Industrial Management: Meaning, Definition, Objective, Need, Scope, Evolution and developments. Productivity: Definition of productivity, Measurement of productivity, factors affecting the productivity, productivity improvement programs.

1. 18MS2002
INDUSTRIAL
MANAGEMENT
1

2. Course
Objectives
• Contribute to the enhancement of
companies productivity through
effective improvement programs
• Effectively manage shop floor
operations through proper work study
• To enable a student to acquaint
knowledge on contemporary
practices in industries
2

3. Course Outcomes
1. Choose, prepare, and use of various techniques to improve
productivity
2. Describe how work study would help to identify the best possible
way of doing things in shop floor
3. Explain how motion study finds the unwanted motion in an operations
and suggest the optimum ways to increase the productivity
4. Derive out the standard time for various operations performed
5. Design the best possible work place layout for minimize fatigue
6. Understand the importance of contemporary manufacturing practices
in industry
3

4. SYLLABUS
Unit 1 :
Industrial Management: Meaning, Definition, Objective, Need, Scope, Evolution and developments.
Productivity: Definition of productivity, Measurement of productivity, factors affecting the productivity,
productivity improvement programs.
Unit 2 :
Work Study: Definition, objective and scope of work study. Human factors in work study. Work study and
management.
Method Study: Definition, objective and scope of method study, activity recording andexam aids. Charts to
record moments in shop operation – process charts, flow processcharts, travel chart and multiple activity charts.
`
4

5. SYLLABUS
Unit 3 :
MICRO AND MEMO MOTION STUDY: Charts to record moment at work place – principles of motion economy,
classification of moments two handed process chart, SIMO chart, and micro motion study. Development, definition and
installation of the improved method, brief concept about synthetic motion studies. Management
Unit 4 :
TIME STUDY: Time Study, Definition, time study equipment, selection of job, steps in time study. Breaking jobs into
elements, recording information. Rating & standard Rating, standard performance, scale of rating, factors of affecting rate
of working, allowances and standard time determination. Predetermined motion time study – Method time measurement
(MTM)
5

6. SYLLABUS
Unit 5 :
ERGONOMICS: Introduction, areas of study under ergonomics, system approach to ergonomics model, man-machine
system. Components of man-machine system and their functions – work capabilities of industrial worker, study of
development of stress in human body and their consequences. Computer based ergonomics.
Unit 6 :
CURRENT TRENDS: Introduction to Agile manufacturing, Lean and Six Sigma, Value Engineering, Just in time, Total
quality management, Enterprise resource planning, Supply chain and logistics management
6

7. BOOKS
Text Books :
1. “Industrial Engineering & Management” - B. Kumar, Tenth edition, Khanna Publishers, 2004
2. “Industrial Engineering and Management” - PravinKumar, First edition, PearsonEducation India, 2015
References Books:
1. “Human Factors in Engineering Design” - S Sanders and E J McCormick, 7th Edition, McGraw Hill, 2016
2. “Work Study and Ergonomics “- S Dalela and Sourabh, Chand Publishers, 3rd edition, 2013
3. “Engineered work Measurement” - Weldon, ELBS, Marvin E. Mundel, PHI, 5th edition, 2012
4. “A Textbook of Industrial Management” – A.P. Verma, N. Mohan, edition 2013
7

8. 1. Industrial Management: Meaning & Definition
8

9. Industrial Management

10. Management

11. Why managers are important to
organization
11

12. Industrial Engineering
12
Input Transformation
Process Output
• Men
• Material
• Machine
• Technology
• Information
• System Design
• Production
• planning &
Control
• Operation
• Management &
Control
• Growth &
Expansion
• Goods &
services
• Social
Responsibility

13. Engineering and Management
13

14. Conceptual Skills
14

15. Management: An art or science
15

16. Industrial Management

17. Management is !!!

18. Efficiently (Focus on Process/means)
◦ Getting work done with a minimum of effort, expense, or waste
◦ Doings things right—most output for least input
◦ Ability to do the things in right way
Ex. Ability to determine appropriate objectives
Effectively (Focus on ends)
◦ Accomplishing tasks that help fulfill organizational objectives
◦ Ability to do the right things
Ex. Ability to minimize the expenditure in achieving the objectives
Efficiently and Effectively

19. ManageMenT
Management is the process of designing & maintaining an
environment in which individuals, working together in groups,
efficiently accomplish selected aims
PRODUCT
Transformation
Men
Machine
Material
Money
M
A
N
A
G
E
M
E
N
T

20. ManageMenT
Things Time
Method Place
Process of
doing right

21. The Father of Scientific Management
21
F. W. Taylor
(1856-1915)
• Important Contributions
• Time and Motion Studies
– Reduce motions in order to improve productivity
– to establish appropriate standards for task performance
• Wage - Incentive System
– More wages when task is performed according to
specifications within the allotted time
– Ordinary wages if the time allotment is exceeded

22. Frederick Taylor
DEVELOPED THE SPECIFIC PRINCIPLES OF SCIENTIFIC MANAGEMENT
22

23. Taylor’s 4 Principles of Scientific Management
▪Scientifically study each part of a task and develop the best method for
performing the task
▪Carefully select workers and train them to perform the task by using the
scientifically developed method
▪Cooperate fully with workers to ensure that they use the proper method
▪Divide work and responsibility so that management is responsible for
planning work methods using scientific principles and workers are
responsible for executing the work accordingly
23

24. Henri Fayol - Administrative Management
Henri Fayol (1841-1925)
FATHER OF MODERN MANAGEMENT

25. Industrial Management
▪Industrial management is concerned with the techniques to develop, improve, implement and evaluate the
integrated systems of men, materials, money, machines, methods, knowledge, information and energy.
▪ It includes the knowledge of various fields to increase the efficiency and effectiveness of an industry.
▪Industrial engineering is the origin of industrial management
▪ It is a process of planning, organizing, directing, controlling and managing the activities of any
industry/organization.
▪It organizes and transforms the inputs using various resources of the organization into value-added
products in a controlled and an effective manner.
25
https://www.youtube.com/watch?v=NsXv2mjokFY

26. 2. Objectives of Industrial Management
❖Customer Service
❖Efficient Utilization of Resources
❖Coordination
❖Product Quality
❖Human Relations
26

27. 3.Need of Industrial Management
•To ensure maximum output with minimum cost of production.
•To ensure that activities of different individuals are coordinated to
attain the common purpose in the factory.
•Goods are produced and delivered on the promised dates.
•Goods are manufactured in strict specification of customer’s orders.
•Proper accounting, reporting and controlling the operations in the
factory.
•To prevent wastage and losses.
•Quality Products.
•Utilisation of full capacity of the factory.
•Innovation
27

28. 4. Scope of Industrial Management
•Industrial management helps any industry vertical to grow at a faster rate through maximum output in
minimum possible cost and optimal utilization of resources.
•The scope of Industrial Management in India is immense, given that we are a prime outsourcing
destination in the world.
•In the current scenario when world trade is being redesigned, industrial management can be looked up at as
a promising solution to career aspirants today.
•Initially, the application & scope of industrial management was restricted to the manufacturing industry
specifically. Today, it has spread to non- manufacturing activities as well including construction &
transportation, farm operations, air-line operations & maintenance, public utilities, government& military
operations.
28

29. 4. Scope of Industrial Management-2
•From delivery/logistics companies to eCommerce sites to manufacturing companies to textile
industrial to F.M.C.G companies, everyone needs personnel trained in industrial
management. This is for the sole reason that they can be made responsible for the entire
operations of an organization.
•Industrial managers control, manage and optimize everything right from what comes into
an organization (raw material, labor, etc.) to what stays in (inventory) and what goes out
(finished goods).
•In short industrial managers are like diamonds in the labor market. There should be no dearth
of jobs for you anyway! However, a perfect combination of degrees is what recruiters look
for
29

30. 5. Industrial Revolution
•The process of change from an agrarian and handicraft economy to one dominated
by industry and machine manufacturing.
•These technological changes introduced novel ways of working and living and
fundamentally transformed society.
•This process began in Britain in the 18th century and from there spread to other parts
of the world.
• The term Industrial Revolution was first popularized by the English economic
historian Arnold Toynbee (1852–83) to describe Britain’s economic development from
1760 to 1840.
•China and India did not begin their first industrial revolutions until the 20th century
•United States and western Europe, began undergoing “second” industrial revolutions by
the late 19th century.
30
Arnold Toynbee (1852–83)

31. Spread of Industrial Revolution
31

32. History and Development
32

33. Industrial Revolution: Evolution and developments
The evolution of industrial engineering has been defined in five different stages.
Phase 1: Pre-Industrial Revolution Era
Phase 2: Industrial Revolution Era
Phase 3: Scientific Management Phase
Phase 4: Operations Research and Quantitative Management Phase
Phase 5: Automation and Computer-Integrated Manufacturing (Modern Management)
33

34. Phase1:Pre-Industrial Revolution Era
In the early 1800s, there was focus on only manual operated manufacturing
activities.
There was no factory concept
Handicraft and agriculture products dominated in the trade.
Three major developments in this era are given below as:
1774: James Watt developed the steam engine.
1776: Adam Smith wrote The Wealth of Nations and advocated the concept of
division of labour, skill development, specialization, etc.
1798: Concept of interchangeability of parts was developed by Whitney and
was used in manufacturing of musket (Hatfield 2013).
34
James Watt’s first steam engine.

35. Pre-Industrial
Revolution
Clockwise from top
1. Family
2. Society
3. Life
4.Society
35

36. Pre-Industrial
Revolution
1.The UK before the Industrial Revolution
2. Cooking at home
3. The UK before the Industrial Revolution
4. A horse-drawn Orlando Baking Co. delivery
carriage, ca. 1909.
36

37. From Left to Right
1.Fossil Fuels
2.Soap Making
37

38. 38
Necessity is the Mother of Invention

39. Phase2:Industrial
Revolution
▪Industrial engineering emerged as a profession during
the Industrial Revolution.
▪This was due to the requirement of technically
qualified and skilled people.
▪They were needed to plan, organize and control the
manufacturing processes.
▪After the industrial revolution, Taylor and Gilbreth
(Frank B. Gilbreth and his wife, Lillian Gilbreth)
contributed a lot to the field of industrial engineering
▪Later these contributions were known as the base of
Scientific Management.
39

40. Phase3: Scientific Management
Following contributions, as mentioned in chronological order, form a major part of Scientific Management:
1910: F. W. Taylor’s Scientific Management
1911: Gilbreth’s Motion Study
1913: Gantt’s Scheduling Chart
1917: Harris Inventory Control
1924: Shewart’s Statistical Control Chart
1927–33: Elton Mayo’s Motivation Theory
1932: Babbage Wage payment and Time Study
1933: Barnes Work Study
40

41. Frederick Winslow Taylor
(March 20, 1856 – March 21, 1915)
Father of Scientific Management
• An American Mechanical Engineer.
• Known for his methods to improve Industrial efficiency.
• One of the first Management Consultants.
• In 1911, Taylor summed up his efficiency techniques in his book “The
Principles of Scientific Management”.
• In 2001, Fellows of the Academy of Management voted the most
influential management book of the twentieth century.
• His pioneering work in applying engineering principles to the work
done on the factory floor was instrumental in the creation and
development of the branch of engineering known as Industrial
engineering
41

42. Taylor’s principles
1. Replace working by ‘rule
of thumb,’ use the scientific
method to study a work
and determine the most
efficient way to perform
specific tasks.
1
2. Job specialization, i.e.
rather than simply assign
workers to do any job,
match worker’s capability
and motivation to their jobs,
and train them to work at
maximum efficiency.
2
3. Monitor worker
performance, and provide
instructions and supervision
to ensure that they are
using the most efficient
ways of working.
3
4. Allocate the work
between managers and
workers so that the
managers spend their time
on management, allowing
the workers to perform
their tasks efficiently.
4
42

43. Frank B. Gilbreth and his wife,
Lillian Gilbreth
Iwillalwayschoosealazypersontodoadifficult
jobbecausealazypersonwillfindaneasywayto
doit.-FrankB.GilbrethSr.
43

44. Gilbreth’s Motion Study
•Second major contributions in the field of scientific management are from Gilbreth
family (Frank B. Gilbreth and his wife, Lillian Gilbreth).
• Frank B. Gilbreth focused on identification, analysis, measurement and setting
standards for the fundamental motions, which were required to accomplish a job.
• His contributions were appreciated to set the standard time and method to perform a
task.
•Lillian Gilbreth worked on a human relation aspect of engineering.
44

45. Gantt’s Scheduling Chart
•Henry L. Gantt provided the concept of planning and
scheduling the activities on a graphical chart, widely
known as Gantt Chart.
•This is very helpful in reviewing the progress and
updating the schedule of work.
•The major development of industrial engineering was
emerged during the period 1920–1940.
45

46. Shewart’s Statistical
Control Chart
In 1924, W. A. Shewhart developed the concept of Statistical
Control Chart to measure the quality.
During this period, concepts of inventory control, incentive plans,
material handling, plant layout, etc. were evolved. Ralph M.
Barnes worked on motion study for his doctoral work.
46

47. Phase 4: Operations Research and Quantitative Phase
During World War II, concepts of Operations Research were developed and used to optimize the
resources allocated in the war.
During this phase, the concept of linear programming (LP) was developed by Dantiz.
Some of the major developments observed during this phase:
1956: First NC machine was developed.
1961: First time Robot was used.
1965: Flexible automation was used.
47

48. Phase 5: Automation and Computer-Integrated Manufacturing
•During this phase, most of the automation and computer-integrated manufacturing
concepts were implemented in the industries.
•Concepts of lean manufacturing and Just-In-Time (JIT) were
developed in automobile industries (Toyota manufacturing system/TVS groups).
48