2. 2
HISTORY AND PERSPECTIVE OF INDUSTRIAL
ENGINEERING
How did the two words “industrial” and “engineering” become
combined to form the label “industrial engineering”?
What is the relationship of industrial engineering to other
engineering disciplines, to business administration, to the social
sciences?
To understand the role of industrial engineering (IE) in today’s
complex world, it is helpful to learn the historical developments that
were involved in the progress of IE.
Principles of early engineering were first taught in military academies
and were concerned primarily with road and bridge construction and
defenses.
Interrelated advancements in the fields of physics and mathematics
laid the groundwork for practical applications of mechanical
principles.
3. 3
The first significant application of electrical science was the development
of the telegraph by Samuel Morse (1840).
Thomas Edison’s invention of the carbon lamp (1880) led to widespread
use of electricity for lighting purposes.
The science of chemistry is concerned with understanding the nature of
matter and learning how to produce desirable changes in materials.
Fuels were developed needed for the new internal combustion engines.
Lubricants were needed for mechanical devices.
Protective coatings were needed for houses, metal products, ships, and
so forth.
Five major engineering disciplines (civil, chemical, electrical, industrial, and
mechanical) were the branches of engineering that came out prior to the
1st World War.
Developments following 2nd World War led to other engineering
disciplines, such as nuclear engineering, electronic engineering,
aeronautical engineering, and even computer engineering.
4. 4
Chronology of Industrial Engineering
Charles Babbage visited factories in England and the United States in
the early 1800’s and began a systematic recording of the details
involved in many factory operations.
He carefully measured the cost of performing each operation as well
as the time per operation required to manufacture a pound of pins.
Babbage presented this information in a table, and demonstrated
that money could be saved by using women and children to perform
the lower-skilled operations.
The higher-skilled, higher-paid men need only perform those
operations requiring the higher skill levels.
5. 5
Frederick W. Taylor is done potential improvements to be gained through
analyzing the work content (minimum amount of work required to accomplish the
task) of a job and designing the job for maximum efficiency.
Frank B. Gilbreth extended Taylor’s work considerably. Gilbreth’s primary
contribution was the identification, analysis and measurement of fundamental
motions involved in performing work.
Henry L. Gantt, developed the Gantt chart. The Gantt is a systematic graphical
procedure for pre-planning and scheduling work activities, reviewing progress,
and updating the schedule.
During the 1920s and 1930s much of fundamental work was done on
economic aspects of managerial decisions,
inventory problems,
incentive plans,
factory layout problems,
material handling problems,
principles of organization.
6.
7.
8. 8
Definition of Industrial Engineering
The formal definition of industrial engineering has been adopted by the
Institute of Industrial Engineers (IIE):
“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”.
Scope
The degree of industrial engineering is evidenced by the wide range of
such activities as research in biotechnology, development of new
concepts of information processing, design of automated factories, and
operation of incentive wage plans.
9. 9
Diversity
Industrial engineering is a diverse (various) discipline concerned with the
design, improvement, installation, and management of integrated
systems of people, materials, and equipment for all kinds of
manufacturing and service operations.
Industrial engineering is concerned with performance measures and
standards, research of new products and product applications, ways to
improve use of scarce (limited) resources and many other problem
solving adventures.
An Industrial Engineer may be employed in almost any type of industry,
business or institution, from retail establishments to manufacturing
plants to government offices to hospitals.
Because their skills can be used in almost any type of organization, and
also industrial engineers are usually distributed among industries than
other engineers.
For example, industrial engineers work in insurance companies, banks,
hospitals, retail organizations, airlines, government agencies, consulting
firms, transportation, construction, public utilities, social service,
electronics, personnel, sales, facilities design, manufacturing, processing,
and warehousing.
10. 10
Efficiency
Industrial engineers determine the most effective ways for an
organization to use the basic factors of production - people, machines,
materials, and energy. They are more concerned with people and
methods of business organization than engineers in other specialties.
To solve organizational, production, and related problems most
efficiently, industrial engineers design data processing systems and apply
mathematical analysis such as operations research.
They also develop management control systems to help in financial
planning and cost analysis, design production planning and control
systems to coordinate activities and control product quality, and design
or improve systems for the physical distribution of goods and services.
Industrial engineers conduct surveys to find plant locations with the best
combination of raw materials, and transportation.
They also develop wage and salary administration systems and job
evaluation programs.
11. 11
Activities
Install data processing, management information, wage incentive
systems.
Develop performance standards, job evaluation, and wage and salary
programs.
Research new products and product applications.
Improve productivity through application of technology and human
factors.
Select operating processes and methods to do a task with proper tools
and equipment
Design facilities, management systems, operating procedures
Improve planning and allocation of limited resources
Enhance plant environment and quality of people's working life
Evaluate reliability and quality performance
Implement office systems, procedures, and policies
Analyze complex business problems by operations research
Conduct organization studies, plant location surveys, and system
effectiveness studies
Study potential markets for goods and services, raw material sources,
labor supply, energy resources, financing, and taxes.
12. 12
The evolution of the industrial and systems engineering profession
has been affected significantly by a number of related
developments.
Impact of Operations Research
The development of industrial engineering has been greatly influenced by the
impact of an analysis approach called operations research.
This approach originated in England and the United States during 2nd World
War and was aimed at solving difficult war-related problems through the use of
science, mathematics, behavioral science, probability theory, and statistics.
Impact of Digital Computers
Another development that had a significant impact on the IE profession is the
digital computer. Digital computers permit the rapid and accurate handling of
huge quantities of data, so permitting the IE to design systems for effectively
managing and controlling large, complex operations.
The digital computer also permits the IE to construct computer simulation
models of manufacturing facilities in order to evaluate the effectiveness of
alternative facility configurations.
13. 13
Computer simulation is emerging most widely used IE technique. The
development and widespread utilization of personal computers is having
an exciting impact on the practice of industrial engineering.
Emergence of Service Industries
In the early days of the industrial engineering profession, IE practice was
applied almost fully in manufacturing organizations. After the 2nd World
War there was a growing awareness that the principles and techniques of
IE were also applicable in non-manufacturing environments.
Thousands of Industrial Engineers are employed by government
organizations to increase efficiency, reduce paperwork, design
computerized management control systems, implement project
management techniques, monitor the quality and reliability of vendor-
supplied purchases, and for many other functions.
14. 14
Engineering Education and ABET Accreditation
Engineering education has progressed through several stages of
evolution. Prior to 2nd World War engineering education was concerned
with the art and practice of engineering principles.
Engineering students spent long hours learning to operate lathes, drill
presses, molding machines, foundries, and so on.
They learned to wind motors and to build radio sets. There was a
considerable amount of “hands-on” experience involved in the educational
process.
The Accreditation Board for Engineering and Technology (ABET) is the
official agency in the United States for examining and accrediting
(approving) engineering curricula.
The purpose of ABET accreditation is to assure the public and employers
of engineering graduates that certain minimum standards have been met.
15. 15
Professional Ethics
The word ethics has several distinct meanings.
Engineering ethics is the study of the moral values, issues, and
decisions involved in engineering practice.
Engineers are frequently involved in decisions that have a
reflective (deep) effect on society.
The design of particular devices almost always involves the safety
of the user.
The design and location of a factory affect the community and its
citizens.
The design of a management system greatly affects the individuals
working for the organization – their comfort, their sense of worth,
their financial status, and so on.
The engineering profession enjoys a very favorable status
regarding its devotion to professional ethics.
16. 16
What Is Morality?
Engineering ethics studies moral values in engineering,
What is morality?
What are moral values?
One suggestion given in dictionaries is that morality concerns right
and wrong, good and bad, the rules that have to be followed.
Morality is reasons centered in respect for other people as well as
for ourselves, reasons that involve caring for their good as well as
our own.
Moral reasons, for instance, involve respecting people by being fair
and just with them, respecting their rights, keeping promises,
avoiding unnecessary attack, and avoiding cheating and
dishonesty.
17. 17
Illustrative Cases
An inspector discovered faulty construction equipment and applied a
violation tag, preventing its continued use. The inspector’s supervisor,
a construction manager, viewed the case as a minor violation of safety
regulations and ordered the tag to be removed so the project would
not be delayed. The inspector objected and was threatened with
disciplinary action. The continued use of the equipment led to the
death of a worker on a tunnel project.
An electric utility company applied for a permit to operate a nuclear
power plant. The licensing agency was interested in knowing what
emergency measures had been established for human safety in case
of reactor break down. The utility engineers described the alarm
system and arrangements with local hospitals for treatment. They did
not emphasize that these measures applied to plant personnel only
and that they had no plans for the surrounding population. “That is
someone else’s responsibility, but we don’t know whose,” they
answered upon being questioned about this.
18. 18
A chemical plant dumped wastes in a landfill. dangerous
substances found their way into the underground water table. The
plant’s engineers were aware of the situation but did not change
the disposal method because their competitors did it the same
cheap way, and no law explicitly forbade the practice. Plant
supervisors told the engineers it was the responsibility of the local
government to identify any problems.
The ABC Company began selling its latest high-tech product before
it had been fully checked out in beta tests that are, used on real
applications by a group of knowledgeable users. It was not really
ready for distribution, but clients were already tempted to this
product by glossy advertising designed to win the market by being
first to capture clients’ attention.
These examples show how ethical problems arise most often when
there are differences of judgment or expectations as to what
constitutes the true state of affairs or a proper course of action.
19. 19
Why Study Engineering Ethics?
The briefest answer to why engineering ethics should be studied is
that it is important both in preventing serious consequences of faulty
ethical reasoning and in giving meaning to engineers’ activities.
The direct aim is to increase the ability to deal effectively with moral
complication in engineering.
Engineering ethics is a branch of professional ethics, that is, the study
of moral values and issues in the professions.
Professional organizations have addressed the complication of moral
issues in their fields by developing codes of ethics.
Those codes have great importance as an expression of the
profession’s collective commitment to ethics.
20. 20
ENGINEERING CODES OF ETHICS
The Canon (standard) of Ethics provided by the Accreditation Board
for Engineering and Technology (ABET).
THE FUNDAMENTAL PRINCIPLES
Engineers support and advance the truth, honor and dignity of the
engineering profession by:
Using their knowledge and skill for the enhancement of human
wellbeing;
Being honest and neutral, and serving with loyalty to the public, their
employers and clients;
Striving to increase the competence and prestige (status) of the
engineering profession;
Supporting the professional and technical societies of their
disciplines.
22. 22
Industrial and Systems Engineering (I&SE) Design
Industrial and systems engineers (I&SEs) design systems at
two levels.
The first level is called human activity systems and is
concerned with the physical workplace at which human
activity occurs.
The second level is called management control systems
and is concerned with procedures for planning,
measuring, and controlling all activities within the
organization.
23. 23
Human Activity System
The human activity system within an organization consists of the following
elements that are designed by I&SEs:
The manufacturing process itself (or the processing procedures of a service
organization)
Materials and all other resources utilized in the production process.
Machines and equipment.
Methods by which workers perform tasks.
Layout of facilities and specification of material flow.
Material handling equipment and procedures.
Workplace design.
Storage space size and location.
Data recording procedures for management reporting.
Procedures for maintenance and housekeeping.
Safety procedures.
24. 24
Management Control System
The management control system of an organization consists of the following elements
that are designed by I&SEs:
Management planning system.
Forecasting procedures.
Budgeting and economic analyses.
Wage and salary plans
Incentive plans and other employee relations systems.
Recruiting, training, and placement of employees.
Materials requirement planning.
Inventory control procedures.
Production scheduling.
Dispatching (sending out)
Progress and status reporting.
Corrective action procedures.
Overall information system.
Quality control system.
Cost control and reduction
Resource allocation.
Organization design.
Decision support systems.
Although the elements just described are expressed in manufacturing terminology, the
framework is applicable to any system.
25. 25
Typical I&SE Activities
Different companies expect I&SEs to perform different kinds of activities.
Traditionally, IE functions have been concentrated at the operations level
of a firm.
Other firms, recognizing the broad-based skills of their Industrial Engineers
have expanded their activities to include the design of management
systems.
In recent years, as the IE role has added a systems flavor. I&SEs are
expected to engage in activities at the corporate level.
To gain an appreciation for the broad range of activities in which I&SE
might be engaged, a list of activities grouped according to the three
categories namely:
Production operations,
Management systems,
Corporate services.
26. 26
Production Operations
A. Related to Product or Service:
1. Analyze a proposed product or service.
Determine whether it would be profitable, at various production
volumes.
Is it compatible (well-suited) with the existing product line?
Assess the manufacturability of the design, as prepared by the
engineering design department.
Determine the best (most cost-effective) material utilization.
2. Constantly attempt to improve existing products or services.
3. Perform analyses relating to distribution of the product or delivery
of the service.
27. 27
B. Related to Process of manufacturing the product or producing the
service:
Determine the best process and method of manufacture.
Select equipment; determine degree of automation, use of robots, and
so on.
Balance assembly lines.
Determine the best material flow and material handling procedures
and systems.
C. Related to Facilities:
Determine the best layout of equipment.
Determine the appropriate storage facilities for raw materials; work in
process, and finished goods inventory.
Determine appropriate preventive maintenance systems and
procedures.
Provide for appropriate inspection and test facilities.
Provide sufficient utilities for the operation.
Provide for security and emergency services.
28. 28
D. Related to Work Methods and Standards:
Perform work measurement studies; establish time standards and
update them as required.
Perform methods of improvement studies.
Perform value engineering analyses, eliminating cost and waste to the
maximum level possible.
E. Related to Production planning and control:
Forecast the level of activity. (How many units will be sold)?
Analyze the capacity and resource constraints.
Perform operations planning:
Perform inventory analysis:
Perform materials requirement planning (MRP)
Perform operations scheduling:
Design the quality control system and inspection procedures.
Design systems and procedures for shop floor control
29. 29
Management Systems
A. Related to Information Systems:
Determine management information requirements:
Identify the decisions that are made by managers at all levels; specify
timing of each decision.
Determine the specific data/information needed for each decision.
Identify the sources of each data element.
Determine the preferred form of data.
Design the data base to support the information system:
Specify input formats from data sources.
Design the management reports that will be produced:
Perform data analyses, as required.
Provide feedback to all levels of the organization.
Develop and implement decision support systems.
Analyze the requirements for data communications and computer
networks.
30. 30
B. Related to Financial and Cost Systems:
Design a budgeting system.
Perform a variety of engineering economy studies.
Design, implement, & follow cost-reduction programs.
Design procedures for systematically updating standard costs.
Design systems for generating cost estimates for various purposes.
Develop procedures for tracking and reporting cost data for management
decision making.
C. Related to Personnel:
Design procedures for employee testing, selection, and placement.
Design training and education programs for personnel at all levels in the firm.
Design and install job evaluation and wage incentive programs.
Design effective labor relations programs and procedures.
Apply the principles of ergonomics and human engineering to the design of
jobs, workplaces, and the total work environment.
Develop effective programs of job enhancement.
Coordinate the activities of quality circle groups.
Design, implement, and monitor effective safety programs.
31. 31
Corporate Services
A. Comprehensive Planning:
Design, implement, and monitor a multilevel planning system:
Specify mission of organization.
Identify key results areas.
Specify long-term goals.
Determine short-term objectives.
Assist corporate management in performing strategic planning.
Assist corporate management in rationalizing the firm’s strategy in the
international arena.
Perform enterprise modeling:
Develop a high-level “business model,” in which the major data flows are
mapped between the major corporate functions.
Employ structured modeling methods to develop a hierarchical break down
structure of the enterprise functions, sub-functions, and so on.
Perform systems integration activities:
32. 32
Determine interdependencies between functions.
Perform capacity analyses.
Participate in decisions relative to plant expansion and new plant setting.
Provide project management services:
Project definition and planning.
Work breakdown structures.
Network analysis.
Project tracking and follow-up.
Assist in implementing the concepts of total quality management
through out the organization.
Provide leadership in resource management:
Provide investigative services regarding utilization of energy, water, and
other resources.
Develop effective systems for the management of hazardous wastes,
scrap, and other by-products.
33. The Three Levels of Enterprise Strategy
Enterprise strategy can be formulated and implemented at three
different levels:
Corporate level
Business unit level
Functional or departmental level
At the corporate level, you are responsible for creating value through
your businesses. You do so by managing your portfolio of businesses,
ensuring that your businesses are successful over the long term,
developing business units, and sometimes ensuring that each business is
compatible with others in your portfolio.
Products and services are developed by business units. The role of the
corporation is to manage its business units, products and services so
that each is competitive and so that each contributes to corporate
purposes.
34. Corporate Level Strategy
Corporate level strategy fundamentally is concerned with selection of businesses in
which your company should compete and with development and coordination of
that portfolio of businesses.
Corporate level strategy is concerned with:
Reach – defining the issues that are corporate responsibilities. These might
include identifying the overall vision, mission, and goals of the corporation, the
type of business your corporation should be involved, and the way in which
businesses will be integrated and managed.
Competitive Contact – defining where in your corporation competition is to be
localized.
Managing Activities and Business Interrelationships – corporate strategy seeks
to develop synergies by sharing and coordinating staff and other resources
across business units, investing financial resources across business units, and
using business units to complement other corporate business activities.
Management Practices – corporations decide how business units are to be
governed: through direct corporate intervention (centralization) or through
autonomous government (decentralization).
35. Business Unit Level Strategy
A strategic business unit may be any profit center that can be planned independently
from the other business units of your corporation. At the business unit level, the
strategic issues are about both practical coordination of operating units and about
developing and sustaining a competitive advantage for the products and services that
are produced.
Functional Level Strategy
The functional level of your organization is the level of the operating divisions and
departments. The strategic issues at the functional level are related to functional
business processes and value chain. Functional level strategies in R&D, operations,
manufacturing, marketing, finance, and human resources involve the development
and coordination of resources through which business unit level strategies can be
executed effectively and efficiently.
Functional units of your organization are involved in higher level strategies by
providing input into the business unit level and corporate level strategy, such as
providing information on customer feedback or on resource and capabilities on which
the higher level strategies can be based. Once the higher level strategy or strategic
intend is developed, the functional units translate them into discrete action plans that
each department or division must accomplish for the strategy to succeed.
36. 36
B. Policies and Procedures:
Perform studies relative to organizational analysis and design.
Perform analyses of various functional groupings, recommend
improvements to top management.
Develop and maintain policy manuals.
Develop and maintain current procedures relative to all management
practices and systems.
C. Performance Measurement:
Design meaningful performance measures for the key results areas of each
organizational unit.
Identify the “critical success factors” or measures of value for each unit.
Develop methods and systems for analyzing operating data of all units and
interpreting the results.
Specify corrective action procedures.
Design reports for all levels of management.
37. 37
D. Analysis:
Analyze systems and construct models:
State explicitly the problem being studied.
Determine the appropriate solution method. Apply fundamental
solution methodologies.
Recognize all assumptions pertaining to model and the solution
method.
Perform simulation studies as appropriate.
Perform operations research studies as appropriate.
Perform statistical analyses.
Recognize the dynamic nature of the system being studied and include this
feature in proposed solutions.
Apply the concepts of artificial intelligence and expert systems, as
appropriate.
Conduct designed experiments on appropriate portions of the
organization, in an attempt to continuously improve the overall
performance of the organization.
One person cannot possibly perform all of the previous activities for an
organization. I&SE education programs, however, are designed to provide
the fundamental principles involved in many of these activities.
38. 38
Career Opportunities for Industrial Engineers
Industrial engineers are the “problem solvers” in all organizations. Career opportunities for
industrial engineering are limitless. A sample list of career opportunities for industrial
engineers include:
Manufacturing: regardless of the product manufactured, every manufacturing company
needs Industrial Engineers to plan the facility, perform economic analyses, plan and control
production, manage people, handle safety issues, improve quality, evaluate performance,
etc.
Health Services: hospitals and clinics need Industrial Engineers to perform cost/benefit
analyses, schedule work load, manage people, evaluate safety concerns, design and
maintain facilities, etc.
Transportation: airlines, ground transportation, trucking, and warehousing companies
need Industrial Engineers to design the best schedules and routes, perform economic
analyses, manage crews, etc.
Financial: banks and other savings and lending institutions need Industrial Engineers to
design financial plans, perform economic analyses, etc.
Government: local and federal governments need Industrial Engineers to design and enforce
safety systems, environmental policies, plan for and operate in a number of organizations.
Consulting: Industrial Engineers may work as consultants to help design and analyze a
variety of systems including information systems, manufacturing and service systems.
39. 39
Sample Industrial Engineering Courses
Computer Assisted Drawing and Design
Application of computer-assisted design technology to product
design, feasibility study and production drawing.
Product Modeling
Life-cycle product data, geometry and form features, product
information models and modeling techniques, product modeling
systems, and product data standards.
40. 40
Introduction to Industrial and Systems Engineering (ISE)
Definition of Industrial and Systems Engineering (ISE); ISE’s origins,
role, functions; and contributions of the ISE in industry. Professional
development opportunities.
Quality Control
Modern concepts for managing the quality function of industry to
maximize customer satisfaction at minimum quality cost. The
economics of quality, process control, organization, quality
improvement, and vendor quality.
Engineering Economic Analysis
Basic methods of engineering economic analysis including
equivalence, value measurement, interest relationships and decision
support theory and techniques as applied to capital projects.
41. 41
Facilities Planning and Materials
Application of methods and work measurement principles to the
design of work stations. Integration of work stations with storage
and material handling systems to optimize productivity.
Manufacturing Processes
Study of interrelationships among materials, design and processing
and their impact on workplace design, productivity and process
analysis.
Introduction to Engineering Management
Organization of engineering systems including production and
service organizations. Inputs of human skills, capital, technology,
and managerial activities to produce useful products and services.
42. 42
Industrial Information Systems
The integration of information flows and databases with the
production planning and control systems into productive and
manageable systems.
Safety in Engineering
Introduces occupational safety and health hazards associated with
mechanical systems, materials handling, electrical systems, and
chemical processes. Illustrates controls through engineering
revision, safeguarding, and personal protective equipment.
Emphasis placed on recognition, evaluation and control of
occupational safety and health hazards.
Human Factors Engineering
Examination of the ways to fit jobs and objects better to the nature
and capacity of the human being. Lectures will review man’s
performance capability, singly and in groups, in interacting with his
work environment. Stresses the practical application of human
factors principles.
43. 43
Methods Engineering and Work Design
The analysis, design, and maintenance of work methods. Study of
time standards, including pre-determined time standards and
statistical work sampling.
Productivity Engineering and Management
The improvement of productivity as a functional activity of the
enterprise. Productivity definitions, models, analysis, measurement,
methodologies, and reporting systems.
Production Planning and Control
Production systems, demand forecasting, capacity planning, master
production planning, material requirements planning, shop floor
control, and assembly line balancing.
44. 44
Introduction to Technology Entrepreneurship
An introduction to theories, concepts, and practices of
entrepreneurship. Students will produce feasibility analyses, learn to
develop and analyze new ventures, and be introduced to business
plans.
Co-op Work Experience Practical
Co-op work experience under approved industrial supervision. Written
report required at the conclusion of the work assignment.
Systems Engineering Senior Project
A design course that draws upon various components of the
undergraduate curriculum. The project typically contains problem
definition, analysis, evaluation and selection of alternatives. Real life
applications are emphasized
45. 45
Operations Research I
Modeling principles with emphasis on linear programming and
extensions. The simplex procedure and its application through
computer software packages. The analysis and interpretation of
results in decision-making.
Simulation Models of Industrial Systems
Simulation methodology, design of simulation experiments,
implementation of simulation effort through computer software.
Application to the solution of industrial and service system problems.
Total Quality Management for Engineers
Fundamentals of TQM and its historical development. Integration of
QC and management tools, QFD, benchmarking, experimental design
for scientific management.
