Annual Report

2006-2007

Greetings from the DCMME and GSCM Centers at the Krannert School of Management, Purdue University! We invite you to browse our 2006-2007 Annual Report to learn about our many activities this year. We are enthusiastic about our commitment to the goal of enhancing education, research and field experience for our students and faculty by engaging with Center sponsors, Indiana and federal government entities, and global partners as we continue to understand management of global supply chains and the consequent manufacturing impact. It has been a productive year. Thirty-six students completed the requirements for the MTM and/or GSCM option and two conferences were hosted by the Centers again this year. The fall conference was held in September 2006 and the spring conference in February 2007.

TheFallOperationsConferencefocused on elements of Globally Competitive Manufacturing. The Student poster competition, highlighting summer internship projects permitted interactions between students and industry company managers who judged the event (p. 8), while a wide variety of presenters provided fodder for a stimulating discussion on manufacturing issues from multiple perspectives (p. 6).

TheSpringSupplyChainManagementConference put a spotlight on the Sustainable Global Supply Chain (p. 18). More than 225 people attended the conference which took a holistic view of “sustainability” and included such topics as corporate social responsibility, environmentally friendly manufacturing, small supplier and diversity issues in procurement, and managing in underdeveloped countries or emerging markets.

One of our goals is to continue to keep students engaged and enthusiastic about seeking careers in operations and supply chain management. The Centers and student organizations facilitated severalindustry-studentinteractionopportunities, including plant tours (p. 28), and monthly executive speaker series (p. 16). In addition, thanks to the generous assistance provided by Venu Srinivasan, a Krannert alumnus, a group of 16 students traveled to India for a globalinternship at TVS Motor Company (p. 10). What an amazing inaugural international internship experience it was! Our hope is that these efforts help enable students to blend practical experience, and field exposure, with excellent Krannert School of Management academics. Researchandvisionaryinitiativesare key to the future. Collaboration with different industries allows us to conduct research which is relevant to the Centers endeavors. This past year we were involved in numerous new research projects - INDOT /Furniture Supply Chain ( p. 13) and Fairfield (p. 14) to name a few. In addition to Center staff being involved in research efforts with industry, many Krannert faculty are also engaged in industry-related projects with research implications, often taking advantage of special grant awards which allow for expanded Center research in topics such as global trade and information systems. As you see, there is a lot going on at the Centers, and we value your input and feedback as we continue to evolve an excellent education and research environment. With your help we will continue to identify ways to become more effective and efficient again next year.

Sincerely,

Ananth Iyer

Director’s Report

DCMME and GSCMI focus on en-gagement with companies in problem identification and study, teaching material development, professional development for interested companies and students, and sharing of best practices through meetings, confer-ences and correspondence between faculty and industry partners.

Building on the Krannert School of Management’s outstanding reputation in the areas of operations management and logistics, the Centers are ideally poised to help our corporate partners anticipate global supply chain and manufacturing management issues before they arise, diagnose current problems, and develop best-practice solutions to the real-life challenges businesses face.

In alignment with Purdue’s learning, discovery and engagement philoso-phy, and through dialogue with our partners, we have identified several goals that our members achieve through partnership.

VisibilityCompetitionisintenseforthemosttalentedstudents,companiesareseekingavenuestoincreaseorsustainbrandawarenessamongstudents

Student InteractionThroughhigh-qualityandconsistentinteractionsorganizationsidentifyandtargethigh-potentialstudentsforemployment

VoicePartnerorganizationshaveavoiceinshapingfutureleadersbyprovidingguidanceincoursedevelopment,studentprograms,keyevents,executivespeakerseriesandresearchprojects

Direction TheCentersmanageprojectcoursesandstudentteamswhoareeagertoresearchandanalyzerealproblemsfacedbyourpartnerorganizations

Faculty Interaction Facultymembersareanexcellentresourceforanalyzingnon-standard,complex,dataintensiveproblemsfacedbyindustry

Awareness TheCentersprovidevaluableresourcesforscanningtheenvironmentforinsightsontrends,whichisacriticalcomponentofsustainablecompetitiveness

Inside

CenterMission............... 1

CenterFinancials............. 2

PartnershipAppreciation.... 4

FallPartnersMeeting........ 6

GSCMIinAction,ChangingBoundaries.......10

CenterProjects...............13

ExecutiveSpeakerSeries...16SpringConference...........18

StudentAcademics.......... 24

StudentInvolvement........ 28

FacultyInterests............. 30

Recognizing the importance of supply chain and operations management issues to the current and future success of our corporate partners, we are pleased to invite you to consider joining us as a partner of the Centers. Your gift each year will support programs and administration that deliver the benefits of partnership.

How can your company be part of our endeavors? Let’s begin a partnership today!

Center Mission and Benefits of Partnership

Center Financials

Upcoming EventsFallOperationsConferenceOctober5,2007

SpringGlobalSupplyChainManagementConferenceFebruary14-15,2008

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You’ve heard many things about what we have been able to accomplish this year at the Centers. This would not be possible without the financial support of our corporate Partners and sponsors. Income from all sources directly related to Centers activities totaled approximately $387K, which included funds for multi-year Partnerships, while expenses totaled approximately $349K. While there exist financial inflows and outflows directly focused on Partnership based Center activities, there are other forms of engagement that are research based and faculty affiliated. Through relationships spawned at Center events, an opportunistic synergy is created that facilitates unique learning opportunities for faculty lead research. These research projects lead by various Center related Krannert faculty account for an additional inflow/outflow of approximately $169,000. These funds directly support the educational needs and research initiatives of numer-ous students and faculty, while fostering an environment of discovery and learning. Our creative goal here at the Dauch Center for Management of Manufacturing Enterprises and the Global Supply Chain Management Initiative, is to align the

Income Summary2006-2007

Expense Summary 2006-2007

power of both sides of the financial equation (Partnership and Research), to maximize the benefit for all involved. We look forward to another promising year ahead, and hope you will join efforts with us to accomplish this important mission.

Best Regards,

Mary PilotteManaging DirectorDauch Center for the Management of Manufacturing EnterprisesGlobal Supply Chain Management InitiativeKrannert School of Management

22%

Research Projects

46%

Events & Marketing

32%

Student Enrichment

87%

Partnership & Project Income

13%

University Support

September21,2006

Krannert ranks in top five in Wall Street Journal surveyWEST LAFAYETTE, Ind. — For the third straight year, “The Wall Street Journal” has named Purdue University’s Krannert School of Management a top-five MBA school in a special section published Wednesday (Sept. 20).

Theannualsurveyofcorporaterecruitersdeter-minedthattheKrannertSchoolisfourthamong51businessschoolsintheregionalranking,meaningtheschoolsdrawrecruitersprimarilyfromtheregioninwhichtheyarelocated.

Inaseparate“honorroll”section,Krannertrankedthirdamongallschoolsinoperationsmanagement.Thatareahasplacedthirdinallsixofthepublication’srankings,whichbeganin2001.TheKrannertSchoolalsorankedseventhininformationtechnology.

Inalistingof“undervaluedschools”thataskedrecruiterstonameschoolswithunderratedreputations,Purdueplaced10th.“TheWallStreetJournal”wroteofKrannert:“Inthisyear’ssurvey,recruitersgavePurdueitstopscoresforstudents’analyticalandproblem-solvingskillsandpersonalethicsandintegrity.”

“OurNo.1goalistocontinueproducinggraduateswhohavetherightcombinationofskills,knowledgeandattitudetomakethemandtheircompaniessuccessful.”“TheWallStreetJournal”surveywasconductedbyHarrisInteractivefromDecember2005toMarch2006.Intheonlinepoll,4,125recruitersratedschoolson21attributes.Toqualify,aschoolhadtoreceiveatleast20recruiterrankings.

Purdue News Service: (765) 494-2096; purduenews@purdue.edu

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Bernadine SierraCenter Graduate Assistant Aug 2004 - Dec 2006 MBA Class of 2007

B.S., Business Administration, University of California, Riverside, 2004

We would like to express our sincere gratitude to our distinguished industry partners for their significant support of DCMME and GSCMI. Without their consistent foundational support, our Centers could not accomplish the exciting and important objectives we set for the Centers each year.

Partnership Appreciation

2006 -2007 Partner Companies

thank you

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In addition, many companies help support targeted key events throughout the year. This specific support is another way companies can engage and support the DCMME and GSCMI mission. We look forward to finding ways to partnership with each of you!

“Rolls-Roycecontinuestobenefitfromourlong-termrelationshipwiththeKrannertprogram.Additionally,Iampersonallypleasedtohavetheopportunitytoengagewiththeirexcellentstaff.TheDCMMEandSupplyChainactivitieshaveprovidedtheperfectmediumforfocusonissuesthatarecriticaltoourindustry.”

Denny WarnerRolls-Royce’s VP - Customer Operations

KGSA Krannert Graduate Student Association

CAM Center for Advanced Manufacturing

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DCMME& GSCMI Fall Partners Meeting September 2006

Global Competition & the Auto Industry

According to John Sofia, Vice President Product Development of American Axle & Mfg., the American auto component industry faces severe challenges

from overseas. The top three OEM global parts suppliers are from Germany, Japan and Canada, followed by the U.S. in fourth place.

“Intense global competition is creating customer demands for world pricing and world-class technology,” said Sofia. Using newspaper headlines to illustrate his point, Sofia explained how a shrinking share of the global market has affected the automotive industry supply base, leading to price pressure and excess capacity.

Is the U.S. Losing its Manufacturing Base?According to William Strauss, Senior Econo-mist and Economic Advisor for the Federal Reserve Bank of Chicago, while the number of workers in the manufacturing sector has declined steadily over the last six years, the nation’s productivity has grown. Strauss analyzes the performance of the Midwest economy and manufacturing sector.

He reported that the data shows the manufacturing employment as a share of national employment has declined only two percent yearly for the last 80 years, an experience shared globally by the world’s top 20 economies. Despite these setbacks, U.S. manufacturing output has never been higher and the sector has outperformed profits for the rest of the nation.

Preparing students and research-ers to meet the needs of globally competitive manufacturing is at the heart of Purdue’s Krannert School of Management and the Dauch Center for the Management of Manufactur-ing Enterprises (DCMME). During the 2006 DCMME Fall Partners Meeting, the current global business climate was the focus of discussion by presenters ranging from an economist to a pair of entrepreneurs.

The day-long conference, which was co-sponsored by the Global Supply Chain Management Initiative (GSCMI), took place at Purdue’s Stewart Center on September 21st and focused on the theme of “Globally Competitive Manufacturing: Competing Globally, Excelling Locally.”

During the meeting, DCMME/GSCMI Director Ananth Iyer asked partici-pants to consider in what ways their operations are globally competitive. Iyer described opportunities offered by the Centers for partners to maxi-mize the impact of their collabora-tions in education and research with Krannert and the Centers.

This meeting offered an interest-ing look at the ways in which the manufacturing industry and related industries are working to become more efficient, productive, and lean in order to stay on the leading edge of the global marketplace.

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DCMME’s Fall 2006 Partners Meeting offered an interesting look at the ways in which the manufacturing industry and related industries are working to become more efficient, productive, and lean in order to stay on the leading edge of the global marketplace.

Save the date...

2007FallOperationsConferenceOctober5,2007

Supply Chain Best Practices

Pre-production control, sales forecasting and plan-ning, product scheduling, inbound logistics, distribu-tion and key variation metrics were discussed by

Roy Vasher, retired executive of Toyota Motor Engineering & Manufacturing North America.

Vasher’s presentation focused on ways to streamline supply chains. He told the audi-ence that the use of common components across product lines minimizes the complica-tion of a number of unique components. A commitment to balance demand variation with production stability is at the heart of Toyota’s supply chain management excellence.

Competitive Manufacturing & Equity Investment

According to Jane Brock-Wilson, managing director, Berkshire Partners, the private equity industry has grown dramatically over the last 30 years and now has a

major impact in all sectors of the economy. Brock-Wilson received a Bachelor of Science in industrial management from Purdue in 1978, an MBA from Harvard Business School in 1983 and in 2006, the Krannert Distin-guished Alumni award.

Private money has had a substantial influence on mergers and acquisitions activity, an area that was once the domain of companies, she said. As evidence, Brock-Wilson quoted a report in the Financial Times: Private equity firms accounted for about $200 billion worth of deals in 2005, the majority of which were buy-outs of established companies.

To underscore the importance of private eq-uity to the industrial sector, Brock-Wilson told the audience that 70 percent of them work for companies that have been touched by private equity. Among the companies she mentioned that have a presence in Indiana are Ford Motor Company, Eli Lilly and Caterpillar.

Little Product, Big Supply Chain Concerns – PenAgainWhat began as a daydream during high school detention period, became a financial success for inventor, Colin Roche. His inven-tion, the PenAgain, is an ergonomic writing

instrument adapted to the contour of the human hand. Roche, who had worked

in high technology start-ups, teamed with college friend and mechanical engineer Bobby Ronsse – co founder, to make his teenage dream become a reality. Appearing at the meeting via teleconference from their office in Cost Mesa, Calif., the co-founders discussed the ups and downs of starting a business.

The prototype was created in 2001 and at first, financially underwritten by family members. The company, Pacific Writing Instruments, which was first was launched with the help of family members, now has manufacturing operations in Ningbo, China, and ships to more than 40 countries.

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John GantCenter Graduate Assistant Aug 2006 - May 2007 MBA Class of 2007

B.S., Engineering, Florida State University, 2002

The 2006 Fall Partners Meeting once again featured a student internship poster competition. Students prepared and presented posters describing their summer internship work. This year, the competition was also open to industrial management undergraduate students. The poster competition was created to benefit both partners and students by accomplishing three main goals:

1. To award second-year MBA students with the opportunity to market themselves to partner executives by leveraging their summer experiences. 2. To demonstrate to partner executives the caliber of work Krannert students produce and the type of projects students are excelling at within their summer internships. 3. To give first-year MBA and undergraduate students a chance to see which companies are interesting to work for and what type of projects interns complete. It also provides students exposure to a variety of topics of interest within industry.

Top three placement prizes were awarded through generous sponsorship from, Eaton Corporation, Purdue University’s Center for Advanced Manufacturing at Discovery Park, and IBM. Nav Vaidhyanathan took first place. Second place went to Venkat Ganapathy and third place went to Henry Alers.

A special award was given to the only undergraduate to compete against fifteen MBA students. Garth Peterson, BSIM 2007, received a merit award in the amount of $250 for his spirit of confidence and strength of presentation.

First Place $1250

Nav Vaidhyanathan – 2006 Summer InternDISCOVER FINANCIAL SERVICES

Long-terminactiveaccounts:Postactivationbehavioranalysis

Objective: The objective of this project is to develop a better understanding of the inactive segments’ behavior, at- and post-activation, from a risk perspective, to develop treatment strategies with the goal of reducing charge-off losses.

Results and Recommendations:• Never active inactive accounts have a higher charge-off incident rate than previously active inactive accounts

• Cash activation is an indicator of high risk behavior

• Long term PRS and Card member Value (CMV) have predictive properties to differentiate between charge-offs and non-charge-offs

• Introduce BT line (especially useful for segments activating with high utilization and charging off)

2006 Student Internship Poster Competition

Special Merit Award $250

Garth A. Peterson - 2006 Undergraduate Intern - JOHNSONVILLE SAUSAGE

Objectives: The internship experience at Johnsonville Sausage provided the opportunity to work on several projects throughout the duration of the internship. My major projects included: 1. Design an asset utilization program that would help identify opportunities for improvement on both the production line and facility levels. 2. Improve several product quality characteristics. The results of these projects have increased the operating efficiency and product quality at Johnsonville.

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Second Place $1000

Venkat Ganapathy – 2006 Summer InternEATON CORPORATION

RealProjects,RealImpact

Background of Host Corporation:Eaton Corporation is a premier diversified Industrial manufacturer with 2005 sales revenue of $11.1 billion. Eaton is a global leader in electrical systems and components for power quality, distribution and control; fluid power systems and services for industrial, mobile and aircraft equipment; intelligent truck drivetrain systems for safety and fuel economy; and automotive engine air management sys-tems, powertrain solutions and specialty con-trols for performance, fuel economy and safety.

Project 1: “Truck Specific” Quality PoliciesProject 2: Supplier Analysis ToolsProject 3: “Truck” Group Level Quality Balance Scorecard

Aspecialthankyoutothejudges

ofthe2006PosterCompetition.

Phil Chen IBM

Holly George Kimberly-Clark Corporation

Maria Llamas Eaton Corporation

Edel Marrero IBM

Tom McDuffee Saint-Gobain Containers

Mike Musleh Fairfield Manufacturing

Ann Schneider General Motors – Allison Transmission

Steve Shade Purdue University – Center for Advanced Manufacturing at Discovery Park

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Third Place $750

Heinrich Alers – 2006 Summer Intern EMERSON PROCESS MANAGEMENT

SupplierDevelopment:LeanFocus

Objective:Excessive lead times for major purchased com-ponents are making it very difficult and expensive to meet increasing customer demands. Since supplier lead times are often longer than those ex-pected by the customer, VAD faced high inventory levels, frequent part shortages, and in turn, poor On-Time-Delivery (OTD) performance. The objective of the summer project was to develop a supplier development program that focuses on Lean manufacturing principles, mainly in order to help suppliers reduce product lead times to VAD. After defining the program in terms of its metrics, organization and process require-ments, the goal was to initiate pilot development efforts with key suppliers.

Results:A supplier development program for the division was developed. This program was defined in terms of key metrics, process maps, and current and future state organizational charts.

Othercompetingposters:

Ludovico de Amicis Johnson & Johnson

Zheng Feng Dell

Jigar Kadakia Dell

Justine Mikals Cummins

Ghazi Saleem Dell

Christopher Rains Bank of America

Virendra Sharma Air Products & Chemicals

Justin Tennison Boston Scientific

Xin Li Dell

2006-07FallPartnersMeetingEventParticipation

Students

Faculty/Staff

Business

StudentVolunteers

#of

Par

tici

pant

s

2005-2006 2006-20070

20

40

60

80

100

17

22

21

6

30

14

26

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GSCMI in Action, Changing Boundaries

A group of 16 Krannert MBA students spent their winter break in Bangalore, India, participating in a global supply chain internship program. Hosted by the Dauch Center for the Management of Manufacturing Enter-prises (DCMME) and Global Supply Chain Management Initiative (GSCMI), the program was sponsored by TVS Motor Company. Krannert alumnus

Venu Srinivasan (MSM ’77) serves as chairman and manag-ing director

of the company, which in 2002 received the coveted Deming Prize, an interna-tional award for quality management. Escorted by DCMME/GSCMI Managing Director Mary Pilotte and Krannert finance Professor Raghu Rau, the students worked in groups of two under the direction of a TVS employee mentor. During their three-week stay in India, participants were exposed to processes in manufacturing, logistics, supplier management, and market segmentation.

Global Internship

TVS Motor Company sponsors India internship experience Winter Break December 2006

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“Students learned how to perform in a cross-functional and cross-cultural team, taking a specific question and seeking to answer it with few guidelines or boundar-ies,” says Pilotte. “It was a unique, hands-on way of taking the concepts they had learned in the classroom and applying them to real-life situations.” Ananth Iyer, the Susan Bulkeley Butler Chair in Operations Management and director of DCMME/GSCMI, says the trip was an educational experience not only for the students, but also for the Krannert School and TVS Motors. “The students’ evaluations, feedback, and impressions of their time in India were particularly important, as this was the first group to be involved in the program,” says Iyer. For the corporate sponsor, it was a chance to obtain in-sights into how outside future managers see the operation, as well as a learning forum to find out what could be improved. “We look forward to continued future internships at TVS Motors,” says Iyer. “We appreciate the commitment by Venu Srinivasan in providing such a unique opportunity for Krannert students.”

Absence of measured relationship between effective financing and traffic conversion

Unmeasured marginal utility of internal quality to the end consumer

Inadequate information of OE demand fluctuation to the suppliers to enable in-dependent supplier capacity management

Absence of decision tools for capacity expansion in new geographies

Inadequate supplier measurement and incentive systems for performance rating

Disparate reporting mechanisms across different functions like VCS etc

Absence of strong brand image of India as a quality of motorbikes and in turn TVS

Lack of empirical understanding of marginal utility derived from price value

Effect of financing on sales promotions in one pilot area

Mapping of Quality practices not resulting in customer value

Mapping of information flow between supplier and TVSM - cost and improvement plan

Consolidation Vs Disaggregated supply chain - effect on product landed cost

Benchmarking of TVSM supplier perfor-mance rating system with best practices and guidelines for improvement

Setting up an effective Business Intelligence Warehouse System for Management information reports

Brand Positioning in the international market in the face of country specific and firm specific consumer perceptions

Mapping of price elasticity for the economy segment motorbikes

ChritianDriemel

Susan Campbell

Luis Sanchez

JustineMikals

Siham Erragh

Bob Perchard

AndrewGerber

Dimitri Kokorin

KamleshThalor MarvinRodriguez PeteMast BretHanson BradFueling NickHaywood ChrisCalas SailjaChadaram

Participants Projects and Assignments

Problems ProjectAreas StudentTeam

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Day in the Life of a TVS Intern

7am Wakeup,eatbreakfast8am Getonbus9am ArriveatTVS,Classroom#212:30pm TVSvegetarianlunchbuffet2pm Teatime5pm Departforapartments7pm Arriveatapartments-freetime9pm Dinner

“Thefirsthandexperienceswegainedfromthistripareincredibleandgofarbeyondanythingwecouldhavelearnedfromareadingorinclass.”

Susan CampbellMSHRM 2008Indiana

Because it focused on operations and manufacturing, the weeklong trip to Shanghai in March 2006 attracted students who want to work for global companies that have suppliers or other fa-cilities abroad, says Amanda Thompson, former assistant director of GSCMI and the Dauch Center for the Management of Manufacturing Enterprises (DCMME). “I think the biggest value for them was just being there and correcting the misconceptions they had before the visit,” she says. The prolific construction was a particular surprise to many attendees, some of whom may have expected third-world conditions. “They saw beautiful brand-new factories full of hard-working people,” she says. David Chipman, MBA ‘06, agrees with Thompson that the ‘best practices’ plant tours were the highlight of the trip. “Visit-ing China was a great opportunity,” he says. “I saw the global supply chain at work in actual manufacturing settings and learned about the cultural nuances of do-ing business in Asia. It was a feet-on-the-ground, out-in-the-field learning experi-ence.”

“GlobalknowledgeandspecificallyknowledgeofChinaiscriticaltodoingbusinesstoday.Thesetwotripshavegivenmeabetterunderstandingofthechallengesandopportunitiesthiscountryfaces.”

–– Brad Feuling, MBA ’07

Global Travel

Global Research Global-izing Indian ManufacturingFollowing are excerpts from the Executive Summary for Globalizing Indian Manufacturing, a report on the Summit on Indian Manufactur-ing Competitiveness by Deloitte Research, the Indian School of Business, New York University, and Purdue University with support from the National Science Foundation.

1 Less than two years ago, most inter-national observers were still on the fence when discussing the potential of Indian manufacturing. Did India really have what it takes to become a powerhouse in global manufacturing? Opinion on Indian manu-facturing is dramatically different today. …

“I have always been amazed at the speed of development and the evolution of the manufacturing industry in China,” adds Mohit Bhandari, MBA ’06. “This opportunity allowed me to go right to the heart of this development and interact with some of the top managers of global organizations.” Even though she’s originally from Taiwan and familiar with Asian culture, Ruby Chou, MBA ’07, found the trip equally stimulating. “The most memorable part was seeing how fast China has grown and how eager Chinese people are willing to learn from Western experience,” she says. For Feuling, who also went on the trip to Beijing in May, another highlight was meeting an active group of Purdue and Krannert alumni in Shanghai for network-ing and dinner. “It was fun to connect with them and learn how their careers led them to China,” he says. “It was also a nice way to feel a part of a larger global family.”

The Summit on Indian Manufacturing Competitiveness set out to map the chal-lenges and opportunities of manufacturing in India and other emerging markets. The summit was co-hosted by the Center for Global Logistics and Manufacturing Strat-egies of the Indian School of Business, Deloitte Research, the Global business Institute of the Stern School of Business at New York University, the National Science Foundation, and the Krannert School of Management at Purdue University. …

1 Based on speeches and contributions by M Rammohan Rao, Professor and Dean, Indian School of Business; Dileep C. Choksi, Joint Managing Partner, Deliotte Haskins & Sells, India; N. Viswanadham, Professor, Center for Global Logistics and Manufacturing Strategies, Indian School of Business; Milind Sohoni, Professor, Indian School of Business; Sridhar Seshadri, Professor, Stern School of Business, New York University; Ananth Iyer, Professor, Krannert Business School, Purdue University; Kumar Kandaswami, Country Manufacturing Leader, Deloitte India Private Ltd.; Peter Koudal, Director, Deliotte Research; Abhijit Deshmukh, Director, Manufactur-ing Enterprise Systems, National Science Foundation; and Ram Bala, Professor, Indian School of Business.

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Center ProjectsAcademic Year 2006-2007

Nurturing a vibrant engagement between Krannert and the business environment is a key goal of DCMME and GSCMI. Projects provided by industry offer faculty and students hands-on learning experiences, often within a course framework. Partner organizations benefit from the students’ efforts and find the results to be useful in their business decisions. Faculty members leading effort on sponsored projects, advise the students and provide guidance.

INDOT Supply Chain Project and Indiana’s Furniture ManufacturersProfessorsSvenjaSommer andAnanthIyerCoordinator: AmandaThompson Research Assistant: JustineMikals

Decisions made by the Indiana Department of Transportation (INDOT) have a direct effect on the state’s economic development potential and on its furniture industry, according to project results. Researchers examined the location of the state’s furniture manufactur-ers, the mode of transportation they use, and the impact of proposed highway expansion or construction. They concluded that most of the market is out of state, and that the growth of component imports makes long-distance transportation and efficient connection to major interstates increasingly important. Speed of delivery, lower transport costs, and an Indiana-level supply chain view, are integral to maintaining a competitive position. The project suggested a number of improvements. Several of the larger companies could benefit from the speed and lower cost of a rail hub for inbound shipments; at present, rail is rarely used by the furni-ture industry cluster in Indiana. The report also concluded that INDOT decisions regarding whether to extend I-69 into southern Indiana and to complete a loop around Jasper could have significant impact, as much of Indiana’s furniture industry is located in this portion of the state. The report identified issues with the communication exchange process between industry and the state, and suggested room for improvement.

Saint-Gobain Containers Bulk to Case ProjectProfessorAnanthIyerGraduate Students: YatinAnandand BrianMaengSaint-Gobain Executive:RobertPedrazzi

Saint-Gobain provides bottles for the West Coast wine industry and provides customized cases (called UPIDs) to their customers. This has resulted in a product line with more than 300 different glass mould/color combinations and the related complication of more than 3,000 SKUs and an increasing complexity of operation. Saint-Gobain sought to maintain its service level while reducing its inventory. An analysis of the inventory showed that a low volume of SKU’s generated a high level of inventory relative to business volume. Using a mathematical model that anticipated demand, the solution generated savings related to a reduction of external warehousing, more direct shipping from the plants, elimination of repacking costs for the mould program, a decrease in carton overage, and better lead-time for customers.

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CDR Carl Reidlin, LCDR Kent Evering-ham and LCDR Mike Shirk, at the final round of the FranzEdelmanAward for best applied research in Operations Research. As finalists, Purdue/Krannert and the U.S. Coast Guard were inducted into the Franz Edelman Academy, recognized as Edelman Laureates at the INFORMS Practice conference in Vancouver on April 30, 2007. The presentation titled “Operations Research Enhanced Supply Chain Management at the U.S. Coast Guard Aircraft Repair and Supply Center” summarized four projects over the last six years completed jointly with the US Coast Guard, and generated rich financial, operational and social results. The DCMME/GSCMI Centers are proud to be associated with such influential research, as we partner with the strength of Krannert alumni and the might of America’s heroes in the U.S. Coast Guard.

OFS: Vehicle Routing OptimizationProfessorsMohitTawarmalani, YanjunLiandAnanthIyerGraduate Student: YatinAnand

OFS is an Indiana furniture manufacturer that makes 2,000 deliveries each week to locations across the country. Routing is currently done by manually enter-ing zip codes in mapping software and leaving the choice of driving directions to the truckers. The challenge was to reduce the miles driven by the delivery trucks, satisfy customer commitments, and integrate an East Coast Distribution Center (ECDC) into the model and study its impact on the routing structure. With a heuristic solution process, the research team generated an optimal se-quence for all stops. An integer program was used to pack the trucks. MapPoint was then used to sequence stops.

Coast Guard Analysis of HH-60 PDM Throughput at U.S. Coast GuardProfessorsVinayakDeshpande and AnanthIyerGraduate Intern:AbhishekPanditraoU.S. Coast Guard: CDRCarlRiedlin

The U.S. Coast Guard repair facility at Elizabeth City, North Carolina, overhauls 42 aircraft, each on a four-year cycle of scheduled maintenance. Six aircraft are overhauled each year, a process that includes disassembly, repairs, repaint-ing, and reassembly. In the fourth project in a five-year relationship with the Coast Guard, the DCMME/GSCMI faculty team’s research challenge was to find a way for the repair facility to increase its overhaul rate to nine aircraft per year on the same four-year maintenance cycle and to prepare for a conversion in 2007 of all HH60 aircraft to the Tango version. The research team built a simulation model of the aircraft overhaul and main-tenance process and examined different ways of increasing throughput. It also had to identify and reduce the sources of variability in the overhaul process and find ways to minimize the lifetime cost of ownership of the aircraft. The resulting information provided to the Coast Guard included analytical/Op-erations Research methodologies and tools to support decision making and streamline the PDM process. In return, the project has benefited DCMME by supporting research over the last four years for six graduate interns during the summer and one doctoral dissertation, while also providing faculty with new research problem contexts that have led to publications in such eminent journals as Operations Research. Recently Dr. Vinayak Deshpande and DCMME/GSCMI Center Director Dr. Ananth Iyer were presenters, together with Krannert alumni and USCG officers

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Project scheduling and an insertion algorithm were also employed. The results eliminated 12 trucks and reduced driving distance by 28,678 miles, resulting in a potential savings of 10.52 percent. The results also suggested that the addition of an East Coast distribution center would lead to an increase in inventory turns at the plant warehouse, lower lead times for deliveries to the East Coast, and allow for the use of smaller, more fuel-efficient trucks within a 100-mile radius of the distribution center.

Fairfield Manufacturing Improve quotation process for new jobsProfessorAnanthIyerCenter Managing Director: MaryPilotteGraduate Students: GhaziSaleem,MarkVymyslicky,andOdienXu

Streamlining and optimizing highly specialized resources to more effectively evaluate and process incoming requests for new job quotations was the objective of this project. Although the existing process was a highly documented ISO process, issues of turnover and strained business conditions, sometimes lead to less than optimal paths. Their process resulted in overworking some quotations, reworking quotations that were essentially identical to past quotations, and quoting most every job opportunity. This project involved “as is” and “could be” process mapping to offer stream-lined processing for the customer. It also involved creating a quotation scorecard that engaged all key stakeholders early in the process, so the best business decision could be made on resource allocation. Finally, improvement recom-mendations were made revolving around database management and access, organizational ownership of the process, and methods for continuous improve-ment going forward. This project was prepared in 4 months from start to final executive report out and the presentation of deliverables.

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Ghazi SaleemCenter Graduate Assistant Aug 2005 - May 2007 MBA Class of 2007

B.S., Aeronautical Engineering, U.S. Air Force Academy, 1992

A recent study by Krannert researchers shows that supply chains vital to Indiana’s economy could be strengthened by reduc-ing costs, fostering better communication among corporations, and coordinating highway improvements and other infra-structure projects to best meet industry needs. Led by Susan Bulkeley Butler Chair in Operations Management Ananth Iyer, re-searchers developed a mathematical mod-el that can be used to show how specific reductions in transportation, distribution, and logistics-related costs could translate into improved competitiveness for Indiana industries. “We focused on the furniture industry in southern Indiana, but the same concept could be applied to other industries in the state,” says Iyer, whose team also included Prof. Svenja Sommer, opera-tions management, and research assistant Justina Mikals, MBA ’07. Funded by the Indiana Department of Transpor-tation through Purdue’s Joint Transportation

Research Program, the study was moti-vated in part because state officials would like to rank the value of proposed highway projects based on their potential economic impact. The researchers evaluated the supply chains for 10 furniture companies, information that is integral to selecting which projects to approve. “Infrastructure improvements may take 10 or 15 years to come online, so the state would like to be able to say before even approving a project what its potential benefits would be in the future,” says Iyer. “It’s important to understand what industry is planning to do in the future to predict industry-related transportation demands 15 years from now. “One of our findings is that all of the players don’t think in terms of a sup-ply chain. The hardwood lumber people are unaware of the impact of the veneer people, who are unaware of their impact on costs to the furniture manufacturers, and so on,” adds Iyer. “Companies don’t even know how much of the wood they use origi-nated in Indiana, which is a very important supply chain consideration because ship-ping lumber costs a lot of money.” A brief article about the study was published in the 2007 Indiana Logistics Directory, which was released in November

during the fourth annual Indiana Logistics Summit in Indianapolis. More than 200 experts from government, industry, and academia attended the event, which was dedicated to transportation,

distribution, and logistics — or TDL — an industry critical for the movement of freight by air, rail, ships,

and trucks.— Emil Venere

Krannert study will help boost Indiana supply chains, economy

Ananth Iyer

September 2006PRESENTATION TO IMSA

Mike MuslehDirectorGlobalSupplyChain,FairfieldManufacturing

Musleh, a Krannert MBA himself, spoke to the Industrial Manage-ment Student Associa-tion about managing Global Supply Chains.

The discussion revolved around sup-plier relations and how several of his past employers believed in a cost-re-duction approach. He felt, however, that the most powerful supplier relations could be built through positive relation-ships that would foster superior quality and better prices — definitely a much more favorable outcome.

October 2006PRESENTATION TO KOC

Ann C. SchneiderManagerofIndustrialEngineering,AllisonTransmission

Ann C. Schneider is the manager of Industrial Engineering at Allison Transmission, General Motors, in Indianapolis, Indiana. She also is the

site champion for the implementation of the GM Global Manufacturing System: GM’s application of lean manufacturing concepts. Schneider holds a Bachelor of Science in mechanical engineering technology from Indiana State Univer-sity. After several cooperative education experiences in the steel and pharma-ceutical industries and a post-graduate

Executive Speaker Series

MBA and undergraduate students are given the opportunity to take part in a monthly executive speaker series. Industry executives present information about their companies to groups of interested students providing occasion for connections which can lead to internships and full-time employment. Students can also gain a better understanding of the industry and company represented, learning about supply chain and manufacturing management issues within different companies.

position as an industrial engineer at Carrier Corporation, Schneider joined General Motors. After 29 years of corporate commit-ment Schneider states, “I’m proud of my experiences and contributions at Allison Transmission.” When asked why she has stayed with General Motors through the bulk of her career, she boasts, “We have products that have technological leader-ship, people who provide the creative genius to lead this company into the future, and manufacturing processes that are continuously improving. This environment has created career excite-ment for me. Why wouldn’t I dedicate my career with such a success story? I con-sider Allison Transmission a huge family built on a proud heritage and an envied leadership in the world marketplace!” Schneider encourages MBA students to learn to link the knowledge they gain while at Krannert with practical work experiences and inter-relationships that are generated via the myriads of people that they will come into contact as their careers unfold. “Business schools provide you many tools you can use to assimilate business issues, but the true resolution to these issues is the ability to link these tools with the mastery of com-munications and salesmanship; there’s just so much to learn.” As a recruiter, Schneider weighs heav-ily on the attributes of communication skills and logical thinking. The ability to clearly and distinctly define a problem and its associated methodology towards resolution is paramount. Schneider states, “Although a graduate may be an expert in a select area, he’ll always need to count on others to assure a well-rounded approach to fully solving a given problem. Shyness in problem-

solving is unacceptable. Shyness in business is unacceptable. Shyness in personal confidence is unacceptable. In today’s world, the Krannert MBA gradu-ate must be flexible, confident, and persistent when it comes to the pursuit of both personal and professional goals and objectives.”

November 2006PRESENTATION TO KOC

Ronan MiotPlantManager,HeartlandAutomotive,LLC

Ronan Miot grew up in France and graduated from ESLSCA in Paris, majoring in corporate finance. He worked in the finance field until he

joined Heartland Automotive operations, an auto parts supplier with locations in Greencastle and Lafayette, Ind., to work in operations. Heartland has a lot of challenges in the tough auto supplier market. For instance, 99% of Heartland’s business comes from Subaru. Its dependency means that if Subaru does not do well, Heartland will not do well either. Also, the drivers of Heartland’s business are cost, quality, and delivery. To the auto manufacturers, quality and delivery are a given and cost is what determines whether there is a deal to do business with an auto supplier. Due to Heartland’s intense competition with other suppli-ers, Heartland has a razor thin margin. Thus, Miot has to ensure that there is no downtime because each unutilized minute cost the company. He has to manage the coordination of the sup-ply chain by staying in contact with the

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upstream suppliers and Subaru on a daily basis. These challenges that are posed to Miot are some of his favorite things of working for Heartland. Miot recommends that MBAs should not view their degrees as anything but a stepping stone and that they should strike a balance between utilizing their academic knowledge and work experience.

December 2006PRESENTATION TO KOC

Larry FischerSupplyChainManager,Caterpillar,Inc.

Larry Fischer is Sup-ply Chain Manager for the Diversified Power Products division of

Caterpillar, Inc. in Lafayette, Ind. Fischer began his college career studying metallurgical engineering at the University of Missouri-Rolla, but transferred to Bradley University in Peoria and completed an industrial engineering degree there. While in college, Fischer was a co-op student with Caterpillar and is now in his 35th year with the company. During his tenure he has worked in a variety of positions, starting on the shop floor and moving to positions in plant man-agement, quality, operations, systems support and most recently to supply chain management. Fischer has stayed at Caterpillar for his career for a variety of reasons. One is the vast opportunities a com-pany like Caterpillar provides. He has had the chance to work all over the world and be a part of many different

aspects of the business. Another reason Fischer has stayed is the great people and team-work culture that flourishes within the company. He suggests MBAs look to Caterpillar for a career because there are many op-portunities for advancement. The work is rewarding and there are opportunities to travel and live overseas. Supply chain is a great choice for a career path be-cause it provides you with exposure to all parts of the business from suppliers to operations to the customers. Fischer’s advice to MBA students is to look at the long-term potential, not just the initial offer, when choosing a company to work for.

March 2007PRESENTATION TO KOC

Rob Sabieralski EngagementLeader,InfosysConsulting,Inc.

Rob Sabieralski, a graduate of Krannert’s MSM program, with a focus on Operation Management recently spent some time talking

with MBA students. Sabieralski, Engage-ment Leader for InfoSys, an India based consulting firm, talked about one issue facing the company – their forward imple-mentation of the flat world initiative. To accomplish this they are working hard to be a truly global company and not solely an Indian company. When asked what challenges face U.S. com-panies Sabieralski replied, “I think there is a hunger within these other compa-nies [outside the U.S.] that I am not even sure [U.S. companies] are aware of. I don’t think they realize how much they are going to fight.” Discussions such as this indicate new challenges on the horizon for both U.S. companies and for current MBA students as well. Sabieralski commented that re-cent MBAs with engineering experience have proven to be very productive within his company. He also indicated how important it is for an employee to be able to do a quantitative, critical analysis and to be able to present it to executives as well as partners and clients in a structured and meaningful way.

Finally, when asked about the issues facing U.S. corporations Sabieralski indicated the importance of flexibility noting that they must have a willing-ness to lessen command and control and the ability to shrink or expand capacity by 30% with little notice.

April 2007PRESENTATION TO IMSA

Anthony BrownPlantManager,HeartlandAutomotive

Anthony Brown, plant manager for Heartland Automotive’s Lafayette op-erations, and Louisiana Tech alumnus, told a group of industrial management students that the manufacturing process must be kept simple within what he calls Four M - manpower, method, materials and machinery. Within the Four M model he states that manpower is the most important; proper skill sets equip the organization with the manpower metrics needed to properly utilize the other three. When asked what advice he has for Krannert students desiring a career in manu-facturing, Brown was very adamant about the benefits of getting hands on experience in a co-op or internship before graduating. He noted that today’s companies are very fast-paced and want manu-facturing mangers that have experi-ence in the field so they can become an effective man-ager as quickly as possible. Brown also underscored the importance of a manufacturing manager having tech-nical comprehension as well as good leadership skills in order to understand the production process and manage employees effectively.

Wayne ChanCenter Graduate Assistant Aug 2005 - May 2007 MBA Class of 2007

M.S., Nuclear Engineering, University of Cincinnati, 2003

M.S., Physics, University of Cincinnati, 2002

B.S., Physics, University of California at San Diego, 2000

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sustainableglobal supply chain

the

Global Supply Chain Management Spring Conference February 2007

Corporate Social ResponsibilityPanel Session I

SueMecklenburgSTARBuCKS:Sustaining Coffee Communities

Sue Mecklenburg, Vice President of SustainableProcurement Practices at Starbucks Coffee, detailed how crucial corporate social responsibility is to their op-

erations and to the sustainability of their busi-ness. About twenty five million people grow coffee around the world in over 70 countries. Over 50 percent of the world’s coffee is grown on small farms, locally owned and operated. Farmers need access to credit to help their long-term prospects. To this end Starbucks has provided funding for affordable credit. This eases the burden on low-income farm-ers crucial to Starbucks’ supply chain and empowers them to invest in their farms. Along with financial assistance, access to technical and market information is also provided. This multi-pronged approach has helped many farmers in developing countries and has provided some security and sustainability for Starbucks.

Kicking off the 2007 spring conference and case competition, themed “The Sustainable Global Supply Chain,” was key note speaker Dr. Paul Goodman, the Richard M. Cyert Professor of Organizational Psychology at Carnegie Mellon’s Graduate School of Industrial Administration. Co-sponsored by Purdue CIBER – Center for Inter-national Business Education and Research, Goodman presented his film, Dabbawallas, Thursday evening, February 1.

Viewers were able to see how each work day some 4,000 dabbawallas pick up and deliver hot, home-made lunches (dabbas), made and packed by loving family members, to more than 100,000 hungry office workers in Mumbai, India. This distribution system operates above Six Sigma performance without the help of advanced technology.

To the audience, Goodman posed the question, “Why does the system work?” One suggestion was that the length of the training time for the dabbawallas is responsible for the high quality of the services provided by the system. Another point of view suggested that the dabbawallas perform so well because they need the job, and they know if they perform the service properly, they will have job security. Goodman stressed that motivation, coordination, and problem-solving are key components in the success of the organization.

Goodman is a documentary filmmaker and has produced around 20 educa-tional films about work and workers. In addition, he has produced two TV level documentaries on India and Brazil, which have appeared nationally on PBS, have been distributed internationally, and have appeared in selected film festivals.

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sustainableglobal supply chain

the

IsraelMoreno-BarceloCEMEX:Developing the Low Income Sector

What if your largest group of potential and current customers were also the most burdened and the least financially independent? CEMEX is working to alleviate

the burden on the low income sector and is helping create a sustainable corporate setting as a result. Patrimonio Hoy is a program to help improve the housing conditions in the self con-struction segment in Mexico. By improving life conditions through housing, CEMEX is helping to improve lives. This program is successful because of involvement within the community. CEMEX offers assistance at all levels. Awareness is raised through small group interaction. Groups of three register and attend sales sessions and technical advisory sessions. Finally, the materials are delivered. This program is about people, the most important aspect of sustain-ability for any company. Through their efforts CEMEX has improved the lives of countless families in Mexico and is continuing this effort in more and more countries around the world.

GrantHellwarthPRICEWATERHOuSECOOPERS:The Ulysses Project

The Ulysses project came about as the result of three strategic challenges put forth at PWC: Leadership, Diversity, and Sustainability. The goal is to take a group of partners on

a journey to help form a multi-cultural network of future leaders for the company. One journey brought a team to Madagascar, off the South-East coast of Africa. Water conditions in Madagascar can be frightful for westerners. The average citizen of the U.S. would not be able to drink such water. The PWC team saw a need and delivered. A result of the team project in Madagascar is continuing efforts to improve water quality so a person can begin to expect good water. This is the essence of Corporate Social Responsibility. No utility can be immediately seen from these efforts yet the group proceeds. With efforts such as this, sustainability will become the norm not the exception in Madagascar.

Bin (Odien) XuCenter Graduate Assistant Aug 2006 - May 2008 MBA Class of 2008

B.S., Polymer Engineering and Sciences, Shanghai University, 2002

Odien secured a 2007 summer internship with Fairfield Manufacturing in Lafayette, Ind.

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The Green Supply Chain

Panel Session II

AdamLowryandGretchenSiffringMETHOD:Hip Not Hippee

Method is a fast-growing startup company that makes household clean-ing products. For any company to enter a very mature industry dominated

by heavyweights such as Proctor & Gamble, is a bold move indeed. The company was co-founded by Adam Lowry in 2000 with the belief that they could “revitalize the drudgery of cleaning with soaps and sprays, designed to be easy on the eyes, nose, and the environment.” Lowry has a Bachelor of Science degree in Chemical Engineering from StanfordUniversity and prior to founding Method, he worked as a climate scientist for Carnegie Institute of Washington. It was here that Lowry had an epiphany of sorts: “I felt that I was preaching to the converted.” Method doesn’t see concern for the environment and good business as competing interests. “We don’t ask you to trade off by using a green cleaner that doesn’t work.” Lowry believes that they are the “same science” and sustainable, long-term growth is only possible by aligning business and environmental interests. Hiring talented managers who under-stand Method’s philosophy also helps.

Gretchen Siffring joined the company in 2004, and is a graduate of Purdue University with a degree in engineering. As “planu-facturement” director, she

is responsible for coordinating the supply chain for Method. She was prominent in introducing a concentrated laundry deter-gent that dramatically reduced Method’s cost of shipping by using smaller and lighter bottles. Method estimates that this single innovation allowed it to reduce transporta-tion costs and greatly reduce harmful emissions, equal to 25,000 cars per year!

JeffJeffriesIRMCO:The Fish Oil Guys

IRMCO was originally named International Lubricants Limited, founded in 1914 by William O. Jeffery, Sr. in Philadelphia, Penn-

sylvania. In the early years, the company’s primary products were petroleum based. In the 1980s, Jeffery Sr. relinquished control to his sons William C. Jeffery and Bradley J. Jeffery. The two brothers sought to service a very specialized niche market of metal stamping. This strategy proved so successful that the company doubled in size between 1982 and 1984. But the com-pany had another agenda that was unique for its day. It started offering non-petroleum

based lubricants that were not only superior, they were environmentally friendly too. IRMCO fluids were slightly more expen-sive than conventional lubricants but there were virtually no clean up costs. These non-petroleum based lubricants paid dividends for companies that used them in more efficient downstream cleaning and in reduced environmental liability. For Jeff Jeffery, the moment of inspiration for this type of product came as a child when he saw a river ablaze near his home – the river was used by manufacturing plants to dump used oil which had caught fire. Jeff was so shaken by this experience that he knew that he to do something about it. As president and CEO of IRMCO, he is making that dream a reality.

Sustainable Supply Base Panel Session III

CathieKozikMOTOROLA:Creating Sustainable Transformation

MarioHegewaldEATONCORPORATION:Supply Chain Continuity Planning: The Next Business Imperative

Motorola’s major drive is in creating an integrated supply chain, one that shares with Motorola a common system of values, beliefs, and goals. Eaton

on the other hand, is focused on “supply chain continuity planning,” a topic that Hegewald was certain the audience had never heard before. For Motorola to enjoy continued success, Kozik pointed out that the company must never accept the status quo. Instead, employees are continually challenged to innovate and push the envelope. Along those same lines, Motorola has started a new initiative to rethink the supply chain and improve the way business is conducted around the world. Motorola’s ultimate goal: make it to first place on the AMR Research list and turn their supply chain into a competitive

20

Daniel BrownCenter Graduate Assistant Aug 2006 - May 2008 MBA Class of 2008

B.S., Mechanical Engineering, University of Waterloo, 2003

Daniel secured a 2007 summer internship with GE Financial.

advantage. To bring about this goal, Kozik highlighted six priorities that Motorola is after: execution excellence, deep supplier relationships, manufacturing and logistics optimization, quality renewal, common leveraged IT solutions, and organization efficiency. By combining these priorities with Motorola’s key behaviors of straight talk, unbridled enthusiasm, righteous indignation, and innovation, Motorola will be well on its way to achieving a best-in-class supply chain. If you ask Eaton what supply chain sustainability is all about, and they will give a completely different answer. For a global manufacturer of industrial products, Eaton faces an ever-increasing risk of supply chain disruptions. Measures that are typically associated with cost-cutting and improved

corporate performance, are also putting the company at greater risk should something arise. Examples of this include single-sourcing, out-sourcing, leaner inventories, reduced lead times, and diversified product portfolios. With these movements on the rise Eaton will manage the risk through supply chain continuity planning. Kozik and Hegewald were just the right presenters for wrapping up the conference. The entire event was after all, devoted to supply chain sustainability, and at its root, the issue of what companies are doing to preserve their futures. Conference attend-ees will take comfort in knowing that supply chain managers at Motorola and Eaton are working hard to ensure the companies will still be around years from now.

sus•tain•abil•i•ty is an attempt to provide the best outcomes for the human and natural environments both now and into the indefinite future. It relates to the continuity of economic, social, institu-tional and environmental aspects of human society, as well as the non-human environment. It is intended to

be a means of configuring civilization and human activity so that society, its members and its economies are

able to meet their needs and express their greatest potential in the present, while preserving biodiversity and

natural ecosystems, and planning and acting for the ability to maintain these ideals in a very long term. Sustainability affects every level of organization, from the local neighborhood to the entire planet.

sus•tain•abil•i•ty

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CaseSynopsisA fictitious company, Warmco, the largest distributor of air-conditioning, heating and refrigeration products in the United States, is benefiting from new federal guidelines that require air conditioners to be more energy efficient, which usually means they’re also more expensive. Other factors are helping the company as well including home construction being up, interest rates that are still relatively low, and it doesn’t hurt that central air conditioners have a “useful life’’ of 15 years. After much contemplation, Warmco created three possible scenarios that would play out in the industry, with housing starts and SEER 10 permissions as further refinements.

Scenario 1: No delay in SEER 13 supplies, 2010 has no effect on customer choice, no SEER 14 incentives by utilities

Scenario 2: No delay in SEER 13 supplies, 2010 has an effect on customer choice, SEER 14 incentives offered by utilities

Scenario 3: 2 months delay in SEER 13 supplies, 2010 has an effect on customer choice, SEER 14 incentives offered by utilities.

Across the three scenarios, Warmco had to determine what the most likely scenario was to play out, and de-cide on parts demand. But who could help him make that decision and develop a supply chain strategy and what would they choose?

TheCompetitionSchools participating to answer this question were:

The China Europe International Business SchoolGeorgia TechIndiana UniversityMichigan State UniversityPurdue University, University of IllinoisUniversity of MichiganUniversity of Southern CaliforniaWashington University at St. Louis The three finalists were Indiana University, Purdue University and the University of Illinois, with this year’s winners, Dave Ernst, Bret Hanson, Justine Mikals and Camilo Zapata, representing Purdue University. Chromcraft Revington, E & J Gallo Winery, Krannert Graduate Student Association and Purdue University’s CIBER were sponsors of this year’s exciting MBA case competition.

Student Case CompetitionsTwo of the highlights from the 2007 GSCMI spring conference on sustainability were the graduate and undergraduate case competitions which began on Thursday evening.

1stPrize:$5000Purdueuniversity

KGSA Krannert Graduate Student Association

WewouldliketothankthefollowingindustryexecutivesforservingasjudgesfortheMBAcasecompetition. John Rassieur IBM

Doug Riefstek E & J Gallo Winery

Randall Hountz Indiana TAP

Scotty BrooksFaris Chesnutt Philip Morris, USA

Ronan Miot Heartland Automotive, LLC

Cathie Kozik Motorola

Matt Edwards Eli Lilly

Wayne Ogorzalek Air Products & Chemicals

2ndPrize:$3000universityofIllinois

3rdPrize:$2000Indianauniversity

The MBA Supply Chain Case Competition focused on environmental regulation and the impact on the supply chain. The case was entitled “Cooling a Hot A/C Market.” (Case written by Professors Ananth Iyer and Svenja Sommer)

The Undergraduate Supply Chain Case Competition was sponsored by Starbucks and focused on how making decisions about product details affects the entire supply chain profitability.

1stPrize:$1200Team6:LauraKightlinger,KaraEschbach,AnnieKing

Wewouldliketothankthefollowingindustryexecutivesforservingasjudgesfortheundergraduatecasecompetition. Clemens Koerkamp Royal Friesland Foods

Tim Kern Starbucks

Jesse Moore, Jr. Roger StewartHank Suerth Purdue University

David Woolums Village Coffee House

Steve Shade Purdue University’s Discovery Park – CAM

Gary DeCastro MarketSphere Consulting

Raymond Presser Indiana Logician

The case entitled “Starbucks & the Milk Decision – doing the right thing,” was written by Krannert Professor and Center Director Ananth Iyer and posed an interesting challenge for the undergraduate competitors. It was a search to present a quantitative analysis of alternate supply chain configurations to supply organic milk at Starbucks stores.

TheCompetitionThe undergraduate competition consisted of nine Purdue teams and also took place the first night of the spring conference. Congratulations to the team of Kara Eschbach, Laura Kightlinger, and Annie King for taking home the first prize of $1,200.

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2ndPrize:$750Team9:PeterLeenhouts,NickWoodruff,LindonGord

3rdPrize:$550Team5:AndrewThrasher,GiselleMendez

SpringGlobalSupplyChainManagementEventParticipation

Students

Faculty/Staff

Business

StudentVolunteers

#of

Par

tici

pant

s

0

50

100

150

200

250

300

103

20

40

25

183

12

40

53

2005-2006 2006-2007

MBA students who display an interest in operations or supply chain can enroll in courses which can lead them to an option area completion in manufacturing technology management or global supply chain management.

Involvement in either or both of these options presents students the opportunity to:

• Select courses related to manufacturing or supply chain across all functional areas

• Complete projects led by faculty in Manufacturing or Supply Chain Management

• Attend Best Practice Study Abroad tours in Asia, South America or Europe

• Participate in hands-on learning events

• Interact with companies who hire students for domestic or international internships

• Win scholarships to attend study abroad programs, case competitions and conferences

• Develop a global perspective on current events through programs, articles and speakers

Student Academics

MBA Option Areas

Global Supply Chain Management OptionThis option allows students to see how the complex network of suppliers, manufacturing facilities, distribution centers and customers located around the world can work together to ensure that the right product arrives at the right place at the right time for the right price.

OptionObjective:To focus on managing issues associated with:• Structuring, understanding and procuring from global supply chains that include domestic and foreign suppliers• Serving the supply chains of global customers• Coordinating supply chains that function across country and other critical boundaries

CourseRequirements:This option offers a broad-based approach. Required courses are selected from across Krannert’s functional areas to equip students with the knowledge they need to succeed.

To complete the option you must complete five elective courses, at least two courses each from Group I and Group II.

Group I 561 Logistics 564 Service Operations 590D Sourcing & Procurement 590Y E-Commerce & SCM 667 International Ops690D Info Security 623 Business Marketing 649 Global Economy Mgmt 690N Data Mining

Group II509 International Accounting643 Financial Risk Mgmt645 Mergers & Acquistions691V Strategic Management III689 Strategy in MNC690Z Strategic Cost Mgmt OBHR 669 Negotiations OBHR 650 International HR

MBAStudentsGraduatingwith

GSCMOption

TotalGSCMcertificatesgrantedsinceCenter

inceptionin2005:43

24

1

Manufacturing & Technology Management OptionManaging a manufacturing enterprise has never been more challenging or exciting than today. With the focus of corporate leaders increasingly shifting towards innovation and entrepreneurship and high-value, high-margin products in new and evolving industries, students must be well-prepared to succeed in today’s highly competitive world of manufac-turing. The MTM option focus allows students to prepare for these challenges

Optionobjective:Develop skills in every functional area required to be a successful manager and leader in the manufactur-ing industry.

CourseRequirements:MTM students must take courses in at least five of the following seven areas to satisfy Part I:• Human resources in manufacturing• Product design and development• Production planning and control• Systems integration and information management• Total quality management (TQM)• Manufacturing strategy• Manufacturing finance

Part II requires four additional electives selected from the following areas: • Accounting• Marketing• Business Law• MIS• Economics• OBHR• Finance• Operations• Industrial Engineering• Quantitative Methods• Manufacturing• Strategy

MBAStudentsGraduatingwithMTMOption

StudentandIndustryInteractionTimeline

Student Scholarships Attracting talented students is increasingly a function of the financial package that Purdue can offer. Therefore, generous scholarships to students who express sincere interest in supply chain and manufacturing management enhance the quality of students enrolled at Krannert.

2006-2007GraduateScholarshipsBrian Brown . . . . . . . . . . . . Rolls-Royce ScholarshipCarmen Collieraz . . . . . . . . Rolls-Royce ScholarshipJaime Garzon Robertson . . Kimberly-Clark DCMME Graduate ScholarshipMark Vymyslicky . . . . . . . . Ensign-Bickford DCMME Graduate Scholarship

2006-2007undergraduateScholarshipsJanna Clark . . . . . . . . . . . . Caterpillar DCMME ScholarshipScott Kowalski . . . . . . . . . . Caterpillar DCMME ScholarshipKuan-Hsien Lee . . . . . . . . . Caterpillar DCMME ScholarshipNathan Knestrick . . . . . . . . Delphi Corporation Manufacturing ScholarshipKatherine Biehl . . . . . . . . . E. T. Weiler DCMME ScholarshipLisa Mrzlack . . . . . . . . . . . E. T. Weiler DCMME ScholarshipJason Heman . . . . . . . . . . Joseph Turk DCMME Scholarship

05

101520253035404550

1997199819992000200120022003200420052006

25

23

45

27

21

11

23

GraduationYear

#of

Stu

dent

s

EnrollinMTM/GSCMI

Courses

AquireSummer

InternshipsAttendGlobal

“BestPractice”Tour

CollaboratewithIndustrythroughProjectCourses

NetworkatFallOperations

Conference

AquireFull-timePosition

SuMMER1STYEAR 2NDYEAR

NetworkatGSCMSpringConference

Admissions SummaryApplications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 926Admitted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442Enrolled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206Business Administration (MBA) . . . . . . . . . . . . . . . . . 143Business Administration (MSIA) . . . . . . . . . . . . . . . . . 31Human Resources Management (MSHRM) . . . . . . . . 32

Statistics (MBA only)Mean Undergraduate GPA . . . . . . . . . . . . . . . . 3.27/4.0Middle 50% GPA Range . . . . . . . . . . . . . . . . . . . 3.0-3.6Mean GMAT Score . . . . . . . . . . . . . . . . . . . . . . . . . . 661Middle 50% GMAT Range . . . . . . . . . . . . . . . . . 620-700Mean Post-baccalaureate Work . . . . . . . . . . . 4.4 yearsMiddle 50% Post-bac Work Experience . . . . . 2-6 yearsPost-bac Work Experience . . . . . . . . . . . . . . . . . . . 85%Mean Pre-bac Work Experience1 . . . . . . . . . . 3.2 years1 Pre-baccalaureate experience is calculated only for students who graduated in 2006 and includes military, full-time, and significant internship/co-op experiences.

Demographics (All Programs)Women . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29%Minorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17%Underrepresented Minorities . . . . . . . . . . . . . . . . . . . 9%International MBA Students . . . . . . . . . . . . . . . . . . . 45%Average Age . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 yearsCountries Represented . . . . . . . . . . . . . . . . . . . . . . . . 23Undergraduate Schools Represented . . . . . . . . . . . 124Purdue Baccalaureate Degrees . . . . . . . . . . . . . . . 20%Previous Advanced Degrees . . . . . . . . . . . . . . . . . 15%

U.S. Geographic Distribution

2006 Master’s Student Profile Summary

Undergraduate Majors (MBA/MSIA)

Undergraduate Majors (MSHRM)

8%Liberal Arts/Other

30%Engineering

35%Business

27%Science/Technology

25%Science/Technology

41%Liberal Arts/Other

34%Business

12%U. S. Territories/Other

4%East

2%South

20% West

49%Midwest

13%South/Southeast

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Undergraduate Manufacturing Management Minor in BS Industrial ManagementUndergraduate students with interests similar to those of the MBA students can pursue an industrial management major with a manu-facturing management minor. The goal for each group is to nurture meaningful summer internship experiences, and secure full-time employment upon graduation.

Coursework in the MM minor builds on the strong analytical base of the BSIM program. On this base is built an interdisciplinary set of courses in advanced manufacturing planning and control systems, manufacturing strategy, and the management of advanced manufacturing organizations. Valuable back-ground knowledge is covered in a set of manufacturing focused electives.

The vast majority of graduates with the MM minor are expected to assume entry-level positions directly in the production and operations function of manufacturing firms. However, these graduates will not be narrow specialists in engineering or supervision. Instead, the notion is that MM graduates will understand how the manufacturing process interacts with other activities of the firm and with the firm’s strategic goals. They will not only be knowl-edgeable about contemporary manufacturing techniques, but be attentive to human resource considerations, to financial implications, and the market-driven positions of the firm. In brief, the objective is that MM graduates have the skills to manage tomorrow’s as well as today’s factories, and, indeed, to contribute to the successful design of tomorrow’s.

BSIM/MM requires an interdisciplinary set of three courses in:

• Advanced Manufacturing Planning and Control Systems• Manufacturing Strategy• Management of Manufacturing Organizations

To ensure some exposure to the technical realities of the manufacturing environment, the student must choose at least two additional approved courses in:

• Quantitative Methods• Technology• Industrial Engineering • Management Information• Systems Analysis and Design• Computer-Integrated Manufacturing• Organizational Behavior & Human Resources

Mark VymyslickyCenter Graduate Assistant Aug 2006 - May 2008 MBA Class of 2008

B.S., Electrical Engineering, University of Illinois Urbana-Champaign, 2004

Mark is pursuing his MBA with concentrations in finance and operations. He secured a 2007 summer internship with Kohl’s in Chicago, Ill.

2006-07 Manufacturing Management Minor Statistics Krannert Undergraduate Students . . . . . . . . . . . . . 2692BSIM Program overall . . . . . . . . . . . . . . . . . . . 215 (8%)Pre-IM* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106 (7%)Upper-level IM** . . . . . . . . . . . . . . . . . . . . . . . .109 (9%)Total BSIM with MM minor . . . . . . . . . . . . . . . . .40 (37%)

* Management students in their freshman and sophomore year who have not formally declared IM as their major.** Juniors and seniors management students who have declared IM as their major.

MBA & Undergraduate Recruiting Companies:

AbbottLaboratoriesAccentureAlcoaBankofAmericaCarrierCernerChevronCitibankContax,Inc.CumminsDaimlerChryslerDellDeloitte&ToucheDiscoverFinancialServicesEatonCorporationEchostarCommunicationsEmersonGeneralElectricGeneralMillsGeneralMotorsCorporationGoldmanSachsGuidantHoneywellHumanaIBMIndianaVentureCenterIngersoll-RandIntelJewellOscoJohnson&JohnsonKeyenceKraftFoodsLockheedMartinMarathonPetroleumCompanyNorthropGrummanPratt&WhitneyProcter&GambleRaytheonSamsungShellOilWyeth

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HEINRICH (HENRY) ALERSMBA Class of 2007President Krannert Operations Club (2006-2007)B.S. Mechanical Engineering, University of Illinois Urbana-Champaign, 2002

Henry graduated from the University of Illinois in 2002 with a degree in mechanical engineering. During his undergraduate studies he also com-pleted internships at North American Lighting in Illinois and Hella in Germany. After graduation, he worked at a small privately owned automotive lighting manufacturer (Treemen Industries) in Youngstown, Ohio as a process engineer and production manager. He spent the next two yeas working at Ariba (formerly FreeMarkets) in Pitts-burgh, where he worked on large e-procurement projects for Fortune 500 clients. Henry is concentrating his MBA studies in Global Supply Chain Management. Over the summer, he completed an internship with Emerson in Houston, TX, where he worked on the creation of a Lean Supplier Development program. After graduation, Henry will take a position as a Supply Chain Strategy Consultant with IBM in Chicago.

COLBY J. SMITHMBA Class of 2008President Krannert Operations Club (2007-2008)B.S. Industrial Engineering, Purdue University, 1999

Colby brings a wealth of experi-ence in the fields of operations and supply chain management garnered through seven years of professional experience. Prior to embarking on an MBA from Purdue University, he worked for Ford Motor Company as an industrial engineer, Applied Power Solutions as an applications/strat-egy manager, and Parker Hannifin as a territory manager and account representative. During his time at these organizations he brought a sustain-able methodology for continuous improvement, long term cost savings and revenue generation and team building and leadership qualities that resulted in perpetual small group activities involving quality control and cost reduction. By employing multiple skill sets Colby has been able to maintain the ability to continuously im-prove the continuous improvement process.

Student Involvement

StudentVolunteers

TheCentersofferoccasionsforstudentstoexperienceaction-basedactivitieswhichgivereal-worldexperienceandprovideunsurpassedpreparationforthemtoassumeleadershiproles.

Overthepastyear,wehavehadmorethan70MBAandundergraduatestudentstaketimeoutoftheirbusyschedulesandawayfromstudies,tohelpmakeourmanyeventsandactivitiessuccessful.

Wesaluteourmanyamazingstudentvolunteers!

EventStudentTeamLeadersAndrey Abanshin, MBA 2008Heinrich Alers, KOC President, MBA 2007Susan Campbell, MSHRM 2008Priya Gupta, MBA 2008Nate Knestri – IMSA Pres., BSIM 2008Tushar Mutatkar, MBA 2008Bob Perchard, MBA 2008Sheana Riegle, MBA 2008Ruchir Srivastava, MBA 2008Kamlesh Thalor, MBA 2008Renaldo Trancoso, MBA 2008

OtherEventStudentVolunteersSharad Agarwal, MBA 2008Raymond Arthur, MBA 2007Francisco Balma-Calderon, MSIA 2007John Barrand, MSHRM 2008Daniel Brown, MBA 2008Chris Calas, MBA 2008Sailaja Chadaram, MSHRM 2008Twinky Chai, MBA 2008Wayne Chan, MBA 2007Monica Donahue, MSIA 2007 Fuping (Harley) Chen, MBA 2008Donna Cumberland, MBA 2007Arnab Das, MBA 2008David Ernst, MBA 2007John Gant, MBA 2007Bret Hanson, MBA 2008Doug Hanson, MBA 2007Earl Hart, BSIM 2008Nick Haywood, MBA 2008Jessica Holzer, MBA 2008David Hules, MBA 2007Kate Hutchison, MBA 2008Charles Jischke, MBA 2008Santosh Kumar, MSIA 2007Xin Li, MBA 2007Paris Lubis, MSIA 2007Pete Mast, MBA 2008Justine Mikals, MBA 2007Jessica O’Leary, MBA 2008Susmit Pal, MBA 2008Anshuman Pramanick, MSIA 2007Ulugbek Rakhimov, MSIA 2007Vidya Rao, MSHRM 2008Marvin Rodriguez, MBA 2008Ghazi Saleem, MBA 2007Bernadine Sierra, MBA 2006Ishmeet Singh, MBA 2008Colby Smith, MBA 2008Atul Srivastav, MSIA 2007Rishi Talwar, MBA 2007Naresh Venkatsubramanian, MBA 2008Mark Vymyslicky, MBA 2008Amanda Whipple, MSHRM 2008Bin (Odien) Xu, MBA 2008Juan ZapataJian Zhao, MBA 2008IMSA Members

Krannert Operations Club The mission of Krannert Operations Club is to provide MBA students focused in operations, manufacturing or supply chain management career interests, gain the industry exposure needed to be effective managers in the workplace. This is accom-plished by hosting and sponsoring guest speakers, kaizen events, plant tours, case competitions, workshops, meetings with alumni, and numerous leadership opportunities.

SummaryofEvents:2006-2007AcademicYearKrannert’s most active club award for 2007 was be-stowed on the Krannert Operations Club (KOC), which helped provide members with opportunities to see the field of operations and supply chain management through a variety of events. This year, the club traveled to four manufacturing plants in Indiana and focused on getting more out of the trips than a simple plant tour. At Eaton’s Greenfield plant, club members had a chance to have lunch with the plant manager and obtain insights into the challenges and operations there. Cummins provided a panel discussion with supply chain professionals to the members who went to visit their plant in Columbus, IN. At AM General plant in Mishawaka, IN, KOC members not only got to see the assembly operations of the Hummer H2, but also got to spend time with the plant manager and visit the Hummer test track. KOC also sponsored teams to take part in the annual MBA Operations Case Competition at Carnegie Mellon University, held an informational session about intern-ship opportunities to first-year students, and sponsored a team to participate in the on-line operations simulation competition hosted each year by MIT. One of the largest events of the year KOC participated in was the second annual spring Global Supply Chain Conference hosted by DCMME/GSCMI at Krannert, in which the Krannert Team, consisting of KOC members, won 1st place.

2007-2008NewlyElectedOfficersColby Smith, President Sharad Agarwal, VPArnab Das, VP Sheana Reigle, VP

2007-2008KOCPlansandInitiativesPlant Tours AM General Hummer 2 plant Allison Transmission Subaru Plant Carrier Corporation Rolls Royce Speaker Presentations McKinsey & Co. Operations Practice Carlisle & Co. Automotive Strategy and Operations IBM GM UTC

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APICS – Purdue Student ChapterIn the spring, Central Indiana The Association for Operations Management (APICS) chapter president, David Hinko of Rolls-Royce, along with past-president, Susan Gentry of DOW AgroSciences, let Krannert’s Operations Club (KOC) get an inside view of just how APICS works. APICS is the global leader and premier source of the body of knowledge in operations management, including production, inventory, supply chain, materials management, purchasing, and logistics. Since 1957, individuals and companies have relied on APICS for its superior training, internationally recognized certifications, comprehensive resources, and worldwide network of accomplished industry professionals. KOC members were invited to a telecast of APICS’ Professional Development Seminar on Supply Chain Management topic – Lean for the Office, presented by Anne Haberkorn. The telecast was a chance for members to have a ring-side seat to the internal operations of APICS meetings and to ask questions. While APICS currently has an active Purdue chapter, KOC is looking to expand the scope of the chapter and increase Krannert student membership. APICS offers an excellent avenue for students and professionals to develop their on-the-job skills, enhance their networking base, and become educated and certified in industry standards that will give them an edge over the competition in the employment market.

Industrial Management Student AssociationThe mission of Industrial Management Student Association is to provide a better understanding of the minors associated with the Industrial Management degree, to improve the opportunity for students to succeed in the IM curricula, to increase the familiarity with the job search process, to act as the liaison between students and companies, and to provide community service. The IMSA is committed to promote the professional growth of Purdue industrial management students by:• Facilitating the learning of business education through outside-of-classroom experiences• Enhancing the understanding of industrial management career• Providing students with the opportunity of networking with industrial management professionals• Increasing the professional interaction between and among students, academia and industry• Developing leadership skills

2007–2008IMSAOfficers Madelyn Harris, VPNathan Knestrick, President Earl Hart, VP Weiyang Wang, Secretary

ThunderbirdCompetition

OnMarch22-23,2007,ateamofKrannertMBAstudentsparticipatedinthe2007Thun-derbirdSchoolofGlobalManagementCaseCompetitiononSustainableInnovation.TheDauchCenterfortheManagementofManu-facturingEnterprisesandtheGlobalSupplyChainManagementInitiativeprovidedminorsponsorshipfortheKrannertteamcomposedofMaryAlbrecht,SusanCampbell,JessicaO’Leary,JonathanGortat,SteveCreelandCharlesJischke. Thecompetitionfocusedoncreatinginnovativesolutionstoreal-worldbusinesschallengesthatreflectacommitmenttoeconomic,environmentalandsociallysoundbusinesspractices.InmanywaysthisthemeechoedthediscussionsthattookplaceattheGSCMIspringconference,themedTheSustainableGlobalSupplyChain.Whenaskedaboutthislink,managingdirectorMaryPilottesaid,“It’sreallyexcitingtoseestudentsembracetopicswhichourCentersbringtotheforefrontthroughconferencesandspeakerevents.WeareproudtoseesomeofKrannert’sfinestgoingoutonalimbtotesttheirlearning,andweareproudtopromotethathoweverwecan.” Inall,morethan85teamsrepresenting45universitiesin13countriescompetedinthecompetition.TheKrannertteam,alongwithnineothers,wereselectedtoparticipateinthefinalcompetitioninPhoenix,Az.Purdue’steammadetwopresentationswithdistinctlyglobalflavors.TheycraftedafuturevisionforMerckinIndiaanddiscussedoptionsforJohnsonandJohnsonprovidingHealthcareSolutionstotheWorld. DCMME/GSCMIiseagertoreceiveyourfeedbackoncasecompetitions.Doyoube-lieveinthebenefitsofexperientiallearning?Would you or your company be interested in sponsoring this or other case competitions in the future? If so, send an email to gscmi@purdue.edu with subject line “Experiential Learning,” and tell us how you would like to get involved!

ThunderbirdCompetitionTeam(L-R):SusanCampbell,CharlesJischke,JessicaO’Leary,JonathanGortat,MaryAlbrecht,andSteveCreel

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Ananth IyerSusan Bulkeley Butler Chair in Operations Management and Director, DCMME and GSCMIPh.D.,IndustrialandSystemsEngineering,GeorgiaInstituteofTechnology,1987

Professor Iyer was named Purdue Univer-sity Faculty Scholar in 1999. His teaching and research interests are operations manage-ment and logistics.

Professor Iyer’s research currently focuses on analysis of the impact of promotions on logistics systems in the grocery industry, and analysis of the impact of competitors on operational management models.

Tom BrushPh.D.,EconomicsandBusinessAdministration,universityofMichigan,1990

Professor Brush teaches courses in strategic management and manufacturing strategy. In the area of corporate strategy his interests include

entry scale of established vs. new firms, resources within diversified firms (and their role in acquisitions), and the rela-tive importance of firms, industries and businesses in understanding business unit performance. His research interests in the area of manufacturing strategy include the management of international plant networks, plant location for multinational firms, supplier relationships, and the transfer of ca-pabilities such as flow manufacturing within firms.

Faculty Interests We are grateful for the many faculty at Krannert who

participate in the Center-sponsored events, projects and research. Thanks to each of them for their efforts to progress the study of operations and global supply chain management.

Maqbool DadaPh.D.,Management,MassachusettsInstituteofTechnology,1984

Professor Dada teaches operations manage-ment. His research interests include inven-tory systems, pricing models, service sys-tems, and international

operations management.

Vinayak DeshpandePh.D.,OperationsManagement,WhartonSchool,2000

Professor Deshpande teaches operations management. His research interests are in the areas of supply chain coordination, service parts manage-

ment, and contingency logistics sys-tems. His other topics of study include military applications and inventory models.

Joice HuPh.D.,Operations,CaseWesternReserveuniversity,2006

Professor Hu joined the Krannert faculty in 2006. Her research in-terests are supply chain management, service operations manage-ment, coordination of

operations with finance, and operations management applications of the eco-nomics of industrial organizations.

Greg HundleyProfessor of ManagementPh.D.,IndustrialRelations,universityofMinnesota,1981

Professor Hundley’s interests include human resource management, compensation and reward, international human resource man-agement, and entrepr-

neurship. His current areas of research include strategic human resource management, self employment, and international compensation.

David HummelsPh.D.,Economics,universityofMichigan,1995

Professor Hummels’ teaching interest is in international eco-nomics. His research focuses on empiri-cal investigations in international trade, with

a special emphasis on product differen-tiation, barriers to trade, and the effects of transportation and infrastructure on trade and economic development. His most recent work, funded by the Na-tional Science Foundation, focuses on the effect of disruptions to international commerce, such as those caused by the 9/11 attacks, and the West Coast port lockout.

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Karthik KannanPh.D.,InformationSystems,CarnegieMellonuniversity,2003

Professor Kannan’s teaching interests include database management, elec-tronic commerce and telecommunication. His current research

focuses on markets and pricing of information goods/services, and eco-nomics of information security.

Aldas KriauciunasProfessor of ManagementPh.D.,CorporateStrategyandInternationalBusiness,universityofMichigan,2004

Professor Hundley’s interests include human resource management, compensation and reward, international human resource

management, and entreprneurship.His current areas of research include strategic human resource manage-ment, self employment, and international compensation.

Bill KrossProfessor of ManagementPh.D.,Accounting,universityofIowa,1975

Professor Kross has been with Kran-nert since 1978. He teaches financial and managerial ac-counting. His current research interests

include determining the effects of ac-counting information on stock prices and analyzing earnings forecasts.

Yanjun LiPh.D.,OperationsResearch,CarnegieMellonuniversity,2002

Professor Li’s teach-ing interests include management science, statistics, production, optimization models, and algorithms. His cur-rent research includes

discrete optimization and application, approximation algorithms, network and graph, location and distribution, vehicle routing, lot sizing and scheduling, inven-tory and supply chain management, and financial optimization.

Raghu RaoAssociate Dean for Programs and Student ServicesPh.D.,Management,INSEAD,1997

Professor Rau’s primary teaching interest is corporate finance, both theoretical and empirical. His current research areas are in the fields of empirical

corporate finance and the economics of information. His focus in information economics is centered on the acquisi-tion and utilization of information by participants in a market framework.

Jackie ReesPh.D.,DecisionandInformationSciences,universityofFlorida,1998

Professor Rees’ teach-ing interests include principles of MIS, database management systems, data mining, decision support sys-tems and information

security. Her current research interests include genetic algorithms and machine learning, information security, and com-plex systems.

Bill RobinsonProfessor of ManagementPh.D.,BusinessAdministration,universityofMichigan,1984

Professor Robinson’s current teaching inter-ests include marketing management, market-ing strategy, and new product development. His current research

focuses on order of market entry, prod-uct innovation, and dominant firms.

Svenja SommerPh.D.,Management,INSEAD,France,2004

Professor Sommer’s research interests include project management under high uncertainty and new product develop-ment processes. Her

teaching interests include operations management, project management, and new product development.

Mohit TawarmalaniPh.D.,IndustrialEngineering,universityofIllinois,urbana-Champaign,2001

Professor Tawar-malani’s teaching interests are determin-istic and stochastic operations research, logistics, production planning, engineer-

ing economics, statistics, and decision analysis. His research interests include mathematical programming, complex-ity and approximation, and symbolic computing.

Jim WardPh.D.,OperationsResearch,CarnegieMellonuniversity,1980

Professor Ward’s primary teaching interests are logistics and capacity planning systems. His current research interests in-clude inventory-distri-

bution system design, location models, and interactive computing.

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DCMME/GSCMI: A powerful resource to take with you!

32

DCMME/GSCMI: A powerful resource to take with you!

33

Visitourwebsitesat:www.dcmme.orgwww.gscmi.org

How many ways does your contribution enrich the university?#ofindustryexecutivepresentations24#ofstudentsattendingplanttours&internationalinternships 56#ofstudentsparticipatingin internshippostercompetition13#ofundergraduatesparticipatinginthecasecompetition37#ofGraduate/MBAstudentsparticipatingintheGSCMIConference(volunteersandcasecompetitors)100#ofFacultyinvolvedinresearchandourCenterendeavors 17 Over 247ways

whenyouPartnerwithDCMME&GSCMI!

KeepconnectedwiththecuttingedgeofOperations&GlobalSupplyChainManagementtopics.

LearnhowyoucancontinuetobeinvolvedinCenteractivitiesandevents!

Don’tforgettostayintouch!Wewanttohearwhatinitiativesoractivitiesyourcompanyisfocusedonrelatedtooperationsand/orsupplychain.

Emailusat:gscmi@purdue.edu

The Dauch Center for the Management of Manufacturing Enterprises (DCMME)

and

Global Supply Chain Management Initiative (GSCMI)

MaryPilotte,ManagingDirectorKrannert Building, Room 413

403 West State StreetWest Lafayette, IN 47907-2056

765-494-2860 www.dcmme.orgwww.gscmi.org

gscmi@purdue.edu

Krannert School of ManageMent