Which alphabet should be in (?) ?
Answer is “E”, you know why?
5
Quiz 3. 4IB
 12→1→1→1 →2→(?)→3
What is the number to be in (?) ?
Answer is “1”, you know why?
6
To be OM Expert ???
Most Popular job positions for
MIS students of YUST
- Sales Department
- Operation Manager
?
?
OM
EXPERT!!
?
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Business Model
가치
Valu
e
가치
Valu
e
비용
공급자
원자재
(거래처)
가치
Value
부가가치 생성
수입
제품/서비스
Business
활동
노동
급여
Needs
고객
Value = Quality / Price
가치
Value
Value Flow
직원
Money Flow
Creativity + Productivity
Profit (수익)
Revenue
(수입)
Cost (비용)
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
<Jacobs, Chase, “Operations and Supply Management, 2008>
모든 것이 Business다!
가장 보편적인 삶의 형태
비즈니스 모델로 모든 직업적 사회활동이 설명될 수 있다!
가치
Valu
e
가치
Valu
e
사업활동비용
혜택
대상자
영접/변혁
부가”가치” 생성
가치
Value
후원금
후원결과 보고
비영리사업
급여
노동
후원
자
Needs
Value = Quality / Price
가치
Value
직원
누군가의 Service Provider…
그리고 그 댓가로 돈을 받는 모든 경우
비즈니스적 관점에서 비영리사업
(이 경우 고객은 후원자가 된다)
경제적 가치의 의미
Profit (수익)
Revenue
(수입)
경제적 수익의 발생은 기업의 지속성을 가능하게 한다.
수익을 내지 못하는 기업은 결국 파산
Cost (비용)
Profit = Revenue - Cost
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.
이해관계자(Stakeholders)
가치경영
기업경영과 관련된 다양한 이해관계자
의 종합적 가치를 우선하는 경영철학
주주가치경영
고객가치경영
주주가 추구하는 가치를
우선하는 경영철학
고객이 추구하는 가치를
우선하는 경영철학
비즈니스를 통한 참된 삶의 가치관의 실현
인격에 대한 가치관
대인관계에 대한 가치관
업무수행에 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
(
)가치는 (
<켄 엘드레드, Business
Mission>
)영향력을 만들어 낸다
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!
사업의 성공비결
Professionalism
(전문성)
추구하는 보편적
가치를 세우라!
Truth,
Peace, Love
Creativity, Cooperation

Volunteer Service
Integrity
Usefulness
(유용성)
What is C.I.
(Company Impact)?
Excellence
(탁월성)
Tools for
Company Impact
사업이란 “필요”를 채우는 것!
혁신 (Innovation)
사업
(Business)
idea
고객
기술
(Desire)
(Technology)
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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Example: Product Mix
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,
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
and Tables should be produced to make maximum profits?
Wood: 1000 units
Wood: 5 units
Steel: 3 units
Nail: 20 units
$10.00
Wood: 10 units
Steel: 10 units
Nail: 10 units
$20.00
Steel: 300 units
Nail: 1000 units
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3 Key Things in Studying OM
1.
Understanding Problem (问题 상황에 대한



2.
)
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 ↓)
Developing Proper Model (적절한 모델 개발)



3.
理解
Let’s Make it Simple but Meaningful!
Trade off between Reality and Problem solving
Finding good model is important!
Finding Solution Techniques (문제 해결 방법 찾기)


Problem solving techniques, and analysis
Efficient solution vs. Effective solution
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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
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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!!!
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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
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3. Finding Solution Techniques
(문제해결 방법 찾기)
 For the example,
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
 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
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To be OM Expert !!!
Developing
Proper Model
Understanding
Problem
Existing Models:
LP Model,
Queueing Model,
Simulation Model,
PERT/CPM Model
Communicable
with other OM People
Domain Expert
(Studying general
Problems and Working
Experience)
Develop New Models
OM EXPERT!!
Operations Research
(경영과학)
Mathematical Programming,
and Computational
Methodology
Finding Solution
Technique
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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
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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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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.


’98~’04: GRA, HiFiVE Project Leader


Samsung SDS, Seoul, Korea
The Keck Virtual Factory Lab, Georgia Tech. USA
’04~Present: Associate Professor, MIS and CS depts., YUST
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About Class

Text book: Operations Management 9e, 2007, by William J.
Stevenson
생산운영관리 (한글10판) 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/
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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
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the instructor.
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!)



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OM Overview
Class Overview
(Ch. 0)
Operations,
Productivity,
and Strategy
(Ch. 1, 2)
Project
Management
(Ch. 17)
Mgmt of Quality/
Six Sigma Quality
(Ch. 9, 10)
Queueing/
Simulation
(Ch. 18)
Supply Chain
Management
(Ch 11)
Demand Mgmt
Forecasting
(Ch 3)
Aggregated
Planning
(Ch. 13)
Inventory
Management
(Ch. 12)
Strategic
Capacity
Planning
(Ch. 5, 5S)
Location Planning
and Analysis
(Ch. 8)
MRP & ERP
(Ch 14)
Process
Selection/
Facility
Layout; LP
(Ch. 6, 6S)
Exam I
JIT &
Exam II
Lean Mfg System
(Ch. 15)
Term
Project
Final
31
Class Schedule
Week
Contents
Text
Remarks
1
Class overview
2
Introduction to OM; Strategy
Ch 1,2
HW1
3
Project Management
Ch 17
HW2
4
Strategic Capacity Planning for Products and Services
Ch 5, 5s
HW3
5
Process Selection and Facility Layout; LP
Ch 6, 6s
HW4
6
Exam I. ; Management of Quality; Six Sigma Quality
Ch 9, 10
Exam I
7
Queueing and Simulation
Ch 18
HW5
8
Supply Chain Management
Ch 11
HW6
9
Location Planning and Analysis
Ch 8
HW7
10
Lean Manufacturing; JIT
Ch 15
HW8
11
Exam II.
12
Demand Management and Forecasting
Ch 3
HW9
13
Aggregate Production Planning
Ch 13
HW10
14
Inventory Management and Control
Ch 12
HW11
15
MRP and ERP
Ch 14
HW12
16
Project Presentation, Final Exam
Exam II
Final Exam
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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.
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What you should do by the next time!




Wikipedia.com 아이디 만들고 등록하기
교과서 구입
Read Chapter 1 and 2
Play with MS-Excel..
34
Good Bye
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