Tuesday, March 3, 2015

Experience Curve, Continuous Cost Reduction and Breakthrough Cost Reduction through Industrial Engineering

Experience Curve, Continuous Cost Reduction and Breakthrough Cost Reduction or Continuous Productivity Improvement and Breakthrough Productivity Improvement.

I  created the framework for industrial engineering activity by saying it can be applied to technical processes, business processes and managerial processes. If the classification can be made more finer, it is applicable to various processes in that detailed classification. So one question is what is the contribution of industrial engineering in technical process, managerial processes and  business processes. An effort to give an estimate of the contribution is required.

Second question is the experience curve effect. Experience effect is discussed in various subjects like strategic management, operations management and of course in industrial engineering subject the concept of experience effect.

If we are able to reduce the total cost of production by 5% every year, in seven years by the time production doubles (assuming a growth rate of 10% of production every year), the  cost will  come down to 69.8% of the production cost previous to the year in which the cost reduction process started.

Average cost per unit or unit cost in the 7 year, when cumulative production doubles in 7 years with 5% cost reduction in total cost of production per year                         -    0.698   (0.95^7)

I think cost reductions of this order are happening in many industries.

Friday, February 27, 2015

Research and Development Papers on Toyota Production System

Rationalizing the Design of the Toyota Production System:
A Comparison of Two Approaches
J. Won, , D. Cochran, , H. T. Johnson, , S. Bouzekouk, B. Masha

Production System Design Laboratory, Department of Mechanical Engineering
Massachusetts Institute of Technology, Cambridge, Massachusetts, USA, and
School of Business Administration, Portland State University, Portland, Oregon, USA

This paper examines two recent attempts to develop frameworks to explain the Toyota Production System (TPS).
In Decoding the DNA of the Toyota Production System, Spear and Bowen assert that the design, operation and improvement of manufacturing systems can be captured in four basic rules.
In A Decomposition Approach for Manufacturing System Design, Cochran et. al. show how a Manufacturing System Design Decomposition (MSDD) can express the relationships between the design requirements and corresponding solutions within a manufacturing system.
This paper compares and contrasts how each of these approaches incorporates the requirements of successful manufacturing system design.

Decoding the DNA of the Toyota Production System
Steven Spear and H. Kent Bowen
Harvard Business Review, THE SEPTEMBER 1999

Thursday, February 26, 2015

My Comments on Industrial Engineering Issues in Social Media Forums

27 Feb 2015
IE in Supply Chain Activities
IE is applied to technical processes, business processes, and managerial processes.

Supply or purchasing as well as distribution are more of a business processes. IE can be applied to improve them. But under the philosophy or line of thinking that assumes that suppliers are your partners and you should do every thing to improve their processes to improve the whole supply chain IE applied to mfg processes within a company can be applied in Supplier's company also. So IE of mfg also is applicable in SC activity.

I'll like to know how does Industrial Engineering integrate /connect/relate to supply chain and logistics, I understand it better from the quality and operations/production point of view

Linkedin - Industrial Engineering Network Group
Beatrice Khoete
Industrial Engineering Intern


 I strongly advocate that industrial engineering's main focus is productivity improvement of technical processes. The successful improvement of productivity in technical processes can be extended to the business processes and managerial processes. Industrial engineering itself is a managerial process. Industrial engineering went into a decline all over the world and lost its reputation as it lost its focus on technology and has not made any productivity improvements to any technology in the last so many years. It is only in Japan, that some companies led by Toyota at the top implemented IE in technology and became world class. But still IE profession refused to see the success of productivity improvement of tech processes and we have many other discipline people trying to push their discipline ahead under various names citing Japanese success.

Linkedin - Industrial Engineering Network
Towards the Configuration of an Industrial Engineering Education Field in Colombia from the Critical Didactics Pedagogy

Lexie Scirp
Editor at Scientific Research Publishing

Productivity Education - A Proposal for a Framework

International Conference On Applied Economics – ICOAE 2010 523

The paper investigates the views of employers in Cyprus regarding the effect of education on productivity in their organisation.
Information was collected through in-depth interviews with 26 individuals who represented different types of employers (public sector institutions, semi-government institutions, small and large private organisations, and key stakeholders). The majority of respondents did not perceive a strong link between education and productivity, nor did they consider the type of education received to have an impact on productivity, expressing views that are consistent with the screening model. Participants identified the problems which limit the positive effect of education on productivity at their organisations, and offered suggestions on overcoming these problems.

Does education raise productivity, or just reflect it?
Arnaud Chevalier
(University College Dublin & CEE)
Colm Harmon
(University College Dublin & CEPR)
Ian Walker
(University of Warwick, IFS & CEE)
Version 1.01 14 November 2002

This paper attempts to implement, using a variety of UK datasets, a number of
suggestions from the existing literature for empirically discriminating between the
human capital and signalling/screening explanations of the observed correlation
between education and wages. Most of these tests are based on the idea that
screening is more important in some sectors than others. Although we have
reservations about the power of the tests used we find little support for
signalling/screening ideas in these tests. Finally, we exploit a little used distinction
between the two theories, based on the response of individuals to a change in the
education incentives for some people of the education distribution, to provide a more
definitive test and find that the data in the UK appears to strongly support the human
capital explanation.

My idea is to present a model having three components

Productivity knowledge

Productivity attitude (Favorable attitude towards productivity improvement process and productivity improvement)

Productivity behavior (actions that implement productivity improving practices, that develop productivity improvement processes, actions that analyse productivity of resources using current methods of analysis, actions that develop new methods of analysis, actions that conduct training in productivity management, actions that celebrate productivity improvements, etc)

Productivity education has to be productivity learning. The learning has to result in change of behavior. It has to result in new behavior that enhances productivity. But negative attitudes toward productivity will become barriers. Hence productivity education needs to focus on attitude development. So productivity knowledge must have a component that provides inputs that help in formation of favorable attitudes about  productivity improvement. I need to develop my thoughts further and publish it as a paper in an industrial engineering journal. I am posting it here to get some opinions and comments.

Tuesday, February 24, 2015

Graduate Certificate in Productivity Improvement - Oakland University

Department of Industrial and Systems Engineering
502 Engineering Center  (map)
(248) 370-2989 • Fax (248) 370-2699

Coordinator for the year 2014 -2015
Robert Van Til
502B Engineering Center
(248) 370-2211

Program Description:

The Graduate Certificate in Productivity Improvement program is designed for any engineer (mechanical, electrical, civil, computer, etc.) who wants access to the productivity tools needed for their current job, or to upgrade their skills to help get a promotion or a better job.

Admission terms and application deadlines

Before an applicant’s file can be reviewed for full program admission, all application documents must be received in Graduate Study and Lifelong Learning by the semester deadlines listed below. Incomplete applications will not be sent to departments for admission review.

July 15 for fall semester
November 15 for winter semester
March 15 for summer semester
International applicants
Application requirements

To be considered for graduate admission, applicants must submit all Graduate Application Requirements and additional department requirements by the published application deadlines:

Graduate Application Requirements

Additional department application requirements
B.S. in any engineering discipline. Applicants from other disciplines such as computer science, engineering technology, information technology and software engineering, would be considered after successfully completing appropriate prerequisite courses.

Grade point average of 3.0 or better.
Official Graduate Record Examination (GRE) results are required for those international applicants whose undergraduate cumulative grade point average is less than 3.0 on a 0.0 - 4.0 scale or their international institution is not accredited by a regional accrediting agency of the USA. The Department of Industrial and Systems Engineering may choose to waive the GRE requirement if at least one of the following special circumstances is met:
Applicant’s last degree is from a U.S. institution accredited by a regional accrediting agency.
Applicant’s overall GPA from last degree is at least 3.0.
Applicant has worked in the USA for at least two years in the engineering profession.

Certificate requirements

To fulfill the certificate requirements, a student must

complete at least 16 credits of graduate-level work as described below under Course requirements,
earn a cumulative GPA of at least 3.0 in courses applied toward the certificate, satisfy all requirements concerning academic progress

Course requirements

a. Required courses (12 credits)

Students are required to select at least three courses from:

ISE 510 - Supply Chain Modeling and Analysis (4 credits)
ISE 517 - Statistical Methods in Engineering (4 credits)
*  ISE 530 - Engineering Operations Research - Stochastic Models (4 credits)
*  ISE 569 - Computer Simulation of Discrete Event Systems (4 credits)
*  ISE 580 - E-Commerce and ERP (4 credits)
ISE 581 - Lean Principles and Application (4 credits)
*  ISE 583 - Production Systems and Workflow Analysis (4 credits)
*  ISE 585 - Statistical Quality Analysis (4 credits)
*  ISE 587 - Foundations of Systems Engineering I (4 credits)
ISE 680 - Engineering Decision Analysis (4 credits)
ISE 684 - Computer-Integrated Manufacturing Systems (4 credits)

b. Elective course (4 credits)

Select any one 500-level or higher ISE course, including any additional course from the list of required courses above (except ISE 501, 502, 503, 594, 690, 691, 794 and 795).


Sunday, February 22, 2015

Critical Success Factors for Effective JIT Implementation Bibliography

A Method for Identifying Critical Success Factors of JIT Implementation in Different Circumstances (Case Study: Appliance Industry)

Hassan Farsijani, Yasser Sobhani Fard, Maryam Akhavan Kharazian, Mohsen Shafiei Nikabadi
Associate Professor, Shahid Beheshti University, Tehran, Iran
Assistant Professor, University of Imam Sadegh, Tehran, Iran
University of Isfahan, Isfahan, Iran
Lecturer of Business Management Department, Semnan University, Semnan, Iran

International Journal of Supply Chain Management Systems

Monday, January 19, 2015

Engineering Branches and Related Industrial Engineering Articles

Industrial Engineering is redesign of products and processes to increase efficiency efficiency, and productivity and reduce cost. It is applicable in all branches of engineering. Industrial engineering techniques have to taught in all branches of engineering in diploma as well as degree courses. Industrial engineering is used in various branches of engineering in unplanned or informal or exploratory ways. A formal policy of providing specialization to industrial engineering students in various branches of engineering needs to be implemented to produce industrial engineers with skills to do effective jobs in specific branches and also to motivate managers in industries related to that branch of engineering to employ industrial engineers with specialization in that branch.

Agriculture Engineering

An Industrial Engineer Looks at Agriculture

Peter M. Strang
The Journal of Land & Public Utility Economics
Vol. 10, No. 3 (Aug., 1934), pp. 268-274
Published by: University of Wisconsin Press
Article Stable URL: http://www.jstor.org/stable/3139172

Design Process of a Low Cost Tractor

Christina Popa, and Dorina Ionescu
Christina. Popa is with Department of Mechanical and Industrial
Engineering, Technology University of Johannesburg, Doornfontein,
Johannesburg 2028
International Journal of Mining, Metallurgy & Mechanical Engineering (IJMMME) Volume 2, Issue 2 (2014) ISSN 2320–4060 (Online)



Enzymatic corn wet milling: engineering process and cost model

Edna C Ramírez (1), David B Johnston, Andrew J McAloon and Vijay Singh
1 United States Department of Agriculture, Agricultural Research Services, Eastern Regional Research Center, 600 East Mermaid Lane, Wyndmoor, PA 19038, USA
Biotechnology for Biofuels 2009, 2:2  doi:10.1186/1754-6834-2-2
Published: 21 January 2009

Implementing Cost Reduction Strategies for Human Antibody (HuMab) Manufacturing Processes


Chemical Engineering

Optimization Methods for Engineers

N.V.S. Raju

Process Intensification - Optimization of  capital, energy, environmental and safety benefits by radical reduction in the physical size of the plant. 

Process intensification in the chemical process industry is very recent subject in the field of chemical engineering. The concept is hardly a decade old. The aim of intensification is to optimize capital, energy, environmental and safety benefits by radical reduction in the physical size of the plant.

There is some discussion as to the meaning of dramatic improvement,  Prof. Colin Ramshaw, of University of New Castle, a pioneer of this concept, talks of 100 times reduction in equipment  volume, however many would be happy with volume decrease by half or more. But Prof Ramshaw’s assertion is  a very achievable target  for some operations.

Civil Engineering

New guidance to reduce cost of construction projects

The government has launched draft guidance to help embed best practice in the procurement of public sector construction projects, Minister for Civil Society Nick Hurd has announced today.

The Government Construction Strategy sets out to achieve savings in construction procurement of up to 20% by streamlining processes. In doing so, the government has taken the lead by implementing innovative procurement models such as Two Stage Open Book, Integrated Project Insurance and Cost Led Procurement. These models offer considerable potential to reduce the cost of public sector construction projects, as well as contributing to reduced risk, greater innovation and improved relationships throughout the supply chain.
From:Cabinet Office, Nick Hurd MP and Efficiency and Reform Group First published:29 January 2014

Cost Control, Monitoring and Accounting for Construction Contractors


Computer Science and Engineering, Information Technology

Dynamic Value Engineering Method Optimizing the Risk on Real Time Operating System

Prashant Kumar Patra, Padma Lochan Pradhan
The value engineering is the high utilization of System Product (i.e. Processor, Memory & Encryption key), Services, Business and Resources at minimal cost.
 The high end operating system providing highest services at optimal cost & time. The value engineering provides the maximum performance, accountability, reliability, integrity and availability of processor, memory, encryption key and other inter dependency sub-components.
Indonesian Journal of Electrical Engineering and Informatics (IJEEI)

Value-engineering change proposals for the consolidated automated support system (CASS):
Smith, R.S. ; Lockheed Martin, Orlando, FL, USA ; Vahey, W.
These changes have the potential to save more than $140 million in CASS program life-cycle costs as a result of lower unit costs, greater reliability, and reduced logistic support costs. By increasing system performance and saving additional space for future technology insertion, these upgrades will enable CASS to test a wide range of weapon system technology well into the next century.

Value Addition of Computer Work Station Manufactured in Furniture Industry by using
Value Engineering Concept
International Journal of Engineering Trends and Technology (IJETT) - Volume4 Issue7- July 2013
ISSN: 2231-5381 http://www.ijettjournal.org Page 2846

Electrical Engineering

Electronics Engineering

Radar Value Engineering

Environmental Engineering

Instrumentation Engineering

Mechanical Engineering
  Automobile Engineering
      Industrial Engineering and Production Technology Improvement in Toyota
  Machine Tool Engineering
  Heat Engines - IC Engines
  Hydraulic Machines

Metallurgical Engineering

Telecommunications Engineering

Textile Engineering