Sunday, December 16, 2012

Information Technology Systems Cost Reduction - Theory and Research Papers


Reducing the Cost of IT operations Is Automation always the Answer?
http://static.usenix.org/event/hotos05/final_papers_backup/brown/brown_html/hotos05.html




Reducing operational costs through MIPS management
 L.M. Kwiatkowski & C. Verhoef
Department of Computer Science, Vrije Universiteit Amsterdam
De Boelelaan 1081a, 1081 HV Amsterdam, The Netherlands
http://www.cs.vu.nl/~x/mips/mips.pdf

Saturday, December 15, 2012

Strategic Perspectives in Industrial Engineering - Course Page

Industrial Engineering is Human Effort Engineering and System Efficiency Engineering.

Industrial Engineering is a strategic function for enterprises.


Peter Drucker said human resource management on the shop floor or office is based on the theories of industrial engineering only. When human resources and their effort and performance are strategic, industrial engineering is strategic.

Efficiency or elimination of waste reduces costs and increases profit to optimal level subject to the revenue generation constraints. Revenue generation depends on the market potential and marketing efforts. Industrial engineering helps the organizations to realize the maximum profit from the revenue using both technological and managerial options to plan and control costs. Management methods like total productivity management, total industrial engineering and total cost management implemented through industrial engineering departments contribute to long term profit planning and annual profit planning. As these exercises are part of strategic plans, industrial engineering function is a partner in strategic decision making.

A board position for Director of Efficiency is to be there and it is good to note that some organizations have that position. For instance, Jim Easton is Director of Improvement and Efficiency on NHS Commissioning Board.
http://www.hsj.co.uk/news/policy/commissioning-board-plans-new-improvement-body-to-drive-efficiency/5047152.article July 2012   )


Strategic Importance of Productivity Improvement


Competition ensures that higher productivity firms increase their market share at the expense of the less productive.  These low productivity firms may then exit the market, and are replaced by 6 higher productivity firms.  There is strong empirical evidence of  these processes and their effects on productivity.
Report of Office of Fair Trading, UK Report 2007 on Productivity  and Competition.
http://www.oft.gov.uk/shared_oft/economic_research/oft887.pdf


Students are an important part in creating the future of industrial engineering be it by generating new ideas, researching and developing the recently published ideas, commiting themselves to recent successfully implemented techniques, and collecting case studies of successful implementations of currently popular techniques. Therefore, this course encourages students to get engaged with strategic importance and  scope of industrial engineering and develop each theme.

Innovation is a journey that starts with an idea and ends with a delighted customer.
Generate ideas first and develop them into implementable technology. Understand the customer desires and design a commercial product. Test with the customer and improve the product till the customer is delighted with product offering.

Contents of the course


1. Role of  Industrial Engineering in Strategy of the Organization - - Introduction

    Porter's two main strategic alternatives - Cost leadership and Uniqueness or unique performance 
    Industrial Engineering: Current Important Initiatives

    See the sample chapter of a book on IE and Manufacturing Engg. by Berman Cylingir Kayis
    http://www.eolss.net/Sample-Chapters/C05/E6-35-04-08.pdf
    Nadler's chapter in Salvendy's Handbook, 1992 is quoted there.

    Strategic Themes - How are they used and why?             http://www.balancedscorecard.org/portals/0/pdf/Strategic_Themes_How_Are_They_USed_And_Why.pdf
    Gail S Perry, Vice President, Strategic Solutions, Balanced Scorecard Institute, Industrial Engineering and MBA

    Top 10 Opportunities in 2013 in service industries or business - E&Y Survey
    http://www.ey.com/GL/en/Services/Advisory/The-top-10-risks-and-opportunities-for-global-organizations---Top-10-opportunities
    2. Investing in process, tools and training to achieve greater productivity
    http://www.ey.com/GL/en/Services/Advisory/The-top-10-risks-and-opportunities-for-global-organizations---Top-10-opportunities---2--Investing-in-process--tools-and-training-to-achieve-greater-productivity
    The survey results suggest that the principal barriers to improving productivity are:
    A lack of investment in skilled personnel
    An insufficient budget to make the necessary process investments
    An organizational focus on competitors, rather than on operational effectiveness
 
    Mckinsey 2010 article - Productivity Imperative for Developed Nations
    http://www.mckinseyquarterly.com/Operations/Product_Development/The_productivity_imperative_2630

    Systemic Practice of Industrial Engineering
    http://www.saiie.co.za/index.php?option=com_content&view=article&id=164:systemic-practice-of-industrial-engineering&catid=65:other&Itemid=98

    Cost leader strategy - Porter's Book - Competitive Strategy
    Cost Leader Strategy - P J Barney
    Cost Leader Strategy - Strickland


2. Total Cost Management and Industrial Engineering

    Cost Leadership Strategy - Porter - Role of Total Cost Management
 
     Article Collection  on Total Cost Management
     http://nraombakc.blogspot.com/2012/07/total-cost-management-chapter-contents.html
   
     Interesting paper published in 2002 Cost Measurement and Analysis: A Necessary Part of Industrial Engineering Education and Training. Read the paper online from:
     http://wenku.baidu.com/view/e7465721192e45361066f560.html
     Summary at: http://meenakshi-ie.blogspot.in/2012/08/cost-measurement-and-analysis.html
   
     Cost Measurment: Tools and Methodology for Cost Effectiveness Analysis -1972
     Rand Organization Paper
      http://www.rand.org/pubs/papers/2008/P4762.pdf
   
      Cost forecasts for various technology power plants up to 2050 - NREL Report
      http://bv.com/docs/reports-studies/nrel-cost-report.pdf

      Total Cost Management Movement in India
      http://mycii.in/KmResourceApplication/E000000893.1226.TCM%20Movement%20in%20India.pdf

      Modelling cost management maturity  - CII model
      http://cmaindia.informe.com/forum/cost-and-management-accounts-finance-and-cost-and-management-audit-f13/modelling-cost-management-maturity-t1884.html

      Total Cost Industrial Engineering
      http://nraoiekc.blogspot.com/2012/09/total-cost-industrial-engineering.html

3. Total Productivity Management

     Total Productivity Management and Total Cost Management by including realization of Learning Effect Results
   
      Chapter in Maynard's Handbook 5th Edition
   
       Total Productivity Management - Top down production management in Japan
      1997 paper by Nakamura
       http://deepblue.lib.umich.edu/bitstream/2027.42/34620/1/815_ftp.pdf
     
       Impact of Management Practices on Total Factor Productivity - Eritrean Fishing Companies
       http://upetd.up.ac.za/thesis/available/etd-08272004-083311/unrestricted/01dissertation.pdf
       http://upetd.up.ac.za/thesis/available/etd-08272004-083311/unrestricted/02back.pdf

4. Total Industrial Engineering

     The concept being advocated by Yamashina as part of his WCM strategy.
     Total Industrial Engineering contributing to Total Productivity Management and Total Cost Management
   
     World Class Manufacturing by Yamashina
     http://nraoiekc.blogspot.com/2012/08/world-class-manufacturing-explanation.html
   
     Industrial engineers can take some steps to involve all employees in improvement activities. See citizen's science initiatives. http://www.scientificamerican.com/citizen-science/

     Mura, Muda, Muri
     MUDA( Waste) MURI( Strain) MURA( Discrepancy).
     Muda: Waste
     Muri: “Overburden” or “Unreasonableness” – in short, asking someone to do something which he should not have to do, or which cannot be done.
     Mura: “Inconsistency” or “Unevenness” – wildly varying the workload, introducing instability into the process (usually from external factors).
     http://www.chrmglobal.com/Articles/485/1/The-Lean-Thinking--Mura-Muri-Muda.html
     http://www.velaction.com/muda-muri-mura/
     http://www.toyota-global.com/company/toyota_traditions/quality/jul_aug_2004.html
     http://leanmanufacturingtools.org/71/muda-mura-and-muri-lean-manufacturing-wastes/
     http://www.cii-iq.in/CII/events/Lean2012/ppts/Toyota%20Kirloskar_Parashuram.pdf
     http://theleanthinker.com/common-searches/
   
     A Study of the Tovota Production System From an Industrial Engineering Viewpoint
     by Shigeo Shingo - Summary
     http://www.kellogg.northwestern.edu/course/opns430/modules/lean_operations/shingo.pdf

5. Current Concerns of Boards in the area of Efficiency

    Boards Look for Efficiency With IT - November 2011
    http://www.directorship.com/boards-look-for-efficiency-with-it/
    IT Cost Reduction Initiatives:
    Cost Reduction in Imaging and Output infrastructure
    http://ievarunmitra.blogspot.in/2012/08/cutting-costs-and-maximizing-return-on.html
 
    IT Cost Reduction - Accenture insights  - 2012
    http://www.accenture.com/us-en/Pages/insight-it-cost-reductions-new-technologies.aspx
 
    Article for each step recommended in Accenture Report
    Information Technology Systems Cost Reduction
 
    Reducing the waste in the testing cycle
    http://mgmtvideo.blogspot.com/2012/09/reducing-waste-in-testing-cycle-youtube.html
    Federal Marketplace for Data Center Capacity - Webinar Video
    http://mgmtvideo.blogspot.com/2012/09/federal-marketplace-for-data-center.html

    Lean IT: Enabling and Sustaining Your Lean Transformation
    Google book
    http://books.google.co.in/books?id=3Si41XmQlXAC

    Lean Software Development and IT Enabled Services - Collection of Books and Articles - NRao
    http://nraoiekc.blogspot.com/2012/04/lean-software-development-and-it.html

6. Lean Supply Chain

7. Sustainability Movement and Industrial Engineering

   Manufacturing and the Science of Sustainability
   Keynote Address byTimothy G. Gutowski
   Massachusetts Institute of Technology, Cambrige, MA 02139
   2011
   http://web.mit.edu/ebm/www/Publications/Gutowski_CIRP_Keynote_2011.pdf  - Important Paper
 
   Industrial Engineering and Sustainability - Bibliography
   http://nraoiekc.blogspot.in/2012/08/industrial-engineering-and.html
 
   Importance of Industrial Ecology subject in Engineering Education
   http://ankita-ie.blogspot.in/2012/08/international-journal-of-sustainability.html (IE assignment)
 
   Sustainability and Resource Productivity - McKinsey Page
   http://www.mckinsey.com/client_service/sustainability




   The Emerging Roles of Industrial Engineers in Preventing Pollution and Creating a Sustainable Environment
    http://sumeet-industrial-engineering-2012.blogspot.in/2012/08/ie-concepts-research-paper-summary.html


   A SYNOPSIS OF INDUSTRIAL ENGINEERING METHODS UTILIZED IN DESIGNING FOR THE ENVIRONMENT
   http://vikassakre5.blogspot.in/2012/08/ie-research-paper.html

   A Guide to Integrating Value Engineering, Life-Cycle
   Costing, and Sustainable Development in FEDERAL FACILITIES, USA - 2001
    http://www.wbdg.org/ccb/SUSFFC/fedsus.pdf
 

8. Scientific Management Theory

1. DISCIPLINARY LINKS BETWEEN SCIENTIFIC MANAGEMENT AND STRATEGY DEVELOPMENT - MIT Working paper - 2009

Review the preface and first chapter of the book

2. Manufacturing Rationality: The Engineering Foundations of the Managerial Revolution
By Yehouda Shenhav
Oxford University Press, 1999
Preview available in http://books.google.co.in/books?id=eg7ljkZueSEC

3. AN INSTITUTIONAL ECONOMIC RECONSTRUCTION OF SCIENTIFIC MANAGEMENT: ON THE LOST THEORETICAL LOGIC OF TAYLORISM.  Wagner-Tsukamoto, Sigmund. Academy of Management Review. Jan2007, Vol. 32 Issue 1, p105-117. (Note: Down load from Ebsco Host database of the institute)


9. Strategic Industrial Engineering

    Paper on Strategic Industrial Engineering
    http://repository.up.ac.za/bitstream/handle/2263/6752/Development_Leonard%282006%29.pdf?sequence=1

    Universiteit Stellenbosch University - South Africa
    http://www.ie.sun.ac.za/component/content/118?task=view
    http://www.ie.sun.ac.za/component/content/96?task=view

   Strategic Productivity by Marketable Technology
   http://www.iiste.org/Journals/index.php/IEL/article/view/1073/993

   Thesis on Strategic Indutrial Engineering Philosophy P.S. Leonard 2004
    http://upetd.up.ac.za/thesis/available/etd-04252005-161604/

10. Review of Current Research in Industrial Engineering Related to Strategic Themes

      Themes
      Total Cost Management and Cost Management
      Total Productivity Management and Productivity Management
      Total Industrial Engineering and Enterprise Level Industrial Engineering
      Cost Leadership Strategy - Opportunities and Required Processes
      IT Cost Reduction
      Lean Supply Chain
      Sustainability and Environmental Management - Role of Industrial Engineering Departments and Discipline
      Maintenance Efficiency Improvement and Total Productive Maintenance Movement
      Six Sigma
      Value Engineering

       We review

Value Chain Analysis 

in this topic

     1.   Value Chain Analysis IMA Note
        http://www.imanet.org/PDFs/Public/Research/SMA/Value%20Chain%20Analysis.pdf
   
    2.  http://www.rti.org/pubs/US_Automotive.pdf
       Interoperability cost analysis of US automotive sector

    3.    http://cde.athabascau.ca/online_book/pdf/TPOL_chp03.pdf
           Value chain analysis - A Strategic approach to online learning

       Alok Chakraborty - Value Chain Analysis - Note

   

Introduction to Industrial Engineering Course Page

Related Articles, Papers and Presentations

Strategic Perspective - Supply Chain Manufacturing Activities
http://www.ndia.org/Divisions/Divisions/Manufacturing/Documents/019A/3Strategic_Perspective_for_NDIA_4Nov2009.pdf

A Strategic Perspective on Value - 2009 - Rockwell Automation
Value of a supplier services
http://literature.rockwellautomation.com/idc/groups/literature/documents/wp/oem-wp006_-en-p.pdf



Latest Trends in IE Prof Scott Sinks answer in Linked Discussion for the topic
What are the latest trends in Industrial Engineering? I am looking for some answers by the experts in this field. Thanks


Based on my meetings with the Council on Industrial Engineering (a senior IE leader at Boeing, Kraft, Hershey, Disney, GM, Walmart, Deere, Campbell, Vought-Triumph, and others), I'd say the top 10 are

1--Business Requirements Definition Design for new Systems
2--Strategic Performance Improvement Planning Systems/Processes/Deployment/Execution
3--Integrated Lean and SixSigma
4--overall system architecture for Improvement at all levels, continuous, DMAIC, Design for LeanSigma, Business Process Improvement, Business Process Reengineering
5--key roles in Enterprise Transformation
6--Information Technology  -  Enablement Design and Rationalization/Improvement
7--Benefits Realization from ERP implementations
8--Change Leadership and Management assurance
9--Improved Implementation Effectiveness and Yield Loss reduction
10--Performance Measurement System Design, Development and Deployment; all levels

Friday, December 14, 2012

Information Systems Industrial Engineering - Online Book



This is the first pass attempt to assemble online and print articles related to the subject


Software Value Engineering


Industrial Engineering in Computer Engineering and Information Technology

Software Value Engineering


Information Productivity Improvement - Bibliography


TPS in Software Develpment - The Seven Wastes in Software Development

Lean Software Development and IT Enabled Services

Software Process Efficiency - Bibliography

Cloud Computing - Cost Reduction Technology - Adoption Case Studies and News

Value Engineering Computer Room Lightning
1984 Save Proceedings
http://www.value-eng.org/knowledge_bank/attachments/VE%20Computer%20Room%20Lighting.pdf



Understanding Software Process Redesign using Modeling, Analysis and Simulation
Presented at the ProSim'99 Workshop on Software Process Simulation and Modeling, Silver Springs, OR 27-29 June 1999
Revised version to appear in Software Process-Improvement and Practice.
Walt Scacchi
Information and Computer Science Dept.
University of California
Irvine, CA 92697-3425 USA
http://www.ics.uci.edu/~wscacchi/Papers/Software_Process_Redesign/Paper-Draft.html


A coordination theory approach to process description and redesign
Kevin Crowston and Charles Osborn
CCS WP #204 SWP # 4029
July 1998
http://ccs.mit.edu/papers/pdf/wp204.pdf


Information Systems - Industrial Engineering  - 4 year course
Binus University
http://curriculum.binus.ac.id/program/information-systems-industrial-engineering/1/




Friday, December 7, 2012

Two Kinds of Technology of Industrial Systems



I explain that role of Industrial engineering by stating that all systems are designed by functional systems specialists first and then they are evaluated and improved by industrial engineers. Industrial engineering is a specialized engineering activity. Safety engineering, reliability engineering etc. are some more specialized engineering branches that have a role in systems design.

In management systems also the original design is done by that functional management specialist and industrial engineers improve efficiency in the next iteration of design.

Quan-qing Li and Ming Li of Zhengzhou Institute of Aeronautical Industry Management expressed the same view in their paper "Thinking about the Application and Development Strategy of Industrial Engineering" presented in the IEEE 2011 conference on Industrial Engineering.

Every system has inputs, conversion process and output. The system design involves both specialized engineering technology and industrial engineering technology. The specialized engineering technology solves the problem of "is it possible?"  It makes the system come into existence and deliver the required output. It is industrial engineering technology that will make the system give good output from the given resources. It makes the system run with high efficiency and low cost. "Improving elements of operations" and "Seeking optimization" are the characteristic of Industrial engineering.


Many times entrepreneurs neglect industrial engineering because even without IE, the system is running and giving desired output. The short-sighted entrepreneurs do not see the waste that is being incurred in the system. Many times it is invisible to them until they lose the battle in the market place due to high cost of their product.

Wednesday, November 28, 2012

Payback Period - Estimation of Cash Flows and Determination of Payback Period





Payback Period

Payback period is an investment appraisal metric. This period will indicate the number of years it will take to get back the cash initially invested in a project. The period is calculated using the estimated cash flows, both outflows and inflows.

Cashflow Estimation - Some Principles

Cash flows of a project have to be estimated for a time horizon. The time horizon is the minimum of physical life of the plant, technological life of the plant, or the product market life.

In estimating the cash flows of a project, incremental principles (that considers all incidental effects), separation of investment and financing principle, post-tax principle and consistency principles are employed.

Incremental principle

In an existing company, the cash flows are to be estimated by evaluating the cash flows of the company with the project and without the project. The difference will be incremental cash flows related to the project.

Separation of investment and financing principle

In a standard capital expenditure analysis, interest payment to be made on borrowings is not brought into the picture. Borrowing is considered a financing decision and its impact is included in the cost of capital estimation. Hence cash flow estimates do not have any interest payment of component.

Post-tax principle

Tax impact on the cash flow is considered and after tax cash flows are estimated.

Consistency principle

The inflation expectation built into estimation of revenues and costs and cost of capital have to be consistent or same.

___________________________________________________________________________________________

Some Examples Issues That I came Across Recently

1. Acquisition of a software by a design department.
2. Replacement of boiler tubes.
3. Replacement of an electronic equipment as some cards used in the equipment are not available anymore for replacement (the equipment manufacturer is not supplying those cards anymore as the equipment is phased out for production).

The approval authority for the expenditures wants the concenred departments to calculate the payback period for the expenditure proposals.

Originally Knol 1952

Estimation of Cash Flows for Engineering Economic Analysis



An investment proposal or an expenditure proposal must have estimated benefits and costs for doing engineering economic analysis. For simple proposals, the engineer making the proposal may be able to make these estimates. For complex proposals, involvement of marketing, production, maintenance and other operating departments and accounting department may be necessary. The estimation of benefits and costs are to be made keeping in mind the following principles.


Cash flow Estimation - Basic Principles

Time horizon

Cash flows of a project have to be estimated for a time horizon. The time horizon is the minimum of physical life of the plant, technological life of the plant, or the product market life.

Cash flow principle

In economic analysis, it is actual cash flow that is used. So the time at which actual cash is received or paid is to be estimated along with the amount of cash flow.



In estimating the cash flows of a project, incremental principle (that considers all incidental effects), separation of investment and financing principle, post-tax principle and consistency principles are employed.

Incremental principle

In an existing company, the cash flows are to be estimated by evaluating the cash flows of the company with the project and without the project. The difference will be incremental cash flows related to the project.


Long-term funds principle

The cash flows reflect the benefits that accrue to long-term funds.

Interest exclusion principle - Separation of investment and financing principle

In a standard capital expenditure analysis, interest payment to be made on borrowings is not brought into the picture. Borrowing is considered a financing decision and its impact is included in the cost of capital estimation. Hence cash flow estimates do not have any interest payment  component (interest paid for long term funds).

Post-tax principle

Tax impact on the cash flow is considered and after tax cash flows are estimated.

Consistency principle

The inflation expectation built into estimation of revenues and costs and cost of capital have to be consistent or same.


Thus, in estimating the cash flows of a project, incremental principle (that considers all incidental effects), separation of investment and financing principle, post-tax principle and consistency principles are employed.

Saturday, November 24, 2012

Opportunity to increase manufacturing resource productivity - McKinsey Article



June 2012


Stephan Mohr,  an associate principal in McKinsey’s Munich office, Ken Somers,  a consultant in the Antwerp office, Steven Swartz,  a principal in the Chicago office, and Helga Vanthournout, s a consultant in the Geneva office jointly authored an article published in McKinsey Quarterly, 2012 June on the theme Manufacturing Resource Productivity.

They observed that cost of inputs especially raw materials and energy are going up as production and consumption of manufactured goods is going up in emerging countries. Therefore variable cost is going up as a proportion of production expenses.

But companies have a visible opportunity of reducing these variable costs. Companies who make use of these opportunities will have operational stability compared to organization who ignore them and hence likely to suffer volatility.

The opportunities are in four areas: Production process redesign, Product redesign, Value recovery from used products that are with consumers, and Supply circle management.

Processes can be redesigned to save 20 to 30% energy.

Product redesign can be undertaken to reduce material use by 30%. At the same time design changes can be brought in to their potential for recycling and reuse.

The benefit can go up to 50% if the mechanism and recycling and reuse are put in place with bringing consumers into the loop to recover used products from them.

Once a company is successful with these initiatives, it can implement them in its supply partner organizations.

Read the full article
http://www.mckinseyquarterly.com/Manufacturing_resource__productivity_2982

Origins of Industrial Engineering



Even though Frederick Taylor is called the father of industrial engineering, there are scholars who identified the need for efficiency and productivity in engineering activity or manufacturing activity and even developed some principles.

Adam Smith in his book Wealth of Nations right in the first chapter discussed productivity of labor.


On the economy of machinery and manufactures - Charles Babbage , 1832
http://books.google.co.in/books?id=cTNVAAAAMAAJ

The Philosophy of Manufactures: Or an Exposition of the Scientific, Moral,  and Commercial Economy
Published 1835
Andrew Ure, Glasgow, Great Britain
http://archive.org/stream/philosophymanuf01uregoog#page/n5/mode/2up


John Stuart Mill Economics

On What depends the degree of productiveness of productive agents
http://ebooks.adelaide.edu.au/m/mill/john_stuart/m645p/book1.7.html#book1.7

Of Production on a large, and production on a small scale
http://ebooks.adelaide.edu.au/m/mill/john_stuart/m645p/book1.9.html

Sunday, October 21, 2012

Industrial Engineering in Cement Production by Thomas Edison



Edison got a patent for efficient method of burning portland cement clinker in 1915.

In this patent, Edison suggested diameter to length ration of the kiln as one to twenty seven. This operation requires only 75 pounds of coal per barrel of clinker.

Patent details

http://edison.rutgers.edu/patents/01152613.PDF


Patent list of Edison in the area of cement
http://edison.rutgers.edu/cemepats.htm 

Saturday, October 20, 2012

20 October - Birthday Sir Frederic Charles Bartlett - Ergonomics




Birthday of Sir Frederic Charles Bartlett is 20 October, 1886

He was an English psychologist who was Britain's most outstanding cognitive psychologist between the World Wars. He wrote on practical (ergonomic) problems in applied psychology, but is best-known for his pioneering cognitive approach to understanding human memory. In forming one of the earliest models of memory, Bartlett observed that in remembering stories or events there is a tendency for distortions to occur.

His famous article on Future of Ergonomics in 1962

http://www.tandf.co.uk/journals/pdf/spissue/terg-si.pdf

Engineering "Industrial Engineering" Curriculum



Industrial Engineering curriculum can have now many subjects with the term Industrial Engineering in it.

IE in Different Functions
_______


Product Design Industrial Engineering
http://nraoiekc.blogspot.com/2012/09/product-design-industrial-engineering.html

Maintenance System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/maintenance-system-industrial.html

Information Systems Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/information-systems-industrial.html

Financial System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/financial-system-industrial-engineering.html

Marketing System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/marketing-system-industrial-engineering.html

Supply Chain Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/supply-chain-industrial-engineering.html

Manufacturing System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/manufacturing-system-industrial.html

Total Cost Industrial Engineering - Industrial Engineering of Enterprise Cost
http://nraoiekc.blogspot.com/2012/09/total-cost-industrial-engineering.html


Quality System Industrial Engineering
http://nraoiekc.blogspot.com/2012/10/quality-system-industrial-engineering.html
__________________



________________________________

IE for Different Technologies

Nano Technology Industrial Engineering
http://nraoiekc.blogspot.com/2012/10/nano-technology-industrial-engineering.html


____________________

IE in Different Sectors of Industries

Health Care - Hospital Industrial Engineering
http://nraoiekc.blogspot.com/2012/10/health-care-hospital-industrial.html



_______

Thursday, October 18, 2012

Project Industrial Engineering


Project Industrial Engineering - An Explanation


Industrial Engineering is human effort engineering and system efficiency engineering. It has multiple techniques used to identify and eliminate waste, i.e improving efficiency or productivity and thus reduce cost from designs or plans or ongoing activities

Project industrial engineering has a role in project design, project execution and project management.

Project industrial engineering is concerned  with efficient resource use in projects.
Value engineering is applied in project design. In USA, in all civil engineering projects application of  value engineering is an important step. In the execution of project manpower is used and human effort engineering component of industrial engineering has an important role to play in manpower planning. MOST based time estimation and manpower planning is becoming popular. Construction processes can be subjected to process efficient improvement studies. Mathematical and OR based optimization needs to be utilized in project execution and as well as project management. Engineering economic analysis is applied in project design, execution and management activities.

Project industrial engineering can be organized as a separate function in project organizations and it can pay for itself as a overhead activity by identifying and eliminating waste in plans and designs developed by functional engineers and managers.


Project Value Engineering



what is the meaning of value engineer the project?
http://www.value-eng.org/pdf_docs/What_is_VE.pdf

Value engineering of public transport projects
http://publictransport.about.com/od/Transit_Planning/a/Value-Engineering.htm

Idaho Transport Department - Value Engineering Guidelines
http://itd.idaho.gov/manuals/online_manuals/current_manuals/ITD%20Value%20Engineering/FINAL%20ITD%20Value%20Engineering%20Guidance.pdf

Human Effort Engineering in Projects


Efficient Use of Personnel in a Project
https://www.e-education.psu.edu/geog584/l4_p3.html

Efficient Use of Resources


Gathering and analysis of work performance information is essential to the project management plan and should be considered a priority. Work performance information contributes to the efficient use of resources

http://project-management-knowledge.com/definitions/w/work-performance-information/


Efficient Use of Construction Resources

http://www.oregon.gov/ODOT/HWY/PDU/docs/pdf/pdltnotice09.pdf


Equipment Efficiency

EQUIPMENT UTILIZATION MANAGEMENT PLAN (EUMP) GUIDE
2001
http://www.swf.usace.army.mil/pubdata/logist/Docs/EUMP.pdf

Conceptual Construction Equipment Utilization Plan
http://www.ictf-jpa.org/document_library/application_development_project_approval/App%20B.pdf

Equipment Cost - Presentation
http://www.assakkaf.com/Courses/ENCE420/Lectures/chapter3a.pdf


Labor, Material and Equipment Utilization in Construction Projects
http://pmbook.ce.cmu.edu/04_labor,_material,_and_equipment_utilization.html

CKGP/PW Industrial Engineers - Consultants



CKGP/PW & Associates, Inc. All Rights Reserved
989 Chicago Rd., Troy, MI  48083
Program Management  •  Manufacturing & Paint Process Engineering  •  Productivity Improvement



http://www.ckgppw.com/template.php?pid=43

http://www.ckgppw.com/template.php?pid=35

http://www.ckgppw.com/template.php?pid=36

http://www.ckgppw.com/template.php?pid=37

Wednesday, October 17, 2012

Cement Technology and Industry Industrial Engineering







Maintenance Practices in Cement Industry
Hani Shafeek, Faculty of Engineering ,Industrial Engineering Department
, King Abdulaziz University, Rabigh Branch, KSA
Faculty of Industrial Education, Suez Canal University, Egypt
2012 paper
http://www.asian-transactions.org/journals/vol01issue06/ate/ate-70115068.pdf




Technological Trends in Cement Industry - Energy and Environmental impact
http://www.energymanagertraining.com/Journal/Technological%20Trends%20in%20Cement%20Industry.pdf

Seminar on Energy Conservation in Cement Industry 1994
http://www.unido.org/fileadmin/import/userfiles/puffk/cement.pdf

Tuesday, October 16, 2012

Operations Industrial Engineering


Operations of a manufacturing company include research and development, product design, process design, manufacturing, supply of materials and components, quantity, quality and cost planning and control, maintenance and distribution. Operations of service companies also have  similar activities.


Product Design Industrial Engineering
http://nraoiekc.blogspot.com/2012/09/product-design-industrial-engineering.html

Maintenance System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/maintenance-system-industrial.html

Information Systems Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/information-systems-industrial.html


Supply Chain Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/supply-chain-industrial-engineering.html

Manufacturing System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/manufacturing-system-industrial.html

Total Cost Industrial Engineering - Industrial Engineering of Enterprise Cost
http://nraoiekc.blogspot.com/2012/09/total-cost-industrial-engineering.html


Quality System Industrial Engineering
http://nraoiekc.blogspot.com/2012/10/quality-system-industrial-engineering.html
__________________

Sunday, October 14, 2012

Financial Industrial Engineering - Scope




IE is strategic. That is why even today Taylor is part of all management text books. But the contribution of IEs after Taylor era is not significant.

Cost is strategic. Cost provides you the competitive advantage. Porter clearly stated it.
But what is the contribution of IEs to this strategic dimension? You can't find any from the published material. Either IEs are not contributing much or they are not making it visible.

IEs have a role in New product/service design. Target costing brought this role into much more focus. Once again I do not see any IE contributions in published material in this initiative. IEs are not contributing significantly in their core strategic area of importance to the organization. Bottom line improvement given a budgeted top line is extremely important strategic function every period and if IEs contribute to it by providing well laid out plans understood by managers, they will be appreciated, recognized and will be given board positions. IEs have to contribute significantly to the management of the Total cost of the enterprise and this may be called Total cost industrial engineering. You may make it a component of the Financial industrial engineering. Engineering economic appraisal can also become part of the financial industrial engineering. Engineering economic appraisal is techno-economic evaluation of the engineering proposals from the industrial engineering point of view - that is efficiency point of view.

It is the contribution of IE department to the bottom line in every period and in every project and in every new product and service that gives brand value to the profession. Financial Industrial Engineering has to be the contribution of IE function expressed in financial terms and the subject must have the tools to make IEs understand the scope for their activities, and to state the results of their activities in financial terms.

There is separately Financial System Industrial Engineering, which is application of IE tools and expertise to the financial and accounting system of the organization.

My comment in Linkedin Group of IIE
http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&discussionID=57146433&gid=75670&commentID=99294355

Functional Industrial Engineering Subjects


The idea was mooted in September 2012.

Industrial engineering has a focus in system efficiency and will help every business function to improve efficiency of effective system designed for it by functional specialists of that discipline. Industrial engineers have actually shown results in every business function with their methods, tools and techniques. The IE tools and techniques are getting enlarged, improved and enriched by the involvement  of all in the area of efficiency improvement. IE department and professionals are always willing to learn new things and methods that help in improving the efficiency of systems and apply them in practice.

Product Design Industrial Engineering
http://nraoiekc.blogspot.com/2012/09/product-design-industrial-engineering.html

Maintenance System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/maintenance-system-industrial.html

Information Systems Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/information-systems-industrial.html

Financial System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/financial-system-industrial-engineering.html

Marketing System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/marketing-system-industrial-engineering.html

Supply Chain Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/supply-chain-industrial-engineering.html

Manufacturing System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/manufacturing-system-industrial.html

Total Cost Industrial Engineering - Industrial Engineering of Enterprise Cost
http://nraoiekc.blogspot.com/2012/09/total-cost-industrial-engineering.html


Quality System Industrial Engineering
http://nraoiekc.blogspot.com/2012/10/quality-system-industrial-engineering.html
__________________

Comment in Linkedin Group of IIE

I feel one channel to improve brand recognition is to create subjects in industrial engineering for each business function and sector. I am making a beginning and trying to collect papers, articles, case studies and presentations that are focused on each business function.

Product Design Industrial Engineering
http://nraoiekc.blogspot.com/2012/09/product-design-industrial-engineering.html

Maintenance System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/maintenance-system-industrial.html

Information Systems Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/information-systems-industrial.html

Financial System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/financial-system-industrial-engineering.html

Marketing System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/marketing-system-industrial-engineering.html

Supply Chain Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/supply-chain-industrial-engineering.html

Manufacturing System Industrial Engineering - Online Book
http://nraoiekc.blogspot.com/2012/09/manufacturing-system-industrial.html

Total Cost Industrial Engineering - Industrial Engineering of Enterprise Cost
http://nraoiekc.blogspot.com/2012/09/total-cost-industrial-engineering.html

The idea is to collect up to 100 articles for each subject. Even though the collection looks haphazard at the beginning, we can classify them better at a later stage. I need to circulate these lists to large number of students and alumni and request them to suggestion more for inclusion.


________________________________

IE for Different Technologies

Nano Technology Industrial Engineering
http://nraoiekc.blogspot.com/2012/10/nano-technology-industrial-engineering.html


____________________

IE in Different Sectors of Industries

Health Care - Hospital Industrial Engineering
http://nraoiekc.blogspot.com/2012/10/health-care-hospital-industrial.html

Saturday, October 13, 2012

Industrial Engineering Course Pages and Notes

Engineering Economy or Economics


Professor Rakesh Negi, SUNY Buffalo
Facilities Design
Professor Rakesh Negi, SUNY Buffalo


Engineering Project Management

http://www.usc.edu/dept/ise/assets/001/21165.pdf
Prof Erich Kreidler, USC
More files from USC http://www.usc.edu/dept/ise/assets/ (important source)

Human Factors, Ergonomics

Human Factors practicum
Prof. Colin Drury, SUNY Bufflalo
Introduction to Work Design
Dr. Andris Freivalds, Penn State University
Mechanics of the Musculoskeletal System
Dr. Andris Freivalds, Penn State University
Methods, Work Measurement and Employee Motivation
Dr. Andris Freivalds, Penn State University



Optimization

Operations Research - Jayant Rajagopal
http://www.pitt.edu/~jrclass/or/web.htm

NonLinear Programming Theory
http://www2.isye.gatech.edu/~nemirovs/OPTIII_LectureNotes.pdf

Probability and Applied Probability, Statistiscs
Prof. Wayne F. Bialas, SUNY Buffalo
Work Design - Productivity and Safety
Dr. Andris Freivalds, Penn State University


Production - Manufacturing Systems


Networks, Routing and Logistics
http://www.acsu.buffalo.edu/~nagi/courses/684/4.shortestpath.pdf


Sustainability Engineering
http://engineering.utep.edu/sustainabilityengineering/files/IE%204395%20-%20Syllabus.pdf

Friday, October 12, 2012

Lean Six Sigma Methods - MIT Course YouTube Videos - Part 3


________________

________________



_________________

_________________



__________________

__________________


__________________

__________________


__________________

__________________


___________________

___________________

Lean Six Sigma Methods - MIT Course Contents - Part 1


________________

________________


________________

________________


________________

________________


________________

________________


________________

________________


_________________
_________________


_________________

_________________

Accelerating Product Engineering Processes Across Semiconductor Supply Chain Using Serus' MPM Solutions for Rapid ROI.



_______________

_______________

Tuesday, October 9, 2012

Operator Training for Productivity and Efficiency





CASE STUDIES IN VALUE IMPROVEMENT IN HARDWOOD TIMBER HARVESTING OPERATIONS IN THE
SOUTHERN APPALACHIANS (Through Training)
Hylton J.G. Haynes
2002 MS Thesis
http://scholar.lib.vt.edu/theses/available/etd-08282002-145228/unrestricted/hhTHESIS.pdf

Operations training - Zenith Technologies
http://www.zenithtechnologies.com/downloads/ZT%20Approach%20to%20Operations%20Training.pdf


THE IMPACT OF TRAINING AND DEVELOPMENT ON WORKER PERFORMANCE AND PRODUCTIVITY IN PUBLIC SECTOR ORGANIZATIONS: A CASE STUDY OF GHANA PORTS AND HARBOURS AUTHORITY
2009 MBA thesis
http://dspace.knust.edu.gh:8080/jspui/bitstream/123456789/628/1/Irene%20Ferguson%20Laing.pdf

Value Engineering Tablet Computer - Design and Development of Tablet Computer for Masses



What is value engineering of IPad?

Value engineering of IPad means that current specifications of the IPad are not disturbed, the look and feel of the device is not disturbed, the customer should not feel any difference between the new instrument and the old instrument,but its cost has to come down.

What manufacturers like Datawind have tried to do with low cost tablet computer projects ($35 per tablet) is to come out with barebone models that have different specifications but tried to provide the essential function of the tablet computer, access to internet. It may be a difficult job, but they have done it. The effort they had put into the activity could facilitate value engineering of IPad.


What Datawind has done to manufacture tablet computers at $35?

The tablet has over 800 components sourced from various places around the world[1].

While many manufacturers  buy modules or sub-assemblies, which usually have high markups, Datawind bought components and assembled them into modules.  They get a bunch of finished components and put the device together in an assembly factory.

Removing the margins on the modules and going down to the component level helped Datawind to get components at lower prices. It was able to use low cost processes for assembling them into modules. By buying the LCD screen (most expensive component) in semi-finished condition,  Datawind was able to push its cost down to under 10$. It completed the remaining processes in its assembly facility[1].

Tuli, CEO of Datawind  explained thatDataWind was able to cut down the price to US$8/unit because the firm purchased uncompleted units and did the rest of the gluing and soldering needed to finish the job[4].



Akash Tablet PC utilizes 35% components from South Korea, 25% from China, and 16% from both India and the US. Remaining components are being arranged from all over the world depending upon where the cheapest source is.




Akash Tablet PC has a 7 inch display that has a resolution of 800×400 PIXELS. It weighs around 350g. It runs on Android 2.2 Froyo and is packed with 366 MHz processor with internal memory of 2 GB. The memory can be increased using micro SD cards. The battery (2100mAh) runs for about 3 hours[2].

DataWind also opted for the free Android operating system and tweaked it to work on its devices' cheaper but weaker processors (ARM 11 – 366 MHz microprocessors in the case of Aakash)[4].

The Indian government buys the tablet from the company for US$49.98 and resells it for the subsidized cost of US$35/unit[4].


Low Cost Tablets from BEL $72 [3]

By December 2011, BEL delivered 600,000 7-inch tablets to Ministry of Rural Development  (MoRD), and an additional 40,000 units in January 2012. It cost $72,

Interview with Suneet Singh Tuli, CEO, Datawind - Developer of $35 cost tablet computer - 2011
_______________

_______________




References and Bibliography

1. http://oobly.com/2011/10/26/at-35-a-unit-how-did-india-pull-off-the-worlds-cheapest-android-tablet_503/
2. http://www.mygadgetplanet.com/2624/india-does-it-again-with-akash
3. http://forbesindia.com/article/real-issue/what-went-wrong-with-the-aakash-tablet/33218/0#ixzz28nAkppee
4. http://www.pcworld.in/news/datawind-boss-reveals-secrets-behind-aakash-tablet-61052012


Early User Review of Akash Tablet
http://www.aakashtablet.in/2012_01_14_archive.html



Related Information

Electronic manufacturing services - Simmtronics
http://www.simmtronics.com/simtron/index.php?option=com_content&view=article&id=54&Itemid=41

http://www.alibaba.com/showroom/tablet-computer-parts.html

http://www.madeinchina.com/wholesale-catelog/Tablet-PC-Components_009001.shtml

Component price comparison
http://computers.pricegrabber.com/motherboards/p/40/

Monday, October 8, 2012

Performance Rating in Work Measurement - Bibliography



A Survey of Performance Rating Research in Work Measurement
1988 MS Thesis, Kansas State University
http://ia601205.us.archive.org/35/items/surveyofperforma00devo/surveyofperforma00devo.pdf

The University of Michigan - IEOR Faculty Notification - 1 November 2012 Deadline




THE UNIVERSITY OF MICHIGAN
Department of Industrial and Operations Engineering Faculty Positions
The Department of Industrial and Operations Engineering at the University of Michigan invites applications and nominations for faculty positions beginning September, 2013.
We seek outstanding candidates for faculty positions in the areas of Human Factors and Ergonomics at all levels and in Discrete Event Simulation at all levels. Applicants in research areas including cognitive and physical ergonomics, and system safety are encouraged to apply, as are applicants with research and teaching interests in simulation modeling and analysis.
Candidates must have a Ph.D. and must demonstrate a strong commitment to high-quality research and evidence of teaching potential. Experience related to manufacturing and/or service operations is desirable. Candidates for Associate or Full Professor should have a commensurate record of research publications and are expected to provide organizational and research leadership, develop sources of external funding, build relationships with industry, and interact with faculty colleagues.
Candidates should provide (i) a current C.V., (ii) a list of references, and one page summary statements describing: (iii) career teaching plans; and (iv) research plans. Candidates should have their references send recommendations to us directly at IOEFacultySearch@umich.edu. The deadline for ensuring full consideration of an application is November 1, 2012, but the positions will remain open and applications may still be considered, at the discretion of the hiring committee, until appointments are made.
We seek candidates who will provide inspiration and leadership in research and actively contribute to teaching. We are especially interested in candidates who can contribute, through their research, teaching and/or service, to the diversity and excellence of the academic community. The University of Michigan is responsive to the needs of dual career families.
Please submit your application to the following:

Thursday, September 27, 2012

Financial System Industrial Engineering - Online Book



Financial system  industrial engineering is the study of resource use in various accounting and finance mobilization, allocation and payment and repayment activities with a view to increasing the efficiency or eliminating the waste wherever possible. While the finance activities are designed to account for financial resources and procure and use them, variety of others resources namely, manpower, data processing equipment, information and others are used in these activities. The use of resources in finance activities is carefully investigated by the industrial engineering to identify and remove waste. Industrial engineering succeeded in reducing the cost of many processes designed in the first iteration by the managers up to 50% and hence it is a very important activity in systems design or systems engineering.

Famous example of industrial engineering, is Henry Ford's production system redesign, that reduced the price of the automobile by half. Taylor reduced cost of many manufacturing activities. Gilbreth and Harrigton Emerson also achieved similar cost reduction in construction activity and rail road operations.




System Industrial Engineering - System Human Effort Engineering - System Efficiency Engineering


Human Effort Engineering - Techniques

1. Principles of Motion Economy
2. Motion Study
3. Workstation Design
4. Application of Ergonomics and Biomechanics
5. Fatigue Studies
6. Productivity/Safety/Comfort Device Design
7. Standardization of  Methods
8. Operator training
9. Incentive Systems
10. Job Evaluation
11. Learning effect capture
12. Work Measurement


EFFICIENCY IMPROVEMENT TECHNIQUES OF INDUSTRIAL ENGINEERING


1. Process Analysis
2. Operation Analysis
3. Layout Efficiency Analysis
4. Value engineering
5. Statistical quality control
6. Statistical inventory control and ABC Classification Based Inventory Sytems
7. Six sigma
8. Operations research
9. Variety reduction
10. Standardization
11. Incentive schemes
12. Waste reduction or elimination
13. Activity based management
14. Business process improvement
15. Fatigue analysis and reduction
16. Engineering economy analysis
17. Learning effect capture and continuous improvement (Kaizen, Quality circles and suggestion schemes)
18. Standard costing


Applications in Finance Function

Manpower planning in Finance departments
Cash flow models
Furniture selection for the department
Office processes improvement studies

Marketing System Industrial Engineering - Online Book





Marketing system industrial engineering is the study of resource use in various marketing activities with a view to increasing the efficiency or eliminating the waste wherever possible. While the marketing activities are undertaken to understand and serve the needs of the targeted customers in a market, resources namely, people, equipment, material, information and various services are used in the activities.  The resource use in the marketing activities is carefully investigated by the industrial engineering to identify and remove waste. Industrial engineering succeeded in reducing the cost of many processes designed in the first iteration by the managers up to 50% and hence it is a very important activity in systems design or systems engineering.

Famous example of industrial engineering, is Henry Ford's production system redesign, that reduced the price of the automobile by half.


System Industrial Engineering - System Human Effort Engineering - System Efficiency Engineering


Human Effort Engineering - Techniques

1. Principles of Motion Economy
2. Motion Study
3. Workstation Design
4. Application of Ergonomics and Biomechanics
5. Fatigue Studies
6. Productivity/Safety/Comfort Device Design
7. Standardization of  Methods
8. Operator training
9. Incentive Systems
10. Job Evaluation
11. Learning effect capture
12. Work Measurement


EFFICIENCY IMPROVEMENT TECHNIQUES OF INDUSTRIAL ENGINEERING


1. Process Analysis
2. Operation Analysis
3. Layout Efficiency Analysis
4. Value engineering
5. Statistical quality control
6. Statistical inventory control and ABC Classification Based Inventory Sytems
7. Six sigma
8. Operations research
9. Variety reduction
10. Standardization
11. Incentive schemes
12. Waste reduction or elimination
13. Activity based management
14. Business process improvement
15. Fatigue analysis and reduction
16. Engineering economy analysis
17. Learning effect capture and continuous improvement (Kaizen, Quality circles and suggestion schemes)
18. Standard costing


Applications

Application of quantitative analysis in marketing decisions was dealt with in a book by Kotler

The application of industrial engineering to marketing management.
Chapter 33 in Handbook of Industrial and Systems Engineering by Adedeji Badiru
http://www.crcnetbase.com/doi/abs/10.1201/9781420038347.ch33

Travelling salesman problem

Counter design problems in Railway reservation counter, banks, call centers

OR analysis of media planning

Distribution center efficiency improvement

Sales Force Productivity Improvement - An Industrial Engineering Activity

What the Difference between Manufacturing Management and Manufacturing System Industrial Engineering




Manufacturing management is planning the manufacturing activity, planning organization of the manufacturing system consisting of equipment, people, materials,  and other resources, acquiring all the resources and directing them and controlling them.

Manufacturing system  industrial engineering is the study of resource use in various manufacturing activities with a view to increasing the efficiency or eliminating the waste wherever possible. While the manufacturing  is designed to produce goods that serve the needs of the targeted customers, the resource use in the design is carefully investigated by the industrial engineering to identify and remove waste. Industrial engineering succeeded in reducing the cost of many processes designed in the first iteration by the managers up to 50% and hence it is a very important activity in systems design or systems engineering.

Famous example of industrial engineering, is Henry Ford's production system redesign, that reduced the price of the automobile by half. Taylor reduced cost of many manufacturing activities. Gilbreth and Harrigton Emerson also achieved similar cost reduction in construction activity and rail road operations.

Wednesday, September 26, 2012

Engineering Management and Industrial Engineering - Comparison

What is the Difference Between Supply Chain Management and Supply Chain Industrial Engineering



Supply chain management is planning the supply chain activity, planning organization of the supply chain consisting of equipment, people, suppliers and other resources, acquiring all the resources and directing them and controlling them.

Supply chain industrial engineering is the study of resource use in various supply chain activities with a view to increasing the efficiency or eliminating the waste wherever possible. While the supply chain is designed to serve the needs of the targeted customers, the resource use in the design is carefully investigated by the industrial engineering to identify and remove waste. Industrial engineering succeeded in reducing the cost of many processes designed in the first iteration by the managers up to 50% and hence it is a very important activity in systems design or systems engineering.

Famous example of industrial engineering, is Henry Ford's production system redesign, that reduced the price of the automobile by half.

What is the Difference Between Industrial Engineering and Management?



Management is selecting a task that is to be done, developing a plan for doing it, creating an organization plan that involves capital equipment, people and other resources, acquiring those resources, recruiting and training people, directing them to accomplish the task by giving them the resources and controlling the activity of the organization so that the task is completed.

Industrial engineering participates in this managerial process, by doing studies of efficiency of resource use. In every major managerial task undertaken by a managers there are many minor tasks termed as processes, activities, and plainly as tasks, operations and elements. Industrial engineers study the efficiency of these processes, activities or tasks and improve them as possible to give more efficiency. Industrial Engineering is a staff service or staff activity in the managerial process.

Do industrial engineers manage? As per the definition of management, every task is to be managed. Industrial engineering activities or projects or studies are also tasks and they are to be managemed. Hence senior industrial engineers act as managers of the IE departments, sections, and projects.


What is Industrial Engineering - YouTube Video Presentation

_____________

_____________





_______________________________________________________________________

Comments on Twitter

By @TanvirMastan
@knoltweet By Name.otherwise course outline is same.

My reply


@TanvirMastan It looks like that because IE curriculums have to cover basics of each and every function of business.

IE curriculums have many management subjects to teach basics of various business functions and their management. But they do not have subjects of IE for each of these business functions. Probably there is enough content for developing IE subject for every business functions. I am making the beginning.

Manufacturing System Industrial Engineering
Supply Chain Industrial Engineering
Marketing System Industrial Engineering
Financial System Industrial Engineering

Monday, September 24, 2012

Value Chain Analysis - A Base for Total Cost Industrial Engineering



Michael Porter proposed value chain analysis as a tool for strategy analysis. The enterprise is modeled as a set of activities and each of these activities is designed for providing competitive advantage either in differentiating or in providing cost leadership.

The proponents of strategic management accounting and strategic cost management have developed the cost orientation of value chain analysis further.

An article on strategic cost management described value chain analysis in the following manner.

Value chain analysis involves the process of decomposing the processes from suppliers to final customers into strategically relevant activities as a way of managing costs. Each activity, or segment or link along the value chain is expected to add value. It means, the revenue earned by the activity has to be more than its cost. Once the distinct segments of the value chain or the strategically relevant activities have been identified, the role of finance professionals is to contribute to the assignment of costs to these activities. Assigning revenues  and  costs facilitates process value analysis, which involves comparing these costs against the revenue generated by the activities. The aim of process value analysis is to ensure that each segment of the chain is not only relevant, but that it is also generating value - that is revenue higher than the costs it consumes. 

From industrial engineering perspective, this concept of value chain cost analysis is a good beginning point. Industrial engineering takes up processes, methods and activities for productivity improvement or cost reduction. Industrial engineers may need to define the processes that they would like include in the IE view of the functioning of the total organization. Even though the value chain analysis as a concept was well accepted, in the literature one does not find good examples of company level value chain analysis put to productive use. Industrial engineering profession has the need and opportunity to operationalize the value chain analysis concept from the perspective of industrial engineering activity and create an enterprise cost map in terms of processes of the organization meaningful to carry out continuous improvement activities as well as IE projects.

Further reading


Proposal for  Developing Total Cost Industrial Engineering