Subjects considered by Operations Management and Industrial Engineering can be divided into two broad areas: those relating to the design of systems and those related to the operation of systems. In this section we consider subjects related to design. The subjects considered parallel the Excel add-ins available for computational procedures. Details of the algorithms may be found in the Computations section of this site.
Unit Investment Economics

Inevitably there will be more than one design that fulfills the function of a proposed system. In order to select one, there must be some criterion with which the alternatives can be compared. An important aspect is the economics of the design. Design decisions result in several economic effects. If the design is selected, some investment is required to install the system. After installation, the system will operate over a period of time while revenues are generated and operation costs are expended. If alternative designs are to be compared it is necessary to integrate the various costs and revenues associated with the design. This section describes procedures associated with time-value of money comparisons.
Unit Facility Layout

A plant may be viewed as a large number of finite geometric areas arranged on the floor space of the building. The problem of arranging these areas in an effective manner is the facility layout problem.
Unit Process Flow Analysis

In this section we construct a flow analysis model that describes the processes, operations, machines, raw materials, and resources associated with production. Flow analysis is an abstraction of the production process that neglects the detail concerned with individual items of product, but considers the collection as a flow. Thus most of the parameters of the model relate to averages over time. Although certain responses of the system are lost with flow analysis, a number of questions important to system design and operation can still be addressed.
Unit Project Management

A project involves a collection of activities that must be performed to accomplish some goal. Often there are precedence relations that require that before some activities may begin, others must already be completed. An important aspect of project management is scheduling the activities in time. This section provides formulas for computing early and late times for each activity in a project.

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Operations Management / Industrial Engineering
by Paul A. Jensen
Copyright 2004 - All rights reserved