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On-going discussions in the Philippine Senate and House of

Representatives

Industrial Engineering
Laws of 2006
Workload Optimization Act of 2006

The Industrial Engineering Law of 2006

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WORKLOAD OPTIMIZATION
ACT OF 2006
An Act to Optimize Workload and
ensure Workplace Safety for
employees paid by results and those
who are subjected to extraordinary
working conditions,
amending for this purpose Art. 101 Payment by results of
P.D. No. 442, otherwise known as the Labor Code of the
Philippines, as amended, providing penalties,
appropriating funds therefore and for other purposes
3 Definition of Terms

Employees paid by results

Those whose wages are paid based on pre-determined
rates per unit of output, piece rates, pakyaw and other
non-time work (eg. P1/case, P250/van, etc.)

Workload
The standard amount of work that can be accomplished by
an average employee, without compromising
employees’ safety, determined through time and motion
studies and other workload measurement techniques
conducted by registered industrial engineers.
4 Definition of Terms

Workplace Safety Assessments

An evaluation of the soundness and safety of the premises
or workplace actually used by the subject employee in
the performance of his regular work;

Shall cover but is not limited to ergonomics, design of

facility, equipment, personal protective equipment
(PPE), working conditions and other factors affecting
physical and mental strains.
5 Definition of Terms

Registered Industrial Engineer

‰ A person who has exhibited competency in IE tools and
techniques particularly time and motion studies and
other workload measurements, human factors
engineering, ergonomics, safety engineering, etc;
‰ Duly registered; and a
‰ Holder of a valid Certificate of Registration and
Professional Identification card issued by the Board of
Industrial Engineering (BIE) and the Professional
Regulation Commission (PRC)
6 Objective of Regulation

Regulate the conduct of Workload Measurements

and Workplace Safety Assessments and the
determination of production output as basis of
calculating rates per piece only by Registered
Industrial Engineers.

Purposes:
‰ Afford protection to labor and ensure the safety and
well being of workers by ensuring workplace safety;
‰ Allow businesses and industries reasonable returns on
their investments by determining optimum levels of
production/service output.
7 Compliance Strategy

Amend Art. 101 Payment by results of PD 442, otherwise

known as the Labor Code of the Philippines, as amended, to read as
follows:

The Secretary of Labor and Employment shall regulate the payment of wages
by results, including pakyaw, piecework and other non-time work, in order to
ensure THE SAFETY OF EMPLOYEES and payment of fair and reasonable
wages, preferably through time and motion studies BY CONDUCTING A
WORKPLACE SAFETY ASSESSMENT AND WORKLOAD MEASUREMENTS
BY REGISTERED INDUSTRIAL ENGINEERS IN COORDINATION
or in consultation with representatives of workers and employers
organizations.

FURTHER, THE SECRETARY OF DOLE SHALL REGULATE THE

EMPLOYMENT OF WORKERS SUBJECTED TO EXTRAORDINARY WORKING
CONDITIONS BY ENSURING THAT APPROPRIATE WORK HOURS AND REST
PERIODS ARE DETERMINED THROUGH WORKLOAD STUDIES.
8 In Summary

The Workload Optimization Act of 2006

‰ Declares unlawful the adoption of payment by results or

piece rates without the necessary workload measurement
and workplace assessments conducted by licensed
industrial engineers;
‰ Require industries and businesses to determine
appropriate work hours and rest periods for employees
subjected to extraordinary working conditions by licensed
industrial engineers;
‰ Utilizes all registered industrial engineers to become
agents of the government, through DOLE, in ensuring that
labor and safety standards are complied in the workplace.
9

THE INDUSTRIAL ENGINEERING

LAW OF 2006
An Act regulating the practice of Industrial
Engineering in the Philippines,
(reserving such privilege only to those who have
passed and exhibited the minimum standards of
IE competencies through IE licensure
examinations)
providing penalties, appropriating funds therefore and for other
purposes
10 Practice of Industrial Engineering

• Development, Adoption and Implementation of Productivity

Incentives schemes and Other Cost-Improvement programs;
• Setting-up, Maintenance and Improvement of Manufacturing
Standards and Service Performance;
• Job Design and/or Conduct of Workplace Safety Assessments, Time
and Motion Studies and other Work Measurements;
• Setting-up and Maintenance of Production Quota, Piece-rates, and
other nontime work;
• Preparation of Feasibility Studies;
• Project Management;
• Operations Research;
• Production, Planning and Control;
• Material Handling Design, Plant Layout and Facilities Planning;
• Human Factors and Ergonomics;
• Implementation, Supervision and Installation of Quality Management
Systems;
• Consultation, Research and Development, and other activities
requiring Industrial Engineering knowledge, skill and proficiency;
11 Conduct of IE Licensure Examinations

Conduct and Supervision

‰ Board of Industrial Engineering (BIE) under the
administrative control and supervision of the
Professional Regulation Commission (PRC)

1st IE Licensure Exams

‰ Graduates of the SY 2007-2008
‰ 2nd week of November 2008 and every year thereafter
‰ In venues and dates prescribed by the BIE
12 Scope of Examinations

Day Rate Subjects

1 of 3 20% General Engineering

General Engineering Subjects
Probability and Statistics
Engineering Economy

20% Work Methods and Measurement

Human Factors Engineering and Ergonomics
Methods Engineering
Safety Engineering
13 Scope of Examinations

Day Rate Subjects

2 of 3 20% Manufacturing Systems

Operations Research
Materials Handling,
Plant Layout and Facilities Planning
Production Planning and Control
Inventory Planning and Control
Systems Engineering
Industrial Materials and Processes

10% Computer and Information Systems

Systems Analysis and Design
Industrial Systems and Design
Management Information Systems
14 Scope of Examinations

Day Rate Subjects

3 of 3 20% Management Systems

Quality Assurance and Safety
Statistical Process and Quality Control
Feasibility Study
Industrial Organization and Management
Cost Control and Financial Management

5% IE Laws and Ethics

Labor Standards (Labor Code of the Philippines)
Phil. Occupational Safety and Health Standards
IE Code of Ethics and Technical Standards

5% IE Trends and Recent Developments*

15 Scope of Examinations

Day Rate Subjects

3 of 3 20% Management Systems

Quality Assurance and Safety
Statistical Process and Quality Control
Feasibility
General guidelines Study
as to the topics
Industrial Organization and Management
to be included or excluded
Cost Controlfrom
andaFinancial Management
particular examination shall be given
by the “Board”
5% at Laws
IE least and
five Ethics
(5)
months before the exam.
Labor Standards (Labor Code of the Philippines)
Phil. Occupational Safety and Health Standards
IE Code of Ethics and Technical Standards
Reference: Practice of BAR exams for lawyers

5% IE Trends and Recent Developments*

16 Ratings in the IE Licensure Exams

Passed
‰ Ave. of = > 70% with no grade lower than 50% in any given
subject.

Conditional Pass
‰ Ave. of = > 70% in the majority of the subjects;
‰ Provided, candidate shall retake the exam for the failed subjects
within two (2) years from the preceding exam;
‰ Provided Further, candidate earned an ave. of = > 75% and a rating
of = > 65% of all subjects retaken.

Refresher Course
‰ Failed in 3 attempts;
‰ Re-enroll and shall earn at least 24 units of the subjects in the IE
licensure;
‰ Take the IE licensure again!
17 Qualifications

‰ That he/she is a citizen of the Philippines;

‰ That he/she is of good moral character;
‰ That he/she is a holder of at least a Bachelor of Science
in Industrial Engineering (BSIE) or Bachelor of Science in
Industrial and Management Engineering (BSIME), from a
school, institute, college or university recognized by the
government;
‰ That he/she has not been convicted of an offense
involving moral turpitude by a court of competent
jurisdiction.
18 Who shall take the Licensure Exams; Exceptions

‰ Graduates of BSIE/BSIME SY 2007-2008 onwards

The following may or may not take the licensure exams

provided he earns the IE Technical Skills Upgrade within
three (3) years from effectivity of law, else, he shall be
required to pass the IE licensure exams

‰ Graduates of BSIE/BSIME SY 2006-2007 or earlier;

‰ Fulltime IE faculty members provided that he has taken a
full load for six (6) consecutive semesters or four (4)
consecutive trimesters at the time of registration;
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Workload Justifies Industrial

Optimization Engineering
Act of 2006 Law of
Required
2006

The Twin Industrial Engineering Bills

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NEXT STEPS in
legalizing the IE
profession
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Next Steps in legalizing the IE profession

‰ Amend RA 6971, otherwise known as, the Productivity Incentive
Act of 1990 by tapping Industrial Engineers as strategic partners
of the Department of Labor and Employment in driving
productivity, providing profit sharing and tax incentives to
industries who have successfully reduced cost of services and
products.

‰ Require licensed Industrial Engineers to sign off designs and

plans of manufacturing and service facilities (eg. factories,
Warehouses,etc.) before such facilities can be constructed to
ensure that such designs and plans are of optimum levels.

‰ As a requirement for Total Disability availment under the SSS and

GSIS laws, licensed Industrial Engineers to conduct ergonomic
studies and to issue certification that such disability has been
directly attributed by the work done by the employee.
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SUPPORT the TWIN

Industrial Engineering
bills…