Basics of Industrial Engineering (IE)

Contents

I. Overview of IE
II.
III.

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Overview

□ Definition of Industrial engineering (IE)

● Industrial engineering is a branch of engineering dealing with optimization of complex processes or

systems by minimizing risks and maximizing utilization of labor and resources. It is concerned with the
prediction-evaluation-improvement of integrated systems of production factors - labor, materials,
equipment through the principles, expertise, and technologies in physical and social sciences.

□ IE experts

● IE experts support engineering for management by maximizing business profits and minimizing
business risks.

● IE experts in manufacturing process conduct scientific analysis of risky factors from development/
design ~ consumer stages, evaluate/predict results, and provide improvement measures in order to
secure superb manufacturing competitiveness.

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Manufacturing system & IE Functions

Integrated System Manufacturing Process Results

Products/operation/test spec./S/W
Product serial no.
Production/quality
Performance
performance
GMES MAN (Data)
LPS GTMS Production/quality
Production/quality control
control
Label
Label management
management Manufacturing
Manufacturing spec.
spec. management
management Production, quality
ST
Label Image
LINE info plan and performance
Model spec.
EQUIPMENT
Production plan
GSCM GST
VDMS2 BOM/ECN ST
Operation spec./
Supply
Supply management
management
BOM
Product
Model
Model coding
coding productionsales
diagram
Production plan
Supply plan
Model code MATERIAL
products/material GERP
CIS Code PLM BOM/ECN
Company-wide resource management
Marketing, R&D, Procurement,
Product/material
Product/material coding
coding Development
Development info
info Manufacturing, Logistics, Sales, Service,
Diagram/ Finance, Cost, Human Resources
METHOD Business
spec.
Diagram/spec.
Profits
CPCex
Cooperation
Subcontractor
Cooperation on
on development
development info
info

DFx, manufacturing platform, reasonable manpower,

IE capacity, advancement in non value added, Estimated evaluation
and setup of optimal system

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Manufacturing System
System
CIS (Code Information system)
PLM (Product Lifecycle Management)
CPCex
(Collaborative Product Commerce
Exchange)
GST (Global Standard Time
VDMS2 (Visual Display Model spec
system V2)
Description
Company-wide management system of code information
- Generate/relocate/search codes of models/materials/equipment.
system of product development information
- Product management process for timely and efficient supply of the
products which consumers and market need
- Manage product development projects & generate/search engineering
documents and BOM.
Sharing and cooperation of development information between its
subcontractors
- Transmit diagram data such as mold/PCB/mock-up/manual to
subcontractors.
- Request PCB design/production and manufacturing of metal masks/
jigs.
Standard time calculation system of products
- Calculate and manage standard time of model/ass’y production
process by product and plant.
Business management system of model codes and products specs.
- Request/review/approve model coding
- Manage model spec. change & search model specifications.
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Manufacturing System

System Description
Company-wide supply chain management system
GSCM (Global Supply Chain Management) - Search production/sales plans, performance, new model
status, etc.
Company-wide manufacturing execution system
GMES (Global Manufacturing Execution
system - Search production plan, performance, productivity, process
defect status, etc.
Company-wide resource management system
(Integrated system of Procurement/Production/Logistics/
GERP (Global Enterprise Resource
Marketing/Service/Finance)
Planning)
- Procure/ship equipment, credit card/tax invoices, the
existing SAP
management system of manufacturing specifications
GTMS
(The system developed by Product Engineering Group)
(Global Total Manufacturing
Specification) - Register and search assembly/adjustment/test specs and
MICOM S/W/printing specs.
product label spec. management and publishing system
LPS (Label Publishing system)
- Register and search label rating and label box specifications

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Analysis of Productivity

□ Definition of productivity
● Productivity is a measure of the efficiency of production and a ratio of production output to input
resources.

□ Overview of productivity
1) All enterprises are constrained by limited resources (e.g. time, money, labor, equipment, management
ability, raw material, parts, information, etc.) regardless of size and type. Thus, they have to consider
how to achieve their aims by maximizing utilization of limited resources, which refers to productivity.
2) Five main factors for production: Labor, materials, equipment, operation methods, and operation
conditions
3) Productivity calculation: A ratio of production output to input
Output Maximum effects
Productivity = -------------- = -------------------------
Input Minimum efforts

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Analysis of Productivity
□ Productivity and lifecycle

Reduced manufacturing
Promoted national cost
competitiveness
Boosted
profits

Enhanced life
quality Productivity
Developed
Enhancement enterprises

Stable family life

Accelerated
employment
Increased labor
income

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 Analysis of Productivity

□ Productivity efficiency
Pattern Method Description Remarks
1 Out put → Less input than before to produce in the same amount and value Cost down
-----------
In put ↓
2 Out put↑ More output with higher value than before with the same input Production
----------- increase
In put →
3 Out put↑ More input for higher value High value added
-----------
In put ↑
4 Out put↑ Ideal pattern in terms of IE Maximization of
----------- high value added
In put ↓
5 Out put↓ Less input and output for off-season Low value added
-----------
In put ↓

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Analysis of Productivity

□ Man-hour management system

- (1) Promote systematic productivity management; (2) standardize analysis method; (3) manage
man-hour efficiency variation; (4) calculate reasonable manpower; (5) set target Units Produced; (6)
compare/evaluate all the factors for productivity such as analysis of following-up causes; and (7)
promote productivity enhancement.
1) General terms
Term Definition
Man-hour (MH) The amount of work required to perform or performed by an average worker in one hour
Standard time The time required for uninterrupted labor to produce a product by an average-skilled
worker without any incentives under normal conditions
Production output The amount of passed products from the final inspection
Working time The time of work in a day except breaks (Regular time+Overtime work-break time) → e.g.
As for 8hr work in HQ, 460 mins(540 mins-80 mins) is the working time.
Working day The working days except holidays (bank holidays, national holidays, company holidays,
etc.)
Total employees The total employees of indirect employees and direct employees
Indirect employees Office workers, managers in charge of materials/equipment/tools/driving, and executives
equivalent to part leaders
×100

Direct employees Workers who take measurement of operation time in line/process, and workers who cannot
take measurement of operation time but participate in operation (direct workers,
coordinators, inspectors, repairpersons, task allotment leaders, and marshalling workers)

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Analysis of Productivity

2) Man-hour types and their definition

Term Definition
Register MH Available input man-hour to register employees
[Register MH = Register employees (register + temp.) × Working time(Normal working time + Overtime
work + Extra work time)]
Rest MH Man-hour of register employees which are not put into actual work (e.g. absence, holidays, business
trip, a half-day off, support task, etc.
[Rest MH = Relevant employees × Relevant time]
ADD MH Additional man-hour except register MH (excluding acquirement of support and register employees)
[ADD MH = Relevant employees × Relevant time]
Working MH The total of man-hour put into operation (including loss MH), which manages individual presence and
absence in association with GHR system (including temp. employees)
[Working MH = Register MH-Rest MH+ADD MH]
Loss MH Man-hour of working time which are not directly utilized for production
(14 issues: Out of materials, defective materials, out of outsourcing stocks, rework, equipment
disorder, quality issues, etc.)
[loss MH = loss employees× Relevant time]

Actual MH Working MH except loss MH, which is actually put into operation
[Actual MH = Working MH – loss MH]
Standard MH The total man-hours of standard time which is put into performance output
[Standard MH = ∑(S/T by model × Production output]

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Analysis of Productivity

3) Task type for man-hour productivity management of direct manufacturing labor

- Man-hour labor: Workers in charge of productivity index management
Type Description

MH labor Assemblers, coordinators, inspectors, packers, manual PCB inserters, repairpersons,

employees in charge of relief/preparation/unpacking/kitting/marshalling (material
transportation)/downloading/rework/line circulation inspection/model change, 1-man
cell workers, sector leaders, chief leaders, group leaders, operators, trainees

Non MH labor Part leaders, workers in charge of material management/quality control/product

shipment, production management, system & program management, label printer &
soldering machine management/maintenance/field improvement/business support

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Analysis of Productivity

□ Units Produced per capita [Set/worker (UPH)]

1) Definition: Units Produced per capita in a day (480 mins) based on representative model S/T
2) Application: Comprehensive productivity index to the whole performance results of the business
operation (GBM)
3) Calculation formula
480*Working MH Efficiency
=
(1-ST Reduction Rate)× Basic ST

4) Selection of Basic ST: Average S/T of the main models or in-house models of previous year product
groups

Product TV MON HV HA STB LCM

Average S/T 7.762 4.470 5.298 8.287 7.612 11,210

※ Reanalyze/reflect Basic ST every year and apply to MES system.

5) MH reduction rate: Reduction of labor with S/T reduction (Auto, Imp, Des)

Reduced SMH(Auto+Imp+Des)
= ×100
Total SMH(Ins+Auto+Imp+Des)

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Analysis of Productivity

● S/T Reduction Items

Item Automation (Auto)
Details - Adjustment, inspection,
operation automation
- Simple jigs, automation, etc.
Operation Improvement (Imp)
- Elimination of unnecessary
operations
- Improvement in part transport
loss
- Adjustment and reduction in
inspection time
Design Improvement (Des)
- Removal of parts
- Improvement in assembly design
- Improvement in workability due to
design change
- Simplification of adjustment and
inspection

Examples - Automatic box taping
- Automatic PE-bag packing
- Adjustment of operation
inspection and automatic
inspection
- Automatic scanning of e-pass
- Automatic fixation of screws
- Elimination of panel package
removal process (LCM in-line)
- Elimination of duplication
inspection of operation inspection
- Elimination/reduction of package
removal time due to improved part
containers
- Elimination of dressing tape
- Minimization of parts
- Automatic adjustment/inspection
of product S/W and reduction of
time
- Reduction of operation time due
to improved parts

6) BM selection
- Based on production performance of the previous year, gather annual performance data with the final
S/T reflected and select the BM by plant and product.
- For BM selection, make S/T reduction rate of the previous year zero before calculation.

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Analysis of Productivity

□ performance search of Units Produced per Capita

1. Connect the GMES – [Productivity] - [Productivity]- [Man-Hour Analysis Report] – Set conditions and then
click [Query] button

- ①Sets/Worker (UPH), ②Working MH eff., ③S/T Reduction Rate, ④Basic S/T

- Units Produced per Capita = (480×Working MH eff.)/((1-S/T Reduction Rate)×Basic S/T)
= (480×1.043)/((1-0.3)×7.762) = 64.7 = ①

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Analysis of Productivity

□ Productivity index management

1) Productivity enhancement = 480*Working MH eff.↑
= Sets/Worker (UPH) ↑
(1- S/T Reduction Rate ↑)×Basic ST

2) Working MH eff. : Production efficiency index of manufacturing process performance results

Standard MH Model S/T×Units Produced

×100 = ×100
Working MH Register MH-Rest MH+ADD MH

- Working MH eff.↑= Productivity↑= Standard MH↑ Model S/T×Units Produced↑

×100 = ×100
Working MH↓ Register MH↓-Rest MH+ADD MH↓
3) Distortion of productivity index (Working MH eff. cannot exceed 100%.)
- Critical factors for Working MH eff. 100%↑
① Distortion of Standard MH: Reflection of excessive model ST, non-reflection of S/T improvement items to
reduction rate, manual batch processing of production performance, reflection of additional process to
production performance
② Omission of Working MH: Omission of additional operation man-hour and man-hour labor (omission of
service/support/preparation labor man-hour and indirect labor work), production after reflection of education
time, production in loss time

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Analysis of Productivity

4) Analysis of Units Produced per Capita

- Monitor Units Produced per capita by line and term and then analyze the line with the least working
MH efficiency.

- Check method (Line A)

. Standard MH check: Check for NO S/T of each model and S/T gap with similar models.
. Working MH check: Check if Working MH employees are reflected in GMES.
. Conduct neck process improvement activities through time study analysis.

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Analysis of Productivity

5) Standard MH check
- Omission of Standard MH: If Standard MH is omitted, productivity index is decreased.
- Cause: Production without model S/T reflected

- Check method
. Connect to the GMES – [Productivity] – [Productivity] – [Detail Standard MH] – Set conditions and then click
the [Query] button
. Omission of Standard MH: Query with “No ST” selected – “There is No Data!” in Standard MH

. Check of Standard MH data: Query with “All” selected – VD S/T data

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Analysis of Productivity

6) Omission of in-company S/T

- S/T of each plant may be different depending on working environment and some operation may be omitted.
: Productivity index is decreased.
- Cause: Procurement, subcontractor, additional work → During in-company work, model S/T is not reflected in
production (GST System).
. As common work of each model is composed by the HQ basis, it may be different from the ones of plants.
. The gap in plant works from work analysis must be reflected in S/T with line character.
- e.g. Stand fixing: HQ (Purchased goods in a separate package) & plants (pack with a set box)

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Analysis of Productivity

7) MH employee check
- Connect the GMES – [Productivity] - [Employee Mgt.] – [Individual Emp Management] – [Workforce
Info by Date] – Set the date – Press the [Query] button.
- Check if MH employees are registered correctly to the system.

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Analysis of Manufacturing Capacity

□ Analysis of Manufacturing Capacity

1] Analysis method of Time Study
Time Study refers to analysis of each operation conducted by workers and check of element time
required for each basic operation in order to set reasonable daily work amount of a worker.

1-1] The aims of time study analysis

1. To figure out actual operation time of workers and equipment
Manufacturing goods is a neck process, of which the capacity is the smallest among all
processes. In order to detect this type of neck processes through time study, actual operation time is
quantified by taking measurement with a stopwatch and then used for analysis of waste caused by line
imbalance.
2. To utilize as a data for standard time setting
Actual operation time is taken measurement with a stopwatch. The measured operation time is
rated and calculated in normal time. Certain allowance time is included for standard time setting.
3. Analyze all types of losses included in manufacturing activities
The gap between neck process of manufacturing capacity and actual Units Produced is analyzed
to figure out waste.

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Analysis of Manufacturing Capacity

1-2] Types of index times

Type Definition Calculation Method

TAKT TIME[T/T] Unit work time Minutes of work÷
Average time required to produce a product in a unit Units produced
process or line output process
CYCLE TIME[C/T] Process work time Actual measurement
Time required to produce a product from the beginning from time study
to the final process
NECK TIME[N/T] The longest time of the cycle time of all processes Actual measurement
from time study
STANDARD Standard time required for a worker to produce a RWF
TIME[S/T] product in standard operation method Normal time×
[1+Allowance rate]
NORMAL TIME Minimum time required for certain amount of work in Actual measurement
standard operation method from time study

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Analysis of Manufacturing Capacity

1-3] Analysis diagram

For
Improvement
Performance
Non-operation Line stop T/T

loss Capacity T/T

Operation capacity Pause

Waste
loss Stand-by
Movement Improvement
range
Wor N/T
Time
king Imbalance loss LOB
Oper
Time Ave. C/T
ation Inefficient
[460 Capa Performance loss Work dispersion
mins] Rate city Normal
time
Oper
ation
Work
Rate Normal Work Pure

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Analysis of Manufacturing Capacity

Type Definition Calculation Method

Performance takt time The total cycle time required to produce a product during Minutes of work ÷ Units
working time produced
Capacity takt time The total cycle time required to produce a product during Actual operation time ÷
actual operation time Units produced
Operat Non- The rate of non-operation time during wokring time [(Performance T/T-
ion operation [Line stop: Loss from equipment disorder, running out of Capacity T/T)÷
loss loss materials, quality issues, etc.] Performance T/T]×100[%]
Capacity The rate of non-operation during actual operation time [(Capacity T/T-N/T)÷
operation [Pause, stand-by, etc.] Performance T/T]×100[%]
loss
Subtotal Non-operation loss+ capacity operation loss [(N/T-N/T)÷
Performance T/T]×100[%]
Imbalance loss Waste time rate of processes due to work imbalance [(N/T-C/T)÷
[Stand-by, stagnation, etc.] Performance T/T]×100[%]
Performance loss Waste time rate due to experiences/skills of workers and [(C/T-Normal Time)÷
working environment [worker dispersion] Performance T/T]×100[%]
Total loss The gross of losses [waste time rate] Operation loss +
Imbalance loss +
Performance loss

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Analysis of Manufacturing Capacity

2] Order of Time Study Implementation

• Accurately figure out the aim of time study.

• Select manufacturing processes, lines, and models to achieve the aim.

• Prepare for time study in advance.

• Take a measurement (Record with a VTR).

• Analysis of results
- Analyze specific operations by unit work through DIET program.
- Fill out imbalance chart of line operation.
- Analyze GMES performance and written data.

• Select processes and items which need improving.

• Establish improvement plans in cooperation with related departments.

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Analysis of Manufacturing Capacity

① Comprehension of the aim

- Specify items for measurement such as process improvement, capacity analysis, S/T analysis, etc.

② Selection of manufacturing processes, lines, and models

- Check production plans and select manufacturing processes, lines, models, and scope for measurement.
(Select models which have abundant production quantity to facilitate easy measurement.)
- Figure out production quantity and production start/finish time on the measurement day.
- Obtain information of process lay-out, automation status, and employees in advance.

③ Advanced preparation for time study

- Acquire approval from field manager.
- Set up measurement plans (process segmentation, comprehension of operations, operation segmentation,
separation of regular/irregular work).

④ Measurement [VTR handling method]

- Record operation with the entire flow.
- Record with time observation, operation status, exceptional work, simple operation, incidental work, etc.
- Do not record if any line is stuck.

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Analysis of Manufacturing Capacity

- Repeat recording of each operation 5 times.

- Specify the title and reasons of irregular work every time it happens (Additionally record
walking, material replacement, transport, information transmission, tool replacement, etc.)

⑤ Analysis of results
- Analyze detailed operation of each unit via DIET program.
- Fill out line operation imbalance chart and calculate neck process and LOB.
- Analyze written data referring to GMES performance and S/T.

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Analysis of Manufacturing Capacity

2] Relations of cycle time and consumption speed

END START
Regular work

consumptionspeed
• Irregular work
Cycle time
= The gross of regular work ⑧ Stand-by

= ①+②+③+⑤+⑦ ① Take the door

out of its box
⑦ Input
the door

② Inspect
appearance
of the door
• Consumption speed ⑥ Set onto
a cart
= C/T + Irregular work + Simple
operation
③ Attach a label
= ①+②+③+④+⑤+⑥+⑦ to the door
⑤ Remove door
protection vinyl
= Capacity T/T
④ Replace its
box
Analysis of Manufacturing Capacity

2-1] Regular work

Work which occurs regularly and which is specified in standard time. However, operation
errors/ mistakes caused by operation conditions/environment/methods are included in regular
work.

• If a spring is inserted over 2~3 times, as the spring inlet is too narrow to be inserted at
once,
• If a hole of an object is not consistent with its screw hole,

2-2] Irregular work

Work which occurs irregularly or intermittently and which is not specified in standard time
• If a defective part is taken out of its line,
• If an empty box is replaced with a new box full of materials,
• If a material cart (trolley) is revolved or replaced,
• If a strap of materials is untied,
• If a material is dropped by an operators’ mistake,

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Analysis of Manufacturing Capacity

3] Determination of element work

● For separation of element work, specify start/finish points of each operation.

[Start point]
The start point of element work is when an operator starts
looking at an ass’y and moving to the ass’y to grab.

[End point]
After “ass’y assembly”, an operator presses the stopper
button in order to hand the ass’y over to the next
process. Then, the end point of element work is when
the worker’s hand is off the button.

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Analysis of Manufacturing Capacity

● If two workers are involved in one process,

[Start point]
As for a group with two workers, the start point of element
work is when either of them starts work first.

[End point]
As for a group with two workers, the end point of element
work is when either of them finishes the final operation.

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