IES 303 Engineering Management

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IES 303 Engineering Management Cost Analysis
Course Introduction Week 1 Nov 10, 2005

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Instructors Contact Info

• Instructor Dr. Karndee Prichanont
• Office Hours Wednesday 9-12, or by appointment
• Email karndee_at_siit.tu.ac.th
• Phone [phone] ext 2109
• Office IE Office, room 316

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Class Material

• Main Textbooks
• Krajewski, L. J. and L. P. Ritzman, Operations
  Management Strategy and Analysis, Prentice Hall,
  7/2005
• Supplements
• Blank, L. and A. Tarquin, Engineering Economy,
  McGraw-Hill, 6/2005.
• Russell, R. S. and B. W. Taylor III, Operations
  Management, Prentice Hall, 4/2003
• Any other Operations Management related textbook
• Current articles and journals

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Course Webpage

• www.siit.tu.ac.th/karndee/course/ies303.html
• Class web page contains
• Class announcement
• Class presentations in pdf format
• Additional handout and case studies
• Assignments and solutions
• QA to assignments and class material
• Additional reading materials and links to related
  articles
• Individual grades and scores
• Inform me ASAP if you have questions with current
  grade / grading system

If you wish not to have your grades and scores
appear on the web, please let me know now.
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Grading Policies
Tentative score distribution
Tentative grading criterion
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Class Policies Classroom Behaviors

• Be on time. The door may be locked as the session
  begins
• Minimize class interruption
• Turn-off your cell phone and pager
• No bathroom break during class session (except
  those rare medical emergency cases)
• Food and drink are ok

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Class Policies - Participation

• Attendance is randomly checked
• Less than 70 of checked attendance no final
  exam
• Attendance is a minimum requirement for
  participation
• Read and analyze the assigned case study before
  the class begins
• Only quality and constructive comments/discussions
  will receive participation score
• Active participation in class discussion is
  anticipated
• If participation is not active enough, I will
  call on your name to answer my question

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Class Policies Quizzes and Exams

• Pop Quiz
• Pop quiz is randomly scheduled. No advanced
  notification.
• Approximately 5 pop quizzes during the semester.
• Close book/note. Calculator may be needed.
• Strictly no borrowing
• Cheating will result a minus of full score of
  that quiz.
• Exams
• Open book/note.
• Dictionary is allowed. Calculator is a must.
• Strictly no borrowing

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Class Policies Make up policies

• Makeup exams and quizzes will be given only if a
  student has a legitimate, documented need and if
  the instructor is notified in advance.
• Legitimate reasons for needing a makeup include
  (but are not limited to) health problems, family
  emergencies, direct conflicts with other exams or
  classes, and school-related trips.  

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Course Objectives

• To understand the role of operations management
  in the overall business strategy of the firm.
• To identify and evaluate the key factors and the
  interdependence of these factors in the design of
  effective operating systems.
• To identify and evaluate a range of tools
  appropriate for analysis of operating systems of
  the firm.
• To understand the application of operations
  management policies and techniques to the service
  sector as well as manufacturing firms

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Course OverviewTransformation Process
Feedback
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Course Overview Forecasting

• Predicting Future Event
• Mathematical relationship between demands and
  relevant factors
• Statistical techniques based on historical data

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Course Overview Capacity Planning

• How much capacity to provide
• Size of capacity changes
• Handling excess demand
• Hiring/firing workers
• Need for new facilities

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Course Overview Inventory Management

• Keep enough inventory
• Meet customer demand and be cost effective
• Inventory
• Raw material
• Purchased parts
• Semi-finished products
• Etc.
• Economic Order Quantity (EOQ)

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Course Overview Material Requirement Planning

• Computerized inventory control production
  planning system
• Schedules component items when they are needed -
  no earlier and no later

Clipboard
Top clip (1) Bottom clip (1)
Pivot (1) Spring (1)
Rivets (2)
Finished clipboard Pressboard (1)
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Course Overview Facilities

• Facility Layout
• Arrangement of machines, departments, storage
  areas,
• Ensure a smooth flow of work, material, people,
  and information
• Process layout
• Product layout

Milling Department
Lathe Department
Drilling Department
M
M
D
D
D
D
M
M
D
D
D
D
G
G
G
P
G
G
G
P
Painting Department
Grinding Department
A
A
A
Receiving and Shipping
Assembly
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Course Overview Quality

• Statistical Process Control
• Take periodic samples from process
• Plot sample points on control chart
• Determine if process is within limits
• Prevent quality problems

Process average
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How can we eliminate these wastes?
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How can we eliminate these wastes?
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How can we eliminate these wastes?
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How can we eliminate these wastes?
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Next week

• Read Chapters 1 2
• Prepare for class discussions and attempt to
  answer the posted questions
• Cases Starbucks pg56 442
• Case Cappuccino Express .pdf