Introduction to Industrial Engineering.pptx
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Introduction to Industrial Engineering.pptx
- 1. Introduction to Industrial Engineering Prof Janak Suthar
- 2. Outcomes: Learner will be able to⦠⒠CO 1. Illustrate the need for optimization of resources and its significance ⒠CO 2. Develop ability in integrating knowledge of design along with other aspects of value addition in the conceptualization and manufacturing stage of various products. ⒠CO 3. Demonstrate the concept of value analysis and its relevance. ⒠CO 4. Manage and implement different concepts involved in method study and understanding of work content in different situations. ⒠CO 5. Describe different aspects of work system design and facilities design pertinent to manufacturing industries. ⒠CO 6. Illustrate concepts of Agile manufacturing, Lean manufacturing and Flexible manufacturing
- 3. What is IE? An industrial engineer is a combination of 50 percent engineer and 50 percent administrator. An industrial engineer maximizes the utilization of scarce resources β namely, time and money. βIf a chemical engineer designs a system, it will be chemically and thermodynamically efficient; if a mechanical engineer designs a system, it will be mechanically and energy efficient; and if an industrial engineer designs a system, it will make a profit
- 4. Modern Disciplines β’ Civil engineering emerging from military engineering β’ Mechanical engineering emerging from growth of mechanical devices after steam engine β’ Electrical engineering after the telegraph (and other products) appeared β’ Chemical engineering (lubricants, etc)
- 5. Industrial Engineering Usually with objectives such as β’increasing profits and/or productivity, β’improving quality, or β’reducing costs. Alternatively, β’IEβs improve organized work.
- 8. Definition Industrial Engineering is concerned with the design, improvement, and installation of integrated systems of people, materials, information, equipment, and energy. 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 system.
- 9. Industrial Engineering & Management Production is the basic activities of all organization Objective of organization is maximize the profit Four main system of any organization are β Finance , Production, Marketing and Personnel
- 10. Specific objective To improve efficiency and effectiveness of organization β β’ Development of procedure for administration and operation β’ Designing tool , equipment's , work method and workplace β’ Development of performance standard and work measurement β’ Value analysis β’ Development of vision and mission for the organization and long-range strategy
- 11. History of Industrial Engineering management Adam Smith (1776) Focus on the division of labor , skill development , time saving and used of specialized machine β’ Workmen doing repetitive work attain higher skill β’ because of repetitive work done by workmen, time is saved while changing from one activity to another β’ Specialization of workmen due to repetitive work results in improvement in production
- 12. History of Industrial Engineering management J.Watt (1864): Steam engine used for mechanical power to enhance the productivity. Babbage (1883) accepted smith concept of division of labor and give advantage of specialization
- 13. History of Industrial Engineering management F.W. Taylor (1859 to 1915) β’ Father of scientific management β’ Selection of workmen for task by considering skill, education , experience ..in old practice workmen allowed to choose their work themselves β’ Developed method study and work measurement β’ Taylor differential price method β’ Better work method proposed like data collection and standard of worker , scientific training for the worker, cooperation between management and labor
- 14. Frank B. Gilbreth (1917) β’ Founder of work study β’ Micromotion study Henry Ford (1913) β’ Mass production Henry Gantt (1913) β’ Gantt chart Harrignton Emerson (1913) β’ Efficiency plan on basis of payment wages FW Harris (1914) β’ EOQ Walter Shewhart (1924) β’ Statistical quality control, sampling inspection Tippett(1937) β’ Work sampling
- 15. Chronology of IE β’ As industrial organizations emerged to capitalize on the rapidly developing array of technological innovations, the size and complexity of manufacturing units increases dramatically. β’ IE emerged as a profession as a result of the industrial revolution and the accompanying need for technically trained people who could plan, organize, and direct the operations of large complex systems.
- 16. Chronology of IE (cont.) Babbage thought to specialize labor by skill required (early 1800βs) Taylor really started IE Analyze and improve the work method Reduce the times required for the work Set standards for the times required Gilbreth extended work of Taylor to consider the human aspects of work to include motion involved in work Henry Gantt developed his chart to preplan, schedule, and monitor work activity Shewhart developed the fundamental principles of statistical process control Disciples became big names in quality
- 17. Where Can Industrial Engineers Work? β’ Just about anywhere a process needs to be designed or improved. Industrial engineers can work in the obvious places like... β’ Manufacturing, such as Microelectronics, Aerospace or Automotive β’ Research and Development or the not-so-obvious places like... β’ Service Industries, such as Banking, Health Care, Insurance, Transportation, and even Theme Parks β’ Industrial engineers determine the most effective ways to use the basic factors of productionβ people, machines, materials, information, and energy -- to make a product or provide a service.
- 18. Design Impacts β’ IE engineers design systems at two levels β’ The first level is called the human activity level and is concerned with how work gets accomplished β’ The second level is called the management control system level and addresses the planning, measurement, and control of organizational activities
- 19. Level One Elements Processes within the organization Layout of facilities and machines Design of the workplace Storage space and location Work methods
- 20. Level Two Elements Planning systems Forecasting systems Material and inventory planning and control Scheduling activities Cost control and analysis Quality control system
- 21. Scientific Management β’ Art of knowing exactly what is to be done and the best way of doing it β’ Scientific management is the application of scientific principles and methods to management β’ Steps are β β’ Recognize the problem, analyze and define objective β’ Collect and analyze the required data β’ Select alternative , if possible β’ Evaluate and review each alternative β’ Test conclusions and if required correct actions β’ Formulate and test principles based on experimental results
- 22. Industrial Engineering Approach β’ All the facts or details about the job/operation are collected and recorded using various recording techniques like charts , diagram and models β’ All the recorded facts are subjected to critical examinations by asking series of questions β’ Alternative ways of doing the operation and/or job is found out by using various techniques like brainstorming β’ Based upon the criteria fixed for evaluations the best alternative is selected β’ 5Mβs = Men, material, Machine, Money and Management
- 23. Remarks..
- 24. Techniques of Industrial Engineering Method study β analysis of different alternative methods for doing same operations Time study β used to set standard time for operations , job which are used in performance evaluation. Financial and non-financial incentives- rational compensation for the efforts of the workers Value analysis - reduced cost of production by minimizing and avoiding unnecessary costs. Motion economy β study the motion employed by the operator or worker Production planning and control β Planning for resources, scheduling and sequencing of work
- 25. Continuously β¦.. vi. Inventory control β for EOQ vii. Job evolution β used to set sound wage policy and to eliminate wage inequality viii. Human engineering β used for finding out relationship b/w man and working conditions ix. Operation research- used for finding optimal solution x. Material handling system- minimize unnecessary movement of material
- 26. System Approach A) System analysis β’ Investigating system objective β’ Selection of criteria of evaluation alternative solutions β’ Examination of feasibility of proposed solution β’ Evaluation of feasible solution β’ Selection of optimum solution B) System Engineering β identify various subsystems C) System Management β planning directing and controlling system engineering
- 27. Continuously β¦.. Activities of system analysis β’ Defining problem β’ Defining system objective β’ Defining boundaries with which system operates β’ User requirement analysis β’ Measure of system effectiveness β’ Functional analysis β’ Evaluation od restriction β’ Select feasible alternatives to solve problem β’ Evaluation of feasible solution β’ Selection of best alternative
- 29. Productivity Constant improvement in what exits Productivity is a measure of efficiency of production. Productivity is the ratio of What is produced to what is required to produced it Productivity is the determination of efficiency of an enterprise to convert its variables resources into useful finished goods and services.
- 30. Concept of Productivity International Labor organization (ILO ) define productivity as the ratio between output of work to input of work. Its an indicator of how well the factor of production ( land , capital , labor and energy ) are utilized.
- 31. Productivity β’ Very simply, Productivity = Output Input β’ Definition: Productivity is the relationship between the outputs generated from a system and the inputs that are used to create those outputs.
- 32. Why Productivity Important Productivity Profit Investment GDP Per capita Income Increase Std of Living
- 34. Production Vs Productivity Production is related to the activity of produced good and services. It is a process of converting input into value added output. Productivity is related to the efficient utilization of input resources to produce output in the form of value-added goods and services.
- 35. Difference b/w Productivity and Performance Productivity Performance Ratio of output and Input Consider out put alone Its ratio of actual work done and expected stand work
- 36. Efficiency Vs Productivity Efficiency Productivity It is ability to do something or produce something without wasting material, time or energy It is the rate at which goods are produced or the work is completed It is the measure of waste in a system It is the measure of output produced by one unit of input It depends on quality It depends on production
- 37. Factors Affecting Productivity Controllable or internal factors Uncontrollable or external factors Plant and equipment : availability and reduction of idle time Technology : automation Work method : improvement in the way of doing things Natural resources Govt and infrastructure
- 38. Criteria for measurement of productivity The measure should accurately reveal actual change in productivity Input and output must be considered in totality Productivity of all activities must be measured individually Productivity data must be made available for managerial actions.
- 39. β’ Will start at 11:35
- 40. Objective of Productivity Measurement To compare an organization with its competitor's market To find out the relative performance of different employees , unit and departments To compare relative benefits of different types of input according to their output
- 41. Factor Productivity Indices / partial productivity Labor Productivity Material productivity Machine productivity Capital Productivity
- 42. Labor Productivity Labor Productivity = πππ‘ππ ππ’π‘ πΏππππ πΌπππ’π‘ Labor productivity (in terms of hours) = πππ‘ππ ππ’πππ‘ππ‘π¦ πππππ’πππ π΄ππ‘π’ππ πππ βππ’ππ ππππ’ππππ π‘π πππππ’πππ π‘βππ‘ ππ’πππ‘ππ‘π¦ Labor productivity (in terms of money) = πππ‘ππ πππ π‘ ππ π πππ π£πππ’π ππ ππ’π‘ππ’π‘ πππππ’πππ π΄πππ’ππ‘ ππ π‘ππππ ππ ππ’ππππ π ππππ‘ ππ π€πππππ
- 43. Material Productivity β’ Material Productivity = πππ‘ππ ππ’π‘ππ’π‘ πππ‘πππππ πΌπππ’π‘ OR ππ’ππππ ππ ππππ‘ πππππ’πππ πππ‘ππ πππ‘πππππ πΆππ π‘
- 44. Machine Productivity β’ Machine productivity = πππ‘ππ ππ’π‘ππ’π‘ πππβπππ πΌπππ’π‘ OR ππ’π‘ππ’π‘ ππ π π‘π βππ’ππ π΄ππ‘π’ππ πππβπππ βππ’ππ
- 45. Capital Productivity β’ Capital productivity= πππ‘ππ ππ’π‘ππ’π‘ πΆππππ‘ππ πΌπππ’π‘ or πππ‘ππ ππ’π‘ππ’π‘ πΆππππ‘ππ ππππππ¦ππ
- 46. Partial Productivity Measures (PPM) β’ Major disadvantages of PPM is that there is an over emphasis on one input factor to the extent that other inputs are underestimated. β’ PPM cannot represent the overall productivity of the firm.
- 47. Total Productivity Measure Total Productivity = ππππ΄πΏ ππππππ ππππ΄πΏ πΌππππ Total Productivity = πππ‘ππ πππππ’ππ‘πππ ππ πππππ πππ π πππ£ππππ πΏππππ+πππ‘πππππ+πΆππππ‘ππ+πΈπππππ¦
- 48. Feature of Total productivity β’ Gives organizational level and detailed unit level of index. β’ Help to find the performance and productivity of operational unit. β’ Help to compare with the other competitive organizations.
- 49. Total Factor Productivity Measures (TFP) β’ Labor and capital are always considered important contributors to the process of production. β’ Data easy to obtain in TFP β’ Its does not consider the impact of material and energy input , even though material constitute 60% of the cost. β’ Total Factor productivity = πππ‘ ππ’π‘ππ’π‘ πΏππππ’π+πΆππππ‘ππ πΌπππ’π‘
- 50. Muti factor Productivity β’ MFP model considers labor , material and energy as major inputs β’ Capital was left out since it is very difficult to estimate how much capital is being consumed in a unit of time. β’ MFP = πππ‘ ππ’π‘ππ’π‘ πΌπππ’π‘ πππππ’π+ππππππ¦+πππ‘πππππ
- 51. Advantages and Limitation of Productivity Measure Advantages β Partial Productivity measures 1. Easy to understand and calculate 2. A tool to pin-point improvement Total Productivity measure- 1. Easy and more accurate representation of total picture of the company 2. Easily related to total cost Limitation β Misleading if used alone No consideration of overall impact 1. Difficulty in obtaining the data 2. Requirement of special data collection system
- 52. Productivity Measurement Models Depends upon the following Factors: The purpose of productivity measurement The resources available for the productivity measurements Capabilities of the people involved in productivity measurements. Organizational setups Types of product and composition of market segments Available data
- 53. Productivity Measurement Models Craig and Harris model Taylor- Devis model APC model
- 54. Craig and Harris Model β’ Services flow model β all input converted into currency i.e. rupees spend for inputs β’ P= π πΏ+πΆ+π +π β’ where P= Total Productivity, O=output, L = Labor input, C=Capital employed , R= Raw material, parts and component purchased, Q= other misc. expenses
- 55. Continuouslyβ¦β¦. β’ Useful for MSME β’ This model does not consider any technological changes or change in the human resource skill β’ No model which considers intangible gains for organization.
- 56. Taylor β Davis Model -
- 57. Continuouslyβ¦β¦. β’ E= Exclusions ( materials and services purchased from outside +depreciations of building +plant +equipment's +renter) β’ W= Wages and salary β’ B = Benefits β’ KW = Working capital β’ KF= Fixed Capital β’ Fb= inventors' contributions β’ Df= price deflators
- 58. American Productivity Center (APC) Model This model distinguishes among profitability , price recovery and productivity It can be utilized to measure productivity change in labor , material, energy and capital APC model is based on the premise that profitability is function of productivity and price recovery Productivity relates to quantities of output and quantities of inputs while price recovery relates to price of output and cost of inputs
- 59. APC model Profitability = Productivity * price recovery This model compare data from one period (base period ) with the data from current period.
- 60. APC model Most suitable model for managers who are interested to know about the profit of the organization rather than productivity The model is most suitable for the investors of the organization. Due to its comprehensive approach, it is much applicable and most commonly used This model also help in reducing the resistance created by the managers in productivity measurement
- 62. Human resources 1. General level of education is important 2. Training 3. Incentive scheme 4. Worker Participation in management 5. Management by objective 6. Quality circles 7. Communication system 8. Manpower Planning 9. Working Hours
- 63. Technology
- 64. Physical facility in plant
- 65. Product
- 66. Production
- 68. Material
- 70. Numerical β’ Bank employs three loan officers, each working eight hours per day. Each officer processes an average of five loans per day. The bankβs payroll cost for the officers is $820 per day, and there is a daily overhead expense of $500. a. Compute the labor productivity. b. Compute the multifactor productivity, using loans per dollar cost as the measure. The bank is considering the purchase of new computer software for the loan operation. The software will enable each loan officer to process eight loans per day, although the overhead expense will increase to $550. c. Compute the new labor productivity. d. Compute the new multifactor productivity. e. Should the bank proceed with the purchase of the new software? Explain.
- 72. Thank you