MANAGEMENT OF INDUSTRIAL AND LOGISTIC SYSTEMS

Academic Year 2025/2026 - Teacher: DIEGO D'URSO

Expected Learning Outcomes

The course is designed to provide students with knowledge, competences, and applied skills concerning the fundamental principles of the design and managerial control of production and logistics systems. Students will be expected to model and address recurring technical and economic issues arising in the sizing and operation of production and service facilities, employing both analytical and simulation-based approaches, including the use of advanced computational tools.
Furthermore, students will be required to acquire foundational knowledge and competences in project management, covering all process groups (initiating, planning, executing, monitoring and controlling, and closing), in accordance with internationally recognized standards.

Course Structure

The teaching methodology consists of lectures, in which the theoretical foundations for modeling and solving practical problems will be provided. These problems will be addressed through exercises to be solved using the analytical and/or numerical methods acquired.
The modeling of more complex problems will be developed in dedicated exercises, to be solved using analytical and/or simulation methods, including the use of spreadsheets.
Lectures on theoretical topics will be delivered using a projector with slides, which will be fully provided to all students. Ample time will be devoted during lectures to the solving of numerical exercises related to the course content.
Exercises will be carried out in class using a projector and spreadsheets, and the exercise sheets will be fully provided to students.
Within the scope of Project Management, the development of a supervised project work will be proposed, with some interim reviews of the project work potentially conducted remotely.

Required Prerequisites

Mastery of measurement units and basic tools of differential calculus. Knowledge of the fundamental elements of financial mathematics and statistics.
Prerequisites: none.

Attendance of Lessons

Attendance requirements are governed by Article 3.4 of the Teaching Regulations of the Bachelor’s Degree Program in Industrial Engineering. In order to foster improved learning outcomes, instructors strongly recommend regular class attendance. To this end, a minimum attendance of 60% of lectures is required in order to be eligible for the mid-term examinations, which will take place at the end of the first and second semesters. Attendance will be monitored by instructors using the methods they deem most appropriate (e.g., signature sheets, roll call, and/or tools provided by the University’s educational services).

Detailed Course Content

Recall: main probability distributions; elements of combinatorial calculus; set theory; use of measurement units and dimensional equations; economic capitalization and discounting; random sampling.
Introduction: The industrial enterprise, the industrial plant, and general plant services. Classification of industrial plants. Flexibility, elasticity, and productivity.
Principles of engineering economics and plant-related decisions: production function; fixed and variable costs (review); depreciation and amortization; revenues and profits; relevant costs for decision-making; short-term firm equilibrium (review); contribution margin; obsolescence and wear; residual value of plants; investment costs and operating costs; inefficiency costs; economic depreciation; evaluation criteria for industrial investments.
General methods for sizing plant services: operational continuity and failure probability of elements and series/parallel circuits; reliability and availability; reserve costs; centralization vs. decentralization of services; service sizing under stochastic and periodic demand conditions; economies of scale; calculation criteria for buffer storage systems.
Material handling and storage systems: classification and plant solutions. Performance indicators for handling and storage services. Space allocation and material assignment criteria.
General techniques for the design and management of production and service plants: elements of operations research; linear programming; Monte Carlo simulation; queuing theory; plant layout; plant feasibility analysis.
Project Management: Basic concepts and definitions. Project environment and the role of the Project Manager. Project Management process groups: initiating, planning, executing, monitoring and controlling, closing; overview of inputs, outputs, tools, and techniques for managing project processes. Development of a Project Work including Project Charter, stakeholder analysis, WBS, resource, cost, and time planning.
Practical Exercises
E1. Discounting coefficients and present value of an annuity.
E2. Random sampling from a normally distributed variable.
E3. Analysis of production costs.
E4. Accounting and economic depreciation.
E5. Evaluation of an industrial investment.
E6. Calculation and simulation of a reliability system.
E7. Service continuity.
E8. Sizing of a buffer storage unit.
E9. Sizing of a material handling and storage system.
E10. Queuing theory and related simulation.
E11. Application of linear programming.
PW. Team-based Project Work.

Textbook Information

REFERENCES

1. Turco F., "Principi generali di progettazione degli Impianti Industriali", CLUP, Milano, 1990.

2. Calabrese A., “Gestione degli impianti industriali” - Voll. I e II, CUSL, 2004.

3. Caccamese A., Martinati M. Professione project manager. Guida all'esame di certificazione PMP® e CAPM®. Nuova edizione aggiornata agli standard del PMBOK® Guide Sixth Edition. Franco Angeli 

DISPENSE

D.1 Richiami

D.2 Impianti di movimentazione e stoccaggio

Course Planning

 SubjectsText References
1FIRST SEMESTER
2Recalls: Use of units of measurement and dimensional equations (theory, 1 hour)D.1
3Project Management: Basic concepts and definitions. The project environment and the role of the Project Manager. The Project Management process groups: initiation, planning, execution, monitoring and controlling, closing; brief overview of inputs, outputs, tools, and techniques for managing project processes. PW – Project Work: (theory 12 hours + practical 12 hours)Testi3.
4Introduction: The industrial enterprise, the industrial plant, and general plant services. Classification of industrial plants. Flexibility, elasticity, and productivity (theory, 2 hours)1.1.1, 1.1.2, 1.1.3, 1.1.4, 1.1.5
5Economic Capitalization and Discounting. Exercise E1 (theory 1 hour + practical 2 hours)1.3.3
6Principles of Engineering Economics and Plant Decisions: The production function, fixed and variable costs, depreciation and amortization; revenues and profits; costs relevant for decision-making; short-term business equilibrium; contribution margin; obsolescence and wear; residual value of plants; plant costs and operating costs; inefficiency cost; economic depreciation; criteria for evaluating industrial investments. Exercises E3, E4, E5 (theory 9 hours + practical 10 hours)1.2.1, 1.2.2, 1.2.3, 1.3.1, 1.3.2, 1.3.3, 1.3.4, 1.3.5, 1.3.6, 1.3.7, 1.3.8, 1.3.10
7General Techniques for the Design and Management of Production and Service Plants: Elements of Operations Research; Linear Programming; Plant Layout; Feasibility Analysis of Plants. Exercise E11 (theory 6 hours + practical 3 hours)1.5.1, 1.5.2, 1.5.3, 1.5.4
8SECOND SEMESTER
9Recalls: Main probability distributions; elements of combinatorial calculus; set theory (theory, 1 hour)D1
10General Methods for Sizing Plant Services: Continuity of operation and failure probability of elements and series/parallel circuits; reliability and availability; reserve cost; centralization and subdivision of services; sizing services under random and periodic demand; economies of scale; calculation criteria for accumulators (surge tanks). Exercises E6, E7, E8 (theory 9 hours + practical 21 hours)1.4.1, 1.4.2, 1.4.3
11General Techniques for the Design and Management of Production and Service Plants: Monte Carlo simulation; random sampling; queueing theory. Exercises E2, E10 (theory 5 hours + practical 5 hours)1.5.1, 1.5.2, 1.5.4
12Material handling and Storage Systems: classification and plant solutions; performance indicators for handling and storage services. Criteria for material assignment. Exercise E9 (theory 10 hours + practical 6 hours)D.2

Learning Assessment

Learning Assessment Procedures

Examination Structure

a) Written examination

Mid-term written tests (optional)

    • Administered in the first and second semester.
    • Admission to the oral examination (see point b) requires a minimum mark of 18/30; students who obtain a score between 15/30 and 17/30 are also admitted, although such admission is strongly discouraged.
    • If both mid-term tests are passed, the mark for the written examination will be the average of the two scores.

Final written examination (alternative to mid-terms)

    • To be taken by those who do not participate in the mid-term tests or who do not achieve the minimum required score.
    • Admission to the oral examination requires a minimum mark of 18/30; students who obtain a score between 15/30 and 17/30 are also admitted, although such admission is strongly discouraged.

b) Oral examination

  • The oral test assesses theoretical topics covered in the course syllabus as well as the exercises carried out by students based on the materials provided.
  • Students who have passed the mid-term tests may take the oral examination on the corresponding part of the syllabus during the same period in which they sat the written mid-term.
  • If both mid-term tests are passed, the oral mark will be the average of the two oral examinations.
  • Students who did not take the mid-term tests must sit the final written examination and a single oral examination covering the entire syllabus.

c) Project Work

  • Developed in groups during the first semester, using dedicated software tools.
  • The oral discussion of the project may be carried out collectively by the group or individually by each student.

Weighting of the assessments

  • Project Work: 25%
  • Written examination: 40%
  • Oral examination (theory and exercises): 35%

Examples of frequently asked questions and / or exercises

D.1 Within the context of short-term business equilibrium, define the breakeven point.
D.2 Derive the equation for calculating the breakeven point.
Note: If you can answer D.2, there is no need to remember D.1.
D.3 Describe the methods for evaluating investments.
D.4 Define the reliability of a component and of a system of components in simple reliability configurations (series and active parallel).
D.5 Size an accumulator (or surge tank) under periodic user demand conditions.
D.6 Describe in detail the approach used to develop a project Work Breakdown Structure (WBS).