Saturday, December 15, 2012

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

1 comment:

  1. This comment has been removed by a blog administrator.