This About Productivity and industrial engineering

1. Industrial EngineeringIndustrial Engineering

2. Common Denominator:
• People
• Facility
• Processes
All of the above are needed to produce
products and services
In all businesses there is always a need to
improve the processes and the facilities so the
employees (people) can better perform their job
producing goods and services

4. THE FIRST CAR
• 1885-built Benz Patent-Motorwagen,
• production
• with an internal
combustion engine

5. TModel_launch_Geelong 1915

6. 1919 Ford Model T Coupe

7. Latest one

8. OutputOutputEnterpriseEnterpriseInputInput
Productivity = Output /Productivity = Output /
InputInput
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BusinessBusiness

9. EnterpriseEnterpriseInputInput OutputOutput
Productivity = Output /Productivity = Output /
InputInput
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BusinessBusiness

10. OutputOutputEnterpriseEnterpriseInputInput
Productivity = Output /Productivity = Output /
InputInput
Going About ImprovingGoing About Improving
BusinessBusiness

11. OutputOutputEnterpriseEnterpriseInputInput
Productivity = Output /Productivity = Output /
InputInput
Going About ImprovingGoing About Improving
BusinessBusiness

12. Work to eliminate waste of time, money,
materials, energy, and other commodities.
Figure out how to do things better.
Engineer processes and systems that
improve quality and productivity.
Manage Projects by engaging early in the
process.
IndustrialIndustrial
Engineers:Engineers:

13. Industrial Engineering and
Management Study Areas in a
Nutshell
Production and Process Engineering
Quality and Reliability
Management of People and Processes
Workplace Design and Improvement
Computer Aided Manufacturing
Systems Engineering
Simulation Modeling and Analysis
Operations Research
Production and Inventory Management
Logistics and Supply Chain Management
Project Management

14. 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.

15. Definition
• 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.

16. 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.

17. 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.

18. 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.

19. 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.

20. 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.

21. 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.

22. Place of Industrial Engineering in
Organization

24. • Productivity describes various measures
of the efficiency of production. A
productivity measure is expressed as the
ratio of output to inputs used in a
production process, i.e. output per unit of
input.

25. • Productivity is defined as the efficient use
of resources, labour, capital, land,
materials, energy, information, in the
production of various goods and services.
Higher productivity means accomplishing
more with the same amount of resources
or achieving higher output in terms of
volume and quality from the same input.

26. • Single-factor measures
– Output / (Single Input)
• All-factors measure
– Output / (Total Inputs)
Productivity =
Outputs
Inputs
Productivity

27. Single-factor Output Output Output Output
measures Labor Machine Capital Energy
All-factors Output
measure All inputs
Measures of Productivity

28. Single-factor Output Output Output Output
measures Labor Machine Capital Energy
If we produce only one product, the numerator can be either
the total units of the product or the total $ value of the
product. If we produce several products, the numerator is
the total $ value of all products.
The denominator can be the units of input or the total $ value
of input.
Single Factor

29. 10,000 Units Produced
Sold for $10/unit
500 labor hours
Labor rate: $9/hr
What is the
labor productivity?
Example: Single Factor Productivity

30. • 10,000 units / 500hrs = 20 units/hr
• (10,000 units * $10/unit) / 500hrs = $200/hr
• 10,000 units / (500hrs * $9/hr) = 2.2 unit/$
• (10,000 units * $10/unit) / (500hrs * $9/hr) = 22.22
•The last one is unit-less
Example: Labor Productivity

31. • Labor Productivity
– Quantity (or value) of output / labor hrs
– Quantity (or value) of output / shift
• Machine Productivity
– Quantity (or value) of output / machine hrs
• Energy Productivity
– Quantity (or value of output) / kwh
• Capital Productivity
– Quantity (or value) of output / value of input
Some Single Factor Measurements

32. All-factors Goods or Services produced
measure All inputs used to produce them
If we produce only one product, the numerator can be either
the total units of product or total $ value of the product.
If we produce several products, the numerator is the total
$ value of all products.
Usually, the numerator is the total $ value of all outputs.
The denominator is total $ value of all inputs.
All Factors

33. Training Methods
Technology Management
What are the factors that affect productivity?

34. Working Condition and
Productivity
• Air quality
• Lighting and plants
• Liberty
• Working Time
• Positive Work Cultures

35. Scientific management

36. Scientific management
• The systematic study of relationships
between people and tasks for the
purpose of redesigning the work process
to increase efficiency.

37. Scientific management
• Scientific management is a theory of
management that analyzes and
synthesizes workflows. Its main
objective is improving economic efficiency,
especially labor productivity.
• .

38. Scientific management
• Management of a business, industry, or
economy, according to principles of
efficiency derived from experiments in
methods of work and production,
especially from time-and-motion studies

39. 4 Principles To Increase
Efficiency
• Study the way workers perform their tasks,
gather all the informal job knowledge
that workers posses, and experiment with
ways of improving how tasks are
performed.

40. 4 Principles To Increase
Efficiency
• Codify the new methods of performing
tasks into written rules and standard
operating procedures.

41. 4 Principles To Increase
Efficiency
• Carefully select workers who possess
skills and abilities that match the needs of
the task, and train them to perform the
task according to the established rules
and procedures.

42. 4 Principles To Increase
Efficiency
• Establish a fair or acceptable level of
performance for a task, and then
develop a pay system that provides a
reward for performance above the
acceptable level.

43. • Increased mechanization of the work
process.
Example: Henry Ford introduced moving
conveyor belts in factory. Machine
imposed pace to push employees to
perform at higher levels.

48. What is work study?
• One of the most powerful tools to in
improving productivity is work study.
Work study is:
The systematic examinations of the
methods of carrying on activity
To improve effective use of resources
To set up standards of performance

49. Work Study
• In business/industry a system of
assessing methods of working so as to
achieve the maximum output and
efficiency.

50. Work Study
• Work study is a means of enhancing the
production efficiency (productivity) of the
firm by elimination of waste and
unnecessary operations. It is a technique
to identify non-value adding operations by
investigation of all the factors affecting
the job.

51. Definition
• Work study is a generic term for those
techniques, particularly method study and
work measurement, which are used in the
examination of human work in all its
contexts, and which lead systematically to
the investigation of all the factors which
affect the efficiency and economy of the
situation being reviewed, in order to effect
improvement.*

52. Work Study’s Parts
• Method Study
• To simplify the job and develop more economical methods of doing
it
• Work Measurement
• To determine how long it should take to carry out

53. Basic Procedure
• Selection
• Record
• Examine (1,2,3 in every study)
• Develop
• Measure
• Define
• Install
• Maintain

54. Work study also aims at the
following:
• Simplifying or modifying the methods of
operation
• Reduces unnecessary or excess work
• Stops wasteful use of resources
• Contributes to industrial safety by identifying
hazardous work and developing safer methods
• Cuts down the time of performing a certain
activity.

55. Some terminologies
• Total time in a Job: The time taken by a worker or a
machine to carry out an operation to produce a given
quantity of certain product.
• A work Hour: The labor of one person for one hour.
• A Machine Hour: Running of the machine or plant for
one hour.
• Basic work content: The basic irreducible minimum
time theoretically required to produce one unit output.
This is a perfect condition which is not achieved in most
of the cases.

57. • How Management technique can reduce
ineffective time?
Basic work content
Product Development
Proper Material utilization
Quality control/ensure proper standards
Better layout & process planning
Material handling/reduce time & effort
Production planning
Method study to reduce poor methods of work
Inventory control
Ensure longer life and no stoppage of machinery
Create satisfactory working environment
Training,better working condition
Inefficient time
totally
Eliminated

58. What is Time Study
• Time Study is the analysis of a specific job
by a qualified worker in an effort to find the
most efficient method in terms of time and
effort. Time Study measures the time
necessary for a job or task to be
completed using the best method.

59. Time study procedure -
overview
• Perform methods analysis.
• Identify elements.
• Observe one or more operators to find observed
time.
• Give a rating to adjust observed time and find normal
time.
• Add allowances to normal time to find standard time.
• Procedures attempt to reduce inaccuracies of going
from the sample to the population and from the
present world to the future world.

60. Method study
• Method study is the process of subjecting
work to systematic, critical scrutiny to
make it more effective and/or more
efficient. It is one of the keys to achieving
productivity improvement

61. Basic Procedure
• Selection
• Record
• Examine (1,2,3 in every study)
• Develop
• Measure
• Define
• Install
• Maintain

62. • https://www.youtube.com/watch?v=snychWgb
• Ritesh Agarwal