Introduction to advance Industrial engineering

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Industrial Engineering I
Chapter 1
Introduction to Industrial Engineering
Industrial engineering is a branch of engineering which deals
with the optimization of complex processes or systems. It is
concerned with the development, improvement, and
implementation of integrated systems of people, money,
knowledge, information, equipment, energy, materials,
analysis and synthesis, as well as the mathematical, physical
and social sciences together with the principles and
methods of engineering design to specify, predict, and
evaluate the results to be obtained from such systems or
processes

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1.1 Definition
 Fierce Competition in Economy.
 Customers demands are rising.
 Challenge for industries to produce goods
of right quantity, quality , in time and at
minimum cost.
 Industrial Engineering plays a pivotal role
in meeting these challenges.
 We have various techniques in Industrial
Engineering to analyse and improve the
work methods, to eliminate waste, proper
allocation and utilization of resources.

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1.1 Definition
 American Institute of Industrial Engineers
(AIIE) defines Industrial Engineering as
follows;
 Industrial Engineering is concerned with the
design, improvement and installation of
integrated system of men, materials and
equipment. It draws upon specialized
knowledge and skills in the mathematical,
physical sciences together with the principles
and methods of engineering analysis and
design to specify, predict and evaluate the
results to be obtained from such system.

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1.1 Definition
 The prime objective of industrial
engineering is;
1- To increase the productivity.
2- Eliminating waste and non-value
added activities.
3- Improving the effective utilization of
resources.

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1.2 History & Development
 It is linked with industrial revolution and passed
through many phases to reach present advanced
stage.
 Frederick Taylor is named as father of scientific
management and industrial engineering.
 But before Frederick Taylor, Adam Smith gave
concept of Division of Labour through his book The
Wealth of Nations.
 Also James Watt, Boultin Mathew and Robinson
obtained a place in the history of Industrial
Engineering because of their work related with
improvements in the performance of machines
and industries.

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1.2 History & Development
 Period between 1882-1912 was the critical
period in the history of Industrial
Engineering. Important works during this
period are;
 Factory system, Owner, Engineer and
Manager concept.
 Equal work, equal pay and incentives.
 Scheduling and Gantt Charts.
 Engineers interest in cost control and
accounting.

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1.3 Contributions to Industrial
Engineering
1. Adam Smith (1776): through his book titled
Wealth of Nations laid foundation to scientific
manufacturing. Through his concept of division
of labour which included the skill development,
time savings and the use of specialized machine
was able to influence.
2. James Watt (1864): Steam Engine advanced the
use of mechanical power to increase
productivity.
3. Charles Babbage worked on the same line as
Adam Smith.

8
Engineering
4- Frederick Taylor (1859-1915): was a mechanical
engineer and initiated investigations of better
work methods and develop an integrated theory
of management principles and methodologies. He
proposed following actions;
 Data Collection and standards for workers.
 Scientifically training of workers.
 Cooperation between management and labour
for better production.
 Divide work between management and labour
and assigning to those who are best suited.

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Engineering
5- Henry L. Gantt (1993): His contributions are;
 Work in the area of motivation field, development
of task and bonus plan.
 Measurement of management results by Gantt
Charts.
 Recognition of social responsibility of business and
industry.
 Advocated training of workers by management.
6- Frank and Lillian Gilbreth (1917): developed
method study as a tool for work analysis.
 He developed micro-motion study, a breakdown of
work into fundamental elements called therbligs.

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Engineering
7- Harrington Emerson(1913): Developed his
managerial concepts simultaneously with Taylor,
Gantt and Gilbreth.
 Amongst his contributions is the Emerson’s Efficiency
Bonus Plan, an incentive plan which guarantees the
base day rate and pays a graduated bonus.
 He also proposed twelve principles of efficiency.
8- L.H.C Tippet (1937): Developed the concept of work
sampling to determine the equipment and
manpower utilization and setting performance
standards for long cycle, heterogeneous jobs
involving team work.

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1.4 Activities of Industrial
Engineering
 The primary activities as spelled out
by AIIE are;

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1.5 Industrial Engineering
Approach
 In carrying out various activities, the
industrial engineer;
 Gathers and analyses facts.
 Prepares the alternative solutions
taking in to consideration all the
constraints both internal and external.
 Selects the best solution for
implementation.

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1.5 Industrial Engineering
Approach
 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.

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1.6 Objectives of Industrial
Engineering
 The basic objectives of Industrial
Engineering departments are;
1- To establish methods for improving
the operations and controlling the
production costs.
2- To develop programmes for
reducing these costs.

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1.7 Functions of An Industrial
Engineer

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1.8 Techniques of Industrial
Engineering
 Following tools and techniques are used to improve
productivity of the organization by optimum utilization of
resources.
1- Method Study.
2- Time Study (Work Measurement).
3- Motion Economy.
4- Financial and Non Financial Incentives.
5- Value Analysis.
6- Production, Planning and Control.
7- Inventory Control.
8- Job Evaluation.
9- Material Handling Analysis.
10-Ergonomics (Human Engineering).
11- System Analysis.
12- Operations Research Techniques.

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1.9 Place of Industrial
Engineering in Organization

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1.10 Industrial Engineering in
Service Sector
 Large number of industrial engineers
are in demand and attracted to
careers in exciting, challenging and
rewarding new fields.
 The various service industries are;
1- Health Service.
2- Government Organizations.
3- Banking.

The various topics concerning industrial
engineers include:
 accounting: the measurement, processing and communication of
financial information about economic entities
 operations research, also known as management science: discipline
that deals with the application of advanced analytical methods to help
make better decisions
 operations management: an area of management concerned with
overseeing, designing, and controlling the process of production and
redesigning business operations in the production of goods or
services.
 project management: is the process and activity of planning,
organizing, motivating, and controlling resources, procedures and
protocols to achieve specific goals in scientific or daily problems.
 job design: the specification of contents, methods and relationship of
jobs in order to satisfy technological and organizational requirements
as well as the social and personal requirements of the job holder.
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The various topics concerning industrial engineers
include:
 financial engineering: the application of technical methods,
especially from mathematical finance and computational finance,
in the practice of finance
 management engineering: a specialized form of management that
is concerned with the application of engineering principles to
business practice
 supply chain management: the management of the flow of goods.
It includes the movement and storage of raw materials, work-in-
process inventory, and finished goods from point of origin to point
of consumption.
 process engineering: design, operation, control, and optimization
of chemical, physical, and biological processes.
 systems engineering: an interdisciplinary field of engineering that
focuses on how to design and manage complex engineering
systems over their life cycles.
 ergonomics: the practice of designing products, systems or
processes to take proper account of the interaction between them
and the people that use them. 20

The various topics concerning industrial
engineers include:
 cost engineering: practice devoted to the management of project cost,
involving such activities as cost- and control- estimating, which is cost
control and cost forecasting, investment appraisal, and risk analysis.
 value engineering: a systematic method to improve the "value" of
goods or products and services by using an examination of function.
 quality engineering: a way of preventing mistakes or defects in
manufactured products and avoiding problems when delivering
solutions or services to customers.
 Industrial plant configuration: sizing of necessary infrastructure used
in support and maintenance of a given facility.
 facility management: an interdisciplinary field devoted to the
coordination of space, infrastructure, people and organization
 engineering design process: formulation of a plan to help an engineer
build a product with a specified performance goal.
 logistics: the management of the flow of goods between the point of
origin and the point of consumption in order to meet some
requirements, of customers or corporations.
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Introduction to advance Industrial engineering

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