MODULE 1-INDUSTRIAL ENGINEERING.pdf

DEEPU P. NAIR
DEEPU P. NAIR
DEEPU P. NAIR
DEEPU P. NAIR
ASST. PROFESSOR
ASST. PROFESSOR
ASST. PROFESSOR
ASST. PROFESSOR
INDUSTRIAL ENGINEERING
MODULE 1
MODULE 1
MODULE 1
MODULE 1
1
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Introduction
Industrial engineering can be defined as a profession in which a knowledge
of mathematical and natural sciences gained by study, experience and practice is
applied with judgment to develop the ways to utilize economically the materials
and other natural resources and forces of nature for the benefit of mankind.
The American Institute of Industrial Engineers define industrial engineering as:
Industrial engineering is concerned with the design, improvement and
installation of integrated systems of men, material, energy 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
systems.
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The prime objective of industrial engineering is to increase the
productivity by eliminating waste and non-value adding (unproductive)
operations and improving the effective utilization of resources.
Industrial engineering places a strong emphasis on an understanding of
workers and their needs in order to increase and improve production and
service activities.
Industrial engineering activities and techniques include the following:
Designing jobs (determining the most economical way to perform
work).
Setting performance standards and benchmarks for quality,
quantity, and cost.
Designing and installing facilities.
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Evolution of modern Concepts in Industrial
Engineering
In any productive environment, whether it is an industrial plant, an
institution such as a hospital, restaurant, office, etc. there is a need to
improve the quality of work. This means that a given task should be
carried out efficiently and accurately in terms of time and effort spent.
During the industrial revolution of the 18th and 19th century, many small
ownership based businesses grew into larger enterprises in which a
number of manual tasks were performed by mechanical and steam
operated machines.
At that time there weren’t adequate tools or working conditions and there
was considerable exploitation of labor. As a result, there were wide
variations in output from different workers and different factories making
the same product.
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Frederick W. Taylor, a mechanical engineer was who observed that
better methods could be established even for a simple task as handling
iron ore and coal for a blast in a steel plant.
He pursued the task of establishing a norm for the weight and size of the
shovel for scooping and transferring material. He observed and proved
that instead of using the largest shovel to move the maximum material in
a day, it was better to design a shovel which could be comfortably used by
the workers on a repetitive basis without tiring or injuring them at the
end of the day. When his plan was implemented, he reduced the
manpower by over 25%.
Taylor was also considered to be the father of scientific
management because he was a pioneer in improving methods and
establishing the incentive system for workers with the benefit of higher
productivity to the owners and higher wages for the workers.
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Functions of Industrial Engineering
Most important functions of industrial engineering are:
Development of time standards, costing and performance standards.
Selection of processes and assembling methods.
Selection and design of tools and equipment.
Design of facilities including plant location, layout of building, machines and
equipment, material handling system , raw materials and finished goods storage
facilities.
Design and improvement of planning and control systems for production,
inventory, quality and plant maintenance and distribution systems.
Cost control systems.
Development and installation of job evaluation systems.
Installation of wage incentive schemes.
Design and installation of value engineering and analysis system.
Operation research.
Mathematical and statistical analysis.
Performance evaluation.
Organization and methods.
Supplier selection and evaluation.
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Field of application of Industrial Engineering
The main aim of tools and techniques of industrial engineering is to
improve the productivity of the organization by optimum utilization of
organizations resources: men, materials, and machines. The major tools
and techniques used in industrial engineering are:
1) Production planning and control.
2) Inventory control.
3) Job evaluation.
4) Facilitates planning and material handling.
5) System analysis.
6) Linear programming.
7) Simulation.
8) Network analysis (PERT, CPM).
9) Queuing models.
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10)Assignment.
11) Sequencing and transportation models.
12) Games theory and dynamic programming.
13) Group technology.
14) Statistical techniques.
15) Quality control.
16) Decision making theory.
17) Replacement models.
18)Assembly line balancing.
19) MRP-JIT-ISO-TQM
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Product Development and research
In general, the Product Development can be defined as "creating,
innovating, or developing entirely a new product , or presenting an
existing product with enhanced utility, improved features, more
appealing design, better quality and reliability to satisfy the
requirements of its end-users."
Meaning of Product Development
Product means a goods, service, idea or object created as a result of a
process and offered to serve a need or satisfy a want. Development
means the act or process of growing, progressing, or developing.
Product Development is a process of improving the existing
product or to introduce a new product in the market. It is also referred
as New Product Development.
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The functions of product development are as follows :-
1. Creation of an entirely new product or upgrading an existing product.
2. Innovation of a new or an existing product to deliver better and enhanced
services.
3. Enhancing the utility and improving the features of an existing product.
4. Continuous improvement of a product to satisfy rapidly changing
customer needs and wants.
Product Development Process
Product development process is a crucial process for the success and
survival of any business. Today, businesses are operating in a highly
dynamic and competitive environment.
Business organizations have to continuously update their products to
conform to current trends.
The product development process starts from idea generation and ends
with product development and commercialization.
Following are the steps in the process of product development.
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Objective of Design
Objective of Design
Objective of Design
Objective of Design
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To identify the need of the user.
To do research and know about the various possibilities of problem
solving.
To fix and formulate a working principle of the solution.
To complete the product design within the affixed time period.
To reduce the cost of design process.
To reduce the complexity of the product.
To increase the efficiency of the component.
To increase the ergonomics features of the designs there by making it
more user friendly.
To increase the safeness of the component under static and dynamic
conditions.
To make eco friendly material.
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MANUFACTURING VS PURCHASE
(MAKE OR BUY DECISION)
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The make-or-buy decision is the act of making a strategic choice between
producing an item internally (in-house) or buying it externally (from an
outside supplier).
The buy side of the decision also is referred to as outsourcing. Make-or-
buy decisions usually arise when a firm that has developed a product or
part or significantly modified a product or part is having trouble with
current suppliers, or has diminishing capacity or changing demand.
Make-or-buy analysis is conducted at the strategic and operational level.
Obviously, the strategic level is the more long-range of the two.
Variables considered at the strategic level include analysis of the future, as
well as the current environment. Issues like government regulation,
competing firms, and market trends all have a strategic impact on the
make-or-buy decision.
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Factors that may influence firms to make a part internally include:
Cost considerations (less expensive to make the part)
Desire to integrate plant operations
Productive use of excess plant capacity to help absorb fixed overhead (using
existing idle capacity)
Need to exert direct control over production and/or quality
Better quality control
Design secrecy is required to protect proprietary technology
Unreliable suppliers
No competent suppliers
Desire to maintain a stable workforce (in periods of declining sales)
Quantity too small to interest a supplier
Control of lead time, transportation, and warehousing costs
Greater assurance of continual supply
Provision of a second source
Political, social or environmental reasons (union pressure)
Emotion (e.g., pride)
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Factors that may influence firms to buy a part externally include:
Lack of expertise
Suppliers' research and specialized know-how exceeds that of the buyer
cost considerations (less expensive to buy the item)
Small-volume requirements
Limited production facilities or insufficient capacity
Desire to maintain a multiple-source policy
Indirect managerial control considerations
Procurement and inventory considerations
Brand preference
Item not essential to the firm's strategy
The two most important factors to consider in a make-or-buy decision
are cost and the availability of production capacity. Obviously, the
buying firm will compare production and purchase costs
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C-V-P analysis
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A critical part of CVP analysis is the point where total revenues equal total
costs (both fixed and variable costs).
At this break-even point, a company will experience no income or loss. This
break-even point can be an initial examination that precedes more detailed
CVP analysis.
CVP analysis employs the same basic assumptions as in breakeven
analysis.The assumptions underlying CVP analysis are:
The behavior of both costs and revenues are linear throughout the relevant
range of activity. (This assumption precludes the concept of volume
discounts on either purchased materials or sales.)
Costs can be classified accurately as either fixed or variable.
Changes in activity are the only factors that affect costs.
All units produced are sold (there is no ending finished goods inventory).
When a company sells more than one type of product, the product mix
(the ratio of each product to total sales) will remain constant.
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The components of CVP analysis are:
Level or volume of activity
Unit selling prices
Variable cost per unit
Total fixed costs
Assumptions
Constant sales price;
Constant variable cost per unit;
Constant total fixed cost;
Units sold equal units produced.
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Basic graph
The assumptions of the CVP model yield the following linear
equations for total costs and total revenue (sales):
These are linear because of the assumptions of constant costs and
prices, and there is no distinction between units produced and units
sold, as these are assumed to be equal.
Note that when such a chart is drawn, the linear CVP model is
assumed, often implicitly.
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where
TC =Total costs
TFC =Total fixed costs
V = Unit variable cost (variable cost per unit)
X = Number of units
TR = S =Total revenue = Sales
P = (Unit) sales price
Profit is computed asTR-TC; it is a profit if positive, a loss if negative.
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Applications
CVP simplifies the computation of breakeven in break-even analysis, and
more generally allows simple computation of target income sales. It
simplifies analysis of short run trade-offs in operational decisions.
Limitations:
CVP is a short run, marginal analysis: it assumes that unit variable costs
and unit revenues are constant, which is appropriate for small deviations
from current production and sales, and assumes a neat division between
fixed costs and variable costs, though in the long run all costs are variable.
For longer-term analysis that considers the entire life-cycle of a product,
one therefore often prefers activity-based costing or throughput
accounting.
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HUMAN FACTORS IN DESIGN
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Human factors and ergonomics (commonly referred to as HF&E),
also known as comfort design, functional design, and systems, is the
practice of designing products, systems, or processes to take proper
account of the interaction between them and the people who use
them.
The field has seen some contributions from numerous disciplines,
such as psychology, engineering, biomechanics, industrial design,
physiology, and anthropometry.
In essence, it is the study of designing equipment, devices and
processes that fit the human body and its cognitive abilities.
The two terms "human factors" and "ergonomics" are essentially
synonymous.
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The International Ergonomics Association defines ergonomics or human
factors as follows:
Ergonomics (or human factors) is the scientific discipline concerned
with the understanding of interactions among humans and other elements
of a system, and the profession that applies theory,
principles, data and methods to design in order to optimize human well-
being and overall system performance.
HF&E is employed to fulfill the goals of occupational health and safety and
productivity.
It is relevant in the design of such things as safe furniture and easy-to-use
interfaces to machines and equipment.
Proper ergonomic design is necessary to prevent repetitive strain injuries
and other musculoskeletal disorders, which can develop over time and can
lead to long-term disability.
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Methods
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1. Ethnographic analysis:
Using methods derived from ethnography, this process focuses on observing the
uses of technology in a practical environment.
It is a qualitative and observational method that focuses on "real-world" experience
and pressures, and the usage of technology or environments in the workplace.
The process is best used early in the design process.
2. Focus Groups
Another form of qualitative research in which one individual will facilitate
discussion and elicit opinions about the technology or process under investigation.
This can be on a one-to-one interview basis, or in a group session.
Can be used to gain a large quantity of deep qualitative data, though due to the
small sample size, can be subject to a higher degree of individual bias.
Can be used at any point in the design process, as it is largely dependent on the
exact questions to be pursued, and the structure of the group.
Can be extremely costly.
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3. Iterative design:
Also known as prototyping, the iterative design process seeks to involve users at
several stages of design, in order to correct problems as they emerge.
As prototypes emerge from the design process, these are subjected to other
forms of analysis as outlined in this article, and the results are then taken and
incorporated into the new design.
Trends amongst users are analyzed, and products redesigned. This can become a
costly process, and needs to be done as soon as possible in the design process
before designs become too concrete.
4. Meta-analysis:
A supplementary technique used to examine a wide body of already existing data
or literature in order to derive trends or form hypotheses in order to aid design
decisions.
As part of a literature survey, a meta-analysis can be performed in order to
discern a collective trend from individual variables.
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5. Surveys and Questionnaires:
A commonly used technique outside of Human Factors as well, surveys and
questionnaires have an advantage in that they can be administered to a large
group of people for relatively low cost, enabling the researcher to gain a large
amount of data.
The validity of the data obtained is, however, always in question, as the questions
must be written and interpreted correctly, and are, by definition, subjective.
Those who actually respond are in effect self-selecting as well, widening the gap
between the sample and the population further.
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6.Task analysis:
Task analysis is a way of systematically describing human interaction with a
system or process to understand how to match the demands of the system or
process to human capabilities.
The complexity of this process is generally proportional to the complexity of the
task being analyzed, and so can vary in cost and time involvement. It is a
qualitative and observational process. Best used early in the design process.
7. User analysis:
Best done at the begining of the design process, a user analysis will attempt to
predict the most common users, and the characteristics that they would be
assumed to have in common.
This can be problematic if design concept does not match the actual user, or if
the identified are too vague to make clear design decisions from.
This process is, however, usually quite inexpensive, and commonly used.
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8. Methods Analysis is the process of studying the tasks a worker completes
using a step-by-step investigation. Each task in broken down into smaller steps until
each motion the worker performs is described. Doing so enables you to see exactly
where repetitive or straining tasks occur.
9. Time studies determine the time required for a worker to complete each task.
Time studies are often used to analyze cyclical jobs. They are considered "event
based" studies because time measurements are triggered by the occurrence of
predetermined events.
10. Work sampling is a method in which the job is sampled at random intervals
to determine the proportion of total time spent on a particular task. It provides
insight into how often workers are performing tasks which might cause strain on
their bodies.
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Limitations
Although field methods can be extremely useful because they are
conducted in the users' natural environment, they have some major
limitations to consider.The limitations include:
1. Usually take more time and resources than other methods
2. Very high effort in planning, recruiting, and executing compared with
other methods
3. Much longer study periods and therefore requires much goodwill
among the participants
4. Studies are longitudinal in nature, therefore, attrition can become a
problem.
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VALUE ENGINEERING
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Value engineering (VE) is a systematic method to improve the "value" of
goods or products and services by using an examination of function.
Value, as defined, is the ratio of function to cost. Value can therefore be
increased by either improving the function or reducing the cost.
It is a primary tenet of value engineering that basic functions be
preserved and not be reduced as a consequence of pursuing value
improvements.
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The reasoning behind value engineering is as follows:
If marketers expect a product to become practically or stylistically
obsolete within a specific length of time.
They can design it to only last for that specific lifetime.
The products could be built with higher-grade components, but with
value engineering they are not because this would impose an
unnecessary cost on the manufacturer, and to a limited extent also an
increased cost on the purchaser.
Value engineering will reduce these costs. A company will typically use
the least expensive components that satisfy the product's lifetime
projections.
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Job Plan
Value engineering is often done by systematically following a multi-stage
job plan. Depending on the application, there may be four, five, six, or
more stages. One modern version has the following eight steps:
1. Preparation
2. Information
3. Analysis
4. Creation
5. Evaluation
6. Development
7. Presentation
8. Follow-up
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Four basic steps in the job plan are:
A) Information gathering - This asks what the requirements are for the object.
Function analysis, an important technique in value engineering, is usually done in this
initial stage.
It tries to determine what functions or performance characteristics are important.
It asks questions like;What does the object do?What must it do?What should it do?
What could it do?What must it not do?
B) Alternative generation (creation) - In this stage value engineers ask;What
are the various alternative ways of meeting requirements?What else will perform the
desired function?
C) Evaluation - In this stage all the alternatives are assessed by evaluating how well
they meet the required functions and how great the cost savings will be.
D) Presentation - In the final stage, the best alternative will be chosen and
presented to the client for final decision.
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