Industrial Engineering and

Management
DEME-14716
 Introduction
• Industrial Engineering is concerned with the
design, improvement and installation of
integrated system of men, materials and
equipment. It draws upon specialised
knowledge and skills in the mathematical,
physical 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.
 Cont….
• The prime objective of industrial engineering
is to increase the productivity by eliminating
waste and non-value adding (unproductive)
operations and improving the effective
utilisation of resources.
 ACTIVITIES OF INDUSTRIAL ENGINEERING

• The primary activities are

1. Selection of processes and assembling methods.
 
2 Selection and design of tools and equipment.
 
3. Design of facilities including plant location, layout
of buildings, machines and equipment, material
handling system, raw materials and finished goods
storage facilities
 Cont….
4. Design and improvement of planning and control
systems for production, inventory, quality and plant
maintenance and distribution systems.
5. Developing a cost control system such as budgetary
control, cost analysis and standard costing.
6. Development of time standards, costing and
performance standards.
7. Development and installation of job evaluation
systems.
8. Installation of wage incentive schemes.
 Cont….
9. Design and installation of value engineering
and analysis system.
10. Operation research including mathematical
and statistical analysis.
11. Performance evaluation.
12. Organisation and Methods (O&M).
13. Project feasibility studies.
14. Supplier selection and evaluation.
OBJECTIVES OF INDUSTRIAL ENGINEERING
• The basic objectives of industrial engineering departments are:
1. To establish methods for improving the operations and
controlling the production costs.
2. To develop programmes for reducing those costs.
• Industrial engineering department exists primarily to provide
specialised services to production departments. The services
offered depend on the type of organisation Normally the
services include such functions as method study, establishing
time standards development of wage - incentive schemes, job
evaluation and merit rating. In some cases, industrial
engineering department is assigned to head projects.
 FUNCTIONS OF AN INDUSTRIAL ENGINEER

1. Developing the simplest work methods and

establishing one best way of doing the work.
(Standard Method)
2. Establishing the performance standards as per the
standard methods.( Standard Time)
3. To develop a sound wage and incentive schemes.
4. To add in the development and designing of a sound
inventory control, determination of economic lot size
and reducing work-in-process for each stage of
production.
 Cont….
5. To assist and aid in preparing a detailed job description,
and job specification for each job and to evaluate them.
6. Development of cost reduction and cost control
programmes, and to establish standard costing system.
7. Sound selection of site and developing a systematic
layout for the smooth flow of work without any
interruptions.
8. Development of standard training programmes for
various levels of organisation for effective
implementation of various improvement programmes.
TECHNIQUES OF INDUSTRIAL ENGINEERING

• The tools and techniques of industrial engineering aim at

improving the productivity of the organisation by optimum
utilisation of organisation's resources, i.e. men, materials
and machines. The various tools and techniques of
industrial engineering are-
1. Method Study - To establish a standard method of
performing a job or an operation after thorough analysis of
the jobs and to establish the layout of production facilities
to have an uniform flow of material without back tracking.
2. Time Study (Work Measurement)-This is a technique used
to establish a standard time for a job or for an operation.
 TECHNIQUES Cont…..
4. Financial and Non-financial Incentives- These helps to evolve
at a rational compensation for the efforts of the workers.
5. Value Analysis - It ensures that no unnecessary costs are
built into the product and it tries to provide the required
functions at the minimum cost. Hence, helps to enhance the
worth of the product.
6. Production Planning and Control - This includes the planning
for the resources (like men, materials and machines), proper
scheduling and controlling production activities to ensure
the right quantity, quality of product at predetermined time
and pre-established cost.
 TECHNIQUES Cont…..
7. Inventory Control - To find the economic lot size and the reorder levels for
the items so that the item should be made available to the production at the
right time and quantity to avoid stock out situation and with minimum
capital lockup.
8. Job Evaluation - This is a technique which is used to determine the relative
worth of jobs of the organisation to aid in matching jobs and personnel and
to arrive at sound wage policy.
9. Material Handling Analysis - To scientifically analyse the movement of
materials through various departments to eliminate unnecessary movement
to enhance the efficiency of material handling.
10. Ergonomics (Human Engineering) - It is concerned with study of
relationship between man and his working conditions to minimise mental
and physical stress. It is concerned with man-machine system , their
interdependencies in order to design modify and improve them.
 TECHNIQUES Cont…..
11. System Analysis - is the study of various sub-systems and
elements that make to achieve greater efficiency and effectiveness.
12. Operation Research Techniques - These techniques aid to arrive
at the optimal solutions to the problems based on the set objective
and constraints imposed on the problems. The techniques that are
more often used are: Linear programming problems, Simulation
Models, Queuing models, Network analysis (CPM and PERT),
Assignment sequencing and transportation models, Dynamic and
integer programming, Games theory.
13. The Other Techniques Include - Statistical process control
techniques, Group technology Organisation and Methods (O & M).