Vous êtes sur la page 1sur 27

Course: Industrial Engineering and Management Code : MEE308

Winter Semester 2010-11

Unit-II

Industrial Engineering and Productivity

Frederick Winslow Taylor


Master of Scientific Management

Siva Prasad Darla / SMBS

Contents
Introduction to Industrial Engineering Industrial Engineer Skills and Qualities History and Development of Industrial Engineering Activities of Industrial Engineering Concepts of Industrial Engineering Introduction to Productivity Basic definitions of productivity measure Advantages and limitations of productivity measures Productivity benefit model Factors affecting Productivity Productivity improvement techniques
IEM / SMBS / VIT 2

Introduction to Industrial Engineering


Industrial Engineering is concerned with the design, improvement and installation of integrated system of men, materials and equipment. It draws upon specialized 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- AIIE
Similar fields- Operations Research, Management Science, Production and Material Handling Supply Chain, Engineering Management, Systems Engineering, Human Factors Engineering/Ergonomics, Process Engineering, Value Engineering, Quality Engineering, Statistics, Stochastic Systems, Ex. Management Engineers/Health System Engineers System Optimizer Industrial Manager Quality Engineer Reliability Engineer Ergonomist Operations analyst IEM / SMBS / VIT

Introduction

cont..

Industrial Engineering integrates knowledge and skills from several fields of science: Technical Sciences, Economic Sciences as well as Human Science - all these can also be supported with skills in Information Sciences.

Source: kwaliteg
IEM / SMBS / VIT 4

Skills and Qualities needed


Good mathematical skills Strong time management skills Good common sense Strong desire for organization and efficiency Excellent communication / salesmanship Creative problem solving Quantitative aptitude skills Technical competency Continuous drive for improvement Resourcefulness Listening, negotiation, diplomacy and patience Ability to adopt to many environment Continuous desire to learn Leadership skills Engineering Ethics

IEM / SMBS / VIT

History and Development of IE


Contributor
James Watt (1764) Adam Smith (1776) Charles Babbage (1832)

Contributions
Steam engine, provided machine power for factories to increase productivity. The Wealth of Nations- concept of division of work (specialization of labour) include skill development, time savings and use of special machines to influence the factory system. On the economy of machinery and manufactures and build analytical calculating machine

Frederick W Taylor Scientific management principles, theory of management (1856-1915) principles and methodologies. Constitution of days work, wage payment system, elimination of waste, training of workers, understanding b/n managers and workers. Frank B Gilbreth (1868-1934) Lillian M Gilbreth (1878-1973) Motion study, method study, therbligs, relationship b/n output and effort of worker. Micro motion study, fatigue studies, human factor in work, employee selection and training
IEM / SMBS / VIT 6

History and Development of IE


Contributor
Henry L Gantt (1861-1919)

cont

Contributions
Gantt charts, incentive pay systems, training of workers by management, recognition of social responsibility of business and industry.

Carl G Barth (1860- Mathematical analysis, slide rule, feeds and speeds studies, 1939) consulting to automobile industry Harrington Emerson Principles of efficiency- Emersons efficiency bonus plan, (1885-1931) million-dollars-a-day savings in railroads, methods of control Morris L Cooke (1872-1960) LHC Tippet (1937) Henry R Towne Frederick A Halsey Ralph M Barnes Scientific management application to education and government Concept of work sampling Economic aspects and responsible of the engineers job Halsey premium plan of wage payment Ph.D. in Motion study

IEM / SMBS / VIT

History and Development of IE


cont..

Advances in computer technologies and software application packages


Robotics and Numerical Control (CNC Machines) Computer assisted design like CAD/CAM/CIM/CAE, CAPP, CAQC Statistical control for quality like SPC, SQC and TQM, Six Sigma DOE, ANOVA Reliability Engineering TPM Lean (just-in-time) manufacturing, Kaizen system, Kanban Production Control System GT, CMS, Automation and FMS Benchmarking ISO Standards CE DFMA, Design for X Process Re-engineering Outsourcing ERP SCM Virtual Organization Customer Relationship Management PDM, PLM Advances in information technology and computer packages
IEM / SMBS / VIT 8

Activities of IE
Selection of processes and assembling methods Selection and design of tools and equipment Design of facility Design planning and control systems Developing a cost control system Development of time standards, costing and performance standards Development and installation of job evaluation system Establishment and installation of wage and incentive schemes Development of standard training programmes Design and implementation of value engineering and analysis system Optimization of systems using Operations Research Techniques Performance evaluation Organization Structure Project feasibility studies Supplier selection and evaluation Implementation of various systems like MRP, ERP, Bar-code, RFID, ISO, TQM, Six Sigma IEM / SMBS / VIT 9

Role of industrial engineer


Industrial Engineer

Expert

Advisor and Consultant

Analyst of System

Trainer

Decision Maker

IEM / SMBS / VIT

10

Concepts of IE
Method study, Motion study, Work measurement Facilities design OR SQC / SPC Reliability Capacity planning Inventory management Project scheduling CPM / PERT Forecasting PPC VE / VA Material handling system Wage Incentive schemes Job evaluation Ergonomics System analysis Quality Assurance and TQM
IEM / SMBS / VIT 11

JOURNALS AND MAGAZINES


International Journal of Industrial Engineering IIE Transactions INFORMS OR/MS Journal of Scheduling Knowledge and Information Systems: An International Journal Engineering Magazine Institutions of Engineering (India) Applied Ergonomics Ergonomics Human Factors in Ergonomics and Manufacturing IEEE Industry Applications Magazine IEEE Transactions on Robotics and Automation International Journal of Flexible Manufacturing Systems International Journal of Production Research Journal of Engineering and Technology Management Journal of Intelligent Manufacturing Quality and Reliability Engineering International Robotics and Computer-Integrated Manufacturing Expert Systems with Applications Knowledge Based Systems
IEM / SMBS / VIT 12

Productivity
Industrial Engineering and Productivity (Unit II)

INTRODUCTION TO PRODUCTIVITY
Quesnay (1766) word productivity Littre (1883) productivity defined as the faculty to produce Early 1900s Relationship between output and the means employed to produce this output OEEC (1950) Productivity is the quotient obtained by dividing output by one of the factors of production Kendrick and Functional definitions for partial, total factor and Creamer (1979) total productivity Sumanth(1979) Total productivity- the ratio of tangible output to tangible input

IEM / SMBS / VIT

14

COMMON MISUSE OF THE TERM


XYZ electronic company produced 10000 calculators by employing 50 people at 8 hours/day for 25 days. Production = 10000 calculators Productivity (of labour) = output / labour input = 1 calculator per man-hours This company increased its production to 12000 calculators by hiring 10 additional workers at 8 hours/day for 25 days. Production = 12000 calculators Productivity (of labour) = 1 calculator per man-hours Production is concerned with the activity of producing goods and/or services. Productivity is concerned with the efficient utilization of resources (inputs) in producing goods and/or services (output).
An increased production does not necessarily mean increased productivity
IEM / SMBS / VIT 15

COMMON MISUSE OF THE TERM


Efficiency is the ratio of actual output attained to standard output expected. Effectiveness is the degree of accomplishment of objectives. Productivity is a combination of both effectiveness and efficiency. According to Mali [1978] output obtained Productivity index = input expended performance achieved = resource consumed

effectiveness = efficiency
f (effectiveness) Productivity index = F (efficiency)
IEM / SMBS / VIT 16

Basic Definitions of Productivity Measure


Partial Productivity Measure Partial Productivity is the ratio of output to one class of input. Labour productivity = output / labour input Total-factor Productivity Measure Total-factor Productivity is the ratio of net output to sum of associated labour and captial (factor) inputs. Total-factor productivity = net output / (labour and capital input) Total Productivity Measure Total Productivity is the ratio of total output to the sum of all input factors. Total productivity = total output / total input Both the output and input(s) are expressed in real or physical terms by being reduced to constant rupees of a reference period (base period).
IEM / SMBS / VIT 17

Advantages and limitations of partial productivity measure


Advantages 1. Easy to understand 2. Easy to obtain the data 3. Easy to compute the productivity indices 4. Easy to sell to management 5. Some partial productivity indicator data is available industry wide 6. Good diagnostic tool Limitations 1. If used alone, can be very misleading and may lead to costly mistakes 2. Do not have the ability to explain overall cost increases 3. Tend to shift the blame to the wrong areas of management control 4. Profit control through partial productivity measures can be a hit-and IEM / SMBS / VIT 18 miss approach

Advantages and limitations of total-factor productivity measure


Advantages 1. The data from company records are relatively easy to obtain 2. Usually appealing from a corporate economists viewpoint Limitations 1. Does not capture the impact of materials and energy inputs 2. The value-added approach to defining the output is not very appropriate in a company setting 3. Not appropriate when material costs form a sizable portion of total product costs 4. Only labour and capital inputs are considered in the total factor input 5. Data for comparison purposes are IEM / SMBS / VIT 19 relatively difficult to obtain

Advantages and limitations of total productivity measure


Advantages Limitations 1. More accurate representation of the 1. Data for computations are real economic picture of a relatively difficult to company. obtain at product and customer levels 2. Profit control through the use of total productivity indices is a 2. Does not consider tremendous benefit to top intangible factors of management. output and input in a direct sense 3. If used in conjunction with partial measures, can direct management attention in an effective manner 4. Sensitivity analysis is easier to perform IEM / SMBS / VIT 20 5. Easily related to total costs

Productivity Benefits Model


Improvement in productivity Increase in wages Better machines Increase in demand for goods and services

More output Reduction in product cost

Lowering of prices

Greater employment

More profits

More savings
IEM / SMBS / VIT

Higher investments
21

Factors affecting Productivity


Capital Investment Capital / Labour Ratio Research and development- R & D expenditures are necessarily impacting productivity improvement, particularly when the data are considered at the industrial level. Capacity Utilization Government Regulations Regulations to provide a balance between industrial progress and desirable social goals. Age of Plant and Equipment Energy Costs Workforce Mix
IEM / SMBS / VIT 22

Factors affecting Productivity


Work Ethic Workers Fear About Loss of Jobs Unions influence Management Barry study showed that, on the average, only 4.4 hrs per day are used productively; 1.2 hrs are lost because of personal and other unavoidable delays; and 2.4 hrs are simply wasted because of managements ability to effectively plan and control the workers tasks. Product Technology Materials Human factors Work methods

IEM / SMBS / VIT

23

Productivity Improvement Techniques


Technology-based techniques
CAD, CAM, CIM Robotics Laser beam technology Energy technology Group technology Computer graphics Maintenance management Rebuilding old machinery Energy conservation

Employee-based techniques
Financial incentives (individual and group) Fringe benefits Employee promotion, Job enrichment, Job enlargement, Job rotation Worker participation Skill enhancement IEM / SMBS / VIT

24

Productivity Improvement Techniques


Employee-based techniques
Management by objectives Learning curve, communication, working condition improvement Training and education Quality of supervision, recognition, punishment Quality circles, PQ teams Zero defects Time management, Flextime Inventory control MRP Materials management Quality control Material handling systems improvement Material reuse and recycling
IEM / SMBS / VIT 25

Material-based techniques

Productivity Improvement Techniques


Product-based techniques
Value analysis / value engineering Product diversification Product simplification, product standardization Research and development Emulation Advertising and promotion

Task-based techniques
Methods Engineering / work simplification Work measurement Job design Job evaluation Job safety design Human factors engineering Production scheduling
IEM / SMBS / VIT 26

Reference: Industrial Engineering B Kumar Productivity Engineering and Management David Sumanth Industrial Engineering and Management O P Kanna

IEM / SMBS / VIT

27