ortland State University Alumni Newspaper Summer 1982 PSU computer program saves millions for Omark By Butch Bernhardt On the inside ombating delinquency with tailored sports programs ...................................... 3 SU researchers battle algae at Klamath Lake ............................................ 4 lumni Nates i3 Features ........................ 5-7 Hofernarned presrdentof Meier& Frank 8 ....................... Eastern Oregon ranchers 7 ................. Sci Fi writer sets tale at PSU 7 In the News ............................................... 8-9 Dual Mrllar Award Bus~nessSchool acquires microcomputers New Academic reorganrzation plans announced Campus capsules ports ......................................................... 10 New Stadium Foolball schedule .................................................... alendar 11 Summer events Coaster Theater much define senior becau ",.l,,r.l ab,"a, figure "consc Omarl mnl ~ i n r E ffective management decisions are considered the doorway to success. An industr~ael ngineer at Omark Industries, a professor and two graduate students at Portland State University may have found a key to that doorway in the form of a computer program. The program has been in use for nearly a year. Estimates on how Omark has saved is di. , says Audi Kalayanam industrial engineer at 1 se it is hard to determil costs involved. But he if $1 million in savings swative" if you consids ( has $480 million wort n.,e nt that is now being more efficiently. The program, according to Ken Jenkins, professor of business administration at PSU, simulates Omark Industry'splant manufacturing capabilities all over the world. ff icult to ~itr, 3mark. ne ESWE S UU," U is !r that h of utilized New game "From that, we play what we call a What if? game and change certain variables. For example. Omark manufactures many different types of chain saw chains. We can use the program to ask: If we make X amount of this chain, how much capacity do we have to make this other chain?"' Kalayanamitr says the program will help make management decisions more efficient. "It helps us optimize our costs and profits. It's become a good tool for top management. We use it everyday," he explains. The project began two years ago when Kalayanamitr proposed the idea to his company. After initial approval. Kalayanamitr decided he needed help and sought out Jenkins. "He was the second one Italked to after I proposed the idea to our president of manufacturing. I was looking for help and Jenkins was the most practical choice. He was the most qualified and he had some Ken Jenklns, BUSlneSS Aamlntstratton, ana nnenran ~omlgn I a1 I. In aut agement at Tektronix, are two of a three man team who he1 program that will save Omark millions. actual experience so I knew we spoke the same language." says the engineer. Brainpower Jenkins brought in two graduate students to help develop the model. The four studied Omark's - manufacturingprocess, working up -mathematicalequations to simulate the process on the computer. A prototype package was finished in August, 1980. From there, Omark computer programmerstailored the software program to their system. "Our job was to give them a conceptual model which was completed in August. We had to prove that it could do the job they wanted it to do," says Jenkins. That meant some nights burning the midnight oil and a few hair-pulling problems. Helplng hand "In the model, we have about 2,000 variables and about 500 mathematical equations that represent various types of manufacturingcapabilities," says Jenkins. "When we first ran the program, it took about 35 minutes of computer time. That's like tying up 60 percent of their computer at or time." 'cireaie I ; Omark for . . 111ry man- :omputer support Jenkins credit: when the program was Delng developed. He says the management of the manufacturingfirm helped out at times when other companies might have backed out. The project "was and wasn't" treated like an ordinary consulting job. The professor says he charged the company a low rate of about $4,000 for the program, all of which was given to the graduate students. "And it was a great education for 'all of us. In fact, one of the students got a job at Tektronix because of his work with us," says Jenkins. The program is not the only one of its kind, says Kalayanamitr. According to correspondence with a professor at Massachusetts Institute of Technology, Kalayanamitr says some of the larger petroleum companies are using a similar process to help make decisions. "But for mediuin scale manufacturerslike Omark, this program is a pioneer," he asserts. The computer program is not expected to be outdated in the near future. Jenkins says the computer language currently being used may change, but the concept, "will never become obsolete." nted tmm Dally Journal d can-
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