2008-2009ANNUAL REPORT

Welcome to the 2008-2009 Annual Report of the DCMME and GSCMI centers at the Krannert School of Management at Purdue University. This report celebrates the achievements of the students, faculty, staff and industry partners as we continue to strengthen our role in understanding, teaching and communicating the challenges in managing manufacturing organizations, service systems and global supply chains. What a year this has been! We started off in August 2008 releasing the center developed Gear & Fulcrum Report (sponsored by center partner Katz, Sapper & Miller) that surveyed Indiana companies to understand their global supply chain competitiveness. The results showed that firms were focused on high gas prices and the weak dollar. High performing firms reported that they had moved to larger lot shipments, lower turns and focused on exports. By September, industry discussions had moved to focus on the credit crunch, lower gas prices and the strengthening dollar. Our Fall Operations Conference thus focused on presentations by a combination of large OEMs, such as center sponsors Kimberley Clark and Terex, and smaller companies around Indiana, such as Ander-son Tool and Engineering and Personix. Each of these companies described how their companies have innovated to manage their supply chains and thrive. We also started a discussion, with Professors Stewart and Bagnoli in attendance, to summarize some early ideas regarding how credit availability might affect the need to address supply chain financing issues to guarantee supplier survival. By the end of October 2008, the previous year’s Gear and Fulcrum Report’s best practices had changed to deal with the new environment– lower gas prices, a stronger dollar and an impending manufacturing downturn. The 2009 Spring Global Supply Chain Management conference focused on “Putting the Pieces Together” – and was an appropriate representation of the manu-facturing environment early this year (and through the start of the summer). The world’s largest manufacturing organization, General Motors, is undergoing a massive transformation, along with its entire supply base. Coupled with the global downturn in demand, managing the global supply chain is indeed challenging. Our keynote speaker, Margaret Bishop, exhorted students to expand the word global. Our speak-ers from Rolls-Royce and Eaton Corp. (center sponsor companies) got us thinking about managing risk. Prof. Kodzi from the University of Ghana talked about improv-ing the supply chain for malaria drug distribution in Ghana and the student case competition got students to deal with the global supply chain in today’s environment. Students, faculty and staff also had a large number of exciting engagements under way in 2008-9 – from focused projects for companies, to plant visits, to global internships to faculty research projects. This Annual report provides a quick over-view of the entire year in brief. I hope you enjoy your visual journey through a year

at the center. Thanks to all the company sponsors and managers, Managing Director Mary Pilotte, Administrative Assistant VaLinda McBride, center Graduate Assistants, student volunteers, faculty and the Department Head and Dean at the School of Management at Purdue for helping us make this happen. Please do contact us with ideas, opportunities or suggestions to collaborate as we con-tinue our education and research focus on manufacturing and global supply chain management.Thank you,

Ananth V IyerDirector, DCMME and GSCMISusan Bulkeley Butler Chair in Operations Management

Director’s Report

2008

-200

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Center Mission ........... 1

Center Financials ......... 2

Partnership Appreciation ............... 4

Fall Operations Conference ................. 6

Global Internship ....... 10

Center Projects .......... 12

Center in the News ..... 14

Industry Visit Series .... 16 Spring Conference ...... 18

Student Academics ..... 24

Student Involvement ... 29

Faculty Interests ........ 32

How can your

company be

part of our

mission?

Let’s begin a

partnership

today!

GSCMI and DCMME focus on engagement with companies in problem identification and study, teaching material development, pro-fessional development for interested companies and students, and sharing of best practices through meetings, conferences and correspondence between faculty and industry partners.

Building on the Krannert School of Management’s outstanding reputation in the areas of operations manage-ment and logistics, the centers are ideally poised to help our corporate partners anticipate global supply chain and manufacturing manage-ment issues before they arise, diagnose current problems, and develop best-practice solutions to the real-life challenges businesses face.

In alignment with Purdue’s learning, discovery and engagement philoso-phy, and through dialogue with our partners, we have identified several goals that our members achieve through partnership.

VisibilityCompetition is intense for the most talented students, companies are seeking avenues to increase or sustain brand awareness among students

Student InteractionThrough high-quality and consistentinteractions organizations identify and target high-potential students for employment

VoicePartner organizations have a voice in shaping future leaders by providing guidance in course development, student programs, key events, executive speaker series and research projects

Direction The Centers manage project courses and student teams who are eager to research and analyze real problems faced by our partner organizations

Faculty Interaction Faculty members are an excellent resource for analyzing nonstandard, complex, data intensive problems faced by industry

Awareness The Centers provide valuable resources for scanning the environment for insights on trends, which is a critical component of sustainable competitiveness

Center Mission and Benefits of Partnership

MISSION & BENEFITS

INS

IDE

Center Financials

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Upcoming EventsFall Operations ConferenceSeptember 25, 2009

Spring Global Supply Chain Management Conference & MBA Case Competition February 12, 201020

08-2

009

Income Summary2008-2009

Expense Summary 2008-2009

In spite of a very difficult financial year nationwide, we are pleased to report that through the proactive steps taken last year to critically evaluate the value add of our activities and initiatives, we have been able to maintain solid footing throughout the 2008-9 year for the Centers. Several of our founding Center’s Partners took extra steps to ensure DCMME-GSCMI remained in their budgets as they watched equally important programs being cut. We understand and appreciate that level of commitment to our mission and vision, and you can rest assured we will remain vigilant stewards of those scarce funds over the 2009-10 fiscal year as well. For 2008-9, income from all sources, including projects directly related to the Centers totaled approximately $588 K, while expenses totaled approximately $440 K. We thank each of the firms that provided project opportunities for DCMME-GSCMI this year, not only for helping promote education and learning amongst our students, but also for your dedicated time and enthusiasm for the services we provide. For the upcoming year, we plan to continue our efforts towards greening our two key events held during the year, by moving to more electronic copies of material and reducing printed materials where it makes sense. We will also increase our ongoing use of electronic promotional materials and issuance of electronic newsletters to reduce costs in printing and postage. We sincerely appreciate each and every level of financial support presented to our Centers, and look forward to finding new and innovative ways in the year ahead to improve our service to our valued Partners of the Dauch Center for Management of Manufacturing Enterprises and the Global Supply Chain Management Initiative. Best Regards,

Mary Pilotte, Managing Director Dauch Center for the Management of Manufacturing Enterprises Global Supply Chain Management Initiative, Krannert School of Management

92%

Partnership, Project & Scholarship Income

University Support

8%

61%

Research Projects

Events & Marketing

15%

24%

Student Enrichment

August 22, 2008

Krannert’s undergraduate program captures spot in top 20 in U.S. News

WEST LAFAYETTE, Ind. - Purdue University’s Krannert School of Management undergraduate program moved up four places to rank 17th nationally in U.S.News & World Report rankings released Friday (Aug. 22).

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January 2009

SmartMoney ranks a PURDUEdegree among nation’s best buys WEST LAFAYETTE, Ind. - Purdue University ranks ninth nationally in SmartMoney magazine’s college “payback” survey, which quantifies the long-term value of a college education.

“Public universities turn out to be a far better deal than virtually all the privates we surveyed,”

according to the January edition of the magazine, which is produced by the Wall Street Journal.

Purdue Provost Randy Woodson said, “This survey reinforces the reality that a degree from Purdue

University has great value in the marketplace. We offer an excellent education and attract top

students to our flagship campus in West Lafayette.”

The article agreed, stating, “Public schools reminded us that it’s not just lower degree costs that

explain their ranking; they’re also attracting brighter students than before. Experts say that with the

number of high school grads soaring (last year marked an all-time peak), state schools have been

fielding more applications - and becoming increasingly selective. Many public schools we spoke

with report a steady rise in their incoming students’ SAT scores, GPAs and class rankings.”

Tuition at Purdue is $7,750 for in-state students and $23,224 for out-of-state students.

The average critical reading SAT score is 554 for current Purdue freshmen. The average

SAT math score is 598 and average writing SAT score is 545.

To rank the best buys, the magazine highlights the relationship between tuition costs and

graduates’ earning power. To determine each school’s “payback” ratio, the magazine

started with a list of 50 four-year institutions from three categories: Ivy League, liberal arts

and public. Data from a survey by PayScale.com, a consultant and online salary database,

was used to look at median salaries alumni are earning at two career stages - within five

years of graduation (median: three years) and after 10 years (median: 15 years). Each of

those figures was divided by the school’s historical degree cost and averaged together.

The median salary for Purdue graduates three years after graduation was $51,400,

with out-of-state degree costs of $66,472 (class of 2005), according to the survey.

Purdue graduates’ median salary 15 years after graduation was $90,500, with

out-of-state degree costs of $28,660 (class of 1993), according to the data.

The University of Illinois, at No. 7, was the only other Big Ten university

in the top 10. The

University of Georgia

ranked first. Indiana

University was 13th.

Writer: Greg McClure, (765) 494-9394, gmcclure@purdue.edu

The Krannert School shares the No. 17 slot with the University of Maryland, the University of Notre Dame and Ohio State University. The Krannert School is tied for No. 9 among business schools at public universities and is now in the top 20 of business schools accredited by the Association to Advance Collegiate Schools of Business.Krannert’s undergraduate program also fared well in specialty rankings:

• Inproductions/operations management, it ranked No. 2 behind MIT and was the top-ranked public university.

• Inquantitative analysis/methods it ranked No. 4 behind MIT, University of Pennsylvania and Carnegie Mellon and also was the top-ranked public university.

• Insupply chain management/logistics, it moved up one place from last year, to rank No. 9.

• Inmanagement information systems, it ranked No. 15.

• Inmanagement, it ranked No. 21, tied with Ohio State University.

Richard CosierDean, Krannert Graduate School of Management and School of Management Leeds Professor of Management

Manohar KalwaniSchool of Management Department Head

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Partnership Appreciation

Center Partners

Roger Stewart & Roger Willis

We would like to express our sincere gratitude to our distinguished industry partners for their significant support of DCMME and GSCMI. Without your consistent foundational support, our Centers could not accomplish the exciting and important objectives we set forth each year.

THANK YOU pArTNers

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Many companies choose to target their support to key events held throughout the year. This specific support is another way companies can engage and support the DCMME and GSCMI mission. We believe once you spend a day with us, you will want to come back! How can we help your firm become a Center Partner?

Event Sponsors

“Katz, Sapper & Miller was privileged to collaborate with the DCMME and GSCMI on the Gear and Fulcrum Performance and Practice survey for a third consecutive year. The Centers’ efforts resulted in valuable insights into market trends, risks and strategies in Indiana manufacturing. We are now sharing the survey findings withour manufacturing clients as an aid in identifying the best practices for driving efficiencies and increasing profitability.”

Scott A. BrownPartner-in-ChargeManufacturing and Distribution Practice GroupKatz, Sapper & Miller, LLP

THANK YOU pArTNers

Fall Operations Conference The fall Operations Conference on October 23 focused on “Manufacturing in Transition” and attracted 53 company representatives to Krannert.

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The topic for the conference was motivated by results of a survey of manufacturing com-petitiveness done by the Center with funding from accounting firm Katz, Sapper and Miller (KSM) released in September 2008. The study showed that Indiana manufacturing firms delivering the best financial performance had compensated for high fuel prices, rising commodity prices, the weak dollar and low credit costs by adjusting their operations. These firms had increased batch sizes and thus showed lower inventory turns than other manufacturers, had increased exports to take advantage of the weak dollar and had effectively increased their working capital to support their operational choices. Our choice of the topic for the fall conference was motivated by these pressures as well as the stress on the automotive supply chain caused by the push of consumers to buy more fuel efficient cars. But the past few weeks have delivered a very different environment for manufacturers. We now have a strong dollar, lower fuel prices than before, falling commodity prices and a tough credit market that demands a careful attention to working capital needs. OEMs are now looking for ways to support the supply chain and guarantee that parts are available to support OEM product manufacture. This environment now suggests a different transition than before. These current pressures were the topic of discussion on October 23.

OC

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Students

Faculty/Staff

Business

Student Volunteers

Fall Operations Conference Event Participation

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20

40

60

80

100

120

67

15

7

21

22

17

14

26

30

27

8

20

53

13

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2005-2006 2006-2007Globally Competitive

Manufacturing

2007-2008Supplier

Relationships

2008-2009Manufacturingin Transition

#of P

artic

ipan

ts

Manufacturing in TransiTion

Don FoleyDirector of Advanced Manufacturing and Logistics Indiana Economic Development Corporation (IEDC)

By RHO CAULEy, CEnTER GA

On October 23, 2008 we had the privilege to host Don Foley, director of manufacturing and logistics for the Indiana Economic Development Corporation (IEDC). His discussion topic was Manufacturing in Transition. To begin, he mentioned how there is a distinct differ-ence between markets and environments. Specifically, the markets of today’s economy are being challenged. “They’re struggling to maintain the growth they’ve seen in recent years. The environments, on the other hand, remain strong, especially in Indiana.” For the year 2008, 16,121 new jobs have come to Indiana, with an average pay of $22.51/hour, well above the $18/hour state average To talk about the transitions seen around the state, Don introduced Ted Fiok, president of Anderson Tooling Kerry Davis and Andy Platte of Personix. These individuals shared their company experiences regarding operating and growing a business in a dynamic manufacturing climate.

Tim FioreSenior Vice President, Supply Management TEREX Corporation

By MARK WOLFRED, CEnTER GA

Tim Fiore spoke at this year’s conference on what it means to build supply management capability within an organization in these uncertain times. TEREX is the 3rd largest manufacturer of construction equipment in the world. They manufacture a range of heavy equipment for a variety of industries such as: construction, recycling, mining, shipping transportation, utility and maintenance. TEREX employs more than 18,000 people and operates 50 manufacturing facilities throughout the world. The key to continued growth for TEREX is attracting the “best & brightest” global talent internally and externally, and providing them with opportunities for collaborative professional growth and personal

development. Along the way they are building and managing a global supply network for competitive advantage. This includes identifying strategic supplier relationships and establishing selected partnerships along with ensuring access to new technologies and continuous cost improvements especially when sourcing steel products. The future of TEREX lies with building a solid foundation through Integrated Information Management (IIM). The IIM will be the key to the future of TEREX in estab-lishing consistent sourcing processes through: supplier quality, supplier deliveries, cash savings, re-order lead times, and advanced sourcing.

Tom KentDirector External ManufacturingKimberly-Clark Corporation

By LUKAS MORAWSKI, CEnTER GA

Mr. Tom Kent shared with the audience of the Fall Operations Conference trends in procurement based on his sixteen years of experience at Kimberly-Clark. In that time, Kimberly-Clark expanded from a paper products business to become a health & hygiene giant in with over 42 manufacturing sites around the globe. One way Mr. Kent noted a firm can increase its capabilities, is to outsource business processes where they do not have competitive advantages, HR or procurement for example. Kent was quick to point out that in order to successfully outsource, a business process needs to be well defined internally first. Often a company will attempt to outsource a poorly defined process just to get rid of the problem, only to wonder why the process was unsuccessfully outsourced. Like many firms, Kimberly-Clark uses contract manufacturing to in-crease flexibility of its operations and take advantage of low cost country sourcing. Companies need to provide proper oversight to manage the outsourcing relationship as well as to protect intellectual property. Having Tom Kent, alumni of Krannert, present at the conference provided valuable insights into how our educa-tion here at Purdue can be put to valuable work at a global firm like Kimberly Clark.

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Maude (Rho) CauleyCenter Graduate Assistant MBA Class of 2009

Rho Cauley concentrated her studies at Krannert in the areas of Operations and Finance. Rho also graduated from Purdue University in 2002 with a Bachelor of Science in Electrical Engineering. After gradu-ation Rho will go to work for Northrop Grumman’s Unmanned Systems Division in San Diego, California.

Save the date!

Thanks To you and ananTh for giving us The opporTuniTy To showcase a couple of indiana businesses and Their successful TransiTion efforTs. iT was a greaT evenT and i was parTicularly impressed wiTh The sTudenT projecTs. Don Foley • IeDC

September 25, 2009Next Fall Operations Conference

“i was really impressed with the student poster competition. The intern projects were actually considerably more entailed then i would have guessed they would have been. all-in-all, i was impressed with the project complexities, the overall organization of the poster competition, and the professionalism of the students. great job on your part! i look forward to being a part next year.”

Dr. Mitchell l. Springermanager, engineering operaTions and sTraTegic iniTiaTives rayTheon Technical services company, llc

The student internship poster competi-tion is a key function held within the annual fall operations conference. The competition was created to benefit both industry visitors as well as students by accomplishing three primary objectives: 1. To demonstrate to industry visitors the caliber of summer projects that Krannert students can complete during an internship within a firm, and to provide an alternative resource for locating student candidates interested in operations and supply chain careers. 2. Provide an opportunity for graduate students to promote their talents and market themselves by visiting with industry and explaining their work experience. 3. Expose undergraduate and 1st-year MBA students to the variety of companies and employment opportunities they might encounter when searching for internship employment themselves.

This year twenty-four students (consisting of eleven undergraduates and thirteen MBA’s) took part in the poster competition. All industry attendees had the opportunity to par-ticipate as judges for the competition. Industry judges listened and asked questions as the students articulated their internship work experience and accomplishments.

MBA First Place $750

Anisha nanda—2008 Summer InternXEROX CORPORATIOn, STRATEGy & BUSInESS DEVELOPMEnT InTERn

Strategy & Business DevelopmentOBjECTIVE:• Support the overall Production Systems Group (PSG) Research, Development & Engineering (RD&E) process and explore what-if analyses.• Increase overall value of PSG RD&E portfolio by exploring the development of a standard set of project “valuation” (quantitative & qualitative) methods and effective views of the portfolio for use by PSG Sr. Team.• Compare valuation of current or historical portfolios with proposed portfolio for SC2009.

The expected output at the end of the summer included:• Report documenting the work. Goals, options investi- gated pluses and minuses of each, recommendations.• Set of supporting tools/spreadsheets for ongoing use.• Presentation sharing the results to be given to the PSG/Business Development & Strategy staff and partners

RESULTS:I proceeded to construct portfolio dashboards/opti-mization methods for the Research, Development & Engineering team. It included using a Decision tree for analysis of technical/commercial successes of certain projects that involved probabilities. I also developed a scorecard for use by managers of all lines of business across Xerox.

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Student Internship Poster Competition

First Place Undergraduate $500

Brittany Painter — Summer Intern 2008DELPHI, OPERATIOnS SUPERVISOR

SIR Final Assembly area for the production of Sensing Diagnostic Modules

MBA Second Place $500

Prateek Khanna—2008 Summer InternDELL MAnUFACTURInG STUDy

Concentration: Operations and Finance Profit Margins in computer industry have been shrinking because of the fierce price war between companies such as Dell and HP. This has forced companies to cut costs across all functional areas, including operations and supply chain, allowing them to reduce the price of the product further in order to gain market share. Business Process Improvement tools and lean manufacturing tools are being used extensively to drive changes and to reduce cost of production. Last summer, I was responsible to identify new areas of improvements and imple-ment changes in the manufacturing facility that would further reduce the exceptions in process, thereby increasing productivity and reducing the order completion time.

The project was divided in different phases: Identifying of problem, collecting data to measure impact of the problem, identifying root cause of the problem, implementing changes and developing tools to ensure sustainability. The poster defined the current state and end state of the manufacturing plant. The poster will also inform the reader about various changes that were implemented during the summer and how we were able to reduce 59% of the time-out exceptions in just two months, thereby reducing the cycle time of every computer by 10 minutes.

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Other competing posters:

MBA Third Place $250

Michael Babbitt—2008 Summer Intern BAnK OF AMERICA, CREDIT CARD OPERATIOnS

Productivity Measurement and ReportingTHE TECHnOLOGy:Edge to Edge custom card printing makes it possible to store white plastic cards that are custom printed as a step in the customization process, thus making it possible to drastically reduce inventory of cards for certain affinity groups. I evaluated each of the several thousand card types to determine which cards would be eligible for conversion to the new technology.

THE IMPLEMEnTATIOn:I designed the implementation process across different business units to address key issues such as technology, data flow, timing and redesign of existing cards.

THE PHASE In:I developed a multi-generational plan that would start with the cards easiest affinity groups to convert to the process, and ultimately incorporate full personal card customization. As a result of my efforts, the card division is moving forward with my recommendations and training their sales force using information I prepared. Additionally, the bank is spending the millions of dollars required to incorporate the new technology into their existing operations.

OBjECTIVE:As the First Line Operations Supervisor for the SIR Final Assembly area, my respon-sibilities included manag-ing hourly employees and resources in order to achieve timely and cost efficient pro-duction goals. Throughout the summer I was able to attend a Lean Manufacturing Academy class in order to learn how to coordinate resources to better attain these production

goals. I was able to learn and develop my skills in the areas of safety, quality, and continu-ous improvement within the manufacturing plant. I was also able to develop my lead-ership and analytical abilities within a production team as well as a supervisor of hourly employees.

RESULTS:Throughout the summer I was able to achieve Lean

Manufacturing Certification through the department implementation of a new manufacturing operating system. During this transition, I was able to assist in the successful implementation of a pull system within my department which helped create and control an inventory buffer and also assisted in driving produc-tion according to customer requirements.

Graduate participants

Michael BabbittMBA 2009 BAnK OF AMERICA

Manchia (Gloria) Chen, MBA 2009CUMMInS InC

Cheng-Hung HoMBA 2009FOXCOnn

Upendra JoshiMBA 2009nAVISTAR

Prateek KhannMBA 2009DELL, InC

Naresh KumarMBA 2009ATKInS

Doug LubbersMBA 2009nAVISTAR

Priyadarshini MisraMBA 2009AMWAy

Anisha NandaMBA 2009XEROX

Sanjeev SaidMBA 2009DISCOVER FInAnCIAL SERVICES

Senthil SivakumarMBA 2009OFS BRAnDS

Sripad SrinivasanMBA 2009DELL InC

Hang WangMBA 2009nAVISTAR

I Hsien Eric WuMBA 2009CUMMInS InC.

Undergraduate participants

Matthew De SilvaClass of 2010RGB LIGHTS

Miguel JuraidiniClass of 2009ROCKWELL AUTOMATIOn

Grace KloseClass of 2011BROWn-FORMAn

Michael MosherClass of 2009AEROTEK

Matthew PoselwaitClass of 2009KIMBALL ELECTROnICS

Erin PydlekClass of 2009SEARS HOLDInG CORP

Gerald SimsClass of 2009DCMME

Ryan Smith Class of 2009ECHELOn RESORTS

Clarissa Thompson Class of 2009FRITO-LAy

Lindsey WeissClass of 2010DCMME/ GSCMI

Project # 1

Generate relevant consumer insights for working women

Eric Mun Chuk Kennedy Chong

“Scooty is a brand targeted at young girls – students and first jobbers. It aims to be a fashion statement and a lifestyle accessory. To keep up with the consumer tastes, TVS needs to understand what are the latest trends amongst the segment relating to movies, fashion, music, language etc.

Business ObjectivesTo arrive at trends amongst women (in Bangalore) from observation, interviews and secondary analysis from the internet, TV and magazines targeted at the youth

Project DeliverablesTo give the brand teams a periodic report on trends in style, media habits, cool gadgets, movies, music etc.

Global Internship

Competing with nearly 50 students for the opportunity to participate in the 2009 DCMME/GSCMI International Internship India, 13 students were selected from the school of engineering and the school of management for the 3rd annual, three week internship experience with host firm TVS Motor Company in Bangalore, India. Representing both Masters in Business Administration as well as undergraduate engineering and management degrees, the thirteen students began their four month long trip orientation in February in preparation for their departure May 9th through May 29th, 2009. Venu Srinivasan (MSM’77), chairman and managing di-rector of TVS Motor Company and the recently appointed president of the Confederation of Indian Industry (CII), conceived of the idea in 2006 as a way to provide real life consulting level projects to students while immers-ing them in the local Indian culture. Providing the unique hands on experience for students was a way that allowed him to give back to Purdue, while also creating an oppor-tunity for the TVS leadership team to experience manag-ing other cultures, ideas and labor styles. Advised by senior operations faculty Dr. Suresh Chand and Dr. james Ward, students began corresponding and video conferencing with their project mentors in March to formulate strategies for completing their assigned projects. Two to three students were assigned the six projects which ranged from better understanding the consumer preferences of working women, to optimizing inbound and outbound logistics networks for the firm.

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Project # 2

Optimize logistics for outbound

Miguel E Francis Yee Juraidini Hon Wong

Dealer order level is affected due to non availability of right SKU at various warehouses. Reasons for non availability can be production variation between plants, warehouse space, billing skewners & transportation capacity in primary & secondary during seasons & month ends.

Business ObjectivesTo improve dealer order service level within 7 days to 95%

Project DeliverablesTo identify elements and the relationship between them in the distribution process, i.e. SKU class, dealership network and the geography, warehouse location, capacity, transportation capacity etc. Identify input variable and the variability range. Suggest simulation tool to be used and develop model in simulation tool.

Project # 3

Optimize logistics for inbound

Zach K Nathan J Jonathan Frazier Gross Ryan

Current production planning is done on a monthly basis sales plan. This causes fluctuation in produc-tion plan. As a result, TVS is not meeting the delivery plan for sales, ending up with either loss of sales or high finished good/raw material inventory.

Business Objectives Achieve delivery service level of 98% consistently across each model. Month to month production fluctuation model wise to be within 5% optimsie FM/RM inventory turn times. Zero loss of executable orders.

Project DeliverablesDevelop an algorithm for production planning to smoothen the production plan modelwise across all manufacturing sites

Dauch Center Helping Students Take Their Resume Global

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Krannert alum elected president of Confederationof Indian Industry (CII)

Purdue alumnus Venu Srinivasan has been appointed as president of the Confederation of Indian Industry (CII) for the 2009-10 year. Mr. Srinivasan, a 1977 graduate of the Krannert MSM program, is currently the managing director of Sundaram-Clayton Ltd. and chairman and managing director of TVS Motor Company Ltd. To view this story in its entirety, please visit http://www.krannert.purdue.edu/news/newsrelease/venusrinivasan.asp

Project # 4

Develop cost based decision support system for new product design

Masaki Xiaochang Watanabe Li

Currently TVS is producing 7 brands of vehicles in 42 SKUs (162 with colors). For these, TVS is having more than 5543 parts and more than150 suppliers.This complexity is leading to increased cost and reduced service levels both by suppliers to spares and OE. In addition, new products are being introduced every year.

Business Objectives To reduce material cost by 3% and carry out supplier rationalization.

Project DeliverablesDevelop an algorithm for “new parts introduction” into the system thereby reducing the variety and complexities.

Project # 5

Develop insights for new business (electric vehicles)

Yisha Malina Wang Vasile

TVS is setting up a separate business unit for electric vehicles in India. The sourcing will be CKD units from China and the market is across India. Targeted at the bottom of the pyramid where value delivery is important and involves large volumes, costs have to be kept at a minimum.

Business Objectives To design cost effective manufac-turing setup and distribution logis-tics for electric vehicles in India

Project DeliverablesProvide options on the business models for the most appropriate manufacturing setup and most appropriate distribution logistics for the electric vehicle business in India. Recommendation of the model chosen over the other options, will also be required.

Project # 6

Repositioning Exercise of TVS Flame in Domestic Market

Ai Lin Rizwan Chang Ahmad

Flame is a stylistic executive bike that TVS launched in 2008 March. It was supposed to do 15000 units a month in the market place but due to product and communication strategy issues, has not really ended up near that number.

Business Objectives To work with brand team and arrive at a comprehensive repositioning exercise for Flame.

Project DeliverablesDeliverables are: 1. Study of current offerings and Market place 2. As a result of above find a suitable untapped Marketing mindspace where Flame can be Repositioned and be relevent to the TG.

“i have parTicipaTed in sTudy abroad and several co-ops, buT The Tvs experience is compleTely unique. The world is becoming flaT, yeT opporTuniTes To experience inTernaTional business are sTill rare. The experience ThaT i gained was incredible. Tvs did a phenomenal job of noT jusT providing a qualiTy projecT, buT creaTing an amazing culTural experience as well.”

ZaChary FraZIer bsie 2010

Projects wrap up with a formal presentation to the execu-tive staff the final week of the students internship. “While the program focuses on developing practical application of aca-demic theory, we also hope to help the student form personal character that can only take shape when they are removed from their comfort zone,” says Mary Pilotte, DCMME/GSCMI Managing Director. “Our goal is to help students develop as global citizens while also developing meaningful rigor within their resumes.” Hoping to balance the effort at work with the opportunity to learn more about Indian culture, students traveled on weekends to the City Palace in Mysore, the Taj Mahal and the amazing Agra Fort built in 1565 A.D.. TVS also created opportunities for students to visit local Indian families, enjoy evenings of traditional music and dance and visit the TVS Corporate Social Responsibility Centre. While in India, students also spent time visiting other firms such as Infosys Technologies Ltd. and Delphi India. Exposure to a wide variety of firms and operating platforms provided for a broad perspective of what it means to “do business” in India. “When our students have an opportunity to visit a Hoosier partner firm like Delphi in India, says Center Director Ananth Iyer, we feel the program and our Center has really met our mission of making connections with Industry, while enhancing our students global educational experience here at Krannert.”

Rolls-Royce: Supply Chain InsightProfessor Ananth IyerProject Manager: Mary PilotteResearch Assistants: Rho Cauley (MBA 2009) and Ryan McCombs (MBA 2010)

Rolls-Royce is a world-leading provider of power systems and services for use on land, at sea and in the air, and operates in four global markets - civil aerospace, defense aerospace, marine and energy. Support of both defense and commercial product provides unique challenges in terms of inventory, ser-vice, etc. with product stock keeping units (sku’s) often defined as low volume with high complexity. Rolls-Royce is determined to lead the way towards improve-ment initiatives in the markets they serve. To that end, Rolls-Royce partnered with the DCMME/GSCMI Centers to provide insight into process opportunities on the supply chain horizon. Two Center graduate assistants with backgrounds in the airline and aerospace industries took on the challenge with academic leadership from Center Director, Dr. Ananth Iyer. Together they researched, analyzed and presented a compelling perspective from which a defense business team at Rolls-Royce could consider their current perspective on supply chain strategies and overall supply chain excellence. The project which spanned the fall semester of the 2008-9 academic year provided a rich experience for the students to explore and promote into practical application, the supply chain best practices taught here at the Krannert School of Management. In addition, the Centers continue to benefit from an enduring relationship with Mr. Dennis Warner, Vice President of Production and the entire Rolls-Royce leadership team, which enables the mission of education, research and industry outreach to become a

tangible reality. Thank you Rolls-Royce!

Center Projects

Academic Year

12

Katz, Sapper & Miller Certified Public Accountants: 2007-8 Gear & Fulcrum Indiana Manufacturing Performance and Practice ReviewProfessor Ananth IyerProject Manager: Mary PilotteResearch Assistants: Lukas Morawski (MBA 2009) and Lindsey Weiss (BS Mgmt. 2010)

For the second consecutive year, Indianapolis accounting firm Katz, Sapper & Miller, LLP (KSM) sponsored research led by Dr. Ananth Iyer and the Dauch Center for Management of Manufacturing Enterprises in 2008. In a study known as the Gear and Fulcrum, a detailed survey was launched to more than 6,000 manufacturing and operations focused firms across the state, for the sole purpose of determining how these businesses tactically operate with an eye toward increasing operational effectiveness. The results of the 2008-09 study were published just as the domes-tic manufacturing sector began to signal signs of the looming market stress. The data, although retrospective in nature, suggested that high performing Hoosier firms were well aware of the need to actively man-age supply chain complexity across their operation. In addition, those firms continue to focus on product and service attributes that provide a distinct market niche which tends to protect shrinking margins in times of high competition. Finally, in spite of the weak U.S. dollar at the time of the survey, the high performing firms across the state leveraged this to their benefit while also taking advantage of state incentives and grants to upgrade their assets and people. We are proud to announce that Mr. Scott Brown, a partner with KSM, once again invited us to produce the Gear and Fulcrum for 2009-10. We will be rolling out the exciting 2009 study results at the annual Fall Operations Conference scheduled for Friday, September 25th, 2009 at Rawls Hall, Purdue University. We hope you can join us as we share highlights from this timely Indiana manufacturing study and as we enter

our third year in partnership with KSM. Thank you Katz, Sapper & Miller!

2008-2009

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Greenbush Industries - Wabash Center: Warehouse and Distribution Business Start-upProject Manager: Mary PilotteResearch Assistants: Rho Cauley (MBA 2009), Roman Kita (MBA 2009), Lukas Morawski (MBA 2009)Alan Siu (MBA 2010), and Mark Wolfred (MBA 2010)

On March 27th, 2009 DCMME/GSCMI (Dauch Center for the Management of Manufacturing Enterprises/Global Supply Chain Management Initiative) had the privilege to present to Wabash Center - Greenbush Industries group (http://www.wabashcenter.com/index/greenbush/), an outline of what it would take to get into the warehousing business. The Wabash Center – Greenbush Industries group, is a non-profit organization employing a workforce of adults with disabili-ties, offering commercial subcontracting services to business and industries throughout the state of Indiana. With the state of the economy, Greenbush Industries was looking to expand into other business areas to keep their business steady and employ the disabled who rely on them for work. The task at hand for the DCMME/GSCMI Graduate Assistants (GAs) was to gather the information required for initial setup and stable growth for Greenbush Industries to enter into the ware-housing business. Certification in ISO 9000, conforming to OSHA (Occupational Safety Health Administration) standards and performance metrics were the minimum requirements for Greenbush Industries to even begin talking to customers, as the research showed that these are the requirements customers are looking for in a warehousing partner. In short, without these key components, there would be no value proposition for Greenbush industries to market. To meet the challenging needs of customers, the GAs presented key initiatives of value added services that would separate Greenbush Industries from its competition. The GAs had a wonderful time in putting together this presentation for Greenbush Industries. They were very touched and apprecia-tive in what Greenbush Industries provides to the community. The project with Greenbush Industries was a worthwhile effort for the DCMME/GSCMI Center in reaching out to the community, as well as for Greenbush Industries, as they continue to provide services and optimize the quality of life for people with disabilities

and special needs. Thank you Greenbush Industries!

CONEXUS INDIANA: Indiana Supplier CapabilityProfessor Ananth IyerProject Manager: Mary PilotteResearch Assistants: Lukas Morawski (MBA 2009), Mark Wolfred (MBA 2010) and Lindsey Weiss (BS Mgmt. 2010)

Making connections for industry growth is a key focus for Conexus Indiana and for the DCMME/GSCMI Centers at Kran-nert School of Management. Conexus Indiana was looking for more tools to assist in the launch of their “Connector Services” program aimed at driving economic growth in the advanced manufacturing, transportation, distribution and logistics indus-tries across the state. Conexus Indiana through partnership and collaborative activities with Purdue’s Technical Assistance Program (TAP) and the DCMME/GSCMI team, initiated a project focused on creating recommendations for a web-based supplier database which would hopefully help to create networking opportunities for Hoosier businesses. The goal of the project was three fold:

1) Identify and formulate key descriptions of individual Indiana manufacturing firm’s capabilities that allow OEM (original equipment manufacturer) procurement managers to easily and rapidly identify readily available assets across the state.

2) Assess firm’s willingness to share information and participate in populating a database site, for the purpose of increasing the procurement effectiveness for OEMs across Indiana.

3) Review existing databases capable of or already hosting this type of information, bring to bear best practices and facilitate advisory team recommendations from the research.

This project provided an insider’s view of essential information necessary to fuel supply chain opportunities across industries and the state. The Centers continue to look for ways key learn-ings from this engagement can assist the state in its economic

recovery going forward. Thank you CONEXUS Indiana!

i appreciaTed The Time commiTmenT and professionalism of your Team.

The qualiTy of The analysis exceeded my expecTaTions. The scope of

The projecT was beyond whaT we could do

in-house and could noT have been done wiThouT you. i would recommend your program

wiThouT reservaTion. Thanks again. Karen SIllS • General ManaGer WabaSh Center

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Conference to address

challenges

in today’s global supply chain

(Media-newswire.com) - WEST LAFAyETTE, Ind. - Corporate executives will join experts from the Krannert School of Management’s Global Supply Chain Management Initiative Center for a Feb. 6 conference to discuss new challenges in managing the global supply chain. “This year’s conference is particularly important to Indiana businesses,” said Ananth Iyer, director of the Dauch Center for the Management of Manufacturing Enterprises and the Susan Bulkeley Butler Chair in Operations Management. “Over the next year, operations are expected to undergo a profound change. Managing the supply chain in a turbulent global economy will be essential to a firm’s success or failure.” To learn more, the original article can be found at http://media-newswire.com/release_1084342.html F

Motorbikes in Bangalore. . . Mary Pilotte thought Purdue University’s International Internship India program might draw fewer students in 2009 than in past years. But based on the numbers that have been turning out for information sessions, interest in the program remains strong. “The program is a resume enhancer that helps partici-pants differentiate themselves in the marketplace,” says Pilotte, managing director of the Global Supply Chain Man-agement Initiative and the Dauch Center for the Manage-ment of Manufacturing Enterprises at Purdue’s Krannert School of Management. The two centers run the internship program with sponsorship from Indian motorcycle and motor scooter manufacturer TVS Motor Corporation. One of the most valuable aspects of the assigned project was the chance to compare business processes in the United States and in India, says Hanson, who now works in the Supply Chain Leadership Development Program at Raytheon Company in Waltham, Mass. For example, Hanson was surprised to learn that businesses pay tariffs on goods transported from one Indian state to another. “The lesson I learned is that the rules are different everywhere,” he says. A project of that sort also helps students appreciate how geography affects product cost, says Pilotte. Students un-derstand that it’s less expensive for a U.S. manufacturer to make product in India or Mexico, for example. “But if you’re in India already, where do you go?” she says. To learn more, the original article can be found at http://www.inboundlogistics.com/articles/features/0209_feature01.shtml F

InDIAnA COLLEGES add firepower to state’s

logistics industryIndiana’s colleges and universities are no lightweights. Six of the top 25 Midwestern colleges call this state home, as well as six of the top 50 Midwest master’s programs, according to U.S. news and World Report’s 2008 college rankings. Also, the University of notre Dame, Purdue University and Indiana University made the magazine’s top 75 schools nationwide. . . . Industry demand is driving Hoosier schools to expand logistics programs, and administrators have new degrees on the fast track. But the next step is bringing in the students. Many of these programs give students the opportunity to gain hands-on experience through internships, study abroad and case studies. At Purdue University, M.B.A. students involved in the Global Supply Chain Management Initiative (GSCMI) take part in real world projects. The GSCMI started three years ago when a committee made up of faculty defined the initiative and selected the required courses. With industry sponsors and a focus on research, students have the opportunity to gain experience on local, national and international projects. To learn more, the original article can be found in the 2008 Indiana Logistics Directory. F

Indiana manufacturers say they keep survival skills sharpBy MAX SHOWALTER

The many components of the manufacturing industry are not immune to the current economic crisis. A daylong conference with faculty and students Thursday at Purdue University’s Krannert School of Management allowed industry professionals to discuss the challenges they are encountering. Ted Fiock, president of Anderson Tool & Engineering Co., said an earlier economic problem arose in his industry. Thirty-five percent

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Center

THE PRODUCTION LINE By jASOn WHEELER

Last month I had the opportunity to gain insight into what we can expect to see from the upcoming graduates in the class of 2008. The first stop was in West Lafayette, where Purdue Universi-ty hosted their 3rd Annual Global Supply Chain Management Conference and Student Case Competition for grad students. Then it was off to Chicago for the 14th Annual Student Case Competition sponsored by our own Great Lakes District. Both events were a demonstration of ingenuity and energy. The Purdue University competition brought in the top six teams of an original 21, who had initially submitted their recommendation in mid january. In mid-February the final six teams faced off to determine the top 3 places. The students put forth their best efforts, as 1st place would take home $5,000. yes, that is correct $5,000 was awarded to 1st place with $2,000 and $1,000 for 2nd and 3rd. The case involved a small spice company that manufactured all of their own ginger. . . . I drove home from that weekend feeling very positive about the upcoming graduates and what they will bring with them into the real world. To learn more, the original article can be found in the APICS Great Lakes District Central Indiana Chapter, Volume XXIII, number 8, March 2008. F

The Gear and Fulcrum Indiana Manufacturing Competitiveness Review

InDIAnAPOLIS, In (november 6, 2008) – The certified public accounting firm of Katz, Sapper & Miller, LLP announces the release of the 2008 edition of “The Gear and Fulcrum Indiana Manu-facturing Competitiveness Review.” This report provides insights into market trends, projections, risks and strategies in Indiana manufacturing and is designed as a resource for the manufac-turing industry when measuring consistency of business and manufacturing processes. The study is commissioned by Katz, Sapper & Miller, LLP and developed in partnership with Purdue University’s Center for Advanced Manufacturing, the Dauch Center for Management of Manufac-turing Enterprises, and the Global Supply Chain Management Initiative of Purdue’s Krannert School of Management. “This study provides an important overview of manufacturing trends throughout Indiana; it helps identify growth indicators and shares best practices utilized by top-performing Indiana manufacturers,” said Scott Brown, Partner-in-Charge of Katz, Sapper & Miller’s Manufacturing and Distribution Group. “A challenging economy combined with increased global competition has significant im-pact on Hoosier manufacturers. The goal of this study is to offer information to help manufactures measure their progress and innovation with other successful manufactures and to glean best practices to assist in guiding their businesses through demanding economic and global changes.” “High performing firms realize the need to manage supply chain complexity and are taking steps to actively do so,” said Dr. Anath Iyer, Director of Purdue University’s DCMME/GSCMI. “They are choosing products with sufficient complexity to generate a market niche, which will protect margins and leverage the weak dollar to their advantage.” To learn more about the survey visit www.ksmcpa.com. F

of America’s machine shops went out of busi-ness between 2001 and 2003. “We were faced with giving up or surviving. We survived, but we weren’t in great shape,” said Fiock. His Madison County company, which was founded in 1954, became more efficient through an expenditure of more than $300,000 in new machinery and equipment, he said. “you have to continuously invest or others will catch and go around you. All of this transition has allowed us to stay here. We’re soon going to need a lot of (additional) square footage and a lot of employees.” To learn more, the original article can be found in the Journal & Courier. F

IN THE NEWS

More than “Post-Its:” 3M Makes a Memorable Visit to KrannertBy HAnG WAnG, MBA 2009

Sep. 25th, DCMME (Dauch Center for the Management of Manufacturing Enterprises) and Krannert Operation Club hosted by ’87 Purdue alum and guest speaker – Mr. Pierre LaMere from 3M.

Mr. LaMere is a Six Sigma Black Belt in Supply Chain Operations at 3M. His presentation was warmly welcomed by around 40 MBAs who are interested in Operation and Supply Chain management. Mr. LaMere’s presentation was composed of 3 topics: in-troduction of 3M as an entire corporation, focus on Supply Chain Operations, and 3M’s global presence and potential hiring opportunities. 3M’s business focus in 3 areas has been emphasized, namely enhancing safety and security, making life better around the home, and improving the quality of health care. Mr. LaMere further introduced 6 market-leading businesses: consumer and office, display and graphics, electro and communications, health care, industrial and transportation, and safety, security and protection services. The mission of 3M’s Supply Chain Operation is to “move closer to our customers” – and serve the global market-

place more effectively. Since the world is fast becoming a true global marketplace, 3M faces customers who demand regional solutions and world-class, responsive service. To meet the chang-ing needs of customers ev-erywhere, 3M is implement-ing a strong, strategic vision for international growth. It is reinvigorating and localizing research and development efforts, shortening supply

chains and broadening portfolio with acquisitions. The good news is that 3M is expanding globally, espe-cially in the Asia Pacific area where most of Krannert’s international students come from. naturally, the audience was eager to know more about 3M’s activities in their respective countries.

Industry Visit Series

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Subaru of Indiana Automotive, Inc. (SIA)By PRESTOn LEHMAn, MBA 2010

On December 5th, 2008, the Krannert MBA Operations Club had the opportunity to tour the Subaru-Indiana Automotive (SIA) Plant in Lafayette, Indiana.

Twenty MBA students were in attendance. The facility assembles about 200,000 automotives a year, including the Subaru Tribeca, Outback and Legacy. During the tour, students saw the paint department, stamping and welding department, trunk assembly, trim and final assembly, and the quality control department. All of the students had a great time and appreciate SIA giving us the opportunity to tour their facility.

Kimberly-ClarkBy LAnCE HO, MBA 2009Innovation challenges, when managed well, can become a critical competitive advantage. Kimberly-Clark, a 137 year old global giant for health solutions, takes innovation to its heart and drives business performance through different innovative

business processes. In November 2008, 25 Krannert students had an opportunity to see Kimberly-Clark’s innovation first-hand: the Innovation Center, Production Facility and RFID Testing Center. Each site visit allowed us to realize Kimberly-Clark is a place “where people who think differently think together.” The following are students’ comments on the positive educational experience:

Industry Visit Series

17

“The innovation center showed not only the advanced technology KC has but also its commitment to its customer focus. This trip really taught me how marketing and innovation work together.” – LAnCE HO, MBA 2009

“This KC trip was really fantastic. I saw how the theories I learned in classroom be applied in the real world, and talked to those who are experts in what they do. It’s really a good experience for me. I believe that what we learn in our MBA program is not only about business theories, but also about the ways to apply them.” – PO-CHIEn yEn, MBA 2010

Interview with Tim Fiore, Senior VP Supply Management, TEREX Corporation By SEnTHIL SIVAKUMAR, MBA 2009

Tim Fiore, Senior VP Supply Management, TEREX Corporation attended the Fall Conference entitled “Manufacturing in Transition” and took time out to participate in a brief interview sharing his industry thoughts. Mr. Fiore’s view on the current economy was that it has shifted in industry from a “seller’s” to a “buyer’s” market. The focus of TEREX Corporation and Mr. Fiore is now squarely on cost reduction through improved supply chain management. TEREX Suppliers are being hit by the financial crisis and will require help with their working capital financing. TEREX will have to create plans to support their suppliers, so there is a need to increase investments in supply chain efforts and hence, improve the overall cost impact to the firm. The current strategy to address the risks in the steel supply chain for TEREX is to develop close relationships with the Mills, and in addition attempt to determine real cost for fabricators, then to help them reduce their costs by partnering with them over a longer term. The goal of TEREX is to have the most capable people work in the supply chain group, shifting aptly with the global environment. The Supply Chain Graduate Development Program (GDP) at TEREX was established to address this issue. When chosen students come out of the program, they will have over 6 years experience and will be ready to function in senior level positions. Through the partnership with GSCMI and Krannert, TEREX is hoping to:

1. Understand the content and training provided to GSCM option focused students. 2. Understand the various issues faced by other firms, through conferences and develop a network with peers. 3. Gain access to well trained students to develop the firm’s capabilities.

For Mr. Fiore, the high degree of collaboration between supply chain professionals at TEREX has been

very satisfying.

Lukas Morawski Center Graduate Assistant MBA Class of 2009

Lukas has concentrated his studies at Krannert in the function areas of Operations and Finance. Lukas also graduated from Villanova University in 2004 with a Bachelor of Science in Mechanical Engineering. Lukas is excited to be returning to Sikorsky full-time in the summer, joining their MBA Leadership Development Program.

Spring Global Supply Chain Management Conference

Tumultuous changes in demand and supply, broad swings in exchange rates, and global government interventions; uncertainty in how to conduct, maintain and even grow business seems to be on the minds of every executive in nearly every sector. The Dauch Center for the Management of Manufacturing Enterprises, the Global Supply Chain Management Initiative and Purdue’s Center for International Business Education and Research (CIBER) hoped to help put the pieces together as conference participants came to discuss the issues on “new Challenges in Managing the Global Supply Chain.” Thanks to all the over 200 participants including industry visitors, company sponsors, visiting students, student volunteers from Krannert and the staff who combined their efforts to host the 4th Annual Spring 2009 GSCM conference on Friday, February 6 at Purdue University.

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new Challenges

in Managing the Global Supply Chain

FEB

RU

AR

Y

2009

Panel 1 WRITTEn By CEnTER GA’S

Clowdis, Lilly & Blanco According to Mr. Charles Clowdis, Managing Director of north American Markets at IHS Global Insight, negative economic growth, reduced consumer spending and an unexpected spike in crude oil prices all contributed to a situation where transportation carriers are struggling to maintain their business. Ocean and air freight sectors have experienced a drop in business, forcing the carriers to decrease their rates to encourage international trade. Mr. Clowdis is convinced that customers are the key to the recovery. Once individuals are secured in their jobs, are granted access to credits to finance their major purchases and regain trust in government, the first steps will be taken in the right direction. In addition, the prices will need to stabilize, especially in the real estate market, so the customers are confident when deciding to make major purchases. Once the recovery commences, the logistics sector will be one of the first to feel the impact. The materials will start moving again and inventory control will face closer scrutiny as cash will become an even more valued asset after the lessons learned during the current downturn. Ms. Abby A. Lilly, Operational Purchasing Executive, from Rolls-Royce Indianapolis spoke on the topic of “Challenging Times for Global Purchasing Organizations.” Ms. Lilly has served Rolls-Royce for 13 years in various capacities across the company.

19

According to Lilly, Rolls-Royce must constantly meet and exceed the regulations placed on their products and components by the FAA as well as the US government. Rolls-Royce cannot outsource many of their parts to companies in foreign countries due to issues of national security. Rolls-Royce believes that major changes need to be made in management and leadership styles, communications, and overall behavior to meet the challenges of their global supply chain. Through partnerships with Centers such as the Dauch Center for the Management of Manufacturing Enterprises and the Global Supply Chain Management Initiative, Rolls-Royce hopes to help nurture the development of current undergraduate and graduate students to understand the difficulties associated with the changing economy. Steve Blanco, Vice President of Operations Excellence in the Electrical group at Eaton Corporation, first highlighted the often assumed business notion that sourcing from the “best cost country” or the “lowest cost country” was the optimal choice. However, doing so caused Eaton to run into quality, communication, and defective inventory problems. To alleviate these problems, Eaton elected to select suppliers based on how well they aligned with Eaton’s business, product, and manufacturing strategy. Blanco recommended further that the sourcing process should also consider the risks involved in the selected sup-plier, taking into account such items as natural disasters, economic uncertainty and energy costs. Eaton uses a hurdle rate to quantify their selection process. This method sets a target rate of return as required by the business. To summarize, Steve advocated taking all parts of your sourcing strategy into account when selecting a supplier. An effective sourcing decision considers both the costs and risks associated with the supplier. A global supply chain should take these issues into account, yet be flexible enough to change with the new challenges of tomorrow.

Keynote Speaker

Margaret Bishop

As part of our annual GSCM conference, we had the privilege to hear from our keynote speaker Margaret L. Bishop, an independent global business consultant. She spoke about global supply chain challenges in 3rd world countries. In 1985, Ms. Bishop earned her MSM in Management from Krannert, with a concentration in Marketing. After completing her MSM degree, Ms. Bishop worked in prod-uct management and marketing research with companies like Kimberly-Clark and nielsen Marketing Research. After years in the corporate world, Ms. Bishop embarked on an international career, volunteering as a Peace Corp in Mali (West Africa), providing business consultation to a variety of business and entrepreneurs.

The experience and value gained through the Peace Corp allowed her to transfer her global knowledge by building supply chain initiatives in third world countries like Haiti, where she is currently consulting. Some of the success notions Margaret Bishop shared are:

Be Prepared: “Do your homework” Make new Friends: “Build your network” Planning: “Have a Contingency & Back-ups” Implementation: “Harness Technology, Create Solutions” Recovery: “Expect the unexpected”

These concepts lay a foundation for companies looking to expand their global supply chain. If you are one of these companies, Margaret Bishop said it best, “Rise to the Challenge - Fasten your Seatbelt and Enjoy The Ride!”

Panel 2

Stewart & Kodzi research

The research section of the Global Supply Chain Management conference focused around two speakers, Professor Emmanuel Kodzi and Roger Stewart. Prof. Kodzi, a postdoctoral research fellow, spoke about the impact of supply chain constraints on getting combination therapies to patients suffering from malaria in developing nations. Prof. Kodzi described how many benefactors provide these drugs through philanthropic efforts with the expec-tation that they will get to those in need. However, due to supply chain constraints, such as a lack of infrastructure which leads to supply disruptions, the drugs often do not get to their intended recipients. The disruptions and the ensuing levels of inventory are adding costs such that the drugs are becoming unaffordable to customers who need them and have little, if any, disposable income. Prof. Kodzi further discussed how problematic it is that the majority of government subsidies for combination

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SPRING CONFERENCE

Ryan Mccombs Center Graduate Assistant MBA Class 2010

B. S. Aviation Technology, Purdue University, May 2006

Ryan will be working at Rolls-Royce as a summer intern during the summerof 2009.

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drug therapies go to the public sector while it is the private sector that is doing the drug distribution and therefore is in most need of the funding. The bottom line is that donors send drugs to the coun-try but then their efforts are often thwarted once they enter the supply chain. Prof. Kodzi was followed by Roger Stewart, adjunct professor in the finance department. Mr. Stewart is a retired Vice President of the Treasury for Proctor & Gamble. Mr. Stewart spoke about the current financial crisis and how it is impacting not only the economy but also the way Risk Management is taught in the classroom. Mr. Stewart pointed out that the current text book being used in the risk class only has 2 pages on Fannie Mae and Freddie Mac and 1 page on mortgage backed securities, both topics of great importance today. In order to facilitate more current knowledge, Mr. Stewart is having students do group presentations on matters of popular interest, such as asset backed securities, central banking systems, and credit ratings agencies. Mr. Stewart also discussed how the current financial crisis is effecting companies financing their supply chains, mentioning a recent survey in which many of the respondents had altered their current receivables, payables, and decision making processes in response to slowed credit. Following the two research presentations, a question and answer session was moderated by Professor Ananth Iyer. Attendee’s of the conference were able to engage the speakers with questions relevant to their particular business needs and interests.

purdue ciber is pleased to support gscmi/dcmme

efforts to internationalize krannert’s supply chain

and advanced manufacturing management curricula.

activities such as the gscmi conference and the global

case competition provide students with opportunities

to showcase their international

business knowledge and to ‘rub

elbows’ with international supply

chain executives. we appreciate

the opportunity to play a role

in these excellent programs.

greg cuTchin, ph.d. ManaGInG DIreCtorPurDue Center For InternatIonal buSIneSS eDuCatIon anD reSearCh

FIRST PLACE•VanderbiltUniversityShuanghui Wu, Erika Bacon, Bradford Cayer, Roe Rogers

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The 2009 GSCMI MBA case competition had another strong showing this year with 19 teams entering the competition, including some international teams. The first round of the competition consisted of a blind Power Point presentation case solution, with the top six teams advancing to the second round, and invited to compete at the conference. The first round was judged by a faculty panel who had the difficult job of narrowing the field down to the six finalist teams:

• Georgia Institute of Technology• Michigan State University• Northwestern University• Purdue University • The University of Michigan • Vanderbilt University

The case, ‘Managing the Global Supply Chain at COGMA’, involved helping COGMA, a century old Indiana automotive related manufacturer, develop a long term business strategy to succeed under global competition. The teams were specifically asked to investigate the risks and benefits involved in changing the company’s supply network and explore exporting opportunities. For the second phase of the competition the com-petitors were provided with an update to the case at 5:00pm on Thursday, February 5th and had until the following morning at 8:00 am to submit their revised strategies and presentations. The teams then presented their analysis at the conference in a ten minute presentation followed by a five minute Q&A from the panel of industry judges. Battling the fact that a lot of the competitors forwent sleep in preparing their case, all the teams gave wonderful insight into the issues faced at COGMA. The judges were very impressed with all the pre-sentations, but in the end awarded the team from the Owen Graduate School of Management at Vanderbilt, first prize, followed by Purdue University, and north-western University took third place. The top three teams received a total of $8,000 in cash prizes thanks to our generous industry sponsors.

Student Case Competition

Case Overview Student teams competed in a two phase case evaluation utilizing the conference theme and a case entitled “Managing the Global Supply Chain at COGMA.” The case, written by Center Director Dr. Ananth Iyer, places students inside a century old automotive related manufacturing firm whose roots are firmly planted in the small town of Chester, In. COGMA, known for their service and quality, is faced with trying to piece together a stable, long term strategy amidst the brunt of global pricing pressure, wage competition to keep their best managers and employees, an unchanged supply network and untested export opportunities abroad. The 3rd generation family CEO of COGMA looks for help as teams of MBA students explore the benefits of change while weighing the risks of an altered business platform.

1st P

LAC

E

Owen Graduate School of Management at Vander-bilt

SECOND PLACE •PurdueUniversitySanjeev Vaid, Samarth Gogia, Nattanich Thongkraisaen, Lance Ho

THIRD PLACE •NorthwesternUniversityPatricio Mois Freiwirth, Jeevan Balani, Christian Vansnick, Anuj Kadyan

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Spring Global Supply Chain Management Event Participation

JUDGES

We would like to thank the following industry executives for serving as judges for the MBA Case Competition.

Randy Hountz, Purdue University, Technical Assistance Program

Pam norman, Indiana INTERNnet

neil Perry, Raytheon

Peter j. Walters, Saint-Gobain Containers

Darrell Wineman, Saint-Gobain Containers

Mike Musleh, Oerlikon Fairfield

Phase 1 Competing TeamsBoston UniversityCornell UniversityGeorgia Tech College of ManagementHult International Business SchoolMassachusetts Institute of TechnologyMichigan State UniversityNorthwestern UniversityPurdue UniversityUniversity of ChicagoUniversity of MarylandUniversity of MichiganUniversity of North Carolina in Chapel HillVanderbilt University

Finalist TeamsGeorgia Tech College of ManagementMichigan State UniversityNorthwestern UniversityPurdue UniversityUniversity of MichiganVanderbilt University

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Students Faculty/Staff Business Student Volunteers

2005-2006Intellectual

Property

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2007-2008Risk

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2008-2009New Challenges in

Managing the Global Supply Chain

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Student Academics

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MBA students who are interested in operations or supply chain can enroll in courses which can lead them to an option area certificate in manufacturing technology management or global supply chain management. Involvement in either or both of these options presents students the opportunity to:

• Select courses related to manufacturing or supply chain across all functional areas

• Complete projects led by faculty in Manufacturing or Supply Chain Management

• Attend Best Practice Study Abroad tours in Asia, South America or Europe

• Participate in hands-on learning events

• Interact with companies who hire students for domestic or international internships

• Apply for scholarships to attend study abroad programs, case competitions and conferences

• Develop a global perspective on current events through programs, articles and speakers

Shana Ashby-jobesMichael BabbittSteven BenchErin Marie BoleyLee C BushMaude CauleyManchia Chen

james CruseAnthony Heleinejeffrey HinmanCheng-Hung HoRandall jonesRoman KitaRaghaven Kulkarni

Zhen Lanjavier LandazuribarKrassimira LazarovaZhuojie LiuDouglas LubbersLukas Morawskijennifer Pascon

Deepak PillaiSripad Srinivasanjared TurnerI-Hsien Wujianqing Wuyaowei Zhou

Recipients of Both MTM and GSCM Certificates

MBA Option Areas

MTM

GSCM

Both

MTM and GSCM Option Certificates Awarded

Global Supply Chain Management Option

This option allows students to learn how the network of suppliers, manufacturing facilities, distribution cen-ters and customers located around the world work together to ensure that the right product arrives at the right place at the right time for the right price.

Option Objective: To focus on managing issues associated with: • Structuring, understanding and procuring from global supply chains that include domestic and foreign suppliers • Serving the supply chains of global customers• Coordinating supply chains that function across country and other critical boundaries

Course Requirements:This option offers a broad-based approach. Required courses are selected from across Krannert’s functional areas to equip students with the knowledge they need to succeed. To complete the option you must complete five elective courses, at least two courses each from Group I and Group II.

Group IMGMT 52200 new Product DesignMGMT 56100 LogisticsMGMT 56400 Mgmt of Service OperationsMGMT 57100 Data MiningMGMT 59000 Sourcing & Procurement MgmtMGMT 62300 Business MarketingMGMT 64900 Marketing in a Global EconomyMGMT 68400 Info Security for Managers Group IIMGMT 59025 Supply Chain in the Health IndustryMGMT 60300 Tax and Business StrategyMGMT 64300 Risk Management & Liability FundingMGMT 64500 Mergers, Acquisitions & Corp. ControlMGMT 64900 Global Marketing ManagementMGMT 65500 Competitive Strategy

Group I or II (only after 2 classes from each group are achieved)

SA59004 or MGMT 59000 India Internship Study AbroadSA59000S or MGMT69100V China Study Abroad

Manufacturing & Technology Management Option

Managing a manufacturing enterprise has never been more challenging or exciting than today. As the focus of corporate leaders is increasingly shifting towards innovation, high-value and high-margin products in new and evolving industries, students must be well-prepared to succeed in today’s highly competitive world of manufacturing. The MTM option focus allows students to prepare for these challenges.

Option objective:Develop skills in every functional area required to be a successful manager and leader in the operation area or related manufacturing industry.

Course Requirements:MTM students must take courses in at least five of the following seven areas to satisfy Part I.

Part I:

Human Resources in ManufacturingProduct Design & DevelopmentProduction Planning & ControlSystems Integration & Information ManagementTotal Quality ManagementManufacturing StrategyFinance for Manufacturing

Part II requires four additional electives selected from the following areas:

Business LawEconomicsFinanceGlobalizationMarketingMISOBHROperationsQuantitative MethodsStrategy

Muhammad AlhusamiAnthony Amninicole ArcangelKyle CavinsTanyarat CharatchawenMegan CheekDerrick Kevin Deardorff

Chia-yen HuangAmanda HuwaldtMasahisa IidaUpendra joshiRyan LeidighBrandis MarshallMayuko MatsumotoRohan Rajapurkar

Rohan SehgalAshutosh ShankarZhi SongParwaz VirkRobert Diener Whitney IIIOzkan yavuz

Recipients for 2009 MTM Certificate

25

joonhwa BinRoyce CarvalhoAmy ChangWeizhong ChenDennis DelgadoMichael EngelbrechtZhikai HeRajpaul judgeStephen KerberPrateek Khanna

Alex joseph KovachIchun LeeDaniel LefcoMohamad LegowoGriselda LopezDeepti Mahapatra Priayadrshini MisraAnisha nanda jonathan OkosDeepali Pratap

Prentice StovallSuchit SubhasMelissa TawEric TracySanjeev Vaidjason WallaceHang Wangjustin Zheng

Recipients for 2009 GSCM Certificate

Undergraduate B.S. Industrial Management with a Manufacturing Management Minor

Undergraduate students with interests similar to those of the MBA stu-dents can pursue an industrial management major with a manufacturing management minor. The goal for each group is to nurture meaningful summer internship experiences, and secure full-time employment upon graduation. Coursework in the MM minor builds on the strong analytical base of the BSIM program. On this base is built an interdisciplinary set of courses in advanced manufacturing planning and control systems, manu-facturing strategy, and the management of advanced manufacturing organizations. The vast majority of the graduates with the MM minor are expected to assume entry-level positions directly in the production or operations function of manufacturing firms. However, these graduates will not be narrow specialists in engineering or supervision. Instead, the notion is that MM graduates will understand how the manufacturing process in-teracts with other activities of the firm and with the firm’s strategic goals. They will not only be knowledgeable about contemporary manufacturing techniques, but be attentive to human resource considerations, to finan-cial implications, and the market-driven competitive position of the firm. In brief, the objective is that MM graduates have the skills to manage tomorrow’s as well as today’s factories, and, indeed, to contribute to the successful design of tomorrow’s. The Operations Management (OM) department in Krannert’s School of Management is pleased to introduce two newly launched minors for undergraduate students enrolled in the School of Management. The 15 credit hour Applied Science Minor in Operations Management is designed for students in the Industrial Management program, and the nine credit hour optional minor in Operations Management is designed for all management majors. The operations function spans the manufacturing of products, the production of services and the movement of goods throughout the supply chain. Typically, students interested and educated in this area, obtain employment with titles that include Production Planner, Procure-ment Specialist, Global Supply Chain Associate, Six Sigma Black Belt Associate, Manufacturing Analyst and Management Associate. The Operations Management discipline is consistently ranked highly by national and international publications. A distinguishing feature of Krannert is that it is uniquely designed to offer a mix of 400 level classes and 500-level classes that serve our equally and highly ranked MBA program in Operations Management.

BSIM/MM requires an interdisciplinary set of three courses in: • Advanced Manufacturing Planning and Control Systems • Manufacturing Strategy • Management of Manufacturing OrganizationsTo ensure some exposure to the technical realities of the manufacturing environment, the student must also choose at least two additional approved courses in: • Quantitative Methods • Technology • Industrial Engineering • Management Information • Systems Analysis and Design • Computer-Integrated Manufacturing • Organizational Behavior & Human Resources

26

Attracting talented students to Krannert is increasingly a function of the financial package that Purdue can offer. Therefore, generous sponsored scholarships for students who express sincere interest in supply chain and manufacturing management can enhance the quality of students enrolled.

Caterpillar DCMME ScholarshipWyATT CLARKEGRACE KLOSEBEnjAMIn MATTHIESKAITLIn ROSInSKISTEVEn SALIM

Delphi Manufacturing RyAn BInGHAMHOLLy BOUGHERBRITTAny PAInTER

Ensign Bickford ScholarshipCHARLES VEnDLEy

E.T. WeilerDAVID BURKHOLDERLISA MRZLACKRAVI MODyjOSEPH TURK BRETT SCHWAB

Sears Holdings Corporation WyATT CLARK

U.S. Steel LISA MRZLACKKEnDAL PAUL ROSS

STU

DEN

T SC

HO

LAR

SHIP

S

Admissions (All Programs)Applications ...................................................... 1,246Admitted .............................................................. 448Enrolled ............................................................... 212Business Administration (MBA) ......................... 154Business Administration (MSIA) .......................... 31Human Resources Management (MSHRM) .......... 27

Statistics (MBA only)Mean Undergraduate GPA ............................... 3.4/4.0Middle 50% GPA Range .................................. 3.2-3.7Mean GMAT Score ................................................ 662Middle 50% GMAT Range ............................. 610-710Mean Post-baccalaureate Work ................... 4.0 yearsMiddle 50% Post-bac Work Experience ....... 2-6 yearsPost-bac Work Experience ................................ 88%Mean Pre-bac Work Experience1 ................ 2.6 years1 Pre-baccalaureate experience is calculated only for students who graduated in 2008 and includes military, full-time, and significant internship/co-op experiences.

Demographics (All Programs)Women ............................................................... 34%Minorities ........................................................... 21%Underrepresented Minorities ............................. 9%International Students ......................................... 46%Average Age ................................................. 27 yearsCountries Represented ......................................... 17Undergraduate Schools Represented .................. 130Purdue Baccalaureate Degrees .......................... 22%Previous Advanced Degrees .............................. 10%

Student Profiles

33% Engineering/ Science/ Technology

33% Humanities/ Social Science

12% Humanities/Social Science

39% Engineering

1% Possessions/Territories

4% South

20% West/Southwest

58% Midwest

14% Northeast/Mid-Atlantic

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2008-2009 Bachelor of Science in Industrial Management with Manufacturing Management Minor Statistics

Krannert Undergraduate Students ... 2978BSIM Program overall ........................ 170 Pre-IM* ..................................................40Upper-level IM** ................................. 130Total BSIM with MM minor .................... 20* Management students in their freshman and sophomore year who have not formally declared IM as their major.** juniors and seniors management students who have declared IM as their major.

Roman KitaCenter Graduate Assistant MBA Class of 2009

Roman completed his MBA studies at Krannert focusing in the areas of supply chain, operations and information technology. His career interest include procurement and supply chain strategy.

17% Science/Technology

27% Business

34% Business

5% EconomicsUndergraduate Majors (MBA/MSIA)

Undergraduate Majors (MSHRM)

Masters Undergraduates

2009

3% Resident Abroad

Internship Opportunities

Employment for new graduates and students searching for meaningful sum-mer work experiences has been at a premium this year, as business take a step back and scrutinize every form of expense hitting their firm. While this is completely understandable given the current economic conditions, the need for internship experience has never been greater both by the students and for most employers. How can this be? Well, the data shows that overall, more applicants entering Krannert MBA programs are doing so with less direct work experience (4.4 years in 2005 vs. 4.0 in 2009), while the average age has been holding firm at 28 years of age. While the reasons for this are not completely clear, it is a phenomenon shared by top business schools across the country. What does this mean for the student? It becomes not just prudent to secure meaningful summer work experience, it becomes essential to do so, in order to position themselves for a full time opportunity at graduation. The days of labor shortages are not gone forever, however with the diminished values of Baby Boomer’s 401Ks and recent shedding of experienced talent, there is certainly an increase in competition for the best jobs as they become available. Students without relevant work experience will face an uphill battle, espe-cially for career changers. What does this mean for industry? While shedding of non-productive or bloated staffing is key to surviving an economic downturn, adding fresh talent (even with less experience) to the team for a summer can be a way of re-energizing the workforce with extra project hands for departments hit hard from cutbacks, while keeping an eye on completing strategic initiatives and maintaining fiscal conservatism. An internship workforce can also augment a full time work force by allowing already highly taxed associates to maintain summer vacation commitments to their families, helping to maintain employee morale without negatively impacting the already lean operation. Finally, continuing to find great talent with potential – even during a downturn, is essential to maintaining a brand presence for future labor needs. With an eye toward the future, that for now is showing signs of what will be a slow recovery, it is a good time to consider how the DCMME and GSCMI Centers might assist in meeting your recruiting needs. The qualities of stu-dents here at Krannert are exceptional. These lean times call for innovative solutions to getting the job done faster, better and cheaper. Let us help you find students who can meet this call.

MBA & Undergraduate

Recruiting Companies: MBA Undergrad

Boeing Company X 5/3 Bank X Abbott Laboratories X Air Products and Chemicals X Aldi, Inc. X Allison Transmission X Amazon.com X Archer Daniels Midland X AT Kearney X AT&T X X Bosch X Cargill X Caterpillar Inc. X Cummins X Dell X Deloitte X X DISH Network X Dollar General Corporation X Dow Chemical X Eli Lilly and Company X X ExxonMobil Corporation X X GE (General Electric) X General Mills X Guggenheim Partners X Hormel Foods X IBM X Ingersoll-Rand X Intel X Internal Revenue Service X Johnson & Johnson X JPMorgan Chase X Katz, Sapper & Miller X Komatsu Americas Co. X Kraft Foods X Limited Brands X Lockheed Martin X Marathon Oil X Medassurant X Medtronic X Microsoft Corporation X Navistar X Northrop Grumman X Oshkosh Corporation X Otis Elevator Company X X PPG Industries, Inc. X PricewaterhouseCoopers X X Procter & Gamble Company X Raytheon X X Saint Gobain Containers X Samsung Electronics X Sears Holdings Corporation X X Shell X Sun Microsystems X United Technologies Corp X US Airways X Walgreens X WellPoint X Xerox Corporation X

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Bringing Students and Industry Together: How and When?

The center offers a variety of opportunities for students and industry to come together to share their interests and express their experiences. This priceless engagement provides an avenue for networking, recruiting and exchanging information in a relaxed environment. The following provides a brief timeline of the key events available in a typical two year graduate program.

Enroll in MTM/GSCMI

Courses

Network at Fall

Operations Conference

Acquire Summer

Internships

Expand your Global resume

with an International Experience

Collaborate with Industry

through Project Courses

Network at GSCM Spring Conference and Case

Competition

1st Year Summer 2nd YearAcquire

Full-Time Position

Student Involvement

29

Student Volunteers The Centers offer occasions for students to experience action-based activities which give real-world experience and provide unsurpassed preparation for them to assume leadership roles. Over the past year, we have had nearly 50 MBA and undergraduate students take time out of their busy schedules and away from studies, to help make our many events and activities successful. We salute our many amazing student volunteers!

Event Team LeadersLukas Morawski, MBA 2009, Center GAAnubhooti Pareek, MBA 2010Anisha nanda, MBA 2009Samir Sahoo, MBA 2010 naresh Kumar, MSIA 2009 Preston Lehman, MBA 2010Bhavish Bhatia, MBA 2010Tashi yangzom, MBA 2010 Mark Wolfred, MBA 2010, Center GA Saideep Kolar, MBA 2010 Other Student VolunteersScott Barnes, MBA 2010 Anuj Bathla, MBA 2010Rashmi Bijai, MBA 2009Rho Cauley, MBA 2009, Center GAErin Boley, MBA 2009nikhik Butala, MBA 2010Michael Culpepper, MBA 2010Gaurav Dasgupta, MBA 2010Upendra joshi, MBA 2009Deepa Harshey, MBA 2010Miguel juraidini, Undergrad 2009Meeta Kasan, MBA 20010Eric Kennedy, MBA 2010

jayme W. Khoo, MBA 2010Roman Kita, MBA 2009, Center GA Saideep Kolar, MBA 2010naresh Kumar, MBA 2009Preston Lehman, MBA 2010yu (MeiMei) Liu, MBA 2010Vineet Mahajan, MBA 2010Ryan McCombs, MAB 2010Ulka Malekar, MBA 2010Ryan McCombs, MBA 2010Anisha nada, MBA 2009Mike Owusu, MBA 2010Anubhooti Pareek, MBA 2010jay Vijay Pathare, MBA 2009Giovanna Povis, MBA 2010Kousthub Raghavan, MBA 2010Pankaj Raut, MBA 2010Sarath Sambandam, MBA 2010Alexander Schmidt, MBA 2010Apurva Sethi, MBA 2010Rashmi Singh, MBA 2010Alan Siu, MBA 2010, Center GA Senthil Sivakumar, MBA 2009Michael yingfei Tang, MBA 2010Mico Trkulja, MBA 2009Arjun Venkataraman, MBA 2010

Mark WolfredCenter Graduate Assistant MBA Class of 2010

Mark Wolfred is currently pursuing his MBA at Kran-nert with a concentration in Operations and Finance. He graduated from Purdue University with a Bachelor of Science in Industrial Engineering in 2006.

This summer, Mark will be working as an operations intern with Amazon.com.

1st Year Summer 2nd Year

30

IMSA Plans for a Future as OSCOAfter several years of declining participation in the undergraduate student organization, Industrial Management Student Association (IMSA), the hearty but few remaining members came forward in 2008-9 proposing a change in name and an expansion of the organization mission to broaden student appeal. The new organization – formerly known as the IMSA, is now OSCO – the Operations and Supply Chain Organization. The change in name provides not only an opportunity to open the club up to a greater understanding of what the group’s focus is all about, but it also aligns more closely with the newly revised undergraduate curriculum and the strengths of the Krannert program. While 2009-10 plans for the re-vamped student club are still under construction, hopes are high that the change in name will bring a fresh start for all those who share an interest in managing in manufacturing and supply chain settings. A call out for executive board elections will take place in early fall, under the leadership of past IMSA president, Mitch Tharp. If you or your firm is interested in helping support the launch of the new OSCO club in 2009-10, please contact OSCO Advisor and DCMME/GSCMI Managing Director, Mary Pilotte at gscmi@purdue.edu to discuss opportunities further.

Alan Siu Center Graduate Assistant MBA Class of 2010

Alan is pursuing his MBA with concentrations in Operations/Supply Chain Management and Management Information Systems. Alan is also VP of the Krannert Operations Club & VP of the Krannert Chinese Business Association.

Alan will be working at Dell as a summer intern in their Business Operations Department during the summer of 2009.

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LUKAS MORAWSKI, MBA Class of 2009PRESIDEnT, Krannert Operations Club (2008-2009)B.S. Mechanical Engineering, Villanova University, Villanova Pennsylvania, 2004

Lukas has concentrated his studies at Krannert in the function areas of Opera-tions and Finance. This past summer, Lukas was able to apply what he has learned in the classroom during his internship at Sikorsky Aircraft Corporation. Working in the Precision Components group on several projects, he was primarily

focused on gear capacity planning, running and analyzing the impact of sourcing and capital planning decisions on the business. Prior to starting at Krannert, Lukas was working for Ameri-can Axle and Manufacturing (AAM) in Michigan. He initially worked as a Project Engineer in one of AAM’s forging facilities, and then as a Production Supervisor at one of AAM’s component and assembly plants. Lukas is excited to be returning to Sikorsky full-time in the summer, joining their MBA Leadership Development Program.

PRESTON LEHMAN, MBA Class of 2010InCOMInG PRESIDEnT, Krannert Operations Club (2009-2010)B.S. Industrial Management, Purdue University, 2005

After graduating Preston joined Hormel Foods as a Production Supervisor. Preston worked for Hormel Foods at their Austin Plant in Minnesota for 3 years before returning to Purdue to pursue a Masters in Business Administration. He is concentrating his graduate studies at Krannert in Supply Chain Management.

This summer Preston will be interning at Cummins in Columbus, Indiana. He will be working on projects to reduce the energy consumption at Cummins’ manufacturing facilities.

Krannert Operations Club The mission of Krannert Operations Club is to provide MBA students focused in operations, manufacturing or supply chain management career interests, to increase the industry exposure needed to be effective managers in the workplace. This is accomplished by hosting and sponsoring guest speakers, kaizen events, plant tours, case competitions, workshops, meetings with alumni, and numerous leadership opportunities.

Summary of Events for the 2008-2009 Academic YearThe Krannert Operations Club continued their mission this year by touring four facilities and hosting several executive visits. KOC assisted in leading fall and spring DCMME/GSCMI events with Center staff and faculty. KOC brings together like minded students for unique engagement opportunities across a broad range of industries.

President

Preston LehmanVP Treasury

Anubhooti PareekVP External Affairs

Alan SiuVP Internal

Francis Wong

The Krannert Operations Club will continue in 2009-10, to focus on providing opportunities for its members to interact with local businesses and industry leaders. Events that support this initiative include plant tours, guest speakers and participation in case competitions. The club will setup plant tours at least every 8 weeks to ex-pose students to unique industries and facilities. Once a month, the club plans to have a guest speaker come to Rawls Hall and provide insight on industry trends in Supply Chain and Opera-tions Management. Operation Club members participated in 4 case competitions in 2008-09. The club is looking at participating in 2 additional case competitions next year, one of those being an international competition. For more informa-tion on how your firm can get involved with the Krannert Operations Club, email club advisor Mary Pilotte at gscmi@purdue.edu, with “Get Involved” in the subject line.

September 2008• Club Information Session• IBM Global Business - Green Supply Chain Presentation• Krannert Alumni Brad Feuling, Kong and Allan – Presentation on Operations and Supply Chain Consulting in Shanghi, China• Internship Panel

October 2008 • DCMME Fall Operations Conference & Student Internship Poster Competition• Team Competed – University of Michigan Global Operations Case Competition

November 2008 • Team Competed – Carnegie Mellon, Tepper School of Business International Case Competition• Kimberly-Clark Plant Tour

December 2008• Subaru Plant Tour

January 2009• Mary Pilotte – Opportunties in Operations Presentation

February 2009• GSCMI Spring Conference & MBA Case Competition

March 2009• Fairfield Manufacturing Plant Tour

April 2009• Team Competed – Midwest Decision Sciences Institute Student Case Competition at Miami of Ohio• FedEx Facility Tour

May 2009• 3 Teams Competed – MIT Sloan’s Operations Simulation Competition

2008-2009 Newly Elected Officers

KOC VISION

Ananth IyerSusan Bulkeley Butler Chair in Operations Management and Director, DCMME and GSCMIPh.D., Industrial and Systems Engineering, Georgia Institute of Technology, 1987

Professor Iyer was named Purdue University Faculty Scholar in 1999. His teaching and research interests are operations management and

logistics. Professor Iyer’s research currently focuses on analysis of the impact of promotions on logistics systems in the grocery industry, and analysis of the impact of competitors on operational management models.

Faculty Interests

We are grateful for the many faculty at Krannert who participate in center sponsored events, projects and research. Thanks to each of them for their efforts to progress the study of operations and global supply chain management.

Should your company be interested in research related to a particular faculty member, please feel free to contact the center to learn more about opportunities for engagement.

Tom BrushPh.D., Economics and Business Administration, University of Michigan, 1990

Professor Brush teaches courses in stra-tegic management and manufacturing strategy. His research interests in the area of manufac-turing strategy include

the management of international plant networks, plant location for multinational firms, supplier relationships, and the transfer of capabilities such as flow manufacturing within firms.

Suresh ChandPh.D., Industrial Administration, Carnegie Mellon

Professor Chand teaches operations management. His current research interests are in the areas of production lot sizing and scheduling

for multiperiod production inventory problems with varying demand forecasts. Professor Chand has been with Krannert since 1979. He is currently associate editor for Management Science, area editor for Production and Operations Management, and senior editor for Manufacturing and Service Operations Management.

Vinayak DeshpandePh.D., Operations Management, Wharton School, 2000

Professor Deshpande teaches operations management. His research interests are in the areas of supply chain coordination, service parts

management, and contingency logistics systems. His other topics of study include military applications and inventory models.

Joice HuPh.D., Operations, Case Western Reserve University, 2006

Professor Hu joined the Krannert faculty in 2006. Her research in-terests are supply chain management, service operations manage-ment, coordination of

operations with finance, and operations management applications of the eco-nomics of industrial organizations.

Greg HundleyProfessor of ManagementPh.D., Industrial Relations, University of Minnesota, 1981

Professor Hundley’s interests include human resource management, compensation and reward, international human resource man-agement, and entrepre-

neurship. His current areas of research include strategic human resource management, self employment, and international compensation.

David HummelsPh.D., Economics, University of Michigan, 1995

Professor Hummels’ teaching interest is in in-ternational economics. His research focuses on empirical investigations in international trade, with a special emphasis

on product differentiation, barriers to trade, and the effects of transportation and infrastructure on trade and econom-ic development. His most recent work, funded by the national Science Founda-tion, focuses on the effect of disruptions to international commerce, such as those caused by the 9/11 attacks, and the West Coast port lockout.

Karthik KannanPh.D., Information Systems, Carnegie Mellon University, 2003

Professor Kannan’s teaching interests include database management, electronic commerce and tele-communication.His current research

focuses on markets and pricing of infor-mation goods/services, and economics of information security.

32

Aldas KriauciunasProfessor of ManagementPh.D., Corporate Strategy and International Business, University of Michigan, 2004

Professor Kriauciunas teaches interna-tional strategy and strategic manage-ment, organizing the classroom more like a meeting than

a lecture. His research focuses on understanding factors impeding and assisting firm-level change.

Yanjun LiPh.D., Operations Research, Carnegie Mellon University, 2002

Professor Li’s teaching interests include management science, statistics, production, optimiza-tion models, and al-gorithms. His current

research includes discrete optimiza-tion and application, approximation algorithms, network and graph, loca-tion and distribution, vehicle routing, lot sizing and scheduling, inventory and supply chain management, and financial optimization.

Jackie ReesPh.D., Decision and Information Sciences, University of Florida, 1998

Professor Rees’ teaching interests include principles of MIS, database man-agement systems, data mining, deci-sion support systems

and information security. Her current research interests include genetic algorithms and machine learning, information security, and complex systems.

Byung RoProfessor of ManagementPh.D., Accounting, Michigan State University, 1976; M.B.A., Accounting, University of California; M.A., Business Administration, Seoul National University B.A., Business Administration, Yeungnam University

Professor Ro teaches financial accounting. His current researchinterests include the information content of accounting data withrespect to the capital

market variables, accounting method change/choice, managerial compensa-tion, corporate restructuring, fair value accounting, and firm valuation.

Mohit TawarmalaniPh.D.,Industrial Engineering, University of Illinois, Urbana-Champaign, 2001

Professor Tawar-malani’s teaching interests are determin-istic and stochastic operations research, logistics, production planning, engineering

economics, statistics, and decision analysis. His research interests include mathematical programming, complex-ity and approximation, and symbolic computing.

Jim WardPh.D., Operations Research, Carnegie Mellon University, 1980

Professor Ward’s primary teaching interests are logistics and capacity planning systems. His current research interests include inventory-

distribution system design, location models, and interactive computing.

How many ways does your contribution enrich the university? 19 industry executive presentations

23 students participating in the Fall operations Conference summer internship poster competition 120 students attending Industry Information session 266 students participating in the Spring GSCMI Conference

13 students participating in the Global Internship India 105 2009 MTM & GSCM Certificates awarded

58 MTM/GSCM Certificates awarded 2009 58 Students participating in industry plant visits

16 Faculty involved in research and our Center endeavors

678 Ways and Growing!

33

Learn how you can continue to be involved in Center

activities and events! Don’t forget to stay in touch!

We want to hear what initiatives or activities your

company is focused on operations and/or supply

chain. Email us at: gscmi@purdue.edu.

2008 Devos Research Award RecipientsCongratulations to Professor Arnab Bisi and Dr. Yu Hu for being awarded the annual Devos Research Award.

Their research topics, Global Supply Chain Management with Unknown De-mand Distribution and Website Features and Online Shopping: How Technology Usage Impacts Consumer Demand, were highlighted in the 2008 Fall Operations Conference research segment. We look forward to sharing with everyone next year, the 5 year history of this extremely beneficial annual research grant, courtesy of the Devos family.

Krannert School of ManageMent

The Dauch Center for the Management of Manufacturing Enterprises (DCMME)

and

Global Supply Chain Management Initiative (GSCMI)

Mary Pilotte, Managing Director Krannert Building, Room 413

403 West State StreetWest Lafayette, In 47907-2056

765-494-2860 www.dcmme.orgwww.gscmi.org

gscmi@purdue.edu