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8/31/2015

(A Message for Healthcare Professionals)
Shi-Jie (Gary) Chen, Ph.D.
Industrial and Systems Engineering
Northern Illinois University

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Engineers Make Things.
Industrial and Systems Engineers Make Things Better!

ISYE is not design an object, but in a sense design how
a business or industry will be run

ISYE is the study of applying scientific, mathematical
and computer techniques to design, model, analyze and
improve complex systems (i.e., manufacturing, service,
healthcare, transportation, government, etc.)

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8/31/2015 Production Planning and Control Process Planning Market Analysis R&D Engineering Prototyping Analysis Product Design Rapid Prototyping (RP) Computer Aided Process Planning (CAPP) Computer Aided Manufacturing (CAM) Quality Control Computer Aided Quality Control (CAQC) Computer Aided Engineering Computer (CAE) Aided Design (CAD) 3 Business Strategy Finance Strategy Operations Strategy Marketing Strategy Operations Management Input People Plants Parts Materials Customers Processes Output Products Services (Scrap & Waste) Planning and Control Systems Production System 4 2 .

Demand Demand 8/31/2015 Time Time Random Demand Demand Trend Time Seasonality (Cycles) Time Seasonality + Trend 5 Objective Forecasting Time Series Methods Causal Models Trend Cycle No Trend Trend Moving Average Exponential Smoothing WMA DES Regression Analysis TES Linear Regression Seasonal Seasonality Factors 6 3 .

Ft. St. Wt. Ot. Pt ≥ 0 (non negativity) (B) (D) Ot Ut = 0 for 1  t  T (rounding) Ht Ft = 0 for 1  t  T (rounding) 8 4 . Ut. It.8/31/2015 Business Strategy Finance Strategy Operations Strategy Marketing Strategy Operations Management Input People Plants Parts Processes Materials Customers Output Products Services (Scrap & Waste) Planning and Control Systems Production System 7 T Minimize  cH H t  cF Ft  cI I t  cR Pt  cOOt  cUU t  cS St  t 1 Subject to: Wt = Wt-1 + Ht – Ft for 1  t  T (workforce) (A) It = It-1 + Pt + St – Dt for 1  t  T (inventory) Pt = K nt Wt + Ot – Ut for 1  t  T (production) (C) Ht.

8/31/2015 Business Strategy Finance Strategy Operations Strategy Marketing Strategy Operations Management Input People Plants Parts Materials Customers Processes Output Products Services (Scrap & Waste) Planning and Control Systems Production System 9 10 5 .

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8/31/2015 Business Strategy Finance Strategy Operations Strategy Marketing Strategy Operations Management Input People Plants Parts Processes Materials Customers Output Products Services (Scrap & Waste) Planning and Control Systems Production System 13 Computer Aided Engineering (CAE) Market Analysis R&D Convert customer need to function of each part Warren Truck BIW Ctr_Roof_Bow Fr_Roof_Bow UB_Complet_Asm BS_Sub5_RT UB_Dash_Asm BS_Sub5_Lt HydroForm_Sub Roof_Panel Rr_Roof_Bow Dash_Sub3 Underbody_Sub Pnl_Cowl_Bar Frame_Fx Pt2 Pt3 Pt4 BS_Sub1_Rt Pt5 Dash_Sub2 BS_Sub2_Rt Pt18 DashSub4Fx Dash_Sub3_Fx Dash_Sub1 Pt1 UB_Fx Computer Aided Design (CAD) UB_Complet_Fx BS_Sub4_Rt Dash_Sub4 RoofFix Pt15 Dash_Sub1_Fx Pt16 Pt6 Pt17 Pt7 Pt19 BS_Sub5_Fx Pt20 BS_Sub1_Fx Pt8 BS_Sub3_Rt BS_Sub4_Fx Convert to design specification BS_Sub2_Fx Pt21 Pt22 BS_Sub3_Fx Dash_Sub2_Fx Design Principles for quality and productivity 14 7 .

16 8 .000 units: 12.8/31/2015 Cost of having too little Cost of having too much 15 If annual demand λ is 12.000 Option 1 -λ Q Jan. T Dec.

Dec.000 -λ Q TJan.8/31/2015 If annual demand λ is 12.000 Option 2 1.000 units: 12. 17 2K Q h 18 9 .

8/31/2015 Business Strategy Finance Strategy Operations Strategy Marketing Strategy Operations Management Input People Plants Parts Processes Materials Customers Output Products Services (Scrap & Waste) Planning and Control Systems Production System 19 A B G F C E D 20 10 .

8/31/2015 From Task A A  B C D E To F G H  I J K L  From B C D E F GH I J K                                    L Task B B  C  A K  L To J  F  I E D H G     (a) Original binary matrix (unpartitioned) C AK L J F I E D HG }Dependent tasks    } Independent tasks        Interdependent      tasks          Interdependent    tasks        } } (b) Reordered binary matrix (partitioned) 21 Business Strategy Finance Strategy Operations Strategy Marketing Strategy Operations Management Organization A Input People Plants Parts Materials Customers Processes Output Products Services (Scrap & Waste) Planning and Control Systems Production System 22 11 .

8/31/2015 P&G or other manufacturer Jewel or third party DC/WH Plastic Producer Chemical manufacturer (e. Oil Company) Customer wants detergent and goes to Jewel Jewel Supermarket Paper Manufacturer Timber Industry 23 A B G F C E D 24 12 .g.g. Oil Company) Tenneco Packaging Chemical manufacturer (e.

A B C D E To F G H I J K L A B C D E F G H I J K L                                          (a) Original binary matrix (unpartitioned) From Org.8/31/2015 From Org. B C A K L To J F I E D H G B C A K L J F I E D H G  }Dependent organizations     } Independent organizations         Interdependent       organizations           Interdependent     organizations         } } (b) Reordered binary matrix (partitioned) 25 26 13 .

. and monitoring ◦ Human factors engineering (e. pharmacy. intensive care unit.. information flow.8/31/2015  Patient Safety ◦ Medication inventory control and safety stock levels ◦ Medication delivery analysis and improvement including prescribing. ◦ Queuing and patient waiting time analysis ◦ Facilities planning and layout design 28 14 . etc. medical/surgical unit.g. transcribing. administering. etc. human-machine systems. human error.g. auditory and visual systems) ◦ Information systems and technology (e.) 27  Operations Efficiency ◦ Medication supply chain management (e. auto dispensing machine.. external supply chain and internal supply chain) ◦ Systems/process improvement in emergency department. operating rooms. ◦ Systems analysis of patient flow. etc.g. EMR. CPOE. medication flow. work/task flow. dispensing.

demand forecasting. DMAIC cycle for problem solving and continuous improvement) ◦ Statistical process control ◦ Scheduling of nurses..) 29 15 . operating rooms.. patient service quality monitoring.8/31/2015  Quality and Customer Satisfaction ◦ Six sigma and quality management program (e. etc.g. ◦ Capacity planning and resource allocation (e.g. etc. staffing. surgical teams. beds allocation. outpatients.