Production & Operations management

MDP408B Dr. Tamer Abdul Mageed Office: building 10000 Office hours: Sunday 11:00 AM 1:00 PM Text book: Production & Operations analysis Steven Nahmias (2009) Grading: Final 80 Midterm 25 Assignments 15 Attendance 5 = 125

Contents
1) 2) 3) 4) Introduction & Definitions Forecasting methods Aggregate planning (intermediate level planning) (linear programming) Inventory models a. Certain demand b. Uncertain demand 5) Push (MRP) & pull systems (Kanban) 6) Operations scheduling 7) Supply chain management

Company Functions
Finance: Providing the financial resources to support the companys operations Marketing and sales: o Deals with customers o Promotion of products o Feedback from the customer, o Sales relation with retailers. o Forecasting the demand requirements in the future. Operations: Using the facilities and resources available in the company to reach the required properties in the final product efficiently.
Finance Marketing & Sales

Operations

Production system

Input Equipment Labor Material Tools Information

Transformation

Output Physical product or service

Customers

Types of manufacturing systems

Make-to-stock o The product is stored in a warehouse until the customer takes it. o The production is done indefinitely and shipped to warehouses. o Usually used for fast consumer products that have static or easily forecasted demand o Operations of manufacturing are continues (e.g. chemical operations) the utilization of the system cannot be done for other types of manufacturing systems Make-to-order o Produce only when the order arrives o Usually for tailored products (e.g. Clothes) Assemble-to-order o Cars are the main type of products

Project
Job Shop Batch
Variety

Mass Continuous
Volume

Generally the bigger the order the more it goes to the Make-to-Stock system; this makes the products cheaper, utilization higher.