Tuesday, December 23, 2014

Jawaharlal Nehru Technological University Kakinada - Industrial Engineering and Management Syllabus

B.Tech Mechanical Engineering
III Year - II Semester

Unit I


Definition of Industrial Engineering (I.E.), development, applications, role of an industrial engineer, differences between production management and industrial engineering, quantitative tools of IE and productivity measurement.

Concepts of management, importance, functions of management, scientific management, Taylor's principles, theory X and theory Y, Fayol's principles of management.

Unit II

Plant Layout
Factors governing plant location, types of production layouts, advantages and disadvantages of process layout and product layout, applications, quantitative techniques for optimal design of layouts, plant maintenance, preventive and breakdown maintenance

Unit III

Operations Management
Importance, types of production, applications, work study, method study and time study, work sampling, PMTS, micro-motion study, rating techniques, MTM, work factor system, principles of Ergonomics, flow process charts, string diagrams and Therbligs.

Unit IV

Statistical Quality Control
Quality control, its importance, SQC, sampling inspection, types, Control charts - X and R - charts X and S charts and their applications, numerical examples

Unit V

Resource Management
Concept of human resource management, personnel management and industrial relations, functions of personnel management, Job-evaluation, its importance and types, merit rating, quantitative methods, wage incentive plans, types

Unit VI

Total Quality Management
zero defect concept, quality circles, implementation, applications, ISO quality systems, six sigma - definition, basic concepts

Unit VII

Value Analysis
Value engineering, implementation procedure, enterprise resource planning and supply chain management


Project Management
PERT, CPM - differences and applications, critical path, determination of floats, importance, project crashing, smoothing and numerical examples


1. Industrial Engineering and Management by O.P. Khanna, Khanna Publishers,
2. Industrial Engineering and Production Management, Martand Telsang, S. Chand & Company Ltd., New Delhi

Reference Books:


The topic "differences between production management and industrial engineering" is an important one. Actually, the difference between pure mechanical engineering and industrial engineering in mechanical engineering discipline also needs to be clarified at this stage. Similarly difference betwee design of a system done by engineers and managers to give outputs required by the potential users has to be distinguished with redesign done by industrial engineers to minimize resource use by identifying and eliminating waste in the first or primary design solution.

In many of the topics of the syllabus, there is original design done engineers and managers with the academic and practical specialization in that topic. The industrial engineers are given the design to do efficiency or productivity analysis and improve it in the dimension.

Monday, December 22, 2014

Industrial Engineering - History

Pennsylvania State College, USA introduced the first industrial engineering major in 1907.
Principles of Industrial Engineering by Charles B. Going was published in 1911.
Industrial Engineering - Principles and Techniques

Background for Development of Industrial Engineering

Railroads had devised elaborate methods of internal communications and record keeping by mid 19th century. But  the late-nineteenth-century factory remained a loosely organized cluster of operations. The distinguishing feature of factory management was the conspicuous role of the first-line supervisor. Foremen organized materials and labor, directed machine operations, recorded costs, hired and fired employees, and presided over a largely autonomous empire.

In the 1870s and 1880s, however, critics began to attack the “chaotic” condition of contemporary industry and to propose a more systematic, centralized approach to production management. Their critique became the basis for the best-known effort to encourage coordination within the firm during the first half of the twentieth century under production manager.  The movement was known under various labels -systematic management, scientific management, efficiency engineering, and, by the 1920s, industrial engineering- it fostered greater sensitivity to the manager’s role in production and greater diversity in industrial practice, as managers selectively implemented ideas and techniques.

The attack on traditional factory management originated in two late-nineteenth-century developments. The first was the maturation of the engineering profession,  based on formal education and mutually accepted standards of behavior and formally educated engineers embraced  scientific experimentation and analysis in place of sporadic developments based on experience. The second development  was the rise of systematic management, an effort among engineers and sympathizers to substitute system for the informal methods that had evolved with the factory system. Systematic management was a rebellion against tradition, empiricism, and the assumption that common sense, personal relationships, and craft knowledge were sufficient to run a factory.  The factories replaced traditional managers with engineers  and managerial systems replaced guesswork and ad hoc evaluations.  By the late 1880s, cost accounting systems, methods for planning and scheduling production and organizing materials, and incentive wage plans were developed. Their objective was an unimpeded flow of materials and information. In human terms, systematic management sought to transfer power from the first-line supervisor to the plant manager and to force all employees to pay greater attention to the manager’s goals. It promoted decisions based on performance rather than on personal qualities and associations.

Contribution of F.W.Taylor

In the 1890s,  Frederick Winslow Taylor, became the most vigorous and successful proponent of
systematic management. As a consultant, he introduced accounting systems that permitted managers to use operating records to guide their actions, production control systems that allowed managers to know more precisely what was happening on the shop floor, piece-rate systems that encouraged workers to follow orders and instructions, and various related measures. In 1895, he employed a colleague, Sanford E. Thompson, to help him determine the optimum time to perform industrial tasks; their goal was to compute, by rigorous study of the worker’s movements and the timing of those movements with stopwatches, standards for skilled occupations that could be published and sold to employers.

Between 1898 and 1901, as a consultant to the Bethlehem Iron Company, Taylor introduced all of his systems and vigorously pursued his research on the operations of metal-cutting tools.  Taylor’s discovery of high-speed steel in 1900, which improved the performance of metal-cutting tools, assured his fame as an inventor. In his effort to introduce systematic methods in many areas of the company’s operations, Taylor developed an integrated view of managerial innovation and a broader conception of the shop/production manager’s role.  In 1901, when he left Bethlehem, Taylor resolved to devote his time and ample fortune to promoting his new conception of industrial management. In the paper, Shop Management ( 1903),  he portrayed an integrated complex of systematic management methods, supplemented by refinements and additions such as time study.

In the following years, he modified his presentations to make them more appealing. Two changes were notable. First, he began to rely more heavily on anecdotes from his career to emphasize the links between
improved management, greater productivity, and social melioration to audiences that had little interest in technical detail.  Second, apart from the object lessons, Taylor spoke less about factory operations and more about the significance and general applicability of his ideas. Between 1907 and 1909, with the aid of a close associate, Morris L. Cooke, he wrote a sequel to Shop Management that became The Principles of
Scientific Management (1911).   Taylor came out with four principles and  relied on colorful stories from his experience and language to illuminate “principles” of management. To suggest the integrated character and broad applicability of scientific management, he equated it to a “complete mental revolution.”

 Taylor had fashioned scientific management from systematic management. The two approaches were intimately related. Systematic and scientific management had common roots, attracted the same kinds of people, and had the same business objectives. Yet in retrospect the differences stand out. Systematic management was diffuse and utilitarian, a series of isolated measures that did not add up to a larger whole or have recognizable implications beyond day-to-day industrial operations. Scientific management added significant detail and a larger view.

Taylor’s reformulation of scientific management was the single most important step in the popularization of industrial engineering. The Principles extended the potential of scientific management to nonbusiness endeavors and made Taylor a central figure in the efficiency movement of the 1910s.  To engineers and nonengineers alike, he created order from the diverse prescriptions of a generation of technical writers. By the mid-l910s, he had achieved wide recognition in American engineering circles and had attracted
a devoted following in France, Germany, Russia, and Japan. Pennsylvania State College introduced the first industrial engineering major in 1907 and promoted the thinking of Taylor.

Taylor's  insistence that the proper introduction of management methods required the services of an expert intermediary linked the progress of industrial engineering to the activities of independent consultants and accelerated the rise of a new profession.

Initially, the spread of systematic management occurred largely through the work of independent consultants, a few of whom, such as the accountant J. Newton Gunn, achieved prominence by the end of the nineteenth century. By 1900, Taylor overshadowed the others; by 1910, he had devised a promotional strategy that relied on a close-knit corps of consultants to install his techniques, train the client’s employees, and instill a new outlook and spirit of cooperation. The expert was to ensure that the spirit and mechanism of
scientific management went hand in hand. This activity of Taylor produced a number of successful consulting firms and the largest single cluster of professional consultants devoted to industrial management.

Between 1901 and 19 15, Taylor’s immediate associates introduced scientific management in nearly two hundred American businesses, 80 percent of which were factories  Some of the plants were large and
modern, like the Pullman and Remington Typewriter works; others were small and technologically primitive. Approximately one-third of the total were large- volume producers for mass markets. A majority fell into one of two broad categories. First were those whose activities required the movement of large quantities of materials between numerous workstations (textile mills, railroad repair shops, automobile plants). Their managers sought to reduce delays and bottlenecks and increase throughput.

The records availabe suggest that the consultants provided valuable services to many managers. They typically devoted most of their time to machine operations, tools and materials, production schedules, routing plans, and cost and other record systems. Apart from installing features of systematic management, their most notable activity was to introduce elaborate production-control mechanisms (bulletin boards and graphs, for example) that permitted managers to monitor operations

Between 1910 and 1920, industrial engineering spread rapidly. Large firms introduced staff departments devoted to production planning, time study, and other industrial-engineering activities and consulting firms also developed further. By 1915, the year of Taylor’s death,  professional organization,  the Taylor Society founded in 1910 was active. Western Efficiency Society was founded in 1912.  The Society of Industrial Engineers was founded in 1917. These societies  provided forums for the discussion of techniques and the development of personal contacts.  Financial success and professional recognition increasingly depended
on entrepreneurial and communications skills rather than technical expertise alone. Several of Taylor’s closest associates, including Carl G. Barth and H. K. Hathaway, failed as consultants, while a new generation of practitioners, including many university professors developed successful consulting practices.

Contributions of Gilbreth, Emerson and Bedaux

Competition for clients and recognition-especially after the recession of 1920-21 made executives more cost-conscious-produced other changes. Some industrial engineering consultants began to seek clients outside manufacturing. Spurred by the growing corps of academicians who argued that the principles of factory management applied to all businesses, they reorganized offices, stores, banks, and
other service organizations. A Society of Industrial Engineers survey of leading consulting firms in 1925 reported that many confined their work to plant design, accounting systems, machinery, or marketing . A third trend was an increasing preoccupation with labor issues and time study. This emphasis reflected several postwar developments, most notably and ominously the increasing popularity of consultants who devoted their attention to cost cutting through the aggressive use of time study.

By the early 1920s, industrial engineers  had divided into two separate and increasingly antagonistic camps.
One  influential group of industrial engineers, centered in the Taylor Society, embraced personnel management and combined it with orthodox industrial engineering to form a revised and updated version of scientific management. A handful of Taylor Society activists, Richard Feiss of Joseph & Feiss, Henry S. Dennison of Dennison Manufacturing, Morris E. Leeds of Leeds & Northrup, and a few others, mostly owner-managers, implemented the new synthesis. They introduced personnel management and more controversial measures such as profit sharing, company unionism, and unemployment insurance that attacked customary distinctions between white- and blue-collar employees and enlisted the latter, however modestly, in the management of the firm.

A larger group emphasized the potential of incentive plans based on time and motion study and disregarded or deemphasized other features of orthodox scientific management. Their more limited approach reflected the competition for clients, the trend toward specialization, and the continuing attraction of rate cutting. Indicative of this tendency was the work of two of the most successful consultants of the post- 1915 years, Harrington Emerson and Charles E. Bedaux.

Harrington Emerson

Emerson (1853-1931) was a creative personality. Attracted to Taylor at the turn of the century, he briefly worked as an orthodox practitioner and played an influential role in Taylor’s promotional work. He soon became a respected accounting theorist and a successful reorganizer of railroad repair facilities. As his reputation grew, however, he broke with Taylor and set up a competing business with a large staff of engineers and consultants. Between 1907 and 1925, he had over two hundred clients  He also published best-selling books and promoted a mail-order personal efficiency course. He was probably the best-known industrial engineer of the late 1910s and early 1920s.’ Emerson’s entrepreneurial instincts defined his career. An able technician, he was capable of overseeing the changes associated with orthodox scientific management. He also recruited competent assistants, such as Frederick Parkhurst and C. E. Knoeppel, who later had distinguished consulting careers, and E. K. Wunnerlund, who became the head of industrial engineering at General Motors. But Emerson always viewed his work as a business and.tailored his services to this customer’s interests. In practice, this meant that his employees spent most of their time conducting time studies and installing incentive wage systems. By the mid- 1920s, General Motors, Westinghouse, the Baltimore & Ohio Railroad, Aluminum Company of America, American Radiator, and many other large and medium-sized industrial firms had introduced the Emerson system and in many cases an industrial engineering department staffed by former Emerson employees.

Bedaux (1886-1944) was even more adaptable. A French immigrant who was a clerk at a St. Louis chemical company in 1910 when an expert arrived to conduct time studies, Bedaux quickly grasped the essentials of time study and replaced the outsider. During the “efficiency craze” that followed the pub-
lication of The Principles, he found other clients. The turning point in his ca-reer came in 1912, when he accompanied several Emerson engineers to France as an interpreter. In Paris he struck out on his own, reorganized several factor- ies, and studied the writings of Taylor and Emerson. Returning to the United
States during World War I, he launched the Bedaux Company and began to cultivate clients.  He relied on personal con- tacts and a simple, compelling promise: he would save more money than he charged. Although Bedaux employed able engineers and usually made some effort to reorganize the plant, his specialty was the incentive wage. His men worked quickly, used time studies to identify bottlenecks and set production standards, installed a wage system similar to Emerson’s.  Bedaux’s clients included General Electric, B. F. Goodrich, Standard Oil of New Jersey, Dow Chemical, Eastman Kodak, and more than two hundred other American firms by the mid- 1930s. His European offices were even more successful.

Whereas Taylor and his followers opposed wage cutting and “speed-up” efforts, Emerson was more flexible, and Bedaux made a career of forcing workers to do more for less. One notable result was a resurgence of strikes and union protests. By the 193Os, Bedaux had become infamous on both sides of
the Atlantic. In response to his notoriety, he revised his incentive plan to increase the worker’s share and dropped much of his colorful terminology, including the famous B unit. Bedaux’s business survived, though neither he nor his firm regained the position they had enjoyed in the late 1920s and early 1930s.

Bedaux’s legacy was a substantial burden for other industrial engineers. The growth of labor unrest in the 1930s and the frequent appearance of the “Be-do” plan on grievance lists revived the association of industrial engineering with labor turmoil. Regardless of their association with Bedaux and his tactics, industrial engineers became the targets of union leaders and their allies. In industries such as autos and tires, worker protests paralyzed the operations of industrial engineering departments and led to the curtailment or abandonment of many activities.

Diffusion of Industrial Engineering

There are at least three partial measures of the diffusion of industrial engineering.  First, the many references to cost ac- counting, centralized production planning and scheduling, systematic maintenance procedures, time study, and employment management in the trade press and in the records of industrial corporations indicate that these activities were no longer novel or unfamiliar to executives. The promotional work of the consultants, the “efficiency craze,” and the growth of management education in universities had made the rudiments of industrial engineering widely available; only the oldest or most isolated executives were unaware of them. The critical issue was no longer the desirability of the new management; it was the particular combination of techniques suitable for a given firm or plant, the role of the outside consultant, if any, and the authority of the staff experts.

Second, the information on industrial wage systems that the National Indus- trial Conference Board assiduously collected in the 1920s and 1930s documents widespread acceptance of incentive wage plans, particularly among large corporations. In 1928, for example, 6 percent of the smallest companies (1-50 employees) had incentive wage plans, while 56 percent of the largest firms (more than 3,500 employees) had such plans. In earlier years, small firms devoted to industrial reform had been among the most vigorous proponents of industrial engineering. But their ranks did not grow, and they were soon overshadowed by large corporations, which found in industrial engineering an effective answer to the problems that often prevented large, expensive factories from achieving their potential. Incentive wage plans were an indicator of this trend.  Feiss, Dennison, and others hoped to trans- form the character of industrial work through the use of incentives and person- nel programs; judging from the information that survives, big business manag-
ers had more modest goals. Their principal objective was to make the best use of existing technology and organization by enlisting the workers’ interest in a higher wage. In the early 1930s, many managers were attracted to the “work simplification” movement that grew out of the Gilbreths’ activities, but the effects were apparently negligible, at least until the World War I1 mobilization effort. To most manufacturers, industrial engineering provided useful answers to a range of shop-floor problems; it was a valuable resource but neither a stimulus to radical change nor a step toward a larger goal.

A third source, contemporary surveys of the industrial engineering work of large corporations, provides additional support for this conclusion.   A 1928 survey by the Special Conference Committee, an elite group of large industrial firms, emphasized related problem. It reported wide differences in the practice of
time study, in the duties of time-study technicians, and in the degree of commitment to time study as an instrument for refining and improving the worker’s activities. At Western Electric, which had one of the largest industrial engineering staffs, a manufacturing planning department was responsible for machinery and methods; the time-study expert was simply a rate setter. At Westinghouse, which also had a large industrial engineering department, time-study technicians were responsible for methods and rates. However, a
report from the company’s Mansfield, Ohio, plant indicated that the time-study engineer could propose changes in manufacturing methods “in cooperation with the foremen.” Most companies had similar policies. The time-study expert was expected to suggest beneficial changes to his superiors, often after consulting the foreman, but had no independent authority to introduce them. Essentially, the “expert” was a rate setter. In most plants, industrial engineering focused on detail, seldom threatened the supervisors or workers, and even more rarely produced radical changes in methods.

Experience at Du Pont

A recent, detailed examination of industrial engineering at E. I. Du Pont de Nemours & Company, a Special Conference Committee member, suggests the range of possibilities that could exist in a single firm (Rumm 1992, 175-204). Du Pont executives created an Efficiency Division in 191 1 after the company’s
general manager read The Principles. Rather than employ an outside consul- tant, they appointed two veteran managers to run the division. These men con- ducted time and motion studies, “determined standard times and methods for tasks, set standard speeds for machinery, and made suggestions for rearranging
the flow of work, improving tools, and installing labor-saving equipment.” Yet they encountered a variety of difficulties; their proposals were only advisory, they clashed with the new employment department when they proposed to study fatigue and the matching of workers and jobs, and they found that many executives were indifferent to their work. Worst of all, they could not show that their activities led to large savings. In 1914, after the introduction of functional supervision in the dynamite-mixing department apparently caused several seri- ous accidents, the company disbanded the Efficiency Division.

Although some Du Pont plants introduced time-study departments in the following years, the company did nothing until 1928, when it created a small Industrial Engineering Division within the larger Engineering Department. The IED was to undertake a “continuous struggle to reduce operating costs.” That battle was comparatively unimportant until the Depression underlined the importance of cost savings. In the 1930s, the IED grew rapidly, from twenty- eight engineers in 1930 to over two hundred in 1940. It examined “every aspect of production,” conducted job analyses, and introduced incentive wage plans.  IED engineers began with surveys of existing operations. They then “consolidated processes, rearranged the layout of work areas, installed materials-handling equipment, and trimmed work crews.” To create “standard times” for particular jobs, they used conven-tional stopwatch time study as well as the elaborate photographic techniques
the Gilbreths had developed. By 1938, they had introduced incentive wage plans in thirty plants; one-quarter of all Du Pont employees were affected.

Du Pont introduced a variety of incentive plans. Three plants employed the Bedaux Company to install its incentive system. Other managers turned to less expensive consultants, and others, the majority, developed their own “in- house” versions of these plans. Some executives, and workers, became enthusi-
astic supporters of incentive wages; others were more criticai. Despite the work of the aggressive and ever-expanding IED, many workers found ways to take advantage of the incentive plans to increase their wages beyond the anticipated ranges. Wage inflation ultimately led the company to curtail the incentive plans. Time and motion study, however, remained hallmarks of Du Pont indus- trial engineering.

 During the depression of the 1930s, when they developed a new sensitivity to the value of industrial engi-
neering, they defined it as a way to cut factory costs.  One reason for this per- spective was bureaucratic: Du Pont had developed an extensive personnel op- eration in the 1910s and 1920s, which had authority over employee training, welfare programs, and labor negotiations. Equally important was the apparent
assumption that industrial engineering only pertained to the details of manu- facturing activities, especially the work of machine operators. Despite mount-ing pressures to reduce costs, the company’s offices, laboratories, and large white-collar labor force remained off-limits to the IED. Despite these handi-
caps, the IED had a significant impact because rapid technological change in the industry created numerous opportunities for organizational change and Du Pont avoided relations with powerful unions.

 Du Pont executives were re- ceptive to the “principles” of industrial engineering but focused on the particu-
lars, which they assessed in terms of their potential for improving short-term economic performance. As a result there was little consistency in their activi- ties until the 1940s; even then, industrial engineering was restricted to the com-pany’s manufacturing operations. This approach, fragmentary and idiosyn- cratic by the standards of Taylor or Dennison, was logical and appropriate to executives whose primary objective was to fine-tune a largely successful organization.

During the first third of the twentieth century, industrial engineers successfully argued that internal management was as important to the health of the enterprise as technology, marketing, and other traditional concerns. Their message had its greatest impact in the 1910s and 1920s, when their “principles”
won wide acceptance and time study and other techniques became common- place. Managers whose operations depended on carefully planned and coordi- nated activities and reformers attracted to the prospect of social harmony were particularly receptive. By the 1930s, the engineers’ central premise, that inter-nal coordination required self-conscious effort and formal managerial systems, had become the acknowledged basis of industrial management.


Allan Mogensen's Common Sense Applied to Motion and Time Study (1932)

Ralph Barnes's Indus­trial Engineering and Management: Problems and Policies (1931).

Steward M. Lowry, Harold B. Maynard, and G. J. Stegmerten's widely used Time and Motion Study and Formulas for Wage Incentives.

The 1927 edition treated motion study only briefly and insubstantially, while devoting many chapters to stopwatch methods and rate setting formulas. In 1932, the authors approached Lillian Gilbreth and her research group for more detailed information on their methods. By 1940 Lowry, Maynard, and Stegmerten had reduced their treatment of wage incentive formulas from nine chapters to three, and increased the number of chapters devoted to motion study to seven.



Charles E. Bedaux - Industrial Engineering and Scientific Management Consultant

Charles E. Bedaux was born in Paris in 1886 on 26 October and migrated to the United States early in the 20th century. He became an American citizen and developed himself to become one of the pioneering contributors to the field of scientific management.

Bedaux worked out various ideas about measuring human energy: these provided the basis for the innovative work study programs that lead to startling improvements in productivity.

Bedaux introduced the concept of rating assessment in timing work. He adhered to Gilbreth's introduction of a rest allowance to allow recovery from fatigue. He is also known for extending the range of techniques employed in work study, including value analysis.

In 1916, Charles Bedaux established his first management consultancy firm in Cleveland. The firm can be considered to be one of the first professional management consultancy firms in the world and its success led to the creation of a string of consultancy firms, firstly in the USA and later in Europe. In 1926 the British Bedaux Company was formed, followed by companies all over Europe, Africa, Australia and the East. Some of the leading consultancy firms of today have their roots with Bedaux.

Bedaux had a strong streak of idealism and believed that his improved production methods were important to the whole world. He preached to industrialists about the need to consider other people and not just profits. This philosophy achieved results.

Charles Bedaux bought the sixteenth century Chateau de Cand in France, where he lived with his American wife Fern.  Charles Bedaux had  business dealings  with  the allied forces as well as the Germans, previous to, and in the beginning of the second world war. He was flown from North Africa to the United States in 1944 to investigate his legal position regarding dealing with Germans. He died before a formal charge was entered.

After the war, various Bedaux companies all over the world continued their work, some of them with new names and new management; all of them with the same philosophy: giving true attention to people in organisations pays off in terms of motivation and productivity.

The Canadian director George Ungar published in 1995, after 16 years of research and gathering of material, a TV documentary of 100 minutes with the title "The Champagne Safari". In this documentary the life of Charles E. Bedaux has been presented in the most fascinating way and put into relation to the economical developments of the first half of the 20th century. This movie is a must-see for every person who has an interest in the history of  scientific management, industrial engineering and management consultancy..

The management systems and tools have developed far away from the original techniques and tools. Still the essential working principles are based on the traditional doctrines: looking and listening carefully to people, understanding their working processes, assessing and developing opportunities for improvement, establishing fair standards and providing stimulating conditions.


Monday, December 15, 2014

Productivity and IE in Soya Bean Processing

Improving Productivity in Soya-Bean Processing Through the Design and Fabrication of Double Action
Decoating and Separation Machine
C. Agulanna, E.C Oriaku and J.C Edeh
Projects Development Institute (PRODA), PMB 01609 Enugu, Nigeria
2011 paper

India Case Study


Soya Tech Website - USA

Soy Milk Plants - India

Friday, December 5, 2014

UNEP Launches Global Initiative for Resource Efficient Cities

The Global Initiative for Resource-Efficient Cities 

Rio de Janeiro, 18 June 2012

The United Nations Environment Programme (UNEP) and partners have unveiled today at the Rio+20 summit in Brazil a new initiative that aims to reduce pollution levels, improve resource efficiency and reduce infrastructure costs in cities across the world.

The Global Initiative for Resource-Efficient Cities will work with local and national governments, the private sector and civil society groups to promote energy efficient buildings, efficient water use, sustainable waste management and other activities.

Cities with populations of 500,000 or more are invited to join the initiative, which aims to attract 200 members by 2015.

Today, urban areas account for 50 percent of all waste, generate 60-80 percent of all greenhouse gas emissions and consume 75 percent of natural resources. In terms of space they occupy only 3 percent of the Earth's surface.

Water savings of 30 percent, and energy saving of up to 50 percent can be achieved in cities with limited investment and encouraging behavioral change, according to UNEP.

The green initiatives in cities can provide employment to some 20 million people in the wind, solar and biofuel industries by 2030.

The Global Initiative for Resource-Efficient Cities will support sustainability efforts in cities with the following core activities:

Promoting research on resource efficiency and sustainable consumption and production
Providing access and advice for city decision-makers on technical expertise, capacity building and funding opportunities for improving resource efficiency
Creating a network for cities and organizations to exchange experiences and peer-review projects for mutual benefit

"Decoupling economic growth from unsustainable resource use and environmental impacts-especially in urban areas - underpins the transition to a low-carbon, resource efficient green economy",

"The new Global Initiative for Resource Efficiency Cities aims to provide cities with a common framework for assessing environmental performance and encouraging innovative sustainability measures. In the context of rapid urbanization and growing pressures on natural resources, there is an urgent need for co-ordinated action on urban sustainability. This is essential both for preventing irreversible degradation of resources and ecosystems, and for realizing the multiple benefits of greener cities, from savings through energy-efficient buildings, or the health and climate benefits of cleaner fuels and vehicles."

The initiative has already been backed by a broad range of international institutions, such as UN-Habitat, the World Bank, United Cities and Local Governments (UCLG), Local Governments for Sustainability (ICLEI), Cities Alliance, International Federation of Consulting Engineers (FIDIC), Veolia Environment Institute, Bioregional, Urban Environmental Accords Members Alliance and International Institute for Environment and Development (IIED).

Several cities have already come on board, including the City of Sao Paulo, Malmo, Heidelberg, Quezon City, Gwangju, with national interest having been expressed by Japan, Brazil, France and the United States.

The strong, early interest in this initiative is further evidence that cities, which generate 80 percent of global GDP, understand they are the key decision-makers and implementers of the necessary steps required to move our societies towards a more sustainable pattern of consumption and production,

There was an initiative of  C40 Cities Climate Leadership Group earlier.

Sustainable Cities: Making it Happen  - A Report

The practical steps that cities can take towards resource efficiency are the focus of a new UNEP report, also launched today at Rio+20.

Using case studies from China, Brazil, Germany and a host of other countries, Sustainable, Resource Efficient Cities in the 21st Century: Making it Happen, highlights opportunities for city leaders to improve waste and water management, energy efficiency, urban transportation, and other key sectors.

Among the projects highlighted in the report is the Masdar City development in the United Arab Emirates, which is acting as a test-bed for the development of the skills, innovation and markets required for realizing the eco-city concept at a large scale.

The report also examines several initiatives that aim to meet the rising energy demands of urban centres, in a sustainable way.

Renewable energy feed-in tariff strategies in Germany, for example, have allowed the city of Freiburg to invest in photovoltaic, wind and other renewable energy systems, which now supply over 8 percent of the city's total energy demand. Household energy consumption has been decreased by up to 80 percent due to Freiburg's energy-efficient housing standards.

Integration: Cities need to move beyond merely conducting environmental impact assessments before implementing new developments. In addition to a conservation approach towards greening, the livability of cities and social equality measures should be taken into account.

Governance: Tackling climate change and advancing urban sustainability requires an integrated, consultative approach involving local communities and civil society groups, as well traditional decision-makers.

Smart Urban Design: Supporting low-footprint design that targets public transport, pedestrian zones and cycle lanes and promote compact, multi-use urban development

Finance: Tax incentives and subsidies can be used to stimulate the up-take of green technologies.

Technology Transfer: Transfer of technology and skills to developing countries should be adapted to suit local context, not simply 'off-the-shelf' solutions from the developed world. Capacity building on management and maintenance is an important part of technology and skills transfer.

Innovation: Supporting and/or establishing educational and research bodies that can support the development of skills, capabilities and networks on urban sustainability.

The Feasibility Study on the Development of an Urban CDM

A second UNEP report, also launched today, examines  how cities can better access climate finance through the Clean Development Mechanism (CDM). The Feasibility Study on the Development of an Urban CDM, recommends reforming the existing CDM to allow for methodologies geared towards cities. It also recommends the development of a CDM programme of activities for pilot cities that would inform the future development of Nationally Appropriate Mitigation Actions and assist in the transition to a green economy.



One of the first projects of this initiative was to conduct a mapping exercise as part of a  comprehensive review on resource efficiency in cities. In partnership with Sustainable Cities International and, Infrangilis, Travisia Partners identified what  stakeholders and organizations are doing in relation to resource efficiency as well as identified the most appropriate areas for UNEP intervention in the sector.

Sustaianble Cities International secured a second contract to produce a background paper on city level resource efficiency in Latin America and the Caribbean (LAC) and carry out a two-day workshop as a parallel event at the World Urban Forum in Medellin, Colombia. This project was conducted as a partnership between Fundacion Corona, the Latin American Network for Democratic, Fair and Sustainable Cities. Practitioners from four cities of the LAC region attended as well as representatives from UNEP, and a final report was produced that included suggestions for priority areas where UNEP initiatives could add value in the region.

Tuesday, December 2, 2014

Industrial Engineering Strategy

Industrial engineering is profit engineering. If a company is not employing industrial engineering it is unnecessarily foregoing profits inherent in the products that it developed and designed to the performance satisfaction of good number of users. Profit conscious managers and owners have to understand and employ industrial engineering to achieve the full potential of their products.

What are your strategic decisions related to industrial engineering function?

1. What is your productivity/Efficiency Improvement - Cost Reduction goal?

2. Are you planning to realize experience curve effect benefits?

3. How much of the cost reduction - productivity improvement should come from specialist industrial engineers and other engineers and managers?

4. What will be the ratio of industrial engineers to other engineers and managers?

5. What bottlenecks or limiting factors have you identified in you facilities?

6. What techniques are going to receive special emphasis?

7. What is your training plan for specialist industrial engineers and other engineers and managers?

8. What is the top management attention to industrial engineering - productivity improvement - cost reduction activity?

9. What is the research and development budget for IE activity?

1. What is your productivity/Efficiency Improvement - Cost Reduction goal?

Total productivity management promoted by Japan Management Association, covered as a chapter in the Maynard Handbook (5th Edition) advocates setting up targets for cost reduction and productivity improvement. Similarly, Yamashina talks of manufacturing cost reduction deployment as a strategic decision in his world class manufacturing implementation. Total industrial engineering is one of the pillars of WCM promoted by Yamashina.

2. Are you planning to realize experience curve effect benefits?

Experience or learning curve effect is identified as one of the strategic cost drivers by strategic management literature in implementing cost leadership strategy (Creating and Executing Strategy: The Quest for Competitive Advantage, 14 Edition, Arthur Thompson Jr., A.J. Strickland, John E. Gamble and Arun K Jain, Tata McGraw Hill, 2006  p.119). Companies have to determine the slope of their learning curve and assess whether it is in line with the industry and have to take actions to improve learning in organization. Hence they have to plan to realize the experience curve effect.

3. How much of the cost reduction - productivity improvement should come from specialist industrial engineers and other engineers and managers?

F.W. Taylor (1911)  identified that production work was being carried out without the support adequate science. Taylor developed science of machine working as well as manual working in certain activities and developed his scientific management thought and promoted industrial engineering as a subject and as a full discipline in engineering institutions.  He recommended specially educated and trained industrial engineers to take up the work of developing science in various production activities and improvement of production processes using the science. According to Taylor, foreman at that time was already overloaded and similar is the case with senior production managers also as they were working without the support of staff specialists.

By 1930s, the situation changed. Alan Mogensen identified that processes redesigned by industrial engineering using the recent discovered science can further be improved by the involving operators and supervisors as they observe many minor improvement opportunities in the doing the work day after day. He came out with work simplification program to involve operators, supervisors and engineers in operation/process improvement. According to Allen Mogensen, Work Simplification is the organized use of
common sense — on the part of everyone Involved — to find easier  and better ways of doing work.

Toyota Motors made exemplary use of utilizing the knowledge of every body in the production system to improve processes and operations. Now companies have a policy choice to make. What proportion of planned cost reduction will come from science/analysis based projects from industrial engineers and what proportion will come from line organization. The targets have to be included in the budgets of the various departments accordingly.

4. What will be the ratio of industrial engineers to other engineers and managers?

This decision is contingent of the decision above. The company has to employ some industrial engineers to promote total industrial engineering. Above that the number of IEs to be employed and their engineering background, and functional experience depends on the company's policy decisions regarding the planned cost reduction and responsibility given to IE and line departments.

5. What bottlenecks or limiting factors have you identified in you facilities?

Manufacturing cost reduction deployment is a topic in project appraisal chapter of financial management books as well as engineering economics and managerial economics books. They recognize that certain project proposals contain cost reduction a the benefit of the project. Yamashina in his WCM explicits recognizes cost reduction projects as a major input into the budgeting process and comes out with a mathematical model to select a cost reduction project portfolio for the coming period. In this context, company has to identify its limiting factors or bottlenecks whose productivity has to be improved by employing industrial engineering techniques. Based on this identification, the company personnel may come up with productivity improvement projects that make a significant improvement in the operation of the bottleneck facilities.

6. What techniques are going to receive special emphasis?

IE techniques are continuously refined and new techniques are being developed. The company has to opportunity of taking decisions on the intensive use of some techniques during the coming periods. For example many companies in India are now focusing on six sigma and industrial engineering techniques named as lean manufacturing or Toyota Production System to realize cost reduction and productivity improvement.

7. What is your training plan for specialist industrial engineers and other engineers and managers?

Based on the strategic decisions in the area of industrial engineering, the company has to conduct training programs to sensitize the employees on the need to use specified techniques and provide skills to those employees who presently do not have them. There is always a need to share recent success stories within the company as well as from other companies.

8. What is the top management attention to industrial engineering - productivity improvement - cost reduction activity?

If productivity is a strategic issue (it is for many companies as world's top companies declare their productivity improvement and cost reduction targets - Volkswagen and Coca Cola in 2014), top management has to participated in planning, organizing, resourcing, directing and controlling productivity improvement. They need to allocate time and participate in various activities related to productivity. Long time back, when Birla group was introducing WCM, in the first work shop of defect or waste identification, it was said that K.K. Birla, the chairman of the group himself participated to observe the work place and identify waste. Motilal Oswal, Motilal Oswal Securities Limited was another CEO, who participates in many training programmes organized by the company with enthusiasm.

9. What is the research and development budget for IE activity?

If companies have to use industrial engineering and enjoy the increased profits, they have to contribute to its theoretical development and first time application of the theory in company systems. Theoretical development is referred to as research and first time application is referred to as development. While, the big companies have a major responsibility to fund big projects, even smaller companies can contribute through their industry associations, industrial engineering professional organizations. In the context, it is important to note that the 2014 National Conference on Industrial Engineering by NITIE, was sponsored by BHEL, RCF, Neyveli Lignite Corporation and  Adani Gas Ltd.

Monday, December 1, 2014

33699 Productivity and Industrial Engineering in Bicycle Manufacturing

Atlas Cycles(Haryana)Ltd., Sonepat

The company is one of the biggest Bicycle manufacturing units producing most of the components under one roof. It has got a vast Press Shop, Machine Shop, Brazing Shop, Welding Shop, Heat treatment Plant, Paint Shop, Electroplating Plant and Assembly Shop spread over in a campus of 28 acres.

 The manufacturing facilities are supported by a modern tool room

Research & Development Department provides components and tool drawings designed with the support of CAD.  Necessary press tools, fixtures, jigs, special tools, templates and gauges are manufactured on high precision machine tools, like jig boring machine, spark erosion machine etc., in tool room. All the tools and gauges pass through Tools Inspection to ensure its precision and accuracy.

Gauge Control Cell of QA ensures timely calibration of all production gauges and measuring equipment used throughout the factory.

QA has got state of art Mechanical Laboratory having Tensile Testing Machine of different ranges upto 10 Tons, Optical Profile Projector, Spring Testing machine, Vickers Hardness Testers, Rockwell Hardness Testers, GSM Tester, Bursting Strength Tester, Cupping Value Tester, Rubber Abrasion Tester along with Special Testing Equipment for Handle, Pedal, Fork, Frame, Rim, Crank etc.

Chemical Laboratory of QA is equipped with paint test apparatus, carbon sulphur tester, hull cell apparatus, flash point apparatus, Kinetic viscosity bath, nickel - chrome plating tester, micro test for zinc and paint thickness testing, UV tester and Salt spray testing apparatus to provide assistance to receiving inspection, pretreatment plant, electroplating plant, paint shop etc.

The Integration of Research & Development, Tool Room, Manufacturing and QA activities has resulted in high and consistent quality level of the company products enhancing customer satisfaction.

Warehouse Productivity - Trek Bicycles

Uploaded by DSI

Productivity Gain in Production of Brompton Hinge

The Brompton hinge is the biggest change on the bike for 15 years, and technically one of the most challenging ever. Brompton finally placed an order for a Haas VF-1 40-taper vertical machining centre.
Before the arrival of the Haas, all of Brompton’s hinges were manufactured on a machine tool designed and built inhouse.  “The bespoke machine is fairly inflexible. So it was decided to replace it. However, the problem wasn’t finding a machine to do the job, it was finding a solution to the technical aspects of the project, such as the workholding, methodology and the ergonomics. It seemed there were a million ways of making the components, and they needed  the most efficient and cost-effective. Haas UK set about designing a method for clamping the cast-iron hinge, including a solution that would be able to compensate for the irregularities of the cast faces.

The solution is based on a Haas QuikCube multi-fixture system, where a hinge casting is loaded using an innovative locating/aligning mechanism. This is repeated four times – on the four faces of the cube – and the whole QuikCube is loaded on the VF-1. The rotary table and right-angle heads on the VF-1 mean that the hinges are completed in a single setup – four at a time – something that Brompton was never able to achieve previously. Tolerances are ± 0.05 mm on critical dimensions. The Haas VF-1 improved efficiency, reduced cost base and increased productivity by 20 percent with the same workforce. It also provided better accuracy  and flexibility to make different types of hinges. The cube can handle new parts. So just load the news parts and press the Cycle Start button for making different designs of hinges.

The operator has found programming the Haas as easy as riding a bike. Quoting the training operation as a “real success,” the operator is regularly shaving time from machining cycles. Important time savings are being realized and the Haas VF-1 will process 45,000 hinges required in a year with plenty of capacity for more.

DIY Bamboo Cycle Workshop

Crisil ratings commentary on Bicycle industry in India
China Number one
India Number two
cost reduction is critical

Bicyle materials - case study

Bicycle Manufacturing Process

3D Printing of Cycle frame
http://www.industrial-lasers.com/articles/print/volume-29/issue-3/departments/updates/first-metal-3d-printed-bicycle-frame-manufactured.html  UK based companies


Fatigue life improvement of Aluminum frame of a bicycle


http://www.greenlinebicycles.com/manufacturingprocess.php - In pictures

How a bicycle was made in 1945 - Video


India is the second largest producer of bicycles,  next  to china. It Produces around 1.26 crore bicycles every year. More than 90 per cent of the bicycle production in India comes from four bicycle companies,  Hero Cycles 35%, Atlas Cycles 24%, TI Cycles 18% and Avon 15%. Hero Cycles has grown to become the world’s largest bicycle maker.
http://www.niir.org/projects/projects/bicycle-bicycle-industry-bicycle-parts-bicycle-assembling-tyres-tubes-bicycle-components-spares-bicycle-accessories/z,,6c,0,64/   The link contains projects reports on various bicycle components.

Toyota Production System Industrial Engineering - Shigeo Shingo

Shigeo Shingo said 80% of the TPS is waste elimination that is industrial engineering, 15% production management and 5% kanban communications.

Toyota production system was developed by managers of Toyota with major contribution from Taiichi Ohno by implementing waste elimination methods advocated by industrial engineering. Taiichi Ohno specially applauds industrial engineering as profit making engineering for Toyota. Shingo builds up on the Ohno's explanation of TPS by clearly bringing out the role of industrial engineering in the development of TPS in his book.

Summary of Shigeo Shingo's Book - A Study of the Toyota Production System

Summary of Chapters 1 to 3

Chapter 4  Conclusions of Developing Non-Stock Production 

The prinicipal feature of the TPS is eliminating the total cost associated with inventory - the total of inventory carrying cost, setup or order cost and shortage cost. Hence, TPS is described as stockless or non-stock system.

Stock occur due to two reasons:

Naturally Occurrence:

Stock accumulates because of
* Incorrect market demand forecasts
* Overproduction just to be on the safe side due to likely defects
* Lot production (Batch production)
* Due technological and capacity constraints in certain processes. Heat treatment in three shifts but doing further operations in one shift.

Stock that get accumulated due to inefficiencies in the production system
* Production cycle being longer than order-to-delivery cycle.
* Stock produced in advance to take care of extra demand in the future
*Stock produced to compensate for delays in inspection and transport
* Stock produced to compensate for machine breakdowns
*Stock maintained as buffer between machines to take care of defectives
*Stock generated as per calculation of economic batch quantity to take care of high setup or order cost.

Stock reduction was carried out rationally in Toyota production system.

Three strategies can be pursued to approach the idea of non-stock production.

* Reduce the production cycle
* Eliminate the breakdowns - do preventive maintenance to make the machine available all the time for production (Total productive maintenance)
*Eliminate defect - zero defects through process improvement - detect the reasons for defects and remove
them from the process. 
* Reduce setup times and reduce batch quantity to single piece.

Chapter 5 The Principles of the Toyota Production System

The Toyota Production System is 80 percent waste elimination (Industrial Engineering), 15 percent production system and only 5 percent kanban communication.

Some Commonly Used Terms in TPS

Waste of Overproduction

There are two types of overproduction:
* Making more than required quantity for a delivery period.
* Making a product before it is needed.

Many systems are happy to produce an item before its delivery date and feel comfortable. But Toyota system does not want both types of overproduction.


JIT also means just-on-time. An item should be made available when it is required not before or after the required time.

Separation of Worker from the Machine

The whole productivity movement of Toyota was based on the fact that per worker production of cars in America was 10 times that of Toyota company. Toyota wanted to improve their productivity and therefore concentrated on reducing the time spent by a worker on the machine. Machines must work without the assistance of the worker as much as possible. Jidoka or autonomation is the name given to this activity. Along with JIT or stockless production, separation of worker from the machine forms the two pillars of Toyota Production System.

Low Utilization Rates

Toyota's machine-output ratio is two to three times  that of similar companies. This could be due to flow production systems or due to planned extra machine capacity to take care of extra demand. But one must always remember that Toyota's main goal is cost reduction and every decision in Toyota is subjected to engineering economic evaluation.

Multi-machine Handling

In 1955, 700 workers were handling 3500 machines. Hence sometimes machines are idle because worker is busy with other machines and cannot load the machines. Toyota permits machine idle times but it does not permit man idle time. The reason is that a machine costs $500 per month but a man costs twice or thrice more.

Equipment Planning and Low Operating Rates

As low operating rate is expected, Toyota buys less expensive machines. But it improves the machines to suit its requirements continuously.  Because in normal times machines have excess capacity or low operating rates,  peak demand can be handled by hiring temporary workers.

Perform Operation and Remove the Defective Part

Whenever a problem appears, Toyota insists on proper diagnosis of the root cause and demands that an operation is done to remove the replace the defective part of the process. It is not content  with the temporary cure of rework on the defective workpiece.

Fundamentals of Toyota Production System

Adopting a Non-Cost Principle

Elimination of Waste

Eliminating waste through fundamental process improvements
               Processing purpose evaluation and rationalization
               Inspection purpose evaluation and rationalization
               Transport purpose evaluation and rationalization
               Delay reason evaluation and rationalization
               Storage purpose evaluation and rationalization

Eliminating waste through fundamental operation improvement
               Setup improvement
               Auxiliary improvement
               Job allowance improvement
               Workshop allowance improvement
               Improving processing and essential operations

Ask the "five W's and one H" and "Why?" Five Times

              What -  What is being produced  - Is it required - Value engineering
               Who - Men, machines, tools and jigs used for the production
               When - Time  - Production planning also comes here.
                Where - Space (Layout)
              Why - rational for the use of everything used in production. Because it provides opportunities for improvement.
              How - The methods - motion used by man, speed and feeds used by machines

At Toyota specially, 5 Whys are used to identify root causes for defects and appearance of problems.

Mass Production and Large Lot Production are not same

Mass production is beneficial. Large lot production has extra cost. It can be reduced with SMED.

Order-based Production

Characteristics of Order-based Production

To take care of fluctuations in the orders, Toyota sets basic productions capacity at minimum demand level and handles increases through overtime and the use of excess machine capacity and temporary workers.

Overtime: There are four hour breaks between the two shifts and overtime can be given in either shift as needed.

Excess capacity: During the minimum load, many workers manage ten machines but up to 50% capacity only. As demand increases, temporary workers are hired and machines can work at 100% capacity. But machine work has to be simplified and standardized so that temporary workers can be trained in three days and they operate the machines.

Strong Market Research

Toyota does spend on market research to know market requirements. Twice in a year 60,000 people are surveyed. Five or six additional surveys are done in a year.

Production Planning

Long term planning is done.
Annual planning is done.
Monthly planning is done.
Daily planning is done. Daily planning based on actual orders. The actual orders are informed to the first stage of assembly section and they draw the components as required from component supply stages.

Toyota's Supermarket System

In the supermarket system of Toyota, stocking is triggered by actual demand for the components for a daily requirement.

Differences between Ford and Toyota Systems

Large lot versus small lot production

Mixed model assembly in Toyota system

More consistent one piece flow in Toyota system

Chapter 6  Mechanics of the Toyota Production System

Improving the Process - Schedule control and Just-in-Time

Toyota makes efforts and reduces production cycle.

Seven Principles for Shortening the Production Cycle

Reduce process delays
Reduce lot delays
Reducing production time
Employ layout, line forming, and the full work control system
Synchronize operations and absorb deviations
Establishing tact time
Ensure product flow between processes

Adopting SMED

Elimination of Defects

Inspection to prevent defects must be practiced.

100% inspection must be adopted.

Poka-Yoke has to be used as a means for zero defects.

Eliminating Machine Breakdowns
It is also process improvement in TPS. Workers are asked to stop  a machine if there is some trouble. Supervisors are given training and are urged to try to keep machines running. When a trouble appears, a visual indication is given and all try to take care of the problem. Preventing recurrence is the motto of TPS.

Chapter 7 Mechanics of the TPS

Improving Process - Leveling and the Nagara System

What is Leveling?

Leveling is a method of balancing load and capacity in a way different from the traditional way.
For example if load on car assembly plant is 300,000 sets of model A, 600,000 sets of model B and 900,000 units of model C and capacity is 1,800,000 units, the traditional solution is  to make 300,000 sets of model A and 300,000 sets of model B in the first 10 days, 300,000 sets of model B and 300,000 sets of model c and in the next 10 days, and 600,000 units of model C in the last 10 days. The load is balanced at the month level, but it gives rise to inventories of various models and even shortages of some models.

 But Toyota followed a different way because it has as its aim prevention and reduction of over production. In the first 10 days, production of 100,000 units of model A, 200,000 units of model B and 300,000 units of model C are produced. We can see now that inventory will come down. It the 10 day planning/production period can be further reduced, all models are produced in much smaller periods the over production can further be reduced. Toyota uses this approaches and reduces the planning period in which all models are made further and further. This is called "mixed production" and on assembl line it is called "mixed model assembly."

Segmented Production

Making production plans for half a month(H), ten days (T), week (W) and Day (D) are segmented production plans.

Mixed Production and Tact Time

Toyota combines product A with 30 Seconds and product B with 25 seconds and specifies 55 seconds as tact time for A+B.

Nagara System

The nagara system facilitates one piece flow by laying out machines in the sequence of operations by transcending the earlier shop divisions and training and facilitating operators to operate mutliple unrelated machines in sequence.

Smooth production flow, ideally one piece at a time, characterized by synchronization (balancing) of production processes and maximum use of available time; includes overlapping of operations where practical. A nagara production system is one in which seemingly unrelated tasks can be produced simultaneously by the same operator.

Nagara is multi-machine handling in a process or flow system. The operator works with two or more different machines.

The example given in the body refers to a spot welding operation, followed by a press operation and then a welding operation that attached the pressed part to a body.

Chapter 8 Mechanics of the TPS

Improving Operations

Operations concern the flow of equipment and operators in time and space. Improvements in operations have long been emphasized in the Toyota Production system.

Components of Operations

1. Preparation and after-adjustment
2. Principal operations
3. Marginal allowances

Preparation and After-Adjustment

Reduce them through SMED

Margin Allowances

Personal allowances - For fatigue and personal needs
Non-personal allowances -
Operational allowances: Oiling, clearing away chips etc.
Workplace related: parts arriving late and machine breakdowns

Standard Operation and Standard Operation Sheets

Standard operation implies optimization of work conditions by analyzing

What is produced
Who - persons, machines, tools,and jigs
How - Method - machine speeds and feeds, man's movements
Where - Layout of the equipment and man - Work Station Design
When - Standard time, and Schedule

There has to be a standard operation sheet by the side of the machine using which new workers are trained.

The Toyota system demands that all work is done within standard time and supervisor is charged with the responsibility. He has to train the worker. Also supervisor is responsible for improvements.

Types of Standard Operating Charts

Capacity charts by part
Standard task combination
Task manual
Task instruction manual
Standard operating sheet

The topic of standard operations is discussed in more detail in
Standard Operation and Standard Operation Sheets in Toyota Production System

Improving Methods of Operation

The operation, which is a man-machine combination can be improved through:

1. Improvements in human motions
2. Improvement in machine movements - increasing machine cutting speeds, reducing time through simultaneous cutting on multiaxis machines, and using multiple turret heads to shorten tool replacements.
3. Mechanizing human motions.

Improving human motions

Motion study can be used to reduce the operation time or the operator time. Motion study improves the movements or motions made by the operator and also improves the arrangement of materials and tools. 5S movement of Japanese industry is basically the offshoot of principles of motion economy.

Items must be arranged neatly, they must be easily accessible and they must be uniformly aligned.

Improvements in Machine Movements

Examples include raising output by increasing machine cutting speeds, reducing time through simultaneous cutting on multi-axis machines, and using multiple turret heads to shorten tool replacement time. This could involve using faster cutting processes like milling in the place of slower process like shaping.

Mechanizing Human Motions

In Toyota, first the human motions are optimized and then mechanization is attempted. Whenever mechanization is thought of its economics are thoroughly investigated. Toyota insists on kaizen - good change.

Machine Layout and Worker Efficiency

Workers are stationed with in a U layout so that they can easily help one another in case of need. Toyota encourages workers to assist each other in case of need or necessity. It discourages island mentality.  The system requires each worker to learn the operations performed at the two processes adjacent to his or her own and help the others when needed.

Multiple Machine Handling Operations

In 1955 itself, Toyota operated 3,500 machines with only 700 workers.  So one worker operates five machines on an average. In recent years (1981), Toyota managers started advocating multi-process handling. In multiple machine handling, the worker may handling the same type of machines. But in multi-process handling, the worker will handling multiple machines in accordance with the flow of operations or process. The capability of multi-process handling by a worker improves the flow of the process and also improves productivity.

Shingo's Summary of the Toyota Production System - The Last Section of Chapter 8

Basic Features of the TPS

# Cost Reduction through Industrial Engineering methods (elimination of waste)
# Emphasis on non stock production - elimination of overproduction
# Emphasis on labor cost reduction through elimination of waste motions and use of minimal permanent manpower.
# Use of SMED to have low set up times and realize small lot production. Ideal: One piece flow.
# Use order based production
# Follow the rule quantity produced must be quantity ordered.

Process Features of TPS

# Active use of value engineering to optimize the design itself.
# Make effective use of division of labor in design of process
# Using Nagara system
# Inspection - depend on self inspection, successive inspection and poka-yoke
# Trasportation - Use flow lay out through out the production system.
# Delay - All operations must have equal times as far as possible. Avoid process delay.
             - Lots must be small - Avoid lot delay

Operation Features of TPS

# Use of SMED and its advanced and automated form one touch setups
# Use autonomatic machines as much as possible rationally (based on engineering economic analysis)
# Use nagara system (machines laid out in flow and operators handling multiple machines in the flow line.
# Autonomate material loading and unloading
# Encourage cooperative  work and eliminate isolated person mentality. Operators have to help the upstream or downstream colleagues as needed and as possible.
# Actively pursue minimum manpower deployment in the production system.

Toyota production system brought two revolutionary changes in the production system thinking and practice.

First one is the thinking that market should pay cost plus profit. Toyota changed it to market expansion through cost reduction and price reduction achieved through identifying and eliminating waste from the product  and production system design and operation.

Second,  the traditional thinking was mass production in large lot based on forecasted demand and keeping inventories. Toyota changed it to small lot production based on no inventory and actual orders.

Based on the above two changes, Shingo concludes that Toyota Production System represents a revolution in production philosophy.

Chapter 9 The Evolution of the Kanban System

Kanban and Railway Tablet System

Ohno discussed the introduction of Kanban system with Shingo. Shingo remembered the tablet system in railways which is exchanged between the driver of the train and the station master. Until the tablet is put into a track switches, the station master cannot allow another train to get into the track segment. Similarly the station master removes the tablet from the next segment of the track and gives it to the driver. The driver cannot move from the station unless he was given the tablet. May be there is a system that will allow the tablet to be removed only when the earlier train completed its journey in the track segment. Shingo felt Kanban system was similar to it.

Then Shingo brings into discussion the order point formula.

Order point is equal to consumption during lead time plus the safety stock.
The batch quantity has to be more than the order point. Reduction in set up time allows the reduction in batch quantity and any reduction in production lead time results in reduction of order point. Thus each improvement in set up time can reduce batch quantity and resulting lead time reduction can reduce order pont. Similarly, by attacking root causes that create the need for safety stocks like appearance of defects, machine breakdowns, worker absenteeism, material shortages can reduce safety stocks. Thus measures can be taken to reduce inventories in the system.

Supermarkets and the Kanban System

1. Consumers choose goods of their choice and take the items to the cash counter.
2. The store personnel restock, what has been removed by customers.

Using Kanban for communication is similar to the super market system.

Kanban meaning "Sign" in Japanese language has the three functions.

1. Identification tag - indicates what the product is.
2. Job instruction tag - indicates what is to be made, quantity and time
3. Transfer instruction tag - indicates where the item is to be delivered.

Kanban is also treated as a signal to make a pallet load of parts. Hence the number of kanbans or pallet loads permitted as work in process inventory is an important number.

Number of kanbans or pallet loads permitted as WIP (N) =
[Maximum stock permitted = Batch quantity + safety stock]/Capacity of one pallet (n)

In Toyota system, there are efforts to reduce WIP continuously to zero.

To make the lot size one and WIP zero various steps like implementing SMED, Minimum transport layouts, zero defect and zero breakdown programs etc. are necessary.

Regulatory Function of Kanban

Giving production instructions at the final assembly line allows the kanban system to make transmit the information on new car models (model required by the customers) automatically and easily to upstream processes.

Chapter 10. Elimination of the Seven Kinds of Waste

1. Processing

Value analysis and engineering needs to be made. Also purpose analysis needs to be done.

2. The waste of making defective products

Poka-yoke needs to be used to prevent defects. Self inspection and successive inspection are to be promoted.

3. Transport

Improve the layout and reduce the need for transport.

4. Delay

Use small lot sizes and minimize delay for the jobs. Allot multiple machines to workers such that there is no waiting time for them. If needed machines can be idle.

5. Inventory

Use SMED and one piece flow and reduce production cycles.


6. Wasted Motions

Do motion studies

7. Overproduction

Reduce production for inventory rationally. Use SMED and decrease lot sizes. Improve informative inspection and avoid defects. Maintain machines such that there are no breakdowns and machines are available production all the time. Produce just-in-time for stockless production.

Kanban Rules

1. A process withdraws parts from the preceding process as per Kanban instructions and removes the Kanban from the pallet and leave the kanban there.

2. The earlier process makes parts in the quantities and order specified in the kanban that they pick up from the storage bin.

3. Nothing is transported and nothing is made without kanban.

4. Kanban always accompanies the parts themselves (identification tag must always be present.

5. Every part placed on a pallet must be of acceptable quality.

6. Efforts are to be made to reduce WIP by reducing kanbans over time.

Extending the System to Parts Suppliers

Toyota did not order suppliers to supply on JIT basis. It implemented JIT in its plants over a period of 20 years and then helped suppliers to implement it over a period of 10 years. Suppliers did not suffer because of the change but benefited through increased profits.


Shingo said MRP is not committed to the fundamental improvements like SMED, Zero defects and Zero breakdowns like TPS.

Shingo gave the opinion that companies may use MRP after doing fundamental improvement to the system as done by Toyota.

Chapter 11 - The Future Course of the Toyota Production System

Shingo says people say Just on Time is better tern than Just in Time. But the JIT has become a popular term.

Shingo mentions some steps that companies can take to get orders early and thus increase order to delivery period.

* Soliticit advance orders from previous users based on life expectancy of the purchased item.
* In the case of car, approach persons learning to drive.
* Approach people who are getting their building licenses or permissions
* Contact printing presses who prepare wedding invitations, find out the bride and bridegroom and propose various household appliances.

The above things point out to events that precede actual demand and action by sales people can give larger order-to-delivery period.

Of course, actions to reduce production cycle has to go on.

Companies have to move from SMED to One-Touch Setups

No-touch methods

Shingo points out that manufacture can be done in sets, so that one component is made after another component without the operator touching the machine. It means that even change of component is automated.

The Development of a Comprehensive Flow System

TPS presently uses supermarket system. Can it be eliminated and the entire system be made a flow system?

Extending mixed production to machine shop, presswork, welding, forging and casting.

Kanban System Developments

Shingo says he foresees further reduction in Kanbans between processes means less WIP.
Second,. Shingo says the Kanbans can go to further upstream proceses instead of the preceding process and thus helping in cutting WIP further.

Developing low cost machines and implementing multi-process handling
It needs to be extended to all the production system.

Extending to Supplier Plants

Efforts will be made to spread the TPS to the entire supply chain.

Chapter 12  - Introducing Toyota Production System

Introducing and Implementing the Toyota Production System - Shigeo Shingo

Chapter 13. The Toyota Production System in Summary

1. The Minus-Cost Principle
2. Non-Stock (JIT) - The First Cornerstone of Waste Elimination
3. Toward Flow Operation
4. Shortening Setup Changeover Times
5. The Elimination of Breakdowns and Defects
6. Fusing Leveling and Non-Stock Production
7. Toward Comprehensive Integrated Flow Operations
8. Labor Cost Reduction (Autonomation): The Second Cornerstone of Waste Elimination
9. From Mechanization to Autonomation
10. Maintaining and Developing Standard Operations
11. Toward a Kanban System

Chapter 14 Afterword

A thesis will have antithesis in dialectics.
There can be a compromise between the two to satisfy both the groups at a point in time.

But Shingo says, the proponents of thesis can try sublation.
What is sublation?
In it's basic meaning, it stands for raising something, from a lower place to a higher place.  Hegel, the famous proponent of dialiectics, uses meaning and advocates the need to take the original thesis to a higher level, by preserving what is good in it and improving the disadvantages indicated by the antithesis.

Shingo gives the example that non-stock required deliveries from suppliers every two hours.  The opposing argument pointed out that truck efficiency of the supplier or from the supplier end will go down drastically and will result in increased cost. This disadvantage assumes that one truck will carry the load of one supplier. The sublated solution was that a truck was going to various suppliers and collecting material from them. So trucks were loaded to capacity and trucking cost was not allowed to go up. Thus a higher-level plan involving a totally new method - frequent mixed load deliveries emerged.

The disadvantage of smaller lot sizes was tackled by reduction of set up cost through SMED.

The sublation approach is used in many problems in Toyota.

The primary features of the Toyota production are:
1. Elimination of waste based on the belief that a company's only legitimate source of profits is cost reduction.
2. Satisfy demand through order based non-cost production.

The TPS has been compared to squeezing water from a towel thought to be dry. Many people settle for placing that towel under sun to dry further. But there are some people who squeeze the towel further and bring out some more water. Similarly there are many who eliminate waste that everyone recognizes as waste. Certain problems are allowed to exist in companies are necessary evils and people have become hostage to them. But in TPS, such problems are understood with detailed observation supported by deep thinking and problem solving  goes back to basic issues from which designs emerge to make revolutionary improvements.

Anyone undertaking the study of the Toyota production system comes face to face with SMED concept. Shingo said, "It is developed by me." SMED is now a theory and technique. It is now employed in hundreds of Japanese companies.

TPS is not entirely different from ordinary production management systems. But has unique concepts and special techniques to implement them.  It would be dangerous to take any of the techniques of TPS and implement it in a hurry. This will lead to problems. Shingo himself gave a plan to implement the techniques in a sequence.  One should not rush in to implementation of techniques. The objective is cost reduction and as long as the objective is being achieved, there is no need to rush into techniques. The importance is to be given achieve cost reduction in a continuous way and the next priority is schedule of implementing the next technique.