Chapter 1 Fundamentals of Industrial Engineering DPT 331

Chapter 1 : Fundamentals of Industrial Engineering DPT 331 Manufacturing Engineering, Center for Diploma, Uni. MAP. Book:

What is IE? • The design or improvement of a system of people, machines, information, and money to achieve some goal with efficiency, quality, and safety. • Concerned with the DESIGN, IMPROVEMENT, and INSTALLATION of INTEGRATED SYSTEMS of people, materials, information, equipment and energy. • It draws upon specialized knowledge and skill 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 system

Important terms in IE Design 1. - Some industrial engineering tasks involve the creation of a new facility, process, or system. Improvement 2. - Most industrial engineering tasks involve the improvement of an existing facility, process, or system. System 3. - Most engineers design physical objects, but most IEs design systems. Systems include physical components, but also include processes, rules, and people. Components of a system have to work together. Material and information flow between the components of a system. A change to one part of system may affect other parts of the system.

Important terms in IE (cont. ) 4. 5. 6. 7. 8. 9. 10. 11. People - Among all types of engineers, IEs think the most about people. Machines - An IE must select the appropriate machines - including computers. Information - Data can be used for immediate decision making and can be analyzed to make improvements to the system. Money - An IE must weigh costs and savings now against costs and savings in the future. Goal - Every designed system exists for some purpose. The IE must think about different ways to accomplish that goal and select the best way. Efficiency - Whatever the goal of the system, the IE usually seeks to have the system achieve that goal quickly and with the least use of resources. Quality - The IE’s organization always has a customer and the organization must deliver goods and services to the customer with the quality that the customer wants. Safety - IEs have to make sure that the system is designed so that people can and will work safely.

History What is IE? Ø Existed in England after industrial revolution Ø Needs on technical trained workers, whom can plan, conduct and direct a complex operations Chronology Ø Industrial Revolution (1760 -1830) Ø Adam Smith (1723 – 1790) Ø Robert Owen (1771 – 1858) Development Ø Ø Ø Charles Babbage (1792 – 1871) Work Measurement (end of 18 th Cent. ) Frederick W. Taylor (1856 – 1915) Frank & Lilian Gilbreth (1886 – 1984) Charles Bedaux Henry L Gantt

Chronology of significant events

Relationship to other Engineering Disciplines

LEVELS OF INDUSTRY SYSTEM DESIGN Human Activity System Management Control System TWO LEVELS OF DESIGN FOR INDUSTRY SYSTEMS

Human Activity System Manufacturing Process Materials & other resources utilized in production process Machines & Equipment Layout & Specifications Material handling equipment & procedures Workplace design Storage & Location Report Procedure for maintenance & housekeeping Safety procedure

Management Control System Management Planning Systems Forecasting Procedure Budgeting & Economic Analysis Wage & Salary Plans Incentives Plans & other Employee Relations System Recruiting, Training & Placement of Employees Material Requirement Plan Inventory Control Procedures Production Scheduling Progress & Status Reporting Corrective Action Procedures Quality Control (QC) System Cost Control & Reduction Organization design Decision support sys.

3 activities of I. E Production System Management System Corporate Service Industrial Engineering Activities

§ 1. Production SYSTEM ( Relevant to Product & Services Operation) § Relevant to : Manufacturing Process Facilities Work Methods Production Planning & Control

Production SYSTEM ( Related to the Product & Services Operation) a) Profitable at Various Product Volume Company still have profit if the product being produce at various volume b) Compatible with the existing product line. Any changes of product/service can be adapt with the existing production line. c) Determine most cost effective material to utilize. Choose the material based on utilization on the product with a consideration on most cost effective example choose thermoplastic @ metal for hand phone cover

Production SYSTEM ( Attempt to improve existing products/services Operation) a) Analyze field data on product usage b) Coordinate with the engineering design department on design changes To make sure all the changes c) Perform analyses relating to distribution of the product/delivery of the services Operation research, Facilities planning, etc

Production SYSTEM ( Related to the process of manufacturing Operation) a) Best process & method Apply classification and coding for each component Design and specify appropriate tooling and fixture b) Select equipment, determine degree of automation Use robot and computerized system c) Balance assembly line To assign elements along the assembly line to promote the greatest manufacturing efficiency. d) The best material flow & material handling procedures & system Shorter time management, lower cost & economically viable into a coordinated system of operation

Related to the facilities a) Best layout & equipment Production SYSTEM ( Operation) Planning the best physical arrangement of economic activity centers within a facility b) Appropriate storage facilities for raw material, W-I-P ( Work In Progress ) & finished goods inventory Based on types of product, situation , space, equipment and time etc. c) Appropriate preventive maintenance system & procedures d) Appropriate inspection & test facilities Scheduling, check list, breakdown.

Production SYSTEM ( Related to Work Methods & Standard Operation) a) Work measurement study Determine the proper time to allow for the effective performance of a specific task b) Methods of improvement studies Process whereby a task is analyzed and possible changes are identified that will either increase productivity of the worker, make the work easier to perform c) Value engineering analyses Structured problem solving process based on function analysis

Production SYSTEM ( Related to Production Planning Control (PPC) Operation) a) Forecast the level of activity The process of estimation of product base on product awareness, distribution, price, fulfilling unmeet needs & competitive alternatives b) Analyze the capacity & resource constraint Analysis on machine, capital expansion, gross labor hours and warehouse space

Related to PPC Production SYSTEM ( Operation) c) Operations Planning & Scheduling Facilitate any necessary facility arrangement Cary out make-or-buy decisions Plan production rates, rebalance assembly line Construct master production planning Allocate resource Schedule component production & assembly operations

Related to PPC Production SYSTEM ( Operation) d) Inventory analysis Process of understanding the stock/product mix combined with the knowledge of the demand for stock/product e) Material Requirement Planning (MRP) Basic tool for performing the detailed material planning function in the manufacture of components parts and their assembly into finished item f) Design the quality control system and inspection procedures Based on product specification

Related to PPC Production SYSTEM ( Operation) g) Simultaneously smoothing of production, inventory and work force h) Design system and procedures for shop floor Progress & status, quality & rework reports Corrective action plan Cost accumulation Labor utilization reports Reports on productivity, efficiency & effectiveness

2. Management SYSTEM Information System Cost Finance Employees

Management SYSTEM Related to Information System a) Management info requirements b) Design the : data base to support the info system management reports d) Perform data analysis e) Provide feedback to all level of organization f) Develop & Implement decision support system. g) Analyze data

Management SYSTEM Related to Financial & Cost Systems a) Design Budgeting System Procedures Systems Implement & track cost reduction b) Perform variety Engineering Economics studies

Related to Personnel Management SYSTEM a) Design Procedure for employee Training & Education Programs Install Job Evaluation & Wage Incentives Effective Labor Relations pro. & Procedures Implement & Monitor Effective Safety Program b) Applied Ergonomics & Human Engineering c) Develop effective program of job enhancement d) Coordinate activities of quality circle group

3. Corporate SERVICE Strategic Planning Development & Organize Manual Policies & Procedures Analysis for Design of the Organization

Comprehensive planning Corporate SERVICE Design, Implement and Monitor Multilevel Planning System. Performing Strategic Planning System Integration Project Management Services Total Quality Management

Policies & Procedure Corporate SERVICE Studies & Analyses a. Organizational b. Various functional grouping, c. Recommend improvements to top management Develop & maintain a. Policy manuals b. Current procedures relatives to all management practices & systems

Corporate SERVICE Performance Measurement Design a) Meaningful performance measure b) Reports for all levels Identify critical success factor Specify corrective action

Analysis Corporate SERVICE Systems & construct model Recognize the dynamic nature of the system Conduct design experiments of the organization Simulation, Operation Research (OR), Statistical Analysis End

Assignment 1. In Your Own Words define What is Industrial Engineering? 2. List down and briefly explain what are the tasks of an industrial engineer? 3. What do you understand about the two levels of design of industry system 4. Explain the main industrial engineering activities? Due date : 21 st June 2017