Introduction To Industrial Engineering and Management

INDUSTRIAL ENGINEERING
AND MANAGEMENT
Industrial Engineering and Management, BME III/II

Objective of the course
The main objective of this course is to provide

fundamental knowledge of industrial engineering.
After completion of this course the students will be
able:
1. To describe production systems; loading and
scheduling techniques.
2. To describe forecasting techniques, inventory
control and material requirement planning.
3. To apply knowledge and skills for plant
maintenance, quality control and management.

By: Khem Gyanwali, Thapathali Campus, IOE,TU 2
Course outline
1. Introduction to Industrial Engineering and Management (1 hour)
1.1 Historical Development
1.2 System Concept
2. Design of Production Systems (18 hours)

2.1 Plant Location
2.1.1 Importance of Plant Location
2.1.2 Factors Affecting Plant Location
2.2 Factory Building and Plant Layout
2.2.1 Types of Factory Building
2.2.2 Types of Plant Layout
2.2.3 Flow Patterns
2.3 Material Handling
2.3.1 Engineering factors and Economic factors
2.3.2 Classification of Material Handling Equipments
2.4 Production, Planning and Control
2.4.1 Types of Production System
2.4.2 Routing, Scheduling and Loading
2.5 Product Research, Development and Design
2.5.1 Tools for Product Development
2.5.2 Standardization
2.5.3 Simplification and Specialization
2.6 Process Planning Introduction
Course outline
3. Loading and Scheduling Techniques (4 hours)
4.1 Gantt Chart
4.2 Critical Path Method (CPM)
4.3 Program Evaluation and Review Technique (PERT)
4. Inventory Control (4 hours)

5.1 Economic Order Quantity
5.2 Safety Stock; Reorder Quantity; Lead Time
5.3 ABC Analysis
5. Material Requirement Planning (MRP I and MRP II) (6 hours)

6.1 Introduction
6.2 MRP Concept
6.3 Benefits and Application
6.4 MRP II (Manufacturing Resource Planning)
6.5 The Japanese approach to MRP
6.6 Comparing MRP and Just in time (JIT) Concept

Course outline
6. Forecasting (4 hours)
6.1 Forecasting Techniques
6.1.1 Qualitative Techniques
6.1.2 Quantitative Techniques
6.1.3 Causal Quantitative Techniques
6.2 Forecast Errors
7. Plant Maintenance (4 hours)

7.1 Introduction
7.2 Preventive Maintenance
7.3 Scheduled Maintenance
7.4 Break – down Maintenance
7.5 Total Productive Maintenance (TPM)
7.6 Total Planned Quality Maintenance (TPQM)
8. Quality Management (4 hours)

8.1 Evolution of Quality Management
8.2 Quality – Definitions
8.3 Total Quality Management
Reference Books:
• M. Mahajan, “Industrial Engineering and production Management” ,Dhanpat Rai and Co. (P) Ltd. ,
Delhi, 2002
• E. S. Buffa and R. K. Sarin “Modern Production / Operations Management”, 8th Edition, Wiley, 1987

Evaluation Scheme
1. Internal Assessment = 20 marks
I. Assignment: 5
II. Assessment: 5 + 5 = 10
III. Attendance: 5
2. Final exam = 80 marks
Unit Chapters Topics Marks Distribution
1 1 All 30
2 2.1 & 2.2
2 2 2.3 to 2.6 16
3 3&4 All 16
4 5&6 All 16
5 7&8 All 16
Total 80

Chapter 1
INTRODUCTION TO INDUSTRIAL
ENGINEERING AND MANAGEMENT
‘Don’t follow the followers; Lead the leaders.’

Course outline
 Historical Development
 System Concept
“Don't judge each day by the harvest you reap but by the seeds that
you plant. Robert Louis Stevenson
1.Historical development
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
people, materials, equipment and energy. It draws upon
specialized knowledge and skill in the mathematical,
physical and social sciences together with the principles and
method of engineering analysis and design, predict and
evaluate the results obtained from such systems.
The prime objective of industrial engineering is;

1. To increase the productivity.
2. Eliminating waste and non-value added activities.
3. Improving the effective utilization of resources.

By: Khem Gyanwali, Thapathali Campus, IOE,TU
9
It is linked with industrial revolution and passed
through many phases to reach present advanced
stage.
• Frederick Taylor is named as father of scientific
management and industrial engineering. But
before Frederick Taylor, Adam Smith gave concept
of Division of Labour through his book The
Wealth of Nations.
• Also James Watt, Boultin Mathew and Robinson

obtained a place in the history of Industrial
Engineering because of their work related with
improvements in the performance of machines
and industries.
10
Period between 1882-1912 was the critical

period in the history of Industrial Engineering.
Important works during this period are;
• Factory system, Owner, Engineer and Manager

concept.
• Equal work, equal pay and incentives.
• Scheduling and Gantt Charts.
• Engineers interest in cost control and
accounting.

11
Operations
Handicraft Industrial Scientific Research/
Era Revolution Management Computerized
System
1750 1800 1850 1900 1950 2000
Colonial
Automation
Expansion
Expansion
Expansion
Industrial
Financial

12
TRANSPORTATION
• Before the Industrial
Revolution, people relied
on the horse and their
own feet to get around.
• With the invention of the
steam locomotive,
transportation took a
huge step forward.
• The first two major
railroad companies were
the Union Pacific and
Central Pacific Railroads.
An original steam engine

13
PASSENGER CARRIERS

14
TEXTILES
• With the invention of the
spinning jenny and the
power loom, the textile
industry took off.
• Clothes could now be
made far faster than
ever before.
• The spinning wheel was
the first invention, but it
was very slow.
• Threads were spun one
at a time, by hand.
SPINNING WHEEL

15
SPINNING JENNY COTTON FACTORY

16
AGRICULTURE
• Advances in agriculture
were also made.
• The invention of the seed
drill allowed farmers to
plant many more seeds
much more quickly.
• The reaper allowed
farmers to harvest their
crops more efficiently.
• More crops could now
be grown feeding an
increasing population.
THE SEED DRILL

17
HAND REAPER MECHANICAL REAPER

18
STEELS
• With the invention of steel,
buildings could be made
much taller.
• Steel was much harder than
iron, which would bend if
made too tall.
• The steel industry created
many new products, and led
to the invention of the car.
• Andrew Carnegie became a
millionaire in the steel
business by putting all his
competitors out of business.
• He created U.S. Steel in Andrew Carnegie
Pittsburg.

19
A melting plant Smoke stacks of a factory

20
THE ELECTRIC LIGHT

• Can you imagine what life
would be like without the
electric light?
• Thomas Edison invented
the electric light.
• Thomas Edison also
invented many other
things, like the
phonograph.
THOMAS EDISON

21
The Phonograph Telegraph

• In 1844, Samuel Morse
demonstrates his telegraph by
sending a message to Baltimore
from the chambers of the
Supreme Court in Washington,
DC. The message, "What hath
God wrought?," marks the
beginning of a new era in
communication.
• The telegraph used dots and
dashes to send messages over
electric lines. These dots and
dashes became known as Morse
Code.

22
TELEPHONE OIL BUSSINESS
Alexander Graham Bell patented • John D. Rockefeller became the richest man in the world in
the oil business.
the first telephone in 1876. • He created Standard Oil Company.
• Oil began being used in all types of machines, like cars.

23
AUTOMOBILE AIRPLANE
• Henry Ford invented the first practical car, • The Wright brothers were the first men to
the Model T. successfully fly an airplane.
• The car had been invented earlier, but Ford
was the first to make the car affordable. • The flight lasted only twelve seconds, but it
proved men could fly.
24
Contributions to Industrial Engineering

1. Adam Smith (1776): through his book titled
Wealth of Nations laid foundation to scientific
manufacturing. Through his concept of division
of labour which included the skill development,
time savings and the use of specialized machine
was able to influence.
2. James Watt (1864): Steam Engine advanced the
use of mechanical power to increase
productivity.
3. Charles Babbage worked on the same line as
Adam Smith.

25
4. Frederick Taylor (1859-1915): was a mechanical
engineer and initiated investigations of better work
methods and develop an integrated theory of
management principles and methodologies. He
proposed following actions;
• Data Collection and standards for workers.

• Scientifically training of workers.
• Cooperation between management and labour
for better production.
• Divide work between management and labour
and assigning to those who are best suited.
26
5. Henry L. Gantt (1893): His contributions are;

• Work in the area of motivation field, development of
task and bonus plan.
• Measurement of management results by Gantt Charts.
• Recognition of social responsibility of business and
industry.
• Advocated training of workers by management.
6. Frank and Lillian Gilbreth (1917): developed method

study as a tool for work analysis.
• He developed micro-motion study, a breakdown of
work into fundamental elements called therbligs.
27
7. Harrington Emerson(1913): Developed his managerial

concepts simultaneously with Taylor, Gantt and
Gilbreth.
• Amongst his contributions is the Emerson’s Efficiency
Bonus Plan, an incentive plan which guarantees the
base day rate and pays a graduated bonus.
• He also proposed twelve principles of efficiency.
8. L.H.C Tippet (1937): Developed the concept of work

sampling to determine the equipment and manpower
utilization and setting performance standards for long
cycle, heterogeneous jobs involving team work.

28
2. System concept
INPUTS OUTPUTS
• MATERIALS
• LABOR • PRODUCTS
• TRANSFORMATION PROCESS
MACHINES • SERVICES
• ENERGY OPERATION MANAGEMENT
• INFORMATION SYSTEM DESIGN
• TECHNOLOGY OPERATIONS PLANNING &
CONTROL
FIGURE: SYSTEM CONCEPT OF PRODUCTION MANAGEMENT

29
2. System concept
Productive system is defined as the means by

which we transform resource inputs to create
useful goods and services as outputs. An
operation is some step in the overall process of
producing a product or service that leads to the
final product.
Production management may be defined as a
task of planning, coordinating, motivating and
controlling the efforts of others towards a
production of goods or services in an efficient,
effective manner.

30
2. System concept
Following tools and techniques are used to improve
productivity of the organization by optimum utilization of
resources.
1- Method Study.
2- Time Study (Work Measurement).
3- Motion Economy.
4- Financial and Non Financial Incentives.
5- Value Analysis.
6- Production, Planning and Control.
7- Inventory Control.
8- Job Evaluation.
9- Material Handling Analysis.
10-Ergonomics (Human Engineering).
11- System Analysis.
12- Operations Research Techniques.

31
2. System concept
Industrial Engineering Approach
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.
32
2. System concept
Role of Industrial Engineer

1. Advisor
2. Advocator
3. Analyst
4. Motivator
5. Decision maker
6. Designer/Planner
7. Coordinator
8. Trainer/Educator
33
2. System concept
Industrial Engineering Approach
In carrying out various activities, the industrial engineer;
• Gathers and analyses facts.
• Prepares the alternative solutions taking in to consideration
all the constraints both internal and external.
• Selects the best solution for implementation.
Industrial Engineering in Service Sector

Large number of industrial engineers are in demand and
attracted to careers in exciting, challenging and rewarding
new fields. The various service industries are;
1- Health Service.
2- Government Organizations.
3- Banking.

34
Industrial Engineering and Management, BME III/II 35

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INDUSTRIAL ENGINEERING

Industrial Engineering and Management, BME III/II

The main objective of this course is to provide

Industrial Engineering and Management, BME III/II

2. Design of Production Systems (18 hours)

4. Inventory Control (4 hours)

5. Material Requirement Planning (MRP I and MRP II) (6 hours)

Industrial Engineering and Management, BME III/II

7. Plant Maintenance (4 hours)

8. Quality Management (4 hours)

Industrial Engineering and Management, BME III/II

Industrial Engineering and Management, BME III/II

‘Don’t follow the followers; Lead the leaders.’

The prime objective of industrial engineering is;

Industrial Engineering and Management, BME III/II

• Also James Watt, Boultin Mathew and Robinson

Period between 1882-1912 was the critical

• Factory system, Owner, Engineer and Manager

Industrial Engineering and Management, BME III/II

1750 1800 1850 1900 1950 2000

Industrial Engineering and Management, BME III/II

Industrial Engineering and Management, BME III/II

Industrial Engineering and Management, BME III/II

Industrial Engineering and Management, BME III/II

SPINNING JENNY COTTON FACTORY

Industrial Engineering and Management, BME III/II

Industrial Engineering and Management, BME III/II

HAND REAPER MECHANICAL REAPER

Industrial Engineering and Management, BME III/II

Industrial Engineering and Management, BME III/II

A melting plant Smoke stacks of a factory

Industrial Engineering and Management, BME III/II

THE ELECTRIC LIGHT

Industrial Engineering and Management, BME III/II

The Phonograph Telegraph

Industrial Engineering and Management, BME III/II

TELEPHONE OIL BUSSINESS

Industrial Engineering and Management, BME III/II

Contributions to Industrial Engineering

Industrial Engineering and Management, BME III/II

• Data Collection and standards for workers.

5. Henry L. Gantt (1893): His contributions are;

6. Frank and Lillian Gilbreth (1917): developed method

7. Harrington Emerson(1913): Developed his managerial

8. L.H.C Tippet (1937): Developed the concept of work

Industrial Engineering and Management, BME III/II

FIGURE: SYSTEM CONCEPT OF PRODUCTION MANAGEMENT

Industrial Engineering and Management, BME III/II

Productive system is defined as the means by

Industrial Engineering and Management, BME III/II

Industrial Engineering and Management, BME III/II

At problem identification/definition stage following

Role of Industrial Engineer

Industrial Engineering in Service Sector

Industrial Engineering and Management, BME III/II

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