Introduction to Operations and
Supply Management
생산공급관리
Hansoo Kim (金翰秀), Ph.D
Dept. of Management Information Systems,
YUST
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Today’s Outline
 Welcome to “Introduction to Operations
Management (OM)” course!
 ICE-Breaking
 What is OM?
 Class overview




Purpose of the class
Expected effects of education
About Instructor
Rules of the class
 OM overview
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Welcome! 환영! 歡迎! 欢迎
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Quiz 1. for ICE Breaking
 77→49 →(?)→18→8, what is the number
to be in (?)
Answer is 36, you know why?
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Quiz 2. for IB
 O→T→T →F→F→S→S→(?) →N
Which alphabet should be in (?) ?
Answer is “E”, you know why?
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Quiz 3. 4IB
 12→1→1→1 →2→(?)→3
What is the number to be in (?) ?
Answer is “1”, you know why?
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To be OM Expert ???
Most Popular job
positions for
MIS students of YUST
- Sales Department
- Operation Manager
?
?
OM
EXPERT!!
?
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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: #105, Nursing Science Bldg.
 Telephone: 2710, 138-0448-1224
 E-mail: kimhsQQ@gmail.com
 Educational Background:



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’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.

Samsung SDS, Seoul, Korea

The Keck Virtual Factory Lab, Georgia Tech. USA
’98~’04: GRA, HiFiVE Project Leader
’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

Class hour: T 3PM~4PM (Room #216),
Th 1PM-3PM (Room #116)

Office hours: T 4PM~5PM
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Evaluation:
 Quiz or attendance: 10% + HW: 20% + Project:
20% + 3 Exams: 50% = 100 %

Class Webpage: http://yustOM.wikispaces.com/
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About Class (continued)
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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 the instructor.
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2 Class rules you should keep! (2 가지
수업규칙)
 Don’t do harmful actions to yourself
(자신을 해치는 행위는 용납되지 않는다!)
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

 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
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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
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Project Presentation, Final Exam
Exam II
Final Exam
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Who are you?
Guideline
 What is your name?
 Department?
 Your future plan
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
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!
 Read Chapter 1 and 2
 Play with MS-Excel..
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Good Bye
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