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IELM 2010 Industrial Engineering and Modern Logistics
Instructor: Ajay Joneja, room: 5537, phone: 7119
Course materials: www://lmes.ust.hk
TA: Terence Cheung Chong Mo
References: Notes (posted on web-site)Readings (posted on website)
Grading: HW (10%); Reading report (10%); Exam 1 (40%); Exam 2 (40%); Bonus for class participation: 3%
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Mechanical Engineers make … machines,
Electrical engineers make … electronics,
Civil engineers make … buildings, bridges,
Industrial engineers make … decisions
What is Industrial Engineering
The Engineering of making smart decisions
Decisions about what?
The design, installation and operation of integrated systems
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Examples of Systems
Financial systems
Production systems
Supply chains and Logistics systems
Service systems
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Some Industrial Engineering graduates
Tim Cook, CEO of Apple Inc. B.S. IE, Auburn University, 1982
Mike Duke, CEO of Wal-Mart B.S. IE, Georgia Institute of Technology, 1971
Chad Holliday, Chairman of Bank of America B.S. IE, University of Tennessee, 1970 Former Chairman and CEO of DuPont
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Industrial Engineering practice at Walt Disney
http://www.youtube.com/watch?v=krCjsxDhNyM
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Industrial Engineering in Hong Kong
In the 2002/03 Budget Speech, the Hong Kong Government identified four pillar industries: Financial service Trading and logistics Tourism Producer and professional services
In the 2014 Policy Address, Chief Executive C. Y. Leung highlighted the following IE-related industries Financial service Logistics industry Innovation and technology Industries
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Industrial Engineering in Hong Kong
In 2010, the four industries generated value added of HK$988.4 billion (or 58% of GDP), employed 1,690,200 persons (or 48.2% of total employment)
Financial service
Trading logistics Tourism Services
value added(HK$m)
262,000(15.4%)
434,500(25.5%)
74,600(4.4%)
217,200(12.8)
employment 219,500(6.3%)
785,900(22.4%)
218,100(6.2%)
466,700(13.3%)
per capita VA(HK$m) 1.19 0.55 0.34 0.47
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Agenda for the course
Week Topic (technique)
1 Introduction & background
2 Planning of systems (spanning trees)
3 Transportation (shortest paths)
4 Logistics planning (maximum flows)
5-6 Production and operations planning (LP, MILP)
7 Mid-term
8 Random variations (probability basics)
9 Managing quality (statistics)
10 Supply Chain Management basics (inventory)
11 Managing inventory (EOQ)
12 Managing inventory (Newsvendor
13 More randomness (queues)
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Expected learning outcomes
Upon successful completion of the course, you will be able to:
Identify the main components of modern logistics systems and why/how they developed to their current state
Model and solve operations decisions problems
Model and solve decentralized decision problems
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Reading
You are required to read at least one book from the reading list
Write a two-page report on the book (all submissions will be checked by Turnitin® for plagiarism prevention)
The reading report is due on midnight, April 29
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Reading list
• The Goal– By Eliyahu M. Goldratt– A novel on process improvement and Theory of
Constraints– An IE classical
• Predictably Irrational– By Dan Ariely– An easy reading book on behavioral economics
and human decision biases– A more advanced book is Daniel Kahneman’s
Thinking, Fast and Slow
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Reading list
• Outliers: The Story of Success– By Malcolm Gladwell– To understand how outliers become outliers– A great book and New York Times best seller
• The Machine that Changed the World– By Womack, Jones and Ross– On Japanese manufacturing systems, called “lean
production”– An IE classic
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Reading list
• The World Is Flat– By Thomas Friedman– A book that analyzes globalization in the early
21st century and, in particular, global supply chains.
• Some book on big data– You may suggest a popular book related to big
data– Your suggested book must be approved by the
instructor before the end of add/drop period
?
Example: Choices, values, frames by Kahneman & Tversky
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Early history of IE
1730-1800’s: Industrial Revolution organized factories
James Watt
The BBC animation of Watts’ single acting engine is here.
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Historical Landmarks
1730-1800’s: Industrial Revolution organized factories
James Watt
The BBC animation of Watts’ single acting engine is here.
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1776: Adam Smith specialization of labour
Historical Landmarks..
- Advocated free trade
- ‘Fair’ prices set automatically in markets under competition, (the ‘Invisible hand’)
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1832: Charles Babbage division of labourorganization of work
Historical Landmarks...
Reconstruction of Babbage’s Difference Machine(precursor of the modern computer)
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Historical Landmarks….
1800s: Henry Maudslay Interchangeability
- Interchangeable components for manufacture of rigging blocks
- Also introduced standard sized screws-nuts
Main requirement: Repeatable, Precision machining
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1900s: Frederick Taylor mass production Frank and Lillian Gilbreth time and motion study
Historical Landmarks…..
Taylor
Taylor’s principles of Scientific Management:
1. Divide each task into parts, develop the best way to do each part;
2. Select the best person to do the each part;
3. Train, teach and develop the worker;
4. Provide financial incentives to follow the methods;
5. Managers plan the activities, and workers execute the tasks.
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1905-1920: Henry Ford mass production
Ford Model T
Historical Landmarks……
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1900-1920: Andrei Markov Markov chains Agner Erlang Queueing Theory
Basis for: queues, inventory control,stock prices, forecasting,…
Historical Landmarks…….
Markov[source: www.darbyhudson.com]
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~1950: George Dantzig Simplex Methodto solve Linear programs
Applications Production planning, Schedules, …
George Dantzig
Historical Landmarks……..
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1924: Dr. Walter A. Shewhart Statistical Quality Control
1950’s: Deming Quality management
1950’s: Genichi Taguchi Design of experiments
Historical Landmarks………
Applications: Controlling the quality of a process/product
Shewhart Taguchi
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1945-1950: Ergonomics
Historical Landmarks……….
Keyboard designsToys Hazards : • Choking (marbles etc.)• Injury from sharp edge• Poisoning
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1960’s: Ford motor company Ford Mustang(Mass customization)
Historical Landmarks………..
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Further readings
Next topic: facilities planning (graph techniques, minimum spanning trees)
-N/A-