Industrial Engineering is System Efficiency Engineering.
Its Main Components are Machine Effort and Human Effort Efficiency Engineering.
Synonyms: #Productivity #CostReduction #Efficiency #WasteElimination
Systems have many sub-systems or components. A manufacturing system has manufacturing and administrative sub-systems. The manufacturing system can have many factories. In each factory multiple products are produced and each product has a process of manufacturing and products may use common facilities. The processes have operations. In each operation machines and men work on materials. Machines and men have various elements that have an impact on the effectiveness and efficiency.
Effectiveness of a business system is production of goods and services at prices and quality that satisfy the customers. Then only there will be business revenues through sales. Efficiency is related to the cost incurred in producing goods of right quality. Efficiency is more if cost of production is lesser and lesser without affecting the quality of parameters of importance of the customers. Product redesign and process redesign are attempted by companies to change material specifications, dimensions and ways of processing in a way that maintains the expected performance of the product. For this purpose, the new inventions and innovations are utilized apart from the ideas that come to mind due to learning effect and creative outbursts of all employees.
We can say may areas in industrial engineering, like product IE, process IE, facilities IE, operation IE, Engineering Element level IE, Process machine effort IE, Process human effort IE etc., taking care of various sub-systems or components of engineering systems or production systems.
Effectiveness First and Efficiency Next. Organizations have to be effective and efficient simultaneously. Processes have to be effective and efficient simultaneously. Operations have to be effective and efficient simultaneously. - Narayana Rao
Difference between Performance Engineering (Effectiveness Engineering) and Value Engineering (Efficiency Engineering)
L.D. Miles brought out this difference more clearly. Designing a product to given specification and getting a prototype made that is acceptable to customers is a demanding task. This is performance engineering. Redesigning this working prototype to manufacture it at the lowest cost without sacrificing any feature that the customer desires is value engineering (efficiency engineering). These two activities can be better performed as two separate activities and this will give better results. As Adam Smith noted, division of labor improves productivity. Industrial engineering is efficiency engineering while traditional engineering disciplines are effective engineering disciplines.
Adam Smith
In particular economic growth, to be interpreted as growth in per capita income, has to be reconducted to two factors: labor productivity and the proportion of productive to unproductive workers. Labor productivity, which is considered the most important of the two, essentially depends on the division of labor which: a) improves the dexterity of the worker; b) allows the worker to save the time necessary to switch among different activities; c) puts the worker in the condition of inventing machines to facilitate his job.
Principles of Efficiency - Harrington Emerson
Harrington Emerson contributed to the systems efficiency focus of industrial engineering. His book Twelve Principles of Efficiency was classic.
He discussed efficiency design of organization through 12 principles
1. Clearly defined ideals.
2. Common sense
3. Competent counsel
4. Discipline
5. The fair deal
6. Reliable, immediate and adequate records
7. Despatching
8. Standards and schedules
9. Standardized conditions
10. Standardized operations
11. Written standard-practice instructions
12. Efficiency-reward
Harrington Emerson - A Pioneer Industrial Engineer - Principles of Efficiency
Babbage Principle
In "On the Economy of Machine and Manufacture", Babbage described what is now called the Babbage principle, which identified advantages with division of labour. Babbage noted that highly skilled—and thus generally highly paid—workers spend parts of their job performing tasks that are "below" their skill level. If the labour process can be divided among several workers, it is possible to assign only high-skill tasks to high-skill and -cost workers and leave other working tasks to less-skilled and paid workers, thereby cutting labour costs. (page 137-138).
Role of Efficiency
Producers exist to convert inputs into desired goods and services in an efficient manner. Given that output prices and factor prices are determined in competitive markets, efficiency means exploiting existing production technology to the greatest extent possible. Profits earned by the entrepreneur represent the reward for taking risks (facing an uncertain demand for the output) and achieving efficiency in production (relative to competing producers) -- profits that are least equal to what the entrepreneur could earn by working for someone else.
Sentences from Harold Koontz and Cyril O'Donnell, Principles of Management, Fourth Edition, McGraw-Hill, New York, 1968, on Efficiency.
p. 742
The goal of all managers in all enterprises must be the effective accomplishment of purpose (whatever it is) with the most efficient utilization of resources-human and material-at their disposal.
The purpose of business is to satisfy the economic wants of people, and, since resources are scarce, their efficient use is a moral requirement.
p. 744
It is not enough to produce economic goods; the first duty of business is to produce them efficiently.
Since businessmen obtain control scarce resources by the purchase or lease of land and capital and hire human services, they have a moral responsibility for using them efficiently in the production
It is the business of the state to make sure through legislation and regulation that the private economy does not fail in its function to efficiently utilize resources to maximize the satisfaction of consumer wants for economic goods and services.
Principle of Suboptimization
PRINCIPLE OF SUBOPTIMIZATION
Optimizing each subsystem independently will not in general lead to a system optimum, or more strongly, improvement of a particular subsystem may actually worsen the overall system. The principle of suboptimization provides the basis for a link between organizational structure and the policies adopted.
The well-being of an element is dependent on the well-being of the system of which it is a part. It is sometimes necessary for an element to limit its goals and actions in order to preserve the well-being of the system. In acting to achieve its goals one element may come to constrain the actions of another element to the point of serious injury to the other element.
( http://pespmc1.vub.ac.be/ASC/PRINCI_SUBOP.html )Marginal Productivity Theory
Resources are employed till their marginal productivities are equal for the addition unit of payment for optimizing the resources employed in the production.
On the Economy of Machinery and Manufactures http://books.google.co.in/books?id=4QWZq4FDoH4C
Only preview available
Division of Labor and Economic Growth: From Adam Smith to Paul Romer and Beyond
http://time.dufe.edu.cn/article/romer/5.pdf
The optimization principles - role of efficiency - http://www.digitaleconomist.org/optimization.html
Principle of Productivity Science - Narayana Rao
Productivity Improvement: Pick and Pass Sorting
March 11, 2021
Vinayak Shete
Manager Solution Design at Addverb
11. Work measurement
21. Cost measurement
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https://www.youtube.com/watch?v=pU8CdWfZZdU&t=697s
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Selected Statements Circulated in Social Media
Adam Smith: Economic growth, to be interpreted as growth in per capita income, has to be reconducted to two factors: labor productivity and the proportion of productive to unproductive workers. Labor productivity, which is considered the most important of the two, essentially depends on the division of labor.
Principles of Efficiency - Harrington Emerson: Ideals - Specialist - Reliable, immediate and adequate records - Schedules & Despatching - Standards - Standardized conditions - Standardized operations - Written standard-practice instructions - Efficiency-reward.
Charles Babbage: Profits earned by the entrepreneur represent the reward for taking risks (facing an uncertain demand for the output) and achieving efficiency in production (relative to competing producers) -- profits that are least equal to what the entrepreneur could earn by working for someone else.
Harold Koontz and Cyril O'Donnell: The goal of all managers in all enterprises must be the #effective accomplishment of purpose (whatever it is) with the most #efficient utilization of resources-human and material-at their disposal.
Concept and Principles of System Efficiency Engineering.
Industrial Engineering is System Efficiency Engineering.
https://nraoiekc.blogspot.com/2012/02/principles-of-system-efficiency.html
Harold Koontz and Cyril O'Donnell: The purpose of business is to satisfy the economic wants of people, and, since resources are scarce, their #efficient use is a moral requirement.
Concept and Principles of System Efficiency Engineering.
Industrial Engineering is System Efficiency Engineering.
https://nraoiekc.blogspot.com/2012/02/principles-of-system-efficiency.html
Harold Koontz and Cyril O'Donnell: It is not enough to produce economic goods; the first duty of business is to produce them efficiently.
Concept and Principles of System Efficiency Engineering.
Industrial Engineering is System Efficiency Engineering.
https://nraoiekc.blogspot.com/2012/02/principles-of-system-efficiency.html
Related Article
System Efficiency Engineering - Bibliography
Ud. 8.5.2022, 25.1.2022, 28.12.2021
Pub 17.2.2012
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