INTRODUCTION TO

MODERN
INDUSTRIAL
ENGINEERING
(History, Principles, Functions and Focus Areas)

By

Prof. K.V.S.S. Narayana Rao, B.Tech, PGDIE, PhD.

Author Global Number 1 Blog on Industrial Engineering - Industrial Engineering
Knowledge Center
https://nraoiekc.blogspot.com
https://www.linkedin.com/in/narayana-rao-kvss-b608007/

A Collection of Blog Posts on Industrial Engineering.

1
 Preface

I am making this consolidation as number of my friends and readers are requesting a

pdf version of the articles published by me. I thank them for motivating me to do this
compilation. Version 2.0 was received with enthusiasm. So I got the interest to
further expand the content to version 3.0. I request you to give suggestions for
various improvements needed through my blog posts or LinkedIn posts.
https://nraoiekc.blogspot.com/2022/07/introduction-to-modern-industrial.html

© 2023 K.V.S.S. Narayana Rao

Rights for the content created by me, the collection scheme and presentation
format.
(Version 3.0 - June 2023)

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 Contents
1. Industrial Engineering - Introduction and History
2. Definition and Explanation
3. Contribution of Taylor, Gilbreth and Harrington Emerson
4. Principles of Industrial Engineering
5. Functions of Industrial Engineering
6. Focus Areas of Industrial Engineering

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Industrial Engineering - Introduction and
History
Industrial engineering (IE) is system efficiency engineering. It focuses on the
efficiency/productivity of machines, materials, energy and men in engineering
systems and processes. Machine effort industrial engineering and human effort
industrial engineers are important areas in IE. Similarly another classification,
facilities industrial engineering, product industrial engineering and process industrial
engineering is also important to bring out the components or areas of IE. In a system,
if one maintains effectiveness of processes and increases efficiency of processes that
includes productivity (more output from the same resources), total effectiveness
produced from the system will increase. Therefore increase in efficiency is desirable.
Increase in effectiveness from the process is also desirable, but the in the evolution
of subjects, industrial engineering is the name given to the subject or discipline that
focuses on efficiency. In due course, other disciplines that focus on quality, reliability,
and safety etc., emerged in the engineering discipline.

Was Industrial Engineering Department started by F.W. Taylor - The Father of

Industrial Engineering?

Yes. It was started by him in 1885.

Frederick Taylor's Industrial Engineering Department for Process Improvement for
Productivity Increase - 1885.
https://nraoiekc.blogspot.com/2021/11/frederick-taylors-industrial.html

Frederick Taylor established the first department in factory doing industrial

engineering work of process improvement for increase in productivity and cost
reduction. The name he gave it to the department is "Elementary Rate Fixing." Its
function is to breakdown the process into elements and find the best way of doing
each element by observing number of persons doing the same element and finding
the best way through time study. In this type of time study, the time taken by
various persons to do the same element is recorded and the method that takes the
least time is adjudged as the best method. The next step is to find science behind the
way of doing the elements. The elements can be redesigned based on the
productivity science developed for them. Then from the best ways of doing each
element, a new process is developed and the operators are trained in it. The
expected or standard rate fixing refers to specifying the time required to do each
element and the piece rate for it. The Piece rate of a component is fixed by first
developing the detail at element level. The operators are provided the instruction
sheet at the element level so that they know the time specified for each element and
make effort to do it in that time. Taylor stated that operators are motivated to do

4
well when they know the goal clearly and receive feedback quickly. The elementary
rate fixing department has the responsibility to develop productivity science, do
productivity engineering and do productivity management.

Based on the statements of Taylor, we can say elementary rate fixing department
was established in 1885 by Taylor.

The Call for Cost Reduction by Engineers - ASME President - 1880

The first president of ASME in his presidential address in 1880 exhorted mechanical
engineers to understand the relation between elements of engineering design and
production and elements of cost accounting that determine the production cost as
well as the life cycle cost of engineering items. Even though attention to cost was
given by civil engineers earlier, the call by ASME president led to the emergence of a
branch/discipline of engineering termed "Industrial Engineering."

The concern for management and productivity issues occupied the attention of the
first ASME president. Thus ASME's attention to the topic is there right from its
founding. In fact, R.H. Thurston the first ASME president, in his inaugural address
(1880), included productivity improvement and economy among the objects of
the society in his inaugural address.

"We are now called upon to do our part in the work so well begun by our
predecessors, and so splendidly carried on by our older colleagues during the past
generation. We have for our work the cheapening and improvement of all textile
fabrics, the perfecting of metallurgical processes, the introduction of the electric
light, the increase of facilities for rapid and cheap transportation, the invention of
new and more efficient forms of steam and gas engines, of means for relieving
woman from drudgery, and for shortening the hours of labor for hard-working men,
the increase in the productive power of all mechanical devices, aiding in the great
task of recording and disseminating useful knowledge; and ours is the duty to
discover facts and to deduce laws bearing upon every application of mechanical
science and art in field, workshop, school, or household." - Thuston.
R. H. Thurston. President's inaugural address. Transactions ASME, 1, 1880, pp. 14-29.

Pennsylvania State College, USA introduced the first industrial engineering major in
1907. Hugo Diemer was the faculty who introduced it. He authored a book in 1911
which he explained the role of industrial engineering. Principles of Industrial
Engineering, a book on industrial engineering by Charles B. Going was published in
1911. Charles taught industrial engineering subject in a module on works
management organized at Columbia University by Prof. Walter Rautentruanch.

James Gunn is given the credit for using the term "industrial engineer" first in an
article in 1901. He wanted a new engineer to emerge "production" or "industrial".
The "industrial" or "production" engineer of Gunn understands the cost accounting

5
and cost analysis in relation to engineering activities. The term industrial engineer
appealed to some. Subsequently the course in industrial engineering was also
started. Even production engineering emerged as a separate branch that focused
much more on the technical function of creating process plans, instructing and
training operators. The focus of industrial engineering became productivity,
efficiency and cost reduction.

INDUSTRIAL ENGINEERING PHILOSOPHY

I would like to state the philosophy of industrial engineering as "engineering systems
can be redesigned or improved and installed periodically for productivity increase or
improvement." The primary drivers of productivity improvement are developments
in basic engineering disciplines and developments in industrial engineering
(developments in productivity science, productivity engineering and productivity
management). The additional drivers are developments in related disciplines, for
example, economics, mathematics, statistics, optimization techniques, ergonomics,
psychology and sociology etc. - Narayana Rao, 1 April 2021.

Evolution of Industrial Engineering - James Gunn, Towne, Taylor, Diemer, Going,

Barnes

Background for Development of Industrial Engineering

The late-nineteenth-century factory initially was a collection of skilled machinists and

mechanical artisans working in a big work areas based on their skills. The
management of production activity was basically done a first-line supervisor, the
foreman. He organized materials and labor, directed machine operations, recorded
costs, hired and fired employees, and basically he is the principal production
manager. The manager or general manager above him looked after external issues
related to supplies of goods and services.

In the 1870s and 1880s, critics began to attack the model of the factory wherein
each operator worked according his personal methods and mostly worked under a
piece rate system. Their critique became the basis for the best-known effort to
encourage coordination within the firm during the first half of the twentieth century
under production manager. F.W. Taylor, brought out the idea that attention to
machinery and use of machinery by managers would increase productivity. Similarly
attention to working procedures of machinists and other workers would increase
productivity. Subsequently, Shop Management theory and practice was proposed
by F.W. Taylor and he made increasing efficiency of workmen in factory systems as
part of management task. A factory system is meaningful only when managers
contribute to the productivity of the direct labor. The contribution comes from the
development of newer methods of production giving higher productivity and training
existing and new workers in the newer methods. The new methods can be taught to
the students in training institutes. The changes in management that occurred

6
during the period were known under various labels - systematic management,
scientific management, efficiency engineering. As stated above, in 1901, the term
"industrial engineering" was proposed and in 1908, it became a course, and a branch
of engineering. Shop Management and subsequent books fostered greater sensitivity
to the manager’s role in production and led to greater diversity in industrial practice
also as managers selectively implemented ideas and techniques.

The attack on traditional factory management originated in two

late-nineteenth-century developments. The first was the maturation of the
engineering profession, based on formal education and mutually accepted
standards of behavior and formally educated engineers embraced scientific
experimentation and analysis in place of sporadic developments based on
experience. The second development was the rise of systematic management, an
effort among engineers and sympathizers to substitute system for the informal
methods that had evolved with the factory system. The factories replaced
traditional managers who focused less on production methods with engineers and
managerial systems replaced guesswork and ad hoc evaluations. By the late 1880s,
cost accounting systems, methods for planning and scheduling production and
organizing materials, and incentive wage plans were developed. Their objective was
an unimpeded flow of materials and information. Systematic management sought to
extract the efficiency benefit required to run a factory by developing science for
each work element. It also developed planning systems that helped in realizing the
organization's goals through work of managers and operators. It promoted decisions
based on performance by giving wages based on merit rating and incentives based
on quantity of output rather than on personal qualities and relationships.

Contribution of F.W. Taylor

In the 1890s, Frederick Winslow Taylor, became the most vigorous and successful
proponent of systematic management. As an executive in production engineering
and management, he introduced factory accounting (cost accounting) systems and
based on those records made engineering changes in systems that gave lower cost of
operation and production. Taylor explained his systems through papers and
discussions in meetings of American Society of Mechanical Engineers (ASME). The
systems and practices developed by Taylor permitted engineers and managers to use
operating records to guide their engineering and production management actions.
Taylor investigated belt transmission systems using cost records and made many
recommendations to increase the economy of belts. Taylor focused on reducing
metal cutting times through various engineering improvements to increase
productivity of machines. The improvements include use of cutting fluids, higher
power in the machines for increasing feed, development of high speed steel,
development of tool life equation and many more improvements. Taylor estimated
the time required for taking each cut and reduced the time taken by improvement in
cutting speed, feed and depth of cut.

Taylor also advocated production control systems that allowed managers to know
more precisely what was happening on the shop floor, piece-rate systems that

7
encouraged workers to follow orders and instructions, and various related measures.
Taylor developed time study of elements to measure time taken by machines and
men to perform various tasks done by operators. Data collected from multiple
machines and multiple operators were used to identify ways of working that gave
minimum times. By incorporating the elements requiring minimum time, Taylor
reduced the task time. He started the first department to do time studies and find
minimum time taking method of doing work elements and develop science.

Frederick Taylor established the first department in factory doing industrial

engineering work of process improvement for increase in productivity and cost
reduction in 1885. The name he gave it to the department is "Elementary Rate
Fixing." Its function is to breakdown the process into elements and find the best
way of doing each element by observing number of persons doing the same
element and finding the best way through time study. The next step is to find science
behind the way of doing the elements. Work elements may be common among
processes and therefore more persons can be observed doing the same element in
different processes. An example can be riveting. Rivets are used in production of
various items and therefore riveting as a work element can exist in multiple
processes producing different parts. Then from the best ways of doing each
element, a new process is developed and the operators are trained in it. The final
step of rate fixing refers to specifying the time required to do each element and the
piece rate for it. The Piece rate of a component is fixed by first developing the detail
at element level. The operators are provided the instruction sheet having
information at the element level so that they know the time specified for each
element and make effort to do it in that time. Taylor stated that operators are
motivated to do well when they know the goal clearly and receive feedback quickly.
By providing the time information at elementary level, the operator is provided to
get quick self feedback on the speed at which he is working. The elementary rate
fixing department has the responsibility to develop productivity science, do
productivity engineering and do productivity management.

Based on the statements of Taylor, we can say elementary rate fixing department
was established in 1885 by Taylor
(https://nraoiekc.blogspot.com/2021/11/frederick-taylors-industrial.html).

In 1895, he employed a colleague, Sanford E. Thompson, to help him determine the

optimum time to perform industrial tasks; their goal was to compute, by rigorous
study of the worker’s movements and the timing of those movements with
stopwatches, standards for skilled occupations that could be published and sold to
employers.

Between 1898 and 1901, as a consultant to the Bethlehem Iron Company, Taylor
introduced all of his systems and vigorously pursued his research on the operations
of metal-cutting tools. Taylor’s discovery of high-speed steel in 1900, which
improved the performance of metal-cutting tools, assured his fame as an inventor. In

8
his effort to introduce systematic methods in many areas of the company’s
operations, Taylor developed an integrated view of managerial innovation and a
broader conception of the shop/production manager’s role. In 1901, when he left
Bethlehem, Taylor resolved to devote his time and ample fortune to promoting his
new conception of industrial management. In the paper, Shop Management ( 1903),
he portrayed an integrated complex of systematic management methods and also
productivity improvement of machine shops.

In the following years, he began to rely more heavily on anecdotes from his career
to emphasize the links between improved management and greater productivity.
Second, Taylor tried to generalize his management principles to more areas of work.
Between 1907 and 1909, with the aid of a close associate, Morris L. Cooke, he wrote
a sequel to Shop Management that became The Principles of Scientific Management
(1911). Taylor came out with four principles and relied on colorful stories from
his experience and language to illuminate “principles” of management. He was
asking managers and workers to have “complete mental revolution” to adopt a new
way of management in which managers and workers cooperate to increase
productivity, profits and incomes. Consumers abre benefited due to the lower prices.
Taylor always talked of benefit to the three major communities - consumers,
producers and labor.

Taylor had fashioned scientific management from systematic management. The two
approaches were intimately related. Systematic and scientific management had
common roots, attracted the same kinds of people, and had the same business
objectives. Yet in retrospect the differences stand out. Systematic management was
diffuse and utilitarian, a series of isolated measures that did not add up to a larger
whole or have recognizable implications beyond day-to-day industrial operations.
Scientific management added significant detail and a larger view.

The Principles extended the potential of scientific management to nonbusiness

endeavors and made Taylor a central figure in the efficiency movement of the 1910s.
To engineers and nonengineers alike, he created order from the diverse
prescriptions of a generation of technical writers. By the mid-l910s, he had achieved
wide recognition in American engineering circles and had attracted a devoted
following in France, Germany, Russia, and Japan. Pennsylvania State College
introduced the first industrial engineering major in 1907 and promoted the thinking
of Taylor in productivity improvement and cost reduction as industrial engineering.

Taylor's insistence that the proper introduction of management methods required

the services of an expert intermediary helped in the emergence of industrial
engineering independent consultants and accelerated the rise of a new profession.

Initially, the spread of systematic management occurred largely through the work of
independent consultants, a few of whom, such as the accountant J. Newton Gunn,
achieved prominence by the end of the nineteenth century. By 1900, Taylor
overshadowed the others; by 1910, he had devised a promotional strategy that
relied on a close-knit corps of consultants to install his techniques, train the client’s

9
employees, and instill a new outlook and spirit of cooperation. The expert was to
ensure that the spirit and mechanism of scientific management went hand in hand.
This activity of Taylor produced a number of successful consulting firms and the
largest single cluster of professional consultants devoted to industrial management.

Between 1901 and 1915, Taylor’s immediate associates introduced scientific

management in nearly two hundred American businesses, 80 percent of which were
factories Some of the plants were large and modern, like the Pullman and
Remington Typewriter works. Approximately one-third of the total were
large-volume producers for mass markets. A majority fell into one of two broad
categories. First were those whose activities required the movement of large
quantities of materials between numerous workstations (textile mills, railroad repair
shops, automobile plants). Their managers sought to reduce delays and bottlenecks
and increase throughput.

The records available suggest that the consultants provided valuable services to
many managers. They typically devoted most of their time to machine operations,
tools and materials, production schedules, routing plans, and cost and other record
systems. Apart from installing features of systematic management, their most
notable activity was to introduce elaborate production-control mechanisms (bulletin
boards and graphs, for example) that permitted managers to monitor operations.

Between 1910 and 1920, industrial engineering spread rapidly. Large firms
introduced staff departments devoted to time study and other
industrial-engineering activities and consulting firms also developed further. By 1915,
the year of Taylor’s death, professional organization, the Taylor Society founded
in 1910 was active. Western Efficiency Society was founded in 1912. The Society of
Industrial Engineers was founded in 1917. These societies provided forums for the
discussion of techniques and the development of personal contacts. Financial
success and professional recognition increasingly depended on entrepreneurial and
communications skills rather than technical expertise alone. A new generation of
practitioners, including many university professors developed successful industrial
engineering consulting practices.

Contributions of Gilbreth, Emerson and Bedaux

Competition for clients and recognition, especially after the recession of 1920-21
made executives more cost-conscious-produced other changes. Some industrial
engineering consultants began to seek clients outside manufacturing. Spurred by the
growing corps of academicians who argued that the principles of factory
management applied to all businesses, they reorganized offices, stores, banks, and
other service organizations. A Society of Industrial Engineers survey of leading
consulting firms in 1925 reported that many confined their work to plant design,
accounting systems, machinery, or marketing . An important trend was an
increasing preoccupation with labor issues and time study. This emphasis reflected

10
several postwar developments, most notably and ominously the increasing
popularity of consultants who devoted their attention to cost cutting through the
aggressive use of time study.

By the early 1920s, industrial engineers had divided into two separate and
increasingly antagonistic camps. One influential group of industrial engineers,
centered in the Taylor Society, embraced personnel management and combined it
with orthodox industrial engineering to form a revised and updated version of
scientific management. A handful of Taylor Society activists, Richard Feiss of Joseph
& Feiss, Henry S. Dennison of Dennison Manufacturing, Morris E. Leeds of Leeds &
Northrup, and a few others, mostly owner-managers, implemented the new
synthesis. They introduced personnel management and more controversial
measures such as profit sharing, company unionism, and unemployment insurance
that attacked customary distinctions between white- and blue-collar employees and
enlisted the latter, however modestly, in the management of the firm.

A larger group emphasized the potential of incentive plans based on time and
motion study and disregarded or deemphasized the technical improvement. Their
more limited approach reflected the competition for clients, the trend toward
specialization, and the continuing attraction of rate cutting. Indicative of this
tendency was the work of two of the most successful consultants of the post- 1915
years, Harrington Emerson and Charles E. Bedaux. This led to the development of a
major weakness in Industrial Engineering. Industrial engineers got the description of
"Time Study Men."

Harrington Emerson

Emerson (1853-1931) was a creative personality. Attracted to Taylor at the turn of

the century, he briefly worked as an orthodox practitioner and played an influential
role in Taylor’s promotional work. He soon became a respected accounting theorist
and a successful reorganizer of railroad repair facilities. As his reputation grew,
however, he broke with Taylor and set up a competing business with a large staff of
engineers and consultants. Between 1907 and 1925, he had over two hundred
clients. He also published best-selling books and promoted a mail-order personal
efficiency course. He was probably the best-known industrial engineer of the late
1910s and early 1920s. Emerson’s entrepreneurial instincts defined his career. An
able technician, he was capable of overseeing the changes associated with orthodox
scientific management. He also recruited competent assistants, such as Frederick
Parkhurst and C. E. Knoeppel, who later had distinguished consulting careers, and E.
K. Wunnerlund, who became the head of industrial engineering at General Motors.
But Emerson always viewed his work as a business and tailored his services to this
customer’s interests. In practice, this meant that his employees spent most of their
time conducting time studies and installing incentive wage systems. By the
mid-1920s, General Motors, Westinghouse, the Baltimore & Ohio Railroad,
Aluminum Company of America, American Radiator, and many other large and
medium-sized industrial firms had introduced the Emerson system and in many
cases an industrial engineering department staffed by former Emerson employees.

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Bedaux (1886-1944) was a French immigrant who was a clerk at a St. Louis chemical
company. In 1910, when an expert arrived to conduct time studies, Bedaux quickly
grasped the essentials of time study and replaced the outsider. Then he found other
clients. The turning point in his career came in 1912, when he accompanied several
Emerson engineers to France as an interpreter. In Paris he struck out on his own,
reorganized several factories, and studied the writings of Taylor and Emerson.
Returning to the United States during World War I, he launched the Bedaux
Company and began to cultivate clients. He relied on a simple, compelling promise:
he would save more money than he charged. Although Bedaux employed able
engineers and usually made some effort to reorganize the plant, his specialty was
the incentive wage. His men worked quickly, used time studies to identify
bottlenecks and set production standards, installed a wage system similar to
Emerson’s. Bedaux’s clients included General Electric, B. F. Goodrich, Standard Oil
of New Jersey, Dow Chemical, Eastman Kodak, and more than two hundred other
American firms by the mid-1930s. His European offices were even more successful.

Whereas Taylor and his followers opposed wage cutting and “speed-up” efforts,
Emerson was more flexible, and Bedaux made a career of forcing workers to do
more for less. Taylor’s focus was on improvement of machines and machine work
first. Gilbreth’s emphasis was on detailed study of motions made by men and their
improvement based on the placement of materials, and tools around the machine.
But latter day popular industrial engineering consultants, made measurement of
time based on rating of speed being used by operators and showing a large potential
increase in output provided the speed for working was increased. The engineering
input in industrial engineering has gone down drastically and emphasis onf
“speed-up” had increased tremendously. It gave rise to strikes and union
protests. By the 1930s, Bedaux had become infamous on both sides of the Atlantic.
In response to his notoriety, he revised his incentive plan to increase the worker’s
share and dropped much of his colorful terminology, including the famous B unit.
Bedaux’s business survived, though neither he nor his firm regained the position
they had enjoyed in the late 1920s and early 1930s.

Bedaux’s legacy was a substantial burden for other industrial engineers. The growth
of labor unrest in the 1930s and the frequent appearance of the “Be-do” plan on
grievance lists revived the association of industrial engineering with labor turmoil.
Regardless of their association with Bedaux and his tactics, industrial engineers
became the targets of union leaders and their allies. In industries such as autos and
tires, worker protests paralyzed the operations of industrial engineering
departments and led to the curtailment or abandonment of many activities. Stop
watch time study was even prohibited for many years.

Diffusion of Industrial Engineering

There are at least three partial measures of the diffusion of industrial engineering.
First, the many references to cost accounting, centralized production planning and

12
scheduling, systematic maintenance procedures, time study, and employment
management in the trade press and in the records of industrial corporations indicate
that these activities were no longer novel or unfamiliar to executives. The
promotional work of the consultants, the “efficiency craze,” and the growth of
management education in universities had made the rudiments of industrial
engineering widely available; only the oldest or most isolated executives were
unaware of them. The critical issue was no longer the desirability of the new
management; it was the particular combination of techniques suitable for a given
firm or plant, the role of the outside consultant, if any, and the authority of the staff
experts.

Second, the information on industrial wage systems that the National Industrial
Conference Board assiduously collected in the 1920s and 1930s documents
widespread acceptance of incentive wage plans, particularly among large
corporations. In 1928, for example, 6 percent of the smallest companies (1-50
employees) had incentive wage plans, while 56 percent of the largest firms (more
than 3,500 employees) had such plans. In earlier years, small firms devoted to
industrial reform had been among the most vigorous proponents of industrial
engineering. But their ranks did not grow, and they were soon overshadowed by
large corporations, which found in industrial engineering an effective answer to the
problems that often prevented large, expensive factories from achieving their
potential. Incentive wage plans were an indicator of this trend. Feiss, Dennison,
and others hoped to transform the character of industrial work through the use of
incentives and personnel programs; judging from the information that survives, big
business managers had more modest goals. Their principal objective was to make
the best use of existing technology and organization by enlisting the workers’
interest in a higher wage. In the early 1930s, many managers were attracted to the
“work simplification” movement that grew out of the Gilbreths’ activities, but the
effects were apparently negligible, at least until the World War II mobilization effort.
To most manufacturers, industrial engineering provided useful answers to a range of
shop-floor problems; it was a valuable resource but neither a stimulus to radical
change nor a step toward a larger goal.

A third source, contemporary surveys of the industrial engineering work of large

corporations, provides additional support for this conclusion. A 1928 survey by
the Special Conference Committee, an elite group of large industrial firms,
reported wide differences in the practice of time study, in the duties of time-study
technicians, and in the degree of commitment to time study as an instrument for
refining and improving the worker’s activities. At Western Electric, which had one of
the largest industrial engineering staffs, a manufacturing planning department was
responsible for machinery and methods; the time-study expert was simply a rate
setter. At Westinghouse, which also had a large industrial engineering department,
time-study technicians were responsible for methods and rates. However, a report
from the company’s Mansfield, Ohio, plant indicated that the time-study engineer
could propose changes in manufacturing methods “in cooperation with the foremen.”
Most companies had similar policies. The time-study expert was expected to suggest
beneficial changes to his superiors, often after consulting the foreman, but had no

13
independent authority to introduce them. Essentially, the “expert” was a rate setter.
In most plants, industrial engineering focused on detail, seldom threatened the
supervisors or workers, and even more rarely produced radical changes in methods.

Experience at Du Pont

Du Pont executives created an Efficiency Division in 1911 after the company’s

general manager read The Principles of Scientific Management. Rather than employ
an outside consultant, they appointed two veteran managers to run the division.
These men conducted time and motion studies, “determined standard times and
methods for tasks, set standard speeds for machinery, and made suggestions for
rearranging the flow of work, improving tools, and installing labor-saving
equipment.” Yet they encountered a variety of difficulties; their proposals were only
advisory, they clashed with the new employment department when they proposed
to study fatigue and the matching of workers and jobs, and they found that many
executives were indifferent to their work. Worst of all, they could not show that
their activities led to large savings. In 1914, after the introduction of functional
supervision in the dynamite-mixing department apparently caused several serious
accidents, the company disbanded the Efficiency Division.

Although some Du Pont plants introduced time-study departments in the following

years, the company did nothing until 1928, when it created a small Industrial
Engineering Division within the larger Engineering Department. The IED was to
undertake a “continuous struggle to reduce operating costs.” That battle was
comparatively unimportant until the Depression underlined the importance of cost
savings. In the 1930s, the IED grew rapidly, from twenty eight engineers in 1930 to
over two hundred in 1940. It examined “every aspect of production,” conducted job
analyses, and introduced incentive wage plans. IED engineers began with surveys
of existing operations. They then “consolidated processes, rearranged the layout of
work areas, installed materials-handling equipment, and trimmed work crews.” To
create “standard times” for particular jobs, they used conventional stopwatch time
study as well as the elaborate photographic techniques the Gilbreths had developed.
By 1938, they had introduced incentive wage plans in thirty plants; one-quarter of all
Du Pont employees were involved in these IE improvements.

Du Pont introduced a variety of incentive plans. Three plants employed the Bedaux
Company to install its incentive system. Other managers turned to less expensive
consultants, and others, the majority, developed their own “in-house” versions of
these plans. Some executives, and workers, became enthusiastic supporters of
incentive wages; others were more critical. Despite the work of the aggressive and
ever-expanding IED, many workers found ways to take advantage of the incentive
plans to increase their wages beyond the anticipated ranges. Wage inflation
ultimately led the company to curtail the incentive plans. Time and motion study,
however, remained hallmarks of Du Pont industrial engineering.

During the depression of the 1930s, when they developed a new sensitivity to the
value of industrial engineering, they defined it as a way to cut factory costs. One

14
reason for this perspective was bureaucratic: Du Pont had developed an extensive
personnel operation in the 1910s and 1920s, which had authority over employee
training, welfare programs, and labor negotiations. Equally important was the
apparent assumption that industrial engineering only pertained to the details of
manufacturing activities, especially the work of machine operators. Despite
mounting pressures to reduce costs, the company’s offices, laboratories, and large
white-collar labor force remained off-limits to the IED. Despite these handicaps, the
IED had a significant impact because rapid technological change in the industry
created numerous opportunities for organizational change.

Du Pont executives were receptive to the “principles” of industrial engineering but

focused on the particulars, which they assessed in terms of their potential for
improving short-term economic performance. As a result there was little consistency
in their activities until the 1940s; even then, industrial engineering was restricted to
the company’s manufacturing operations.

During the first third of the twentieth century, industrial engineers successfully
argued that internal management was as important to the health of the enterprise
as technology, marketing, and other traditional concerns. Their message had its
greatest impact in the 1910s and 1920s, when their “principles” won wide
acceptance and time study and other techniques became common-place. Managers
whose operations depended on carefully planned and coordinated activities and
reformers attracted to the prospect of social harmony were particularly receptive. By
the 1930s, the engineers’ central premise, that internal coordination required
self-conscious effort and formal managerial systems, had become the acknowledged
basis of industrial management.

1930s

Allan Mogensen's Common Sense Applied to Motion and Time Study (1932)

Ralph Barnes's Industrial Engineering and Management: Problems and Policies

(1931).

Steward M. Lowry, Harold B. Maynard, and G. J. Stegmerten's widely used Time and
Motion Study and Formulas for Wage Incentives. The 1927 edition treated motion
study only briefly and insubstantially, while devoting many chapters to stopwatch
methods and rate setting formulas. In 1932, the authors approached Lillian Gilbreth
and her research group for more detailed information on their methods. By 1940
Lowry, Maynard, and Stegmerten had reduced their treatment of wage incentive
formulas from nine chapters to three, and increased the number of chapters
devoted to motion study to seven.

IE History - Some Recollections

Andrew Shultz
https://www.informs.org/Resource-Center/Video-Library/H-T-Videos/Andrew-Schult
z-on-AIIE-ORSA-and-Cornell-s-ORIE

15
Industrial Engineering at Various Levels in an Organization

Industrial engineering is carried out at various levels in an organization. The

following are the important levels of IE.

Industrial Engineering Strategy - Enterprise Level Industrial Engineering

Policy Decisions by Top Management: Starting and Expanding IE Department,

Approval of Productivity Improvement Project Portfolio as part of Capital Budgeting
of the Company, Approving Productivity Policy, Setting Productivity and Cost
Reduction Goals. Setting Employee related comfort, health and safety goals.
Incentive income policy making.

https://nraoiekc.blogspot.com/2014/11/industrial-engineering-strategy.html

Facilities Industrial Engineering

Facilities are used by processes. Facilities are common to processes. Taylor clearly
mentioned in his "Piece Rates - Elementary Rate Fixing System" paper that he has to
make modifications to all machines to increase productivity of his machine shop.
Toyota even today carries out gradual improvements to the machines in the
direction of autonomation. Machines are continuously improved. Period layout
studies and readjustments are another example of facilities industrial engineering.
5S that demands upkeep of facilities is another example of facilities IE. It may be
the activity of operations management but industrial engineers evaluate the facilities
and their upkeep as part of their facilities studies and suggest improvements.

https://nraoiekc.blogspot.com/2020/05/facilities-industrial-engineering.html

Product Industrial Engineering

Product designs are studies by industrial engineers to redesign mechanisms and

machine elements to reduce cost and increase cost value. Value engineering is the
earliest method in this area. Design for Machining and Assembly is a later
development.

16
Process Industrial Engineering - Process Machine Effort Industrial Engineering -
Process Human Effort Industrial Engineering.

Process industrial engineering is the popular method of industrial engineering. But,

the process chart method,developed by Gilbreths was promoted by Motion Study
books. Thus, it gave the impression that motion study is the prime method. Process
improvement is to be prime method. As motion study books are primarily for human
motions improvement, the machine effort industrial engineering, that is
improvement of machine effort, that was done by Taylor primarily to increase
productivity got neglected in the evolution of industrial engineering. There is no
other subject in industrial engineering curricula that discussed machine effort
industrial engineering. It is a weakness to be corrected to make IE a strong discipline.
Process improvement and process studies have to be made the primary method in
industrial engineering. Operation study, method study, motion study and work
measurement are methods used in productivity studies. Such a hierarchy will make
things clear to industrial engineering students. Process approach got more
importance in quality management literature compared to industrial engineering
books.

https://nraoiekc.blogspot.com/2021/11/process-industrial-engineering-process.html

Operation Industrial Engineering.

Process chart is a condensed version that show the entire process of producing a full
product and the production of each part. The process chart is composed by symbols
representing 5 operations. Operation - Inspection - Transport - Temporary Delay
(WIP) - Permanent Storage (controlled store). Using process chart, the sequence of
operations can be investigated and changed for more benefit. But each operation
needs to be improved. It is termed simplification in process chart analysis. To do
simplification, data and information on each operation has to be collected in
operation information sheets and they have to be analyzed in operation analysis
sheets (Stegemerten and Maynard).

https://nraoiekc.blogspot.com/2013/11/approach-to-operation-analysis-as-step.htm
l

Element Level Analysis in Industrial Engineering

Elements are in Operations - We can understand the term "element" from the
subject "Design of Machine Elements". Each engineering product has elements.

17
Similarly each operation, that is part of a process has elements. Some are related to
machines and tools used in the process. Some are related to human operators. Some
are related to working conditions. Some are related to the work being done. Taylor
first named the productivity department as "Elementary Rate Fixing Department." It
has to improve each and every element in task and determine the output possible
for unit time in the work element. The time allowed for that element for a piece or
batch is determined through these elementary standard times or allowed times.
Elements are common to many processes and operations. Hence, more instances of
elements can be observed being done by various operators and the best method
giving the least time and cost can be identified. Scientific studies are further done on
these best methods to develop science of the element. Standard method to be
followed in many processes are developed for each element. These element level
standard methods are then made available to all engineers to use in process designs
and product designs.

Source: https://nraoiekc.blogspot.com/2013/10/industrial-engineering-history.html

Industrial Engineering - Definition,

Explanation
"Industrial Engineering is System Efficiency Engineering.
It is done through Machine Effort and Human Effort Engineering."

It is concerned with engineering products and engineering processes primarily. It

continuously improves engineering elements of facilities, products and processes as
the opportunity arises to increase efficiency and productivity. Various other activities
that plan and control engineering products and processes are also improved by
industrial engineers to assure the productivity of the engineering processes or the
engineering system as a whole. Industrial engineers also focus on the study and
improvement of human effort in engineering processes.

Japanese companies used industrial engineering extensively with various innovations.

They improved the understanding of industrial engineering methods among their
workmen and achieved unprecedented increase in the productivity of their industrial
enterprises in post-second world war period. The Japanese production systems got
the distinction with the description of them as World Class Manufacturing Systems.
Industrial engineering played an important role in the success of the most famous
Japanese company "Toyota Motors." Taiichi Ohno, the person credited with Toyota
Production Systems appreciates Industrial Engineering as Profit Engineering, the
engineering discipline that increases profits every year by decreasing cost, that leads
to increased sales and more profits.

Definitions

18
Industrial engineering directs the efficient conduct of manufacturing, construction,
transportation, or even commercial enterprises of any undertaking, indeed in which
human labor is directed to accomplishing any kind of work . Industrial engineering
has drawn upon mechanical engineering, upon economics, sociology, psychology,
philosophy, accountancy, to fuse from these older sciences a distinct body of science
of its own . It is the inclusion of the economic and the human elements especially
that differentiates industrial engineering from the older established branches of the
profession (Going, 1911) [1].

“Industrial engineering is the engineering approach applied to all factors, including

the human factor, involved in the production and distribution of products or
services.” (Maynard, 1953) [2]

What is engineering approach? It is design of components based scientific relations.

A prior calculation determines the actual position of each component in the machine
when force is applied on the machine and moving components have displacement.
Similarly strength of materials calculations determine the sizes of the machine
elements. Even the oils used for lubrication have calculations that assure that they
reduce the friction to desired levels. In industrial engineering, the production
capacity of the plant is calculated or predetermined based on specific operations
with known standard operation times. The time taken by the operations is
continuously analyzed and studies to find more opportunities to reduce them.

“Industrial engineering is the design of situations for the useful coordination of men,
materials and machines in order to achieve desired results in an optimum manner.
The unique characteristics of Industrial Engineering center about the consideration
of the human factor as it is related to the technical aspects of a situation, and the
integration of all factors that influence the overall situation.” (Lehrer, 1954) [3]

“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.” (AIIE, 1955). [4]

"Industrial engineering may be defined as the art of utilizing scientific principles,

psychological data, and physiological information for designing, improving, and
integrating industrial, management, and human operating procedures." (Nadler,
1955) [5]

“Industrial engineering is that branch of engineering knowledge and practice which

1. Analyzes, measures, and improves the method of performing the tasks assigned to
individuals,
2. Designs and installs better systems of integrating tasks assigned to a group,
3. Specifies, predicts, and evaluates the results obtained.

19
It does so by applying to materials, equipment and work specialized knowledge and
skill in the mathematical and physical sciences and the principles and methods of
engineering analysis and design. Since, however, work has to be carried out by
people; engineering knowledge needs to be supplemented by knowledge derived
from the biological and social sciences.” (Lyndall Urwick, 1963) [6]

Industrial 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. [7]

“Industrial Engineering is Human Effort Engineering. It is an engineering discipline

that deals with the design of human effort in all occupations: agricultural,
manufacturing and service. The objectives of Industrial Engineering are optimization
of productivity of work-systems and occupational comfort, health, safety and income
of persons involved.” (Narayana Rao, 2006) [8]

"Industrial Engineering is Human Effort Engineering and System Efficiency

Engineering. It is an engineering discipline that deals with the design of human effort
and system efficiency in all occupations: agricultural, manufacturing and service. The
objectives of Industrial Engineering are optimization of productivity of work-systems
and occupational comfort, health, safety and income of persons involved." Narayana
Rao (2011)

"Industrial Engineering is Human Effort Engineering and System Efficiency

Engineering. It is an engineering-based management staff-service discipline that
deals with the design of human effort and system efficiency in all occupations:
agricultural, manufacturing and service. The objectives of Industrial Engineering are
optimization of productivity of work-systems and occupational comfort, health,
safety and income of persons involved."(Narayana Rao, 2011)

The definition can be further simplified to "Industrial Engineering is System

Efficiency Engineering."

Systems come into existence for a purpose, that is effectiveness. Effectiveness is first
and next is adequate efficiency and its improvement.

References

20
1. Going, Charles Buxton, Principles of Industrial Engineering, McGraw-Hill Book
Company, New York, 1911, Pages 1,2,3
2. Maynard, H.B., “Industrial Engineering”, Encyclopedia Americana, Americana
Corporation, Vol. 15, 1953
3. Lehrer, Robert N., “The Nature of Industrial Engineering,” The Journal of Industrial
Engineering, vol.5, No.1, January 1954, Page 4
4. Maynard, H.B., Handbook of Industrial Engineering, 2nd Edition, McGraw Hill,
New York, 1963.
5. Nadler, Gerald, Motion and Time Study", McGraw-Hill Book Company, Inc., New
York, 1955
6. Urwick, Lyndall, F., “Development of Industrial Engineering”, Chapter 1 in
Handbook of Industrial Engineering, H.B. Maynard (Ed.), 2nd Edition, McGraw Hill,
New York, 1963.
7. http://www.iienet2.org/Details.aspx?id=282
8. Narayana Rao, K.V.S.S., “Definition of Industrial Engineering: Suggested
Modification.” Udyog Pragati, October-December 2006, Pp. 1-4.
____________________________________________________________________

What is Industrial Engineering?

Industrial engineering is engineering improvement done in engineering products and

processes during the product life cycle based on the data generated during
operations, studies done and engineering and technology developments. It is
continuous development of engineering products and processes to increase
efficiency or productivity of the process to reduce its cost of operation. Industrial
engineering facilitates unit cost reduction and thereby provides the potential to
reduce prices and increase demand. It is the effort of industrial engineers that
enables lower and lower prices and increases volume of sales thus providing the
popular engineering goods to a larger and larger sections of the society.

Industrial engineering can be better explained with the statement that the two focus
areas of industrial engineering are human effort engineering and system efficiency
engineering. These two focus areas match with Urwick’s statement 1 and 2.
Industrial engineering (i) analyzes, measures, and improves the method of
performing the tasks assigned to individuals, and (ii) Designs and installs better
systems of integrating tasks assigned to a group (Urwick, Lyndall, F., “Development
of Industrial Engineering”, Chapter 1 in Handbook of Industrial Engineering, H.B.
Maynard (Ed.), 2nd Edition, McGraw Hill, New York, 1963).

It is interesting to note that the first representation to the teachers and practitioners
of industrial engineering was given in the name of Industrial and Efficiency
Engineering Committee in 1912 in Society for Promotion of Engineering Education
(S.P.E.E.). In this committee, there were three teachers and 8 practitioners and Frank

21
Gilbreth was among practitioners (Gerald Thusesne, History of Development of
Engineering Economic Representation in within A.S.E.E.).

System Efficiency Engineering - System Efficiency Design

System design and system efficiency design are to be distinguished by dividing

system design into system functional design and system efficiency design. Engineers
or managers with specialization in a function do the functional design part. An
electrical power generation system is designed by electrical engineers and power
plant engineers. Industrial engineers take up the functional design and do efficiency
engineering work on it. Similarly a production planning system is designed by
production managers, and industrial engineers may do efficiency engineering of it.

The explanation of industrial engineering as human effort engineering and system

efficiency engineering brings out more clearly the scope of the IIE definition that
industrial engineering is concerned with the design, improvement, and installation of
integrated systems. The word engineering is associated with design and production,
fabrication or construction according to designs. As explained above, system
design in entirety cannot be the sole preserve of industrial engineers. The
functional design of production systems in various branches of engineering can be
done by engineers of that branch only. Similarly functional design of various
management systems in a business organization can be done by managers of that
function only. Industrial engineers' role to play in systems design is of designing
efficiency into the functional systems designed by others on a continuous basis.

Maynard stated the scope of industrial engineering in his preface to the second
edition of Hand Book of Industrial Engineering, edited by him in 1963. Industrial
engineers have been traditionally concerned with the design of manufacturing plants,
methods improvement, work measurement, the design and administration of wage
payment systems, cost control, quality control, production control and the like.
These procedures are all directed toward the reduction of cost. All the techniques of
industrial engineering reflect the common denominator of all industrial engineering
work – an intense interest in improving thing that is currently being done or planned
to be done . Cost reduction or efficiency improvement is the focus of industrial
engineering. Maynard also pointed out in his preface that developments in applied
mathematics and statistics during the post world war years facilitated industrial
engineer to tackle efficiency design of much larger systems with more predictive
power.

In 1943, the Work Standardization Committee of the Management Division of the

American Society of Mechanical Engineers identified the following areas as the
purview of industrial engineer: Manufacturing engineering, organization analysis,

22
systems & procedures, budgets and cost control, and wage & salary administration.
The traditional industrial engineering methods of operation analysis, motion study,
work measurement, standardization of the method were included in manufacturing
engineering and these techniques are relevant for hourly base wage rate
determination, incentives and administration of wage payment.

The study of various functional areas in industrial engineering curriculum is for the
purpose of understanding the functional designs in those areas and industrial
engineering graduates should not claim expertise in those subjects to do functional
design unless they really specialize in them through extra study and experience of
efficiency design of many systems in the same functional area.

According to M.H. Mathewson, industrial engineering is distinguished from other

engineering disciplines in that it:

1. Is concerned with the total system. (Productivity of the total system)

2. Predicts and interprets the economic results. (Provides cost estimates and
standards and thus can predict the profit given the estimates of sales revenue. Also
for each industrial engineering change proposed by it, it gives the expected
reduction in cost.)
3. Places increased emphasis on the integration of human being into the system.
(How the operator is going operate the machine, load and unload work pieces, move
work pieces etc. are studied and redesigned by industrial engineers. the comfort,
health and safety of operators is an area of focus for industrial engineering.)
4. Makes greater utilization of the contribution of the social sciences than do other
engineering disciplines. (Industrial engineers have to persuade operators to learn the
new methods or method changes and work according to them. In the activity of
directing operators to learn new methods and work according to them, industrial
engineers have to utilize social sciences.)

Industrial Engineering as practiced today can be explained by identifying three

components.

1. System Efficiency Engineering (Product Industrial Engineering and Process

Industrial Engineering)
2. Management of Systems Redesign, Installation and Improvement .
3. Human Effort Engineering
All methods and techniques of industrial engineering can be categorized under these
three major components.

Industrial and Systems Engineering

IIE's name was changed to IISE to better reflect the definition “Industrial
engineering is concerned with the design, improvement, and installation of
integrated systems of men, materials, and equipment. It draws upon specialized

23
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, 1955).

The design function was clearly brought into focus with the term "systems
engineering."

We can now see two major areas System Industrial Engineering and Industrial
Systems Engineering.

Techniques of Industrial Engineering

Human Effort Engineering - Techniques

1. Principles of Motion Economy
2. Motion Study
3. Workstation Design
4. Application of Ergonomics and Biomechanics
5. Fatigue Studies
6. Productivity/Safety/Comfort Device Design
7. Standardization of Methods - Methods Study
8. Time study of human effort or work elements - Work measurement of human
work
9. Operator training
10. Incentive Systems
11. Job Evaluation
12. Learning effect capture

System Efficiency Improvement Techniques of Industrial engineering

1. Process Analysis and Improvement

2. Operation Analysis and Improvement
3. Time estimates and time study of machine work
4. Value engineering
5. Statistical quality control
6. Statistical inventory control and ABC Classification Based Inventory Systems
7. Six sigma
8. Operations research
9. Variety reduction
10. Standardization
11. Waste reduction or elimination
12. Activity based management
13. Business process improvement
14. Engineering economy analysis
15. Learning effect capture and continuous improvement (Kaizen, Quality circles and
suggestion schemes)
16. Standard costing
17. 5S - Work Place Orderliness or Plant Orderliness

24
18. SMED
19. Poka Yoke

Pioneering Efforts of Taylor,

Gilbreth and Emerson
The contribution of Taylor is in multiple areas and was described in detail in this
article. Gilbreth also made very important contributions including the development
of the charts, now the main tools of industrial engineering.

In the flow process chart, five activities or operations are recorded.

Material processing - Inspection - Material Handling and Transport - Shop floor

delays - Warehousing or Controlled storage

In each of the activities or operations, there is role for machines, tools and operators.
The work of machines are operators has to be documented in detail to be examined
and improved.

Taylor's contribution is very significant in study and improvement of machine work.

His contribution to study of operators' work was developed into a more detailed
procedure by Gilbreth.

Harrington Emerson highlighted the production planning steps which are relevant in
eliminating shop floor delays. The Japanese contribution to industrial engineering
starts with eliminating the delays caused by large lot sizes. It redesigned all other
operations of the process to achieve smaller batch quantities and became world
standard even for the current times.

Contribution of F.W. Taylor to Industrial Engineering

F.W. Taylor started his career as a worker. He observed and concluded that as a
worker he could produce much more than others in the shop without any additional
strain. That experience gave a direction to his managerial career. Because his career
started in machine shop, he realized the importance of potential of the machine
work system to give increased output. If the machine related work elements are not
functioning properly, the operator is handicapped. With a good machine and
machine work system, the belief of the worker in benefits of producing maximum
output every day is also required. When Taylor began his work as a shop engineer or
manager, taking care of machines and methods during operations was not
emphasized. The activities are left to foremen and operators and they were doing it

25
based on their experience, available thumb rules and trial and error methods in each
shop. Taylor was impressed by the scientific method of collection of experimental
data or observation data and developing theories and laws. Based on his
experiments and observations, Taylor developed efficient methods of machine shop
work. He also started observing the working of operators and collecting data. Based
on his long years executive work and consulting work, Taylor explained the
productivity improvement in multiple presentations he made in annual conferences
of American Society of Mechanical Engineers (ASME). Thus, it has to be reiterated
again that Taylor developed both scientific study of machine work and man work for
increasing productivity in the machine shop. He also developed machine time
determination formulas to assist in machine work study. The stop watch time study
of work operators was developed to find the best practices of experienced operators
to develop science of human effort. Improvement in working time due to various
changes proposed by industrial engineers/scientific managers can be validated by
time study.

Taylor was involved in the activities of American Society of Mechanical Engineers

(ASME) from the very early years. In year 1886, when Henry Towne called for the
study of management, accounting and economics by engineers, Taylor was present
in the meeting and he participated in the discussion of cost accounting system
proposed by Metcalf. Thus Taylor already had active participation in study of
accounting, economics and productivity improvement.

In 1893, Taylor presented his first paper on cost analysis and cost reduction
based on redesign of engineering elements. It was on redesign of belt system based
on collection of data for 10 years on cost of the belting system. Thus Taylor laid the
strong foundation for redesign of engineering components and systems based on the
accumulated cost data and economic decision making.

Important points in "Notes on Belting" (1893)

In using belting so as to obtain the greatest economy and the most satisfactory
results, the following rules should be observed :

The chief consideration in design of belting in industry has to be how to get the
maximum of work from belting; while, in making up belting design tables, the two
most important considerations — how to secure the minimum of interruptions to
manufacture, and the maximum of durability — have to be given attention. The
important consideration in making up design tables and rules for the use and care
of belting is how to secure the least possible interruption to manufacture due to
repairs or correction to be made to belts.

Belts should be made heavier and run more slowly than indicated by present theory
and design rules for reducing the belt cost (first cost + maintenance) as well as
the cost due to frequent interruptions to manufacture. According to data
accumulated, by far the largest item in this account is the time lost on the
machines while belts are being replaced and repaired.

26
As part of the cost study of belts, shifting and cone belts were compared. The
important fact noticeable is the superiority of the shifting to the cone belts in every
respect except the purchase price. But paying more at the time of purchase is
beneficial as the operating and maintenance cost of substantially lower and hence to
life time cost of shifting belts is low. The life of the shifting belts is on average
three times that of the cone. The total cost of the shifting belts per year of service is
less than that of the cone. After 8.8 years of life the total cost of maintenance and
repairs of the shifting belts amounts to only 30.4% of the original cost, while with the
cone belts the maintenance and repairs through a life of 6.7 years amounts to one
and one-half times the first cost.

The interruptions to manufacture are nearly seven times as frequent with the cone
as with the shifting belts. Each shifting belt required tightening or repairing on an
average only 6 times during nine years, while the cone belts averaged 32
interruptions to manufacture in 0.7 years. The shifting belts having run on an
average twenty-two months without tightening, while the cone belts ran only two
and one-half months.

Summarizing, we may state that the total life of belting, cost of maintenance and
repairs, and the interruptions to manufacture caused by belts, are dependent upon

(1) the " total load " to which they are subjected, more than upon any other
condition;

The most economical total load for belting must lie between 174 lbs. and 357 lbs.
per square inch of section of belt. The average total load on belting should be 200
to 225 lbs. per square inch section of belt.

Six- and seven-ply rubber belts, and all double leather belts except oak tanned and
fulled, will transmit economically a pull of 30 lbs. per inch of width to the rim of the
pulley.

Oak tanned and fulled double leather belts will transmit economically a pull of 35 lbs.
per inch of width.

The other conditions chiefly affecting the durability of belting are :

(2) Whether the belts are spliced, or fastened with lacing or belt hooks.

(3) Whether they are properly greased and kept clean and free from machinery oil.

(4) The speed at which they are run.

The most economical speed for belting is 4,000 to 4,500 feet per minute.

27
Subsequent to the presentation of papers on productivity gain sharing by Towne,
and Halsey, Taylor presented his full productivity improvement systems that had
three ideas in the paper on piece rate system. The precursor of industrial
engineering department, elementary rate fixing department was proposed in this
paper. This department has the responsibility of improving the machine, machine
work and operator work and determine the time that is required to do various work
elements. Time study to observe and record time taken to complete an element was
proposed in this paper only. The improvement carried out in various engineering
elements related to machine and machine work were briefly described in this paper.

Frederick Taylor's Elementary Rate-fixing Department (Industrial Engineering

Department).

From the paper, Piece Rate System, 1895

The advantages of this system of management (Taylor's Piece Rate System) are :

The manufactures are produced cheaper under it.

The system is rapid in attaining the maximum productivity of each machine and
man

The writer introduced a new system of management in the works of the Midvale
Steel Company, of Philadelphia. It was employed in organization for past ten years
with the most satisfactory results.

The system consists of a principal element: An elementary rate-fixing department

(productivity department).

Elementary rate-fixing differs from other methods of making piece-work prices in

that a careful study is made of the time required to do each of the many elementary
operations into which the manufacturing of an establishment may be analyzed or
divided. The times for elementary operations are recorded under various classified
heads to facilitate retrieving them when needed.

The rate-fixing department has equal dignity and commands equal respect with the
engineering and managing departments and is organized and conducted in an
equally scientific and practical manner. It contributes value to the organization and
justifies its existence and the expenses incurred including the salaries paid to the
department personnel.

This elementary system of fixing rates has been in successful operation for the past
ten years, successfully covering the wide a range of manufacturing activities. This
new system came into existence in 1883. While he was the foreman of the machine
shop of the Midvale Steel Company of Philadelphia, it occurred to Taylor the writer
that a better system of fixing piece rates was possible and it would be beneficial to

28
both firm and the employee. The ideas was that it was simpler to time each of the
elements of the various kinds of work done in the place, and then find the quickest
time in which each element could be done under proper planning and
standardization. The time required for each job having various elements can be
determined by summing up the total times of the best or lowest times of its
component parts instead of searching through the records of former jobs and
guessing or estimating the proper piece rate. Taylor, himself as the foreman
practised this method of rate-fixing for about a year as it is the responsibility of the
foreman. Then he recommended to his company management to set up the
rate-fixing department. From then onwards, the department successfully set the
piece-work prices that gave higher productivity.

This department far more than paid for itself from the very start. Over years more
benefits were realized as methods of determining the maximum capacity of each of
the machines in the place, and of making working-tables of cutting conditions were
developed. Also the best methods of making and recording time observations of
work done by the men and developing the best way of doing each element was
determined. Also time-tables for starting and finishing jobs (schedules) were
developed and daily task was given to each workman with the promise of a bonus or
additional premium for exceeding the task given to him in a day.

The best results were finally attained in the case of work done by metal-cutting tools,
such as lathes, planers, boring mills, etc., when a long and expensive series of
experiments was made, to determine, formulate, and finally practically apply to each
machine the law governing the proper cutting speed of tools, namely, the effect on
the cutting speed of altering any one of the following variables : the shape of the
tool (i.e., lip angle, clearance angle, and the line of the cutting edge), the duration of
the cut, the quality or hardness of the metal being cut, the depth of the cut, and the
thickness of the feed or shaving.

Due to the understanding of metal cutting through these experiments, the quality of
the work was improved and the output of the machinery and the men was doubled,
and in many cases trebled. At the start there was naturally great opposition to the
rate-fixing department, particularly to the man who was taking time observations of
the various elements of the work. But when the men found that the knowledge
of the department was more accurate than their own, and the system provided
them higher income permanently, the motive for hanging back or “soldiering
(deliberate slow work)” ceased, and with it the greatest cause for antagonism and
war between the men and the management.

The accurate knowledge of the quickest time in which work can be done, obtained
by the rate-fixing department and accepted by the men as standard, is the greatest
and most important step toward obtaining the maximum output of the
establishment.

Of the two devices proposed for increasing the output of a shop, the differential rate
and the scientific rate-fixing department, the scientific rate-fixing department is by

29
far the more important. The differential rate is invaluable at the start as a means of
convincing men that the management is in earnest in its intention of paying a
premium for performing properly planned work or engineered work, and it at all
times furnishes the best means of maintaining the top notch of production; but
when, through its application, the men and the management have come to
appreciate the mutual benefit of harmonious cooperation and respect for each
other’s rights, it ceases to be an absolute necessity. On the other hand, the
rate-fixing department, for an establishment doing a large variety of work, becomes
absolutely indispensable. The longer it is in operation the more necessary it
becomes.

To apply the knowledge gained through rate fixing deparment's work in various
organizations with less cost, what is needed is a hand-book on the speed with which
work can be done, similar to the elementary engineering hand-books. Taylor
predicted that such a book will, before long, be forthcoming. Such a book should
describe the best method of making, recording, tabulating, and indexing
time-observations, since much time and effort are wasted by the adoption of inferior
methods (Taylor himself created the engineering knowledge to determine cutting
speeds, feeds and depth of cut of machine tools).

The benefits of elementary rate-fixing includes many indirect results.

The careful study of the capabilities of the machines and the analysis of the speeds
at which they must run, before differential rates can be fixed which will insure their
maximum output, almost invariably result in first indicating and then correcting the
defects in their design and in the method of running and caring for them.

In the case of the Midvale Steel Company the machine shop was equipped with
standard tools furnished by the best makers, and the study of these machines, such
as lathes, planers, boring mills, etc., which was made in fixing rates, developed the
fact that they were none of them designed and speeded so as to cut steel to the best
advantage. As a result, this company has demanded alterations from the standard in
almost every machine which they have bought during the past eight years. They
have themselves been obliged to superintend the design of many special tools which
would not have been thought of had it not been for elementary rate-fixing.

But what is perhaps of more importance still, the rate-fixing department has shown
the necessity of carefully systematizing all of the small details in the running of each
shop, such as the care of belting, the proper shape for cutting tools, and the dressing,
grinding, and issuing swarf, oiling machines, issuing orders for work, obtaining
accurate labor and material returns, and a host of other minor methods and
processes. These details, which are usually regarded as of comparatively small
importance, and many of which are left to the individual judgment of the foreman
and workmen, are shown by the rate-fixing department to be of paramount
importance in obtaining the maximum output, and to require the most careful and
systematic study and attention in order to insure uniformity and a fair and equal
chance for each workman. Without this preliminary study and systematizing of

30
details it is impossible to apply successfully the differential rate in most
establishments.

No system of management, however good, should be applied in a wooden way. The

proper personal relations should always be maintained between the employers and
men; and even the prejudices of the workmen should be considered in dealing with
them.

Above all it is desirable that men should be talked to on their own level by those who
are over them.

Each man should be encouraged to discuss any trouble which he may have, either in
the works or outside, with those over him. Men would far rather even be blamed by
their bosses, especially if the “ tearing out ” has a touch of human nature and feeling
in it, than to be passed by day after day without a word and with no more notice
than if they were part of the machinery.

The opportunity which each man should have of airing his mind freely and having it
out with his employers, is a safety-valve; and if the superintendents are reasonable
men, and listen to and treat with respect what their men have to say, there is
absolutely no reason for labor unions and strikes.

Source: Frederick Taylor's Piece Rate System

The machine and machine related work improvement was described in very great
detail in the paper "The Art of Metal Cutting (1906)" by Taylor.

Taylor is the first person who wrote about a system to improve productivity in
machine shop. He contributed to productivity science, productivity engineering and
productivity management. It is important to study the productivity science
developed by Taylor through his paper "The Art of Metal Cutting." Number of tables
were shared with participants along with the paper presented in 1906. The folder
containing tables is not yet available in the web space. We only have the paper.
Similar content has to be developed for other processes in production industrial
engineering literature.

Taylor did research on productivity improvement of machining in turning process for

26 years and provided number of relations between cutting variables and
productivity.

ELEMENTS AFFECTING CUTTING SPEED OF TOOLS IN THE ORDER OF THEIR RELATIVE

IMPORTANCE

The cutting speed of a tool is directly dependent upon the following elements. The
order in which the elements are given indicates their relative effect in modifying the
cutting speed, and in order to compare them, in each case, figures have been

31
written which represent, broadly speaking, the ratio between the lower and higher
limits of speed as affected by each element.

(A) The quality of the metal which is to be cut; i.e., its hardness or other qualities
which affect the cutting speed.

Proportion is as 1 in the case of semi-hardened steel or chilled iron to 100 in the case
of very soft low carbon steel.

(B) The chemical composition of the steel from which the cutting tool is made, and
the heat treatment of the tool.

Proportion is as 1 in tools made from tempered carbon steel to 7 in the best high
speed tools.

(C) The thickness of the shaving; or, the thickness of the spiral strip or band of metal
which is to be removed by the tool, measured while the metal retains its original
density (uncut thickness); not the thickness of the actual shaving, the metal of which
has become partly disintegrated.

Proportion is as 1 with thickness of shaving 3/16 of an inch to 3.5 with thickness of

shaving 1/64 of an inch.

(D) The shape or contour of the cutting edge of the tool, chiefly because of the effect
which it has upon the thickness of the shaving.

Proportion is as 1 in a thread tool to 6 in a broad nosed cutting tool.

(E) Whether a copious stream of water or other cooling medium is used on the tool.

Proportion is as 1 for tool running dry to 1.41 for tool cooled by a copious stream of
water.

(F) The depth of the cut; or, one-half of the amount by which the forging or casting is
being reduced in diameter in turning.

Proportion is as 1 with 1/2 inch depth of cut to 1.36 with 1/8 inch depth of cut.

(G) The duration of the cut; i.e., the time which a tool must last under pressure of
the shaving without being reground.

Proportion is as 1 when tool is to be ground every 1.5 hour to 1.207 when tool is to
be ground every 20 minutes.

(H) The lip and clearance angles of the tool.

Proportion is as 1 with lip angle of 68 degrees to 1.023 with lip angle of 61 degrees.

32
(J) The elasticity of the work and of the tool on account of producing chatter.

Proportion is as 1 with tool chattering to 1.15 with tool running smoothly.

A brief recapitulation of these elements is as follows:

(A) quality of metal to be cut: 1 to 100;
(B) chemical composition of tool steel: 1 to 7;
(C) thickness of shaving: 1 to 3.5;
(D) shape or contour of cutting edge: 1 to 6;
(E) copious stream of water on the tool: 1 to 1.41;
(F) depth of cut: 1 with 1/2 inch depth to 1.36 with 1/8 inch depth of cut;
(G) duration of cut: 1 with 1.5 hour cut to 1.20 with 20-minute cut;
(H) lip and clearance angles: 1 with lip angle 68 degrees to 1.023 with lip angle of 61
degrees;
(J) elasticity of the work and of the tool: 1 with tool chattering to 1.15, with tool
running smoothly.

Some Estimates of Cutting Speed

A great number of experiments were made by Taylor to develop of science of

cutting speed.

A numerical scale of hardness (which varies by the common rate of 1.1) that varies
directly and permanently with certain qualities of metal was developed. Cutting
tools were also classified based on known cutting properties. Class No. 13 in material
upon this scale corresponds to a cutting speed of 60 feet per minute, for a standard
cut of 20 minutes duration when a high speed 7/8 inch tool of the chemical
composition of tool No. 27 is used, taking a depth of cut of 3/16 inch and feed of
1/16 inch.

The experiments indicate also that Class No. 13 represents a speed of 99 feet (in
round numbers 100 feet) for the best high speed tool (Folder 20, Tool No. 1), running
under the same conditions (7/8 inch tool, depth of cut of 3/16 inch, feed of 1/16 inch,
and cut of 20 minutes duration.)

Using this data as a basis, our scale of "hardness classes" for metals can be
connected with other shapes of tools and other qualities of tool steel, other depths
of cut, and other thicknesses of feed, by reference to the various tables and formula
given in the paper.

In using this classification it will be noted that the best modern high speed 7/8 inch
tool, if cutting metal belonging to Class 1 would have a cutting speed of 316 feet per

33
minute with a standard 3/16 inch depth of cut and 1/16 inch feed; and such a metal
as this would be much softer than any steel which is cut in a machine shop.

For what we call a hard steel forging of about the quality of a hard locomotive tire, a
cutting speed of 45 feet corresponds to Class 21 and 1/4, while a soft steel having a
cutting speed of 198 feet corresponds to Class 5 and 3/4.

THE EFFECT OF THE QUALITY OR HARDNESS OF STEEL FORGINGS UPON THE CUTTING
SPEED

There are three important elements which affect the hardness or the cutting
properties of steel forgings:

A. Their chemical composition.

B. The thoroughness with which the metal is forged, that is, the amount that the
cross-section of the ingot has been reduced in making the forging and the forging
heat.
C. The subsequent heat treatment which the forging receives, that is, whether it has
been laid down to cool in the air, annealed, or oil hardened, and the exact
temperatures of annealing and the rapidity of cooling.

It may be said, however, that for steel containing 0.40 per cent of carbon or less, the
percentage of carbon is a fairly reliable guide to the hardness or cutting speed.

The physical properties of steel constitute a fairly accurate guide to its cutting speed;
and these properties are best indicated by the tensile strength and percentage of
stretch and contraction of area obtained from standard tensile test bars cut from
such a position in the body of the forging as to represent its average quality and then
broken in a testing machine.

A study of the data shows that in general the cutting speeds grow slower as the
percentage of carbon in the steel to be cut grows greater. In general, also, it will be
noted that the cutting speed becomes slower as the tensile strength of the metal
becomes higher, and that the cutting speed grows faster as the percentage of
stretch increases.

Taylor explained his concept of modern shop management of that time in a large
book size paper in 1903. The paper is now available as a book.

Shop Management

34
The art of management has been defined, "as knowing exactly what you want men
to do, and then seeing that they do it in the best and cheapest way." No concise
definition can fully describe an art, but the relations between employers and men
form without question the most important part of this art.

It is safe to say that no system or scheme of management should be considered

which does not in the long run give satisfaction to both employer and employee,
which does not make it apparent that their best interests are mutual, and which
does not bring about such thorough and hearty cooperation that they can pull
together instead of apart.

What the workmen want from their employers beyond anything else is high wages,
and what employers want from their workmen most of all is a low labor cost of
manufacture.

These two conditions are not diametrically opposed to one another as would appear
at first glance. On the contrary, they can be made to go together in all classes of
work, without exception, and in the writer's judgment the existence or absence of
these two elements forms the best index to either good or bad management.

The possibility of coupling high wages with a low labor cost rests mainly upon the
enormous difference between the amount of work which a first-class man can do
under favorable circumstances and the work which is actually done by the average
man.

Both installing and maintaining favorable circumstances and identifying and

developing first class men are the responsibility of managers only. No doubt each
individual employee is an important contributor to the production process and his
enthusiasm every day is required and has to be promoted by the society as well as
the organization managers, his initial selection and education/training and
development for higher responsibilities are all duties of managers.

Industrial Engineering Described in Shop Management by F.W. Taylor

https://nraoiekc.blogspot.com/2019/06/industrial-engineering-described-in.html

Taylor developed his shop management and productivity improvement theories

initially in machine shops and later extended to other industrial activities. In
production systems where machine is the important working component, the large
increase in output is due partly to the actual physical changes, either in the machines
or small tools and appliances (facilities industrial engineering).

Task Management - F.W. Taylor

http://nraoiekc.blogspot.com/2013/08/task-management-fw-taylor.html

35
Modern engineering can almost be called an exact science; each year removes it
further from guess work and from rule-of-thumb methods and establishes it more
firmly upon the foundation of fixed principles. Productivity improvement
engineering will also become exact science.

In the case of a machine shop doing miscellaneous work, before each casting or
forging arrives in the shop the exact route which it is to take from machine to
machine should be laid out. An instruction card for each operation must be written
out stating in detail just how each operation on every piece of work is to be done
and the time required to do it, the drawing number, any special tools, jigs, or
appliances required, etc. Before the four principles of productivity improvement
through task allotment and management can be successfully applied it is also
necessary in most shops to make important physical changes. It is the first principle
actually. The work of the machine has to be standardized, meaning it has to be
planned for maximum productivity. All of the small details in the shop, which are
usually regarded as of little importance must be thoroughly and carefully
standardized; such details, for instance, as the care and tightening of the belts; the
exact shape and quality of each cutting tool; the establishment of a complete tool
room from which properly ground tools, as well as jigs, templates, drawings, etc., are
issued under a good check system, etc.; and as a matter of importance (in fact, as
the foundation of scientific management) an accurate study of unit times required
for each machine tool operation must be made by one or more men connected with
the planning department, and each machine tool must be standardized and a table
or slide rule constructed for it showing how to run it to the best advantage.

Importance of Task Organization - F.W. Taylor - F.W. Taylor

http://nraoiekc.blogspot.com/2013/08/importance-of-people-organization-fw.html

Modern engineering proceeds with comparative certainty to the design and

construction of a machine or structure of the maximum efficiency with the minimum
weight and cost of materials, while the old style engineering at best only
approximated these results and then only after a series of breakdowns, involving the
practical reconstruction of the machine and the lapse of a long period of time.
Industrial engineering has to provide completion times for various machine tasks as
well as manual tasks like design of machine elements.

Modern Engineering and Modern Shop Management - F.W. Taylor

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The conditions standardization principle of task management (standardized

conditions of "machine") is a necessary preliminary for productivity management
under task management or differential piece rate systems.

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Task Work - Some More Thoughts - F.W. Taylor
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Machine Tool Time Estimation Methods

Methods employed in solving the time problem for machine tools.

As a machine shop has been chosen to illustrate the application of such details of
scientific management as time study, the planning department, functional
foremanship, instruction cards, etc., the description of the methods employed in
solving the time problem for machine tools has to be included at least briefly.

Methods employed in solving the time problem for machine tools

This issue was already explained in art of metal cutting above.

Time Study - 1903 Explanation by F.W. Taylor -

Process Time Reduction Study
The time study is the method for reducing the process time. Machine time and
manual work time are important components of process time. Time is reduced by
redesigning the operations and elements in the process using time as the basis of
measurement. The time study should be minute and exact. Each job should be
carefully subdivided into its elementary operations, and each of these unit times
should receive the most thorough time study.

The art of studying unit times is quite as important and as difficult as that of the
draftsman. It should be undertaken seriously, and looked upon as a profession. It has
its own peculiar implements and methods, without the use and understanding of
which progress will necessarily be slow, and in the absence of which there will be
more failures than successes scored at first.

Mr. Thompson has developed what are in many respects the best implements in use,
and with his permission some of them will be described. The blank form or note
sheet used by Mr. Thompson, contains essentially:

(1) Space for the description of the work and notes in regard to it.

(2) A place for recording the total time of complete operations--that is, the gross
time including all necessary delays, for doing a whole job or large portions of it.

37
(3) Lines for setting down the "detail operations, or units" into which any piece of
work may be divided, followed by columns for entering the averages obtained from
the observations.

(4) Squares for recording the readings of the stop watch when observing the times of
these elements. If these squares are filled, additional records can be entered on the
back. The size of the sheets, which should be of best quality ledger paper, is 8 3/4
inches wide by 7 inches long, and by folding in the center they can be conveniently
carried in the pocket, or placed in a case containing one or more stop watches.

This case, or "watch book," is another device of Mr. Thompson's. It consists of a

frame work, containing concealed in it one, two, or three watches, whose stop and
start movements can be operated by pressing with the fingers of the left hand upon
the proper portion of the cover of the note-book without the knowledge of the
workman who is being observed. The frame is bound in a leather case resembling a
pocket note-book, and has a place for the note sheets described.

To obtain accurate average times, for any item of work under specified conditions, it
is necessary to take observations upon a number of men, each of whom is at work
under conditions which are comparable. The total number of observations which
should be taken of any one elementary unit depends upon its variableness, and also
upon its frequency of occurrence in a day's work.

In making time observations, absolutely nothing should be left to the memory of the
time study man. Every item, even those which appear self-evident, should be
accurately recorded.

It is a good plan to pay a first-class man an extra price while his work is being timed.
When work men once understand that the time study is being made to enable them
to earn higher wages, the writer has found them quite ready to help instead of
hindering him in his work. The division of a given job into its proper elementary units,
before beginning the time study, calls for considerable skill and good judgment. If
the job to be observed is one which will be repeated over and over again, or if it is
one of a series of similar jobs which form an important part of the standard work of
an establishment, or of the trade which is being studied, then it is best to divide the
job into elements which are rudimentary. In some cases this subdivision should be
carried to a point which seems at first glance almost absurd.

http://nraoiekc.blogspot.com/2013/08/time-study-by-fw-taylor.html

The first move before in any way stimulating operators toward a larger output was
to insure against a falling off in quality.
Bicylcle Ball Inspection Case Study - F.W. Taylor - As Described in Shop Management
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38
Time study for all operations done by the various machines.

This information is best obtained from slide rules, one of which is made for each
machine tool or class of machine tools throughout the works; one, for instance, for
small lathes of the same type, one for planers of same type, etc. These slide rules
show the best way to machine each piece and enable detailed directions to be given
the workman as to how many cuts to take, where to start each cut, both for
roughing out work and finishing it, the depth of the cut, the best feed and speed,
and the exact time required to do each operation.

Production Planning and Control - F.W.Taylor

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In the metal working plant which we are using for purposes of illustration a start for
productivity improvement can be made at once along all of the following lines:

First. The introduction of standards throughout the works and office.

Second. The scientific study of unit times on several different kinds of work.

Third. A complete analysis of the pulling, feeding power and the proper speeding of
the various machine tools throughout the place with a view of making a slide rule for
properly running each machine.

Fourth. The work of establishing the system of time cards by means of which
ultimately all of the desired information will be conveyed from the men to the
planning room.

To illustrate: For nearly two and one-half years in the large shop of the Bethlehem
Steel Company, one speed boss after another was instructed in the art of cutting
metals fast on a large motor-driven lathe which was especially fitted to run at any
desired speed within a very wide range. The work done in this machine was entirely
connected, either with the study of cutting tools or the instruction of speed bosses.
It was most interesting to see these men, principally either former gang bosses or
the best workmen, gradually change from their attitude of determined and positive
opposition to that in most cases of enthusiasm for, and earnest support of, the new
methods. It was actually running the lathe themselves according to the new method
and under the most positive and definite orders that produced the effect. The writer
himself ran the lathe and instructed the first few bosses. It required from three
weeks to two months for each man.

Train Foremen and Operators in High Productivity - F.W. Taylor

39
http://nraoiekc.blogspot.com/2013/08/train-operators-in-high-productivity.html

The first of the functional foremen to be brought into actual contact with the men
should be the inspector; and the whole system of inspection, with its proper
safeguards, should be in smooth and successful operation before any steps are taken
toward stimulating the men to a larger output; otherwise an increase in quantity will
probably be accompanied by a falling off in quality.

The inspector is responsible for the quality of the work, and both the workmen and
speed bosses must see that the work is all finished to suit him. This man can, of
course, do his work best if he is a master of the art of finishing work both well and
quickly.

Next choose for the application of the two principal functional foremen, viz., the
speed boss and the gang boss, that portion of the work in which there is the largest
need of, and opportunity for, making a gain.

The gang boss has charge of the preparation of all work up to the time that the piece
is set in the machine. It is his duty to see that every man under him has at all times at
least one piece of work ahead at his machine, with all the jigs, templates, drawings,
driving mechanism, sling chains, etc., ready to go into his machine as soon as the
piece he is actually working on is done. The gang boss must show his men how to set
their work in their machines in the quickest time, and see that they do it. He is
responsible for the work being accurately and quickly set, and should be not only
able but willing to pitch in himself and show the men how to set the work in record
time.

The speed boss must see that the proper cutting tools are used for each piece of
work, that the work is properly driven, that the cuts are started in the right part of
the piece, and that the best speeds and feeds and depth of cut are used. His work
begins only after the piece is in the lathe or planer, and ends when the actual
machining ends. The speed boss must not only advise his men how best to do this
work, but he must see that they do it in the quickest time, and that they use the
speeds and feeds and depth of cut as directed on the instruction card. In many cases
he is called upon to demonstrate that the work can be done in the specified time
by doing it himself in the presence of his men.

It is of the utmost importance that the first combined application of time study, slide
rules, instruction cards, functional foremanship, and a premium for a large daily task
should prove a success both for the workmen and for the company, and for this
reason a simple class of work should be chosen for a start. The entire efforts of the
new management should be centered on one point, and continue there until
unqualified success has been attained.

Introducing Functional Foremanship - F.W. Taylor

http://nraoiekc.blogspot.com/2013/08/introducing-functional-foremanship-fw.html

40
If, however, the management begins by analyzing in detail just how each section of
the work should be done and then writes out complete instructions specifying the
tools to be used in succession, the cone step on which the driving belt is to run, the
depth of cut and the feed to be used, the exact manner in which the work is to be
set in the machine, etc., and if before starting to make any change they have trained
in as functional foremen, several men who are particularly expert and well informed
in their specialties, as, for instance, a speed boss, gang boss, and inspector; if you
then place for example a speed boss alongside of that workman, with an instruction
card clearly written out, stating what both the speed boss and the man whom he is
instructing are to do, and that card says you are to use such and such a tool, put your
driving belt on this cone, and use this feed on your machine, and if you do so you will
get out the work in such and such a time, I can hardly conceive of a case in which a
union could prevent the boss from ordering the man to put his driving belt just
where he said and using just the feed that he said, and in doing that the workman
can hardly fail to get the work out on time. No union would dare to say to the
management of a works, you shall not run the machine with the belt on this or that
cone step. They do not come down specifically in that way; they say, "You shall not
work so fast," but they do not say, "You shall not use such and such a tool, or run
with such a feed or at such a speed."

However much they might like to do it, they do not dare to interfere specifically in
this way. Now, when your single man under the supervision of a speed boss, gang
boss, etc., runs day after day at the given speed and feed, and gets work out in the
time that the instruction card calls for, and when a premium is kept for him in the
office for having done the work in the required time, you begin to have a moral
suasion on that workman which is very powerful. At first he won't take the premium
if it is contrary to the laws of his union, but as time goes on and it piles up and
amounts to a big item, he will be apt to step into the office and ask for his premium,
and before long your man will be a thorough convert to the new system. Now, after
one man has been persuaded, by means of the four functional foremen, etc., that he
will earn more money under the new system than under the laws of the union, you
can then take the next man, and so convert one after another right through your
shop, and as time goes on public opinion will swing around more and more rapidly
your way.

Personal Relations Between Employers and Employed - F.W. Taylor

http://nraoiekc.blogspot.com/2013/08/personal-relations-between-employers.html

The remarkable system for analyzing all of the work upon new machines as the
drawings arrived from the drafting-room and of directing the movement and
grouping of the various parts as they progressed through the shop, which was
developed and used for several years by Mr. Wm. II. Thorne, of Wm. Sellers & Co., of
Philadelphia, while the company was under the general management of Mr. J. Sellers

41
Bancroft. Unfortunately the full benefit of this method was never realized owing to
the lack of the other functional elements which should have accompanied it.

Best Practices in Shop Management - 1911 - F.W. Taylor

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Scientific Management

Taylor authored "Scientific Management" in 1911 and it was focused totally on the
study and improvement of human effort as in this paper, Taylor specifically
highlighted waste of human effort and ways to prevent it.

Importance of System for Human Work Efficiency - F.W. Taylor

President Roosevelt in his address to the Governors at the White House,

prophetically remarked that "The conservation of our national resources is only
preliminary to the larger question of national efficiency."

The whole country at once recognized the importance of conserving our material
resources and a large movement has been started which will be effective in
accomplishing this object.

We can see our forests vanishing, our water-powers going to waste, our soil being
carried by floods into the sea; and the end of our coal and our iron is in sight. But our
larger wastes of human effort, which go on every day through such of our acts as are
blundering, ill-directed, or inefficient, are less visible, less tangible, and are but
vaguely appreciated.

We can see and feel the waste of material things. Awkward, inefficient, or ill-directed
movements of men, however, leave nothing visible or tangible behind them. And for
this reason, even though our daily loss from this source is greater than from our
waste of material things, the one has stirred us deeply, while the other has moved us
but little.

It is only when we fully realize that our duty, as well as our opportunity, lies in
systematically cooperating to train and to make this competent man, to be on the
road to "true" national efficiency.

The first object of any good management system must be that of developing
first-class men; and under systematic management the best man rises to the top
more certainly and more rapidly than ever before.

42
The paper "Scientific Management" has been written:

First. To point out, through a series of simple illustrations, the great loss which the
whole country is suffering through inefficiency in almost all of our daily acts.

Second. To try to convince the reader that the remedy for this inefficiency lies in
systematic management, rather than in searching for some unusual or extraordinary
man.

Third. To prove that the best management is a true science, resting upon clearly
defined laws, rules, and principles, as a foundation. And further to show that the
fundamental principles of scientific management are applicable to all kinds of human
activities, from our simplest individual acts to the work of our great corporations,
which call for the most elaborate cooperation. And, briefly, through a series of
illustrations, to convince the reader that whenever these principles are correctly
applied, results must follow which are truly astounding.

This paper was originally prepared for presentation to the American Society of
Mechanical Engineers. The illustrations chosen are such as, it is believed, will
especially appeal to engineers and to managers of industrial and manufacturing
establishments, and also quite as much to all of the men who are working in these
establishments. It is hoped, however, that it will be clear to other readers that the
same principles can be applied with equal force to all social activities: to the
management of our homes; the management of our farms; the management of the
business of our tradesmen, large and small; of our churches, our philanthropic
institutions our universities, and our governmental departments.

The system developed, implemented and advocated by Taylor is based on four

principles of scientific management.

The Principles of Scientific Management

Under scientific management managers assume new burdens, new duties, and
responsibilities never dreamed of in the past. The managers assume, the burden of
study and recording of work by workmen and then of classifying, tabulating, and
reducing this knowledge to rules, laws, and formulae which are immensely helpful to
the workmen in doing their daily work. In addition to developing a science in this
way, the management takes on three other types of duties which involve new and
heavy burdens for themselves.

These new duties are grouped under four heads:

First. They develop a science for each element of a man's work, which replaces the
old rule-of.-thumb method.

Second. They scientifically select and then train, teach, and develop the workman,
whereas in the past he chose his own work and trained himself as best he could.

43
Third. They heartily cooperate with the men so as to insure all of the work being
done in accordance with the principles of the science which has been developed.

Fourth. There is an almost equal division of the work and the responsibility between
the management and the workmen. The management take over all work for which
they are better fitted than the workmen, while in the past almost all of the work and
the greater part of the responsibility were thrown upon the men.

Under scientific management the "initiative" of the workmen (that is, their hard
work, their good-will, and their ingenuity) is obtained with absolute uniformity and
to a greater extent than is possible under the old system.

It is this combination of the initiative of the workmen, coupled with the new types of
work done by the management, that makes scientific management so much more
efficient than the old plan.

Contribution of F.W. Gilbreth

Frank B. Gilbreth, the construction engineer and contractor, who conceived the
"Motion Study" Principles (techniques for manual productivity improvement) once
visited a British-Japanese Exposition. There a demonstration of polishing shoes was
being held to help the sales of Japanese shoe polish.

Casually walking and talking with his friend, Gilbreth stopped to view the shoe polish
wrapping demonstration. Gilbreth watched for a few moments, then simply said,
"They are really skilled, but they could produce more." He timed the fastest girl and
without hesitation, ascended the platform. He found she was being paid on a
piecework basis and said, "I’m going to tell you how to earn more money, but you
must follow my instructions." He changed the location of her supplies and showed
her how to wrap and set aside more efficiently. He timed her again after several
cycles. When he rejoined his friend he said, "When she gets the hang of it she’ll be
making twice her former earnings."

That is an example of the applied results of using Gilbreth’s Motion Study Principles.
Industrial Engineers used these guiding rules throughout the United States. Gilbreth
said if his Motion Study Principles had not been previously applied to any manual
work, by their application the productivity would be doubled or more.

In the late 1940’s, James S. Perkins, an Industrial Engineer, on a research assignment

for the Western Electric Company, was at the University of Iowa, where he met Mrs.
Gilbreth, who was a speaker at the Industrial Engineering Conference there. She

44
visited with him and reviewed his research. Gilbreth’s film studies, research and
conclusions, preserved by James Perkins extend into many diverse areas:

•Motion and Fatigue Study

•Skill Study
•Plant Layout and Material Handling
•Inventory Control
•Production Control
•Business Procedures
•Safety Methods
•Developing Occupations for the Handicapped
•Athletic Training and Skills
•Military Training
•Surgical Operations

Gilbreth developed the route model technique to improve the flow of materials
(material transport operation) in manufacturing operations. When he first developed
it, Gilbreth said that several of his engineering friends, at an engineering meeting,
laughed themselves to death, but that it was quickly accepted by Plant Managers. He
found that by its use, the layout distance was often cut by 75% and product
processing time was reduced substantially. Further, plant productivity was usually
increased by 15 to 25%. Gilbreth is much more known for his work in human effort
improvement and his wife, a psychologist also took interest in scientific management
and produced research on it. Dr. Lilian Gilbreth also became a professor of industrial
engineering.

Gilbreth’s cyclegraph technique, to learn about skill, was one of his significant
contributions. He demonstrates this technique in the film and also shows the
three-dimensional model he made from the pictures of a drilling operation. He said,
"The expert uses the motion model for learning the existing motion path and the
possible lines for improvement. An efficient and skillful motion has smoothness,
grace, strong marks of habit, decision, lack of hesitation and is not fatiguing."

Gilbreth's motion study was described by Taylor in his book "Scientific

Management."

"Time and Motion Study" or "Motion and Time Study" based on the motion study
theory of Gilbreth became a prominent subject of industrial engineering. Therefore,
human effort engineering has significant presence in industrial engineering. Machine
work study is a neglected area in industrial engineering. Product industrial
engineering and process industrial engineering have to be developed in industrial
engineering curriculum to adequate levels. Practice of product industrial engineering
and process industrial engineering will give more opportunities and more consistent
and reliable output from industrial engineers (Narayana Rao K.V.S.S.).

An example of benefits from product industrial engineering and process industrial

engineering

45
3 Years - 50% Cost Reduction - Diplexer Line
https://nraoiekc.blogspot.com/2020/05/ie-continuous-improvement-3-years-50.htm
l

Illustration of Human Effort Productivity Improvement - Bricklaying Improvement by

Gilbreth

Contribution of Harrington Emerson

Harrington Emerson contributed to the systems efficiency focus of industrial

engineering. His book, Twelve Principles of Efficiency was a classic.

He discussed efficiency design of organization through 12 principles

1. Clearly defined ideals.

2. Common sense
3. Competent counsel
4. Discipline
5. The fair deal
6. Reliable, immediate and adequate records
7. Despatching
8. Standards and schedules
9. Standardized conditions
10. Standardized operations
11. Written standard-practice instructions
12. Efficiency-reward

Standards and standardization as a basis for efficiency was strongly advocated by

him. Nearly two hundred companies adopted various features of the Emerson
Efficiency system, which included production routing procedures, standardized
working conditions and tasks, time and motion studies, and a bonus plan which
raised workers' wages in accordance with greater efficiency and productivity [Guide].

Managerial aspects of efficiency improvement has to be learned from the reading of

Emerson's book.

Industrial Engineering Principles

46
Principles, Methods Tools and Techniques

An explanation says principles are scientific theories or cause and effect relationships.
They are of permanent nature until revised due to empirical studies and
identification of new facts.

Methods are general approaches that use the scientific principle or principles for
beneficial use. They are also of permanent nature.

Tools are contemporaneous ways of implementing methods.

Basic Principles of Industrial Engineering - Narayana Rao

1. Develop science for each element of a man - machine system's work related to
efficiency and productivity.

2. Engineer methods, processes and operations to use the laws related to the work
of machines, man, materials and other resources.

3. Select or assign workmen based on predefined aptitudes for various types of man
- machine work.

4. Train workmen, supervisors, and engineers in the new methods.

5. Incorporate suggestions of operators, supervisors and engineers in the methods

redesign on a continuous basis.

6. Plan and manage productivity at system level.

Principles of Industrial Engineering - Narayana Rao

The full paper by Prof. K.V.S.S. Narayana Rao is now in proceedings of IISE 2017
Annual Conference. The proceedings is in Proquest journal database.
https://www.proquest.com/docview/1951119980

47
Detailed List of Principles - Presented at IISE 2017 Annual Conference at Pittsburgh
on 23 May 2017.

Principles of Industrial Engineering - Narayana Rao - Detailed

List

1. Productivity science
2. Productivity engineering
3. Industrial Engineering is applicable to all branches of engineering
4. Principles of (machine) utilization economy to be used in designing and
redesigning machine work.
5. Industrial engineering optimization

6. Industrial engineering economics

7. Implementation team membership and leadership
8. Human effort industrial engineering for increasing productivity
9. Principles of motion economy to be used in all IE studies in the area of human
effort industrial engineering
10. Operator comfort and health are to be taken care of.

11. Work measurement

12. Selection of operators
13. Training of operators, supervisors and engineers
14. Productivity training and education to all
15. Employee involvement in continuous improvement of processes and products for
productivity improvement.

16. Productivity incentives

17. Hearty cooperation
18. Productivity Management
19. System level focus for productivity
20. Productivity measurement

21. Cost measurement

1. Productivity science

Develop a science for each element of a man - machine system's work related to
efficiency and productivity.

48
The productivity science developed is the foundation for industrial engineering in
productivity engineering and productivity management phases.

F.W. Taylor made the initial experiments to develop productivity science of machines
as well as for men. The experiments done by Taylor in the case of machines, tools
and cutting parameters were many over a period of 30 years. Similarly, Gilbreth
proposed and wrote on the development of science for human effort and he
published number of papers in the area of productivity science of human effort.
Ralph Barnes did his Phd work in the area of productivity science of human effort.

Productivity Science Definition

“Productivity science is scientific effort, that in any specific work situation, identifies
the appropriate philosophy, culture, systems, processes, technology, methods and
human physical action and behavior and elements of each of them of that will
maximize positive (social, environmental and economic) outcomes relative to the
resources consumed.” - Narayana Rao (IISE 2020 Annual Conference Proceedings)

Productivity science of machine identifies machine related variables that will

increase productivity. These variables will be different for different categories of
machines even though some variables are more general and apply to all machines or
many categories of machines.

Machining or Machine Tool Productivity Science

Variables that have an effect on productivity of machining operations.

1. Selection of the machining process. Right selection of the machining process is

important. There can be choice between turning and grinding.
2. Selection of machine tool.
3. Selection of cutting tool.
4. Selection of tool holder. Modular systems, quick change systems etc.
5. Calculation and measurement of cutting forces and their planning using various
alternatives.
6. Measurement and planning of temperature in the cutting zone.
7. Selection of fixture. Measurement and planning of clamping forces in fixtures.
8. Tool wear estimation and selection of appropriate tool life.
9. Process planning to attain surface finish required.
10. Understanding the machinability characteristics of the material.
11. Analysis and planning of rigidity and vibrations of the machine.
12. Selection of cutting fluid. Now even dry machining is advocated.

49
13. Utilizing high speed machines and high throughput machining processes.
14. Utilizing design for machining in the part as well as in planning various cuts.
15. Economic analysis and optimization of machining process

Productivity Science of Machine - Machining - F.W. Taylor

Taylor is the pioneer in doing productivity studies on machine tools.
https://nraoiekc.blogspot.com/2019/09/productivity-science-of-machine.html

Productivity Science of Human Effort

Frank B. Gilbreth - VARIABLES THAT AFFECT MOTION ECONOMY

Every element that makes up or affects the amount of work that the worker is able
to turn out has to be identified and adjusted appropriately to increase productivity.
The variables related to human effort productivity group themselves naturally into
the following divisions as per the thinking of Gilbreth:

I. Variables of the Worker.

1 . Anatomy.

2. Brawn.

3. Contentment.

4. Creed.

5. Earning Power.

6. Experience.

7. Fatigue.

8. Habits.

9. Health.

10. Mode of living.

11 . Nutrition.

12. Size.

50
13. Skill.

14. Temperament.

15. Training.

II. Variables of the Surroundings, Equipment, and Tools.

1. Appliances.

2. Clothes.

3. Colors.

4. Entertainment, music, reading, etc.

5. Heating, Cooling, Ventilating.

6. Lighting.

7. Quality of material.

8. Reward and punishment.

9. Size of unit moved.

10. Special fatigue-eliminating devices.

11. Surroundings.

12. Tools.

13. Union rules.

14. Weight of unit moved.

III. Variables of the Specific Motion.

1. Acceleration.

2. Automaticity.

3. Combination with other motions and sequence.

4. Cost.

51
5. Direction.

6. Effectiveness.

7. Foot-pounds of work accomplished.

8. Inertia and momentum overcome.

9. Length.

10. Necessity,

11. Path.

12. "Play for position."

13. Speed.

Productivity Science of Human Effort - More Detail - F.W. Gilbreth's Motion Study
https://nraoiekc.blogspot.com/2019/09/productivity-science-of-human-effort-fw.ht
ml

Productivity Science - Determinants of Productivity

Frameworks of Productivity Science of Machine Effort and Human Effort by

Narayana Rao - Paper is presented in the IISE 2020 Annual Conference and is part of
the proceedings.

Frameworks for Productivity Science of Machine Effort and Human Effort

Rao, Kambhampati Venkata Satya Surya Narayana.
IIE Annual Conference. Proceedings; Norcross (2020): 429-434.
https://www.proquest.com/openview/5786c4e6edff56abf808b4db26f083b3/1?pq-o
rigsite=gscholar&cbl=51908

Kambhampati,Venkata Satya Surya Narayana Rao. (2017). Principles of industrial

engineering. IIE Annual Conference.Proceedings, , 890-895.
https://search.proquest.com/docview/1951119980

30 Factors that Affect Productivity

Given by Prof Paul Mali in the year 1978 in Improving Total Productivity, John Wiley
& Sons, New York.

52
Fourth Level Factors (Affect most directly): Effectiveness (Focus on customer
requirements), Efficiency (Focus on planned resource consumption)

Third Level Factors: Skills, Motivation, Methods, Cost (measurement, may include
time and productivity measurements also).

Second Level Factors: Leadership, Experience, Climate, Incentives, Schedules,

Organizational structure, Technology and Materials.

First Level Factors (Affect least directly): Abilities, Style, Training, Knowledge,
Physical conditions, Unions, Social awareness, Aspiration levels, Processes, Job
design, Goals, Policies, R & D, Plant and Equipment, Standards, and Quality.
Principles of Productivity Growth

Given by Prof Paul Mali in the year 1978 in Improving Total Productivity, John Wiley
& Sons, New York.

1. Principles of Ratio Time Measurement

Productivity is more likely to improve when expected results are measured and
made greater in the same time frame that expected resources are measured and
made less.

2. Principles of Shared Gain

Productivity increases rapidly when its expected benefits are shared with those who
will produce it.

3. Principle of Expectancy Alignment

The greater the alignment of employee expectancies (needs) with organizational

objectives (targets), the greater the motivation to accomplish both.

4. Principle of Worker Accountability

Accountability for productivity is more likely to happen when employees understand,

participate in, and are held responsible for productivity objectives, measurement,
and evaluation.

5. Principles of Focus

The greater the focus toward productivity objectives on a time scale, the greater the
likelihood of achieving these objectives.

6. Principle of Creating Potential Productivity

53
Productivity gains are more likely to be achieved from situations where the potential
for productivity gain is created.

7. Principle of Continuance

Productivity tends to continue when achieving an objective does not incapacitate or

destroy any of the factors which produced it.

8. Principle of Work Justice

Productivity is more likely to continue when employees are given equal pay for equal
work; when employers are given equal work for equal pay.

9. Principle of Elasticity

Productivity tends to increase when the same amount of work is achieved in a

shorter period of time.

10. Principle of Resource Priority

Productivity increases when objectives for productivity set the priorities for resource
allocation.

Source:
http://nraoiekc.blogspot.com/2017/06/productivity-science-principle-of.html

2. Productivity engineering

Productivity Engineering - Principle of Industrial Engineering

Industrial engineering is concerned with redesign of engineering systems with a view

to improve their productivity. Industrial engineers analyze productivity of each
resource used in engineering systems and redesign as necessary to improve
productivity.

It has to be ensured that the increase in productivity due to the use of low-cost
materials, processes and increasing speed of machines and men, should not lead to
any decrease in quality of the output (Principle of Quality in Industrial Engineering).

Similarly, operators should not feel any discomfort, not have any health problems or
safety issues in the redesigned more productive processes (Principles of Operator
Comfort, Safety and Health).

Developments in Productivity science provide more and more directions for

productivity engineering over the period.

54
Productivity Engineering

Productivity engineering is applied to engineering elements in products or services

and processes. Engineering elements, activities, operations and processes are
present in design, manufacturing, construction, maintenance, operation,
transportation, materials handling, and information processing etc. in industrial
organizations. Engineering processes are present in agriculture and related activities
and service businesses also.

Productivity Engineering - Focus Areas of Industrial Engineering

Product Industrial Engineering

https://nraoiekc.blogspot.com/2012/09/product-design-industrial-engineering.html

Process Industrial Engineering

https://nraoiekc.blogspot.com/2017/02/process-industrial-engineering.html

Human Effort Industrial Engineering

https://nraoiekc.blogspot.com/2017/09/human-effort-industrial-engineering.html

Facilities Industrial Engineering

Industrial engineering of factory building, machines, and other utilities.

Principles of Productivity Engineering - Mundel - Nadler

Methods Redesign for Efficiency/Productivity - Material, Product Design, Material

Transformation Steps, Machine Effort, Human Effort - Marvin Mundel, Gerald Nadler

Nadler credits Mundel for the following steps to be followed in methods redesign.

Product Industrial Engineering

1. Change the material being used or contemplated to help meet the goal for the
operation being studied.
2. Change the present or contemplated design of product to help meet the goal for
the operation being studied.

Process Industrial Engineering

3. Change the present or contemplated sequence of modification work on the

material or product to help meet the goal of for operation being studied.

55
4. Change the equipment used or contemplated for the operation to help meet the
goal for the operation being studied.

Human Effort Industrial Engineering

5. Change the method or hand pattern used or contemplated for the operation to
help the goal for operation being studied.

(Source: Gerald Nadler, Motion and Time Study, McGraw-Hill Book Company, New
York, 1955, p.193. Nadler in turn gives credit to Marvin E. Mundel, Motion and
Time Study Principles and Practice, Prentice-Hall, New York, 1950, pp. 23-26.)

Source:
http://nraoiekc.blogspot.com/2017/06/productivity-engineering-principle-of.html

3. Industrial Engineering is applicable to all branches of engineering

Industrial Engineering in All Branches of Engineering - Ubiquity Principle of Industrial

Engineering

Industrial engineering can be described as the combination of an engineering

field with the principles of industrial engineering derived from scientific
management of productivity. Badiru - Narayana Rao

Industrial engineering defined as system efficiency engineering has application in all

branches of engineering. Productivity improvement is needed in engineering systems
of all branches and therefore industrial engineering needs to be used in all branches
of engineering. It needs to be taught in all engineering branches.

Engineering subjects belong to one engineering branch or other. Every engineering

branch has product design process, process design process, production process,
inspection process, material handling process, storage process, equipment operating
process, equipment maintenance process, equipment replacement process,
equipment retirement process, reuse and recycling process.

Industrial engineers have to develop productivity science based on productivity

measurements for processes and output, do productivity engineering to improve
productivity and do productivity management to plan, manage and realize
productivity improvement. To do it, industrial engineers need to have the knowledge
of the concerned engineering subject, process or output.

An important problem in Industrial Engineering is that IE is not properly extended to

various engineering branches. IE has to be improvement and redesign of engineering

56
elements first. Not doing it means there is lot of waste in engineering designs and
processes. We are not even teaching IE in various branches. It means both faculty
and students of various branches of engineering do not even know the existence of a
subject focused on cost reduction through productivity improvement of engineering
resources.

An interesting way of promoting industrial engineering all engineering branches

Engineering Discipline Minors for IE Students - Louisiana State University

Minors of Interest to Industrial Engineers

Biological Engineering
Construction Management
Electrical and Computer Engineering
Environmental Engineering
Materials Science Engineering
Mechanical Engineering
Structural Engineering
Sugar Engineering
Surveying
Transportation Engineering
https://nraoiekc.blogspot.com/2018/12/engineering-discipline-minors-for-ie.html

Source:
http://nraoiekc.blogspot.com/2017/06/industrial-engineering-in-all-branches.html

4. Principles of (machine) utilization economy to be developed for all resources

used in engineering systems.

Machine Utilization Economy and Productivity Principle of Industrial Engineering

The principle can be restated better more appropriately. "Principles of resource

utilization economy and productivity to be developed for all resources used in
engineering systems."

Utilization economy and productivity principles are to be developed for each

resource used in the production processes. So far, in industrial engineering discipline,
principles of motion economy only are developed. There has to be research and
effort to develop similar principles for all resources.

Principles of motion economy for human effort industrial engineering. Principles of

machine economy for machine effort industrial engineering.

57
Taylor's Industrial Engineering - Machine Utilization Economy

Principles of Machine Productivity - F.W. Taylor

1. A careful study is to made of the time required to do each of the many elementary
operations of machining of components manufactured in the establishment.
2.These elementary operations are then classified, recorded, and indexed, and when
work is to be done, the job is first divided into its elementary operations, the time
required to do each elementary operation is found from the records, and the total
time for the job is summed up from these data.
3. This method is more effective than the method of estimating the time based on
time taken to do whole jobs of similar components.
4. To implement the principles, in the case of work done by metal-cutting tools, such
as lathes, planers, boring mills, etc., F.W. Taylor undertook a long and expensive
series of experiments to determine, formulate, and finally practically apply to each
machine the law governing the proper cutting speed of tools, namely, the effect on
the cutting speed of altering any one of the following variables : the shape of the
tool (i.e., lip angle, clearance angle, and the line of the cutting edge), the duration of
the cut, the quality or hardness of the metal being cut, the depth of the cut, and the
thickness of the feed or shaving.
5. The careful study of the capabilities of the machines and the analysis of the speeds
at which they must run is to be made.
6. Defects or shortcoming in machines will be realized when the best methods of
cutting metals are determined and the necessary modifications have to be made, if
possible. Otherwise, replacement needs to be done at the earliest economic
opportunity.
7. Systematization of many small details in the running of the machine shop, such as
the care of belting, the proper shape for cutting tools, and the dressing, grinding,
and issuing tools, oiling machines, issuing orders for work, and a host of other
minor methods and processes which may waste a machinist's time or machine time.
8. The care of the equipment is to be improved.

Machine Utilization Principle of Industrial Engineering - Prof. Ralph Barnes

1. Few people advocate using human labor to do work that can be done better and
cheaper by machines.

2. It is suggested that the best manual method and the best combination of manual
and machine method (mechanized) be developed and used as a basis for evaluating
a proposed automated process.

(Restated as: Compare best manual method, mechanized method and automated
method for each element of an operation and choose the best.)

3. If a large-volume fairly complex job is to be considered, a comparison would be of

the estimated cost to do each element of each suboperation manually, or in
mechanized way, or automatically.

58
Ralph Barnes is the first PhD in Industrial Engineering. He wrote the popular text,
Motion and Time Study.

Industrial engineers have to learn mechanization and automation that is engineering

very well and use it in industrial engineering to provide increased support of
machines to people to increase their productivity and standard of living.

Machine Utilization Principles - Nakajima

Total Productive Maintenance - Nakajima

The Definition of TPM

The Spread of TPM in Japan

How do TPM and TQC Differ?

The Basic Concepts of TPM

1. Maximizing Overall Equipment Effectiveness

2. Autonomous Maintenance
In factory automation, production workers do not have to operate machines
themselves. These operators asked to oversee machines can do inspection of the
automatic machines every day or week as per a plan and do routine maintenance.
Specialist maintenance persons can act as equipment doctors, who periodically do
expert diagnostic checks and do the required maintenance.

3. Small Group Activities in Maintenance

Similar to quality circles, zero defect movement groups and Jishu Kanri.

Program for Evolving TPM

1. Five Activities - Pillars

2.Twelve Steps to Evolve TPM

Maximizing Overall Equipment Effectiveness

Eliminating Six Big Losses

Autonomous Maintenance

Small Group Activities in Maintenance

59
Education and Training for Evolving TPM

‘Jishu Kanri’ activities in the Japanese steel industry Small group activities being
promoted by the industry as a whole
HIDEO SUGISAWA &KAZUO HIROSE
International Journal of Production Research, Volume 15, 1977 - Issue 6, Pages
523-538

The group activities called ‘ Jishu Kanri ’ by foremen and workers in the forefront of
production has been actively promoted in the Japanese Steel Industry by
establishing a committee for ’Jishu Kanri’ activities in the Japan Iron and Steel
Federation, with the positive cooperation of its member companies. Nearly 8 years
have elapsed since the establishment of this committee, and during this period the
ability and skill of the group leaders and members in managing group activities and
their awareness of problems and solutions have been greatly improved, thereby
contributing much to the improvement of quality, attainment of production targets,
reduction in the production costs, and improvement of safety.
https://www.tandfonline.com/doi/abs/10.1080/00207547708943147?journalCode=
tprs20

The Japan Iron & Steel Federation adopted the name "Jishu-Kanri (JK) Activities" to
generalize the uniqueness of small group activities in this industry. JK activities are
defined as "continuous group activities in which individual workers voluntarily
organize small groups, select leaders from among themselves, hold discussions on an
equal footing, and with their leaders as the nuclei, take up problems at the workshop,
set goals for the solution of the problems, and make efforts to achieve the goals with
participation by everyone".

Workers' voluntary problem solving activities cover a wide range such as product
quality enhancement, efficiency improvement, cost reduction, promoting safety at
the workshop, and others. In 1983, ensuring work safety was the top of activity
(27.4%). About 90% of the activities in 1993 related to four areas:
efficiency improvement (30.8%), cost reduction (24.6%), ensuring work safety (19.6%)
and product quality enhancement (14.6%).

Innovation and Jishu Kanri Activities in the Japanese Steel Industry,

YONEYAMA, Kikuji,
ECONOMIC JOURNAL OF HOKKAIDO UNIVERSITY, 24, 25-58, 1995

Jishu - mean by himself as per his decision

Jishu kanri is managing by himself, or his decisions
https://nihongomaster.com/japanese/dictionary/word/30338/jishu#

Hoshin Kanri

60
Hoshin means direction and Kanri means management in Japanese.
https://kanbanize.com/lean-management/hoshin-kanri/what-is-hoshin-kanri

Machine Work Study to Promote Machine Utilization Economy

Machine Work Study was proposed by Narayana Rao to emphasize the need to study
the machine and its engineering elements as part of industrial engineering studies.
Machine work study is related to the machine or tool and its proper use like motion
study is related to the man and his motions to do work with tools or completely with
hands. The issues to be covered in machine work study are already structured in
books on metal cutting and machine tools. The productivity dimension of the metal
cutting theory has to be covered in machine work study and methodology is to be
provided for doing machine work study. Operation analysis by Maynard and
Stegemerten provides the basic framework for doing machine work study.

Source:
http://nraoiekc.blogspot.com/2017/06/machine-utilization-economy-principle.html

5. Industrial engineering optimization

Optimization: Maximize the benefit. Minimize the cost. Maximize the difference.
Each engineering system design idea needs to be optimized to get the best desired
output and then only alternatives are to be compared for selection of the best
alternative.

IE alternatives, that is alternative engineering solutions, need to be optimized. The

discrete or continuous values which are possible due to various engineering
elements used have to be operated at values that give maximum desired benefit.

Industrial engineers develop engineering modifications to existing facilities and

processes to increase productivity while maintaining current effectiveness intact. In
the process chart based process improvement, they identify operations - material
processing, inspection, material handling, and storage to improve engineering of
each of them to improve performance.

Industrial Engineering Optimization

Engineering optimization is development of mathematical models of engineering

decisions and mathematically determining desired maximum or minimum values of
objective functions. Industrial engineers have to convert their engineering change
ideas into mathematical models and find the best solution or optimal solution. But in
industrial engineering studies, the first investigation is to find engineering changes
that are possible. Then both the existing configuration and new possible
configuration are subjected to engineering optimization procedure to find the best

61
result and then a decision is taken to stick to the current solution as optimized or
new solution as optimized.

Source:
http://nraoiekc.blogspot.com/2017/06/optimization-principle-of-industrial.html

6. Industrial engineering economics

Every industrial engineering change proposal must have the require rate of return.
Industrial engineers have to be good in engineering economic analysis. They have to
audit all engineering project proposals and help engineers to make the calculations
correctly and also explain to them the rationale of engineering economic analysis.

7. Implementation team membership and leadership

"IE = Design, Improvement and Installation of Systems." - AIIE, IIE, IISE

Industrial Engineering is Systems Efficiency Engineering - Narayana Rao

Industrial engineers study existing designs or proposed new designs of products and
processes and come out with redesigns. Industrial engineers have full responsibility
for implementing these redesigns. They have to become redesign implementation
team members or team leaders and ensure that redesigns are implemented and give
the productivity and cost reduction benefits, that were estimated in the economic
analysis of the redesign.

In industrial engineering, management is to be taught so that IEs successfully

manage the planning and implementation of their redesigns.

8. Human effort industrial engineering for increasing productivity

Human resources employed in engineering systems have their own needs. Industrial
engineers are unique in engineering disciplines in taking up the engineering of
human effort. They have to synthesize the theories of human sciences, some of
which are developed by industrial engineering also, to design human work for an
optimal combination of productivity, income, comfort, health, safety and satisfaction
of the employed.

9. Principles of motion economy to be used in all IE studies in the area of human

effort engineering

62
Operators use motions to work manually using hand tools and or to operate
machines. Principles of motion economy were developed by Gilbreth and others
based on the productivity science developed out of the frameworks created by
Taylor and Gilbreth. They need to be employed in human effort industrial
engineering in all engineering activities of the processes producing goods or services.
Many of these principles are applicable in human effort applied to non-engineering
activities also.

10. Operator comfort and health are to be taken care of.

As human effort engineers, industrial engineers are concerned with comfort and
health of operators.

The productivity improvement and the consequent extra production from a

man-machine combination should not lead to discomfort, fatigue and
musculoskeletal disorders.

Gilbreth (1921) Motion Study

Our duty is to study the motions and reduce them as rapidly as possible to standard
sets of least in number, least in fatigue, yet most effective motions.

11. Work measurement

To determine the best combination of motion elements, measurements of the time

required to do each motion as well as bundles of motion are needed.

Work time measurement is an important measure in industrial engineering to select

the best work method for machine elements, purely manual work elements or a
combination of man-machine work elements. It is useful to set day’s task for an
operator. Task-based incentives can be set based on the standard time which is an
output of work measurement.

Work measurement is to be used to identify best way of doing an element of work.

After a task is designed combining various elements the total time taken can be
specified by summing up the time estimate for each element. Now predetermined
time systems, the most popular being Most use this method.

Stop watch time study can be used on average trained operator to observe the time
taken for each elements and from these observations standard times can be
prescribed.

Measured calculated standard times of various tasks can be used to set daily task for
operators.

63
Task based incentives can be set based on the standard time which is an output of
work measurement.

12. Selection of operators

There has to be science that guides selection of operators. Management has to

select persons based on specified criteria for each category of jobs and then train
them specially. Now it is being termed competence based approach. Taylor made it a
principle in scientific management. Physical capacity, intelligence, aptitude,
knowledge, skill etc. are to be specified for each job category and appropriate way of
testing people for these specifications are to be developed by management.

13. Training of operators, supervisors and engineers

Taylor emphasized the importance of training in creating a change in the systems of

an organization in his writings. The following discussion is from Shop Management.

The most important and difficult task of the organizer (of change) will be that of
selecting and training the various functional foremen who are to lead and instruct
the workmen, and his success will be measured principally by his ability to mold and
reach these men. They cannot be found, they must be made. They must be
instructed in their new functions largely, in the beginning at least, by the organizer
himself; and this instruction, to be effective, should be mainly in actually doing the
work. Explanation and theory will go a little way, but actual doing is needed to carry
conviction.

To illustrate: For nearly two and one-half years in the large shop of the Bethlehem
Steel Company, one speed boss after another was instructed in the art of cutting
metals fast on a large motor-driven lathe which was especially fitted to run at any
desired speed within a very wide range. The work done in this machine was entirely
connected, either with the study of cutting tools or the instruction of speed bosses.
It was most interesting to see these men, principally either former gang bosses or
the best workmen, gradually change from their attitude of determined and positive
opposition to that in most cases of enthusiasm for, and earnest support of, the new
methods. It was actually running the lathe themselves according to the new method
and under the most positive and definite orders that produced the effect. The writer
himself ran the lathe and instructed the first few bosses. It required from three
weeks to two months for each man.
http://nraoiekc.blogspot.com/2013/08/train-operators-in-high-productivity.html

The speed foreman of the shop must be able to train operators to achieve specified
productivity.
The quality foreman of the shop must be able to train operators to produced the
specified quality in specified standard time. - F.W. Taylor.

64
14. Productivity training and education to all

Three Major Channels of Process Improvement.

1. Process Redesign by Process Planning Team.
2. Process Improvement Study by Industrial Engineering Team.
3. Continuous Improvement by Involving Shop Floor Employees and All Employees.

Industrial engineers have to create productivity orientation in all employees and

managers of the company/organization. They have to provide relevant input to the
process planning team in productivity improvement philosophy and methods. They
also have to provide education and inputs to supervisors and operators of the
shopfloor. F.W. Taylor advocated training supervisors first in new processes and
supervisors train operators. Alan Mogensen, an industrial engineer, pioneered work
simplification education and training to operators and supervisors to enhance their
productivity improvement skills. Lilian Gilbreth collaboratd with Mogensen. Kaizen,
the Japanese continuous improvement movement arose out of TWI workshops
organized by USA persons in Japan after World War II. In the TWI, there is job
improvement training for supervisors which is based on work simplification
workshops of Mogensen.

Today, Industrial engineering department is responsible for continuous

improvement activity of the shopfloor personnel and has to organize programs and
activities to get full benefit of knowledge and experience of the shopfloor personnel.

15. Employee involvement in continuous improvement of processes and products

for productivity improvement.

Industrial engineering is continuous (incremental studies) improvement in the

engineering system through periodic studies (Process study, operation study, time
study, motion study, method study, layout improvement study etc.). In addition
encourage Continuous Improvement through Employee Participation. Employee
participation recommended by Taylor. Gilbreth explicitly made it as part of process
chart procedure. Alan Mogensen made it a special workshop for supervisors and
operators. He also advocated providing training to them in process chart analysis
procedure. Continuous improvement was practiced in a best possible way by Toyota
Motors. Now companies world over are trying to implement the best practice of
Toyota in the continuous improvement alternative along with the other two
alternatives.

16. Productivity incentives

Taylor stated that high productivity and high incomes go together.

Productivity incentives are the vehicle for providing higher income for higher
productivity taking into account individual differences. When the incentive is related
to the quantity and quality of the output, the persons putting in effort to increase
their skill as well as to produce more will get more income.

65
Productivity improvement will be done only when it is beneficial to people involved.
Customers, employees and company have to get the benefit. Customers have to get
price reduction, employees extra income and company extra profits through cost
reduction per unit.

In the initial days of implementation of new productivity methods or process,

employees are given incentives in proportion to the incremental extra production
achieved and it is called incentive. After the process is stabilized, the fixed monthly
or weekly payments are increased. Incentives are offered once again when new
more productive methods are implemented.

Frederick Taylor's System for Rapidly Attaining The Maximum Productivity (1895).
Advantages: 1. Cost Reduction 2. Maximum productivity of each machine and man.
The system has two important steps. First one is to improve the elements of the
work task to give more productivity. Second is to give incentive to the operators to
learn and produce more as the new method designed by industrial engineering. We
need to remember that in case of engineering tasks, process planners first design the
process of producing any part or service. Industrial engineers improve the process
periodically based on studies (process improvement study based on process chart,
time study, method study, and motion study etc.) and implement suggestions based
on the continuous flow of them from various employees of the organization
including operators and supervisors. The productivity increase specified in the new
processes need to be achieved in working by the operators. They are given
incentives to reach the targets or rates of production for unit period. The most
important part of the system is IE or productivity engineering. The managerial part is
incentive payment that brings interest and commitment in operators to learn the
new process and achieve its potential.
http://nraoiekc.blogspot.com/2018/07/frederick-taylors-piece-rate-system.html

The principle is part of 12 principles of efficiency by Harrington Emerson. Harrington

Emerson's Twelfth Efficiency (Productivity Management) Principle: Efficiency
Reward.

17. Hearty cooperation

How to develop hearty cooperation?

F.W. Taylor included hearty cooperation as a principles in Scientific management.

But how to achieve hearty cooperation was not described by him. As an engineer by
education and profession, he is not the right person to discuss how to achieve it. In
his writing he might have mentioned some acts he has done to increase cooperation.
Henri Fayol in his essay on "General and Industrial Administration" also included
cooperation as a principle. Chester Barnard discussed cooperation in much more
detail. At the present moment, Organizational Behavior is the subject that is

66
discussing cooperation in more detail as the subject is concerned with managers and
employees in organizations.

Industrial engineers have to master the subject of Organizational Behavior,

implement it in the practice and must engage continuous discussion regarding the
utility and limitation of the concepts, relations, and implications developed so far in
the discipline.

18. Productivity Management

Every industrial engineer is a productivity manager.

He has to learn complete management theory and its application in IE practice.
He has to plan for productivity and achieve productivity improvement year after
year.

As a part of productivity management, he has to assess management actions of the

organization for effect on productivity and has to recommend changes if they have
an adverse effect on productivity or if there is scope for increasing productivity by
modifying them.

19. System level focus for productivity

The focus for efficiency and productivity increase in machine elements and process
elements is to benefit at the system level.

20. Productivity measurement

Productivity measures at the enterprise level, process level, operation and work
station level are required. It is important to highlight that productivity measurement
is required for each input into the operation. For instance, you have measure
productivity of cutting fluid in machining. Industrial have to assess the productivity
of each element or input.

To maintain system level focus, productivity measures at system level have to be

developed and used.

The relation between productivity measures at the enterprise level, process level,
and work station level have to be established to facilitate decision making.

21. Cost measurement

Cost Measurement - Principle of Industrial Engineering

Productivity improvement has to lead to decreased cost at the unit level for products.
The ultimate proof of productivity improvement is the reduced unit cost reflected in
the reported unit cost of products. As cost accounting is a well-developed

67
independent area now with statutory bodies in many countries, industrial engineers
have to work in cooperation with them to get the representative cost figures that
are reliable for decision making.

Industrial engineers have to know at the start of the year, the unit cost figures of
various products being produced in their organizations. They have to be involved in
measuring the costs at the end of the period. Their contribution is reflected in the
reduction shown in the unit costs at the end of the year. The value of the work of IEs
to the company is the cost reduced over the year.

Measurement of costs today is the responsibility of cost accounting department.

But it only provides the proof for the effective industrial engineering work.

Industrial engineers must learn cost measurement and they should be able to
visualize how costs incurred daily become unit costs of products. Their cost
reduction also first focuses on various resources used in daily work. But any saving of
resource has to become a reduction in some product's unit cost. The IE must be able
to see the future consequence of his current action clearly and check whether it
happened or not according to his plan at the end of the period.

The cost measurement is done through cost estimating also. There are organizations
that give the responsibility of cost estimating for marketing purposes to industrial
engineering. It is a rational decisions and industrial engineers can provide cost
estimates that reflect the current reduces cost estimates for various components
and processes and give the organization the competitive edge in pricing.

Functions of Industrial Engineering

"Functions and Focus Areas of Industrial Engineering" - Paper Published in NITIE
Journal dated Oct-Dec 2016.

The functions of management are currently given as Planning, Organizing,

Resourcing, Executing and Control.

What are functions of Industrial Engineering (IE)?

Industrial engineering has the following functions:

Research in Industrial Engineering

Productivity Science
Productivity Engineering

68
Productivity Management
Communication, Training and Implementation
Productivity Measurement
Review

Research in Industrial Engineering

Industrial engineering has emerged out of productivity improvement, Art of Metal

Cutting, Shop management and Scientific management developed and promoted
by F.W. Taylor. Development of science related to production systems or work
systems consisting of machines and men is the foundation for this subject. Hence
research is an important function of industrial engineering. Industrial engineers are
to be taught scientific research method and process so that they can understand the
research papers published by IE researchers and also undertake research related to
local applications.

Productivity Science

Research propositions and the tests of research propositions are to be consolidated

into scientific theories related to various issues of interest in the field of industrial
engineering.

Productivity Science of Machining - Taylor to Current Times

https://nraoiekc.blogspot.com/2020/07/productivity-science-of-machining.html

Productivity science of human effort - Development of Science in Mechanic Arts -

F.W. Taylor
https://nraoiekc.blogspot.com/2013/08/development-of-science-in-mechanic-arts.h
tml

Productivity Science of Human Effort - F.W. Gilbreth

https://nraoiekc.blogspot.com/2019/09/productivity-science-of-human-effort-fw.ht
ml

Productivity Engineering

Redesign of engineering processes to make them more productive is productivity

engineering. The two important outputs of engineering processes are products or
services and processes to produce those goods and services. Redesign of human
actions also is part of productivity engineering. Productivity engineering is driven

69
forward by productivity science. Improvement iterations take place within
productivity engineering itself due to inventions taking place. Improvement of
mahcines to increase productivity is also part of productivity engineering.

F.W. Taylor who is the father of productivity engineering of machines, cutting tools
and processes and L.D. Miles, father of productivity engineering of products strongly
stated that productivity engineering has to maintain the effectiveness or quality of
the basic engineering product or process designed by the design engineering team.
Industrial engineering as theory and practice does not in any reduce the
effectiveness or quality of the systems they are redesigning.

Productivity Engineering by F.W. Taylor

https://nraoiekc.blogspot.com/2021/03/productivity-engineering-by-fw-taylor.html

Productivity Management

Productivity management consists of activities of industrial engineers in the field of

management. These activities have two objectives. One objective is to assess various
management policies, programs and processes for the impact on productivity of
engineering processes. Where they do not have desirable effects, industrial
engineers have to propose redesign of them.

The second objective is the management of productivity in organizations. Industrial

engineers are responsibility for managing the productivity. They have to plan for
productivity improvement, organize for it, acquire resources for it, executive
productivity improvement projects and activities and control them to achieve the
planned goals.

Productivity science gives impetus for developing management methods that

increase productivity. Thus productivity science is an input to productivity
engineering and productivity management.

Productivity Management - F.W. Taylor

https://nraoiekc.blogspot.com/2021/03/productivity-management-fw-taylor.html

Communication, Training and Implementation

Industrial engineering is carried out as staff activity. The redesigns of the IE projects
are to be communicated to various persons in the organization to establish its
feasibility and also get them approved by competent authorities for funding. Then,
industrial engineers have to train various persons in the new methods. Even though,
they are a staff function, they have to be part of implementation teams and their
work is not over till implementation is done.

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Productivity Measurement

Measurement of productivity is an important function. After productivity

improvement projects are implemented, measurements have to validate the
improvement. Also past measurements or new measurements become the basis for
planning productivity improvement programs.

Industrial Engineering Data and Measurements

https://nraoiekc.blogspot.com/2019/05/industrial-engineering-data-and.html

Review

Based on the productivity measurements, a review of situation is to be made to take

decisions regarding future efforts in the area of productivity. The results of review
become the sources for further research, productivity engineering and productivity
management activities. The reviews result in productivity studies that point out need
and opportunities for productivity engineering and management activities.

Engineering Process - Review, Analysis and Improvement for Productivity

https://nraoiekc.blogspot.com/2021/03/engineering-process-review-analysis-and.ht
ml

Focus Areas of Industrial Engineering

Productivity Science

Industrial Engineering Strategy

Facilities Industrial Engineering

Product Industrial Engineering

Process Industrial Engineering

Industrial Engineering Optimization

Industrial Engineering Statistics

Industrial Engineering Economics

Human Effort Industrial Engineering

Productivity Measurement

71
Productivity Management

Data Processing and Information Systems for Industrial Engineering

Applied Industrial Engineering

Focus Areas of Industrial Engineering - Brief

Explanation

Productivity Science: Science developed for each element of machine operation and
each element of human tasks in industry.

Industrial Engineering Strategy: Industrial engineering is profit engineering. If a

company is not employing industrial engineering, it is unnecessarily foregoing profits
inherent in the products that it developed and designed to the performance
satisfaction of good number of users. Profit conscious managers and owners have to
understand and employ industrial engineering to achieve the full profit potential of
their products. Certain strategic decisions related to industrial engineering function
are to be taken by top management of the organization as part of strategic plan of
the organization. Certain strategic decisions are to be taken by the Chief Industrial
Engineer. These decisions are part of the focus area of industrial engineering
strategy.

Facilities Industrial Engineering: The processes of different products and its

components are performed using the facilities of the organization. In designing
various facilities of industrial buildings and different facilities within the building,
industrial engineering has a role to play. In selection of the equipment used by
multiple processes industrial engineering has a role to play. Improvement of
machines to increase productivity was done by F.W. Taylor, founder of industrial
engineering. Maintenance of various equipment and its overhaul can also be
examined by industrial engineers as part of facilities industrial engineering. Layout of
the equipment and various production departments decide the amount of material
handling and transport within the facility. Layout improvement is an important task
of industrial engineering. Hence facilities level industrial engineering or facilities

72
industrial engineering is to be identified as an important area in industrial
engineering.

Product Industrial Engineering: Redesign of products to reduce cost and increase

value keeping the quality intact.

Process Industrial Engineering: Redesign of processes to reduce cost and increase

value keeping the quality intact.

Industrial Engineering Optimization: Optimizing industrial engineering solutions

created in Product Industrial Engineering and Process Industrial Engineering.

Industrial Engineering Statistics: Using statistical tools like data description, sampling
and design of experiments in industrial engineering activity.

Industrial Engineering Economics: Economic analysis of industrial engineering

projects.

Human Effort Industrial Engineering: Redesign of products and processes to increase

satisfaction and reduce discomfort and other negative consequence to operators.

Productivity Measurement: Various measurements done by industrial engineers in

industrial setting to collect data, analyze data and use the insights in redesign:
Product Industrial Engineering and Process Industrial Engineering.

Productivity Management: Management undertaken by industrial engineers to

implement Product Industrial Engineering and Process Industrial Engineering.
Management processes industrial engineering is also part of productivity
management.

Applied Industrial Engineering: Application of industrial engineering in new

technologies, existing technologies, engineering business and industrial processes
and other areas.

Productivity Science
Productivity Science - One Explanation

Productivity science is thus an approach to productivity measurement , analysis and

improvement that attempts, in any specific situation, to identify the appropriate
philosophy, culture, systems, processes, technology and methods that will maximize
positive (social, environmental and economic) outcomes relative to the resources
consumed.

73
“Productivity science is scientific effort, that in any specific work situation, identifies
the appropriate philosophy, culture, systems, processes, technology, methods and
human physical action and behavior and elements of each of them of that will
maximize positive (social, environmental and economic) outcomes relative to the
resources consumed.” - Narayana Rao (IISE 2020 Annual Conference Proceedings)

Productivity Science of Machine - Machining - F.W. Taylor

F.W. Taylor is the pioneer of scientific management. He advocated strongly that

science in management of work in production shops did not exist and there is an
immediate need to develop science for every element of production work. He
himself conducted studies and experiments to develop science of machine tool
work/effort and human effort. He contributed to the development of science in both
the areas. But in the area of human effort, Frank Gilbreth followed Taylor with a
more elaborate framework for productivity science of human effort.

F.W. Taylor did the pioneering research study on productivity science of machines
for over 30 years. He did it on machine tools. The brief description Taylor's work on
machining is as follows.

Study of Variables that have an Effect on Cutting Speed, Feed and Time of Cutting

The productivity science problem of machine tool can be solved by a careful study of
the effect each of the twelve following variable elements has upon the selection of
the cutting speed and feed and therefore on the cutting time.

a. The quality of the metal which is to be cut, i. e., its hardness or other qualities
which affect the cutting speed;
b. The diameter of the work;
c The depth of the cut, or one-half of the amount by which the forging or casting is
being reduced in diameter in turning;
d. The thickness of the shaving, or the thickness of the spiral strip or band of metal
which is to be removed by the tool, measured while the metal retains its original
density ; not the thickness of the actual shaving, the - metal of which has become
partly disintegrated;
e. The elasticity of the work and of the tool;
f. The shape or contour of the cutting edge of the tool, together with its clearance
and lip angles;
g. The chemical composition of the steel from which the tool is made, and the heat
treatment of the tool ;
h. Whether a heavy stream of water, or other cooling medium, is used on the tool;

74
i. The duration of the cut, i. e., the time which a tool must last under pressure of the
shaving without being reground; '
j. The pressure of the chip or shaving upon the tool;
k. The changes of speed and feed possible in the lathe;
l. The pulling and feeding power of the lathe at its various speeds.

The ultimate object of all experiments in this field is to learn how to remove the
metal from forgings and castings in the quickest time, and that therefore the art of
cutting metals may be briefly defined as the knowledge of how, with the limitations
caused by some and the opportunities offered by others of the above twelve
variable elements, in each case to remove the metal with the highest appropriate
cutting speed.

Before entering upon the details of experiments, it seems necessary to again

particularly call attention to the fact that “standard cutting-speed” is the true
criterion by which to measure the performance of various variables like tool material,
dimensions etc.

To give an illustration of the practical use of "standard cutting-speed." If, for example,
we wish to determine which make of tool steel is the best, we should proceed to
make from each of the two kinds to be tested a set of from four to eight tools. Each
tool should be forged from tool steel, say, 5- inch x 1- inch and about 18 inches long,
to exactly the same shape, and after giving the tools made from each type of steel
the heat treatment appropriate to its chemical composition, they should all be
ground with exactly the same shaped cutting edge and the same clearance and lip
angles. One of the sets of eight tools should then be run, one tool after another,
each for a period of 20 minutes, and each at a little faster cutting speed than its
predecessor, until that cutting speed has been found which will cause the tool to be
‘completely ruined‘ at the end of 20 minutes, with an allowance of a minute or two
each side of the 20-minute mark.

Every precaution must be taken throughout these tests to maintain uniform all of
the other elements or variables which affect the cutting speed, such as the depth of
the cut and the quality of the metal being cut. The rate of the cutting speed must be
frequently tested during each 20-minute run to be sure that it is uniform
throughout.

In the paper, Taylor explained that “the speed at which tools” give out in 20 minutes,
as described above, will be, for the sake of brevity, referred to as the “standard
speed.” After having found the “standard speed” of the first type of tools, and having
verified it by ruining several more of the eight tools at the same speed, we should
next determine in a similar manner the exact speed at which the other make of tools
will be ruined in 20 minutes; and if, for instance, one of these sets of tools exactly
ruins at a cutting speed of 55 feet, while the other make ruins at 50 feet per minute,
these “standard speeds," 55 to 50, constitute by far the most important criterion

75
from which to judge the relative economic value of the two steels for a machine
shop.

Productivity science related research is being carried on machining processes even

now also. Only thing is that it is not being presented as part of productivity science of
machines. There is a need to collect all the studies under this heading and
summarize these studies and present the current guidelines for maximum
productivity of each of the machines.

Productivity Science of Human Effort - F.W. Gilbreth

F.W. Taylor is the pioneer of scientific management. He advocated strongly that

science in management of work in production shops did not exist and there is an
immediate need to develop science for every element of production work. He
himself conducted studies and experiments to develop science of machine tool
work/effort and human effort. He contributed to the development of science in both
the areas. But in the area of human effort, Frank Gilbreth followed Taylor with a
more elaborate framework for productivity science of human effort.

The aim of motion study is to find and perpetuate the scheme of perfection. There
are three stages in this study:

1. Discovering and classifying the best practice.

2. Deducing the laws.
3. Applying the laws to standardize practice, either for the purpose of increasing
output or decreasing hours of labor, or both.

There is no waste of any kind in the world that equals the waste from needless,
ill-directed, and ineffective motions. When one realizes that in such a trade as
brick-laying alone, the motions now adopted after careful study have already cut
down the bricklayer's work more than two-thirds, it is possible to realize the amount
of energy that is wasted by the workers of this country.

The census of 1900 showed 29,287,070 persons, ten years of age and over, as
engaged in gainful occupations. Taking the case of the nearly thirty million workers
cited above, it would be a conservative estimate that would call half their motions
utterly wasted.

By motion study the earning capacity of the workman can surely be more than
doubled. Wherever motion study has been applied, the workman's output has been
doubled. This will mean for every worker either more wages or more leisure.

76
But the most advisable way to utilize this gain is not a question which concerns us
now. We have not yet reached the stage where the solving of that problem becomes
a necessity far from it! Our duty is to study the motions and to reduce them as
rapidly as possible to standard sets of least in number, least in fatigue, yet most
effective motions. This has not been done perfectly as yet for any branch of the
industries. In fact, so far as we know, it has not, before this time, been scientifically
attempted. It is this work, and the method of attack for undertaking it, which it is the
aim of this book to explain.

PLACE OF MOTION STUDY IN SCIENTIFIC MANAGEMENT

Motion study as herein shown has a definite place in the evolution of scientific
management not wholly appreciated by the casual reader.

Its value in cost reducing cannot be overestimated. In increasing output by selecting

and teaching each workman the best known method of performing his work, motion
economy is all important. Through it, alone, when applied to unsystematized work,
the output can be more than doubled, with no increase in cost.

During the work of standardizing the operations performed, motion study enables
the time-study men to limit their work to the study of correct methods only. This is
an immense saving in time, labor, and costs, as the methods studied comply, as
nearly as is at that stage possible, with the standard methods that will be
synthetically constructed after the time study has taken place.

Even when Ultimate system has finally been installed, and the scientifically timed
elements are ready and at hand to be used by the instruction card man in
determining the tasks, or schedules, the results of motion study serve as a collection
of best methods of performing work that can be quickly and economically
incorporated into instruction cards (incorporation of motion description).

Motion study, practiced by Gilbreth, as a means of increasing output under the

military type of management (traditional), has consciously proved its usefulness on
the work for the past twenty-five years. Its value as a permanent element for
standardizing work and its important place in scientific management have been
appreciated only since observing its standing among the laws of management given
to the world by Mr. Frederick W. Taylor, that great conservator of scientific
investigation, who has done more than all others toward reducing the problem of
management of work to an exact science.

Now tremendous savings are possible in the work of everybody, they are not for
one class, they are not for the trades only; they are for the offices, the schools, the
colleges, the stores, the households, and the farms. But the possibilities of benefits
from motion study in the mechanic and construction trades are particularly striking,
because all trades, even at their present best, are badly bungled.

77
PRESENT STAGE OF MOTION STUDY AND PRODUCTIVITY SCIENCE - 1911

We stand at present in the first stage of motion study, i.e., the stage of discovering
and classifying the best practice. This is the stage of analysis.

The following are the steps to be taken in the analysis:

1. Reduce present practice to writing.

2. Enumerate motions used.

3. Enumerate variables which affect each motion.

4. Reduce best practice to writing.

5. Enumerate motions used in the best practice.

6. Enumerate variables which affect each motion.

Gilbreth started with a list of variable that are of help in developing science of
human effort (motion).

Frank B. Gilbreth - VARIABLES THAT AFFECT MOTION ECONOMY

Every element that makes up or affects the amount of work that the worker is able
to turn out must be considered separately; but the variables which must be studied
in analyzing any motion, group themselves naturally into some such divisions as the
following:

I. Variables of the Worker.

1 . Anatomy.

2. Brawn.

3. Contentment.

4. Creed.

5. Earning Power.

6. Experience.

78
7. Fatigue.

8. Habits.

9. Health.

10. Mode of living.

11 . Nutrition.

12. Size.

13. Skill.

14. Temperament.

15. Training.

II. Variables of the Surroundings, Equipment, and Tools.

1. Appliances.

2. Clothes.

3. Colors.

4. Entertainment, music, reading, etc.

5. Heating, Cooling, Ventilating.

6. Lighting.

7. Quality of material.

8. Reward and punishment.

9. Size of unit moved.

10. Special fatigue-eliminating devices.

11. Surroundings.

12. Tools.

13. Union rules.

14. Weight of unit moved.

79
III. Variables of the Motion.

1. Acceleration.

2. Automaticity.

3. Combination with other motions and sequence.

4. Cost.

5. Direction.

6. Effectiveness.

7. Foot-pounds of work accomplished.

8. Inertia and momentum overcome.

9. Length.

10. Necessity,

11. Path.

12. "Play for position."

13. Speed.

In taking up the analysis of any problem of motion reduction we first consider each
variable on the list separately, to see if it is an element of our problem.

Our discussion of these variables must of necessity be incomplete, as the subject is

too large to be investigated thoroughly by any one student. Moreover, the nature of
our work is such that only investigations can be made as show immediate results for
increasing outputs or reducing unit costs.

The nature of any variable can be most clearly shown by citing a case where it
appears and is of importance. But it is obviously impossible in a discussion such as
this to attempt fully to illustrate each separate variable even of our incomplete list.

Since first writing these articles for Industrial Engineering it has been of great
interest to the writer to learn of the conscious and successful application of the
principles involved to the particular fields of work that have interested various
readers. It was thought that unity might be lent to the argument by choosing the
illustrations given from one field. The reader will probably find himself more

80
successful in estimating the value of the underlying laws by translating the
illustrations into his own vocabulary, by thinking in his own chosen material.

The practical value of a study such as this aims to be will be increased many fold by
cooperation in application and illustration. The variables, at best an incomplete
framework, take on form and personality when so considered.

Industrial Engineering Strategy

Industrial engineering is profit engineering. (Taiichi Ohno)
Would you not like to budget for profit?

Industrial engineering is profit engineering. If a company is not employing industrial

engineering it is unnecessarily foregoing profits inherent in the products that it
developed and designed to the performance satisfaction of good number of users.
Profit conscious managers and owners have to understand and employ industrial
engineering to achieve the full profit potential of their products.

What are your strategic decisions related to industrial engineering function?

1. What is your productivity/Efficiency Improvement - Cost Reduction goal?

2. Are you planning to realize experience curve effect benefits?

3. How much of the cost reduction - productivity improvement should come from
specialist industrial engineers and other engineers and managers?

4. What will be the ratio of industrial engineers to other engineers and managers?

5. What bottlenecks or limiting factors have you identified in you facilities?

6. What techniques are going to receive special emphasis?

7. What is your training plan for specialist industrial engineers and other engineers
and managers?

8. What is the top management attention to industrial engineering - productivity

improvement - cost reduction activity?

9. What is the research and development budget for IE activity?

10. What is the total budget for productivity improvement? What is the budget for
productivity projects to be initiated by industrial engineering department? What is
the budget for productivity projects to be initiated by operating departments?

81
1. What is your productivity/Efficiency Improvement - Cost Reduction goal?

Total productivity management promoted by Japan Management Association,

covered as a chapter in the Maynard Handbook (5th Edition) advocates setting up
targets for cost reduction and productivity improvement. Similarly, Yamashina talks
of manufacturing cost reduction deployment as a strategic decision in his world class
manufacturing implementation. Total industrial engineering is one of the pillars of
WCM promoted by Yamashina.

The productivity improvement target can be allocated to each industrial

engineer/process owner combinations also. (Value creation target for industrial
engineers).

2. Are you planning to realize experience curve effect benefits?

Experience or learning curve effect is identified as one of the strategic cost drivers by
strategic management literature in implementing cost leadership strategy (Creating
and Executing Strategy: The Quest for Competitive Advantage, 14 Edition, Arthur
Thompson Jr., A.J. Strickland, John E. Gamble and Arun K Jain, Tata McGraw Hill,
2006, p.119). Companies have to determine the slope of their learning curve and
assess whether it is in line with the industry and have to take actions to improve
learning in organization. Hence they have to plan to realize the experience curve
effect.

3. How much of the cost reduction - productivity improvement should come from
specialist industrial engineers and other engineers and managers?

F. W. Taylor (1911) identified that production work was being carried out without
the support adequate science. Taylor developed science of machine working as well
as manual working in certain activities and developed his scientific management
thought and promoted industrial engineering as a subject and as a full discipline in
engineering institutions. He recommended specially educated and trained
industrial engineers to take up the work of developing science in various production
activities and improvement of production processes using the science. According to
Taylor, foreman at that time was already overloaded and similar is the case with
senior production managers also as they were working without the support of staff
specialists.

In 1921, Gilbreths described the process chart approach for process productivity
improvement. They advocated involving many in improvement analysis of process
chart including operators. They recommended exhibiting the process chart in a
theater and conducting discussions on it.

By 1930s, the situation changed. Alan Mogensen identified that processes

redesigned by industrial engineering using the recent discovered science can further

82
be improved by the involving operators and supervisors as they observe many minor
improvement opportunities in the doing the work day after day. He came out with
work simplification program to involve operators, supervisors and engineers in
operation/process improvement in workshop. According to Allen Mogensen, Work
Simplification is the organized use of common sense — on the part of everyone
Involved — to find easier and better ways of doing work.

Toyota Motors made exemplary use of utilizing the knowledge of every body in the
production system to improve processes and operations. In Toyota, process charts
are available in the shop floor for every body to see every day and suggest
improvements. Now companies have a policy choice to make. What proportion of
planned cost reduction will come from science/analysis based projects from
industrial engineers and what proportion will come from line organization. The
targets have to be included in the budgets of the various departments accordingly.

An answer for the amount of productivity improvement to be carried out by

industrial engineers.
Value Creation for the Organization by Industrial Engineers - Productivity Engineering
Potential
https://nraoiekc.blogspot.com/2020/03/value-creation-model-for-industrial.html

4. What will be the ratio of industrial engineers to other engineers and managers?

This decision is contingent of the decision above. The company has to employ some
industrial engineers to promote total industrial engineering. Above that the number
of IEs to be employed and their engineering background, and functional experience
depends on the company's policy decisions regarding the planned cost reduction and
responsibility given to IE and line departments.

5. What bottlenecks or limiting factors have you identified in your facilities?

Manufacturing cost reduction deployment is a topic in project appraisal chapter of

financial management books as well as engineering economics and managerial
economics books. They recognize that certain project proposals contain cost
reduction a the benefit of the project. Yamashina in his WCM explicitly recognizes
cost reduction projects as a major input into the budgeting process and comes out
with a mathematical model to select a cost reduction project portfolio for the
coming period. In this context and Goldratt’s theory of constraint improvement,
company has to identify its limiting factors or bottlenecks whose productivity has to
be improved by employing industrial engineering techniques. Based on this
identification, the company personnel may come up with productivity improvement
projects that make a significant improvement in the operation of the bottleneck
facilities.

83
6. What techniques are going to receive special emphasis?

IE techniques are continuously refined and new techniques are being developed. The
company has to opportunity of taking decisions on the intensive use of some
techniques during the coming periods. For example many companies in India are
now focusing on six sigma and industrial engineering techniques named as lean
manufacturing or Toyota Production System to realize cost reduction and
productivity improvement.

7. What is your training plan for specialist industrial engineers and other engineers
and managers?

Based on the strategic decisions in the area of industrial engineering, the company
has to conduct training programs to sensitize the employees on the need to use
specified techniques and provide skills to those employees who presently do not
have them. There is always a need to share recent success stories within the
company as well as from other companies.

8. What is the top management attention to industrial engineering - productivity

improvement - cost reduction activity?

If productivity is a strategic issue (it is for many companies as world's top companies
declare their productivity improvement and cost reduction targets - Volkswagen and
Coca Cola in 2014), top management has to participate in planning, organizing,
resourcing, directing and controlling productivity improvement. They need to
allocate time and participate in various activities related to productivity. Long time
back, when Birla group was introducing WCM, in the first work shop of defect or
waste identification, it was said that K.K. Birla, the chairman of the group himself
participated to observe the work place and identify waste. Motilal Oswal, Motilal
Oswal Securities Limited was another CEO, who participates in many training
programmes organized by the company with enthusiasm.

9. What is the research and development budget for IE activity?

If companies have to use industrial engineering and enjoy the increased profits, they
have to contribute to its theoretical development and first time application of the
theory in company systems. Theoretical development is referred to as research and
first time application is referred to as development. While, the big companies have a
major responsibility to fund big projects, even smaller companies can contribute
through their industry associations, industrial engineering professional
organizations.

10. What is the total budget for productivity improvement?

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What is the budget for productivity projects to be initiated by industrial engineering
department? What is the budget for productivity projects to be initiated by
operating departments?

Every year, the company has to ask for productivity improvement project proposals
and include them as part of their investment budgets. Some companies do it and
report them to shareholders.

Facilities Industrial Engineering

Facilities Industrial Engineering = Facilities Design Engineering + Facilities
Productivity Science and Engineering [Productivity Philosophy - Science - Engineering
- Management]

In industrial engineering process improvement using process charts (operation

process chart and flow process chart) is the dominant method. Process charts are
created for each finished product and for each of its components. The processes of
different products and its components are performed using the facilities of the
organization. In designing various facilities of industrial buildings and different
facilities within the building, industrial engineering has a role to play. In selection of
the equipment used by multiple processes industrial engineering has a role to play.
Improvement of machines to increase productivity was done by F.W. Taylor, founder
of industrial engineering. Maintenance of various equipment and its overhaul can
also be examined by industrial engineers as part of facilities industrial engineering.
Layout of the equipment and various production departments decide the amount of
material handling and transport within the facility. Layout improvement is an
important task of industrial engineering. Arrangement of materials and tools in store
determines the time spent in storing and retrieving items for issue. Hence facilities
level industrial engineering or facilities industrial engineering is to be identified as
an important area in industrial engineering.

Facilities Industrial Engineering - Jobs

Facility Industrial Engineer

Pitney Bowes Monroe, NJ
Full-time · Entry level
10,001+ employees · IT Services and IT Consulting

About the job

At Pitney Bowes, we do the right thing, the right way. As a member of our team, you
can too.

Job Description:

85
A Performance-driven Contributor who can develop and deploy operational metrics,
continuous improvement initiatives, cost saving initiatives and processes to optimize
the cost and performance in the designated facilities.

You Will
Be responsible for working with vendors, real estates, project management,
technology, and strategy on multiple projects simultaneously including automation,
new building designs, new building launches, system enhancement requirements,
and cost savings initiatives.

Develop continuous improvement initiatives including evaluation of current

operations, data analysis, justification and implementation of recommended
solutions.

Evaluate current business processes and future needs to streamline operations and
foster sustainable growth.

Design and develop facility layouts for new and existing facilities including ROI
analysis, vendor selection, design implementations.

Monitor, analyze and recommend ways to improve productivity, service, cost

performance and waste reduction in all areas of operations.

Develop capacity requirements for current and future operations, design and
implement solutions to support capacity needs.

Implement 5S methodologies across the facilities with the management team,

focusing on business priorities, efficiency improvement initiatives and the scope of
work identified through the planning and design phase.

Assist with the deployment of Lean warehousing initiatives at the facility level, which
includes kaizen events, rollout of progress boards, metrics boards and employee
production standards.

Develop engineered labor standards to drive a performance and quality culture

within the operations.

Continuously evaluate and optimize automation and warehouse storage by analyzing

product dimensions and velocity by client.

Interface with Sales and Account Management on pricing solutions to ensure

accurate cost and storage layout for new and existing clients.

Oversee and assist with new client implementations from an operational,

engineering and project management standpoint. Create and design operational
layout, considering timelines and overall operational impact to exceed client
expectations and ensure a smooth transition within the operation.

86
Validate actual versus planned cost savings and performance improvement.

Communicate and coordinate with other internal business groups to ensure goals
are achieved.

Your Background

As an Industrial Engineer of Facilities , you have:

Minimum of 3 years industrial engineering experience within the parcel shipping or

3PL fulfillment industry
Bachelor’s degree in Industrial Engineering or related field required
Strong analytical skills and structured problem-solving skills
Expert in MS Word, Excel, Visio, PowerPoint and AutoCAD
Proficient with WMS & LMS systems
Must be a team player with a strong work ethic, as well as excellent people and
organizational skills

Preferred
Six Sigma Green belt or higher
Project Management Skills

https://www.linkedin.com/jobs/view/2923115214/?refId=J4jp1nasRXeTCShIfURZYw
%3D%3D

Product Industrial Engineering

Industrial engineering is concerned with redesign of engineering systems with a view
to improve their productivity. Industrial engineers analyze productivity of each
resource used in engineering systems and redesign as necessary to improve
productivity.

An early article by Taylor describes and illustrates the productivity engineering of

belting system based on the cost data accumulated over a period of 9 years
(Industrial Engineering of Belting - 1893). I saw an article on industrial engineering
with the title "continuous reengineering." I agree with the term and promote the
term. Industrial engineering is continuous redesign of products and processes
periodically as well as based on events at any time an opportunity arises. Taylor's
articles makes the steps required to do industrial engineering. Thinking based on
engineering and productivity orientation and then the experimenting or
prototyping to validate the idea.

It has to be ensured that the increase in productivity due to the use of low-cost
materials, processes and increasing speed of machines and men, should not lead to
any decrease in quality of the output and or any desirable performance or aesthetic
feature of the product or process. Both Taylor who promoted process industrial

87
engineering and L.D. Miles, who promoted product industrial engineering - value
engineering insisted on the condition. This can be described as quality principle of
industrial engineering.

Similarly, operators should not feel any discomfort, not have any health problems or
safety issues in the redesigned more productive processes. Gilbreths had done
considerable work on this aspect.

Products and Process are two important outputs of engineering activity.

Product Industrial Engineering

This article with the title "Product Design Industrial Engineering was first published
on 29 September 2012.

I now term this activity as Product Industrial Engineering. In the early days of
industrial engineering only some peripheral features of the product that facilitated
material handling and tolerances were evaluated by industrial engineering for
redesign. But Value Engineering, developed by L.D. Miles brought out the scope for
radical redesign of the products and components to do cost reduction without
affecting the quality, functions or features and customer requirements. It brought
out the waste being present in the design done with effectiveness or performance as
the focus at the start of a new product introduction by companies. So it called for
cyclical approach of effectiveness design followed by efficiency design and also a
periodic efficiency design to incorporate recent knowledge regarding efficiency
improvement or cost reduction and developments in engineering and technology.
Product industrial engineering became an important focus area of industrial
engineering and many others techniques facilitating product industrial engineering
were developed by industrial engineers and other engineers and managers.

The major techniques that constitute product industrial engineering are:

1. Value Analysis and Engineering

2. Design for Manufacturing
3. Design for Assembly
4. Design for Additive Manufacturing
5. Design to Cost
6. Design to Value
7. Design to Target Cost
8. Engineering Optimization
9. Six Sigma for Design Improvement - Robust Design (Video)
10. Life Cycle Cost Analysis based redesign
11. Design analysis done during Process Industrial Engineering
12. Lean Product Design Concept

88
In the product industrial engineering chapter, value engineering will be discussed in
detail and other techniques will also be introduced.

Definitions of IE and IE Design for "X"

Many designs for "X" fall under the domain of industrial engineering as per the
definition of of IE.

AIIE

“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.” (AIIE, 1955). [4]

IE Design for "X": Industrial engineering aims to specify, predict, and evaluate the
results to be obtained from such systems. Hence the special and unique role of IE is
results or performance obtained from systems. Productivity, Time and cost are the
original performance dimensions focused by the IE discipline. Slowly more got added.
Still more can be added.

Process Industrial Engineering

Method, operation, process, task etc. are used in the context of improving
production and engineering activities in organizations. The term "Method" was
popularized by method study and methods engineering subjects. The term process
was popularized by Gilbreth when he developed process charts. In the process chart,
operation is one of the activities. Task was used by Taylor. Process seems to be more
popular terminology now as process planning, process orientation and process
mapping became popular terms. Industrial engineering carried on processes to do
productivity improvement and reduce cost is termed as process industrial
engineering. Product industrial engineering and process industrial engineering,
redesign of products and processes for productivity improvement and cost reduction
are the core engineering activities in industrial engineering.

The variables or actions that can increase productivity can be many depending on
the level of detail we go down to. At high level machine effort (engines and
engineering including industrial engineering), human effort (operators) and
managerial effort (facilities provision, planning of processes, planning of material
flow and batch flow quantities, and training of operators) have to be identified and
are to be improved.

In the case of process industrial engineering, we can identify the three main areas as
process machine effort industrial engineering, process human effort industrial
engineering and process productivity management. Machine work study or machine

89
effort study would study all the elements of machine and the machine process.
Human work study (Method study and motion study) would study all human related
aspects and the motions used. Process productivity management would look at
managerial activities related to the process.

Production methods or processes efficiency engineering was indicated by Henry

Towne in his 1886 paper. He specially emphasized that engineers managing
manufacturing shops and works have to focus on reduction of cost of production and
do engineering changes to achieve it. A logical and systematic procedure for
reducing costs, increasing production without an impairment to quality was
described by F.W. Taylor in his 1895 paper. Since then, many more improvement
ways were added to the industrial engineering of processes.

Process Industrial Engineering - Methods and Techniques

Identifying, Analyzing and Installing High Productivity Equipment and Machines

Identifying, Analyzing and Utilizing High Productivity Special Processes
Developing special purpose machines
Installing accessories for productivity improvement
Using Jigs and Fixtures
Using more productive tools
Using new lubricants
Using new cutting fluids
Cutting parameters optimization
Process parameters optimization - Six Sigma - Tolerances
Assembly line balancing - Redesign of work stations to facilitate balanced load on
work stations and matching the line to tact time.
Group technology and group layout
SMED
Poka Yoke
Digital Transformation of Processes
Machine Work Study
Operation Analysis
Process Analysis
Method Study
Electric power consumption analysis and reduction
Predictive maintenance
Preventive maintenance
Total Productive Maintenance
OEE improvement
Lean Manufacturing
Manufacturing Cost Policy Deployment (MCPD)
Six Sigma
Equipment Replacement Study and Decision
Process Industrial Engineering - Case Studies and Examples

90
Process Improvement - Gilbreths' View

Frank Gilbreth developed process analysis and improvement. In 1921, he

presented a paper in ASME, on process charts. Lilian Gilbreth was a coauthor of this
paper.

PROCESS CHARTS: FIRST STEPS IN FINDING THE ONE BEST WAY TO DO WORK
By Frank B. Gilbreth, Montclair, N. J. Member of the Society
and L. M. Gilbreth, Montclair, N. J. Non-Member
For presentation at the Annual Meeting, New York, December 5 to 9, 1921,
of The American Society of Mechanical Engineers, 29 West 39th Street, New York.
https://ia800700.us.archive.org/5/items/processcharts00gilb/processcharts00gilb_b
w.pdf

At the end of the paper, the conclusion made is as follows:

The procedure for making, examining and improving a process is, therefore,
preferably as follows:

a. Examine process and record with rough notes and stereoscopic diapositives the
existing process in detail.

b. Have draftsman copy rough notes in form for blueprinting, photographic

projection and exhibition to executives and others.

c. Show the diapositives with stereoscope and lantern slides of process charts in
executives' theater to executives and workers.

d. Improve present methods by the use of —

1 Suggestion system
2 Written description of new methods or 'write-ups," "manuals," ''codes," ''written
systems," as they are variously called
3 Standards
4 Standing orders
5 Motion study
6 Micromotion studies and chronocyclegraphs for obtaining and recording the One
Best Way to do Work.

e. Make process chart of the process as finally adopted as a base for still further and
cumulative improvement.

We see in the method described above, the method study steps of record, and
examine. The practice of involving the workers in analyzing the process chart which
was later popularized by Alan Mogensen is also present in the method suggested by

91
Gilbreth to improve a process. Motion study as a later step in the process analysis
method, which was emphasized by H.B. Maynard as part of the operation analysis
proposed by him is also visible in the procedure described by Gilbreths.

H.B. Maynard proposed "Operation Analysis" for process improvement.

So, we can see the methods engineering and methods study which became popular
subsequently were further development of Gilbreth's process improvement
procedure only.

Process Engineering

Process engineering focuses on the design, operation, control, optimization and

Intensification of chemical, physical, and biological processes. Process engineering
encompasses a vast range of industries, such as chemical, petrochemical, agriculture,
mineral processing, advanced material, food, pharmaceutical, software development
and biotechnological industries.
https://en.wikipedia.org/wiki/Process_engineering

Process Industrial Engineering

Process engineering is an established term in engineering. Hence process industrial

engineering, which represents the redesign of processes by industrial engineers to
improve productivity is an appropriate term.

Operation Process Chart, Flow Process Chart and other ways of recording the
process flow are used for study and improvement of processes. Process Study,
Methods Engineering, Operations Analysis, Method Study and Motion Study are
various methods or procedures of process industrial engineering.

The process industrial engineering has to develop analysis and improvement of

technical elements of a process in more detail to make industrial engineering an
engineering based activity to increase productivity in engineering organizations,
departments and activities.

Process industrial engineering also includes improvement of related management

activities. F.W. Taylor was a pioneer in introducing many changes in management
practices to improve productivity. Industrial engineering adopted the same objective.
So within process industrial subject area comes the function of management process
industrial engineering.

Process Analysis, Work Simplification, Method Study, Methods Engineering,

Methods efficiency engineering are terms popular earlier. Process Industrial
Engineering is a better description as it highlights it as part of industrial engineering.

92
Product Industrial Engineering and Process Industrial Engineering are the two main
components of productivity engineering, which are totally dependent on the
engineering knowledge of the industrial engineer.

The Function of Process Industrial Engineering

Process industrial engineering or Methods industrial engineering was the activity

performed by F.W. Taylor and explained first in his paper "A Piece Rate System." As it
evolved over the years, it became a a logical and systematic procedure for
reducing costs, increasing production without an impairment to quality. Process
industrial engineering may be applied with equal success to repetitive work or to
jobbing work, to simple, easily understood operations or to complex, specialized jobs.
It is applicable to all man machine systems, manual work or automated work.

Definition of Process industrial engineering. It may be said that it is the industrial

engineering component which is chiefly concerned with increasing the efficiency of
resources used in a process (operations).

Process industrial engineering is the technique that subjects each operation of a

given piece of work (process) to close analysis in order to eliminate every
unnecessary operation and in order to approach the quickest and best method of
performing each necessary operation; it includes the standardization of equipment,
methods, and working conditions ; it trains the operator to follow the standard
method. When all this has been done, it determines by accurate measurement the
number of standard hours in which an operator working with standard performance
can do the job. Reduction in standard time and standard is the improvement of the
process productivity.

A methods efficiency study always begins with a careful primary analysis of existing
conditions. The reason is that the existing system is taken as an effective system that
is producing the required output at quality acceptable to the customers. The first
factors that are considered are the number of pieces made or the yearly activity, the
length of the operation, and the hourly rate of the machine/operator or operators
doing the job. This information permits the computation of the yearly cost of the job.
An estimate is next made of the probable improvement that methods study can
make. This in turn determines the kind and amount of methods-engineering work
that can profitably be undertaken.

The method or process is recorded for the purpose of presenting the study problem
clearly. Then complete information is compiled for each operation concerning such
points as the purpose of the operation,tolerance requirements, material and
material handling, and tools and equipment used.

As a part of methods efficiency engineering, machine work study and motion study,
that is study of motions of the operator are made. In machine work study, the work
of the machine and the speed at which the machine is running are studied to

93
increase the speed of the machine maintaining the quality. In motion study, each
individual motion used in doing the work is considered in detail to try to shorten the
motion or to eliminate it altogether.

After the new method has been devised, information and records describing the
redesigned procedure must be carefully made and communicated. If the method is
available in a written form, frequent audits can be done to make sure it is being
followed.

The operator or operators must next be taught to follow the new method. This may
be done by verbal instructions, demonstrations at or away from the workplace,
instruction sheets or operator process charts; or by the highly successful procedure
that employs motion pictures.

Development of Process industrial engineering - History

Early Factory Work

Factory work was started by giving work to persons who were already producing the
items required in their own household production. What is the reason for their
acceptance of factory work abandoning their household production work? It can be
an offer of higher payment and the opportunity to devote to production work
without spending time on marketing. There has to be a promise of higher income
and more leisure.

Initially, piecework payment was used factories. The weaver who worked a loom
in his own home was paid for what he produced and not for the number of hours he
spent at work. In the case of piecework, some plan that encouraged a definite
output by the workers was felt necessary. Incentive plans came into existence.
The production supervisor was using records of past performance and his own
judgment of what a man could accomplish if he worked with an honest effort to fix
piece rates.

These two factors proved to be utterly unreliable. Records of past performance told
only how much was produced and gave no indication of the conditions under which
the work was done or of the method used by the operator. Under the stimulus of an
incentive, the operator could almost always devise a better method and, by working
steadily with a good effort, could make earnings that often exceeded those of the
foreman. The various problems associate with these incentive plans, defeated the
purpose of incentives which was to stimulate production.

All this time, competition was becoming increasingly keen. The need for incentives
was felt most strongly, and the importance of proper rate setting caused a search for
a better way of handling the matter. Thus the position of rate setter was established.
The new setup gave somewhat better results, but conditions were far from
satisfactory. Toward the end of the nineteenth century, therefore, the more

94
progressive plants began to feel the need for a better, fairer, and more accurate
method of handling the rate question. The problem was attacked independently in a
number of plants in USA and abroad, and various solutions were offered which have
contributed to a greater or lesser extent to methods-engineering practices.

Taylor's Pioneering Efforts in Process/Methods Improvement

Taylor used stop watch time study of understand the best practices of doing work at
elemental level. Through the study of work and output using time study, Taylor
found that some were following improper methods, many did not take full
advantage of their tools and equipment, and all were subject to many interruptions.
Hence, Taylor often found that a man could do two or three times as much as he had
previously done in a day. Taylor carefully selected individual workman, guided,
trained and made them produce the expected output under the guidance of
management or supervision specialists. As one person produced according to the
expected output, he trained one more man. In this manner gradually more and more
operators were trained to produce the increased output. Since those days, time
study has increased the productivity of industry many fold. It has resulted in
improved conditions, standardization, reduced costs, better production control, and
better satisfied labor wherever it has been properly applied, and it has been applied
to nearly every class of work.

Taylor' s system was to give the workman a definite task to be accomplished in a

definite time in a definite manner. The workman was told in detail how to do the job.
The method was established by careful study.

Taylor's original procedure forms the basis of methods engineering. It has been
improved upon by those who came after him, as is the case when any new science is
developed. Taylor stressed the importance of improving method of doing the job
and he used stop watch time study for that purpose. Frank B. Gilbreth stressed the
importance of the detailed study of methods and thereby made a distinct
contribution to methods efficiency engineering . As an apprentice bricklayer, he
became impressed with the fact that most brick- layers had their own way of doing a
job. Being very observant, he noticed further that each worker had three ways of
doing the same job: one that he taught to other inexperienced workers, one that he
used when working slowly, and one that he used when working at his normal speed.
Gilbreth became interested in the reasons underlying this, analyzed the work of
number operators and developed the technique of motion study. The Gilbreths
established a laboratory and studied motions by laboratory methods. As a result,
they made a number of fundamental discoveries and originated the concept of
therbligs, or basic divisions of accomplishment. They were the first to recognize that
there are certain definite principles which govern efficient working practices, and
they developed several techniques for studying the motions used in performing
operations. Of these, the motion study made with the aid of motion pictures, often
called the "micromotion technique' is the best known and most used. Of the
originality, soundness, and value of their contribution to methods engineering, there
can be no question.

95
As has been pointed out, Taylor's original work forms the basis of modern Methods
efficiency engineering. Paralally, the developments made by the Gilbreths were
incorporated.

Motion study was improved further. Better designs of industrial motion-picture

equipment permit the wider use of the motion picture at a greatly reduced cost. The
element of time has been tied in with the concept of therbligs, or basic divisions of
accomplishment, thus offering a new and valuable approach to methods study. The
leveling principle permits adjusting the time data obtained from a study taken on
any kind of performance over a wide range to a standard level with a high degree of
accuracy, thus permitting the setting of accurate and consistent rates. Finally,
time-formula derivation has been developed to a point that makes possible the quick
and accurate setting of a large number of rates or time allowances with a minimum
of engineering effort. This later became pre-determined motion system. MTM and
MOSt are widely used predetermined motion time systems.

Methods Efficiency Engineering Procedure

Methods efficiency engineering is now a carefully planned, systematic procedure.

Standard process charts have been developed to a state of greater flexibility and
have become more useful for analysis purposes.

Economic Function of Methods efficiency engineering

Under modern business conditions, one of the major problems which faces the
managers of industry is that of constantly reducing costs. Markets are restricted for
any product because many individuals are economically unable to purchase the
product at the current market price. Even in periods of prosperity, millions of people
are able to supply themselves with only the barest necessities of life because of high
prices of many items.

In any country, there are the fewest individuals in the highest group of income and
the greatest number of people are in the lowest group with some groups of people
at intermediate income levels. At each level, there is a group with a certain
purchasing power.

The consumers at any economic levels but the highest few have only a limited
amount to spend. All kinds of products are offered to them in various enticing ways.
Competition as a result is keen and ruthless. The only way an industrial unit an hope
to survive under these conditions is constantly to seek to keep production costs as
low as possible.

Taylor's "Shop Management" paper described methods that give lower production
cost and higher income to operators. Cost reduction methods aim at waste

96
elimination in machine work and man work so that greater production is secured
with less effort.

Methods efficiency engineering is primarily concerned with devising methods that

increase production and reduce costs. Hence, it plays an important role in
determining the competitive position of a plant. As competition appears to be
become keener, Methods efficiency engineering becomes increasingly important.

Methods efficiency engineering in an industrial unit can never be considered as

completed. Costs that are satisfactory and competitive today become excessive in a
comparatively short time because of the improved developments of other units of
the industry. If the producer who is in a good competitive position today decides
that his costs have reached rock bottom and that no further attempt to improve
them is necessary, within a short while he is likely to find himself facing loss of his
commercial standing as owner of an efficiently managed plant. Only by constantly
seeking to improve can any unit safeguard its competitive position. Conditions in
industry are never static, and steady progress is the only sure way to success.

Cost-reduction work is important as a factor for survival, but it also expands the
industry and the firm. There are various economic strata of society. Assume that a
certain company is manufacturing a product that, although universally desirable, is
priced so high that only those individuals in group C or higher can purchase it. The
market for the product is thus rather limited. If, however, properly conducted
cost-reduction work permits the lowering of the selling price so that the individuals
in group D can purchase the product, the market is at once greatly expanded,
perhaps doubled or even tripled. Henry Ford was among the first to combine
recognition of this principle with the courage to act upon it.

In society, incomes range, in small steps, from next to nothing to the highest.
Hence, each time the selling price of a product is reduced, even though it is as little
as 1 per cent, the product is brought within the reach of more people. Therefore, it
may be seen that cost reduction as a means of increasing the distribution of the
product is at all times important.

Methods Efficiency Engineering and Shop Supervisors

The methods efficiency man is by no means the only one who takes an interest in
establishing economic costs and improving methods. The foremen, the tool
designers, and the other shop supervisors can make worth-while improvements in
manufacturing methods. The differences between the methods efficiency man and
the other shop supervisors are two. In the first place, the methods man devotes all
his time to methods work, whereas the other supervisors have numerous duties,
which force them to consider methods work as incidental to their major activities. In
the second place, the methods, man conducts his methods studies systematically
and makes improvements as the result of applying a carefully developed technique.
This technique is based upon a large amount of specialized knowledge which can be
acquired only by special study and training. Therefore, unless a course in Methods

97
efficiency engineering has been given to the other shop supervisors, their
improvements are less certain and are due more to inspiration than to deliberate
intent.

For these reasons, the major part of methods improvement is usually made by
methods engineers. This is not a necessary condition, however; for the principles
that they use can be learned by the other supervisors and can be applied, in part at
least, during the course of their other work. Certain progressive organizations have
realized this and have given methods engineering training in more or less detail to
their various key supervisors. The results, as may be expected, have been gratifying,
and methods-improvement work has received a marked impetus (Maynard 1938).

It is hoped that this technique will be used by shop supervisors such as foremen, tool
designers, and so on, as well as by methods engineers; for if the principles of
methods efficiency work are understood throughout an organization, that
organization will be in a good position to meet competition, depressions, or any
other economic disturbances which may come its way.

Alan Mogensen advocated work simplification methodology. In this method, he used

to conduct methods work shops based on process chart to supervisors and operators
and used to improve processes with the involvement of the workshop trainees. He
was very successful in this endeavor for three decades and his method was adopted
by Training Within Industry (TWI) program and then from them by Toyota Motors.
Now, industrial engineering is being taught in undergraduate engineering programs
to make all engineers practice industrial engineering and also to train their
supervisors and operators. But in undergraduate programs, only in mechanical
branch it is being taught and other branches are not teaching. It is important that it
is taught in all engineering branches.

Industrial Engineering Optimization

Operations Research methods are characterized as efficiency improvement

techniques by many scholars.

1. From efficiency measurement to efficiency improvement: The choice of a relevant

benchmark, Eduardo González, and Antonio Álvarez, European Journal of
Operational Research, Volume 133, Issue 3, 16 September 2001, Pages 512-520

2. Measuring Efficiency in Primary Health Care Centres in Saudi Arabia, ASMA M. A.

BAHURMOZ,
http://www.economics.kaau.edu.sa/Faculty_Mag/Magallat/A12A2_PDF/122-ASMA9
99.pdf

3. Improving Transportation Efficiency at the Nanzan Educational Complex,

http://www.scienceofbetter.org/can_do/success_stories/iteatnecm.htm

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4. Operations Research: The Productivity Engine: How to create unassailable
productivity gains in your business, Lew Pringle, OR/MS Today, June 2000.
http://www.lionhrtpub.com/orms/orms-6-00/pringle.html

Lew Pringle wrote:

"Operations research, as a field, is all about the creation and management of

Productivity Gain. In fact, in a very real sense, productivity gain is virtually the sole
purpose of OR. It's what we do. To raise the question of improvement in an
organization's productivity without taking full advantage of all that OR offers would
be analogous to pursuing a required improvement in one's health while ignoring the
entire medical community. The realm of operations research is Productivity Gain.

OR people, in turn, are identifiable by: 1. our focus on productivity, and 2. the way
we find, identify and come to describe, understand, appreciate and represent a
problem. Operations research people are problem-conceptualizers. Our "solutions,"
in this sense, can (and should) be seen as flowing naturally and easily from the
unique way in which we have visualized the problems/opportunities in the first place.
We operate on such traditional quantities as profit, cost, efficiency and other
practical, measurable items. Our goal, ordinarily, is to achieve higher and higher
levels of performance. We are the people whose job it is to create productivity. We
are, in fact, the productivity engine of an organization."

5. Productivity Improvement through Operational Research

G. W. Sears
Journal of the Royal Statistical Society. Series A (General) Vol. 126, No. 2 (1963), pp.
267-269
https://www.jstor.org/stable/2982368?seq=1#page_scan_tab_contents

6. The Necessity of Implementation of Operations Research for Managers for

Decision-Making and Productivity Increase in Production
M. K. Amoli, S. M. T. Hosseini, M. Salehi, "The Necessity of Implementation of
Operations Research for Managers for Decision-Making and Productivity Increase in
Production", Advanced Materials Research, Vols. 488-489, pp. 1651-1656, 2012
http://www.scientific.net/AMR.488-489.1651

Synergy Between Industrial Engineering and Operations Research

Industrial engineering is developed by engineers working in engineering

departments of business companies engaged in manufacture using machines and
metals. No doubt construction which is the earliest engineering activity also
contributed in the development of industrial engineering as Frank Gilbreth was from
construction sector. Operations Research as a discipline is identified with persons
from science background working in the area of military operations. Industrial

99
engineering and Departments of Mathematics and Statistics embraced the discipline
of operations research in a big way. What is the synergy between industrial
engineering and operations research?

Industrial engineering is system efficiency improvement. It examines proposed ways

of doing work and improve them. Operations research has number of efficiency
improvement tools. Operations researchers developed various standard models and
have the ability to develop custom models that improve the efficiency of operations.
Linear programming models, transportation, and assignment can be cited as
examples using which the operations of an organization can be evaluated for
efficiency of resource use subject to the constraints and optimal or efficient
solutions can be found. Hence industrial engineers have to be the first group among
various corporate organizations to recognize and implement OR models in the
business organizations. This opportunity was correctly identified by the industrial
engineering profession and OR was adopted as an important technique in the
arsenal of industrial engineering.

What is the Contribution of IE to OR?

Industrial engineers could have promoted the practical utilization of OR by proving

data in the form the OR models require. In systems engineering, there is mention of
this step. From the synthesized design for a system design problem, various models
are to be developed to evaluate the proposed design. To use OR models, various
types of data are required and industrial engineers have the advantage of developing
the required data. Why IEs have the advantage? Industrial engineers have the
advantage because they have a strong attachment to measurement in one of their
core subjects work measurement. IEs also do productivity measurement and cost
measurement. Industrial engineers also are given inputs in understanding the
financial and cost accounting data. Thus they are in the unique position to develop
and provide the data that OR models require and come out the most efficient
solutions and help the operating managers in implementing the solutions. But this
does not seem to have happened in big scale.

The reason for the lack of popularity for OR in many organizations is the lack of this
viewpoint in IEs. IEs have to use OR models as efficiency improvement avenues. To
use OR models they have to develop the required data from the operations of the
organization. They have to interact with the accounting departments meaningfully
and acquire the required accounting data and statements. They have to develop
engineering data and then use appropriate OR models. In the IE journals and
magazines we need to read articles and papers that point out how IEs are able to
come out with solutions to data development challenges of OR models.

Engineering Optimization
Optimization Principle of Industrial Engineering. Maximize the benefit. Minimize the
cost. Maximize the difference.
https://nraoiekc.blogspot.com/2017/06/optimization-principle-of-industrial.html

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In engineering design as well as in process planning, optimization is now used.
Industrial engineers have to optimize their engineering redesigns and also check
whether the current engineering solutions are optimized or not? Thus the industrial
engineering optimization focus area is concerned with optimization problems of
product design and process design. Industrial engineering is also concerned with
planning of jobs and flow of material quantities in processes.

Problem Areas for Applying Operations Research

Loading machine centers for maximum utilization of equipment.

Controlling raw materials and in-process inventories.
Planning the minimum production costs schedules through the sequencing and
allocation of men and machines.
Minimizing waiting times between operations
Determining the true incremental benefits of adding new production equipment.
Scheduling direct labour.
Determining the most favourable preventive maintenance plans.
Assigning individuals to specific jobs
Specifying least-cost shipment patterns in multiplant multivendor purchasing
situations.
Locating warehouses so as to minimize freight and production costs.
Allocating advertising budget in the most efficient manner.

Source:
"Operations Research", Chaper 9-3 in Industrial Engineering Handbook, H.B.Maynard
(Ed.) 2nd Edition

OR Case Studies Discussed in Chapter 11.2 of Maynard's Industrial Engineering

Handbook, 5th Edition
http://www.pitt.edu/~jrclass/or/or-intro.html

REFERENCES

Leachman, R. C., R. F. Benson, C. Liu and D. J. Raar, "IMPReSS: An Automated

Production-Planning and Delivery-Quotation System at Harris Corporation -
Semiconductor Sector," Interfaces, 26:1, pp. 6-37, 1996.
Rigby, B., L. S. Lasdon and A. D. Waren, "The Evolution of Texaco's Blending Systems:
From OMEGA to StarBlend," Interfaces, 25:5, pp. 64-83, 1995.
Flanders, S. W. and W. J. Davis, "Scheduling a Flexible Manufacturing System with
Tooling Constraints: An Actual Case Study," Interfaces, 25:2, pp. 42-54, 1995.

101
Subramanian, R., R. P. Scheff, Jr., J. D. Quillinan, D. S. Wiper and R. E. Marsten,
"Coldstart: Fleet Assignment at Delta Air Lines,", Interfaces, 24:1, pp. 104-120, 1994.
Kotha, S. K., M. P. Barnum and D. A. Bowen, "KeyCorp Service Excellence
Management System," Interfaces, 26:1, pp. 54-74, 1996.

Industrial Engineering Statistics

F.W. Taylor himself advocated maintaining of records and data for decision making.
The other industrial engineering pioneers also promoted record keeping and data
analysis. As sampling based decision making became more robust, industrial
engineers promoted it as a productivity improvement initiative and imperative. One
of the prominent areas of application is statistical quality control. Sampling was also
used in work measurement and work sampling technique was developed in
industrial engineering. Now six sigma, a statistics based technique is being promoted
by the IE profession.

F.W. Taylor has indicated that data collected for machine shop will be in thousands
of pages. Harrington Emerson included records in his book 12 Principles of Efficiency.
Their contemporary, professor of industrial engineering, Diemer wrote:

Department of Records.
"It is primarily a research and advisory department the results of whose
investigations and whose recommendations are brought up at such meetings of
department heads and others as may have been predetermined. It is the duty of
the record department to see that records kept by various departments are not
merely kept and stored away, but that from each set of records is secured a
method of most effective analysis so that the records of the past may be compared
with records of the present and conclusions may be drawn as to future action. The
individuals engaged in this department must be experts in theory of accounts, the
science of statistics, the art of graphical presentation and cost accounting. The
tendencies and facts indicated by an analysis of the records must be brought forcibly
to the attention of all individuals whose actions based on experience and intuition
differ from the action indicated by an analysis of figures, records and statistics."

Reference: Factory Organization in Relation to Industrial Education

Author(s): Hugo Diemer
Source: The Annals of the American Academy of Political and Social Science, Vol. 44,
The
Outlook for Industrial Peace (Nov., 1912), pp. 130-140

Industrial engineering has taken up the responsibility of using statistics to make

processes in organizations efficient. May be Walter Shewart is the first statistician to
develop a systematic method for applying the concepts and methods of statistics to
industrial process control problems and industrial engineering has adopted statistical
process control as a method to be installed in companies through IE department.

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The role of statistics as a tool of management
J. M. Juran
Statistica Merlandica
Volume 4, Issue 1-2, February 1950, Pages 69-79
First published: February 1950
https://doi.org/10.1111/j.1467-9574.1950.tb00414.x
Paper presented at the 26th session of the International Statistical Institute in Bern,
September 1949.

Growth of the mass production industries has posed new and complex problems in
industrial management. Scientific solution of these problems necessitates statistical
analysis of the vast quantities of data generated in these industries as a by-product.

Improvements bordering on the spectacular have been achieved in selected

instances of industrial applications of statistical analysis. Quality control and market
research afford two such instances.

The professional statistical societies can do much to aid the greater utilization of
statistics in industry by:

(a). organizing in each society a major division to deal with the problems of statistics
in industry.

(b). sponsoring joint meetings with societies of managers, industrial engineers, and
others interested in industrial statistics.

Important applications of statistics in industrial engineering: Work Sampling,

Statistical Quality Control, Design of Experiments to improve productivity, Six Sigma

Variability

No two objects in the world around us, nor any two actions performed by the
same or by different individuals, are exactly identical. Precision machine parts
produced in quantity by the same operator busing identical tools and equipment will,
upon examination show a definite variability.

Manufacturers try to reduce the variability of their output. The complete elimination
of variability in production is usually not feasible, and would be entirely
uneconomical even if feasible. Instead, the manufacturer's philosophy is based on a
tolerable, statistically predictable, level of imperfect product.

Source: Siegmund Halpern, The Assurance Sciences, Prentice-Hall, Inc,.

Englewood Cliffs, New Jersey, 1978,p.66.

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Quality control enables us to ascertain sudden or gradual changes in product
variability (or establish trends) to permit the institution of timely corrective action
that will avoid production of costly scrap.

Industrial Engineering Economics

An Article to Note: “The Role of IE in Engineering Economics.”
By Riel, Philippe F.
IIE Solutions, April 1998

Industrial engineering (IE) plays a significant role in engineering economics. IE promotes investment
justification processes that determine the appropriateness and value of projects. It also supports
investment analyses correlated with the overall corporate strategy. Moreover, IE advocates
evaluation processes that advance interdisciplinary thinking among company employees who design
cost models and evaluation frameworks that are utilized in decision support systems for a variety of
technological projects.

The idea that I advocate in this article is that the set of evaluation methods of Engineering Economics
is an efficiency improvement tool in the hands of industrial engineer. Industrial engineering is human
effort engineering and system efficiency engineering.

The system functional designers come out with an effective system design that produces an output
acceptable to the customer and may also be profitable with reference to the rate of return prescribed
by the organization. That does not mean that it is the most efficient solution. In the system
engineering process, there is a step in which the proposed basic system is evaluated in various
dimensions and further optimization is done. Industrial engineers make efficiency evaluation in
various dimensions and further improve the efficiency. Engineering economics is one such area.
Engineering economics indicates that search for economic efficiency has to take place on either side
of currently proposed engineering equipment. Industrial engineers have to consider various
engineering alternatives to the one currently proposed by the system synthesizer to evaluate the
current efficiency and if needed propose alternatives that improve the system efficiency using
engineering economics methods.

A Quote

“Engineering Economics is applicable to all the fields of engineering since engineers design and make
things that people buy. However, it is especially significant to Industrial Engineering, Systems
Engineering, and Management Engineering, since these disciplines often are involved in the cost
management of engineering systems.”

http://www.download-it.org/free_files/Pages%20from%20Chapter%2016%20-%20Engineering%20Ec
onomics%20-1faea7ed1d0c63b4b3980e536ad46e1e.pdf

Engineering Economic Appraisal - A Special Role for Industrial Engineers

104
Engineering economic analysis is to be carried out by all engineers. These analysis reports must be
appraised by IE department engineers. IEs can evaluate whether sufficient technical alternatives were
considered in proposing the technical solution now recommended and then check the data and
calculations of the economic analysis. From IE department, the proposal can go the project appraisal
committee.

Human Effort Industrial Engineering

Human effort industrial engineering is a focus area of industrial engineering.

Relevant Principles of Industrial Engineering

Human effort engineering for productivity - Principle of Industrial Engineering

In the resources used in engineering systems, human resource is important because
all economic activity is to satisfy needs of various categories of persons. Human
resources employed in engineering systems have their own needs. Industrial
engineers are unique in engineering disciplines in taking up the engineering of
human effort. They have to synthesize the theories of human sciences, some of
which are developed by industrial engineering also, to design human work for an
optimal combination of productivity, income, comfort, health, safety and satisfaction
of the employed.

Motion economy - Principle of Industrial Engineering

Operators use motions to do work directly or indirectly through machines. Principles
of motion economy were developed by Frank Gilbreth initially. The set of principles
is being extended by further research studies. They need to be employed in all
industrial engineering studies in the redesign of human work in engineering systems
of all branches.

Operator comfort and health - Principle of Industrial Engineering

As human effort engineers, industrial engineers are also concerned with comfort and
health of operators. The productivity improvement should not lead to discomfort,
fatigue and musculoskeletal disorders. Each human effort redesign project must be
accompanied by an assessment of the comfort, fatigue and health dimensions

Selection of operators - Principle of Industrial Engineering

Different types of engineering trades and work require different types of proficiency
from operators. Industrial engineers as well as managers have to identify the
proficiency required and select persons for specific operations. Science provides the
basis for identifying the proficiencies required for a trade and also the method of
evaluating various persons.

Training of operators - Principle of Industrial Engineering

Industrial engineers have to train the operators in the new machine methods
proposed by them and in the new man motions. The need to demonstrate the

105
expected output from new methods by specially trained IE department operators is
to be emphasized for acceptance of the new methods and resulting higher output.

Motion Study

Motion study is the basic method to study the effort of men in using hands, hand
tools and machines and machine tools. Stop watch time study is used to determine
the best practice of doing any element of work and such best elemental movements
are incorporated in various tasks and operators are trained in the new productive
way. Operator comfort, safety, and health are given due consideration in redesigning
work in human effort industrial engineering.

Purpose: The goal of motion study is to enhance work performance (quantity and
quality of output) of the human operator through analysis and improvement of body
and hand movements. Motion study can be thought of system improvement at a
micro level and is a part of human effort industrial engineering.

In the contemporary work environment, motion study also involves reducing the
ergonomic stresses associated with a job. This reduces costs (medical treatment and
time lost) associated with work injuries. It may also reduce production losses
associated with hiring and training replacement workers as well as rehabilitation of
persons with work-related injuries.

Motion economy was proposed and developed by Frank Gilbreth through various
articles and books and became an important subject of industrial engineering as
Time and Motion Study or Motion and Time Study. This subject was modified by
European thinkers and practitioners of productivity improvement as Work Study, by
proposing methods study as an additional component.

Principles of Motion Economy are to be used in motion design, motion analysis,

motion study of human operators. Motion design is a technique of Human Effort
Industrial Engineering, a core focus area of Industrial Engineering. They can also be
used in robot motion design.

Use of the Human Body

1. The two hands should begin as well as complete their motions at the same time.

2. The two hands should not be idle at the same time except during rest periods.

106
3. Motions of the arms should be made in opposite and symmetrical directions and
should be made simultaneously.

4. Hand and body motions should be confined to the lowest classification with which
it is possible to perform the work satisfactorily.

5. Momentum should be employed to assist the worker wherever possible, and it

should be reduced to a minimum if it must be overcome by muscular effort.

6. Smooth continuous motion of the hands are preferable to straight line motions
involving sudden and sharp changes in direction.

7. Ballistic movements are faster, easier and more accurate than restricted (fixation)
or controlled movements.

8. Work should be arranged to permit an easy and natural rhythm wherever

possible.

9. Eye fixations should be as few and as close together as possible.

Arrangement of the workplace

10. There should be a definite and fixed place for all tools and materials. (5S)

11. Tools, materials and controls should be located close to the point of use.

12. Gravity feed bins and containers should be used to deliver material close to the
point of use.

13. Drop deliveries should be used wherever possible.

14. Materials and tools should be located to permit the best sequence of motions.

107
15. Provisions should be made for adequate conditions for seeing. Good illumination
is the first requirement for satisfactory visual perception.

16. The height of the work place and the chair should preferably arranged so that
alternate sitting and standing at work are easily possible.

17. A chair of the type and height to permit good posture should be provided for
every worker.

Design of tools and equipment

18. The hands should be relieved of all work that can be done more advantageously
by a jig, a fixture, or a foot-operated device. (Jig and Fixture Design)

19. Two or more tools should be combined wherever possible. (Combination Tools)

20. Tools and materials should be prepositioned whenever possible.

21. Where each finger performs some specific movement, such as in typewriting, the
load should be distributed in accordance with the inherent capacities of the fingers.

22. Levers, hand wheels and other controls should be located in such positions that
the operator can manipulate them with the least change in body position and with
the greatest speed and ease.

References
Ralph M. Barnes, Motion and Time Study Measurement of Work,
John Wiley & Sons, New York, 1980

Productivity Measurement
Relevant Principles of Industrial Engineering

Productivity measurement - Principle of Industrial Engineering

To maintain system level focus, productivity measures at system level have to be
developed and used. The relation between productivity measures at the enterprise
level, process level, and work station level have to be established to facilitate
decision making.

Work measurement - Principle of Industrial Engineering

To determine the best combination of motion elements, measurements of the time
required to do each motion as well as bundles of motion are needed. Work
measurement is an important measure in industrial engineering to select the best

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work method for machine elements, purely manual work elements or a combination
of man-machine work elements. It is useful to set day’s task for an operator.
Task-based incentives can be set based on the standard time which is an output of
work measurement.

Cost Measurement - Principle of Industrial Engineering

Productivity improvement has to lead to decreased cost at the unit level for products.
The ultimate proof of productivity improvement is the reduced unit cost reflected in
the reported unit cost of products. As cost accounting is a well-developed
independent area now with statutory bodies in many countries, industrial engineers
have to work in cooperation with them to get the representative cost figures that
are reliable for decision making.

Industrial Engineering Data and Measurements

Industrial engineering is engineering done in response to data generated as

engineering products are produced or as engineering processes are used in the
organizations. The important data used in industrial engineering are costs, human
factor related data, time taken for completing machine tasks, manual tasks and
man-machine tasks, productivity related data, defects related data and resource
related data.

Cost data is the earliest focus for industrial engineers. Henry Towne and F.W. Taylor
first focused on cost data based industrial engineering. Then, the importance of task
completion times was pointed out by Halsey and Taylor came out with time study to
find the time taken by manual tasks. Taylor also pointed out to the need to
calculated machine task completion times by formulas. Tayor and Gilbreth focused
on fatigue and its measurement. The definition of productivity emerged and
productivity measurement started. Both Taylor, who advocated redesign or tasks,
methods and processes and Miles who advocate redesign of products strongly
emphasized the objective of maintaining the quality of the system, product or
process while redesigning for cost reduction. Thus industrial engineers have to make
defect or quality measurement before and after redesign and make sure that quality
deterioration does not take place in any dimension.

Thus number of IE measurements have to be made by industrial engineers to do

industrial engineering and present persuasive redesign projects to management for
implementation.

Cost Measurement and Analysis-A Necessary Part of Industrial Engineering

Education & Training
Balbinder S. Deo and Doug Strong
Balbinder S. Deo, Assistant Professor, Department of Finance & Management
Science,
College of Commerce, University of Saskatchewan, 25 Campus Drive, Saskatoon, SK,
Canada S7N 5A7.

109
Doug Strong, Professor in the Department of Industrial Engineering, University of
Manitoba,
Winnipeg, Manitoba, Canada R3T 5V6.

Some Important Points made in the paper.

One of the basic duties of Industrial Engineering professionals is to make

improvements in operations, and systems of operations, to reduce the cost of
operations.

Two assumptions play a major role in promoting the use of physical measures of
productivity.

1. There exists an inverse relationship between physical measures of productivity

and cost.
2. Increasing the physical productivity of resources used in production operations
can reduce the cost of production of a manufactured product or service.

These relationships may hold true provided reduction in the physical quantity of one
resource in one operation does not increase the consumption of other resources in
the same operation and / or in other operations of the production system. Gain in
the physical productivity of one resource may cause loss in others. For example,
increase in the productivity of labor by employing high production capacity machines
may cause loss in the productivity of machinery employed or vice versa. In a similar
fashion, within a production system, gain in physical productivity measure of one
functional area may cause loss in productivity of other related functional areas.

Improvement in productivity at the firm level, not just at the functional level, can be
helpful in reducing the cost of production.

The measurement activity done by cost accounting accounts for material, labor and
expenses. To do this all resources used by the organization are recorded for the
purchase, use and salvage disposal if any. Thus resources are measured as part of
cost measured. Defects and defectives produced are also recorded in cost
accounting records based on shop production data.

Cost Measurement in Engineering Profession - An Historical Perspective

Increasing sales and reducing cost of production by productive use of resources in

operations can achieve increase in profit. The use of cost as a measure of
productivity is not new among engineering professionals. Literature describing the
history of engineering provides significant evidence of its use and promotion among
engineers by the pioneers of the profession.

Henry C. Metcalf (1885), as a superintendent of ordnance depots, realized the

importance of cost measurement and analysis in manufacturing. He proposed to
measure costs to the minutest detail possible within the organization to measure the

110
efficiency of manufacturing and administration operations and also to create plan of
cost of operations by knowing the detailed elements of cost involved for each
operation performed on a product during manufacturing process. He published his
thoughts in a book titled “The Cost of Manufactures and the administration of
Workshops, Public and Private” in 1885, for providing guidance to other engineering
professionals in the field.

Henry Towne (1886), another engineering professional, wrote a paper titled

‘Engineer as an Economist’ for one of the meetings of The American Society of
Mechanical Engineers. According to him, determination of cost was one of the
important duties of an engineer. To achieve this end he proposed the establishment
of a separate shop accounting section at each workshop level to collect cost related
information to meet the cost information needs of engineering professionals.

Hugo Diemer (1910), is the first faculty member of Industrial Engineering subject at
Pennsylvania State College, quoted F.W. Taylor's appeal to engineering
professionals to take up the responsibility of cost related data collection and analysis
as part of profession.

Charles Buxton Going published a book titled, "Principles of Industrial Engineering"

in 1911. He called industrial engineering, “New branch of engineering grown out of
the rise of, and enormous expansion of the manufacturing system.” This branch of
engineering, according to him, “has drawn upon mechanical engineering, economics,
sociology, psychology, philosophy and accountancy to form a distinct body of science
of its own”. In this definition of industrial engineering, inclusion of the subjects of
economics and accountancy testify to the fact that the cost measurement and
analysis was regarded as part of industrial engineering theory and practice at that
time.

Howell, in his presentation at the 1995 International Industrial Engineering

Conference, advised industrial engineers to reclaim their traditional industrial
engineering responsibilities, such as, measurements of labor costs, manufacturing
methods, and productivity improvement, along with other responsibilities so that
their demand in industry, job title and functional identity remains intact. According
to him, cost estimation should be one of the areas for which an industrial engineer
should also be responsible and accountable.

Recent Developments

Recent studies by Barnes (1991), Dhavale (1992), and Eaglesham (1998), found in the
Industrial Engineering literature on Activity Based Costing technique, broadly point
out that some industrial engineers take interest in cost measurement.

Lenz and Neitzel (1995) developed their own methodology to develop a cost
simulation model. In this model, they have used a cost equation that consists of
eight components, such as station cost; labor cost; overhead cost; inventory cost;
automation cost; capacity cost; material cost; and indirect cost. In this type of

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modeling, they claimed, all performance measures can be translated into costs by
applying cost equations to the results of factory model.

Deo (2001) developed an Operation Based Costing model to measure cost of each
resource in each operation, and the cost of each operation in a production system. In
this model, an operation is considered as the basic unit of production system. The
structure of the model matches the typical structure of an operation.

It is observed by the authors that cost measurement and analysis is slowly

becoming one of the basic requirements for various job openings related to
industrial and manufacturing engineering area. Education and training of industrial
engineers in cost measurement and analysis, can give them an extra advantage in
raising productivity and reducing cost in industrial organizations. Industrial
engineering schools and departments need to introduce the subject as a necessary
part of industrial engineering education and training for future generation of
industrial engineers.

Work Measurement

F.W. Taylor focused on reduction of machine time and operator times as the
foundation for productivity improvement. So the machine time and operator time
have to be measured and the rationale behind the time taken has to be understood.
Science needs to be developed to hypothesize and validate input variables and time
required to complete various elements of operations and processes. Then inputs can
be modified using engineering alternatives and time can be reduced. Taylor gave the
name of "Time Study" to this process of measuring time, understanding the time
taken to do a task and reducing the time by redesigning the process, operations and
elements.

Hence in industrial engineering, to improve performance and productivity, time

taken to complete tasks and elements are measured. Time taken by men for manual
elements, time taken by machines for machine elements and time taken by robots
etc. are measured in work measurement either by direct observation or standard
data or predetermined standard data which is more universal. Time taken by
machine elements are determined by formulae determined for various machines
and processes.

Productivity Measurement - Industrial Engineering Measurements

Productivity in simple terms is production quantity for unit of each resource utilized.
These simple measures are called partial productivity measures. Productivity can
be measured for unit input of various combinations of resources by defining unit of
inputs appropriately. For output from a specific machine can be measured. Output of
manpower of a section can be measured. Productivity is also defined by unit of
total resources. In this case, all outputs and inputs are expressed in money terms.

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As an example, output of a machine tool can be calculated and whether it is
improving or not over time can be assessed. Productivity improvement occurs if the
output of the machine tool per unit time is increasing over time. The output can be
expressed as output of parts or as revenue earned or material removed or as cost of
production. The decision of the output is based on the appropriateness to the
situation in the organization.

Waste Measurement

Waste elimination is the objective of industrial engineering. The paper "Scientific

Management" by Taylor is focused on eliminating waste of human effort in
unnecessary and inefficient motions, movements and activities of men.

It is Taiichi Ohno, we brought the waste measurement into more focus with his 7
waste model.

In the TPM model, six big losses and as a further breakup 16 losses were indicated.
Now measuring these wastes with respect to standards and eliminating these wastes
apart from improving the standard themselves has become a significant pursuit.
Hence waste measurement is now an important IE Measurement activity.

Productivity Management
In the Eleventh edition of "Operations Management for Competitive Advantage"
Chase, Jobs and Aquilano start the preface with statement "Operations Management
(OM) has been a key element in the improvement in productivity in businesses
around the world." Productivity growth created by operations management creates
competitive advantage.

Productivity is defined in simple terms as (output of goods and services)/(input of

resources) and productivity improvement results in reduction of unit cost of
products of the organization. Henry Towne, in a paper presented in 1886 in the
ASME Annual meeting proposed that reducing cost of production is the responsibility
of engineers entrusted with shop management and works management.

"Gain Sharing" Productivity Benefit - Towne

Involving workmen in the task of improving productivity and decreasing the cost of
production received attention and Towne mentioned in 1886 itself that he will
present a paper shortly on the topic

In the paper presented in 1889, with the title "Gain Sharing" Towne suggested a plan
of sharing the reduction of cost production with workmen and foremen. He gave his
argument of the same.

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The factors affecting the profit may be divided into several distinct groups, as
follows :

1. Those contributed or controlled by the owner or principal, —such as capital, plant,

character of buildings, machinery and organization; and, to a greater or less degree,
the skill, experience, industry, and ability of the owner so far as he personally
manages the business.

2. Those influenced by the mercantile staff, — the buyer and the selling agent in the
case supposed.

3. Those determined by causes beyond the control of the principal and his agents;
such as fluctuations in cost of raw material or in the market value of the finished
product, the rate of interest, losses by bad debts, etc.

4. Those influenced by the workmen or operatives ; such as care of property,

economy in the use of material and supplies, and, chiefly, efficiency in the use of
machinery and employment of labor.

The right solution of "gain sharing" with persons involved in increasing profit will
manifestly consist in allotting to each member of the organization an interest in that
portion of the profit fund which is or may be affected by his individual efforts or skill,
and protecting this interest against diminution resulting from the errors, of others,
or from extraneous causes not under his control. Such a solution, while not simple, is
attainable under many circumstances, and attainable by methods which experience
has shown to be both practical and successful.

In the case of employees it will be best solved if it can be so formulated that as

presented to the employee, it becomes an invitation from the principal that they
should enter into an industrial partnership, wherein each will retain, unimpaired, his
existing equitable rights, but will share with the other the benefits, if any are realized,
of certain new contributions made by each to the common interest. Let us suppose
that the wages of the operatives are already fairly adjusted according to the
prevailing scale, so that for the employer to offer them a portion of his profits
without a guaranty of return would be equivalent to his giving them more than the
fair market value of their services; while if, under this inducement, they gave him
better or more work than before, they would not receive fair recompense in case, by
reason of causes beyond their control, his business yielded no profit. But let us
suppose, further, that the principal, wishing to enlist the self-interest of his
employees to augment the profits of the business, should offer to the operatives a
proposition somewhat as follows:

"I have already ascertained the cost of our product in labor, supplies, economy of
material, and such other items as you can influence. I will undertake to organize and
pay for a system whereby the cost of product in these same items will be periodically
ascertained, and will agree to divide among you a certain portion (retaining myself

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the remainder) of any gain or reduction of cost, which you may affect by reason of
increased efficiency of labor, or increased economy in the use of material, or both;
this arrangement not to disturb your rates of wages, which are to continue, as at
present, those generally paid for similar services."

For this system, I have adopted the designation of "Gain-sharing." The system is
now in actual use as affecting some 300 employees, has been in operation more
than two years and is demonstrated to be practical and beneficial. Its most obvious
application is to productive industries, especially those whose product is of a simple
or uniform kind; but it may be adapted to many others, and also to the business of
large mercantile houses. It is equally applicable to cases where labor is employed
either by the piece, by the day, or by contract, and in no way impairs the existing
freedom of the relation between employer and employee, but tends to confer
substantial benefit on both sides.

The basis or starting-point of the system is an accurate knowledge of the present

cost of product ( or, in the case of mercantile business, the cost of operating it ),
stated in terms which include the desired factors, that is, those which can be
influenced or controlled by the employees who are to participate in the result, and
which exclude all other factors. In some cases the previous method of accounting or
book-keeping may have been such as to supply this information, in which case the
gain-sharing system can be easily and promptly organized. As a general rule it may
be stated that, in the case of an account affecting the operatives in a producing or
manufacturing business, the following items should be included, viz. : labor at cost,
raw material, measured by quantity only ( for which purpose an arbitrary fixed price
may be assumed ); incidental supplies, such as oil, waste, tools, and implements at
cost; cost of power, light, and water, where means exist for correctly measuring
them (for which purpose it often pays to provide local meters); cost of renewals and
repairs of plant; and, finally, the cost of superintendence, clerk hire, etc., incident to
the department covered by the system. In like manner the following items should be
excluded viz. : market values of raw material (which are liable to fluctuation);
general expenses, whether relating to management of works or to commercial
administration, and, in general, all items over which the operatives can exercise no
control or economy.

I will organize the system, will assume the cost of book-keeping and other expenses
incident to it, and will provide all the facilities reasonably required to assist you in
reducing the cost of product; I will credit the account with the output at the cost
price heretofore obtaining, namely $1 per unit, and will charge it with the items in
the inclusive list; if at the end of the year the credits exceed the charges, I will divide
the resulting gain or reduction in cost, with you, retaining myself one portion — say
one-half — and distributing the other portion among you pro rata on the basis of the
wages earned by each during the year. " Suppose, then, that at the end of the year it
was found that the cost per unit of product had been reduced from $1 to 95 cents,
that the total gain thus resulting was $800, and that the aggregate wages paid during
the year had been $10,000. One-half of the gain would be $400, which would equal 4

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per cent, on the wages fund, so that each operative would be entitled to a dividend
of 4 per cent, on his earnings during the year. This is equivalent to two weeks' extra
wages, no mean addition to any income, and amounting, even in the case of a
laborer earning $1.50 per day, to a cash dividend of $18 at the end of the year.

To accomplish this the Company agrees to organize the method of operation, to

keep the necessary accounts, and in general to facilitate matters so far as it
reasonably can; the employees, on the other hand, agree to use their best efforts to
increase the efficiency of their work, to economize in the use of supplies and
material, and in general to do their share toward reducing the cost of finished
products.

Hasley

Criticism of Gain Sharing

First The workmen are given a share in what they do not earn. Increased profits may
arise from more systematic shop management, decreased expenses of the sales
department, or many other causes with which the workmen have nothing to do.
Anything given them from such sources becomes simply a gift, the result of which is
wholly pernicious —in fact the entire system savors of patronage and paternalism.

Hasley Plan

The plan assumes two slightly different forms, according to the nature of the work ;
one form being suited to work produced in such quantities as to be reducible to a
strictly manufacturing basis, and the other form to the more limited production of
average practice. In both forms the essential principle is the same, as follows: The
time required to do a given piece of work is determined from previous experience,
and the workman, in addition to his usual daily wages, is offered a premium for
every hour by which he reduces that time on future work, the amount of the
premium being less than his rate of wages. Making the hourly premium less than the
hourly wages is the foundation stone on which rest all the merits of the system,
since by it if an hour is saved on a given product the cost of the work is less and the
earnings of the workman are greater than if the hour is not saved, the workman
being in effect paid for saving time. Assume a case in detail : Under the old plan a
piece of work requires ten hours for its production, and the wages paid is thirty cents
per hour. Under the new plan a premium of ten cents is offered the workman for
each hour which he saves over the ten previously required. If the time be reduced
successively to five hours the results will be as follows :

In certain classes of work an increase of production is accompanied with a

proportionate increase of muscular exertion, and if the work is already laborious a
liberal premium will be required to produce results. In other classes of work
increased production requires only increased attention to speeds and feeds with an
increase of manual dexterity and an avoidance of lost time. In such cases a more
moderate premium will suffice.

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F.W. Taylor - Productivity Management

Productivity management activity was practiced and described in a systematic

manner in production shop activities by F.W. Taylor.

In the paper, "A Piece-Rate System, Being a Step Toward Partial Solution of the Labor
Problem," presented to the American Society of Mechanical Engineers in 1895. F.W.
Taylor described a system of management, which was rapid in attaining the
maximum productivity of each machine and man. Thus, productivity management as
an area of management was introduced in the published literature by Taylor in 1895.

Evolution of Productivity Management Practice by Taylor

F.W. Taylor started the productivity improvement and management practice with
the system implemented by him in the works of the Midvale Steel Company, of
Philadelphia . He described the system and developed it further in number of papers
and books. He also implemented the system in number of companies as an executive
and consultant.

Contribution of Taylor – Piece Rate System

The system described in 1895 paper [6] had the objective of rapid attainment of the
maximum productivity of each machine and man. It consisted of three principal
elements:

(1) An elementary rate-fixing department.

(2) The differential rate system of piece-work.
(3) A method of managing men who work by the day.

The rate fixing department is actually an engineering department in the machine

shop that determined the production processes of the goods produced and
operations of the machine to get maximum productivity from the machine. The
department personnel also observed large number of operators working on the
machines at elementary operation levels and determined the best way of doing
manual elements. The choice of the best ways of machining operations and manual
operations was done on the basis of time taken. Hence time study or measuring time
is an essential element of this system. But it is very important to emphasize that in
machine shops and in general engineering systems, improvement of the engineering
aspect is the core of the productivity improvement and management system
proposed by Taylor.

Taylor – Shop Management

In Shop Management presented in 1903, Taylor defined art of management "as

knowing exactly what you want men to do, and then seeing that they do it in the
best and cheapest way." The definition identifies two activities. Managers of

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business or industrial organizations have to find out what goods and services the
market wants and decide what their organization can produce and sell at the
prevailing market prices. The second activity is then focusing on the doing the
production at the cheapest way. This is an area of productivity improvement and
management. Taylor’s focus in shop management paper/book is productivity
improvement and management. He elaborated the system that he described in piece
rate system further in shop management. He stated that there was enormous
difference between the amount of work which a first-class man can do under
favorable circumstances and the work actually produced by the average man of the
time. The favorable circumstances in engineering sections/departments and
processes are to be created by redesigning the engineering elements. Presently,
industrial engineering identifies machine, material, energy and information as the
key engineering elements in engineering systems. All engineering aspects of an
engineering system are to be examined by industrial engineers to create favorable
circumstances that facilitate operators to get maximum productivity from the
machine effort as well as human effort.

In all man-machine systems the large increase in output is due partly to the changes,
in the machines or small tools and appliances, and the total gain made is due to the
redesign of the system that includes machine effort and human effort. Taylor gave
number of steps in organizing the productivity improvement effort at enterprise
level. He wrote that before starting productivity improvement effort, some issues
should be carefully considered: First, the importance of choosing the general type of
management best suited to the particular case. Second, that in all cases money must
be spent, and in many cases a great deal of money, before the changes are
completed which result in lowering cost. Third, that it takes time to reach any result
worth aiming at. Fourth, the importance of making changes in their proper order,
and that unless the right steps are taken, and taken in their proper sequence, there
is great danger from deterioration in the quality of the output and from serious
troubles with the workmen, often resulting in strikes.

Four principles were given in shop management for high productivity. There are:

1. Standardized conditions that enable an operator to complete a task with certainty.

2. A large definite daily task that promises extra income for higher than average
output.
3. High pay for success.
4. Loss in case of failure.

As part of productivity management, many details in the production shop, which

are usually regarded as of little importance and are left to be determined workmen,
and foremen, must be thoroughly and carefully designed and standardized as part of
plan of the work and directions for actual jobs are to be given based on such designs.
Some of the detail specially highlighted in cases of machine shop include the care
and tightening of the belts; the exact shape and quality of each cutting tool; the
establishment of a complete tool room from which properly ground tools, as well as
jigs, templates, drawings, etc., are issued and received back. Each machine tool must

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be standardized and a table or slide rule constructed for it showing how to run it to
the best advantage. Modern engineering is practiced with the help of drawings for
designs. Modern shop management for productivity is also to be done similarly
based on process and operation designs or instruction sheets which specify the time
to be taken to complete them.

Taylor made the statement in his shop management paper that almost all shops are
under-officered. He advocated increase in number of shop officers to as high as eight
as part of his productivity improvement organization. The role of top management in
introducing the productivity management activity was also described Taylor. They
have to understand the benefits and challenges of introducing the change in
management process and have to be prepared to handle the objections and
complaints that are likely to arise. They have to approve the investment required to
introduce the productivity management system and provide resources.

Taylor – Scientific Management

In the paper/book, Scientific Management, Taylor expressed the view that the
principal object of management should be to secure the maximum prosperity for the
employer, coupled with the maximum prosperity for each employee. He further
explained that the greatest permanent prosperity for the workman, coupled with the
greatest prosperity for the employer, can be brought about only when the work of
the establishment is done with the smallest combined expenditure of human effort,
plus nature's resources, plus the cost for the use of capital in the shape of machines,
buildings, etc. Or, to state the same thing in a different way: that the greatest
prosperity can exist only as the result of the greatest possible productivity of the
men and machines of the establishment--that is, when each man and each machine
are turning out the largest possible output. Thus productivity focus of the paper
“Scientific Management” is brought out clearly by Taylor.

Close, intimate, personal cooperation between the management and the men is the
essence of modern scientific or task management, which gives greatest possible
productivity. The emphasis on machine in machine shops is to be noted. Machine
is to be improved by industrial engineer first and then effort of man to operate the
improved machine operation has to be designed. Taylor in 1911, claimed that at
least 50,000 workmen in the United States were employed under the new scientific
management system; and they were receiving from 30 per cent to 100 per cent
higher wages daily. The companies that successfully employed the scientific
management had increased the output, per man and per machine, on an average to
double the earlier production.

Recent Publications on Productivity Management

Scott Sink authored the book “Productivity Management: Planning, Measurement

and Evaluation, Control and Improvement in 1985. He also described the
productivity management process with the starting point as productivity
measurement. The steps in the productivity management process are given as: (1)

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measuring and evaluating productivity; (2) planning for control and improvement of
productivity based on information provided by measurement and evaluation process;
(3) making control and improvement interventions; and (4) measuring and
evaluating the impact of these interventions. For productivity evaluation, standards
are to be generated by one of the various methods as appropriate. The methods
indicated include: 1. Estimation 2. Engineering approach 3. Historical information 4.
Normative values. Both Sumanth and Sink indicated large number of productivity
improvement methods and techniques which can be used for productivity
improvement.

Propokenko also described productivity management based on productivity

measurement and analysis. Recent research studies in productivity measurement
are summarized in a book on productivity management authored by Phusawat in
2013.

The literature reveals that Taylor started his productivity improvement publications
with a management system applicable to the whole enterprise using piece rate
system or day-payment system or both. But he highlighted in the paper that
elementary rate fixing is the primary tool or system. Differential piece rate helps in
implementing the output specified by rate fixing section. His subsequent works are
also aimed at the enterprise application of shop management or scientific
management.

Applied Industrial Engineering

The "Applied Industrial Engineering" term was used by Shafeek et al. [2014] . Rao
[2017] stated in Principles of Industrial Engineering that "Industrial engineering
defined as system efficiency engineering has application in all branches of
engineering. Productivity improvement is needed in engineering systems of all
branches and therefore industrial engineering needs to be used in all branches of
engineering. It needs to be taught in all engineering branches."

New engineering areas like biotechnology and nanotechnology are growing.

Productivity improvement is an essential activity in all technology systems. Industrial
engineering programme designers have to answer the question: Is there a need to
start education in a new technology now in the IE programme? Industrial
engineering professionals have to apply the current industrial engineering theory
and practice to the new technologies. Applied industrial engineering is application of
the current IE theory in new technologies and utilizing new technologies in IE
techniques. We all know presently, industry 4.0 is the revolution in all engineering
disciplines. In this context, the paper by Sackey and Bester [2016] exploring the
implications of industry 4.0 for industrial engineering is a laudable exercise.

What are the process steps in applied industrial engineering?

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An initial proposal.

Monitor - The technology environment for identifying new technologies.

Explore - The selected technology
Analyze - Measure and determine productivity improvement opportunities
Develop - Ideas to improve productivity
Analyze - Economics and optimization opportunities
Participate - in full project report finalization
Incorporate - Productivity improvements
Install - The project
Manage - Productivity maintenance and improvement activities in the projects and
technology

Modified steps

Monitor - Explore - Analyze - Develop - Optimize - Participate - Install - Improve

Brief explanation of the Applied Industrial Engineering - Process Steps

Monitor - Technology Monitoring

Explore - Technology Exploration
Analysis - Productivity Analysis of New Technology
Develop - Develop Productivity Knowledge of New Technology
Optimize - Optimize Productivity Engineering Ideas
Participate - Participate in New Technology Implementation Projects
Install - Be An Active Member of the Project Execution and Management Team
Improve - Continuous and Periodic Improvement of Productivity of the New
Technology

Kambhampati,Venkata Satya Surya Narayana Rao. (2017). Principles of industrial

engineering. IIE Annual Conference.Proceedings, , 890-895.
https://search.proquest.com/docview/1951119980

Sackey, S.M., and Bester, A., (2016), “Industrial Engineering Curriculum in Industry
4.0 in a South African Context,” South African Journal of Industrial Engineering
Vol. 27, No. 4, December, pp 101-114

Shafeek, Hani, Mohammed Aman, and Muhammad Marsudi, (2014), “From

Traditional to Applied: A Case Study in Industrial Engineering Curriculum,”
International Journal of Social, Behavioral, Educational, Economic, Business and
Industrial Engineering Vol. 8, No. 10, pp. 3378-87.

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Source:
https://nraoiekc.blogspot.com/2018/05/applied-industrial-engineering-process.html

In the book, Introduction to Modern Industrial Engineering, the principles, functions

and focus areas are introduced to the learners. Each focus area will be covered in
detail in separate books.

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