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ISQA 459/559Production Planning & ControlProfessor Mellie PullmanWinter 2009Thursday 5:40-9:20 PM

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Today’s Activities

• Introduction• Syllabus & Important

Dates• What is Production

Planning & Control?• Demand Management

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You can call me:

• MellieOR• Dr. / Professor Pullman

Office hours:Wed: 4:00-5:30 PM

or by appointment

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Course Format

• Allowed 10 minutes break per hour of teaching– 5:40 to 7:10-ish PM– Break 20 min– 7:30-ish to 9-ish PM

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My Background• BS &MS (Mechanical Engineering-

Alternative Energy Systems)• MBA & Ph.D. (Operations Management

& Marketing Models)• Work Experience

– Engineer– Brew-master– Landscape Contractor– Quality Manager for Black Diamond

Mountaineering & Ski Products– Consulting

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Consulting :Product & Process Design

– Cirque Du Soleil – Hotels & Airports

• Boutique Hotels• Hyatt• O’Hare International

– Ski resorts– Black Diamond

Mountaineering – Nestle – Vodafone

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• 15 years covering many types of classes– Supply Chain Management– Operations Management– Global Management– Simulation & Modeling– Entertainment Management– Service Operations Management

• Cornell, London Business School, Colorado State University, Southern Methodist University, University of Colorado, and University of Utah.

Teaching

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Other fun facts…

• Writing & publishing articles & books

• Traveling, rock climbing, skiing (Nordic racing, telemarking & back-country) cooking and checking out food producers, wineries, breweries, and restaurants.

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What about you?• Please spend a few minutes filling out

this index card with:– Your preferred first name

(& last name)– Contact email – Where are you from?– Work experience– Your dream job & a local company

that intrigues you (someplace you would like to visit)

– Fun facts about you (things that you would be doing if you weren’t working or in school)

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Tell your neighbor about yourself• Your neighbor will introduce

you to the class(don’t read the card, tell us the

significant things you remember about the person after your discussion)

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Course Description• Understanding the role of

production planning in the operations strategy of the firm,

• Understanding the mechanics of developing production plans,

• Developing basic computer skills (spreadsheets) for planning and other activities,

• Learning how to communicate goals and schedules across an organization.

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Specific Topics

• in-depth analysis of integrated operations management systems:– Forecasting– Operations planning and control– Material requirements planning– Master production scheduling– Capacity planning– Just-in-time/Toyota Production

System – Job Shop Scheduling

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The Classroom Mix

• Lectures, Case Discussions, Games & Classroom Exercises

• Guest Speakers• Field Trips

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Intellectual ContributionsIndividual Activities

3 Homework Problem Sets

25%

Integrative Quiz-3 parts

25%

Class Participation 10%

Toyota Case & Field Trip Write-up

10%

Case: Greaves Brewery

10%

Group Activities

In Class Games write-up & performance

20%

Total 100%

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Individual Work

• 3 Problem Sets (25 %)– Problem Set 1(1/22)– Problem Set 2 (2/12)– Problem Set 3 (3/12)

• 2 Cases (20%)– Greaves Brewery (next

week)– Toyota Case & Field Trip

• 3 Part Quiz (25%)

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Problem Sets• Applications of all methods• Good practice for work

environment• Homework format

– Typed and complete sentences – Well organized and labeled

Spreadsheets– Consider that your evaluator is

a work supervisor

• Late homework 50% penalty

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Extra Credit • Interesting current articles

brought in for class discussion on relevant topics will contribute extra credit to your participation points. – Newspaper– Popular press– Internet

• 5 points max

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Group Activities (Team of 3 people)• Game Preparation &

Performance(20%)– Lamson Corp (next week) – Again Agame– B’s Wax Candle– Shell Game Job Shop

Scheduling

• You will evaluate your team members participation at the end of the quarter.

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Class Etiquette• Laptop should be used for

working on computer exercises only,

• Calculators will be very helpful for in-class exercises,

• Cell phones/Blackberries/etc. should be turned off for class periods,

• Please be respectful of your classmates and professor by listening when they are talking and not creating side conversations.

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Laptops & In-Class Games

• One person from your team should have pre-loaded the template for the day’s simulation game.

• Please come prepared for all games with a full understanding of the instructions and a strategy.

• You will not be able to keep up with the fast pace if you come in clueless.

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Teaching Philosophy• Classes are not professor versus

student. They are professor and student trying to achieve the same goal – preparing the student for the working world.

• I will expect that you are putting time into this class outside of our meeting times. For instance, I will expect that you have read the assigned readings and done the homework before class.

• If you ever are wondering why I have structured the class a particular way or given a particular assignment, ask me. Often, the answer may help you better understand the material and the goals of this class.

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REQUIRED MATERIALS• 1. The Fundamentals of

Production Planning and Control, by Stephen N. Chapman, published by Pearson Prentice Hall. ISBN-0-13-017615-X. (Henceforth referred to as “Text”) Price ranges from $40 (used) to $71 (new) at bookstore.

• 2. Cases Packet (Required) available at Copy Center

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Challenge Level• This class

– is very challenging – requires your full engagement and

preparation– will prepare you for a real planning job– Will take your spreadsheet skills to

new heights– Is not for people looking for a easy ride

• Please drop this class if you do not feel like you will have at least 4 hours/week (outside of class) to allocate to working on readings and spreadsheet problems.

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Production Planning and Control

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Operations & Supplier Capabilities and Production Plan

• Who ?• What ?• Where ?• When ?

Right Quantities of

Materials

Arrive at the right

time

Arrive At the right

place

To supportProduction &Distribution

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Specific Production Strategy creates different planning needs

• Make-to-Stock• Assemble-to-order• Make-to-Order• Engineer-to-Order

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Make-to-Stock

• Issues around– Planning for Materials– Planning for Production– Inventory Management– Potential waste and cost issues around poor planning?

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Assemble-to-Order

• Issues around– Planning for Materials– Planning for Production– Inventory Management– Potential waste and cost issues around poor planning?

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Make-to-order or Engineer-to-order

• Issues around– Planning for Materials– Planning for Production– Inventory Management– Potential waste and cost issues around poor planning?

Firebikes Custom Bikes

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Trends influencing Production Planning & Control• Internationalization

– World wide manufacturing network

– Plug & Play manufacturing

• Role of Customer– Responsiveness (product &

process flexibility)– Improved Service– Mass customization

• Variety• High Volumes

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Sales & OperationsAggregate Plan

Master Production Scheduling

Resource Planning Demand Management

Detailed CapacityPlanning

Detailed Material Planning

Material & Capacity Plan

Shop Floor Systems Supplier Systems

Direction Setting(long term)

Engine(mid term)

Back end(Short term)

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Class break

• Please form a 3 person team for group activities

• I will take your photograph to put on your index card. (Note: If you have been in my class before, I don’t need your photo).