Lessons Learned from the Llenroc Plastics Experience

Student Evaluations Edited by Peter L. Jackson

School of Operations Research and Industrial Engineering

Cornell University

Sponsored in part by the National Science Foundation Synthesis Coalition for Engineering Education.

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General Appreciation

Thank you for a great course. I really learned a lot.

Overall, this course, and maybe ORIE 410 [[Industrial Systems Analysis]], have been the most educational of my career here at Cornell. I felt like this was an excellent course to wrap up my ORIE undergraduate curriculum with. Teamwork skills and application of technical skills were both well-incorporated into the course content.

I love doing this stuff! The project assignments really motivated me to work long and hard in order to do a really good job. The satisfaction came from the fact that what I got out of the course was how much I put into it. So I gave it all that I had.

OR 416 was one of the best educational experiences I have had at Cornell. It is the closest I have come in school to solving real-world problems. For each case, we used information provided by the company. We then had to be able to detect the problems faced by Llenroc Plastics. For people like me, who want to go into consulting, there is no better experience before entering into the business world. I could really enjoy consulting as a career. I found the cases both interesting and challenging. I gained confidence in my technical knowledge and feel that I could help companies, especially manufacturing companies, with some problems.

The Llenroc Plastics Experience constitutes a very good approach to the type of work one can find in a consulting company. It makes a very good synthesis of all the skills we had to learn in other more specialized courses.

The great thing with this class is that it is a Socratic class where we learn by ourselves, led toward the important points.

It was an excellent class that I really enjoyed.

Overall, I really enjoyed the course. It was a great application of the principles and I would highly recommend the class to my fellow [[major identified]] [students].

Overall, I think the Llenroc experience was valuable. It made OR416 the most interesting class I've taken in the department. I've thought of many positive experiences.

This was one of the best, or the best course that I have taken so far. It was extremely educational, I made some great friends through the teamwork, and I believe I learned some lessons which will be useful for a very long time. Thanks.

I would like to thank you for your time and enthusiasm in providing a great learning experience for me in my last year at Cornell. I have learned a great deal not only conceptually, but socially as well. This is one course that will guide me in my future plans to expand [my family's business]...I was excited to find some of the same conceptual problems in our projects that I was exposed to in the family business. ...In individual cases and on the whole, this class has given me experience that I would not have been able to gain anywhere else with the experience I have or the age I am at...This class is great and I would recommend this elective to every senior, OR or not. This class also gives me something to "act like I know about" during my interviews.

Overall, the course has been satisfying. I am excited to see the shift from theoretical lectures to hands-on case studies, and I hope it continues in the future.

Overall, the class was an excellent exercise and allowed us as students to get an idea of what a real consulting job might entail.

I very much do like team teaching!!

The Llenroc Plastics experience was a good one. It was well planned and organized.

I can say that OR416 has been one of the most valuable and interesting classes that I have taken.

I liked learning by doing - the "hands-on" aspect of the course. I found this to be very effective for most of the material covered in the course / cases. The course was very "real-world."

In general, my class experience was positive and I see no major flaws.... I believe the quality and worth of this class to be outstanding in benefit.

For me, the Llenroc Plastics case was a valuable experience. I worked hard, learned a lot, and had fun. These three things very seldom came together in my academic life.

ORIE 515 has been one of the best educational experiences I have ever had. I would like to begin this essay by congratulating both Professors Jackson and Muckstadt for taking the time to provide an excellent opportunity to learn.... I would like to underscore the fact that the Llenroc experience is an extremely interactive educational experience that provides students a great opportunity to learn. With several minor modifications, it could be even better.

Thanks for teaching such an interesting and beneficial class. This was one of the courses from which I will use what I learned in the workplace. Thanks. Great job!!

I feel that I have gained much knowledge and experience from each of the Llenroc Plastics' cases.

[This?] ORIE class is quite interesting and real-life (to a non-ORIE).

In engineering, hands-on experience is extremely important, since each situation an engineer encounters is unique and must be handled as such. The Llenroc Plastics cases helped us to gain some of that much needed experience....Overall, the class was one of the most useful that I've taken here at Cornell. It allowed for group work, real-world experience (to an extent), and the chance to sharpen both written and verbal communication skills.

Although I did not need to take [this course], I opted to take OR416 because of its reputation, course content, and the professors who were teaching. In retrospect, I am happy with this decision because I have learned how to apply various theories which I have studied to specific company problems... Overall, this course tied together all the main points which my undergraduate curriculum covered by applying theories to a real problem. I feel that I have attained some closure with respect to my curriculum and that I have a clearer understanding of the knowledge and theories which I have studied at Cornell. I found the Llenroc Plastics Experiences to be a very beneficial learning experience. One immediate benefit is that it allowed me to gain additional experience in working with groups and giving oral presentations. Strongly supporting the group interactions are the individual cases, which inspired creative thought due to the cases' real world scenarios.

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Problem Solving

I learned how to turn an average company into one that is world class.

I found out that the problem isn't obvious right away; to get to the top, you have to examine all manufacturing processes, all operational and communicational aspects and also determine the proper layout...

Don't be carried away by buzzwords like kanban [or] JIT. Always think through the problems thoroughly and try to address the crux of the problem and not a side issue.

Most problems have very simple, easy and cost-effective solutions. One just has to apply common sense.

Look beyond the surface. On the surface, things may appear very conflicting and complex.

Good solutions do not necessarily cost a lot.

Often the best solutions to a manufacturing problem are low cost. After examining the various cases, we saw [the] many ways Llenroc could improve had little to do with purchasing expensive equipment. Often the solutions were simply to look at the big picture and have confidence that a solution could be found.

Changes that may seem small, obvious and insignificant can produce big changes in yield and throughput.

Significant improvements can be made to a company through relatively simple and inexpensive changes. These changes often make common sense, but were never investigated [[by the company]] or tried out. So when trying to find the solution to a problem, a simple common sense solution is usually best. The most important lesson I learned is that a simple change can have dramatic results. One must [look for] the potential for obvious and simple improvements.

I found that the fast and simple solutions are the ones that should be sought after the most. More often than not, there are operational improvements that can be implemented immediately at little or no cost. These operational improvements completely change the character of the company without large capital investments.

I realized how easy it was to make several simple improvements on the process without expending lots of money. And most of the time, these small improvements made in every place throughout the process caused a very significant improvement in the overall performance of the company. For example, the improvements achieved through the cyclic scheduling were really significant to achieving a better customer satisfaction by reducing the lead time drastically.

I learned that simple is better. By simplifying, we can more easily understand and control whatever system we are studying. For example, the warehouse distribution plan that was in place at Llenroc consisted of eight warehouses and a complex routing system. By eliminating warehouses, consolidating inventory, and simplifying routing, we were able to identify the true sources of lead time and poor customer service and eliminate them.

Simple actions can save a lot of money and improve drastically production quality.

Working on these cases made me see engineering in a less technical light. I always felt at a disadvantage in college because I have a hard time with technical issues. Much of the work that we did on the Llenroc cases was not technical, it simply required one to think logically and creatively. For the first time, I began to defend my opinions in a group and not back down because I thought everyone else's answers were better or because they were smarter than me. I have gained confidence in my abilities as a thinker.

You cannot simply look at the delivery lead time, but you must look at the big picture; i.e. you must take both the manufacturing lead time and the delivery lead time [into consideration] when improving customer service. When all six cases are looked at together, a considerable improvement in customer service can be seen.

I enjoyed that the real problem was not always evident, that we really had to think to come up with solutions. Each case kept us mindful of the big picture and how each particular case related to the entire operations of the company.

Before performing an analysis of a system, one should observe it working. There were several instances when having seen the warehouse [[and factory?]] and its operations would have made our analysis a little easier.

Optimization was always possible. In Llenroc, there were so many redundant operations. Some of [this] redundancy was not easy to see. This is why we need [collection] and analysis of data. Data collection is critical.

The most important lession I learned from the Llenroc case studies was the importance of organizing and interpreting data. If the data are organized in an intelligent way (which is obviously not trivial) finding the main problem causes becomes much each easier. All the cases had in common the need to read the given data in a logical way. Most of the improvements suggested by us on the reports were originated by interpreting the data, making a few assumptions and doing simple calculations with a spreadsheet.

The way in which data are arranged and presented can be a determining factor in finding optimal solutions for a problem.

While many of the problems seemed to have intuitive solutions, the data presented always seems to have secrets hidden within it. For this reason, attention to the numbers became a valuable lesson learned. Instead of just using common sense, I can now see how "working the numbers' can also provide answers. In order to get to the core of each case, we had to successfully study the data given to us and draw conclusions to get to the problem. That is, general data were given, but we were required to analyze, interpret, and infer meaning from it, eg. determining the bottleneck of the system, comparing rates of machinery, etc. This analytical ability is always valuable.

Approach [every] problem with a systems view. Solutions are never isolated to just one problem. In addition, the most high technology solutions or the most expensive solutions are not necessarily the best solutions. Oftentimes, there are many quick and extremely simple solutions that are just as effective.

When trying to solve a particular problem, look at the system as a whole. Your actions will not only affect what you are working on, but other areas of concern [as well]. Make sure the overall effect is positive.

I learned the importance of taking a systems approach in any problem solving situation. It is very important to understand that most problems that companies face nowadays are a consequence of losing touch with the big picture. Throughout the Llenroc experience I was able to fully comprehend how parts of one case interrelated with parts of other cases and the importance of noticing this. I learned that to be successful as a consultant, one needs to be exhaustive in the search for how changing something can affect everything else.

[I learned a] step-by-step analytical approach to complex problems.

By looking from a different perspective, we can easily identify more problems to tackle. This opens up more opportunity for further investigation and analysis which is very important if we are planning on going to be in the consulting business in the future.

I learned how to look at situations from different perspectives. Often problems involve more than one issue of a current situation.

The most obvious solution to a problem is not necessarily the best solution. Many times in preparing the case studies, my team found that our initial solution could solve part of the problem, but would create other problems along the way. These other problems needed to be dealt with before the original problem can be considered "solved." Often, these issues were discovered when the final calculations were tallied. Then, we needed to go back and correct the problem, causing more work for ourselves. The lesson: make sure to examine how your decision affects the system as a whole.

Many decisions made by intuition actually have a mathematical foundation. When used, this mathematical foundation sharpens the intuitive capabilities. The math is relatively simple and takes little time. However, most of the people I've worked with use their intuition and experience to solve problems, but probably do not know the mathematical foundaitons of their solutions. I enjoyed seeing how the mathematical foundations and intuition could merge to make a better whole.

Never start doing a project the night before. It is so much pain especially at the end of the semester when one does not have enough sleep.

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Teamwork

Being part of a team and learning how to cope with members is an experience in itself.

At first, I resisted the team aspect of the case. I wanted to solve everything on my own, or at least solve a part of the case on my own. Initially, I felt this was the best method. As the study went on, I realized the value of having a group to work with. Often the group was stumped by a problem or headed on the wrong track, when one of the members would come up with a good idea. We often found our best solutions when two or more people were together.

Ensuring that you have a good working relationship with those that you work closest with is extremely important.

Working in a group of six for a whole semester was not an easy task. Getting everyone to do what we planned took a lot of energy and effort.

I learned the importance of organization, not only of yourself but of you as a group. I learned about working as a team to help achieve your group's objectives.

Working through the group dynamics was a meaningful lesson. Learning how to deal with group expectations, slackers, and overall leadership functions are invaluable lessons that will be used in the work place.

The importance of teamwork ... may be the most beneficial lesson I learned from the course....Lack of motivation was the most difficult thing to encounter in people. Because our team was composed out of friendship, teamwork discipline was not the easiest thing to enforce.

I have become more adept a working in groups. The experience I gained is invaluable. Leadership, group dynamics, and planning are several of my skills which have improved because of OR 515.

As a team, the solutions reached were more creative and a lot more details were covered, even though the time to reach them was much more considerable. the division of tasks eased the work for everybody, creating an expert in every part of the problem. By working with the same group all the time, I got the opportunity to make 6 new friends. After sharing long nights and even almost all-nighters and also knowing every single person is doing a good job, you grow fond of each other.

I learned how to lead a team through a structured and organized discussion, while getting something accomplished, [and] how to delegate and hold people responsible for their tasks. I also learned the importance of becoming an expert in the part that I am responsible for and how this can help in a discussion. For example, in the first meeting, we usually brainstormed to get an idea of all the points we had to address in the report and assigned everyone a part of the case. After this one, all the other discussions were much more productive because every person had done some special "homework," either getting some output from the computer or getting questions answered from the professor. When sharing the findings with the team, new ideas and problems were pointed out and discussed.

Working in a "multi-major" team for the whole semester helped me to acquire and improve several managerial skills that I will need in the business world. Among these were how to lead a discussion, how to delegate, how to negotiate (how to persuade and convince my partners that my idea was the best one), and how to give a good presentation.

Team decisions were usually better than individual decisions. I was amazed that the team could analyze so many more scenarios than most individuals could think in about the same amount of time. Not only were more ideas examined, but the solutions reached by the team were usually better than any one individual's solution.

I enjoyed working as part of a "consulting team" throughout the cases. Of course, the incredible level of commitment and intellect on my team admittedly may have contributed [to this enjoyment].

I learned how to work in a team. Team projects require much more cooperation and planning as opposed to individual assignment. Often there are many ideas flowing around during discussions and learning how to compromise with others and to be able to present your own ideas in a very clear and persuasive fashion are very important.

With so many different opinions it forced us to become organized. This was the first class I actually had to have an agenda at team meetings. This factor was also enhanced by our busy schedules. [[Each student was required to submit one report during the semester of a meeting which he or she had led. The report was to contain the agenda and the action items of the meeting, among other details.]]

One of the main lessons learned includes managing meetings, working as a group to achieve specific goals, and dealing with differences among group members about such issues as how to attack a certain problem. The interactions with the groups are by far the most beneficial lessons learned from the cases.

During the first project we started to work on all the sections as a group rather than delegating certain sections to members of the group. The night before the due date, we realized how much time we had wasted and finally separated the project into sections. After staying up all night to complete the project, we all quickly learned that each member of the group needs to take responsibility for a certain aspect of the project in the future.

Make sure you set clear agendas for what each group member should be working on and what the group is working on as a whole. It is very easy to get lost in either direction. You don't want everyone doing the same thing so that work becomes redundant, and also you want to make sure people know what the end result of their efforts should be so they don't waste time on trivial areas.

The diversity of major fields and the differences in schedules of the team members forced us to be effective in our meetings. By the end of the semester we had developed a program of meetings for each case. For instance, everbody had to read the case and think about the solution before the first meeting. Then, during the first meeting, the case was extensively discussed by all the members of the team to assure that everyone had a good understanding of the goal of that case. Generally, during the second meeting, the strategy to follow was developed and if possible, tasks were assigned by pairs. Thus, during the rest of the meetings for that case, all the members of the team were on the same track and working for the same goal. I believe this was essential to our success as a team and I consider this experience very important because the same problems we faced getting together here will occur between members of different departments in every company.

Use the resources of all the group members. Just because you think you have the right ideas, make sure the entire group is allowed their input. Different people look at the same problem from different angles, and a group that works efficiently together can accomplish much more than individuals.

With so many ideas and open-ended questions, brainstorming became a valuable tool in case study proposed solutions. Working in teams proved most useful in implementing this technique. I learned the value of other people's opinions. By combining ideas and different expertise's, we could come up with better solutions than those reached by working separately.

The divergence of team members in expertise and interest are beneficial to the success of each project.

It is important that the consultants [team players] get their act together. First, get organized. Then, study all the information and client objectives. Then, see if the the data you have will let you answer all the pertinent questions. Last but not least, think systemically. Never forget that each aspect of the case being worked on is related to other operating and people systems All need to function together.

This has been the first time I had to work in a team for such a long period. This experience showed very well the increase in performance one can get by making people work together instead of just adding their individual works.

Probably the most important lesson to me was how to function in a dysfunctional group. From the very beginning of the semester our group could not work together. Unfortunately, by the end of the semester the situation was no better. The group situation did not get resolved during the semester. It is only in retrospect that I see how things could have worked better and how I could have encouraged more participation. These cases taught me just how differently people function when placed in a group. Some students want to do all the work and others don't want to do anything. I am glad I had a chance to experience a group like this for the first time in college instead of at my first job.

Working on the cases with other people also made me realize how many solutions there are to a single problem. It always seened the minute we thought of all the possibilities there were ten more to consider. One must always keep an open mind and keep brainstorming until he or she finds what is really the best solution. That solution is not always hard to find either; sometimes the answer is very simple and right in front of your eyes.

I am totally confident in the fact that diversity is one of the main [strengths] of a team. None of us had all the skills and I think we would never have done it without putting our abilities together.

In our team, everybody was coming from different countries, and therefore different cultures with a different way of working. At first, this gave a lot of difficulties... but later became one of our biggest strengths once we managed to understand each other and once we learned to know each other's abilities.

Sometimes it is very efficient and necessary to work in a team [but] it can also make you lose a lot of time: a team has more inertia that a sole person. I think that we know better [how] to get organized more efficiently. I have learned which behaviors to avoid to prevent tensions in a group.

Working in a group does not necessarily ensure the quickest processing time of a problem, but more ideas are thrown out at the beginning. I know that if I had done the cases by myself, I would not have thought of most of the solutions that my team proposed in our cases. Also, the team keeps you in check by making sure that you are not cutting corners to get to the end result. This was the first class that the team insisted that the end result be of the best quality that we could make it. As a result, I believe that our case write-ups were very good.

Working in a group is far better than working alone. Through the group meeting, I learned that there are many approaches to the solutions. Analyzing these approaches, we found pros and cons with each one, and then found the best solution among them.

I learned the importance of coordination of team members. On our first project, we divided up the assignments, then stapled the finished parts together. As the semester progressed, we changed this format, and maintained communication between team members throughout the duration of the case.

Time management [is important]. Our group consisted of members on very different time schedules. One member woke up by 7 a.m. every day... Other members ... rarely [woke] before noon. We learned to balance each of our time schedules and find meeting times which were suitable to everyone.

Teamwork is a good way to get a job done. But, in order to be successful, all the members of the team must have the same goals and similar ways of achieving the goals.

At times, engineering is more an art than a science. I had never been involved with such a group of talented individuals; this was a great challenge in itself. It was usually never the case that we would all agree on a subject. It took leadership and persuasiveness to coordinate the efforts of all these people. I learned that the best way to assume a leadership position is to impress your colleagues through your performance. After you have earned your peers' respect, it is much easier to [steer] the direction of the group. I also learned that solving the problem is not always the hardest part of the assignment. Rather, it was dealing with the people aspect that posed the problem. Overall, this was a great learning experience.

Make sure to build on the strengths of the team members. By allowing people who are experts in certain areas to do the work in those areas, everyone learns more and benefits. Once our team figured out who was good at doing what types of things, we all learned a good deal more by letting that person teach the rest of us.

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Presentation Skills

I learned about the methods used to convey your findings to a client. I learned about the correct use of proposals and presentations as a way of effectively showing your ideas to a client and most importantly, [convincing] them to implement your proposed changes.

I learned how to present a proposal to management. We learned what to emphasize when presenting ideas to management. We also learned how to handle various questions that management may have about different issues and how to convince management that your proposal is beneficial to the company.

The oral presentations were very valuable:... one of the more valuable lessons I will have acquired from the class.

A good consultant is good at both analytical and communication skills. Sure, people had [more of] one than the other, but that should foster people teaching each other and learning from one another.

No matter how good your idea may be, if you cannot convey your idea clearly and persuasively, no one will understand you and your idea will be hidden in the dark.

I have discovered that my best ideas are practically useless unless I can convince others that they are valuable. This is true both when working with the client (professor) and when working with my fellow team members. I found that it was often a struggle to get anyone else to support and develop my ideas. It seems that the power of persuasion plays an important role if one is to be part of any change process.

It is a good thing to present in front of another group and to have it presenting in front of us. It allows us to compare and to see what an [audience can expect] from a presentation. [[Oral presentations were made by two teams per session to one or both of the faculty members. All teams gave oral presentations of cases 1, 5, and 6.]]

The opportunity for us to orally present our case analysis was a plus. This gives me a chance to practice speaking in front of people. I usually do not have that many chances because I am an Electrical Engineer.

The more I did [presentations], the more comfortable and fluid I became. From observing other groups, I had a basis of comparison against myself, and could pinpoint weaknesses for improvement. This skill is important because I see many presentations in my future, whatever the job.

[The Llenroc case studies] helped improve communication skills through oral and written presentations.

Throughout this project, we were compelled to generate reports that would be read by management. Most of these assignments made use of complex management science tools beyond the scope of most managers. It was a challenge to explain these in a language accessible to managers. We were forced to come down from the O.R. cloud and explain things in a less esoteric language.

Another important skill I acquired which will be beneficial in the future is how to write an effective Executive Summary. For the first case, our group gave too much detail about the problem itself and ended up with a two page Executive Summary. Throughout the semester, this section of our projects improved tremendously and, with the practice, I have been able to write them quickly and concisely.

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Manufacturing and Distribution

This class was my first exposure to the world of manufacturing and distribution. The concepts of safety stock, cycle stock or any other stock were completely foreign. However, over the course of the semester, I learned the terminology and developed an appreciation for the fundamental issues. While the [lectures] served as a source of learning, the Llenroc Case Studies offered a "real-life" view of manufacturing, a perspective often missing in the engineering curriculum.

The most significant lesson I learned was the importance of full scale integration of manufacturing, distribution and sales.

A lot of the problems facing different industries are basically the same; they just take on slightly different forms. The problems usually boil down to a few variations on old themes: inventory is not being well managed, there are quality problems that are not being addressed, machines are not being utilized effectively, etc. It is easy to see how a small group of individuals could have success dealing with the problems of a great many companies engaged in completely different manufacturing activities.

Llenroc provided me with insight into some typical problems facing many companies. Although the details of the cases may not be the same, the principle is there. Now I can know better what types of problems to expect and tackle if, say, I became a consultant.

There are many ways to increase efficiency in a plant.

Little adjustments in processes can lead to enormous benefits in productivity, customer response, inventory levels, etc. Often no additional investment in hardware is necessary. For example, just by implementing a simple kanban system in the fabrication and inspection room, we were able to save over half a million dollars and improve throughput and lead times considerably. No new forklifts, conveyor lines or visual recognition devices were necessary.

Always look for the Herbie [[the bottleneck process]]! Every process needs to be analyzed to determine where the bottleneck is located. Once the bottleneck is found, anything that will help ease the bottleneck should be considered. If a process is not a bottleneck, it should not run like one. Non-bottleneck processes should be idle at times.

I found it intriguing that a department that was percieved as a bottleneck only needed an alternative schedule in order to have ample capacity. At one of my internships, I remember a manufacturing support group trying to install a second curing oven in order to increase the department's capacity. Now, after these cases, I wonder if it is really a bottleneck or just a matter of altering their scheduling procedures.

Savings that result from an efficient manufacturing system can quickly be lost without an equally efficient distribution system. Therefore, designing and implementing an effective distribution system is just as important as designing an implementing an effective manufacturing system.

Designing a distribution system entails many steps. First, you have to compare the cost of various shipping strategies, such as purchasing a fleet of trucks, hiring a contract carrier or a common carrier, or using UPS,etc. It is also important to consider the additional requirements associated with each of these alternatives. For example, purchasing a fleet of trucks requires creating routes and scheduling trucks (solving the "dispatcher problem").

The system should minimize the number of distribution echelons and thereby minimize inventory. It is important not to abandon the customer though. Therefore, the warehouse location should be partially driven by the consideration of the customer.

The information system at each echelon should indicate [see?] the inventory levels at all the echelons below it.

Case 3, the Warehouse Location Problem, provided insight into the types of variables which go into warehouse and distribution decisions. I will remember that it is better to hold stock at one location because it reduces the standard deviation [of demand].

When you work, you think of yourself as [both] a customer and a producer and as a single link in a long chain of producers and customers.

I learned much about how different aspects of manufacturing affect various levels of the production chain. Many of the situations we encountered in the cases are present in actual manufacturing lines, and the strategies we used to tackle the problems are viable...

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Application of Technical Knowledge

I learned how to apply all the technical knowledge that I have gained during the past three years to practical applications. Concepts, from linear programming to financial statements to computer applications were finally put to use in a way where I was able to see the relevance of all the engineering courses I have been put through.

I saw how to evaluate whether an improvement is worth it using a net present value analysis. [But] there are other factors that must be considered... such as how long the process will be down [to implement a change], how the missing throughput will be [made up], and how much inventory must be built up before the shutdown occurs.

I learned the importance of an ABC analysis when determining an optimal inventory policy.

One of the most efficient ways to [read the data] is using Pareto analysis: determine which are the most important clients, what are the products that give the biggest percentage of the revenues. In our case, we were able to reduce drastically the inventory levels due to ABC classification. Knowing which were our important clients allowed us to know what should be the transportation system changes in order to improve customer service.

Techniques of safety stocks, pipelines stocks, cycle stocks, and re-ordering points were learned and utilized in keeping inventories and lead times down while at the same time satisfying demands with their variations. Computer simulations and spreadsheets were utilized as the tools in decision making processes.

This class is an occasion to use the tools we learn in other classes, such as simulation, statistics, or economical analysis. Above all, it is the discovery that common sense seems to be the best tool.

I learned a lot in that one section where we simulated a factory assembling cups. You do not realize it by theory the difference little policy [changes] make; when you get to physically compare two procedures for assembling cups, you see the difference in production. [[The Cups Game is not part of the Llenroc Plastics Cases.]] I am very competitive and games like that interest me. I wish there were more of them. Though this course, I noticed that the materials (tools) I learned before or am learning now are useful.

Throughout this course, we used tools such as simulation, inventory theory, scheduling, and economic analysis to study the cases.

My OR/IE degree will probably have some benefit when I go to work in a manufacturing plant. In working with students from other disciplines within the engineering school, I became aware that the OR/IE degree has some benefit over, say, a mechanical engineering degree when examining the logistics of the situation. The other members of my group were key to our success, but some issues they had not been trained on. I'm glad that I had the opportunity to take a course broad enough to use all the issues [techniques?] that I have studied so far.

Case 6 taught me how to allot idle time in a schedule to provide sufficient excess capacity to guarantee variation in demand was met. It was helpful and interesting to apply scheduling techniques which I have learned in ORIE 525 [[Scheduling Theory]] to another situation.

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Software

The use of computer software to help us analyze the case studies was definitely a plus. I cannot imagine how we would do some of our case analysis without the computer software.

Seeing and using some of the simulation packages was interesting. This helped me understand the limits of what is being used today.

I learned that computers are powerful tools in visualizing, analyzing, and testing manufacturing systems.

Many programs we used in class contained bugs and weren't very user friendly but they turned out to be very useful. For example, we experimented with the distribution system using the software package [[Warehouse Location Software]] trying to find more efficient routes and the optimum number of trucks per route. I enjoyed using XCELL+ for Press 7 simulations and was amazed by the number of input variables such as downtime and maintenance.

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Customer Focus / Business Analysis

I learned the importance of customer satisfaction and total quality management and their roles in determining your market position.

It is necessary to know and to understand your customer. Sometimes this is merely a case of understanding what the customer is asking for and sometimes it is a case of convincing the customer that the real problem is not the one he actually sees but something else altogether.

It is important to know the customers very well and to be able to see differences among them. They are not all waiting for the same service, they do not have the same needs, and they do not have the same importance. This is really relevant for the production scheduling, the computation of safety stock, and the problems of distribution and transportation.

The Llenroc Plastics case did an excellent job of emphasizing that it is important to [identify] what business the company is in.

Knowing the customer is vital for any company. Companies must define quality, products, services, plant layout, etc. according to their customers. While designing the distribution system, many times we sacrificed profit [in order to reduce] customer wait time. Reducing customer wait time was our ultimate goal in other cases as well.

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Variability

Variability is evil. This course drilled home the point that variability in the individual components can have an adverse effect on the whole system. In Llenroc, we learned that the variability in the distribution and manufacturing functions added up to make the lead time for the products unpredictable and long. By reducing each function's variability, we reduced the lead time to produce laminates and also made the lead time more predictable.

Variation is the enemy. This message was known to me before, but the cases reinforced this notion. The reduction of variability should be a major goal in any analysis.

Variability kills!!

I learned the need to reduce variability in all stages of production and distribution. By working to minize demand variability, we are able to better predict production and inventory requirements. This will serve to lower inventory costs and allow us to create the most efficient production process possible. By minimizing variability in production we can easily create an efficient cyclic schedule that will maximize utilization. We can also create an accurate MRP system that will be able to schedule reorder times and quantities accurately.

Demand variability is a major problem in industry. Businesses should try to work closely with their customers and suppliers to analyze demand patterns. They should look for ways to smooth demand in a schedule that satisfies both parties. The economic benefits of an optimally operated business are worth trying to achieve.

The point was driven home that VARIABILITY IS THE ENEMY. In all of the cases, there were times when a small amount of variability in something made a tremendous difference in the way things worked out.

Variability kills you.Variability makes ... the reality very different from the theory. For example, the theoretical capacity of the Press Room has nothing to do with the real [capacity].

One important weapon against variability is to be able to aggregate the data. This reduces dramatically the variability, and often allows [one] to discern a pattern. It is thanks to aggregation that the cyclic schedule in case 6 is possible.

Variability is the enemy. Aggregation reduces variability. The "No B/C Stock Strategy" [is useful?].

Reducing cycle time is usually the key for everything.

The cyclic schedule in case 6 demonstrated that "variability is the enemy." Without variability, a schedule is straight-forward... However, variability in demand forces one to (i) determine factors that will reduce variability to manageable levels and (ii) understand the trade-offs associated with reducing variability in demand.

It is ESSENTIAL to understand a company's variability. Variability in demand, as well as variability in the processes needs to be well understood and managed.

One of the lessons is that "variation is the enemy."

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Inventory

The importance of inventory was taught to me. Too much is bad because certain equipment cannot cope with the speed from the previous operation. Thus, a pull-system should be implemented to stop WIP buildup.

I had always though of inventory as just storage and that it had no effect on the business. I now realize that inventory is a resource and the money that is "tied up" in that resource could be used for something else.

Inventory is not necessarily evil. In fact, some amount is required to buffer against variability.

I saw how having many distribution centers will lead to higher overall safety stock levels. I also say how inventory costs more than the amount of capital that it ties up. In the factory, it also led to damaged product from forklifts, long lead times and time wasted looking for misplaced laminates.

I have a better understanding of JIT.

Both too high and too low inventory levels degrade the effectiveness and efficiency of manufacturing processes. Long and varying lead time causes problems in [scheduling and distribution] from manufacturing down to end customers. The common cause of these inventory and lead time problems is the lack of knowledge in handling variations in demand and processes.

An interesting point I learned this semester was the effectiveness of doing nothing. The concept of sitting idle, as opposed to producing inventory, was counter-intuitive.

Before taking this class, I had never studied warehouse inventory theory or work-in-process concepts. I believe that the class provided excellent experience in the recitations and discussions on many different inventory concepts and control systems. I believe this is valuable knowledge that enhances my capabilities as an employee.

[I learned] the importance of managing safety stock inventory adequately. We saw how safety stock can help us overcome the variation of the system, thus preventing the lead time from increasing. Also, I learned how safety stock could be optimized using A,B, C categorization; consequently reducing the investment required to maintain the inventory levels.

An important point stressed in a few cases was the inventory policy. The tradeoff between stock levels and customer satisfaction and cost was a very important concept that I didn't [know previously].

I became familiar with the way Pareto analysis was used in determining priority for certain items.

Inventories must be reduced to reduce production costs. This can be done by aggregating demand [using] policies such as the No B/C Stock policy (or Almost No B/C).

I learned an important concept from the warehouse location case study [[case 3]]. By separating the safety stock into several different locations, the overall variability increases. Although I probably could have figured this out, I had never thought about this before. I think this is an important concept that I will probably have to reapply to a future situation.

Probably most importantly, I learned that aggregation of inventory is important. A good example of aggregation is the consolidation of Llenroc's warehouses. Another good example of how aggregation can be useful is in [the storing of treated paper in rolls rather than in cut sheets]...

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Information Systems

There was not a case in which we did not mention an implementation of information technology to improve customer service. By looking at the order patterns and consumption [rates] of our customers, Llenroc can optimize its manufacturing patterns... A central information system [for distribution] will result in significantly reduced inventories, improved customer service, and reduced number of emergency orders.

The importance of relevant data was emphasized. Case 6 introduced the importance of having [relevant] data before any calculations and decisions can be made effectively.

The success of a well-integrated manufacturing system hinges on the availability of information and the development of information systems. Understanding what data are critical for operations is of vital importance. Most of the recommendations we generated were a direct result of the information afforded to us. If Llenroc had had this information readily available, they could have conducted the analysis. The importance of information cannot be underestimated.

An endless amount of data is worthless, unless it is filtered into quality information. Information is the sword used to slay the variability dragon and get closer to the treasure. Remember, "VARIABILITY IS THE ENEMY!"

World class performance requires a world class information system. Therefore, it is essential that an information system exist in all areas of the operation, from distribution to manufacturing to sales and marketing and that it integrates all these areas.

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Employee Training

Continuous training of employees is very important. Most of my group's case solutions involved training of employees, in one way or another, to perform additional tasks.

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Other Documents

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Peter L. Jackson / March 13, 1996 / pj16@cornell.edu