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.
( http://www.hsj.co.uk/news/policy/commissioning-board-plans-new-improvement-body-to-drive-efficiency/5047152.article 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.
http://www.oft.gov.uk/shared_oft/economic_research/oft887.pdf
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.
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 performanceIndustrial Engineering: Current Important Initiatives
See the sample chapter of a book on IE and Manufacturing Engg. by Berman Cylingir Kayis
http://www.eolss.net/Sample-Chapters/C05/E6-35-04-08.pdf
Nadler's chapter in Salvendy's Handbook, 1992 is quoted there.
Strategic Themes - How are they used and why? http://www.balancedscorecard.org/portals/0/pdf/Strategic_Themes_How_Are_They_USed_And_Why.pdf
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
http://www.ey.com/GL/en/Services/Advisory/The-top-10-risks-and-opportunities-for-global-organizations---Top-10-opportunities
2. Investing in process, tools and training to achieve greater productivity
http://www.ey.com/GL/en/Services/Advisory/The-top-10-risks-and-opportunities-for-global-organizations---Top-10-opportunities---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
http://www.mckinseyquarterly.com/Operations/Product_Development/The_productivity_imperative_2630
Systemic Practice of Industrial Engineering
http://www.saiie.co.za/index.php?option=com_content&view=article&id=164:systemic-practice-of-industrial-engineering&catid=65:other&Itemid=98
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 ManagementArticle Collection on Total Cost Management
http://nraombakc.blogspot.com/2012/07/total-cost-management-chapter-contents.html
Interesting paper published in 2002 Cost Measurement and Analysis: A Necessary Part of Industrial Engineering Education and Training. Read the paper online from:
http://wenku.baidu.com/view/e7465721192e45361066f560.html
Summary at: http://meenakshi-ie.blogspot.in/2012/08/cost-measurement-and-analysis.html
Cost Measurment: Tools and Methodology for Cost Effectiveness Analysis -1972
Rand Organization Paper
http://www.rand.org/pubs/papers/2008/P4762.pdf
Cost forecasts for various technology power plants up to 2050 - NREL Report
http://bv.com/docs/reports-studies/nrel-cost-report.pdf
Total Cost Management Movement in India
http://mycii.in/KmResourceApplication/E000000893.1226.TCM%20Movement%20in%20India.pdf
Modelling cost management maturity - CII model
http://cmaindia.informe.com/forum/cost-and-management-accounts-finance-and-cost-and-management-audit-f13/modelling-cost-management-maturity-t1884.html
Total Cost Industrial Engineering
http://nraoiekc.blogspot.com/2012/09/total-cost-industrial-engineering.html
3. Total Productivity Management
Total Productivity Management and Total Cost Management by including realization of Learning Effect ResultsChapter in Maynard's Handbook 5th Edition
Total Productivity Management - Top down production management in Japan
1997 paper by Nakamura
http://deepblue.lib.umich.edu/bitstream/2027.42/34620/1/815_ftp.pdf
Impact of Management Practices on Total Factor Productivity - Eritrean Fishing Companies
http://upetd.up.ac.za/thesis/available/etd-08272004-083311/unrestricted/01dissertation.pdf
http://upetd.up.ac.za/thesis/available/etd-08272004-083311/unrestricted/02back.pdf
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
http://nraoiekc.blogspot.com/2012/08/world-class-manufacturing-explanation.html
Industrial engineers can take some steps to involve all employees in improvement activities. See citizen's science initiatives. http://www.scientificamerican.com/citizen-science/
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).
http://www.chrmglobal.com/Articles/485/1/The-Lean-Thinking--Mura-Muri-Muda.html
http://www.velaction.com/muda-muri-mura/
http://www.toyota-global.com/company/toyota_traditions/quality/jul_aug_2004.html
http://leanmanufacturingtools.org/71/muda-mura-and-muri-lean-manufacturing-wastes/
http://www.cii-iq.in/CII/events/Lean2012/ppts/Toyota%20Kirloskar_Parashuram.pdf
http://theleanthinker.com/common-searches/
A Study of the Tovota Production System From an Industrial Engineering Viewpoint
by Shigeo Shingo - Summary
http://www.kellogg.northwestern.edu/course/opns430/modules/lean_operations/shingo.pdf
5. Current Concerns of Boards in the area of Efficiency
Boards Look for Efficiency With IT - November 2011http://www.directorship.com/boards-look-for-efficiency-with-it/
IT Cost Reduction Initiatives:
Cost Reduction in Imaging and Output infrastructure
http://ievarunmitra.blogspot.in/2012/08/cutting-costs-and-maximizing-return-on.html
IT Cost Reduction - Accenture insights - 2012
http://www.accenture.com/us-en/Pages/insight-it-cost-reductions-new-technologies.aspx
Article for each step recommended in Accenture Report
Information Technology Systems Cost Reduction
Reducing the waste in the testing cycle
http://mgmtvideo.blogspot.com/2012/09/reducing-waste-in-testing-cycle-youtube.html
Federal Marketplace for Data Center Capacity - Webinar Video
http://mgmtvideo.blogspot.com/2012/09/federal-marketplace-for-data-center.html
Lean IT: Enabling and Sustaining Your Lean Transformation
Google book
http://books.google.co.in/books?id=3Si41XmQlXAC
Lean Software Development and IT Enabled Services - Collection of Books and Articles - NRao
http://nraoiekc.blogspot.com/2012/04/lean-software-development-and-it.html
6. Lean Supply Chain
7. Sustainability Movement and Industrial Engineering
Manufacturing and the Science of SustainabilityKeynote Address byTimothy G. Gutowski
Massachusetts Institute of Technology, Cambrige, MA 02139
2011
http://web.mit.edu/ebm/www/Publications/Gutowski_CIRP_Keynote_2011.pdf - Important Paper
Industrial Engineering and Sustainability - Bibliography
http://nraoiekc.blogspot.in/2012/08/industrial-engineering-and.html
Importance of Industrial Ecology subject in Engineering Education
http://ankita-ie.blogspot.in/2012/08/international-journal-of-sustainability.html (IE assignment)
Sustainability and Resource Productivity - McKinsey Page
http://www.mckinsey.com/client_service/sustainability
The Emerging Roles of Industrial Engineers in Preventing Pollution and Creating a Sustainable Environment
http://sumeet-industrial-engineering-2012.blogspot.in/2012/08/ie-concepts-research-paper-summary.html
A SYNOPSIS OF INDUSTRIAL ENGINEERING METHODS UTILIZED IN DESIGNING FOR THE ENVIRONMENT
http://vikassakre5.blogspot.in/2012/08/ie-research-paper.html
A Guide to Integrating Value Engineering, Life-Cycle
Costing, and Sustainable Development in FEDERAL FACILITIES, USA - 2001
http://www.wbdg.org/ccb/SUSFFC/fedsus.pdf
8. Scientific Management Theory
1. DISCIPLINARY LINKS BETWEEN SCIENTIFIC MANAGEMENT AND STRATEGY DEVELOPMENT - MIT Working paper - 2009
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 http://books.google.co.in/books?id=eg7ljkZueSEC
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 Engineeringhttp://repository.up.ac.za/bitstream/handle/2263/6752/Development_Leonard%282006%29.pdf?sequence=1
Universiteit Stellenbosch University - South Africa
http://www.ie.sun.ac.za/component/content/118?task=view
http://www.ie.sun.ac.za/component/content/96?task=view
Strategic Productivity by Marketable Technology
http://www.iiste.org/Journals/index.php/IEL/article/view/1073/993
Thesis on Strategic Indutrial Engineering Philosophy P.S. Leonard 2004
http://upetd.up.ac.za/thesis/available/etd-04252005-161604/
10. Review of Current Research in Industrial Engineering Related to Strategic Themes
ThemesTotal 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 topic1. Value Chain Analysis IMA Note
http://www.imanet.org/PDFs/Public/Research/SMA/Value%20Chain%20Analysis.pdf
2. http://www.rti.org/pubs/US_Automotive.pdf
Interoperability cost analysis of US automotive sector
3. http://cde.athabascau.ca/online_book/pdf/TPOL_chp03.pdf
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
http://www.ndia.org/Divisions/Divisions/Manufacturing/Documents/019A/3Strategic_Perspective_for_NDIA_4Nov2009.pdf
A Strategic Perspective on Value - 2009 - Rockwell Automation
Value of a supplier services
http://literature.rockwellautomation.com/idc/groups/literature/documents/wp/oem-wp006_-en-p.pdf
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
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