Course: Industrial Engineering

Fall Semester- 2017

Course Designation Elective

Credit 3
No. of Sessions/Week 2
Total Session Duration 3 hrs

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 Instructor Information

Dr. Muhammad Farhan Ausaf

» Office: ME 07

» Discussion Hours: Tue-Thu: 1430 – 1630 hrs

(Other times: email for appointment)

» Email: farhan.ausaf@hitecuni.edu.pk

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 Course: Industrial Engineering (ME 412)

Recommended Books:
 Industrial Engineering and Production Management by Martand
Telsang
 Industrial Engineering & Management by A.P.Verma
 Production and Operations Management by K.C.Arora

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 Course Contents

I. Facilities location, layout, handling, forecasting

and capacity planning
II. Work & Method study and measurements
III. Ergonomics
IV. Production planning, process planning &
Scheduling
V. Lean manufacturing and Kanban system.
VI. Special Topics
1. Break-even analysis
2. Analytical Hierarchy Procedure
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 Weekly Course Distribution
Week Topic
1. Facilities/Plant Location
2. Plant Layout
3. Material Handling
4. Forecasting
5. Capacity Planning
6. Work Study
7. Work Study
8. Ergonomics
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 Weekly Course Distribution
Week Topic
9. Production Planning
10. Process Planning
11. Scheduling

12. Break Even Analysis

13. Analytical Hierarchy Process

14. Lean Manufacturing
15. Kanban System
16. Course Review
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 Grading Policy

1. Quizzes 06 %

2. Sessional Exam # 1 15 %

3. Sessional Exam # 2 15 %
4. Projects 20 %

5. Assignments 04 %
6. Final Exam 40 %
Total 100 %

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 Course Learning Outcomes

• CLO-1: Identify planning requirements for plant/facility

components. (Cognitive, C1-Remember)
• CLO-2: Analyze and Solve problems related to industrial
engineering using techniques learned in the course.
(Cognitive, C4-Analyze)
• CLO-3: Study an existing facility/factory/location and
Recommend improvements based on techniques learned in
this course. (Cognitive, C5-Evaluate)

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 CLO-PLO Linkage

Learning PLOs to target

Teaching Assessment
Module No. CLO No. Domain
Methodology Methodology
with Level
I + II 1 Lectures + Sessional + C1 PLO-1
Discussion Final
III+IV+V 2 Lectures + Sessional + C4 PLO-2
Discussion Final
I-IV 3 Lectures + Report C5 PLO-6
Discussion

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What is Industrial Engineering?

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 Industrial Engineering

Other disciplines of Engineering

• Electrical Engineering is concerned with electrical systems and

designing circuits
• Mechanical Engineering is concerned with mechanical systems
and building devices
• Chemical Engineering is concerned with chemical systems and
explore chemical processes
• Civil Engineering is concerned with physical systems and build
structures
• So what is the domain of Industrial Engineering?
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 Industrial Engineering

• Industrial engineering is concerned with the design of

production and service systems.
• The industrial engineer analyzes and specifies integrated
components of people, machines, materials, and facilities to
create efficient and effective systems that produce goods and
services beneficial to mankind.
• The branch of engineering concerned with the design and
operation of industrial processes.

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 Domain of Industrial Engineering
• Design processes and systems that improve quality and
productivity
• Using knowledge of engineering, mathematics, business
administration, and management, focus on the way products
and services are made and performed.
• Though a combination of technical abilities, people skills, and
business savvy, analyze, design, build, and manage systems.
• Integrate combinations of people, information, materials, and
equipment that produce innovative and efficient organizations.

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 Domain of Industrial Engineering

• Industrial Engineering is the branch of Engineering most

closely related to human resources
• One of the main focuses of an Industrial Engineer is to
improve the working environments of people
– not to change the worker, but to change the
workplace
• Work to make others work better.

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 Main Areas
• Manufacturing, Automation and
Quality Control
• Work Design, Human Factors &
Ergonomics
• Simulation Analysis &
Optimization

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 Projects in which IE is involved
• Reducing waiting times for rides at an amusement park
• Developing the conceptual layout of a dockyard and ship repair
maintenance facility
• Designing the admissions procedure at a hospital
• Planning the flow of materials to the assembly line in an
automobile factory
• Discovering a new way to assemble a product that will prevent
worker injury
• Managing and tracking progress on the installation of a new
baggage tracking system for an airline
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 Projects in which IE is involved
• Determining the reliability and maintenance needs for the air
conditioning system of a hospital
• Determining what are the most cost-effective precautions to
reduce the occurrence and environmental impact of oil spills
• Optimizing how can a dress manufacturer lay out its patterns to
minimize wasted material
• Planning how often should the sales force of a frozen yogurt
company call on its customers
• Deciding how many elevators should be installed in a new office
building to minimize passenger waiting time
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 Projects in which IE is involved
• Assigning and scheduling doctors, nurses, and facilities in a
hospital
• Exploring what’s the most efficient method for routing a long-
distance telephone call
• Determine the best locations for building new fire and police
stations
• Planning how long should the warranty on an automobile or
appliance run, what should it cover, and what will it cost the
manufacturer
• Adding a conveyor system to automate material handing in an
electronics manufacturing facility
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 Projects in which IE is involved
• Creating an information system for tracking hazardous
materials
• Integrating systems for satellite tracking of shipments
and trucks
• Exploring the impact of adding robots to a
manufacturing line
• Creating software for efficient routing of package
delivery trucks
• Representing manufacturing and purchasing issues on a
team designing a new product
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 Projects in which IE is involved
• Developing a procedure for how workers will be evaluated
• Designing vehicles for the disabled
• Converting a major production line to use a just-in-time or
Kanban inventory system
• Developing and launching a material handling system for a
new automobile factory
• Representing a company in the design and construction of a
new manufacturing plant
• Developing prototype units for the cellular phone car
adapter market

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 Plant Location
The location which, in consideration of all factors
affecting products delivered to customers, cost of
product(s) to be manufactured, will afford the
enterprise the greatest advantages obtained by
virtue of location.

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 Need for selecting a suitable location
• A new factory
• An existing factory
– Expand
– Additional facilities
– Relocate
• Reasons for relocation
– Economic
– Social
– Political
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 Plant Location Problem
Region
• Selection of a region Industry Needs

• Selection of a community Community

• Selection of a particular site Locality Factors

Exact Site
Company Specific
Needs

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 Urban area
Advantages Disadvantages
• Communication • Cost of land
network
• Transportation • Land availability
• Skilled manpower • Labor cost
• Near Market
• Sourcing facilities • Industrial unrest
• Education, medical • Restrictions
etc.
• Services available

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 Rural Area
Advantages Disadvantages
• Cheap land • Transportation
• Cheap labor • Communication
• Good industrial • Sourcing
relations • Distance from
• Expansion, market
diversification • Lack of facilities
• Environmental
pollution
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 Suburban Area
Advantages Disadvantages
• Cheaper land • Eventual
• Developed conversion to
incentives urban area
• Skilled labor
• Facilities available

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Factors Influencing Plant Location
• Proximity to markets
• Supply of raw materials
• Transport facilities
• Infrastructure availability
• Labor and wages
• Law and taxation
• Suitability of land and climate
• Supporting industries and services
• Community and labor attitudes
• Social infrastructure
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Based on your intuition what should be a suitable
location for the following factories
1. Fertilizer Industry
2. Machine-tool industry
3. Textile Industry

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Subjective Selection Techniques

• Industry Precedence
• Preferential Factor
• Dominant Factor

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 Quantitative Techniques

• Composite Measure Method

• Bridgeman’s Dimensional Analysis

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 Composite Measure Method
• Develop a list of all relevant factors
• Assign a scale to each factor and designate
some minimum
• Weigh the factors relative to each other in
light of importance towards achievement of
system goals.
• Score each potential location according to the
designated scale and multiply the score by the
weights
• Total the points for each location and choose
the location on the basis of maximum score.

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 Problem
• There are three potential sites and five relevant factors
like transportation costs per week, labor costs per
week, finishing material supply, maintenance facilities
and community attitude.
• The costs are in rupees whereas for the last three
factors, points are assigned on 0-100 scale.
• The data is given in the table on the next slide.

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 Problem (contd.)
Factors Potential Location Sites
S1 S2 S3
Transportation cost/week (Rs.) 800 640 500
Labor cost/week (Rs.) 1180 1020 1160
Finishing material supply 30 80 70
Maintenance facilities 60 20 30
Community attitude 50 80 70

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 Problem (contd.)
• The location analyst has pre-established weights for
various factors. This includes a standard of 1.0 for reach
Rs. 10 a week of economic advantage.
• Other weights applicable are 2.0 on finishing material
supply, 0.5 on maintenance facilities and 2.5 on
community attitude.
• Also the organization prescribes a minimum acceptable
score of 30 for maintenance facilities.
• Select a suitable site based on the above given data.
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Bridgeman’s Dimensional Analysis
• Often objects cannot be represented in the same
dimensions
• It would be helpful if everything could be measured in
rupees.
• Some factors are difficult to measure and require different
dimensions to quantify.
• Weights for each factor can also be incorporated
𝑃𝑅𝐸𝐹𝐸𝑅𝐸𝑁𝐶𝐸 1 𝑋11 𝑤1 𝑋21 𝑤2 𝑋𝑛1 𝑤𝑛
• 𝑅12 = = . …
𝑃𝑅𝐸𝐹𝐸𝑅𝐸𝑁𝐶𝐸 2 𝑋12 𝑋22 𝑋𝑛2
• If 𝑅12 >1 outcome 2 is better else 1 is better
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 Problem
• Consider three alternative for a facility to be
located. Six factors are seen as the ones which
should guide the decision: Cost of land, Cost of
building, labor supply, Taxes, Community
attitude and research climate.
• The date is given on the next slides
• Using Bridgeman’s dimensional analysis
calculate which is the best option.

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 Problem (contd.)

Research Climate Points Labor supply

No school, reach organization exist
A few low quality schools
Good research organizations
Good schools, research groups
Excellent research climate
5 None available
4 Limited supply at premium rates
3 Acceptable supply for now
2 Adequate supply, acceptable ability
1 Plentiful supply, excellent ability

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 Problem (Contd.)

Factor Option1 Option2 Option3 Weight

Land Cost (Rs.) 6,00,000 3,00,000 4,50,000 5
Building cost (Rs.) 10,00,000 8,00,000 9,00,000 5
Taxes (Rs.) 8,00,000 5,00,000 6,50,000 5
Labor supply 2 1 3 3
Research climate 1 2 2 2
Community attitudes 3 1 3 3

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