Industrial

Management
Lecture-1
 Concept of Industrial
Engineering
The American Institute of Industrial
Engineers defined it as:
‘Concerned with the design, improvement
and installation of integrated systems of
people, materials, equipment and energy.’

- Detail analysis of the use and cost of

resources.(3M)

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 Why needed IE?
-To synchronize and optimize(3M,
method, money, management)
- To eliminate time, machine, money,
energy , resources
-To increase productivity
-To reduce cost, waste
- To improve method, skills and quality of
production

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 Industrial Management
# Management
A set of activities (planning, organizing, leading, and controlling) directed at an
organization’s resources (human, financial, physical, and information) to achieve
organizational goals in an efficient and effective manner.

# Organization
Group of people + Specific Purpose + Infrastructure (Deliberate structure+ Organogram)

# Industry
Organization involves input, processing & output and transforms a specific material into
a finished product

Industrial Management is the managerial process

conducted in the industry.

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 Organizational Resources
• Human resources
– Managerial talent and labor
• Financial resources
– Capital investments to support
ongoing and long-term
operations
• Physical Assets
– Raw materials; office and
production facilities, and
equipment
• Information
– Usable data, information
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Figure : Management
in Industry

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 Kinds of Managers by Level

Top managers Middle managers

Are the small group of executives
who manage the overall
organization. They create the
organization’s goals, overall
strategy, and operating policies.
are primarily responsible for
implementing the policies and plans
of top managers. They also supervise
and coordinate the activities of lower
level managers.

First-line
managers
supervise and coordinate the activities
of operating employees.

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Kinds of Managers by Area

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Kinds of Managers by Area

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 Changes
Impacting
the Manager’s
Job in the
factory
 Industrial Management:
Combination of Science & Arts
• The Science of Management
– Assumes that problems can be approached using
rational, logical, objective, and systematic ways.
– Requires the use of technical, diagnostic, and
decision-making skills and techniques to solve
problems.
• Art of Management
– Making decisions and solving problems using a
blend of intuition, experience, instinct, and
personal insights.
– Using conceptual, communication, interpersonal,
and time-management skills to accomplish the
tasks associated with managerial activities.
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 Table : Ten Basic Managerial Roles in
the Industry

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Skills required for a manager in the
industry
• Skills Approach
Technical skills
❖ Knowledge and proficiency in a specific field
Human skills
❖ The ability to work well with other people
Conceptual skills
❖ The ability to think and conceptualize abstract and
complex situations concerning the organization

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Skills Needed at Different Management Levels

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The Industrial Environment
• External Environment

General environment: everything outside an

organization’s boundaries—economic, legal, political,
socio-cultural, international, and technical forces.

Task environment: specific groups and organizations

that affect the firm.

• Internal Environment

Conditions and forces present and at work within an

organization
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Figure of Industrial Environments

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 Porter’s Five Competitive Forces regarding
industrial Environment
Threat of new entrants
Extent to and ease with which competitors can enter
market.
•Competitive rivalry
Competitive rivalry between firms in an industry.
•Threat of substitute products
Extent to which alternative products/services may replace
the need for existing products/services.
•Power of buyers
Extent to which buyers influence market rivals.
•Power of suppliers
Extent to which suppliers influence market rivals.
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A Model of Industrial Effectiveness

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Thanks For your attention