SmBdure

1.1 In-
ObjeCl~
I .2 Concept anti Actiaies of kdwtrial Engineering
1.3 H i m of
1.4 Relationship borwmn Production Management and Industrial Engineering
1.5 TnuiitiorraS d Eitghmriag and Modem Industrial Engineering
1.6 Tools and Tdniqms ofladrwnial Engineering
1.7 Industrial E a g ' i a g :A S@cm View Point
1.8 I ~ E ~ m ~ S a c t o r
1.9 +nmaty
1.10 Key WorQ
1. I 1 Answers to SAQs

Industrial Engineering (JE) is concerned with the design, improvement and installation of
integrated system ofpuqh, mat&&, quipments and energy (American Institute of
Industrial Engineers). Men, money, tmtdals, tools and equipments and machinery are
the resources of any organization. tE atkmpts to analyze the use and cost of these
resources in detail in order to adwe objectives and policies of an organisation. It also
attempts to u&st&ad d m d w the r c h h s h i p between efficiency and organisation
structure.

4
- ion memgmeMand industrial engineering,

d i r ma&& by iacmwing competition in almost every

an on ti# rise and manufacturers
as possible (concept of economics
of scale is no more of the customers. Thus, there is a
quality and quantity at
.This demands an increase
neering is going to play a
engineering techniques are
waste and proper
allocation and utilisrtisn of msawces.
industrial Engineering Industrial bngineering is a profession in which a knowledge of mathematical and natural
sciences gained by study, experience and practise. tp applied with jud&ment to develop
the ways to utilise economically the materials and dther natural &sources and forces of
nature for the benefit of mankind.
American Institute of Industrial Engineering (AIIE) define lndustrial Engineering as
follows : lndustrial Engineering is concerned with the design, improvement and
installation of integrated system of men, materials and equipment. It draws upon
specialised knowledge and skills in the mathematical, physical sciences together
with the principals and methods of engineering analysis and design to specify,
predict and evaluate the results to be obtained from such systems.
The prime objective of Industrial engineering is to increase the productivity by
eliminating waste and non-value adding (unproductive) operations and improving the
effective utilisation of resources.
Industrial Engineering directs towards the design of a system and focuses on productivity
improvement. Productivity improvement occurs when there is efficient use of resources,
less waste generated per unit of input supplied and higher levels of output for fixed
levels of input provided. Thus Industrial engineering is concerned with bringing together
and effective utilisation of various resources to facilitate efficient production operation.
Effective utilisation of resources means people, material, information, money and
equipment are used in right way to meet the overall organisation objective. In fact
Industrial engineering deals with people who are involved in the production process
because people interacting production system effects the system from inside as well as
from outside. Ergonomics, job analysis, wage incentive planning, motivadon, time and
motion study, method study, etc. are areas of industrial engineering.
Industrial engineering also deals with consumer behaviour who determine the demand of
the product. Customer now desires right value of herhis money, therefore IE focuses on
Total Quality Management (TQM) and on continuous improvement on product and
process. Industrial engineering establishes an important link among design, operations,
control and decision making activities of organization. Some of the major activities that
come uhder Industrial engineering are :
(a) decision making
(b) designing the production system
(c) dealing with new technalogies
(d) making interpretation of data and reviewing previous data
(e) advising for improvement
(f) dealing with productivity improvement tools
(g) identifyirrg systemfaults .
(h) analysing job at micro-level 1

(i) motivating work force

) training the work force in methods.and motion study
(k) applying new technologies
(I) using operations research and qualitytools 4

(m) using Management Information System (MIS) qnd Information Technology

(IT) tools.
Industrial engineering plays a pivoial role in the country's drive towards higher standard
of living through rapid economic growth.
 SAQ 1 Introduction to
~ndustrialEngineering
(a) Define Industrial Engineering. What is its importance?
I
(b) Discuss the scope and obje f industrial engineering.
- ,%
- b

. .

1.3 HISTORY OF INDUSTRIAL ENGINEERING

History of industrial engineering dates back to industrial revolution and it has passed
through various phases of industrial growth to reach the present advanced and developed
stage. The most often quoted and acknowledge investigator that have lead to be
discipline of industrial engineering in present from was F. W. Taylor, d ~ tooko interest
in human aspects of production and productivities. Though Frederick W. Taylor is
named as father of scientific management and industrial engineering, there are many
others who contributed to the industrial engineering field before Taylor and then they got
associated with industrial engineering,
Adam Smith's concept of division of labour through his book The wealth of the nation,
in 1776 is important as it influenced the factory system.
James Watt, Arkuwright, Boultin Mathew and Robinson obtained a place in the history
of industrial engineering because of their progressive and scientific attitude towards the
improvements in the performance of machines and industries.
Period between 1 882-1 9 12 was the critical period in the history of industrial
engineering.
The important works during this period are :
(a) Factory system and owneiship - engineer and manager concept.
(b) Equal work, equal pay and incentive schemes.
(c) Schedllting and Gantt charts.
(d) Cost, control and accounting.
The modem industrial engineering techniques had their origin during the period between
1940 to 1946. Predetermined Time Standards (PMTS), value analysis and system
analysis are some of prominent works during this period ones. They were expanded,
refined and applied insubsequent years. Operation Research techniques has brought a
revolution and changed and expanded the scope of industrial enginpring activities. The
computers have added dimension to the industrial engineering activities.
Present State of Industrial Engineering
Today industrial engineering is not restricted to manufacturing activities, but
extends its role to service industries. The techniques exercised in the present state
of industrial engineering are :
-
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(a)
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(c) CPM and PERT,
(dli' Human EYrgineering (Ergonomics),
(e) System Analxsis, "
. r.

(f) Advance in Iftfonnatim Techpology and Computer Packages, and

I (g) Mathematical and Statistical Tools.
Industrial Engineering Inddstrial engineering has gained ah important position in m y uqpisation and it
is csntributing maximum towards increasing productivity and m i e n c y in
particular and Quality of Work Life (QWL) in general.

1.4 ULATIONSHIP BETMrEEN ?IMMWCtXH

MANAGEMENT AND IlUDUbTNAt
ENGINEERING
Production Management (PM) and Industrial Engineering (IE) are closely related with
each ather. Production management may be defined as planning, implementationand
control of broduction activities including the goods making system and preparation of
production conducted by an organization entity with defined performance objectives
subject to Modification according to ambient conditions and optimum situation.
Analytical methods in production management require Lrnowlcd~of science,
mathemati@, and to some extent engineering. However engineering prodiced by the
industrial $ngineer is only a part of the overall w o k of manogipg. Only in some areas
production management is synonymous with industrial engineering. Any title which
includes the term engineering is strictly limited to dealing with things do not include
people. But industrial engineering deals with system which is used by people and which
is for the people. Production management Md induotrial enginaering has one important
resemblande. Both are viewed as productive/serviet system whih is a part of whole
system. In this system if a component bils the entire system will face a failure.
Therefore both cannot be viewed in isolation.
However, the difference between two can be cited as bllows :
(a) The focus of IE is generally on the design, analysis, planning and control of
productive system, which includes both productionand setviccs. Production
management is more focused on the management of production system.
Industrial engineers are experts who pedornr thc role of staff fhction in the
organisation. Their role is to advise t b line managers. On mt other hand,
production managers arc line managers. It is, therefore, common that
industrial engineers do not operate the system they design. Production
managers are directly responsible for the shop floor operations of the
system.
SAQ 2
(a) How Industrial engineering is helpful in improving productivity?
(b) List the various activities perf'ed by an industrial engineer.
(c) What are similarities and differences between IE and PM?

AND MODERN I N W S T W ENGSNEERMG

In early dads, time study was only considend as i m p o m 8rm of IE. The area of
activities of IE have broadened with passing of time sRd inQIlttrkl development. Specific
fields that &e primarily related with manufacturing industry now associated with IE.
IE is taday tonsidered an important discipline far successful md profitable operation of
manufacturing firms. TraditibMll 1E is associs@d with f b l b w i q fmctions :
Method Engineering Introduction to
Industrial Engineering
This function involves operational analysis, motion study, material handling,
production planning, safety and standardization.
Work Measurement
It consists of time study, predetermined elemental time standards.
Control Determination
Production, inventory control, quality and cost come under this function.
Plant Location and Facility Layout
This function helps in identifying ideal location for a plant and in deciding layout
inside a plant.
Job Analysis
Job evaluation, merit rating, wage incentives, profit sharing are parts of this
function.
In modern industrial engineering, above functions are continued to be important tools
with broadened applications. Modern IE is today concerned about achieving
management goal primarily that of optimising the gains and minimising the risks of an
enterprise from technological forecasting to marketing the products. It also involves
following tools :
(a) Statistics
(b) Operations Research
(c) Network Analysis
(d) Ergonomics
(e) Value Engineering
(f) Management Information System
(g) Quality Management
Areas covered under modern IE as a result of availability of above tools include
distribution, transportation, military logistics, health, finance and service.
SAQ 3
(a) List functions associated with traditional industrial engineering.
(b) What are the tools exercised by modem industrial engineer to improve
productivity of production system?

1.6 TOOLS AND TECHNIQUES OF INDUSTRIAL

ENGINEERING
1E makes use of scientific tools and techniques in the design and analysis of complex
production system. In early period IE employed techniques like observations,
interchangeability of parts, specialisation of labour, job design and work standards,
motion study, method study, economic lot size, waiting line theory, statistical decision,
sampling, probability, quality control, inventory model, and project planning were
included later in the list of techniques of IE. Modern IE employs techniques like linear
programming, network analysis, dynamic programming, multi objective criteria decision
Industrial Engineering (c) System has got inputs which are processed into outputs.

(d) There are restrictions or constraints imposed on the system by the factors
which are internal to the system or external to the system.
The systems thinking or methodology is a wholistic approach which integrates the
activities of subsystem and elements and optimises effectiveness. A simple system
is shown in the Figure 1.1.

Processing Output

Feedback

Figure 1.1 : Representation of a Simple System

Surroundings (External to the System)

The systems approach consists of system analysis, system engineering and system
management. It is a powerful tool for solving large, complex problems involving
men and machines.
A key feature of the system approach is its emphasis on analysing the interrelationships
among various elements of the system. The system approach takes the wholistic and
integrated view of the problem and suggests solutions taking into consideration the
influence of elements on the performance of the system. Systems approach consists o f :
Systems Analysis
Systems analysis includes investigation of system objectives, selection of criteria
for evaluating alternative solutions, examination of the feasibility of proposed
solutions, evaluation of feasible solution and selection of the optimal solution.
Systems Engineering
It is a top level of engineering process associated with the development or
modification of the complex system. Systems engineering identifies and specified
the subsystem elements that will be assembled engineered, procured, developed,
tested and evaluated in accordance with a development plan.
Systems Management
Systems management includes the development of the procedures and the
organisational structure for planning, directing and controlling systems
engineering activities and operations throughout the life of the system.
Systems analysis consists of the following :
(a) Problem definition.
(b) Systems objectives.
(c) System boundaries.
(d) User requirements analysis.
(e) System effectiveness measures.
(0 Functional analysis.
(g) Constraint evaluation.
(h) Selection of feasible alternative.
(i) Evaluation of the feasible solution against prefixed criteria.
Cj) Selection of the best Alternative.
System Design Introduction to
Industrial Engineering
The system design is divided into two phases - preliminary and detailed design.
Methodology for Preliminary Design Consists of (As per Asimow)
Screening of design alternatives.
Development of mathematical model.
Sensitivity analysis.
Compatibility analysis.
Stability analysis.
Optimisation.
Projection into future.
Testing the design concept.
Simplification of design.
Methodology for Detailed Design
Preparation for design.
Establishing performance requirements for hardware and software.
Design Specifications preparation.
Design of elements and subsystems.
Design of parts.
Preparation of assembly drawings.
System integration.
Testing.
Redesign.
For managing the system effectively, the identification of checkpoints
(milestones) is necessary which can be used to monitor schedule, budget, and
technical performance. These milestones in addition to representing convenient
points for monitoring project status, should be chosen to provide decision points
for future course of action without affecting schedule and budget.
The major strength of the systems approach is that all the factors that influence by
system throughout its life from the conception stage is considered.
Systems Approach in Industrial Engineering
Industrial engineering, relies heavily on system approach in solving the problems.
Instead of analysing the probIem in isolation, at the elemental or subsystem level,
an integrated view of the problem is considered for suggesting the solution
keeping in mind the constraints imposed on the system from both inside and
outside the system and the factors which influence the system. Thus, this wholistic
approach helps to achieve the system optimisation instead of analysing part by
part which leads to sub-optimisation.

1.8 INDUSTRIAL ENGINEERING IN

SERVICE SECTOR
Modem industrial engineering is a broad discipline encompassing the analysis, design
and improvement of any and all productive elements of any enterprise.