Professional Documents
Culture Documents
Rakesh Nagi
Department of Industrial Engineering
University at Bualo - State University of New York
nagi@bualo.edu
Course Outline
Introduction
Overview of Production and Operations Strategy
Forecasting
Aggregate Planning
Inventory Control (Known and Uncertain Demand)
Supply Chain Management
Materials Requirements Planning, Just-In-Time
Operations Scheduling
Project Scheduling
Recent Advances
c Rakesh Nagi
University at Bualo - IE
1. INTRODUCTION
1. Introduction
1. Introduction
1. Manufacturing/Production Function
=)
Raw materials
Resources
Workers Machines =)
Factory
Finished Goods
2. Functional areas of a rm
2.1. Marketing
2.2. Finance
2.3. Production
3. Dierence between manufacturing and production?
c Rakesh Nagi
University at Bualo - IE
1. Introduction
Inventory
Production Scheduling and Control
Equipment Selection and Replacement
Maintenance
Size and Location of Plants
Plant Layout and Structure
Quality Control and Inspection
Trac and Material Handling
Methods
c Rakesh Nagi
University at Bualo - IE
1. Introduction
c Rakesh Nagi
University at Bualo - IE
1. Introduction
1. Time horizon:
Short
Medium
Long
2. Focus
Process Technologies
Market Demands (Price, LT, reliability)
Production Volume
Quality Level
c Rakesh Nagi
University at Bualo - IE
1. Introduction
Manufacturing tasks
3. Evaluation
Cost
Quality
Protability
Customer Satisfaction
4. Consistency
Professionalism
Product proliferation
Manufacturing tasks should be made explicit
c Rakesh Nagi
University at Bualo - IE
Demand Pattern
Cost for new facility
New process technology
Competitor's strategy
c Rakesh Nagi
University at Bualo - IE
10
x = K=(c1 c2)
c Rakesh Nagi
University at Bualo - IE
11
c Rakesh Nagi
Make
k + c2x
Buy
c1x
12
University at Bualo - IE
Cost
Maximize:
Market share
Utilization
c Rakesh Nagi
University at Bualo - IE
13
D
x
r
f (y )
C (x)
=
=
=
=
=
e rx =
C (x) =
=
=
c Rakesh Nagi
University at Bualo - IE
14
Demand / Capacity
xD
Ct
x
t
c Rakesh Nagi
t+x
University at Bualo - IE
Time
15
c Rakesh Nagi
University at Bualo - IE
16
f (y) = kya
a : Indicator of Ratio of incremental to average cost of unit plant capacity
a < 1; a = 0:6 in general
k(xD)a
C (x) =
1 e rx
To nd x that minimizes C (x) set
c Rakesh Nagi
dC (x)
dx
= 0
University at Bualo - IE
17
dC (x)
e rx)axa 1 xa(re
a (1
= kD
dx
(1 e rx)2
a(1 e rx)
x=
re rx
rx)
=0
a = erxrx 1
Read:
1. Features one needs to consider in capacity planning
2. Issues in plant location
c Rakesh Nagi
University at Bualo - IE
18
Respectively,
Labor hrs/unit
vs # units
Marginal production cost vs # units
Y (u)
Y (u)
a
b
:
=
:
:
au
thunit
University at Bualo - IE
20
Y (2u)
Y (u)
a(2u)
au
= 2 b = 0:80
b ln 2 = ln(0:8)
:8)
b = ln(0
ln(2) = 0:3219
=
c Rakesh Nagi
University at Bualo - IE
21
c Rakesh Nagi
University at Bualo - IE
23
c Rakesh Nagi
low med
printers
autos
! Volume
large
chemicals
" complexity
University at Bualo - IE
of process
24