Chapter 1 - Introduction

An-Najah National University
Faculty of Engineering & IT

Industrial Engineering Department
Course Name:
Introduction to Industrial Engineering
Course #:
10631202
Second Semester 2017/2018
Prepared by: Eng. Tamer Haddad
Instructor: Eng. Tamer Haddad 1
Chapter One
Introduction
Instructor: Eng. Tamer Haddad

Second Semester 2017/2018 2
Background: Why IE?
• Fierce Competition in Economy.
• Customers demands are rising.
• Challenge for industries to produce goods of right
quantity, quality , in time and at minimum cost.
• Industrial Engineering (IE) plays a pivotal role in
meeting these challenges.
• We have various techniques in Industrial
Engineering to analyse and improve the work
methods, to eliminate waste, proper allocation and
utilization of resources.
1.1 Definitions & Examples
1.1.1 Engineering:
• The Merriam-Webster dictionary defines engineering as
the design and creation of large structures such as roads
and bridges or new products or systems by using
scientific methods.
• Engineering design is a process of translation of

requirements, specifications, and needs into a language
understood by the people responsible for making the new
product, service, facility, or system.
1.1.2 Industrial Engineering:
• IE deals with the design, improvement, and
installation of integrated systems (as of people,
materials, and energy) in the industry.
• Modern IE is concerned with the design,
management, and control of operational processes.
• Required Knowledge: physics, mathematics,

computing, and statistics with tools for incorporating
the human factor, ergonomics, sociology, and
psychology.
1.1.3 Industrial Engineers:
• IEs design organizational processes and perform
projects and ongoing activities that may involve
facilities, products, and systems to supply products of
services.
• Industrial engineers often focus on processes that
take into account the human factor.
• An industrial engineer is also involved in

determining how to best utilize the resources of the
organization.
1.1.3 Industrial Engineers:
• An industrial engineer is also involved in
determining how to best utilize the resources of the
organization.
• Industrial engineers translate the goals of the
organization, the constraints imposed, and the
uncertainty, to find the best solutions for the
organization.
• A relatively new area of industrial engineering is the
design and implementation of information systems
that supports processes. (ERP, SCM)
1.1.4 Production/Service Systems:
• Organizations use systems to perform their operations.
• System: a collection of resources such as people,
computers, information, machinery, and facilities
working to achieve a common goal.

1.1.5 What Do Industrial Engineers Do?
• Industrial engineers are involved in designing
organizational processes, performing projects and
ongoing activities, and planning their operations.
• Design of production and service systems,
• Design and implementation of processes,
• Production management,
• Design of supply chains,
• Planning and managing supply-chains operations,
• Project management,
• Economics analysis,
• Quality control, and
• Design and operations of information systems.

Industrial Engineering Definition
American Institute of Industrial Engineers (AIIE)
defines Industrial Engineering as follows:
• Industrial Engineering is concerned with the

design, improvement and installation of
integrated system of men, materials and
equipment. It draws upon specialized
knowledge and skills in the mathematical,
physical sciences together with the principles
and methods of engineering analysis and design
to specify, predict and evaluate the results to be
obtained from such system.

1.1.6 Tools Used by the Industrial Engineer:
 Understanding “Engineering Language”: drawings,
specifications, etc.
 Understanding the physical processes, knowledge of
the basic laws of physics.
 Knowledge of economics and financial management.
 Understanding the mathematical and statistical
models.
 Knowledge of human resource management.
 Knowledge of computerized information systems.
1.2 Models
• To understand and analyze but also be sufficiently a
representative of the real problem so that, its solution
can be implemented successfully on the real problem.
(Mathematical, Conceptual, statistical or stochastic,
simulation)

1.4 Historical Overview
1.4.1 Industrial Revolution: 18th Century:
• Two factors: the introduction of mechanical energy
(steam engine 1764), and the transfer from small
workshops to factories)
1776 - Adam Smith: the economic benefits of labor division.
1798 – Eli Whitney: the idea of standard product parts (the

basis of the modern mass production system) for the US
government muskets.

1.4.2 New Development in the Early 20th
Century:
1911 – Fredrick Taylor: Published “the scientific
management theory”
• Improving productivity through more efficient employees.

• The management should define the desired output, train
and monitor the employees.
• Quantitative measurements of working time, material, and
resources to minimize waste.
• The importance of proper production planning and work
standards.
• Frank and Lillian Gilbert developed the method of
predicting tasks time
Century:
1911 – Fredrick Taylor: Published “the scientific
management theory”
• Time and motion measurements (MTM) was developed by

Westinghouse Corporation.

Century:
1913 – Henry Ford: developed the assembly line.
• Bringing the division of labor and work standardization to

perfection.
• Car assembly (From 12.5 hours to 93 min)

Century:
1914 – Henry Gantt: Gantt Chart.

Century:
1917 – F. W. Harris: developed the an optimization model
for determining batch sizes for management and control of
inventories.
1927 – 1930 Elton Mayo: studied psychological and
sociological factors impacting the efficiency of a group of
workers  focus on human factors.
World War II: Operations research methodologies was

developed (solving mathematical and statistical models).
These models are extended to public and private sectors)

Century:
1950s: developed techniques for project planning and
scheduling; project evaluation and review technique (PERT)
and critical path method (CPM).
1970s and early 1980s: Industrial engineers started to use

computers and software to solve problems. (for example MRP
in production scheduling and procurement planning)
After World War II in Japan: Quality of products (Edward

Deming and Joseph Juran) and Total Quality Management
TQM (from design  production  supply)

Century:
In U.S. 1987: Malcolm Baldrige National Quality
Improvement Award. It became the ISO-9000 family
standards.
A decade after World War II in Japan: Toyota Production

System (TPS) is based on maximizing value to customers
while minimizing waste)
Techniques: inventory management and production

scheduling under the title of Just-in-Time (JIT).

Century:
• Significant developments in the use of computers in
design, planning, manufacturing, and production
management. (CAD, CAM, FMS)
In recent years: Globalization led to the development of

business process reengineering (BPR) to change
organizational management practices.

Century:
• In the last century, organization began using ERP

Century:
• The effort is now on creating value for customer while
minimizing costs.
• The purpose of the industrial engineer is to bring the waste

to a minimum and to build manufacturing and service
systems that produce maximum value and minimal waste.
• In the last years of the 20th century: Networks and

Internet facilitate direct contact between the supplier and
customer (E-business)

Century:
• The integration of the organization with its business
environment  the development of information
management systems. (e.g. ERP, CRM,… etc).
• Supply Chain Management (SCM) development.

Century:
• The large amount of data (big data) being generated and
the need to analyze it, has led to the rapid development of
the field of data mining (DM) as well as the transformation
of operations research (OR).

1.4 Impact of Globalization on the
Industrial Engineering Profession

1.6 Industrial Engineering & Systems
• Industrial engineers design and manage production and
service systems.
• The boundary of the system and the boundary of

subsystems is an important issue and two extreme
approaches exist with respect to this issue.
1) Open System
- Different units work as a team to achieve common organizational
goals.
2) Closed System:
- No direct relationship with customers and suppliers.
- May lead to local solutions that are inadequate for the whole
system
1.7 Industrial Engineering & Process Design
• The Industrial engineers design and implement processes
in organizations.
• Although there is a large variety of processes, it is common

to use Hammer and Champy (1993) five “basic processes,”
which is generally found in most organizations:
1) The development process: new product/service idea to

the design/prototype.
2) Preparation of infrastructure: from prototype to
successful completion and testing of the facility.
3) Sales: from market research to customer orders.
4) Delivery: from the order to the delivery and payment
5) Service: from service request to providing it with
satisfaction
1.7 Industrial Engineering & Process Design
• Methods have been developed to support the planning of
processes aimed at maximizing the value received by the
customer by mapping the value chain.
• Industrial engineers plan the processes in the organization

to achieve organizational goals and customer satisfaction.
• This role requires a thorough understanding of the

organization and its environment, and, accordingly
cooperating and collaborating with other units such as:
(Marketing, Purchasing, Engineering, Finance, and
Production)


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An-Najah National University

Faculty of Engineering & IT

Instructor: Eng. Tamer Haddad

• Engineering design is a process of translation of

• Required Knowledge: physics, mathematics,

• An industrial engineer is also involved in

Instructor: Eng. Tamer Haddad 8

Instructor: Eng. Tamer Haddad 9

• Industrial Engineering is concerned with the

Instructor: Eng. Tamer Haddad 10

Instructor: Eng. Tamer Haddad 12

1798 – Eli Whitney: the idea of standard product parts (the

Instructor: Eng. Tamer Haddad 13

• Improving productivity through more efficient employees.

• Time and motion measurements (MTM) was developed by

Instructor: Eng. Tamer Haddad 15

• Bringing the division of labor and work standardization to

Instructor: Eng. Tamer Haddad 16

Instructor: Eng. Tamer Haddad 17

World War II: Operations research methodologies was

Instructor: Eng. Tamer Haddad 18

1970s and early 1980s: Industrial engineers started to use

After World War II in Japan: Quality of products (Edward

Instructor: Eng. Tamer Haddad 19

A decade after World War II in Japan: Toyota Production

Techniques: inventory management and production

Instructor: Eng. Tamer Haddad 20

In recent years: Globalization led to the development of

Instructor: Eng. Tamer Haddad 21

Instructor: Eng. Tamer Haddad 22

• The purpose of the industrial engineer is to bring the waste

• In the last years of the 20th century: Networks and

Instructor: Eng. Tamer Haddad 23

• Supply Chain Management (SCM) development.

Instructor: Eng. Tamer Haddad 24

Instructor: Eng. Tamer Haddad 25

Instructor: Eng. Tamer Haddad 26

• The boundary of the system and the boundary of

• Although there is a large variety of processes, it is common

1) The development process: new product/service idea to

• Industrial engineers plan the processes in the organization

• This role requires a thorough understanding of the

Instructor: Eng. Tamer Haddad 29

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