About The Industrial Engineering

Industrial Engineering Problems and
the Solution Methods

Abdul Hakim Halim
Manufacturing Systems Research Group
Industrial Engineering Department
Industrial Technology Faculty
Institut Teknologi Bandung
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PRODUCTION PLANNING AND CONTROL: ISSUES AND RESEARCH TOPICS
AUGUST 2021 – MARCH 2022
Scientists investigate that which already is;
Engineers create that which has never been
(Albert Einstein, 1879 – 1955)
(http://www.searchquotes.com/search/Industrial_Engineering/,
accessed 16 Februari 2016)
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Introduction(1)
• Robert Henry Thurston (The first President of ASME), in his inauguration
speech in 1880, stated that engineers should understand the relationship
between engineering design and production with cost accounting to
calculate production and life cycle costs of engineering products
• In 1870 – 1880, many critics occurred on factory workers working with
their owned equipment and methods. In the era, Taylor started introducing
systematic management methods and discussed at meetings held by ASME
• In 1901, James Newton Gunn, in his article, proposed a need to establish a
new profession like electrical engineering and mechanical engineering. He
called the new profession production or industrial engineering (Emerson
and Naehring [1988])
• F. W. Taylor (1856 – 1915) published “The principle of scientific
management,” and F. B. Gilbreth (1868 – 1924) published “Motion Study”
(1911)
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Introduction(2)
• In 1908, Hugo Diemer proposed to establish a Department of
Industrial Engineering at Penn State University, and in 1909 the
department was formally established (Emerson and Naehring [1988])
• In 1958, Prof. Matthias Aroef started lectures on the Industrial
Engineering topics at the concentration of Production Engineering,
the Department of Mechanical Engineering, ITB, such as Cost
Accounting, Engineering Economy, Statistics, and Enterprise
Management
• The Department of Industrial Engineering at ITB was formally
established in 1971
• Industrial Engineering is not a new profession
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James Newton
The Systematics of the presentation Gunn, 1901
System and the Industrial or Emerson
Engineering “Industrial” and
performance production Naehring
{1988]
Industrial
Engineering Individual Manufacturing
Formal AIIE, 1955

Definition
IE Problems
Concise IE
and solution
Definition Education
method
What does
an IE do? Integrated System
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The basic theory of system(1)
• System (Wasson [2016]):
• “An integrated set of interoperable elements or entities, each with specified
and bounded capabilities, configured in various combinations that enable
specific behaviors to emerge for Command and Control (C2) by Users to
achieve performance-based mission outcomes in a prescribed operating
environment with a probability of success.”
• System (Turner et al. [1993]):
• “A set of components which are related by some form of interaction, and
which act together to achieve some objective or purpose
• The system has included the meaning of integrated. Therefore, the
term of integrated with the integrated system is redundant. Maybe
this is for emphasizing
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• Keywords for the meaning of system:
• Objective/purpose, output, outcome
• Subsystems (elements of the system)
• Interaction (interoperable)
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Surrounding environment Systems X and Y

are open
Surrounding systems, but
element system Z is a
closed system
System Y
Surrounding system
System X
Boundary Boundary of
System Z
of System X System Z
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• Open-loop system (OLS)
Input Transformation Output

process
• Transformation process is an activity to convert the input to output

• The characteristics of OLS (Turner et al. [1993]):
• Not aware of its own performance
• Past action has no influence on future action
• No control mechanism
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• Closed-loop system (CLS) (Turner et al. [1993]):
Input Transformation Output

Process This is called
an IPOF system
Feedback
• CLS
• Related to system performances
• The result of past action influences future action
• Included the control mechanism: to compare the output to input
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• Efficiency, effectiveness and productivity have the same formulation
but they emphasize different focuses, respectively
Efficiency and
Output effectiveness are
Efficiency Doing things right prerequisites for
Input productivity
Output
Effectiveness Doing the right thing
Input
Output
Productivity Doing the right thing right
Input
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• Note that efficiency and effectiveness are not always inline
• If a system is efficient, it does not mean that the system must be effective.
• If a system is effective, it does not mean that the system must be efficient
Efficiency
Low High
Low Doing the wrong things in Doing the wrong things in
the wrong way the right way
Effectiveness
High Doing the right things in Doing the right things in the
the wrong way right way
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Improvement
Output
Constant Increasing Decreasing
Effective
Constant No added value Not applicable
(reengineering)
Growth (input
Input Increasing Not applicable Not applicable
increases slower)
Shrinking (input
Decreasing Efficient Productive
decreases faster)
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• The ratio of output to input also works for financial performances:
• Return on investment
• Return on equity
• Benefit cost ratio
• Return on asset
• Internal rate of return
• etc
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Engineering(1)
• ABET (Accreditation Board for Engineering and Technology) defined
engineering as:
• The profession in which a knowledge of the mathematical and natural
sciences gained by study, experience, and practice is applied with judgment to
develop ways to utilize, economically, the materials and forces of nature for
the benefit of mankind
• The definition of Industrial Engineering:
“ … 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 …”
(IISE, 2016)
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Engineering(2)
• Engineering field of specialization (Wright, 2002):
• Electrical Engineering
• Computer Engineering
• Mechanical Engineering
• Civil Engineering
• Chemical Engineering
• Industrial Engineering
• Aerospace Engineering
• Materials Engineering, other branches of engineering
• Industrial engineering is a profession
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Engineering(4)
• The qualification of a profession:
• Body of knowledge
• Education, training, and preparation to get into the profession, and
continuous learning
• Performance standard and ethical rules
• Everyone in the profession understands the responsibility and tasks
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The definition of Industrial Engineering(1)
• AIIE, 1955:
• Industrial engineering is concerned with design, improvement, and installation of
integrated systems of men, materials and equipment. Industrial engineering 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
• AIIE, 1960:
• Industrial engineering is concerned with design, improvement, and installation of
integrated systems of men, materials, 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
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• IISE, 2016:
• Industrial and systems engineering is concerned with 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
• No difference from the previous definitions except the addition of
terms of system, the change of men to people and the addition of
information
• In 65 years, the definitions have not changed except in the
subsystems or components of the integrated system
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Knowledge/
skill Ability Object Output
• Mathematics • Design
• improvement
Integrated
• Physics • Installation systems of
• Social science people,
• Principles and materials, The results
methods of information,
engineering • Specify equipment, and
analysis/design • Predict energy
• Evaluate
dynamic
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• A definition should explain what Industrial Engineers do
• The official definition of IE is too long so that it is difficult to
understand what Industrial Engineers do → this could be the reason
there many different interpretations
• We may reduce the official definition to understand what Industrial
Engineering is easily and concisely
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• Industrial and systems engineering is concerned with design, improvement,
and installation of integrated systems of people, materials,
s information,
equipment, and energy. It draws upon specialized knowledge and skill in the
mathematical, physical, and social science 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, 2016)
→ The components of an integrated system are changing
→ Knowledge and skill are also developing
→ Design, improvement, and installation processes are conducted
thru the activities of specifying, predicting, and evaluating
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• The reduced definition
• Industrial (and system) engineering is concerned with design, improvement,
and installation of the optimal “methods” for integrating people, material,
information, equipment, and energy
• Industrial (and system) engineering is concerned with optimized design,
improvement, and installation of integrated systems
• The keyword of Industrial Engineering:
1. Design, improvement and or installation
2. Integrated systems
3. “Optimized” alternatives/tradeoffs
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optimized design,
improvement, and
installation of
Integrated integrated systems
System
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• (1.a.) Engineering design (menurut ABET):
• Engineering design is the process of devising a system, component, or
process to meet desired needs
• It is a decision-making process (often iterative), in which the basic science
and mathematics and engineering sciences are applied to convert
resources optimally to meet a stated objective.
• Among the fundamental elements of the design process are the
establishment of objectives and criteria, synthesis, analysis, construction,
testing and evaluation → “to specify, predict, and evaluate the results
to be obtained from such systems (IISE)”
• (1.b.) Improvement:
• PDCA means there is no best way but always a better way
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Objectives
Enhancement
achieved
Plan Do
Objectives
not Correction
achieved
Check Action
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• (1.c.) Install: processes or activities to make the results of
design/improvement processes ready to be implemented
→We should identify potential problems that may occur and their respective
solutions
→“Among the fundamental elements of the design process are the establishment
of objectives and criteria, synthesis, analysis, construction, testing and
evaluation”
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• (2) Integrated system consists of:
• People
• Materials
• Information
• Equipment, and
• Energy
• …
• … etc
• →Note: Integrated systems could be any systems: concrete systems,
service systems, profit/nonprofit oriented systems. An integrated
system works for any systems
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• (3) Optimization
• The optimization concept can be implemented in the broad contexts, not only
relates to the mathematical contexts → there are trade-offs among solution
alternatives so that we should choose the best solution
• Optimization-based modeling
• Model is a simplification of the real world thru applying assumptions (refers to reference
models)
• Objective function → efficiency, effectiveness, and productivity
• Constraints (resource, time, …)
• Feasible solutions
• The optimal solution is the best solution among feasible solutions
• Verification and validation processes
• Solution methods
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• System thinking is a system approach
• Holistic
• Interdisciplinary
• Integrative, optimal interaction among subsystems to obtain value-added
• System approach/thinking (Ackoff [1973]):
"A system is more than the sum of its parts; it is an indivisible whole. It loses its
essential properties when it is taken apart. The elements of a system may
themselves be systems, and every system may be part of a larger system."
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Industrial Engineering education process(1)
• To teach about the system approach to students who just graduated
from high school is not an easy task
• We need a learning platform: Manufacturing Systems
• The reasons for choosing a manufacturing system as a learning
platform
• Historical background
• A manufacturing system has complete subsystems
• A manufacturing system is a concrete system
• A manufacturing system is an important sector
• A manufacturing system is omnipresent
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• Note that a manufacturing system is only a learning platform.
Therefore, the graduates do not have to work for the manufacturing
system, but any system, either financial systems, airlines, hospitals,
construction industries or any other system
• The graduates could benchmark, or make an analogy of any chosen
system to the manufacturing system
Manufacturing
Other systems
system Analogy
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These documents represent a repository of
essential information for ISE and is made up
of knowledge areas representing a
taxonomy of relevant industrial and systems
engineering concepts. The Industrial and
Systems Engineering Body of Knowledge
(ISEBoK) is composed of fourteen knowledge
areas. Each knowledge area is represented
by an outline that defines what needs to be
known to achieve a mastery in the field of
ISE. A list of references is included in each
knowledge area providing the reader with a
resource to the requisite detail necessary to
obtain a mastery of the areas provided in the
ISEBoK
No. 13 and 14 are not considered as related topics anymore (2020)
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Industrial
Engineering
Discipline
Manufacturing system
https://upload.wikimedia.org/wikipedia/commons/b/b6/Factory_1b.svg
Traditional manufacturing Smart manufacturing

34
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Manufacturing vs. production systems(1)
• Production (in 1483): producere (Latin) → making a new thing
• Manufacturing (in 1622): manu factum (Latin) → making by hands
• Production is related to either concrete or abstract outputs (service)
• Production is a general understanding of conversion processes from
input to output
• Manufacturing is pertaining of only concrete output
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• The meaning of production and manufacturing was changed.
• The definition of manufacturing from CIRP (College International pour
la Rocherche en Productique) issued in 1983 (see Hitomi [1996]*):
• "A series of interrelated activities and operations involving the design,
material selection, planning, manufacturing production, quality assurance,
management and marketing of the products of the manufacturing industries."
• A production system is part of a manufacturing system
• A production system is a conversion from a work in process in a state
condition to another condition in a status closer to a finished product
*Hitomi, K. 1996, Manufacturing Systems Engineering, Taylor & Francis, Second Edition, Bristol. USA, p.25
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An initial New
Production
status of status
system
WIP WIP
• A manufacturing system is conversion processes from a customer

desire to a finished product
Customer Manufacturing Finished

desire system product
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Consumer Ware- Finished
Distribution housing product
market
Market Product Process Production Production

research design design planning activity
Production
Manufacturing cycle control
Production system
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PRODUCTION PLANNING AND CONTROL: ISSUES AND RESEARCH TOPICS 38
Company system
Personnel system Financial system Management system
Manufacturing system
Production system
Product/ Production planning Production control
process Market
design research
Production activities
Quality
39
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Maufacturing system design(1)
Human MCS
Activity System
(HAS) Management
Manufacturing
Systems
Input Shop floor Output
Management
Control System HAS
(MCS)
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Management Control System
Forecasting Market
(the number research
A
of products)
Standar
Bill of Product
Aggregate product/
Information material design
plan A module
system
Master
Inventory Production Bill of Process
Production
mngmt activities operation design
Schedule
Customer Delivery Warehouse
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Forecating (the
number of products)
Market
research Human
A
Capacity Activity
planning System
Product Bill of
design material
Location
decision
Process Bill of
design operation Facility lay
out design
A
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42
IE Problems and solution methods(1)
A problem Methodology/
occurs when the Industrial
real condition is Engineering approach
different from
the desired
condition Problem The best
Problems solving solution
process
Design/improvement/ installation, Tools, Quantitative/

integrated systems, oprtimization methods qualitative
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• Reduced definition
• Industrial (and system) engineering is concerned with design, improvement,
and installation of the optimal “methods” for integrating people, material,
information, equipment, and energy
• Industrial (and system) engineering is concerned with optimized design,
improvement, and installation of integrated systems
• Keywords:
1. Design, improvement and or installation
2. Integrated systems
3. “Optimized” alternatives (tradeoffs)
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optimized design,
improvement, and
installation of
integrated systems
Integrated
System Independent of
problem objects
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System modeling process Model is a representation
of the real world through
Reference
model simplification by making
assumptions
Simplification,
Real assumption
Model components:
Model
word Modeling
objective function,
Problem Solution constraints, variables,
Implementing solving method
parameters, alternative
Interpre- Interpretating solutions, feasible region,
Solution optimal solution
tation
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Problem
Analytical model
Analytical
Yes
model?
No Analytical Yes
Yes OR solution?
OR standar Solve
standard
model No
No model? Yes
Heuristic
New Yes New solution?
model model No
No Heuristic
solution
Simulation model
47
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Topics in introducing the Industrial Engineering
History Basic system System
Industrial and theoty performance
systems engineering
is concerned with
design,
improvement, and Manufacturing
installation of The definition of Profession
integrated systems of system
people, materials, Industrial Eng. ethics
information,
equipment, and Manufacturing
energy. It draws …
system design IE Curriculum
Industrial
Scientific Engineering Smart
Industry 4.0
management manufacturing
Human aspect Integrated/open Sustainable/

Management green
and system, global and
science manufacturing
management information system 48
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Concluding remarks(1)
• The Industrial Engineering discipline can be implemented to any
objects of the integrated system
• Therefore, Industrial Engineers (graduates) could work for any
integrated system (of people, materials, information, equipment, and
energy), not limited to the manufacturing system field
• In the education of the Industrial Engineering discipline, the
manufacturing system is adopted as a learning platform. There are at
least five reasons for the adoption
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• Manufacturing system has been developed from traditional
manufacturing to smart manufacturing (SM)
• The development is to respond the paradigm change from economies
of scale (mass production) to economies of scope (customized
products, mass customization), meaning producing customized
products with higher quality and lower price
• In responding to demand pattern changes and the development of
technology (such as industry 4.0), the Industrial Engineering
framework of thought is not changed. The difference is in the learning
platform, from traditional to smart manufacturings
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• Industrial engineers should be capable of designing the physical
system (human activity system → see Turner et. el), and operation
system (management control system → see Turner et. el), in the
context of traditional and smart manufacturing systems
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About The Industrial Engineering

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Industrial Engineering Problems and

the Solution Methods

Formal AIIE, 1955

Surrounding environment Systems X and Y

Input Transformation Output

• Transformation process is an activity to convert the input to output

Input Transformation Output

Traditional manufacturing Smart manufacturing

• A manufacturing system is conversion processes from a customer

Customer Manufacturing Finished

Market Product Process Production Production

Customer Delivery Warehouse

Design/improvement/ installation, Tools, Quantitative/

Human aspect Integrated/open Sustainable/

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