Saturday, August 18, 2012

Is Industrial Engineering a Strategic Function?

The answer is yes. Industrial Engineering is a strategic function. Its focus is efficiency, waste elimination, planning of optimal cost for the enterprise and hence profit maximization subject to the revenue constraints or maximum sales achieved by the organization. Is profit a strategic measure for the organization? Yes, it is. Then is not the function that has a focus on optimizing the profit using technical as well as managerial alternatives available a strategic function? The answer is yes. It is.

What is industrial engineering?
It is human effort engineering and system efficiency engineering.

Annual profit planning and long-tern profit planning are board level issues and board has to take decisions regarding IE targets and programs. Total productivity management is a good management method to plan enterprise level improvement activities and  then involve local units to achieve enterprise improve and thereby targeted profit. Total cost management is enterprise level cost management with active participation of all.

Board and Its Responsibilities

Board look for Efficiency with IT

NHS Commissioning Board Plans new improvement body to promote efficiency
JIM Easton, Director of  Improvement and Efficiency
July 2012

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