MCN 111 : Introduction to P&I

Exposure to Industrial Engineering

Dr S G Deshmukh
Mechanical Engineering Department
Indian Institute of Technology Delhi
New Delhi 110016
14 Aug 2019
 Context
• Fierce Competition in Economy.
• Customers demands are rising.
• Challenge for industries to produce goods of right
quantity, quality , in time and at minimum cost.
• Internet is creating and destroying opportunities
• The electronic culture is invading business culture
• Short attention spans
• Depersonalized customer /Depersonalized
Management
• Executives in quandary

• Role of IE?
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 Definition by IIIE
Indian Institution of Industrial Engineering
www.iiie-india.com

"Industrial Engineering is concerned with the design,

improvement and installation of integrated systems of
men. materials and equipment.
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".

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Gamut of Industrial Engineering Activities

to design or to
improvement
determine the systems for the development to increase/maximize
productivity through
product physical distribution
requirements. of goods and of production
to design or to
the management of
people, methods of
services and to
determine the most planning
improvement
and
systems for the
business
organization, and
efficient plant develop wage and
locations. control
physical
distribution of
technology
salary
to goods and services administration
eliminate procedures
and to determine systems and job
the most efficient evaluation
worker programs
plant locations.
fatigue redesign and
to develop standardization
of manufacturing
design
methods for processes production
to planning and
increase/ handling and develop
control systems
maximize transporting management to coordinate
control systems activities and
efficiency
materials to aid in financial
planning and ensure product
cost analysis quality
 Simple perspective

Industrial Engineering deals

with the optimization of
systems and processes (in
given circumstances)
through
PEOPLE
• Challenge- working through people
• Examples :
– RDV organization
– Organization of hostel event
• Coordination
• Soft factors

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 Remarks..
The basic objective of industrial engineering is to :
▪ Enhance the productivity.
▪ Eliminate waste and non-value-added activities.
▪ Improve the effective utilization of resources.

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 What is Industrial Engineering?
• Mechanical Engineering- to engineer a mechanical
product or system.
• Electrical Engineering – to engineer an electrical product
or system.
• Same way Computer Engineering – to engineer a
computer or a system of networked computers.
• Industrial Engineering: various views :
– To engineer an industrial product or system (efficiently and effectively): for
manufactured goods or services, originally
– To engineer a product or system for industry, the military,
government, education, etc.
– Efficiency and Quality Engineering!!
Samsung
https://news.samsung.com/in/samsung-inaugurates-worlds-largest-mobile-factory-in-india

• Samsung Inaugurates
World’s Largest Mobile
Factory in India;
Honourable Prime Minister
Shri Narendra Modi Flags-
off ‘Make for the World’ on
9th July 2018.
• 68 million units /year to 120
million units/year by 2020
• All Samsung mobile phones, including
the flagship Galaxy S9, S9+ and Galaxy
Note8, are made at the Noida plant.9
Samsung Galaxy A30 model

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 Issues
• Location of manufacturing site
• Selection of vendors
• Quality control
• Manufacturing process and process control
• Training of workers
• Distribution channels
• Human issues- Motivation, team work,
leadership etc.
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 Issues.. contd
• Automation
• Human centered manufacturing
• Supply chain
• Sustainable manufacturing
• Samsung – a design & innovation powerhouse

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Dr Saha is alumnus of IIT Delhi
http://www.iitd.ac.in/content/industry-day-2018-interview-dr-kaushik-saha
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 Basic issues …
The basic ideas connected with the IE
PQR
Productivity,
Quality,
Responsiveness
These are to be addressed for Organizational
Excellence

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 Industrial
Engineering
 Who are Some Famous Industrial
Engineers?
• Henry Ford - Founder of Ford Motor Company, assembly
line pioneer
Joe Girardi - Manager, New York Yankees
Lee Iacocca - Former CEO of Chrysler
Tom Landry - Former Dallas Cowboys Head Coach
CEOs - Mike Duke (Wal-Mart);
Timothy Cook (Apple)
Michael Eskew (UPS);
John Forehand (Accenture);
Chad Holliday (DuPont); Dick Kovacevich (Wells Fargo);
William Swanson (Raytheon);
Edward Whitacre, Jr. (AT&T);
Yun Jong Yong (Samsung) 17
Almost every industry hires
industrial engineers
Aerospace &
Entertainment Military
Airplanes
Banking Forestry & Logging Mining Oil & Gas

Construction Insurance Retail

Materials
Consulting Shipbuilding
Manufacturing
Electronics State & central
Materials Testing
Assembly Government
Energy Medical Services Transportation
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 Industrial Engineering Approach
• In carrying out various activities, the industrial
engineer;
– Gathers and analyses facts.
– Prepares the alternative solutions taking into
consideration all the constraints both internal and
external.
– Selects the best solution for implementation.

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Industrial Engineering Approach (contd..)
• At problem identification/definition stage following steps must be
taken;
1- All the facts about the operation are collected and recorded using
various recording techniques like charts, diagrams or models.
2- Critical Examination of all facts by asking series of questions.
3- Alternative ways are found by techniques like brainstorming.
4- based upon the criteria fixed for evaluation, the best alternative is
selected.

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 What is Systems Engineering?

• To engineer a system, with efficiency and quality

• All Types of Systems:
– Aviation Systems, including Air Traffic Control Systems
– Telecommunication and Computer Systems
– Airline Reservation Systems
– Software and Database systems
– Highway Systems
– Manufacturing Systems, e.g., the Toyota Production System (TPS)
 Observations about Systems ..
▪ Components (including machines and people)
interact with each other to create the overall
behaviour of the system;
▪ The system being studied is always a subsystem of a
larger system and these interactions must also be
considered; and
▪ Systems include humans.

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Chandrayaan-2 Mission
launched on 22 July 2019
• ISRO
• Godrej
• L&T
• Ananth Technologies, MTAR Technologies,
Inox Technologies, Lakshmi Machine Works
Centum Avasarala and Karnataka Hybrid
Microdevices
• Godrej's contribution to the mission
includes critical equipment such as L110
engine and CE20 engine for the launcher
GSLV Mk III, thrusters for the orbiter and
lander, and components for the DSN
antenna
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 Salient IE attributes
• A team of more than 1000 scientists &
engineers
• Collaboration between Private & Public
sector
• An example of marvelous Project
Management
• A case in Systems view

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 Exercise
• Consider Indian Railways as a system
• Defend why is it a “system”?
• What are the “sub-systems” here?
• What are the components ?
• What could be the “objective”?
• Learning from this ?

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 Organizational Excellence
Excellence
Excellence is a quality which is unusually good and
so surpasses ordinary standards. It is also used as a
standard of performance as measured e.g. through
economic indicators.
the extent to which an organization achieves a set of
pre-defined targets that are unique to its mission.
These targets include both objective
(numerical) and subjective (judgmental)
indicators.
Excellence Drivers:
key dimensions of an organization’s
functioning that are critical to its
capacity to perform. Also called
domains of excellence (DOE).
Organizational Excellence
An agile, innovative organization that fulfills its mission through
leadership in state-of-the-art business practices
 Remarks..
• Today’s organization cannot assume that
excellence is automatic. Rather, excellence is
the systematic development, measurement, and
reinvention of organizational resources.
• Excellence is not perfection; rather, excellence is
the pursuit of perfection. This is the call for today
–to not accept the status quo, to ensure that
processes are still effective, and to implement
plans for improvement.
• Role of IE is to appreciated in this context..
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Domains of Excellence (DOE) :
They are key performance drivers - dimensions of organizational
capacity that enable the enterprise to Excel.

• DOE1: Customer value

• DOE2: Strategic Focus
• DOE3: Process Excellence
• DOE4: Talent Management
• DOE5: Knowledge
Management

Source: Karl Albrecht, Organizational performance: Meeting the Challenges

of the New Business Environment, 2011

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 DOE 1: Customer Value
What is it?
• Key cultural , contextual & operational focus
• Continuing feedback and tracking of customer expectations
• Synergy between “tech” & “touch”
• Masterful delivery through RESPONSIVENESS

Role of IE
• Understanding customer through Hand and Heart
• Empathy
• Quantitative Techniques,/Analytics

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 DOE 2: Strategic Focus
What is it?
• An ongoing “strategic dialogue”
• Continuous environmental scanning and evaluation
• Clear purpose, Clear driving values, priorities
• Linked to financial / economic results & PMS
• Issue of PRODUCTIVITY and performance measures
Role of IE
• Understanding the environment , thinking on
Vision/Mission/Action, Management by Objectives etc.
• Measurement of strategy efforts
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 DOE 3: Process Excellence
What is it?
• Appropriate organization structure
• Streamlined processes
• Processes empower performance
• Processes are always improving
• Issue of QUALIY

Role of IE
• Use of 7 QC tools
• Process Understanding
• Improvement focus/Kaizen
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 DOE 4: Talent Management
What is it?
• Work culture which attracts talented people
• Competitive compensation
• Management of “fit” and fitness
• Developmental opportunities
• Systems which support career progression

Role of IE
• Human Resource Management
• Incentivization/Motivational Elements
• Work Design
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DOE 5: Knowledge Management
What is it?
A culture of values & knowledge driven organization
A culture of collaboration & creativity
Effective use of IT
IT Infrastructure for social networking/social media
Development & maintenance of SOPs

Role of IE
Simplify, Standardize and Synergize
Documentation
Systems & Procedures
Leveraging Technology
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 New View of the Business
Old View
A business is just a collection of assets.
It can be bought, sold, subdivided.
There’s one “real” bottom line.
Success is defined financially.
Customers are sources of revenue.
Employees are interchangeable
“resources.”
Org’n is an apparatus; a set of processes.
It’s “owned” by management.
Performance is caused by management.
Emerging View
A business is a living enterprise.
It’s more than the sum of its parts.
There are multiple bottom lines (3 P’s).
Success is multi-dimensional.
Customers are solution seekers.
Employees are agents / performers.
Org’n is a complex, adaptive organic
system.
It has multiple stakeholders.
Performance is caused by synergy.
 New View of Customers
Old View Emerging View

Customers as standard economic units Customers as unique, solution seekers

Mostly standardized /disposable /
interchangeable
We push products / services to them
They adapt to our way of business
Mass Production
Transaction based
Can be “appreciating assets” & ambassadors
We focus on delivering value
Our systems reflect their worlds
Mass customization
Relationship based
 New View of Employees
Old View Emerging View

Interchangeable inanimate Units Unique Performers having their identity

Human “resources” Complex motivations and team dynamics
Transient, disposable High expectations and transient satisfaction
Treat them like machine Treat them like stakeholders
Just as economic entity view Relationship building view
Role of IE..
Achieve excellence in each of these DOE
• Through Methods Improvement
• By designing appropriate Workplace
• By incentivizing employees at the same time
taking care of Customers and addressing the
concerns of
Productivity ,Quality, & Responsiveness

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IE facilitates to better the world…
– improve quality of products and services
– minimize costs
– improve security
– reduce risk of injury
– minimize delays
– improve accommodation for the disabled
– improve quality of work life of employees
– improve service to customers
– reduce human errors
– improve on-time performance
 Industrial and Systems Engineering
(I&SE) Design
• Industrial and systems engineers (I&SEs) design systems at two levels.

– The first level is called human activity systems and is

concerned with the physical workplace at which human
activity occurs.

– The second level is called management control systems

and is concerned with procedures for planning,
measuring, and controlling all activities within the
organization.

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 Management Control System
The management control system of an organization consists of the following elements that ar
designed by I&SEs:
• Management planning system.
• Forecasting procedures, Budgeting and economic analyses.
• Wage and salary plans, Incentive plans and other employee relations systems.
• Recruiting, training, and placement of employees.
• Materials requirement planning., Inventory control procedures.
• Production scheduling, Dispatching (sending out)
• Progress and status reporting. ,Corrective action procedures.
• Overall information system.
• Quality control system. Cost control and reduction
• Resource allocation.
• Organization design.
• Decision support systems.

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 Production Operations
A. Related to Product or Service:

1. Analyze a proposed product or service.

– Determine whether it would be profitable, at various production volumes.
– Is it compatible (well-suited) with the existing product line?
– Assess the manufacturability of the design, as prepared by the engineering
design department.
– Determine the best (most cost-effective) material utilization.

2. Constantly attempt to improve existing products or services.

3. Perform analyses relating to distribution of the product or delivery of the

service.

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 Production Operations (contd.)
B. Related to Process of manufacturing the product or producing the
service:
– Determine the best process and method of manufacture.
– Select equipment; determine degree of automation, use of robots, and so on.
– Balance assembly lines.
– Determine the best material flow and material handling procedures and
systems.
C. Related to Facilities:
– Determine the best layout of equipment.
– Determine the appropriate storage facilities for raw materials; work in process,
and finished goods inventory.
– Determine appropriate preventive maintenance systems and procedures.
– Provide for appropriate inspection and test facilities.
– Provide sufficient utilities for the operation.
– Provide for security and emergency services. 42
 Production Operations (contd.)
D. Related to Work Methods and Standards:
– Perform work measurement studies; establish time standards and update them
as required.
– Perform methods of improvement studies.
– Perform value engineering analyses, eliminating cost and waste to the
maximum level possible.

E. Related to Production planning and control:

– Forecast the level of activity. (How many units will be sold)?
– Analyze the capacity and resource constraints.
– Perform operations planning:
– Perform inventory analysis:
– Perform materials requirement planning (MRP)
– Perform operations scheduling:
– Design the quality control system and inspection procedures.
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– Design systems and procedures for shop floor control
 Management Systems
A. Related to Information Systems:
• Determine management information requirements:
– Identify the decisions that are made by managers at all levels; specify timing of
each decision.
– Determine the specific data/information needed for each decision.
– Identify the sources of each data element.
– Determine the preferred form of data.
• Design the data base to support the information system:
– Specify input formats from data sources.
• Design the management reports that will be produced:
• Perform data analyses, as required.
• Provide feedback to all levels of the organization.
• Develop and implement decision support systems.
• Analyze the requirements for data communications and computer networks.

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B. Policies and Procedures:
• Perform studies relative to organizational analysis and design.
• Perform analyses of various functional groupings, recommend improvements to
top management.
• Develop and maintain policy manuals.
• Develop and maintain current procedures relative to all management practices and
systems.

C. Performance Measurement:
• Design meaningful performance measures for the key results areas of each
organizational unit.
• Identify the “critical success factors” or measures of value for each unit.
• Develop methods and systems for analyzing operating data of all units and
interpreting the results.
• Specify corrective action procedures.
• Design reports for all levels of management.

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 In summary..

• Imperatives for IE
• Basic functions expected from IE
• IE and Systems
• Role in new context
• Domains of excellence
• ISE and business

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deshmukh.sg@gmail.com

Thank you
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 Exercise
• Take a simple context of ‘Hostel”
• Understand this as a “system”
• What are the objectives here?
• What type of management controls can we
visualize?
• Define the management control system

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