Basics of Industrial Engineering
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The document provides an overview of industrial engineering (IE), emphasizing its role in optimizing systems involving people, materials, and equipment to enhance productivity and efficiency. It outlines the basic objectives of IE, including waste elimination and resource utilization, while discussing the importance of various management systems and domains of excellence. The piece also highlights the challenges in modern industrial contexts, such as rising customer demands and technological advancements.
Basics of Industrial Engineering
- 1. MCN 111 : Introduction to P&I Exposure to Industrial Engineering Dr S G Deshmukh Mechanical Engineering Department Indian Institute of Technology Delhi New Delhi 110016 14 Aug 2019
- 2. 2 Context • Fierce Competition in Economy. • Customers demands are rising. • Challenge for industries to produce goods of right quantity, quality , in time and at minimum cost. • Internet is creating and destroying opportunities • The electronic culture is invading business culture • Short attention spans • Depersonalized customer /Depersonalized Management • Executives in quandary • Role of IE?
- 3. Definition by IIIE Indian Institution of Industrial Engineering www.iiie-india.com "Industrial Engineering is concerned with the design, improvement and installation of integrated systems of men. materials and equipment. It draws upon specialized knowledge and skill in the Mathematical, Physical and Social Sciences together with the principles and methods of engineering analysis and design to specify, predict and evaluate the results to be obtained from such systems". 3
- 4. Gamut of Industrial Engineering Activities to increase/maximize productivity through the management of people, methods of business organization, and technology to design or to improvement systems for the physical distribution of goods and services and to determine the most efficient plant locations. to design or to improvement systems for the physical distribution of goods and services and to determine the most efficient plant locations. to develop methods for handling and transporting materials to increase/ maximize efficiency redesign and standardization of manufacturing processes to eliminate worker fatigue determine the product requirements. develop wage and salary administration systems and job evaluation programs develop management control systems to aid in financial planning and cost analysis development of production planning and control procedures design production planning and control systems to coordinate activities and ensure product quality
- 5. Simple perspective Industrial Engineering deals with the optimization of systems and processes (in given circumstances) through PEOPLE
- 6. • Challenge- working through people • Examples : – RDV organization – Organization of hostel event • Coordination • Soft factors 6
- 7. 7 Remarks.. The basic objective of industrial engineering is to : ▪ Enhance the productivity. ▪ Eliminate waste and non-value-added activities. ▪ Improve the effective utilization of resources.
- 8. What is Industrial Engineering? • Mechanical Engineering- to engineer a mechanical product or system. • Electrical Engineering – to engineer an electrical product or system. • Same way Computer Engineering – to engineer a computer or a system of networked computers. • Industrial Engineering: various views : – To engineer an industrial product or system (efficiently and effectively): for manufactured goods or services, originally – To engineer a product or system for industry, the military, government, education, etc. – Efficiency and Quality Engineering!!
- 9. Samsung https://news.samsung.com/in/samsung-inaugurates-worlds-largest-mobile-factory-in-india • Samsung Inaugurates World’s Largest Mobile Factory in India; Honourable Prime Minister Shri Narendra Modi Flags- off ‘Make for the World’ on 9th July 2018. • 68 million units /year to 120 million units/year by 2020 • All Samsung mobile phones, including the flagship Galaxy S9, S9+ and Galaxy Note8, are made at the Noida plant.9
- 10. Samsung Galaxy A30 model 10
- 11. Issues • Location of manufacturing site • Selection of vendors • Quality control • Manufacturing process and process control • Training of workers • Distribution channels • Human issues- Motivation, team work, leadership etc. 11
- 12. Issues.. contd • Automation • Human centered manufacturing • Supply chain • Sustainable manufacturing • Samsung – a design & innovation powerhouse 12
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- 14. 14 Dr Saha is alumnus of IIT Delhi http://www.iitd.ac.in/content/industry-day-2018-interview-dr-kaushik-saha
- 15. Basic issues … The basic ideas connected with the IE PQR Productivity, Quality, Responsiveness These are to be addressed for Organizational Excellence 15
- 17. Who are Some Famous Industrial Engineers? • Henry Ford - Founder of Ford Motor Company, assembly line pioneer Joe Girardi - Manager, New York Yankees Lee Iacocca - Former CEO of Chrysler Tom Landry - Former Dallas Cowboys Head Coach CEOs - Mike Duke (Wal-Mart); Timothy Cook (Apple) Michael Eskew (UPS); John Forehand (Accenture); Chad Holliday (DuPont); Dick Kovacevich (Wells Fargo); William Swanson (Raytheon); Edward Whitacre, Jr. (AT&T); Yun Jong Yong (Samsung) 17
- 18. Almost every industry hires industrial engineers Aerospace & Airplanes Entertainment Military Banking Forestry & Logging Mining Oil & Gas Construction Insurance Retail Consulting Materials Manufacturing Shipbuilding Electronics Assembly Materials Testing State & central Government Energy Medical Services Transportation 18
- 19. 19 Industrial Engineering Approach • In carrying out various activities, the industrial engineer; – Gathers and analyses facts. – Prepares the alternative solutions taking into consideration all the constraints both internal and external. – Selects the best solution for implementation.
- 20. 20 Industrial Engineering Approach (contd..) • At problem identification/definition stage following steps must be taken; 1- All the facts about the operation are collected and recorded using various recording techniques like charts, diagrams or models. 2- Critical Examination of all facts by asking series of questions. 3- Alternative ways are found by techniques like brainstorming. 4- based upon the criteria fixed for evaluation, the best alternative is selected.
- 21. What is Systems Engineering? • To engineer a system, with efficiency and quality • All Types of Systems: – Aviation Systems, including Air Traffic Control Systems – Telecommunication and Computer Systems – Airline Reservation Systems – Software and Database systems – Highway Systems – Manufacturing Systems, e.g., the Toyota Production System (TPS)
- 22. Observations about Systems .. ▪ Components (including machines and people) interact with each other to create the overall behaviour of the system; ▪ The system being studied is always a subsystem of a larger system and these interactions must also be considered; and ▪ Systems include humans. 22
- 23. Chandrayaan-2 Mission launched on 22 July 2019 • ISRO • Godrej • L&T • Ananth Technologies, MTAR Technologies, Inox Technologies, Lakshmi Machine Works Centum Avasarala and Karnataka Hybrid Microdevices • Godrej's contribution to the mission includes critical equipment such as L110 engine and CE20 engine for the launcher GSLV Mk III, thrusters for the orbiter and lander, and components for the DSN antenna 23
- 24. Salient IE attributes • A team of more than 1000 scientists & engineers • Collaboration between Private & Public sector • An example of marvelous Project Management • A case in Systems view 24
- 25. Exercise • Consider Indian Railways as a system • Defend why is it a “system”? • What are the “sub-systems” here? • What are the components ? • What could be the “objective”? • Learning from this ? 25
- 26. Organizational Excellence Excellence Excellence is a quality which is unusually good and so surpasses ordinary standards. It is also used as a standard of performance as measured e.g. through economic indicators. the extent to which an organization achieves a set of pre-defined targets that are unique to its mission. These targets include both objective (numerical) and subjective (judgmental) indicators. Excellence Drivers: key dimensions of an organization’s functioning that are critical to its capacity to perform. Also called domains of excellence (DOE). Organizational Excellence An agile, innovative organization that fulfills its mission through leadership in state-of-the-art business practices
- 27. Remarks.. • Today’s organization cannot assume that excellence is automatic. Rather, excellence is the systematic development, measurement, and reinvention of organizational resources. • Excellence is not perfection; rather, excellence is the pursuit of perfection. This is the call for today –to not accept the status quo, to ensure that processes are still effective, and to implement plans for improvement. • Role of IE is to appreciated in this context.. 27
- 28. Domains of Excellence (DOE) : They are key performance drivers - dimensions of organizational capacity that enable the enterprise to Excel. • DOE1: Customer value • DOE2: Strategic Focus • DOE3: Process Excellence • DOE4: Talent Management • DOE5: Knowledge Management 28 Source: Karl Albrecht, Organizational performance: Meeting the Challenges of the New Business Environment, 2011
- 29. DOE 1: Customer Value What is it? • Key cultural , contextual & operational focus • Continuing feedback and tracking of customer expectations • Synergy between “tech” & “touch” • Masterful delivery through RESPONSIVENESS Role of IE • Understanding customer through Hand and Heart • Empathy • Quantitative Techniques,/Analytics 29
- 30. DOE 2: Strategic Focus What is it? • An ongoing “strategic dialogue” • Continuous environmental scanning and evaluation • Clear purpose, Clear driving values, priorities • Linked to financial / economic results & PMS • Issue of PRODUCTIVITY and performance measures Role of IE • Understanding the environment , thinking on Vision/Mission/Action, Management by Objectives etc. • Measurement of strategy efforts 30
- 31. DOE 3: Process Excellence What is it? • Appropriate organization structure • Streamlined processes • Processes empower performance • Processes are always improving • Issue of QUALIY Role of IE • Use of 7 QC tools • Process Understanding • Improvement focus/Kaizen 31
- 32. DOE 4: Talent Management What is it? • Work culture which attracts talented people • Competitive compensation • Management of “fit” and fitness • Developmental opportunities • Systems which support career progression Role of IE • Human Resource Management • Incentivization/Motivational Elements • Work Design 32
- 33. DOE 5: Knowledge Management What is it? A culture of values & knowledge driven organization A culture of collaboration & creativity Effective use of IT IT Infrastructure for social networking/social media Development & maintenance of SOPs Role of IE Simplify, Standardize and Synergize Documentation Systems & Procedures Leveraging Technology 33
- 34. New View of the Business Old View A business is a living enterprise. It’s more than the sum of its parts. There are multiple bottom lines (3 P’s). Success is multi-dimensional. Customers are solution seekers. Employees are agents / performers. Org’n is a complex, adaptive organic system. It has multiple stakeholders. Performance is caused by synergy. Emerging View A business is just a collection of assets. It can be bought, sold, subdivided. There’s one “real” bottom line. Success is defined financially. Customers are sources of revenue. Employees are interchangeable “resources.” Org’n is an apparatus; a set of processes. It’s “owned” by management. Performance is caused by management.
- 35. New View of Customers Old View Customers as unique, solution seekers Can be “appreciating assets” & ambassadors We focus on delivering value Our systems reflect their worlds Mass customization Relationship based Emerging View Customers as standard economic units Mostly standardized /disposable / interchangeable We push products / services to them They adapt to our way of business Mass Production Transaction based
- 36. New View of Employees Interchangeable inanimate Units Human “resources” Transient, disposable Treat them like machine Just as economic entity view Unique Performers having their identity Complex motivations and team dynamics High expectations and transient satisfaction Treat them like stakeholders Relationship building view Old View Emerging View
- 37. Role of IE.. Achieve excellence in each of these DOE • Through Methods Improvement • By designing appropriate Workplace • By incentivizing employees at the same time taking care of Customers and addressing the concerns of Productivity ,Quality, & Responsiveness 37
- 38. IE facilitates to better the world… – improve quality of products and services – minimize costs – improve security – reduce risk of injury – minimize delays – improve accommodation for the disabled – improve quality of work life of employees – improve service to customers – reduce human errors – improve on-time performance
- 39. Industrial and Systems Engineering (I&SE) Design • Industrial and systems engineers (I&SEs) design systems at two levels. – The first level is called human activity systems and is concerned with the physical workplace at which human activity occurs. – The second level is called management control systems and is concerned with procedures for planning, measuring, and controlling all activities within the organization. 39
- 40. Management Control System The management control system of an organization consists of the following elements that ar designed by I&SEs: • Management planning system. • Forecasting procedures, Budgeting and economic analyses. • Wage and salary plans, Incentive plans and other employee relations systems. • Recruiting, training, and placement of employees. • Materials requirement planning., Inventory control procedures. • Production scheduling, Dispatching (sending out) • Progress and status reporting. ,Corrective action procedures. • Overall information system. • Quality control system. Cost control and reduction • Resource allocation. • Organization design. • Decision support systems. 40
- 41. Production Operations A. Related to Product or Service: 1. Analyze a proposed product or service. – Determine whether it would be profitable, at various production volumes. – Is it compatible (well-suited) with the existing product line? – Assess the manufacturability of the design, as prepared by the engineering design department. – Determine the best (most cost-effective) material utilization. 2. Constantly attempt to improve existing products or services. 3. Perform analyses relating to distribution of the product or delivery of the service. 41
- 42. Production Operations (contd.) B. Related to Process of manufacturing the product or producing the service: – Determine the best process and method of manufacture. – Select equipment; determine degree of automation, use of robots, and so on. – Balance assembly lines. – Determine the best material flow and material handling procedures and systems. C. Related to Facilities: – Determine the best layout of equipment. – Determine the appropriate storage facilities for raw materials; work in process, and finished goods inventory. – Determine appropriate preventive maintenance systems and procedures. – Provide for appropriate inspection and test facilities. – Provide sufficient utilities for the operation. – Provide for security and emergency services. 42
- 43. Production Operations (contd.) D. Related to Work Methods and Standards: – Perform work measurement studies; establish time standards and update them as required. – Perform methods of improvement studies. – Perform value engineering analyses, eliminating cost and waste to the maximum level possible. E. Related to Production planning and control: – Forecast the level of activity. (How many units will be sold)? – Analyze the capacity and resource constraints. – Perform operations planning: – Perform inventory analysis: – Perform materials requirement planning (MRP) – Perform operations scheduling: – Design the quality control system and inspection procedures. – Design systems and procedures for shop floor control 43
- 44. Management Systems A. Related to Information Systems: • Determine management information requirements: – Identify the decisions that are made by managers at all levels; specify timing of each decision. – Determine the specific data/information needed for each decision. – Identify the sources of each data element. – Determine the preferred form of data. • Design the data base to support the information system: – Specify input formats from data sources. • Design the management reports that will be produced: • Perform data analyses, as required. • Provide feedback to all levels of the organization. • Develop and implement decision support systems. • Analyze the requirements for data communications and computer networks. 44
- 45. 45 B. Policies and Procedures: • Perform studies relative to organizational analysis and design. • Perform analyses of various functional groupings, recommend improvements to top management. • Develop and maintain policy manuals. • Develop and maintain current procedures relative to all management practices and systems. C. Performance Measurement: • Design meaningful performance measures for the key results areas of each organizational unit. • Identify the “critical success factors” or measures of value for each unit. • Develop methods and systems for analyzing operating data of all units and interpreting the results. • Specify corrective action procedures. • Design reports for all levels of management.
- 46. In summary.. • Imperatives for IE • Basic functions expected from IE • IE and Systems • Role in new context • Domains of excellence • ISE and business 46
- 48. Exercise • Take a simple context of ‘Hostel” • Understand this as a “system” • What are the objectives here? • What type of management controls can we visualize? • Define the management control system 48