Wednesday, December 26, 2012


 Review Article


About Review Knols on Articles in Maynard's Handbook

This article is a knol in the tradition of review proposed by knol.
After reading a knol you can present your view in a review on the knol.
I am trying to summarise the article in the Maynard's handbook and simultaneously express my views regarding the topic. I advocate certain changes in the focus and practice of industrial engineering and I wish to bring out these ideas of mine in these review knols.
These knols will be continuously revised by me in response to comments made by visitors.
Review knol on
(Maynard's Industrial Engineering Handbook)

Louis A. Martin-Vega
National Science Foundation, Arlington,Virginia
Louis A. Martin-Vega, Ph.D., P.E., is currently the director of the Division of Design,Manufacture, and Industrial Innovation at the National Science Foundation in Arlington,Virginia.

He is on leave from Lehigh University. He is a professor and former chairman of the Department of Industrial and Manufacturing Systems Engineering. Prior to joining Lehigh, he held the Lockheed Professorship at Florida Institute of Technology. Martin-Vega’s research and consulting interests are in the areas of production and manufacturing  systems. 




The purpose of industrial engineering is human effort engineering and systems efficiency engineering (Narayana Rao).

Historical events in industrial engineering are covered in detail in Emerson and Naehring,  Saunders, Shultz , Nadler , Pritsker, and Turner et al.  Since the history of industrial engineering is strongly linked to the history of manufacturing, Hopp and Spearman  is a  particularly interesting reference that  has relevant exposition of the history of American manufacturing.

Early Origins  of Engineering

There are centuries-old examples of early engineering practice and accomplishments, such as the Pyramids, the Great Wall of China, and the Roman construction projects but, it was not until the eighteenth century that the first engineering schools appeared in France.The need for greater efficiency in the design and analysis of bridges, roads, and buildings resulted in principles of early engineering concerned primarily with these topics being taught first in military academies (military engineering). The application of these principles to nonmilitary or civilian endeavors led to the term civil engineering. Interrelated advancements in the fields of physics and mathematics laid the groundwork for the development and application of mechanical principles.The need for improvements in the design and analysis of materials and devices such as pumps and engines resulted in the emergence of mechanical engineering as a distinct field in the early nineteenth century. Similar circumstances, albeit for different technologies, can be ascribed to the emergence and development of electrical engineering and chemical engineering. 
As has been the case with all these fields, industrial engineering  also developed initially from empirical evidence and understanding and then from research to develop a more scientific base.

Empirical Roots and Early Thinkers

The empirical roots of the profession date back to the Industrial Revolution, which began in England during the mid-eighteenth century.
The concept of a production system, which lies at the core of modern industrial engineering practice and research, had its genesis in the factories created as a result of innovations in industrial revolution.

The concepts presented by Adam Smith in his treatise The Wealth of Nations also lie at the foundation of what eventually became the theory and practice of industrial engineering. His writings on concepts such as the division of labor and the “invisible hand” of capitalism served to motivate many of the technological innovators of the Industrial Revolution to establish and implement factory systems. Examples of these developments include Arkwright’s implementation of management control systems to regulate production and the output of factory workers, and the well-organized factory that Watt, together with an associate, Matthew Boulton, built to produce steam engines.

An early contributor to concepts that eventually became associated with industrial engineering was Charles Babbage. The findings that he made as a result of visits to factories in England and the United States in the early 1800s were documented in his book entitled On the Economy of Machinery and Manufacturers. The book includes subjects such as the time required for learning a particular task, the effects of subdividing tasks into smaller and less detailed elements, the time and cost savings associated with changing from one task to another, and the advantages to be gained by repetitive tasks. In his classic example on the manufacture of straight pins, Babbage extends the work of Adam Smith on the division of labor by showing that money could be saved by assigning lesser-paid workers (in those days women and children) to lesser-skilled operations and restricting the higher-skilled, higher paid workers to only those operations requiring higher skill levels. Babbage also discusses notions related to wage payments, issues related to present-day profit sharing plans, and even ideas associated with the organization of labor and labor relations

Babbage’s ideas got further support by the efforts of Eli Whitney and Simeon North’s innovation of interchangeable parts. Under Whitney’s system, the individual parts were mass-produced to tolerances tight enough to enable their use in any finished product. The division of labor called for by Adam Smith could now be carried out to an extent never before achievable, with individual workers producing single parts rather than completed products. The result was a significant reduction in the need for specialized skills on the part of the workers—a result that eventually led to the industrial environment, which became the object of study of Frederick W. Taylor, the person who was given the honor being name founder of industrial engineering or father of industrial engineering.

Pioneers of Industrial Engineering

Frederick Taylor, Frank Gilbreth and Harrington Emerson have to be given the principal credit for giving birth to industrial engineering discipline. Taylor and Gilbreth worked in the area of human effort engineering that promotes efficiency in production systems. Emerson specifically worked on the efficiency dimension of systems.

Taylor and Scientific Management

One cannot presume to be well versed in the origins of industrial engineering without reading Taylor’s  books: Shop Management and The Principles of Scientific Management. An engineer to the core, he earned a degree in mechanical engineering from Stevens Institute of Technology and developed several inventions for which he received patents. His engineering accomplishments would have been sufficient to guarantee him a place in history. His contributions to management that resulted in a set of principles and concepts  which were considered by Drucker to be “possibly the most powerful as well as lasting contribution America has made to Western thought since the Federalist Papers.”
The core of Taylor’s system consisted of breaking down the production process into its component parts and improving the efficiency of each. He honed manual tasks to maximum efficiency by examining each component separately and eliminating all false, slow, and useless movements. Mechanical work was accelerated through the use of jigs, fixtures, and other devices—many invented by Taylor himself. In essence, Taylor was trying to do for work units what Whitney had done for material units: standardize them and make them interchangeable.
Improvement of work efficiency under the Taylor system was based on the analysis and improvement of work methods, reduction of the time required to carry out the work, and the development of work standards. With an abiding faith in the scientific method, Taylor’s contribution to the development of “time study” was his way of seeking the same level of predictability and precision for manual tasks that he had achieved with his formulas for metal cutting.
Taylor’s interest in what today we classify as the area of work measurement was also motivated by the information that studies of this nature could supply for planning activities. In this sense, his work laid the foundation for a broader “science of planning”: a science totally empirical in nature but one that he was able to demonstrate could significantly improve productivity.
To Taylor, scientific management was a philosophy based not only on the scientific study of work but also on the scientific selection, education, and development of workers. His classic experiments in shoveling coal, which he initiated at the Bethlehem Steel Corporation in 1898, not only resulted in development of standards and methods for carrying out this task, but also led to the creation of tool and storage rooms as service departments, the development of inventory and ordering systems, the creation of personnel departments for worker selection, the creation of training departments to instruct workers in the standard methods, recognition of the importance of the layout of manufacturing facilities to ensure minimum movement of people and materials, the creation of departments for organizing and planning production, and the development of incentive payment systems to reward those workers able to exceed standard outputs. Any doubt about Taylor’s impact on the birth and development of industrial engineering should be erased by simply correlating the previously described functions with many of the fields of work and topics that continue to play a major role in the practice of the profession and its educational content at the university level.

Taylor contributed technological progress, a concept used in Economic Theory of Growth to refer to increase in output from the same amount of resources. Taylor's human effort engineering resulted in the increased output from same manpower resources. 

Frank Gilbreth

Frank Gilbreth’s application of the scientific method to the laying of bricks produced results that were as revolutionary as those of Taylor’s shoveling experiment. He  extended the concepts of scientific management to the identification, analysis, and measurement of fundamental motions involved in performing work. By applying the motion-picture camera to the task of analyzing motions he was  able to categorize the elements of human motions into 18 basic elements or therbligs. This development marked a distinct step forward in the analysis of human work, for the first time permitting analysts to design jobs with knowledge of the time required to perform the job. In many respects these developments also marked the beginning of the much broader field of human factors or ergonomics.

Lillian Gilbreth, wife of Frank Gilbreth,  provided significant insight and contributions to the human issues associated with their studies. Lillian’s book, The Psychology of Management (based on her doctoral thesis in psychology at Brown University), advanced the premise that because of its emphasis on scientific selection and training, scientific management offered ample opportunity for individual development, while traditional management stifled such development by concentrating power in a central figure. Known as the “first lady of engineering,” she was the first woman to be elected to the National Academy of Engineering and is generally credited with bringing to the industrial engineering profession a concern for human welfare and human relations that was not present in the work of many pioneers of the scientific management movement.

Harrington Emerson - The efficiency focus

Emerson became a champion of efficiency independent of Taylor and summarized his approach in his book, the Twelve Principles of Efficiency.

Emerson, who had reorganized the workshops of the Santa Fe Railroad, testified during the hearings of the Interstate Commerce Commission concerning a proposed railroad rate hike in 1910 to 1911 that scientific management could save “a million dollars a day.” Because he was the only “efficiency engineer” with firsthand experience in the railroad industry, his statement carried enormous weight and served to emblazon scientific management on the national consciousness.

Later in his career he became particularly interested in selection and training of employees and is also credited with originating the term dispatching in reference to shop floor control, a phrase that undoubtedly derives from his railroad experience.

Efficiency Society organized by Emerson later merged with Taylor Society to form Society for Advancement of Management.
To be developed further


Related Knols

Original post in Knol
Knol No. 538

Saturday, December 15, 2012

Information Technology Systems Cost Reduction - Theory and Research Papers

Reducing the Cost of IT operations Is Automation always the Answer?

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

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. 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.

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
    Nadler's chapter in Salvendy's Handbook, 1992 is quoted there.

    Strategic Themes - How are they used and why?   
    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
    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

    Systemic Practice of Industrial Engineering

    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
     Interesting paper published in 2002 Cost Measurement and Analysis: A Necessary Part of Industrial Engineering Education and Training. Read the paper online from:
     Summary at:
     Cost Measurment: Tools and Methodology for Cost Effectiveness Analysis -1972
     Rand Organization Paper
      Cost forecasts for various technology power plants up to 2050 - NREL Report

      Total Cost Management Movement in India

      Modelling cost management maturity  - CII model

      Total Cost Industrial Engineering

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
       Impact of Management Practices on Total Factor Productivity - Eritrean Fishing Companies

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
     Industrial engineers can take some steps to involve all employees in improvement activities. See citizen's science initiatives.

     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).
     A Study of the Tovota Production System From an Industrial Engineering Viewpoint
     by Shigeo Shingo - Summary

5. Current Concerns of Boards in the area of Efficiency

    Boards Look for Efficiency With IT - November 2011
    IT Cost Reduction Initiatives:
    Cost Reduction in Imaging and Output infrastructure
    IT Cost Reduction - Accenture insights  - 2012
    Article for each step recommended in Accenture Report
    Information Technology Systems Cost Reduction
    Reducing the waste in the testing cycle
    Federal Marketplace for Data Center Capacity - Webinar Video

    Lean IT: Enabling and Sustaining Your Lean Transformation
    Google book

    Lean Software Development and IT Enabled Services - Collection of Books and Articles - NRao

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  - Important Paper
   Industrial Engineering and Sustainability - Bibliography
   Importance of Industrial Ecology subject in Engineering Education (IE assignment)
   Sustainability and Resource Productivity - McKinsey Page

   The Emerging Roles of Industrial Engineers in Preventing Pollution and Creating a Sustainable Environment


   A Guide to Integrating Value Engineering, Life-Cycle
   Costing, and Sustainable Development in FEDERAL FACILITIES, USA - 2001

8. Scientific Management Theory


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

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

    Universiteit Stellenbosch University - South Africa

   Strategic Productivity by Marketable Technology

   Thesis on Strategic Indutrial Engineering Philosophy P.S. Leonard 2004

10. Review of Current Research in Industrial Engineering Related to Strategic 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
       Interoperability cost analysis of US automotive sector

           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

A Strategic Perspective on Value - 2009 - Rockwell Automation
Value of a supplier services

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

$2 Trillion Waste In IT Systems? What are we doing?

The IT Revolution estimates that currently 20% of IT spend of $10 trillion can be the waste. This figure comes to $2 trillion. What are we doing?

Already IT spend analysis is a board room issue.

Leading consultants like Accenture are coming out with reports on IT cost control.

Productivity improvement and cost/waste reduction were taken up for investigation and advocacy by authors like Popendiecks.

Industrial engineers are into action. IIE has a blog IE in IT.

Collection of Articles/Reports dealing with IT Cost Reduction

    Boards Look for Efficiency With IT - November 2011
    IT Cost Reduction Initiatives:
    Cost Reduction in Imaging and Output infrastructure
    IT Cost Reduction - Accenture insights  - 2012
    Collection of articles on each opportunity mentioned in the Accenture article
    Information Technology Systems Cost Reduction

    Reducing the waste in the testing cycle
    Federal Marketplace for Data Center Capacity - Webinar Video

    Lean IT: Enabling and Sustaining Your Lean Transformation
    Google book

    Lean Software Development and IT Enabled Services - Collection of Books and Articles - NRao

Incorporating Deming, Goldratta Ideas in Computer Science - A Presentation
YouTube Video


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

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

A coordination theory approach to process description and redesign
Kevin Crowston and Charles Osborn
CCS WP #204 SWP # 4029
July 1998

Information Systems - Industrial Engineering  - 4 year course
Binus University

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.

Thursday, November 29, 2012

Metal Working - Cost Reduction Opportunities

Complementarity and Cost Reduction - 1997 paper on Automobile Industry

Cost Effective Machining of Brass, Copper and Its Alloys

Cost Reduction of a Chassis and Cover by switching to Die Casting - Alexander Machine and Tool Company Cases - Cost reduction to $210 per piece frm $300

Emerging Titanium Cost Reduction Technologies

Impression Die Casting Projects - Cost Reduction Achievements - There is crank shaft case also.

Metal Injection Molding - Cost Reduction opportunities for small components with more than 10,000 parts per month and above

Ready for Six Sigma - 2006

Reduction in machining cost of crank shaft die by using a different tool

Setup Time Reduction in Machine Shop

Shell Molding Process produces cost savings

Single piece design instead of 5 items - Forging

The Cost of Machine Tool Ownership

Tips on designing for cost effective machines parts

Use  Cold forming in place of machine - Reduce cost

Use continuous casting instead of machining

Use hard turning instead of grinding - Feb 2003

5-axis machining will reduce fixture costs and setup costs

Latest Trends in Machining - Full Book - Drishtikon Book

Machining cost reduction - Google Search Results

Operating A CNC Powered Machine Shop: Roadmap for Efficiency

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.

Friday, November 23, 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

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

The Philosophy of Manufactures: Or an Exposition of the Scientific, Moral,  and Commercial Economy
Published 1835
Andrew Ure, Glasgow, Great Britain

John Stuart Mill Economics

On What depends the degree of productiveness of productive agents

Of Production on a large, and production on a small scale

Saturday, November 3, 2012

Work Station Design - Introduction

The Design of Workstations

In any work setting, whether blue-collar or white-collar, a well-designed workstation contributes to productivity and the quality of the products and takes care of  the health and well-being of the workers,  Conversely, the poorly designed workstation will result in low productivity, quality problems and  is likely to cause or contribute to the development of health complaints or chronic occupational diseases.

Industrial engineers with the objective of designing integrated systems of machines, material and men have to take the activity of work systems design as fundamental activity and should not leave it to   production engineers, supervisors and managers who will be aware of the theories and principles related to integrated approach to workstation design. 

There is an international trend with respect to industrial work to simultaneously achieve cost, quality, productivity, delivery precision along with safety and health of workers. Thus, the environment is conducive for systems design that integrates multiple perspectives.

The quality of the end result of the work station design process relies on engineering knowledge that assures productivity, cost and quality and human effort design knowledge that converts ergonomic knowledge into work station engineering solutions.

Design considerations

Workstations are meant for work. It must be recognized that the point of departure in the workstation design process is that a certain production goal has to be achieved. The designer of production equipment -often a specialist in the relevant production engineering and related equipment design develops a vision of the workplace, and starts to implement that vision. The design process is iterative: from a rough first attempt, the solutions become gradually more and more refined. It is essential that wherever possible, human effort engineering aspects be taken into account in each iteration as the work progresses.

It should be noted that human effort design of workstations is closely related to  assessment of workstations from human effort engineering point of view. The assessment structure to be followed will be similar to the cases where the workstation or equipment already exists.

In the design process, there is a need for a structure which ensures that all relevant aspects be considered. The traditional way to handle this is to use checklists containing a series of those variables which should be taken into account. However, general purpose checklists tend to be voluminous and difficult to use, since in a particular design situation only a fraction of the checklist may be relevant. Furthermore, in a practical design situation, some variables stand out as being more important than others. A methodology to consider these factors jointly in a design situation is required. Such a methodology will be proposed in this article.

Recommendations for workstation design must be based on a relevant set of demands. It should be noted that it is in general not enough to take into account threshold limit values for individual variables. A recognized combined goal of productivity and conservation of health makes it necessary to be more ambitious than in a traditional design situation. In particular, the question of musculoskeletal complaints is a major aspect in many industrial situations, although this category of problems is by no means limited to the industrial environment.

A Workstation Design Process

Steps in the process

In the workstation design and implementation process, there is always an initial need to inform users and to organize the project so as to allow for full user participation and in order to increase the chance of full employee acceptance of the final result. A treatment of this goal is not within the scope of the present treatise, which concentrates on the problem of arriving at an optimal solution for the physical design of the workstation, but the design process nonetheless allows the integration of such a goal. In this process, the following steps should always be considered:

1. collection of user-specified demands
2. prioritizing of demands
3. transfer of demands into (a) technical specifications and (b) specifications in user terms
4. iterative development of the workstation’s physical layout
5. physical implementation
6. trial period of production
7. full production
8. evaluation and identification of  problems.

Collection of user-specified demands

It is essential to identify the user of the workplace as any member of the production organization who may be able to contribute qualified views on its design. Users may include, for instance, the workers, the supervisors, the production planners and production engineers, as well as the safety steward. Experience shows clearly that these actors all have their unique knowledge which should be made use of in the process.

The collection of the user-specified demands should meet a number of criteria:

1.   Openness. There should be no filter applied in the initial stage of the process. All points of view should be noted without voiced criticism.
2.   Non-discrimination. Viewpoints from every category should be treated equally at this stage of the process. Special consideration should be given to the fact that some persons may be more outspoken than others, and that there is a risk that they may silence some of the other actors.
3.  Development through dialogue. There should be an opportunity to adjust and develop the demands through a dialogue between participants of different backgrounds. Prioritizing should be addressed as part of the process.
4.   Versatility. The process of collection of user-specified demands should be reasonably economical and not require the involvement of specialist consultants or extensive time demands on the part of the participants.

The above set of criteria may be met by using a methodology based on quality function deployment (QFD) according to Sullivan (1986). Here, the user demands may be collected in a session where a mixed group of actors (not more than eight to ten people) is present. All participants are given a pad of removable self-sticking notes. They are asked to write down all workplace demands which they find relevant, each one on a separate slip of paper. Aspects relating to work environment and safety, productivity and quality should be covered. This activity may continue for as long as found necessary, typically ten to fifteen minutes. After this session, one after the other of the participants is asked to read out his or her demands and to stick the notes on a board in the room where everyone in the group can see them. The demands are grouped into natural categories such as lighting, lifting aids, production equipment, reaching requirements and flexibility demands. After the completion of the round, the group is given the opportunity to discuss and to comment on the set of demands, one category at a time, with respect to relevance and priority.

The set of user-specified demands collected in a process such as the one described in the above forms one of the bases for the development of the demand specification. Additional information in the process may be produced by other categories of actors, for example, product designers, quality engineers, or economists; however, it is vital to realize the potential contribution that the users can make in this context.

Prioritizing and demand specification

With respect to the specification process, it is essential that the different types of demands be given consideration according to their respective importance; otherwise, all aspects that have been taken into account will have to be considered in parallel, which may tend to make the design situation complex and difficult to handle. This is why checklists, which need to be elaborate if they are to serve the purpose, tend to be difficult to manage in a particular design situation.

It may be difficult to devise a priority scheme which serves all types of workstations equally well. However, on the assumption that manual handling of materials, tools or products is an essential aspect of the work to be carried out in the workstation, there is a high probability that aspects associated with musculoskeletal load will be at the top of the priority list. The validity of this assumption may be checked in the user demand collection stage of the process. Relevant user demands may be, for instance, associated with muscular strain and fatigue, reaching, seeing, or ease of manipulation.

It is essential to realize that it may not be possible to transform all user-specified demands into technical demand specifications. Although such demands may relate to more subtle aspects such as comfort, they may nevertheless be of high relevance and should be considered in the process.

Principles of Motion Economy Considerations

Principles of Ease of Access and Safety Considerations

Ergonomic Considerations - Principles of Occupational Health and Comfort Considerations

Engineering Considerations

Ergonomic Considerations - Musculoskeletal load variables

In line with the above reasoning, we shall here apply the view that there is a set of basic ergonomic variables relating to musculoskeletal load which need to be taken into account as a priority in the design process, in order to eliminate the risk of work-related musculosketal disorders (WRMDs). This type of disorder is a pain syndrome, localized in the musculoskeletal system, which develops over long periods of time as a result of repeated stresses on a particular body part (Putz-Anderson 1988). The essential variables are (e.g., Corlett 1988):

· muscular force demand
· working posture demand
· time demand.

With respect to muscular force, criteria setting may be based on a combination of biomechanical, physiological and psychological factors. This is a variable that is operationalized through measurement of output force demands, in terms of handled mass or required force for, say, the operation of handles. Also, peak loads in connection with highly dynamic work may have to be taken into account.

Working posture demands may be evaluated by mapping (a) situations where the joint structures are stretched beyond the natural range of movement, and (b) certain particularly awkward situations, such as kneeling, twisting, or stooped postures, or work with the hand held above shoulder level.

Time demands may be evaluated on the basis of mapping (a) short-cycle, repetitive work, and (b) static work. It should be noted that static work evaluation may not exclusively concern maintaining a working posture or producing a constant output force over lengthy periods of time; from the point of view of the stabilizing muscles, particularly in the shoulder joint, seemingly dynamic work may have a static character. It may thus be necessary to consider lengthy periods of joint mobilization.

The acceptability of a situation is of course based in practice on the demands on the part of the body that is under the highest strain.

It is important to note that these variables should not be considered one at a time but jointly. For instance, high force demands may be acceptable if they occur only occasionally; lifting the arm above shoulder level once in a while is not normally a risk factor. But combinations among such basic variables must be considered. This tends to make criteria setting difficult and involved.

In the Revised NIOSH equation for the design and evaluation of manual handling tasks (Waters et al. 1993), this problem is addressed by devising an equation for recommended weight limits which takes into account the following mediating factors: horizontal distance, vertical lifting height, lifting asymmetry, handle coupling and lifting frequency. In this way, the 23-kilogram acceptable load limit based on biomechanical, physiological and psychological criteria under ideal conditions, may be modified substantially upon taking into account the specifics of the working situation. The NIOSH equation provides a base for evaluation of work and workplaces involving lifting tasks. However, there are severe limitations as to the usability of the NIOSH equation: for instance, only two-handed lifts may be analysed; scientific evidence for analysis of one-handed lifts is still inconclusive. This illustrates the problem of applying scientific evidence exclusively as a basis for work and workplace design: in practice, scientific evidence must be merged with educated views of persons who have direct or indirect experience of the type of work considered.

Adoptation of


Ergonomic Recommendations for Workstation Design - Liberty Mutual Insurance Company-2004
Search on Google for the paper.  has the references of many papers on worksystems design and one can request for 5 reprints from the list.

Ergonomic Assessment of Workstation Design in Automotive Industry
2010 - UMP Malaysia paper

Mobile workstations and Mobile workstation carts

Office Computer Workstation Design - Ergotron

Industrial Ergonomics: A Systematic Ergonomics Approach
Biman Das and Arjit K Sengupta
Applied Ergonomics, vol 127, no.3, Pp. 157-163
Summarized by Shenbaga Murty, PGDIE 2012-14

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

Patent list of Edison in the area of cement 

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

Friday, October 19, 2012

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

Maintenance System Industrial Engineering - Online Book

Information Systems Industrial Engineering - Online Book

Financial System Industrial Engineering - Online Book

Marketing System Industrial Engineering - Online Book

Supply Chain Industrial Engineering - Online Book

Manufacturing System Industrial Engineering - Online Book

Total Cost Industrial Engineering - Industrial Engineering of Enterprise Cost

Quality System Industrial Engineering


IE for Different Technologies

Nano Technology Industrial Engineering


IE in Different Sectors of Industries

Health Care - Hospital Industrial Engineering


Wednesday, October 17, 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?

Value engineering of public transport projects

Idaho Transport Department - Value Engineering Guidelines

Human Effort Engineering in Projects

Efficient Use of Personnel in a Project

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

Efficient Use of Construction Resources

Equipment Efficiency


Conceptual Construction Equipment Utilization Plan

Equipment Cost - Presentation

Labor, Material and Equipment Utilization in Construction Projects,_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

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

Technological Trends in Cement Industry - Energy and Environmental impact

Seminar on Energy Conservation in Cement Industry 1994

Tuesday, October 16, 2012

Nano Technology Industrial Engineering - Collected Reading

Papers Presented in IIE Conferences

Introducing Nano and Bio Manufacturing Coursework within Industrial Engineering Curriculum
Desai, Salil; Pai, Devdas; Sankar, Jag. IIE Annual Conference. Proceedings (2008): 493-498.

 Application of Femtosecond Laser in Micro/Nano Machining
Devarajan, Sasikumar; Chang, Zenghu; Lei, Shuting. IIE Annual Conference. Proceedings (2006): 1-6.

 Setting the Optimal Parameters for a Nano-Particle Milling Process
Hou, Tung-Hsu (Tony); Su, Chi-Hung; Chang, Hsu-Yang; Chan, Watson; Liu, Wan-Lin. IIE Annual Conference. Proceedings (2005): 1-6.

 A Hybrid Segmentation Method for Nano-particle Characterization
Ker, Jun-Ing; Liu, Xinchuan; Wu, Shi-Je; Erinjeri, Jinson J. IIE Annual Conference. Proceedings (2004): 1-5.

 High-bandwidth Nano-Positioning Modules for High-throughput Micro/Nano Manufacturing
Polit, Sebastian; Dong, Jingyan. IIE Annual Conference. Proceedings (2009): 1603-1608.

 Enhancement of Mechanical Properties in Polymer Composites Using Reinforced Nano-structured Materials
McGhee, Elaina; Desai, Salil; Chandrasekar, S; Compton, W D. IIE Annual Conference. Proceedings (2005): 1-5.

 Understanding Microdroplet Evaporation towards Scalable Micro/Nano Fabrication
Desai, Salil; Esho, Taye; Kaware, Ravindra. IIE Annual Conference. Proceedings (2010): 1-6.

 Material Characterization of Nano-Structured Al-Ni Intermetallic Composites using Residual Stresses
Rajamani, Karthik Kumar; Rivero, Iris V; Pantoya, Michelle. IIE Annual Conference. Proceedings (2005): 1-4.

 A Microchemical Nanofactory for the Production of Dendritic Polymers
Paul, B K; Abhinkar, B; Tseng, T; Liu, S-H; Chang, C-H; et al. IIE Annual Conference. Proceedings (2006): 1-6.

 Grand Challenges for Industrial Engineering in the 21st Century
Askin, Ronald G. IIE Annual Conference. Proceedings (2009): 1-6.

 A Design-Based Nanotechnology Course for Undergraduate Industrial Engineering Students
Jaksic, Nebojsa I. IIE Annual Conference. Proceedings (2006): 1-6.

 Nanomanufacturing under Lean and Green Principles
Naidu, Sasikumar; Sawhney, Rapinder; Dhingra, Rajive; Knickerbocker, Cherie. IIE Annual Conference. Proceedings (2010): 1-6.

 Experimental Optimization of Nanomagnetic Properties
Cedeño-Mattei, Yarilyn; Perales-Pérez, Óscar; Sánchez-Peña, Matilde L; Cabrera-Ríos, Mauricio; Lara-Rodríguez, Yareni. IIE Annual Conference. Proceedings (2009): 1489-1493.

 Periodic Loci Surface Reconstruction in Nano Material Design
Wang, Yan. IIE Annual Conference. Proceedings (2007): 405-410.

 Computing Molecular Motions with Haptics for Computer-Aided Molecular Design (CAMD)
Lai-Yuen, Susana K; Lee, Yuan-Shin. IIE Annual Conference. Proceedings (2006): 1-6.

 Manipulation and Assembly of Micro Devices
Cecil, J; Vasquez, D; Powell, D. IIE Annual Conference. Proceedings (2004): 1-6.

Multi-material Micro-scale Robotic Deposition
Mukhopadhyay, Deepkishore; Bristow, Douglas A; Ferreira, Placid M. IIE Annual Conference. Proceedings (2005): 1-6.

 Corrosion studies on the plasma-sprayed nanostructured titanium dioxide coatings
Ahmad, Z; Ahsan, M. Anti - Corrosion Methods and Materials56. 4 (2009): 187-195.

Alp, Neslihan; Jones, Frank; Hiestand, James; Bailey, Robert. IIE Annual Conference. Proceedings (2006): 1-5.

Sharma, Nitin; Porter, J David; Paul, Brian K. IIE Annual Conference. Proceedings (2003): 1-6.

 Cold Cathode Field Emission Properties of Nanofiber and Nanotube Buckypaper
Chen, Yi-Wen; Park, Jin-Gyu; Liang, Richard; Zhang, Chuck; Wang, Ben; et al. IIE Annual Conference. Proceedings (2009): 1616-1622.
...7-inch CNT-BLU at the CEATEC Conference [6]. The Industrial Technology

 Machining of Heavy Tungsten Alloy with Ceramic and Coated Carbide Tools
Abukhshim, Nuri A; Nisar, Salman; Sheikh, Mohammed A; Mativenga, Paul T. IIE Annual Conference. Proceedings (2009): 1471-1476.

 UVAG of Brittle Materials: DoE with a Cutting Force Model
Qin, Na; Pei, Z J; Cong, W L; Guo, D M. IIE Annual Conference. Proceedings (2010): 1-6.

 Bioprinting of FITC Conjugated Bovine Serum Albumin towards Stem Cell Differentiation
Desai, Salil; Richardson, Ardarion; Lee, Sang Jin. IIE Annual Conference. Proceedings (2010): 1-6.


 Manufacture of High-Strength, Thermally Stable Nanostructured Materials
Shankar, M Ravi. IIE Annual Conference. Proceedings (2007): 1393-1397.

 Characterization of the SilSpin Etch-Back (breakthrough) Process for Nanolithography with CHF^sub 3^ and O2 Gas Chemistry
Venkateswaran, Jayendran; Son, Young-Jun. IIE Annual Conference. Proceedings (2006): 1-6.

 Luminance analysis of laser post-process for buckypaper cathode via Design of Experiments methodology
Chen, YiWen; Zhang, Mei; Liang, Richard; Zhang, Chuck; Wang, Ben; et al. IIE Annual Conference. Proceedings (2009): 1609-1615.

Citation/AbstractFull textFull text - PDF (592 KB)‎
 Combining QFD and Process Management Techniques in Phase-in Nanotechnology - An Empirical Study of the Semiconductor Industry
Chen, Chee-Cheng; Wu, Huei-Ching. IIE Annual Conference. Proceedings (2007): 1004-1009.

 Fabrication of Novel Single-chamber Solid Oxide Fuel Cells towards Green Technology
Yang, Man; Xu, Zhigang; Desai, Salil; Sankar, Jag. IIE Annual Conference. Proceedings (2009): 1435-1439.

 Thermal Behavior of Raw and Purified SWNT Samples: XRD Studies
Allaf, Rula; Swain, Shayla; Rivero, Iris V. IIE Annual Conference. Proceedings (2010): 1-6.

 Competitive and collaborative supply chains: The strategic role of product innovation, secondary markets and channel structure
Diss.Bhaskaran Nair, Sreekumar Radhadevi. The University of Texas at Austin, 2006. 3246883.

 Biomanufacturing of Microcapsules for Drug Delivery and Tissue Engineering Applications
Desai, Salil; Sankar, Jag; Moore, Anthony; Harrison, Benjamin. IIE Annual Conference. Proceedings (2008): 507-512.

 Fabricating 3-D Electronics Using Continuous Ink-Jet Printing
Mei, Junfeng; Lovell, Michael; Mickle, Marlin. IIE Annual Conference. Proceedings (2006): 1-6.

The conference proceedings can be accessed from Proquest and other electronic research paper databases.


Optimal Seed Planting for Growth Regulated Nanomanufacturing

Information of Projects under progress

Large-Scale Manufacturing of Nanoparticulate-Based Lubrication Additives
Development of Boron-Based Nanolubrication Additives for Improved Energy Efficiency and Reduced Emissions

Self-Assembled Biomimetic Nanostructured Anti-Reflection Coatings for Highly Efficient Crystalline Silicon Solar Cells