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Introduction of Industrial Engineering

  1. Industrial Engineering Course Code: MEE308 Dr M Vijaya Kumar Associate Professor VIT University Vellore
  2. 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
  3. Broad Areas
  4. What we do?
  5. Significant Events in IE
  6. 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.
  7. Application areas of IE
  8. Communities in ISE • Institute of Industrial Engineers • International Association of Engineers
  9. 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
  10. 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.
  11. 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).
  12. 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
  13. 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
  14. 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:
  15. Solution 5 5 25  DaysPatient HoursTotal HPPD A 4 4 16  DaysPatient HoursTotal HPPDB Hours per patient day
  16. 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
  17. Productivity Wall? • Quality is difficult to measure, and its definition is ambiguous • The relationships between quantity of care provided and quality are often uncertain
  18. Many people confuse. . . The concepts of productivity, efficiency, and effectiveness.
  19. 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.)
  20.  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)
  21. 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)
  22. 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)
  23. References • WWW. GOOGLE.COM • • 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.