Industrial Engineering
Course Code: MEE308
Dr M Vijaya Kumar
Associate Professor
VIT University Vellore

Definition
• Industrial and systems 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 systems.
--- IISE

Broad Areas

What we do?

Significant Events in IE

Significant Events in IE
• Division of labor (Smith, 1776)
• Standardized parts (Whitney, 1800)
• Scientific management (Taylor, 1881)
• Coordinated assembly line (Ford 1913)
• Gantt charts (Gantt, 1916)
• Motion study (the Gilbreths, 1922)
• Quality control (Shewhart, 1924)
• CPM/PERT (Dupont, 1957)
• MRP (Orlicky, 1960)
• CAD
• Flexible manufacturing systems (FMS)
• Computer integrated manufacturing (CIM)
© 1995 Corel Corp.
© 1995 Corel Corp.
© 1995 Corel Corp.
© 1995
Corel Corp.

Application areas of IE

Communities in ISE
• Institute of Industrial Engineers
• International Association of Engineers

Some Journals of ISE/IIE
• International Journal for Production Research (Taylor & Francis)
• Internation Journal of Systems Science (Taylor & Francis),
• Journal of Intelligent Manufacturing (Springer),
• IEEE Transactions on Systems, Man, and Cybernetics: Systems
• Neuro Computing (Taylor and Francis),
• Journal of Decision Support System
• Sadhana- Acedemy Proceedings in Engineering Sciences (Springer)
• Journal of Manufacturing Systems (ELSEVIER)
• Soft Computing, Springer.
• Journal of Computational & Applied Research in Mechanical Engineering (JCARME)
• Production planning and control
• International Journal of Advanced Manufacturing Technology

Productivity
Very simply,
Productivity = Output
Input
For any type of organization
Definition: Productivity is the relationship between the outputs
generated from a system and the inputs that are used to create those
outputs.

12
Basic Definitions of Productivity Measure
Partial Productivity is the ratio of output to one class of input.
Labour productivity = output / labour input
Total-factor Productivity is the ratio of net output to sum of associated labour and captial (factor) inputs.
total-factor productivity = net output / (labour and capital input)
Total Productivity is the ratio of total output to the sum of all input factors.
Total productivity = total output / total input
Partial Productivity Measure
Total-factor Productivity Measure
Total Productivity Measure
Both the output and input(s) are expressed in real or physical terms by being reduced to constant rupees of a reference
period (base period).

Example for productivity measure
For a company XYZ, the total inputs and outputs have been converted in to money value and are
given below. calculate total productivity and partial productivity for different categories of inputs.
• Material input= Rs 20,000
• Human input= Rs 30,000
• Energy input= Rs 10,000
• Capital input= Rs 3,00,000
• Miscellaneous input= Rs 50,000
• Total output = Rs 5,00,000

Total productivity = total output/ total input
= 5,00,000/4,10,000 =1.219
Partial productivities
Material productivity = total output/ material input
= 5,00,000/20,000 =25
Human productivity= total output/human input
= 5,00,000/30,000=16.66
Energy productivity = total output/energy input
= 5,00,000/10,000=50

Chapter 9: Quantitatve Methods in Health
Care Management Yasar A. Ozcan
Example
Nurses in Unit A worked collectively a total of 25 hours to treat a patient who stayed 5 days, and
nurses in Unit B worked a total of 16 hours to treat a patient who stayed 4 days. Calculate
which of the two similar hospital nursing units is more productive.
First, define the inputs and the outputs for the analysis. Is the proper measure of inputs the number of
nurses or of hours worked? In this case the definition of the input would be total nursing hours. When the
total number of nursing hours worked per nurse is used as the input measure, then the productivity
measures for the two units are:
Solution:

Solution
5
5
25

DaysPatient
HoursTotal
HPPD A
4
4
16

DaysPatient
HoursTotal
HPPDB
Hours per patient day

COMMON MISUSE OF THE TERM PRODUCTIVITY
XYZ electronic company produced 10000 calculators by employing 50 people at 8 hours/day for 25 days.
Production = 10000 calculators
Productivity (of labour) = output / labour input
= 10,000/ (50x8x25=10,000)
= 1 calculator per man-hours
This company increased its production to 12000 calculators by hiring 10 additional workers at 8 hours/day
for 25 days.
Production = 12000 calculators
Productivity (of labour) = 1 calculator per man-hours
Production is concerned with the activity of producing goods and/or services.
An increased production does not necessarily mean increased productivity

Productivity Wall?
• Quality is difficult to measure, and its definition
is ambiguous
• The relationships between quantity of care
provided and quality are often uncertain

Many people confuse. . .
The concepts of productivity, efficiency, and
effectiveness.

Efficiency
• Measures the resources expected to be consumed to the resources actually consumed.
• Hence, it focuses on the input side of the system. (To what degree did the system
utilize the “right” things.)
Effectiveness
• Measures what the system sets out to accomplish (objective) with what was actually
accomplished; plan vs. actual
• Hence, effectiveness is an output measure. (Is the output “right” - right quality, right
quantity, on time, etc.)

 Standardization
 Technology
 Use of Internet, fax machines, e-mail, computerized billing, software
 Searching for lost or misplaced items
 Scrap rates
 Labor turnover, layoffs, new workers
 Safety
 Bottlenecks
Factors Affecting Productivity (1 of 3)

Methods
Design of the workspace
Incentive plans that reward productivity
Capacity utilization
Location
Layout
Inventory
Scheduling
Methods Quality
Technology Management
Factors Affecting Productivity (2 of 3)

Shortage of IT workers and other technical workers
Equipment breakdowns
Part and material shortages
Inadequate investment in training & education of the employees
Factors Affecting Productivity (3 of 3)

References
• WWW. GOOGLE.COM
• http://www.iienet2.org
• Buffa E.S., (2009), Modern Production / Operational Management,
John Wiley & Sons.
• Nigel Slack, Stuart Chambers, Robert Johnston., (2010)Operation
Management, Pearson
• R. Danreid & Sanders, (2009), Operations Management, John Wiley &
Sons.
• Panneerselvam. R. (2006), Production/Operations Management,
Prentice Hall of India Pvt Ltd.