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IE 7315: Production Systems


IE 7315: Production Systems (4 Credits)

Course Syllabus Winter 2015

Dr. Hisham Younis

Class Room:
Office Hours:
Course Websites:

5:30PM- 7:20PM, Tuesdays and Thursdays; STAT 0234 (State Hall)

TBD, Manufacturing Engineering Building (4815 Fourth Street)
by appointment

Teaching Assistant: TBD (

Office Hours: TBA on Blackboard
Official Course

Fundamental theories and concepts in the design and operation of production systems for manufacturing and service
organizations. Topics may include: Inventory Management, Production Planning (MRP, JIT, ERP), Factory Physics,
Production Control, Introduction to Supply Chain Management. Prereq: IE 6210, IE 6560


Recommended -- Applied Engineering Statistics (IE6210) & Deterministic Optimization (IE 6560)

Course Objectives:

Keeping pace and improving a corporation's performance in areas of cost, quality, speed, and customer service is
vital in today's increasingly competitive marketplace. Imitating the practices of rivals or relying on buzzwords and
slogans is not enough to generate a sustainable advantage. Manufacturing firms must be able to identify leverage
points with the greatest impact on the bottom line to achieve world-class performance. This course presents a
framework and a science for diagnosing, improving, and designing effective production systems.
After completing the course, students should be able to:
Explain the effect of variability on production systems
Choose an appropriate production or inventory model for a given situation
Derive the Economic Order Quantity (EOQ) and Newsboy models
Apply (Q,r) inventory models
Use linear programming and dynamic programming to model inventory systems
Explain the concepts involved in Material Requirements Planning (MRP) and Just-in-Time (JIT) production systems
Employ several different forecasting tools to raw data, including exponential smoothing and regression analysis
Understand heuristics available for solving operation scheduling and sequencing problems
Apply basic queuing models to production systems for the purposes of design, diagnostics, and improvement
Students will also be exposed to best business practices and trends in such areas as lean manufacturing, flexible
manufacturing, agile manufacturing, and supply chain management.


Factory Physics, 3/E by Wallace J. Hopp and Mark L. Spearman. Waveland Pr Inc (August 31, 2011). ISBN10: 1577667395. ISBN-13: 978-1577667391
Other Books of Interest:
Nahmias S., Production and Operations Analysis, 4th Edition, Irwin/McGraw-Hill, MA: Boston, 2001 (ISBN:
Quick Reads:
Goldratt E. M. and Cox J., The Goal: A Process of Ongoing Improvement, 2nd Edition, North River Press Publishing
Corporation, 1992 (ISBN: 0884270610).
Goldratt E. M., Its Not Luck, North River Press Publishing Corporation, 1994 (ISBN: 0884271153).


Additional material will be distributed through the course website as needed to complement the material from the textbook.

Prepared by Dr. Hisham Younis for IE 7315: Production Systems at Wayne State University

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IE 7315: Production Systems

Womack J. P., Jones D. T., and Roos D., The Machine That Changed the World: The Story of Lean Production,
HarperCollins, 1991 (ISBN: 0060974176).
Websites: Factory Physics Inc. Production Planning Portal - Production Planning Software - Commercial Throughput Analyzer Software


Grading will be "tentatively" based upon a maximum attainable point total of 535 points.
Term Exams
@ 100 x 2
200 pts
Final Exam
@ 100
100 pts
@ 15 x 6
90 pts
Quiz Manufacturing in America
@ 10
10 pts
@ 40
40 pts
Review Paper (Team Based)
@ 45
45 pts


485 pts

Individual exams, homework, project, topic presentation, and term paper might be curved at the discretion of the
instructor. The actual number of home works assigned might vary depending on class composition and prerequisite
knowledge. Make-up examinations will not be offered unless excused by instructor due to the most extenuating
circumstances such as personal illness, and documentation may be required.
Homework Policy:

Homework assignments will be posted on course website and announced in class. Homework will be due at the
beginning of the class period. Homework submitted late by one class will be evaluated at 50% credit and late by two
(or more) classes will not receive any credit. Homework should be submitted on clean sheets and will be evaluated
based on completeness. Depending on the size of the class and length of the homework, individual homework
grades could be based on randomly sampled problems. When feasible, solutions for homework problems will be
posted on the course website. Students are strongly encouraged to use Excel templates from Book Website to verify
calculations and results. In case the student is unable to attend class for submitting the homework, e-mail the work to
the Teaching Assistant.
Collaboration during the conceptualization and formulation process of homework assignments is allowed. However,
all homework assignments must be completed and written up individually. Violation of this policy will certainly lead to
a failing grade for the homework and action that is more stringent might be taken.

Review Paper:

Each team of 3 students (formed by instructor if requested) is required to identify a topic for the "review" paper and
submit a one page abstract for approval by e-mail to the instructor by March 16th (as well as through Blackboard
course website Digital Drop Box). It is advised that the students review the following journals for selecting a topic:
Journal of Operations Management
International Journal of Operations and Production Management
International Journal of Production Research
Production and Inventory Management Journal
European Journal of Operations Research
It is expected that the group will review "recently" published literature on the topic of interest (using technical literature
search databases such as Axiom and ScienceDirect available through the Science and Engineering Library
homepage at and report their findings in the form of methods employed, trends, recent
applications, success stories, failure stories, and challenges ahead. Absolutely no plagiarism will be tolerated.
Students caught plagiarizing in writing the term paper will be given a failing grade for the course. *** The following
website contains good information on citing sources, plagiarism, and copyrights:
The paper will be evaluated based on technical content (40%), quality of documented references (20%), and quality
of technical writing (40%). The term paper has to be typed and submitted by e-mail for evaluation to the instructor by
April 19th (as well as through Blackboard Digital Drop Box). Detailed guidelines for authoring & formatting the paper
are available on the course website. Individuals that fail to make good contribution will receive no credit. Participation
will be evaluated by peer group members. Groups that utilize the services of The Writing Center at 2310 Adamany
Undergraduate Library (Tel: 7-2544 for appointment) before April 10th will receive 5 bonus points. The Writing Center

To avoid potential problems with your assignments, reports, and projects, it is imperative that you familiarize yourself with report writing
standards, appropriate use and citation of material, and the definition of plagiarism. Plagiarism will be prosecuted fully, including failing the
course/program and remanding the case to student judicial processes. "I didn't know" will not be an acceptable excuse if your report is found
to be plagiaristic. Be aware that the team-based nature of the course extends any penalty to the whole group.

Prepared by Dr. Hisham Younis for IE 7315: Production Systems at Wayne State University

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IE 7315: Production Systems

normally does not give appointments during the last few weeks of the semester.

The project will involve demonstration of your capacity to effectively carryout manufacturing resource planning
activities through a simulation model of a fictitious manufacturing company. In this assignment, you play the role of a
production planner for XXXX Company, and develop a decision support system to help you in that role. More
detailed information is available on the course website along with the Excel template.
The project report (2 to 3 pages of executive summary on overall results and experiences) has to be typed and
electronically submitted (through Blackboard course website Digital Drop Box) for evaluation by April 18th. It is also
expected that completed Excel templates will be submitted (these will be used to check for originality in effort).
Students caught cheating in completing the project will be given a failing grade for the course.

Special Needs:

If you feel that you may need an accommodation based on the impact of a disability, please feel free to contact me
privately to discuss your specific needs. Additionally, the Office of Educational Accessibility Services (EAS)
coordinates reasonable accommodations for students with documented disabilities. The office is located in the
Student Center Building, Room 583, Phone: 313-577-1851 (Voice)/577-3365(TTY).

Attendance Policy:

Without special permission, students attending any given class are required to join the class within the first five
minutes to minimize any class disruptions.


It is the responsibility of each student to adhere to the principles of academic integrity. Academic integrity means that
a student is honest with him/herself, fellow students, instructors, and the University in matters concerning his or her
educational endeavors. Thus, a student should not falsely claim the work of another as his/her own, or
misrepresent him/herself so that the measures of his/her academic performance do not reflect his/her own work or
personal knowledge. In this regard, cheating will not be tolerated. Cheating includes (but is not limited to) any
communication (written or oral) during examinations and sharing of work, such as using the same models or
computer programs or copying work. All assignments and projects must be an individual effort unless specifically
noted. All written assignments and oral presentations are expected to conform to accepted standards for citation
ASSIGNED A FAILING GRADE FOR THE COURSE. Therefore, avoid all appearance of improper behavior! Students
who witness cheating should report the incident to the instructor as soon as possible. Students are also welcome to
discuss any concerns related to cheating with the department Chair. The following site offers some good information:

Withdrawal Policy:

All withdrawals should be done via Pipeline. Select "Withdraw from a Class" on Pipeline menu to withdraw. Here are
some important dates for Winter 2015:

Deferred Grades

Last Day to Drop with Tuition Cancellation

Monday, January 26

Last Day to Withdraw

Sunday, March 29

A grade of 'I' can only be assigned if all of the following criteria are met:
1. the student IS NOT currently failing the class and,
2. there is NOT a substantial quantity of work yet to be completed,
3. there is no extra work required of the instructor beyond the normal duties of grading the paper/exam,
4. there is no need for the student to attend the class in subsequent terms.
The final decision to assign an incomplete grade rests with the instructor. An 'I' grade MUST be made up within one
year of assignment of the grade.

Prepared by Dr. Hisham Younis for IE 7315: Production Systems at Wayne State University

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IE 7315: Production Systems

Tentative Course Outline:



Introduction to the course, structure of classes.

Motivational Exercise: Goldratts Capacity Allocation Problem
PART I: The Lessons of History
Topic: Inventory Management
Special Reading Assignments:
Jan.15 Jan.29
Lee, H.L. and Billington, C. Managing Supply Chain Inventory -- Pitfalls and Opportunities, Sloan
(5 Classes)
Management Review, Spring 1992.
Chapter 17: Supply Chain Management pg. 582-586
EOQ Models One Class
Dynamic Lot Sizing (Wagner-Whitin Model) One Class
Statistical Inventory Models (News Vendor Model and Base Stock Model) One Class
Jan. 13

Statistical Inventory Models (Single- and Multi-Product (Q,r) Models) Two Classes

Feb. 3, Feb, 5
(1.5 Classes)

Feb. 5, Feb. 10
(1.5 Classes)
Feb. 12
Feb. 17, Feb. 19
(2 Classes)
Feb. 23, Feb. 25
(2 Classes)
Mar. 3, Mar. 5
(2 Classes)
Mar. 10, Mar. 12
(2 Classes)
Mar. 16- Mar 21
Mar. 24, Mar. 26
(2 Classes)
Mar. 31
Apr. 2
Apr. 7, Apr. 9
(1.5 Classes)
Apr. 9, Apr. 14
(1.5 Classes)
Apr. 16, Apr. 21
(1.5 Classes)
Apr. 21, Apr. 23
(1.5 Classes)
Apr. 28
Apr. 30

Topic: MRP, MRP II, and ERP

Special Reading Assignments:
Miller, J.G. and Sprague, L.G. Behind the Growth in Materials Requirements Planning, Harvard
Business Review, Sep-Oct 1975.
A Note on Manufacturing Resources Planning (MRPII), Harvard Business Review, Jun 1987 (9687-097).
Topic: JIT
Special Reading Assignments:
Just-in-Time Production Controlled by Kanban, Harvard Business Review, Jan 1984 (9-684-047).
Walleigh, R.C. What's Your Excuse for Not Using JIT?, Harvard Business Review, Mar-Apr 1986.
Topic: What Went Wrong?
1st Exam (5:30PM-7:20PM): Room to be identified
PART II: Factory Physics (Production Modeling/Diagnostics)
Topic: Basic Factory Dynamics
Special Reading Assignments:
Process Fundamentals, Harvard Business Review, Apr 1999 (9-696-023).
Topic: Variability Basics
Special Reading Assignments:
Duggan, K.J. Facilities Design for Lean Manufacturing, IIE Solutions, Dec 1998.
Upton, D.M. What Really Makes Factories Flexible?, Harvard Business Review, Jul-Aug 1995.
Topic: The Corruptive Influence of Variability
Special Reading Assignments:
Suarez, F.F. et al. An Empirical Study of Flexibility in Manufacturing, Sloan Management Review,
Fall 1995.
Topic: Push and Pull Production Systems
Special Reading Assignments:
Bonvik, A.M. et al. A Comparison of Production-Line Control Mechanisms, International Journal of
Production Research, Vol. 35, pp. 789-804, 1997.
Spring Break
PART III: Principles in Practice
Topic: A Pull Planning Framework
CONWIP based Hierarchical Planning Framework One Class
Demand Forecasting One Class
2nd Exam (5:30PM-7:20PM): Room to be identified
MRP DSS Assignment Progress Review & Discussion

Book Reading
3rd Edition
Ch. 0 and 1

Ch. 2: 49-57
Ch. 2: 58-65
Ch. 2: 66-78
Ch. 2: 78-92
Ch. 17: 623-643

Ch. 3: 114-149

Ch. 4 & 5: 155-191

Ch. 6: All of it
Ch. 7: 227-258
Ch. 8: 264-302

Ch. 9: 306-351

Ch. 10: 356-381

Ch. 13: 434-473

Topic: Shop Floor Control

Ch. 14: 481-512

Topic: Production Scheduling

Ch. 15: 516-549

Topic: Aggregate and Workforce Planning

Ch. 16: 553-590

Topic: Capacity Management

Ch. 18: 648-665


Final Exam (5:307:20PM)

Prepared by Dr. Hisham Younis for IE 7315: Production Systems at Wayne State University

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