Lecture 02 - Industrial Engineering and Production Systems
Lecture 02 - Industrial Engineering and Production Systems
FUNDAMENTALS OF
INDUSTRIAL ENGG.
B.Sc. Industrial Engineering and Management – 1st SEMESTER (2017)
• Industrial Engineering?
Industrial Engineering is
dealing with the
optimization of systems
and processes (in given
circumstances)
• To specify, predict and evaluate the results to be obtained from such system.
Training
- Resource Planning
- Team Facilitation - SPC/SQC - Risk Analysis
- Product Development - Make/Buy Analysis - Project Scheduling
- DOE
- Comparison of Alternatives
- Supplier Quality
Production - Cost Estimating - Course Facilitation
- Queuing Theory
Control - Six Sigma
Facilities Transportation
Factory Operations
- Job Scheduling
Inventory
- Expedite procedures - Logistics Planning
- Layout Design
- Material Handling
IE Methods - Process Flow Analysis
- Inventory Management
- Supplier Selection
- Production Simulation - Material Requirements Planning
Tooling - Theory of Constraints - Supply Chain Management
- Systems Integration
- OSHA Regulations
- Workstation Design - Safety Management
- Ergonomics - Linear Programming
- Methods Engineering -Tool Fab process
- Lean Manufacturing
- Tool Offload procedures
- Tool Repair process
IE113 - Fund. of Ind. Engg. - Tool Room procedures [email protected] 8
Diversity
• Because their skills can be used in almost any type of organization, and also industrial
engineers are usually distributed among industries than other engineers.
• 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.
• 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.
• Develop performance standards, job evaluation, and wage and salary programs.
• Select operating processes and methods to do a task with proper tools and equipment
• 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.
• This rapidly changing environment, where product life cycles are short and global
competition is fierce, forced many organizations to search for ways to increase
competitiveness in order to survive.
– Cost,
– quality,
– time, and
– flexibility.
• Industrial engineering provides the building blocks, tools, and techniques that
organizations are using to improve their performance in these four dimensions.
/ Time
• Product Modeling
– Life-cycle product data, geometry and form features, product information models
and modeling techniques, product modeling systems, and product data standards.
• Quality Control
– The integration of information flows and databases with the production planning
and control systems into productive and manageable systems.
• Safety in 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.
– The analysis, design, and maintenance of work methods. Study of time standards,
including pre-determined time standards and statistical work sampling.
Industrial
Engineering
• Prior to industrial revolution in the early 1800s, there was focus on only manual
operated manufacturing activities.
• There was no factory concept; mostly, handicraft and agriculture products, etc.
were dominated in the trade.
• Three major development in this ere are:
– 1774: James Watt developed steam engine.
– 1776: Adam smith wrote The Wealth of Nations and advocate the concept of
division of labor, skill development, specialization, etc. (Smith 1776).
– 1798: concept of interchangeability of parts was developed by Whitney and was
used in manufacturing of musket (Hatfield 2013).
• This was due to the requirement of technically qualified and skilled people, who
were needed to plan, organize and control the manufacturing processes.
• After the industrial revolution, Taylor and Gilbreth contributed a lot to the field of
industrial engineering and later these contributions were known as the Scientific
Management.
Process
Inputs Outputs
Flow units Goods
(raw material, customers) Resources Labor & Capital
Resources: Labor & Capital Services
• VALUE–ADDED: The difference between the cost of inputs and the value or price of
outputs.
• Existence of Alternatives
• Actions – decisions
• Duration of frying
• Duration of boiling/ intensity of heat
• Quantity of water to use
• Cooking duration for low heat
• Duration (waiting) before serving
• Worthwhile? Catering firm? Army?
• Longer-term decisions (type of rice, stove, energy source, .....)
1. Project
– Processes that produce products of high variety and low volume are termed
projects.
– Project processes are used to make a one-off product to a customer specification.
– A feature of a project is that the location of the product is stationary.
• Examples
– Ships /Sub Marines
– Space Vehicles
– Civil Projects
• Features
– Take long time to complete, involve a large
investment of funds.
– Keeping the time table.
– Special type of product.
– Schedule resources.
– Extreme material flow.
– Approached with planning software.
2. Jobbing
– Processes that produce products of high variety and low volume are termed
jobbing.
– Jobbing processes are used to make a one-off (or low volume) product to a
customer specification.
– A feature of a jobbing process is that the product moves to the location of
transforming resources such as equipment.
– General purpose equipment shared between the products.
• Examples
– Purpose Built Tooling.
– Dies / Molds.
– Manufacture of Formula 1 car.
IE113 - Fund. of Ind. Engg. [email protected] 52
Jobbing
• Features
– Responsibility for making the product is normally
given to skilled persons who decide how best to make
it.
– Same type of machines together (Functional layout).
– Workers move products depending on needed
processes.
– Special type of product, small customer order size.
3. Batch
– Processes that produce products of medium variety and medium volume are
termed batch.
– Products move to resources that are shared between batches.
– A feature of batch processes is that, because it is difficult to predict when a batch of
work will arrive at a machine, a lack of coordination can lead to many products
waiting for that machine at any one time.
• Examples
– Bakeries.
– Machine shop.
– Furniture making.
IE113 - Fund. of Ind. Engg. [email protected] 56
Batch
4. Mass
– Processes that produce products of high volume and low variety are termed line,
repetitive, or mass processes.
– Although there may be variants within the product design, the production process
will essentially be the same for all the products.
– Movement of the product may be automated using the conveyor system.
– Production process is broken down into a number of small, simple tasks.
– Because of the high volumes of product, it is cost effective to use specialised labour
and equipment.
– In order to ensure a smooth flow of product, the process time per unit must be
equalized at each stage of production using a technique called line balancing.
– Because of the low product variety, utilization of equipment is high.
• Examples
– Automobile industry.
– Electronics industry.
5. Continuous
– Processes that operate continually to produce a very high volume of a very
standardized product are termed continuous.
– The products produced by a continuous operation are usually a continuous flow
such as oil and gas.
– Continuous processes use a large amount of equipment specialised and dedicated
to producing a single product (such as an oil refinery for example).
– To make this large investment in dedicated equipment cost effective, continuous
processes operate 24 hours a day.
– The role of labour in the operation of the processes is mainly one of monitoring
and control of the process equipment with little contact with the product itself.
• Examples
– Oil Refinery.
– Electricity production.
– Fertilizer Plant.
– Cement Plant.
• Make-to-Stock:
– Producing in anticipation of demand. (e.g., Televisions, Mobiles, Books, Cars etc.)
– Critical operations issues: Forecasting future demand, maintaining inventory
levels.
• Make-to-Order:
– Producing to customer specifications after an order has been received. (e.g.,
furniture, dresses etc.)
– Critical operations issues: Customer customization, minimizing the time required
to complete the order.
• Assemble-to-Order (Build-to-Order):
– Adding options according to customer specifications. (e.g., Computer systems,
Industrial equipment, etc.)
– Critical operations issues: minimizing the inventory level of standard components,
minimizing the delivery time of the finished products.
• Production and productivity are two different terms having different meanings.
• Higher production does not mean higher productivity, and vice versa.
• Production is related to the activity of producing goods or services.
– It is a process converting inputs into some value-added products/ services.
• Productivity is concerned with how effectively the resources are utilized to increase
the output of production.
• Productivity may be calculated using the following formula:
𝑶𝒖𝒕𝒑𝒖𝒕
𝑷𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒊𝒕𝒚 =
𝑰𝒏𝒑𝒖𝒕
• The emphasis of production is only on volume of production and not on how well the
inputs or resources are utilized.
• In contrast, productivity emphasizes only on the ratio of the output produced to the
inputs used.
• Productivity may be divided into two categories: partial productivity and total
productivity.
• Partial productivity is the ratio of the total output and individual input in the case of
multifactor productivity (MFP).
• This term is used to measure the productivity of an individual input such as
manpower, capital invested and energy utilized in production.
• Partial productivity is defined on the basis of the class of the input being considered.
• For example, if the labor was increased by 17 percent during the last financial years,
its effect on the increased output is represented by partial productivity.
• Similarly, partial productivity of capital, material and other inputs may be defined.
5. Advertising and media planning productivity Output / Advertising and media planning input
• For example if productivity increased from 80 to 84, the growth rate would be
84 – 80
• Productivity Growth = 𝑥 100 = 5%
80
44,000 𝑐𝑜𝑚𝑝𝑜𝑛𝑒𝑛𝑡𝑠
• Present productivity (of labor) =
200 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 8 ℎ𝑜𝑢𝑟𝑠 (30 𝑑𝑎𝑦𝑠 𝑜𝑓 𝑚𝑜𝑛𝑡ℎ)
44,000
• Present productivity (of labor) = = 0.916 𝑚𝑜𝑏𝑖𝑙𝑒 𝑝ℎ𝑜𝑛𝑒 / man−ℎ𝑜𝑢𝑟
48,000
50000
• Present productivity (of labor) =
200+20 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 8 ℎ𝑜𝑢𝑟𝑠 (30 𝑑𝑎𝑦𝑠 𝑜𝑓 𝑚𝑜𝑛𝑡ℎ)
50,000
• Present productivity (of labor) = = 0.946 𝑚𝑜𝑏𝑖𝑙𝑒 𝑝ℎ𝑜𝑛𝑒 / man−ℎ𝑜𝑢𝑟
52,800
50000
• Present productivity (of labor) =
200+25 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 8 ℎ𝑜𝑢𝑟𝑠 (30 𝑑𝑎𝑦𝑠 𝑜𝑓 𝑚𝑜𝑛𝑡ℎ)
50,000
• Present productivity (of labor) = = 0.925 𝑚𝑜𝑏𝑖𝑙𝑒 𝑝ℎ𝑜𝑛𝑒 / man−ℎ𝑜𝑢𝑟
54,000
50000
• Present productivity (of labor) =
200+30 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 8 ℎ𝑜𝑢𝑟𝑠 (30 𝑑𝑎𝑦𝑠 𝑜𝑓 𝑚𝑜𝑛𝑡ℎ)
50,000
• Present productivity (of labor) = = 0.905 𝑚𝑜𝑏𝑖𝑙𝑒 𝑝ℎ𝑜𝑛𝑒 / man−ℎ𝑜𝑢𝑟
55,200
• In this example, it is clear that production has increased by 6000 units. Therefore,
• ABC Industries is compiling the monthly productivity report for its Board of Directors.
a) labor productivity,
c) the multifactor productivity of dollars spent on labor, machine, materials, and energy.
• The average labor rate is $15 an hour, and the average machine usage rate is $10 an hour.
• There are various reasons of poor productivity. Some of them are mentioned as
follows:
1. Poor production planning and control.
2. Low motivation of people.
3. Lack of coordination.
4. Unavailability of right tools, material and human force.
5. Poor product design.
6. Lack of standardization.
7. Poor working environment.