Fundamentals of

Industrial Engineering

Lecture Notes
Industrial ?
an adjective of the word INDUSTRY
which mean diligence, integrity and
cleverness
Diligence – thoroughness, attentiveness, meticulous,
persistence

Integrity – honesty, truthfulness, honor, veracity,

upright, moral

Cleverness – cunning, adept, smart, intelligent,

talented, quick, expert, shrewd
Engineering?
A branch of applied science which
attempts to utilize the human and
natural resources with respect to the
scarcity of such resources
 What is
Industrial Engineering?
is concerned with the design, improvement
and installation of integrated systems of man,
machine and materials (money, methods and
energy), with specialized knowledge and skills
in the mathematical, physical, and social
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.
The IE Curriculum – CMO #15 of 2008

In accordance with the pertinent provisions of

Republic Act (RA) No. 7722, otherwise known as the
“Higher Education Act of 1994,” upon the recommendation
of the Technical Panel for Engineering, Technology and
Architecture and by virtue of Resolution No. 824- 2007 of
the Commission on Higher Education dated November 26,
2007, for the purpose of rationalizing the undergraduate
program in Industrial Engineering, with the end view of
keeping pace with the demands of global competitiveness,
the following policies and standards (PS) are hereby
adopted and promulgated by the Commission, thus: create
a revised policies and standards for the degree of bachelor
of science in industrial engineering (BSIE) .
• The professional organization for Industrial
Engineers in the Philippines.

A certifying body for Industrial Engineering

graduates.
Institute of Industrial and Systems Engineers:
Formerly the Institute of Industrial Engineers, is a
professional society dedicated solely to the support of the
industrial engineering profession and individuals involved
with improving quality and productivity.

American Society for Precision Engineers (ASPE):

Covers areas like MEMS, optics, photonics,
nanotechnology, microelectronics, and many areas in
engineering and the sciences including industrial
engineering.

American Society for Quality: Global community

focused on quality and making the world better
Association for Facilities Engineering (AFE): Focus on
the optimal operations of fortune 500 manufactures,
government agencies, universities, small firms, and medical
centers worldwide, “principal UK professional society for
operations management in manufacturing, service
industries and the public sector.”

Association for Manufacturing Technology (AMT)

Provides access to markets and industry intelligence to
help businesses succeed

Society of Manufacturing Engineers

Organization focused on all aspects of manufacturing
Institute of Industrial Engineers (IIE): Largest
professional society for industrial engineers

Institute of Operations Management: Global

community focused on quality and making the world
better

Association for Facilities Engineering (AFE):

“principal UK professional society for operations
management in manufacturing, service industries and the
public sector.”
FUNCTIONAL AREAS OF AN IE
Following tools and techniques are used to improve
productivity of the organization by optimum utilization of
resources.
1- Operations Analysis (Method Study)
2- Time Study (Work Measurement).
3- Motion Economy (Methods Study/Work Measurement)
4- Financial and Non Financial Incentives (Risk
Investment/Feasibility Study)
5- Value Analysis (Production Systems)
6- Production, Planning and Inventory Control.
7- Job Evaluation & Wage and Salaries Administration
8- Material Handling Analysis
9-Ergonomics (Human Factors Engineering).
10- Systems Analysis
11- Operations Research Techniques
 IE TRENDS
Local/National Focus Global Focus

Batch Shipments Just-in Time

Supply Chain
Low Bid Purchasing
Partnering

Lengthy Product
Rapid Product Dev’t.,
Development
alliances

Standard Products Mass Customization

Empowered
Job Specialization
employees, teams
Forerunners of IE
Frederick Winslow Taylor (1858-1915)

A Mechanical Engineer by profession

Introduced “Functional Foremanship”

which conceives that a foreman’s job is
composed of 8 major functions
Contributed the following:
Scientifically determined work standard
Differential piece rate system
Mental revolution – described as the precedent to
the establishment of Scientific Management
Author of “Principles of Scientific Management”
A definite task
A definite time
A definite method

Father of Scientific Management and Father of IE

Henry L. Gantt
Extensive writing on the following:
Industrial Leadership
Work, wages and profits and,
Organizing for work

Contributed the following

Bonus plan development to amplify work
motivation
Advocate training of workers by the
management
Recognition of social responsibility of business
and industry
Measurement of management by results
Harrington Emerson
Developed an incentive plan which
guarantees the base pay rate and pays a
graduated bonus; the EMERSON
EFFICIENCY BONUS PLAN

Authored the “12 Principles of Efficiency, as

essentials of a successful organization as the
following:
① Clearly defined ideas ② Common sense
③ Competent counsel ④ Discipline
⑤ Fair Deal ⑥ Dispatching
⑦ Standards and ⑧ Standard
schedules conditions
⑨ Standard operations ⑩ Efficiency rewards
⑪ Reliable, immediate & ⑫ written standards,
adequate records written record
Frank and Lillian Gilbreth
Developed micromotion study; a
breakdown of work into fundamental
elements called THERBLIGS

Henri Fayol
French Mining Engineer
Author of “administration Industrielle et
Generale”
Divides the business into 6 major groups
① Technical ② Commercial
③ Financial ④ Security
⑤ Accounting and, ⑥ Administration
Motion Study – dividing the work into
most basic elements possible and
studying these elements separately
and in relation to one another, both
quantitatively and qualitatively. The
elements are called “THERBLIGS”.

Developed by Frank and Lillian

Gilbreth, which has been described as
the originator of Micromotion study.
 Grouping of Elements

I II III

Reach Change direction Hold

Move Pre-position Avoidable delay
Grasp Search Unavoidable
Position Select delay
Disengage Plan Rest (to overcome
Release Balancing delay fatigue)
Examine
Do
Where:

I they all accomplish work

II they retard accomplishment of

work

IIIno work is accomplished

Work Sampling – based on the fact that the small number of
chance observation tend to follow the same distribution
pattern that actually occurs in the situation being studied
Advantages:
 
1. Less expensive than continuous observation
techniques
2. Can be used by observers with little special
training or skill
3. The number of observation can be adjusted to
meet desired levels of accuracy
4. Effective means of collecting facts that would
not normally be collected by other means
5. Produces less anxiety and agitation in the
person being observed and,
6. Results in little interference with the operator’s
normal routine
Time Study – a procedure employed to
measure the length of time required to perform
a given task in accordance with a specified
method by an operator of average skill, working
with average effort, under normal conditions.

- should be done only by trained time study

engineer but the procedure should be readily
understood by all levels of the management.
Work Simplification – fusing two or
more elements or operations into a
single element or operation thereby
reduction of production time is
obtained.
 Principles of Work Simplification

Move hands simultaneously – start and stop both

hands at the same time

Balance motion pattern – use symmetrical motions (in

opposite direction)

Rotary switch motion – avoid fatiguing upper arm

motion

Relax work tension - vary motion patterns (relax

muscle tension)

Convenient work area – keep all work within arc of

forearm motion
Principles of Work Simplification…continued

Curved work area – avoid sharp changes in direction

Slide (don’t carry) – save half time and effort

Fixed work station – build habit patterns; save eye

travel

Batch to save (make ready) – combine several lots, or

several days in one slot

Rhythm and automaticy – reduce fatigue and increase

productivity
Principles of Work Simplification…continued

Foot pedal action – relieve hands on simple repetitive

jobs like stapling

Use holding devices – free both hands for useful

motion

Orderly disposal – reduce into a drop delivery chute to

reduce travel

Use sampling technique – calculate the risk; improve

quality control

Shorten transport distance – bring work close to point

of use
Principles of Work Simplification…continued

Use touch system – save eye travel, build good work

habits

Improve workplace heights – try alternating sitting-

standing arrangements; check seating posture

Improve working conditions – check illumination,

temperature, dust, noise, orderliness and working
environment
Pre-position tools and supplies
Methods Engineering – an organized systematic
approach to increasing the efficiency of work
1. Process Chart is a graphical representation of events
which occur during a series of actions or operations so that
they can be easily visualized and analysed.

Activity Action Symbol

Operation to change
Transportation to move
Inspection to verify
Delay to wait
Storage to protect
Combined Activity
A. Operations Process Chart – designed to give a quick
understanding of the work which must be done to create a
product

B. Flow Process Chart – similar to Operations Process

Chart but includes materials handling and storage activities
- aids in combining or eliminating operations or
inspection

C. Multiple Activity Chart – graphically represents the

coordinated working and idle time of two or more men; two
or more machines or; any combination of men and
machine.
2. Operations Analysis – also called “Common Sense
Automatically Applied”
- a procedure used to study the factors that affect
the method of performing an operation to achieve
maximum overall economy
- the techniques consist of applying the questioning
attitude separately to each part of the operation
 10 Points of Primary Analysis

1. Purpose of Operation 6. Working Conditions 2.

Process Analysis 7. Design of Part
3. Materials 8. Materials Handling
4. Inspection Requirements 9. Method
5. Workplace, lay-out, set up 10. Common
of tools and equipment possibilities for
job improvement
Total Quality Management – predecessor of 6σ (Six
Sigma)

Objectives:
1. Zero defects 3. Cost reduction
2. Zero accidents 4. Safety improvements

Quality TQM 6 Sigma

5S Control
 Comparative Program Words used in Quality
Control
5-S Japanese 5-S English 5-C counterpart

Seiri Sort Clear-out

Systematize or Set in
Seiton Configure
Order
Seiso Shine Clean and check

Seiketsu Standardize Conformity

Shitsuke Sustain Custom

Seiri (Sort) – translated as organization; organizing of
the workplace by removing all unnecessary items not
needed in the operation. It is a variety of fora on the
ways of eliminating the doubts by moving it out. It is
going through the tools to determine what needs to be
recognized and removed with the country’s top
engineers and experts
Seiton (Systematize or Set in Order) – translated as
tidiness; arranging only the needed items so that they
are easy to use; labelling them so they are easy to be
found and/or put away. It is an arbitration of the most
logical arrangements in setting everything in its
proper places attended by esteemed companies as a
living example.
Seiso (Shine) – translated as purity; relates to
cleanliness which includes sweeping of floors,
cleaning the equipment and shovelling out of unused
materials or debris on a daily basis. It is the
intellection of catching the problems and prevents
breakdown; an interactive workshop on social
awareness and taking the opportunity of the Ten
most IE in the United Nations 2015 Agenda – 10
sustainable development goals (SDG) of working as
an IE in laying-out proposals, researcher and
projects.
Seiketsu (Standardize) – translated s cleanliness;
intended to generate a maintenance system for the first
three elements. It is an indulging discussion with the
sought IE Professionals in different fields to deliver
directions in organizing your paths to take and gearing
up of becoming and Industrial Engineer you are bound
to be.

Shitsuke (Sustain) – translated as discipline; an on-

going process of developing and implementing the good
housekeeping and improvement of workplace and work
processes; Is keeping everyone involved and reviewed
in the top SDG Proposals that will stir-up the nation in
making the country sustainable for the long run.
 Benefits of 5-S Program

Reduced setup time

Reduced manufacturing time
Reduced inventory
Reduced machine downtime
Reduced maintenance time
Increased order fill rates
Increased on-time deliveries
Improved employee morale
Improved quality
 Original 7 QC Tools New 7 QC Tools

Graphs Affinity Diagram

Ishikawa Diagram (Cause

Process Decision Program
and Effect Diagram or
Chart (PDPC)
Fishbone Diagram)
Check / Tally Sheet Data Matrix Analysis
Scatter Diagram Tree Analysis

Activity Network Diagram

Control Charts
(AND)
Histogram Interrelations Diagram
Pareto Analysis Prioritization Matrices
Affinity Diagram – a creative tool for generation of
large number of issues/ideas for problem
understanding and finding possible solution logically.

Interrelationship Diagram – clarifies the

interrelationships of many factors of a complex
situation.

Tree Diagram – reduces any broad objective into

increasing levels of details.
Matrix Diagram – analyze and rate the relationship of
two or more variables

Prioritization Matrices – prioritizing issues, based on

weighted criteria using a combination of tree and
matrix diagram

PDPC – avoids surprises and identifies possible

countermeasures

AND – schedule project efficiently