INDUSTRAIL ENGINEERING

References

Industrial engineering and production management by M.MAHAJAN Industrial engineering and management by O.P.KHANNA

MODULE 1

INTRDUCTION TO INDUSTRIAL ENGINEERING FUNCTIONS AND APLICATION OF INDUSTRIAL ENGINEERING ORGANISATIONAL STRUCTURE OF IE PRODUCTION AND PRODUCTIVITY TYPES OF PRODUCTION VALUE ENGINEERING

INTRODUCTION TO IE Industrial Engineering is a profession in which a knowledge of mathematical and natural science gained by study, experience and practices is applied with judgment to develop the ways to utilise economically the materials available and use it for the man kind. Due to competition in market, challenge is to make goods at right quality and quantity and at the right time and at minimum cost.
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Objective of IE
To increase the productivity by eliminating waste and non value operations and improve the utilisation of resources. It plays a vital role in increasing productivity To establish methods of improving the operations and controlling the production costs and reduce the wastages To develop programmes for reducing production costs

Activities of IE
Selection of processes and assembling methods Selection and design of tools and equipment Design of plant facilities Design and develop of planning and control systems Developing a cost control system Developing of time standards Installation of wage schemes Performance evaluation Project feasibility studies Supplier selection and evaluation

Industrial engineering approach

Analysis

Evaluate

Design

Implement

Develop

Functions of an IE
Developing the simplest and best way of doing work To develop wage and incentive schemes To develop a cost reduction and standard costing system To help in preparing a detail job description and systematic lay out To develop a standard training programmes

Techniques of IE
Method study Time study Motion economy Financial and non financial incentives Value analysis and job evaluation Production , planning and control Inventory control and material handling Ergonomics and operations research

Qualities of an IE

Basic requirements
good knowledge of various methods

Mental abilities Physical attributes Education Character requirement

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Typical organisation structure

ceo GM IE ME HR OM
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PRODUCTION

Defined as the transformation a set of inputs like men, materials and machines, money and energy into specified set of outputs like finished products in desired quality and quantity in order to achieve the objectives of the organisation

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Types of production
Batch production

Intermittent production
Job production

Production Assembly line

Flow production

Process production Mass production

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Flow or continuous production

Refers to the manufacturing of a large quantities s of a single or at a most a very few varieties of products with a standard set of process and a sequences The processing is done through a sequence of operations which forms a continuous flow It moves in such a way that the material passes through a interconnected operations

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Mass production
Refers to the manufacturing of goods in large scale The parts manufactured under mass production are combined in assembly line for making different products The production process is continuous The degree of mechanisation and automation

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Characterstics of mass production

Dedicated special purpose machines are used and fully automated Large volumes of products Shorter cycle time of production Lower process in inventory Perfectly balanced production lines PPC is easy and cost per unit is low Extent of supervision is less

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Advantages of mass production

Higher rate of production Higher capacity utilization Less skilled operator required Low in process inventory

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Limitations of mass production

Break down of a machine will stop the entire process High investment in production facilities Supervision is general rather than specific APPLICATIONS Mass production industries

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Process production

It is carried on continuously through a uniform and standardised sequence of operations

Process production

analytical synthetic
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Analytical process

Product 1
Raw materials Product 2

Product 3
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Synthetic process

Raw material 1 Raw material 2 Raw material 3

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FINISHED PRODUCT

Characterstics of process production

Dedicated plant and equipments Material handling is fully automated Maintenance is an important aspect Larger investment is required

APPLICATIONS Automobile industry Chemical and large production industry

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ASSEMBLY LINE PRODUCTION

It is a type of production that developed in automobile industry in USA In assembly line, each machine must directly receive material from the previous m/c and pass it on to next Location of m/cs is automatically regulated by the sequence of operation. Proper floor space requirement is

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INTERMITTENT PRODUCTION
Facilities must be flexible enough to handle a variety of products and sizes Basic product design changes from time to time Facilities arranged according to their functions Expert personnel is required for the job

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JOB PRODUCTION
Involves the manufacturing of a single component with the use of group of operators as per customers order Each order may be different from others The product is costly and nonstandardised Jobs are carried out of the customers specifications

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Characterstics of job production

High variety of products and low volume Special purpose machines are required Highly skilled workers are required Frequently changing set ups Large inventory is required

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ADVANTAGES OF JOB PRODUCTION

Variety of products can be made by using special purpose machines Operators will be more skilled in job production units Can use innovative methods and ideas if any

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LIMITATIONS OF JOB PRODUCTION

Higher set up cost High inventory level of raw materials required Skilled man power is required High production cost Higher material handling cost

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BATCH PRODUCTION

Manufacture of a product in small or large batches or lots at intervals by a series of operation, each operation being carried on the whole batch before any operation

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Characterstics of batch production

Large number of products are manufactured in lots Variable path material handling equipment is used Machines are arranged according to the sequence of operations , ie process lay out is used

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Advantages of batch production

Better utilization of plant and machinery Promotes functional specialization Flexibility to accommodate and process number of products Lower investment in plant and machinery

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Limitations of batch production

Complex material handling because of irregular and longer flows Longer production times Higher set up costs Lower utilisation of production facilities compared to mass production

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Applications of batch production

Machine shops , foundries , plastic moulding units and press shops

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Productivity
Defined as the efficiency of the production system expressed by the ratio output/input. Productivity means a balance b/w all factors of production that will give the maximum o/p with minimum effort. It is a quality that determines how well labour , capital , materials and energy are utilized.

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Scope for studying productivity

To eliminate scarp To reduce costs and make items cheaper To improve working conditions To enable the management to increase the efficiency

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Factors affecting productivity

Internal factors
Product factor Plant and equipment Technology Material energy Human factors Work methods Management skills

External factors
o Structural adjustment o Natural resources o Government and infra structure

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Productivity improvement procedure

Improve the basic process by research and development Provide more and improved ways to motivate the workers Standardize the product Improve methods of operation Improve organisation, production, planning and control Improve man power skills at all levels

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Productivity improvement techniques

TECHNOLOGY BASED

MATERIAL BASED

TECHNIQUE S

PRODUCT BASED

TASK BASED

EMPLOYEE BASED

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Reasons for low productivity

Frequent machine break down Lack of managerial skill Idle men Poor quality Shortage of materials

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Advantages of high productivity

Higher profit for the firm Better facilities and high payment Better customer satisfaction Effective utilisation of resources Better job satisfaction Increases sales and credibility Good relationship with suppliers

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Measurement of productivity

Objectives are
To study performance of a system To have a relative comparison with other systems To compare actual productivity with the planned productivity

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Kinds of productivity index

Material productivity Labour productivity Capital productivity Machine productivity

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Material productivity
MP= number of units produced cost of material can be increased by Proper choice of design and training Better planning and control Re cycling and re use of materials Waste reduction and scrap control

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Labour productivity
units produced total man hours required Can be increased by Selection of proper design and process Providing proper training and motivating by providing financial and non financial incentives Improving working conditions

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LP=

Capital productivity
turn over capital employed Can be increased by Better utilization of capital resources Careful make or buy decision

CP=

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Machine productivity
o/p total machine hours used Can be increased by By doing preventive maintence Using of skilled and properly trained workers

MP=

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Value analysis concept

Aims at a systematic identification and elimination of unnecessary costs It examines the design, method of manufacturing, material used , function and cost of each and every component in order to produce it economically with out decreasing its utility or reliability. Normally applied to existing rather than new products

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Value - definition
Defined as the combination of quality, efficiency , price and service which ensures the ultimate economy and satisfaction of the purchaser Value= function cost

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Types of values

Cost value-it is the cost of manufacturing a product Use value- the price paid by the customer or the manufacturer in order to maintain the products performance Esteem value-it is the measure of properties , attractiveness and qualities which attracts the customers to purchase the product Exchange value-can be exchanged for another product or money
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Objectives of value analysis

Simply and modify the product design Customer satisfaction Increase profit Promoting creativity and positive attitude among workers Standardisation Improve orangnisational efficiency To ensure greater returns from investment

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Reasons for poor value

Lack of time and information Lack of idea and misconceptions Habits and attitudes Politics and lack of fee Temporary circumstances that inadvertently becomes permanent

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Stages in value analysis

Orientation phase Information phase Functional analysis phase Creative phase Evaluation phase Development phase Presentation phase Implementation phase Follow up phase

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Advantages of value analysis

Reduces the cost of the product Better understanding of their jobs to workers Constant improvement leads to greater efficiency Creates cost and quality awareness among workers Motivates the employees to come forward with new ideas

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Help to satisfy the customer with companys products Dilutes resistance to change and accelerates the process of implementation Helps to avoid road blocks in industry

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