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MS 401 Production and Service Systems Operations Spring 2009-2010

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MS 401 Production and Service Systems Operations Spring 2009-2010. Introduction Slide Set #1. Instructor:. Murat Kaya. Office:. FENS G020. Phone:. 483 9 622. E mail:. mkaya Course Contact Information. TAs: Özlem Çoban, Ceyda Sol, Mahir Yıldırım

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MS 401

Production and Service Systems Operations

Spring 2009-2010


Slide Set #1

course contact information


Murat Kaya




483 9622


Course Contact Information

TAs: Özlem Çoban, Ceyda Sol, Mahir Yıldırım

Emre Adnan Işık, Oğuz Özden, Akın Selçuk (Student TAs)

course description
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

  • 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

course grading evaluation
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
midterm information
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
course project
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…
project calendar and grading
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.
homework assignments
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
other notes
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”
course goals
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
why learn ms 401 material
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
operations management1
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
scope of operations management
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?
why study operations
Why Study Operations ?
  • A company’s operations function is either a competitive weapon or a corporate millstone. It is seldom neutral.


  • 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
operations strategy
Operations Strategy
  • Firms compete along…

Operations Strategy: Positioning the firm along these dimensions

Operations Management: Implementation of operations strategy to achieve competitive advantage

why consider manufacturing
Why Consider Manufacturing?
  • In the US: Manufacturing is in decline
  • Turkey has been moving towards a being a “manufacturing base” for the European Union