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 Manufacturing System and Supply Chain Design  posted by  duggu   on 1/2/2008  Add Courseware to favorites Add To Favorites  
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Simchi-Levi, David, and Stephen Graves, 15.763J Manufacturing System and Supply Chain Design, Spring 2005. (Massachusetts Institute of Technology: MIT OpenCourseWare), (Accessed 11 Jul, 2010). License: Creative Commons BY-NC-SA

Digital camera supply chain.

The digital camera supply chain as seen in session 11. (Image by Prof. Stephen C. Graves.)

Course Highlights

This course features a sample of lecture notes as well as a set of class readings.

Course Description

15.763J focuses on decision making for system design, as it arises in manufacturing systems and supply chains. Students are exposed to frameworks and models for structuring the key issues and trade-offs. The class presents and discusses new opportunities, issues and concepts introduced by the internet and e-commerce. It also introduces various models, methods and software tools for logistics network design, capacity planning and flexibility, make-buy, and integration with product development. Industry applications and cases illustrate concepts and challenges. The class is recommended for anyone concentrating in Operations Management, and is a second half-term subject.

Technical Requirements

Microsoft® Excel software is recommended for viewing the .xls files found on this course site. Free Microsoft® Excel viewer software can also be used to view the .xls files.


 Course Outline and Assignments

This class will be a mix of lectures, case discussions and applications. The course objectives are to develop modeling skills and to provide new concepts and problem-solving tools, applicable to the design of manufacturing systems and supply chains.

Note: 15.762J offered in H1 is not a prerequisite for 15.763J in H2. Nevertheless, 15.762J should be very helpful for this class.

Course requirements are to come to class prepared and ready to participate in the class. There will be a number of group assignments throughout the class. The grading will depend on the assignments and contribution to the class. We recommend the following book, and will suggest complementary readings throughout the class:

Simchi-Levi, David, Philip Kaminsky, and Edith Simchi-Levi. Designing and Managing the Supply Chain. 2nd ed. New York, NY: McGraw Hill, 2003. ISBN: 0071410317. (SKS)

We also recommend and suggest the following books as useful references or complements:

Hopp, Wallace and Mark Spearman. Factory Physics. 2nd ed. Boston, MA: Irwin, 2000. ISBN: 0256247951. (HS)

Nahmias, Steven. Production and Operations Analysis. 4th ed. Boston, MA: Irwin, 2000. ISBN: 0072417412. (N)

Chopra, Sunil and Peter Meindl. Supply Chain Management. 2nd ed. Upper Saddle River, NJ: Prentice Hall, 2004. ISBN: 013101028X. (CM)

Shapiro, Jeremy. Modeling the Supply Chain. Pacific Grove, CA: Duxbury, 2001. ISBN: 0534373631. (S)

Silver, Edward, David Pyke, and Rein Peterson. Inventory Management and Production Planning and Scheduling. 3rd ed. New York, NY: Wiley, 1998. ISBN: 0471119474. (SPP)

As a supplement to the class we have invited a few guest speakers for a public seminar series on supply chain planning. We expect to hold these seminars about once every two or three weeks.

The written assignments are to be done by groups. Each group must have at least three and no more than four students. Each group needs to stay together for the term.

Written assignments Due dates PointS
Manzana Insurance Session 3 15
Transportation National Group Session 8 15
Metal Work Session 10 30
Seagate Session 13 15

Each group must submit the Metal Works case and two other written assignments of its choosing: each assignment should be no more than 4 typed pages, no smaller than this font (Times, 12 point); 2-3 pages should be sufficient for most assignments.

In addition there are four small assignments.

assignments Due dates Points
Queuing Modeling Session 5 10
Logistic System Design Session 11 10
Procurement Game Session 14 10
Capacity Planning and Flexibility Session 15 10

Students are encouraged to participate in class. Individual students can earn up to three points from their participation. We will judge class participation based on the quality of answers given to posed questions, contributions to a discussion of case material, and questions raised by the student.

Academic Honesty

The rules of the MIT Faculty state: "The attempt of any student to present as his or her own the work of another, or any work which he or she has not honestly performed, or to pass any examination by improper means, is regarded by the Faculty as a most serious offense, and renders the offender liable to immediate expulsion. The aiding and abetting of a student in any dishonesty is likewise held to be a great breach of discipline."

In the context of this class, we expect you to work in groups, but groups should work independently and should not consult with each other about a particular assignment. Also, several of the cases have been used in prior years. We regard as inappropriate any substantive consultation with students from prior years about a particular assignment. We also regard as inappropriate any use of notes or videos from prior years.

If you are uncertain about any aspect or instance of this policy, please ask one of the instructors for clarification.


1 Introduction and Course Overview Prepare case: Use of a Queueing Model to design a lean system.

Case illustrates use of simple model to line design decisions.
2 Manufacturing System Design

Class will introduce and discuss key topics in manufacturing system design by means of an example: design of a PC production facility, including choice of assembly configuration, set up of material handling system, capacity sizing.
3 Manufacturing System Design: Service Systems Prepare case: Manzana Insurance-Fruitvale Branch
4 Supply Chain Design I  
5 Manufacturing System Design: High volume automated lines - choice of buffers and buffer sizing

Guest speaker: Dr. Mitchell Burman, Analytics, Inc. Boston MA. In this class we will hear about various projects on the analysis and design of automated production lines with finite buffers.
Queuing Modeling Assignment due
6 Supply Chain Design II  
7 Decentralized Distribution Systems  
8 Revenue Management Prepare case: Transportation National Group

Case examines pricing issues for trailers.
9 Guest Speaker  
10 Pricing Strategies  
11 Design of a Supply Chain for a New Product Logistic System Design Assignment due
12 Guest Speaker: Mike Romeri, Lead Director, Process Technology Group at PRTM  
13 Flexibility and Capacity Planning Prepare case: Seagate Technologies: Operational Hedging

Case illustrates capacity hedging strategies.
14 Internet Based B2B Procurement Strategies Procurement Game Assignment due
15 Flexibility and Capacity Planning Computer exercise

Capacity Planning and Flexibility Assignment due
16 Class Summary and Wrap Up   Tell A Friend