INDUSTRIAL ENGINEERING
MODULE 1
• Introduction to IE
- Branch of engineering that concerns the design,
development, improvement, implementation and
evaluation of integrated systems of people,
knowledge, equipment, energy, materials and
processes.
- Utilizes skills in mathematical, physics and sciences
and engineering skills
- Aims to eliminate waste of time, money, materials,
energy and resources
Evolution of IE
• Industrial revolution 1750
• With growth in industry management thinking
began
• Application of scientific methods of analysis,
experimentation and practical demonstration
began
CONTRIBUTORS
Sl. No. Contributor Contribution
1 Adam Smith Division of Labour (Thesis – “The Wealth of Nations”)
2 Charles W “On the economy of Machinery and Manufacturers”
Babbage
3 F W Taylor Concept of productivity
Focused on Planning ad organization of work
4 Henry R Towne Economic features & responsibilities of engineer
5 Frederick A Hasley Hasley premium plan of wage payment
6 Henry L Gantt Gantt Chart
7 Frank Gilberth & Work efficiency through Method Study
Lillian Gilberth
8 Ralph M Barnes Motion Study
9 L H C Tippett Work Sampling (Time study)
10 George Bernard Father of Linear Programming
Dantzig
11 Henry Ford Mass production concept
FUNCTIONS OF IE
1. Manufacturing process & Method Engineering
2. Plant Layout & Material Handling
3. Production Planning & Control
4. Storage & Inventory Control
5. Inspection & Quality Control
6. Management of organization
7. Industrial cost control
8. Wages & Incentives for workers
Sl. Roles of an Functions
No. Industrial Engineer
1 Advisor/Consultant Interpretation of data reviews etc.
2 Advocate/Activist Supports a process or approach
3 Analyst Exploring data for insight & characteristics
4 Boundary spanner Connects between industrial engineering & user
5 Motivator Gives a Boost & skill availability to group/individual
6 Decision Maker Chooses & prioritizes topics of concern
7 Designer/Planner Provides s solution specification
8 Expert Gives high level knowledge, skill & experience on a
particular topic
9 Coordinator/integra Negotiate and coordinate with others
tor
10 Innovator/Inventor Make or build a creative or advanced technology
11 Measure Acquire data and facts on prevailing conditions
12 Project manager Carryout administer and assess projects
13 Trainer/Educator Impart training to others
14 Data gatherer Collect data
FIELD OF APLLICATION OF IE
• Manufacturing Industry
• Construction & Transportation
• Farms
• Airlines
• Public utilities
• Hotels
• Govt. and Military operations
PRODUCTION SYSTEMS
• Process of conversion of transformation of
inputs(resources), into outputs (good &
services) using physical resources.
• Types
- Job Shop
- Batch
- Continuous
- Mass
PRODUCT DEVELOPMENT & RESEARCH
• Different stages of product planning &
development are:
1. Generation of ideas
2. Screening of ideas
3. Concept Development
4. Business analysis/market analysis
5. Product introduction
6. Product Life Cycle
DESIGN FUNCTION
• Stages of design
1. Conception
2. Acceptance
3. Execution
4. Translation
5. Pre-production
OBJECTIVES OF DESIGN
• Create goods/services with excellent
functional utility and sales appeal at an
acceptable cost and within a reasonable time
• High-quality, low-cost materials and methods
• Competitive products
MANUFACTURING vs PURCHASE
• The make or buy decision is the art of making
strategic choice between producing a product
internally or buying it externally.
• Taken by top level management
CRITERIA FOR
MAKING BUYING
• Finished product should be • Non availability of facilities
cheaper by the firm • Non availability of skilled
• Product requires patented labour
technology • Low demand for products
• Long term demand for • Existence of patent or other
product or item legal barriers
TECHNIQUES USED IN AIDING MAKE/BUY
DECISION
• Simple Cost Analysis
• Economic analysis
• Break-even analysis
PROTOTYPE
• Prototype is an original model, form or an
instance that serves as a basis for future models.
• Steps in prototyping
1. Design the prototype
2. Develop the prototype
3. Test the prototype
4. Review the prototype
5. Revise and Improve the prototype
TESTING
• Allows to view the prototype and to give their
opinions.
• Identify safety issues
• Adjustments or improvements can be done
• Finalise the product
• Failures can be identified
• Guarantee customer satisfaction
HUMAN FACTORS IN DESIGN
1. Sensing
2. Information Processing
3. Data Identification
4. Data interpretation
5. Decision Making
6. Data Transmission
7. Communication with Humans
8. Communication with Machines
VALUE ANALYSIS
• Value is an assessment of worth of goods or
services.
• Types of value
1. Cost Value
2. Exchange Value
3. Use Value
4. Esteem value
• Value analysis is a powerful cost preventive
technique
• Developed by Lawrence D Miles at General
Electricals (GE)
• Improves product value
• Offers high performing products at a minimal
cost
BENEFITS OF VALUE ENGINEERING
• Reduces operations cost by simplifying the procedures and
increasing procedural efficiency
• Improves quality management and resources efficiency
• Prevents over design of components
• Balances cost and performance
• Orients employees towards creative thinking
• Foster innovation and improve productivity
• Enhances customer satisfaction by determining exact need
and expectation of customers
• Focuses on standardisation of components
VALUE ANALYSIS & VALUE ENGINEERING
• VA is a remedial process used to analyze
existing products.
• VE uses same principles and many of the
techniques of VA and is used for new products
and hence is preventive process.
VA vs CONVENTIONAL COST REDUCTION
TECHNIQUES
• VA is function oriented whereas traditional
techniques concern post production stage.
• Traditional is cost centered while VA in
addition to cost reduction seeks to improve or
maintain quality, reliability, maintainability,
safety, performance and alluring features.
• Traditional methods an reduce cost by 10%
while VA can reduce upto 20% to 30%
STEPS/PHASES INVOLVED IN VA
1. Selection & Orientation
- Pareto analysis, Cause and effect, FMEA
- Brainstorming
- Benchmarking information where available or
practical to collect
2. Information
- Collection of facts
- Determination of costs
- Fixation of costs of specification & requirements
3. Functional Analysis
- Basic or primary function
- Secondary function
- FAST (Function Analysis System Technique)
- SWOT (Strength, Weakness, Opportunities,
Threats)
- QFD (Quality function deployment)
4. Creative alternatives
5. Analysis & Evaluation
6. Implementation & Monitoring
10 PRINCIPLES (COMMANDMENTS) of VA
1. Eliminate parts or components that do not
contribute to the value of the product.
2. Eliminate parts or components whose
functionality is not proportional to cost
3. Unnecessary features of the component or
finished product are not to be provided
4. If the part of required quality can be made of
cheaper and easily available material, then
accept the change
5. Use alternative processes or methods costing less
to make part of required quality.
6. Use standard parts wherever possible.
7. Use proper tooling and manufacturing methods
taking into consideration the quantities.
8. Component cost should be proportional to its use
or function.
9. Use the material, part best suited for the purpose.
10. If the part of required quality is available at
reasonable cost, then purchase it instead of
manufacturing in-house.
VA Terms
• Function – Any performance characteristics that
a product service accomplishes.
• Basic Function - performance characteristics that
a product service that is required to make it
perform.
• Secondary Function – An additional performance
characteristic
• Cost of Function – All costs directly associated
with the performance of a particular function
• Life Cycle cost – Total cost of an item’s
ownership including planning, design,
construction, operation, maintenance,
modification, replacement, demolition,
financing, taxes and disposal etc.
• Unnecessary costs – Costs not required for
performance of necessary functions.
• Value of function – Max value is achieved
when function is performed at lowest overall
cost.
• Function Analysis System Technique (FAST) –
Method for analysing, organising and graphically
displaying the irrelation of the basic and secondary
functions of a system, product, design, process,
procedure or facility.
• Value Analysis – Systematic appplication of
recognized techniques by multidisciplinary teams.
It identifies function of a product or service;
establishes a worth for that function; and provides
alternate ways to accomplish the necessary
function, reliability, at the lowest overall cost,
through use of creative techniques.
• Value Analysis Job Plan – Formal problem-solving
procedure used to carry out a value analysis study.
Key Points
Systematic & organised procedural processes
Creative methods to generate alternatives
Essential functional approach
Comparison of worth as opposed to Life-Cycle costs
Value based decision process.
Follows a very systematic and organised job plan.
Directs efforts towards max possible alternatives
through creativity techniques.
