Industrial Engineering is Human Effort Engineering and System Efficiency Engineering.
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Design of Work and Development of Personnel in Advanced Manufacturing
John Wiley & Sons, 16-Mar-1994 - Computers - 578 pages
This important work was designed as a companion volume to Organization and Management of Advanced Manufacturing. Together, these two volumes cover the spectrum of human factors issues relevant to the design, operation, and management of advanced manufacturing technology. Today, as manufacturing enterprises become more and more computerized, it is clear that their economic success will depend, to a large degree, on the symbiosis of social, technical, organizational and management, and ecological design efforts. This book reflects three major trends that have developed in this new era of manufacturing: the rapid spread of manufacturing capabilities worldwide...the emergence of advanced manufacturing technologies...and growing evidence that appropriate changes in traditional management and labor practices and organizational structures are needed. Design of Work and Development of Personnel in Advanced Manufacturing explains the urgent need for explicit philosophical acceptance of the vital importance of human work design and development of human resources in advanced manufacturing. Design of Work and Development of Personnel in Advanced Manufacturing presents a framework of problems, issues, and solutions which are relevant to the design of work and effective development of personnel in advanced manufacturing systems. It addresses problems that are experienced worldwide in the industry. The book covers problems of work design and analysis in advanced manufacturing - specifically such ergonomics design issues as cognitive task requirements, human supervisory control, development of human skill, educational requirements, technical choice from a technological perspective, and the dynamics ofhuman performance variability, including fatigue and boredom effects in automated systems. The book discusses the various problems of personnel development as they arise in the context of computer-aided decision support for human-based activity domains as manufacturing process planning, scheduling, maintenance, reliability, inspection, and product quality. Finally, the book discusses future trends in computer-integrated rather than computer-interfaced manufacturing technology, and related human factors issues. Design of Work and Development of Personnel in Advanced Manufacturing will prove to be invaluable to industrial and production engineers, plant managers, human resource personnel, researchers, and students.
14 April 2015
Research published recently in Nature Climate Change Letters shows battery pack costs may in some cases be as low as US$300 per kilowatt-hour today, and could reach US$200 by 2020. The cost is decreasing at a faster rate.
Deep Cycle Battery 101 Manufacturing - YouTube Video
Top Manufacturers of Lead Acid Batteries
In USA, Johnson Controls took the highest market share for a single vendor in lead-acid market in 2010, with over a quarter of the market share. Other vendors, such as Exide Technologies, GS YUASA, Enersys, and East Penn, took less than a 10% market share each. Other than GS YUASA, all of the top five vendors belong to the United States. GS Yuasa is market leader in Japan and also in Global sales. http://www.systems-sunlight.com/blog/global-lead-acid-battery-market-development-status/
This article is an adaptation of the view expressed by Salvendy in the 2001 Handbook
HANDBOOK OF INDUSTRIAL ENGINEERING
Salvendy states that improving technology to increase efficiency and quality at the work cell level was the initial focus of ISEs. He recommends that now ISEs need to focus at enterprise level and supply chain level.
Salvendy also highlights the role of work measurement as a device to quantify improvement. Then he advocates that many more things are to be measured now and ISE has to come forward and measurement. It is very interesting presentation and every IE needs to read it.
Operations Improvement Role
The traditional role of ISE is that of problem solving and operations improvement. Improvements in efficiency, quality, and technology (e.g., methods, hardware, software, procedures, processes) belong to this category. ISE's use of classical methods improvement techniques, operations research,
human factors, modern manufacturing methods or management systems methodology results in changes in how things are done and these changes have to be such that total system performance is improved. Traditionally, ISEs have operated at the work center level. Over the past 30 years (reference to 2001) the scope of the system of interest has broadened.
Unfortunately, industrial engineering tended to lag behind other disciplines in the evolutionary process. Our profession has missed opportunities to continue to add value over the past 30 years. We believe that the decades to come will provide opportunities for ISE to reintegrate and reposition itself as a leader and doer in the field of performance improvement. This requires rethinking the role and relationship among positioning and strategy, conditions for success, and operations improvement.
The author say that their contention is that the bulk of the Handbook focuses on the traditional ISE role in achieving operations effectiveness. However, in the first chapter, they covered a couple of areas of operations improvement that they felt might not have been represented or covered adequately. These ares are: systems and process improvement (more specifically, business process reengineering) and measurement systems.
Business Process Improvement
The term unit of analysis applies to the scope of the system of interest. When IE first began, the unit
of analysis—the scope of the system of interest—was confined to the worker, the work cell, and
individual work methods. Over time, the scope of the system of interest to the ISE has increased to enterprise and now further to supply chain optimization . Attending to larger units of analysis is a ‘‘transcend and include’’ strategy.
This migration to a larger system of interest also happened to process improvement. The focus on improving embedded processes has shifted to an enterprise-level focus on improving business processes. Once again we see the transcend-and-include principle being required. A business process begins and ends with the customer. Organizations can no longer afford to optimize a subsystem (embedded process) at the expense of the performance of the larger system (business process). So the techniques and methods that were employed to improve smaller processes are being adapted and enhanced with some expertise borrowed from organizational leadership and management of change, creating a whole new line of business for a large group of professionals.
First, systems thinking is required to do BPR. ISEs are trained to think systems. Second, many of the substeps in the process require specific knowledge and skills that ISEs are grounded in. We understand that ISEs are involved in many BPR efforts in organizations today. We also know that many BPR efforts are information technology-driven and many exclude ISE involvement. We believe this is an error that leads to underperformance.
Building Effective Measurement Systems
Work measurement and methods engineering are terms that have traditionally described actions taken
to quantify the performance of a worker or a work unit and to improve the performance of the
individual and the unit. The relevant body of knowledge has been developed and preserved through
the entire history of ISE. Throughout that history, one principle has served as its unifying force: an
appreciation for and the applied knowledge of systems. In fact, Frederick Taylor (1856–1915), who
is generally recognized as the father of industrial engineering, wrote in 1911, ‘‘The system must be
first.’’ Methods engineering was pioneered by Frank Gilbreth and his wife Lillian, whose lives were
memorialized in the Hollywood film Cheaper by the Dozen. Soon after methods engineering began
to be practiced, the need for measurement technology became clear. This was inevitable. Once analysts proposed improvements to the way a job was done, natural curiosity led to the question ‘‘How much better is it?’’ The ISEs translation of and response to that question led to the development of tools and techniques for measuring work.
More recently, the importance of methods engineering and work measurement was underscored
by the late W. Edwards Deming in his legendary seminars. He argued that insufficient thought and
planning went into the design of work systems. The lack of sufficient high-quality output, he taught, stemmed not from poor worker attitude, but from poor management and poor design of the methods, tools, and systems we provide to the otherwise willing worker.
Dr. Deming also promoted the ISEs contribution through work measurement with his insistence that decisions regarding process improvements be data driven. In practice, this means that effective systems improvement activities require evidence as to whether the changes make any difference. The requirement is that we use our measurement expertise to quantify the results of our efforts to design and implement better systems.
The ability to measure individual and group performance allowed organizations to anticipate work
cycle times, which led to more control over costs and ultimately more profitability and better positioning in the marketplace. Understanding how long it actually takes to do a task led to inquiry about how long it should take to do work through the application of scientific methods. Standard times became prescriptive rather than descriptive. The next step in the evolution was the integration of production standards into incentive pay systems that encouraged workers to exceed prescribed levels of output. Application of extrinsic rewards became an additional instrument in the ISE toolbox,
vestiges of which linger on.
So much for the evolution of the work measurement and methods aspects of traditional ISE
The following are some evolutionary enhancements that have become part of the ISE measurement
• Statistical thinking plays a more critical role in understanding work performance. Variation is
inherent in all processes and systems. Discovering the underlying nature of variation and managing
the key variables to reduce defect has become now an important activity under name of six sigma.
• The role of production quotas is being reexamined. Should we throw out all standards, quotas,
and targets, as Dr. Deming suggested? We think not. We contend that the effective approach is
to establish a system within which teams of employees hold themselves and each other accountable
for system performance and are encouraged to reduce variation and improve performance
on their own. Standards that control and limit employee creativity should be eliminated.
The key is understanding performance variation and what causes it and creating a partnership
with employees so that they are integral members of the team working to improve it.
• Work measurement and methods improvement became detached, to some extent, from the larger
system of improvement efforts. Today, efforts to improve what workers do and how they do it
is being tied to overall business strategy and actions. This means that measures of performance
at the work unit level will have to be tied to and integrated with measures of performance for
larger units of analysis. Linkages between individual worker and team performance and system level
measures of performance are becoming better understood and managed. Here again, the authors'
message is ‘‘transcend and include.’’ Efforts to understand how long something does or should
take at the employee or work center level will expand to include understanding of how the unit level
systems need to perform in order to fill the treasure chest of the organization.
• Time and quality are no longer the only indicators of organizational performance. The balance score card approach recommends a set of performance indicators, including efficiency, effectiveness, productivity, financial performance, quality of work life, customer satisfaction, and innovation (Kaplan and Norton 1996).
• Visibility of measurement systems and portrayal of performance data are being recognized as
critical elements in the deployment of enhanced measurement systems. Traditionally, a worker
knew the standard and that was it. In the future, employees at every level of the organization
will have continual access to their scorecard indicators. Furthermore, they will be aware of how
these measures are linked to the performance of more inclusive systems. For example, employees
at the checkout counter will understand that their behaviors and attitudes influence whether
the store is a compelling place to shop and will have data to tell them how this helps to fill the
treasure chest and how that affects them. As a result, daily, hourly, moment-to-moment
decisions will be made on the basis of visible data and facts.
The ISE's have to participate in the design, implementation, and maintenance of these comprehensive and very visible measurement systems.
Organizational Systems Performance Measurement
An organizational system is two or more people whose activities are coordinated to accomplish a
common purpose. Examples of organizational systems are a work unit, a section, branch, plant,
division, company, enterprise.
The management system consists of three elements: who manages, what is managed, and how managing is accomplished. In a traditional organization, ‘‘who’’ may be the manager; but in the contemporary organization, ‘‘Who’’ refers to a management team. For the long-range planning horizon, the management team establishes the goals and objectives—the vision—of what the organization is to become. In the short time horizon, levels of system performance must be specified. The ‘‘What’’ is the system that is being managed; the organization, system, or process of interest, the object of the management efforts. ‘‘How’’ refers to managerial processes and procedures and more specifically to the transformation of data about the performance of the organization (‘‘What’’) into information regarding the need for actions or interventions.
The management system model can also be characterized as a feedback or closed-loop control
system. In this version, the management team is the controller (who), the process is the system being
controlled (what), and the instrumentation (how) monitors the system states and feeds these back to
the controller so that deviations between the actual and the desired states can be nulled. The interfaces between each of the elements also represent the management process. Between the ‘‘what’’ and the ‘‘how’’ elements is the measurement-to-data interface. Between the ‘‘how’’ and ‘‘who’’ elements is the information portrayal/information perception interface. And between the ‘‘who’’ and the ‘‘what’’ elements is the decision-to-action interface. Viewed from the perspective of this model, the management of a function would entail:
1. Determining what performance is expected from the system
2. Monitoring the system to determine how well it is performing in light of what is expected
3. Deciding what corrective action is necessary
4. Putting the correction into place
Note that any embedded organizational system is operating in the context of a larger system and
the linkages are critical to total system optimization (Sink and Smith 1994).
This model provides the frame and the outline to be followed in building an effective measurement
What constitutes success for an embedded system must be clearly understood and operationally defined. The model for success must also be operationalized and understood.
Without a clear, specific, focused understanding of what the key result areas and their related key performance indicators are, it is difficult for workers or managers to assess how they are doing and on what basis to make those assessments. The measurement system allows for effective Study (S) in the Shewhart/Deming PDSA improvement cycle. A modern measurement system will have to be comprehensive, well integrated, and strategic as well as operational. It needs to portray causal linkages from the system of interest to the next-larger system. This assists in ensuring that we do not fall into the trap of optimizing the subsystem at the expense of the larger system.
In our experience, ISEs understand measurement perhaps better than other disciplines. The key to ISE being better integrated to enterprise improvement is that ISEs apply their strengths in a way that avoids suboptimization and clearly ties to the higher organizational good.
Chapter XV EFFICIENCY PRINCIPLES APPLIED TO MEASUREMENT AND CURE OF WASTES
The ideal that inspires the formulation of the principles of efficiency is elimination of waste, of wastes of all kinds resulting finally in wastes of the collective human soul.
Elimination of all wastes may indeed be a Utopian ideal, not to be realized in the life of our planet, but any waste elimination brings its immediate reward.
The ideal of the Twelve Efficiency Principles is waste elimination, and to this end they have been formulated. The mere purpose for which waste is to be eliminated is not important.
No navigator, whether pirate or merchant-man, can make best time for himself and his
ship who does not know great-circle courses, the shortest path from port to port, who does
not modify his course as little as possible on account of intervening land, shoals, adverse
winds, or currents. No man can achieve greatest success for himself, whether malefactor of
great wealth or captain of industry, who does not eliminate wastes from his own operations.
There are ultimate ideals like universal peace, but a tremendously efficient present naval and
military organization may further universal peace far more effectively than inefficient senti-
mentality and, even as an efficient navy would be most reluctant to enter on an unnecessary
struggle (since its personnel by reason of its efficiency knows better than anyone else the
hideous waste and cost of war) , so it is almost impossible to conceive of an efficient leader
being a great malefactor, or of a great male-factor being efficient.
It would not be a risky experiment to imbue a criminal of any kind with the principles that
eliminate waste and to induce him to practice them, for in the end criminality and waste-elim-
ination are incompatible, and also virtue and waste are incompatible, and there is more hope
of bending the efficient sinner into paths of rectitude where he will accomplish much, than
there is of making ethical progress with the inefficient.
Why should we formulate principles?
Caesar, Hideyoshi, English statesmen, the founders of the United States,
Napoleon, Bismarck and von Moltke, transmitted organizations founded on principles.
Most American industrial plants and business houses have come to grief in the second genera-
tion, and even corporations resting on special privilege like railroads and street-car lines,
have passed into receivers* hands and undergone drastic reorganizations. In trying to con-
trol the great corporations, our statesmen, although men, are governed by intuitions not by
principles, fail to swing the general government into line to do its part ; they make the general
government maintain disastrous and wasteful competition when what is wanted is principles
that would work for elimination and equitable distribution of the immense gain.
Will the United States Steel Corporation endure? Not unless it succeeds in substituting
principles, efficiency principles, for the intuitions of Carnegie, of Schwab, substituting effi-
ciency principles even for the intuitions of that great genius, J. Pierpont Morgan.
The task before Judge Gary is a greater one than making steel, a greater one than harmoniz-
ing the steel producers of America, of the world; it is to inculcate those principles that
It has often happened that in industrial plants where high efficiencies were being ob-
tained, visitors confounding system with efficiency have come, have collected devices, cards
and forms, have gone away supposing they had the secret of efficiency. It is as if a man should
appropriate a lawyer's library and think this made him proficient in the law. There are mil-
ions of devices, forms, cards ; no one can grasp them all, understand them all, and the chances
are that not one of them will exactly fit in an untried place, even as no eye-glasses exactly
suit any other pair of astigmatic eyes.
When, however, all the devices and methods can be collected under a few heads — ten, twelve,
fifteen ; when it is possible to show that a few principles cover all the possible devices — then
the thinker can work backwards and ask himself what devices or methods or plans has he
that will maintain (for instance) ideals, or that will give him reliable, immediate, and adequate
It is easy to test the efficiency of a plant because inefficiency is due to one of two causes.
Either the principles of efficiency are not known, or they are not applied. If the principles are
not used, high efficiency is impossible; if they are theoretically approved but not applied, high
efficiency is also impossible. One of the main purposes of the principles is to give instruments of precision wherewith to test efficiency.
In going into a plant, seeing the evidences of great inefficiency, the first step is to find out
what is ; next, to set up standards ; then to insist on the use of the principles, first to test the
administration, and then to direct the plant,
knowing with absolute certainty that if they
are applied by a valiant and competent man,
standards will inevitably be attained. There is,
of course, no absolute and final standard. The
standard initially adopted is always one plainly
within sight, easily attained. A standard of 54
miles an hour from New York to Chicago is at-
tained today; it would have been ridiculous
twenty years ago. A speed of 25 knots an hour
across the ocean was planned for and attained
by the Mauretania and Lusitania ; it would have
been absurd in 1862, when the fastest steamer
took 9 days and other good steamers were 12 to
13 days on the ocean*
Having ascertained what is, having set up standards, the plant manager and his counsel-lors ought not to go out and collect forms and devices and cards, ought not to install clocks and devices and checks, systems and methods, but ought to go into retirement and search their own minds and hearts and by some device or
method test the extent to which they can ap-ply principles. A convenient device is to assign a score card to each principle, to draw on the card a checker-board of a hundred squares, and by marking out squares record his judgment and that of other experts as to the extent to which efficiency principles are being applied.
The questions are not as to the number of
employees, or whether the buildings are brick
or wood, the equipment new or old, the em-
ployees men or women, white or black, free or
unionized, nor where the plant and what the
product is ; but the first question is, "What are
To illustrate the method we can tentatively
apply it to the greatest industrial corporation
the world has ever seen — the United States
Steel Corporation. From every point of view it
ranks high, higher than most corporations. Or-
ganized only ten years ago, it started with the
ideals of 1901, and if we have any belief in
progress these were higher than the prevailing
standards when the Standard Oil Company was
struggling to the front. There is as much differ-
ence between the ruthless methods of the old
Standard and the friendly dinners of Judge
Gary as there is between the "eye for an eye"
of the Old Testament and the Golden Rule of
the New Testament.
Twelve years ago the steel business of the
country was greatly disorganized. Every man
did what was good in his own eyes. There was
always a feast or a famine, very profitable or
very ruinous prices; it had become an axiom
that the condition of the iron trade was an in-
fallible barometer of general business condi-
tions. Very able men, financiers, lawyers,
great steel producers, combined to bring order
out of chaos, and the United States Steel
Corporation was formed. It has been man-
aged with great prudence and wisdom, perhaps
with as great wisdom and prudence as indus-
trial knowledge at that time made possible.
It has recently been investigated and it is inter-
esting to gather from the mass of testimony the
ideals of both investigator and investigated.
The ideals of the Corporation seem to have
(1) Law abidence.
(2) Rational publicity.
(3) Steady prices at a high level.
(4) Maximum tonnage.
(5) Permanence for its own business by the purchase of large ore and coal reserves.
(6) Rapid improvement of the properties so as to make them worth the capitalized value.
(7) Maintenance of a high level of wages.
(8) Identification of the worker with the profits of his work, thus increasing his interest in his occupation.
These ideals are summed up by Judge Gary in a declaration in an address at Brussels to 160 representatives of steel interests in Europe and America, in which he declared that "There should be established and continuously main-tained a business friendship which compels one to feel the same concern for his neighbor that he has for himself. It is nothing less in principle than the Golden Rule applied to business/'
Critics have carpingly suggested that the
principle should be called "The Golden Rule
Limited'' since it takes no account of mankind
outside of steel. This is both unjust and nar-
row. The actual price of anything is not im-
portant, the relative price is, and even more im-
portant is it that relative prices should not
fluctuate but gradually sink compared to labor.
It is the immense merit of the Corporation that
it has maintained prices of products and com-
pensation per hour of labor, also that by elimi-
nating useless wastes in selling and in fighting
competitors it has been able to make good the
ideals of corporate value set up in 1901.
The criticism ought not to be that it has elim-
inated several hundred million dollars of waste
without any detriment whatever to the Com-
monwealth, but that it has not been able to
eliminate more waste, and from the gain not
only add to its own profits but also gradually
lower price of products as measured in dollars,
and increase the compensation, measured in dollars, of efficient workers, thus doubly adding to
the purchase power of wages efficiently earned.
It will be interesting to use the United States
Steel Corporation as a concrete example of the
way the principles of efficiency might be of ser-
vice to those who direct and administer large
Waste elimination in production expense has
not yet become one of the effective ideals of the
Corporation. Does it cost less or more to pro-
duce steel today than it did twelve or fifteen
years ago? Is it not costing less per ton to
transport freight, less per mile to transport
passengers on the railroads, than it did fifteen
years ago? Has the Steel Corporation attained
a present rational low limit of cost of produc-
tion ? If it is not applying systematically all the
principles of efficiency to every minutest opera-
tion, then naturally its costs are unduly high,
and if it did apply these principles, its costs
would be lower, with gain to all !
The Corporation has not applied the principles firstly because there were other vital and
elementary problems more pressing, and secondly because the principles had not yet been
formulated and their value to a very limited and almost unknown extent been demonstrated
by F. W. Taylor, H. L. Gantt, James M. Dodge, W. J. Power, E. E. Arison and many others.
If the United States Steel Corporation were
to be checked up by efficiency principles, ideals
would be first formulated that would be of
universal application, and the lesser ideals of
the Corporation would be checked up in com-
parison. By this test as to the first prin-
ciple, Ideals, it would be given high credit for
some, fair marks on others, and as to others it
would be found very defective. It could not be
otherwise, since there have been men highly
connected with the Corporation in whom the
public could not have any general moral confi-
fidence either as to their comprehension or ex-
ecution of ideals except of the lowest order.
Tonnage, the shibboleth of steel production, is
a low ideal working havoc in more ways than
Taking the next square, Common Sense, the
Corporation has steered a remarkably wise
course along a channel beset with many difficul-
ties and with the materials at hand wonders
have been accomplished. The Corporation is
vulnerable only to small degree for what it
has done, but to a large degree for what it has
not done. It is not by any means as up-to-date
as a modern American battleship which can
concentrate repeated heavier salvo fires on a
target at a greater distance in a shorter time
than any other battleship in existence.
The square of Competent Counsel. Here
again there appears to be deficiency of omis-
sion. Counsel has been taken in many direc-
tions, legal, financial, political, technical, but in
other directions competent counsel has neither
been invoked nor secured because its need was
In one Pittsburg shop there are fifty-six dif-
ferent nationalities employed, men of many dif-
ferent races. In London there has just met a
Universal Races Congress with delegates from
all nations and all the races in the world. (I
know private American businesses that have
sent members to this Races Congress in order
to be better prepared to handle the race prob-
lems that occur in American shops.) Is the
Steel Corporation represented there? If not,
how could it afford to miss the opportunity ?
Discipline and the Fair Deal, recognized as
principles, have both been conspicuously in-
sisted on, and both are intensely desired by the
Corporation in spite of local murmurings and
occasional sore spots, occurring solely because
the principles have not been worked down far
When it comes to the application of the prin-
ciples of Reliable, Immediate and Adequate
Records and of Determination of Standards, the
Corporation does not rank high because it is
only a systematized business, not one scientifi-
cally managed, because it has not yet emerged
from the antiquated standards of accounting so
beautifully developed by the Venetians shortly
af er the adoption of Arabic numerals. The old
principles of accounting plainly in evidence in
a modern bank are three in number: (1) Des-
tination; (2) authority; (3) balance.
In a deposit bank it is imperative to know
where to credit a deposit, the destination of the
account ; it is so imperative to have proper au-
thority for drawing out money that if a man's
wife, or partner, or best friend attempted to
check on his account the bank would be horri-
fied and call on all the minions of the law to
prevent and punish such sacrilege. The bank is
happy when as to the whole and as to each ac-
count there is balance.
These ideals are fine, important and desir-
able, but wholly inadequate. The bank does not
care how the depositor acquired the money nor
how he spends it after it is withdrawn. Its
supervision covers a very limited field. It is
this limited field that corporation accounting
has to date covered. It is not broad enough.
In the Illinois Central Railroad car-repair
frauds under which the road lost about $5,000,-
000, destination was perfectly observed, for
bills were charged to definite accounts ; also as
to every voucher authority was forthcoming,
each being approved by some official; finally
there was perfect balance between vouchers and
expenditures. When the frauds were revealed,
President Harahan pathetically mourned that
trusted friends had deceived him.
The modern cost-accounting fundamentals
are Standards, Efficiencies, Equivalents. The
Lusitania in crossing the ocean steams a meas-
ured number of miles, in a recorded time. To
do this requires about 60,000 horse-power, each
horse-power hour requires a pound and a half
of coal. I know nothing of the records of the
Lusitania, I have never seen any of them, but
off-hand I can estimate that it takes about 1,000
tons a day to run the ship. This is a standard,
not a record.
There is, as to the Lusitania and all other
large steamers in regular service on definite,
fixed and measured courses, a predetermined
standard of expense for coal ; and against this
standard, actual consumptions are checked, or
may easily be checked for every voyage, closely
compared, and keenly scrutinized.
If the Illinois 'Central had had standards for
car repairs, any standard — $31 per car per year
as Turner attained on the Pittsburg and Erie ;
$35 per car per year as Van Alstyne attained
on the Northern Pacific ; $42 per car per year
as some railroads might think sufficient; $56
per car, an amount that any competent investi-
gation will show to be too much; $70 per car
per year, about the average of all the railroads
— then the Illinois Central cost at the rate of
$140 per car per year would have shown the
following efficiencies according to the different
Standard Cost Efficiency at per Car $140 per per Year.* Car per Year.
$31 22 per cent
$35 25 per cent
$42 30 per cent
$56 40 per cent
$70 50 per cent
and there would have been instant inquiry by
officials, by Wall Street, by shareholders, by
* Repairs per freight car owned is a defective unit, but the illus-
tration holds good, as any other unit, repairs per car mile, would
still show Turner and Van Alstyne in the lead, the Illinois Central
Interstate Commerce Commission, by rivals and
critics, as to the why and wherefore of the low
efficiencies, as to the absence of equivalence be-
tween moneys spent and results obtained.
The United States Steel Corporation has rec-
ords of productive cost which it may think are
standards, but they are not; they are mere
records of what has been accomplished in the
past, and there is absolutely no direct connec-
tion between what has been and what ought to
be. Records grope in the past, standards reach
into the future, ultimate standards are always
ahead of what has ever been. Practical stand-
ards hang like stalactites from the roof of ideal
standards, records are built up like stalagmites
from the floor of actual performance ; it is only
when stalactite tip and stalagmite tip join and
fuse that both become a column of efficiency
strength. Does the Steel Corporation know as
to every detail what ought to be as well as it
knows what has been? If it does not, it is
merely systematized; it cannot measure its
losses, and where there is no standard there is
inevitably waste, and very great waste.
We next consider the application of the prin-
ciples of Standardized Conditions and Stand-
ardized Operations. Are conditions standardized to the same extent as in a railroad track,
as in railroad cars and locomotives, always maintained in a high degree of efficient repair,
because life is at stake if they are not?
Poor belting, poor abrasive wheels, poorly
maintained machines, delayed deliveries of ma-
terial, do not endanger life in the operation of
an industrial plant; therefore nobody cares
very much, and because nobody cares, because
no alarm clock goes off, lax and slack conditions
prevail. It is not even necessary to prove that
laxity and slackness exist; the legitimate as-
sumption is that they do unless the contrary is
An eight-year-old child who has never been
to school presumably cannot read, and to pre-
vent arrest by the truant officer proof of effi-
ciency has to be furnished by the parent to the
municipal authorities. So with corporations
who have not learned the alphabet of efficiency.
In the Corporation have single operations been
standardized, not only the centralized, super-
vised and oft-repeated operations, but also the
decentralized, unsupervised, occasional opera-
Continual hammering on the same spike will
ultimately sink it into very hard wood, it is an
oft-repeated operation; but it is much harder
to throw a stone straight. Therefore we ham-
mer as did prehistoric men ; the operation was
almost as perfect then as now; but we have
had to develop a staff of thirty men working all
together to standardize such an unusual opera-
tion as throwing a 1,000-pound shot at an en-
Has the Steel Corporation so standardized
conditions and operations as to enable it to
draw up Standard-Practice Instructions cover-
ing all details? No one standardizes without
reducing the standards to written form. The
object of surveys is to make maps, more or
less elaborate, that all may profit. If there are
no maps of a region it is safe to assume that
there are few and imperfect surveys. By its
collection of standard-practice instructions the
Steel Corporation could demonstrate its effi-
ciency status, whether very elementary or far
advanced. With a good chart in his hands one
captain can replace another without danger
even in risky waters. In industrial plants most
of the charts are under some foreman's or
worker's hat, and it would not be possible (as
it ought to be) , without loss, to walk in a new
industrial army, privates and officers, and take
up interrupted work, without delay or loss.
As to the next principle, Despatching, it is
undoubtedly applied by the Corporation on a
wholesale scale but not in detail. Large steam-
ers laden with ore are regularly despatched
from the far end of Lake Superior to the lower
end of Lake Erie. Big apparatus is used for
loading and unloading these steamers; but is
each scoopful handled with the maximum of
efficiency? As railroads have found out, it is
quite as important to despatch passengers into
trains and out of them again as to despatch the
trains. In the despatching of minor operations
all except standardized industrial concerns are
Finally we come to the principle of Efficiency Reward. As to every human effort, for the
highest result and for joyful, healthful effort, three conditions must prevail :
(1) There must be pleasure in the work; it
must be a game, not a task; it must be what
learning to ride on a bicycle or learning to skate
is to a boy, or learning to dance is to a girl, or
playing golf is to the elderly business man, or
auto speeding to the automobile driver.
(2) There must be a definite end in view, a
definite accomplishment in a given time, not a
vague, never-ending grind.
We are not accustomed to endless day or end-
less night; both are depressing, and so also is
a perfect unchanging climate or sea. Men
want change, always change, the sting of the
blizzard with the certainty of the broil of the
camp fire at the end of the tramp. The ordi-
nary man will scarcely hold his breath a full
minute, but if trained by a single lesson and
nerved to a definite task, timing himself, he can
hold his breath for a minute and a half, for
two minutes, for three minutes, or even for
four. He acquires form.
(3) Form is the third requisite for easy,
graceful, pleasurable work. Compare the
skilled skater with the novice, compare the
skilled man riding horse or bicycle, scarcely a
muscle in use, with the frantic efforts of the
learner, compare the dexterity of the juggler
with the clumsiness of the imitator.
The Steel Corporation has installed the plan,
the duty of profit sharing, but has it recognized
the principle of Efficiency Reward in the great
army of its workers ? Has it set up a standard
task in a standard time? Is there immense joy
in each one's work ? Is there perfected form in
doing the work?
Minimum effort put forth in best form to attain a standard in definite time gives the joy of
work, and this joy is added to the pleasure of securing the special reward for proficiency.
Are these the conditions under which the steel workers labor? If not, the workers cannot be
efficient and wastes are occurring.
Whether we check up the making of a pin and its cost or the operations for a decade of
the greatest corporation in the world, the same methods can be applied to reveal weaknesses
and to show the need of special remedies. The principles of efficiency are to the industrial
plant what the principles of hygiene are to life.
If man, woman or child does not have constant-
ly changing air of sufficient purity, an abund-
ance of good food and water, plenty of exercise
as well as rest and sleep, constant keen inter-
ests and sudden changes, health will suffer, no
matter what the occupation.
No matter what the occupation, no act is efficient if the principles on which efficiency is
based are lacking.
Franklin collected thirteen principles to cover the small amenities of daily life. They
were: Temperance, silence, order, resolution, frugality, industry, sincerity, justice, modera-
tion, cleanliness, tranquility, chastity, humility. Each week he picked out one and practiced it
diligently, thus creating a habit. Each year he practiced each one a full week in each quar-
ter, thus covering them all four times each year. He kept this up for many years. The uncouth
Franklin of early manhood who found fault with his wife for giving him a silver spoon and
a china bowl for his bread and milk instead of a pewter spoon and earthenware crock, devel-
oped into the statesman and man of the world who won the respect of Englishmen, the ad-
miration of Frenchmen, and the gratitude of Americans. In a similar way ought the prin-
ciples of efficiency to be applied and reapplied.
It is interesting to note that now philosophy of lean system is said to be Elimination of Waste.
Manufacturing system industrial engineering is the study of resource use in various manufacturing activities with a view to increasing the efficiency or eliminating the waste wherever possible. While the manufacturing is designed to produce goods that serve the needs of the targeted customers, the resource use in the design is carefully investigated by the industrial engineering to identify and remove waste. Industrial engineering succeeded in reducing the cost of many processes designed in the first iteration by the managers up to 50% and hence it is a very important activity in systems design or systems engineering.
Famous example of manufacturing industrial engineering, is Henry Ford's production system redesign, that reduced the price of the automobile by half. Taylor reduced cost of many manufacturing activities. Gilbreth and Harrigton Emerson also achieved similar cost reduction in construction activity and rail road operations.
In subsequent periods, SMED is a very popular example of industrial engineering. Poka-yoke is another example of industrial engineering innovation.
Industrial engineering has been successfully and profitably applied in all functions of the organizations. Functional Industrial Engineering Subjects provide the IE research and application paper in many functions.
IE curriculums need to have IE subject for each of the important functions to provide specialized IE knowledge in that function to learners and make them competent to provide IE services as early as possible in their jobs.
EFFICIENCY IMPROVEMENT TECHNIQUES OF INDUSTRIAL ENGINEERING
1. Process Analysis
2. Operation Analysis
3. Layout Efficiency Analysis
4. Value engineering
5. Statistical quality control
6. Statistical inventory control and ABC Classification Based Inventory Sytems
7. Six sigma
8. Operations research
9. Variety reduction
11. Incentive schemes
12. Waste reduction or elimination
13. Activity based management
14. Business process improvement
15. Fatigue analysis and reduction
16. Engineering economy analysis
17. Learning effect capture and continuous improvement (Kaizen, Quality circles and suggestion schemes)
18. Standard costing
Functional IE Solutions for Manufacturing Systems
3. Seven wastes of manufacturing
4. Group technology
5. Lean manufacturing
6. Engineering economic analysis of advanced manufacturing systems
7. Assembly line balancing
8. Production inventory control models
9. Aggregate planning models
10. Scheduling Models
Books, Research Papers, Conceptual articles, Case Studies and Projects Reports of Industrial Engineering in Manufacturing Systems.
Redesign of a Bicycle Spoke Wrench To Minimize Wrist Flexion and Upper Extremity Motion
Anonymous. IIE Annual Conference. Proceedings (2003): 1-23.
A Human Factors and Ergonomics Implementation Framework in Electronics Manufacturing: A Case for Digital Human Modeling
Kalkundri, Kaustubh; Khasawneh, Mohammad T; Srihari, Krishnaswami; Greene, Christopher M. IIE Annual Conference. Proceedings (2009): 1090-1095.
IMPORTANCE OF ERGONOMIC COMPATIBILITY ATTRIBUTES ON THE SELECTION OF ADVANCED MANUFACTURING TECHNOLOGY -AMT-
Maldonado-Macías, Aide; Realyvásquez, Arturo; Martínez, Erwin; Sánchez, Jaime. IIE Annual Conference. Proceedings (2010): 1-6.
5. Fatigue Studies
Neuro-fuzzy modeling of human fatigue
Jiao, Yue; Lee, E S. IIE Annual Conference. Proceedings (2004): 1.
An Investigation of the Relationship between Task Demands and Total Body Fatigue
Meza, Katherine; Crumpton-Young, Lesia L, PhD; McCauley-Bell, Pamela; Carter, Lindsay. IIE Annual Conference. Proceedings (2003): 1-6.
Two Stage Stochastic Integer Programming Model for Workforce Cross Training
Araz, Ozgur; Fowler, John W. IIE Annual Conference. Proceedings (2008): 314-319.
A virtual enviroment for training overhead crane operators: Real-time implementation
Wilson, Bruce H; Mourant, Ronald R; Li, Man; Xu, Weidong. IIE Transactions30. 7 (Jul 1998): 589-595.
Task Analysis for SMT Placement Machine Setup for Virtual Reality-Based Training: Methodology and Findings
Bhuvanesh, Abhinesh; Khasawneh, Mohammad T; Lam, Sarah S; Srihari, Krishnaswami. IIE Annual Conference. Proceedings (2006): 1-6.
9. Incentive Systems
10. Job Evaluation
11. Learning effect capture
12. Work Measurement
Labor Optimization Through Work Measurement in the Process Industries (Presentation)
Kroeger, Douglas R, PE. IIE Annual Conference. Proceedings (2006): 1-26.
A FORMAL APPROACH TO INCLUDE A HUMAN MATERIAL HANDLER IN A CIM SYSTEM
Altuntas, Bertan; Wysk, Richard A; Rothrock, Ling. IIE Annual Conference. Proceedings (2004): 1-6.
The Effect of Level of Automation and Number of UAVs on Operator Performance in UAV Systems
Wasson, Ryan; Liu, Dahai; Macchiarella, Dan. IIE Annual Conference. Proceedings (2007): 1422-1427.
Modeling Human Operator Decision-Making in Manufacturing Systems Using BDI Agent Paradigm
Zhao, Xiaobing; Venkateswaran, Jayendran; Son, Young-Jun. IIE Annual Conference. Proceedings (2005): 1-6.
Analysis of Worker Assignments with Cross-training and Job Rotation Considerations for a Lean Production Environment
McDonald, Tom; Ellis, Kimberly; Van Aken, Eileen. IIE Annual Conference. Proceedings (2003): 1.
SPC STUDY OF A BREWING PROCESS (Presentation)
Escalante, Edgardo J, PhD. IIE Annual Conference. Proceedings (2010): 1-28.
6. Statistical inventory control and ABC Classification Based Inventory Sytems
7. Six sigma
Six Sigma Challenges In a Low-Automation Low-Technology Environment (Presentation)
Sanders, Janet H, PhD, ASQ~CQE, CQA. IIE Annual Conference. Proceedings (2009): 1-49.
Comparison of Sampling Methods for Flatness Evaluation Using CMM
Badar, M Affan; Singhal, Ashish. IIE Annual Conference. Proceedings (2006): 1-6
Using Statistics And Hypothesis Testing For Process Improvement! (Presentation)
Mehta, Merwan; Jackson, Andrew. IIE Annual Conference. Proceedings (2009): 1-21.
Improving Vibratory Finishing with Design of Experiments (Presentation)
Babin, Paul; Griffith, Dan. IIE Annual Conference. Proceedings (2007): 1-35.
8. Operations research and Optimization
Optimizing Capacity Ramp-Up Decisions in the Semiconductor Industry
Soylu, Ahu; Akcali, Elif. IIE Annual Conference. Proceedings (2006): 1-6.
Optimization of a manufacturing process using the hybrid simulation: A case study
Dao, Thien-My. IIE Annual Conference. Proceedings (2010): 1-34.
Optimization Model for Filling and Distribution of Liquefied Petroleum Gas (LGP) Containers
Murrugarra, Ruth; Chavez-Bedoya, Luis; Paz, Sandro. IIE Annual Conference. Proceedings (2007): 1-21.
Using Simulations to Teach Machining Process Optimization in Manufacturing Engineering Education
Qian, Li; Hossan, Mohammad Robiul. IIE Annual Conference. Proceedings (2007): 541-546.
Optimization of a Painting Line through Simulation: A Case Study
Villarreal-Marroquín, María G; Castro, José M; Chacón-Mondragón, Óscar L; Cabrera-Ríos, Mauricio. IIE Annual Conference. Proceedings (2009): 1682-1687.
Setting the Optimal Parameters for a Nano-Particle Milling Process
Hou, Tung-Hsu (Tony); Su, Chi-Hung; Chang, Hsu-Yang; Chan, Watson; Liu, Wan-Lin. IIE Annual Conference. Proceedings (2005): 1-6.
Using Neural Networks and Immune Algorithms to Find the Optimal Parameters for an IC Wire Bonding Process
Hou, Tung-Hsu (Tony); Su, Chi-Hung; Chang, Hung-Zhi. IIE Annual Conference. Proceedings (2005): 1-6.
Optimization of the Electron Beam Melting Process
Cormier, Denis; Harrysson, Ola; Low, Jason; Knowlson, Kyle. IIE Annual Conference. Proceedings (2004): 1-6.
Optimal System Design of Flexible Assembly Systems
Ali, Sk Ahad; Khadem, Mohammad; Seifoddini, Hamid; Lee, Jay. IIE Annual Conference. Proceedings (2004): 1.
Turn-Mill Tool Path Planning and Manufacturing Cost Analysis for Complex Parts Machining
Lai-Yuen, Susana K; Lee, Yuan-Shin. IIE Annual Conference. Proceedings (2002): 1-6.
Production Rate Curves in Manufacturing
Sundaram, Meenakshi. IIE Annual Conference. Proceedings (2005): 1-5.
Design economics for electronics assembly
Locascio, Angela. The Engineering Economist44. 1 (1999): 64-77.
Risk Assessment of Industrial Capitalization Projects
Yuhasz, Amy; Davis, R P. IIE Annual Conference. Proceedings (2002): 1-5.
17. Learning effect capture and continuous improvement (Kaizen, Quality circles and suggestion schemes)
Work allocation to stations with various learning slopes in assembly lines for lots
Cohen, Yuval; Vitner, Gad; Sarin, Subhash. IIE Annual Conference. Proceedings (2005): 1-7.
18. Costing and Standard costing
Operation Based Cost Measurement Model
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2002): 1-7.
COSTING PRODUCTION SCENARIOS - A SIMULATION MODELING APPROACH
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2004): 1-6.
Requirements-based Cost Modeling for Product and Process Development (Presentation)
Chollar, George W, PhD, PE; Peplinski, Jesse D, PhD; Morris, Garron K. IIE Annual
Conference. Proceedings (2008): 1-17.
Simulation of High Speed Bottle Manufacturing Lines: Software Evaluation, Techniques and Results (Presentation)
Vasudevan, Karthik; Lote, Ravi. IIE Annual Conference. Proceedings (2009): 1-34.
Modeling a Large Scale Production System with Converging Production Lines and System Learning (Presentation)
Lu, Roberto; Goto, Jason; Kluczny, Bailey; Storch, Richard. IIE Annual Conference. Proceedings (2008): 1-12.
ESTABLISHING MAN-MACHINE RATIO USING SIMULATION (Presentation Supporting Paper)
Ong, Hoay Hoon; Eow, Hu Teik. IIE Annual Conference. Proceedings (2008): 1-4.
Simulation-based optimization for determining AGV capacity in a manufacturing system
Gosavi, Abhijit; Grasman, Scott E. IIE Annual Conference. Proceedings (2009): 574-578.
Using Simulation Modeling to Establish Kanban Levels in a Server Manufacturing Environment
Young, Aaron E; Paske, Brandon N; Foltz, Christopher T; Köster, Eduardo. IIE Annual Conference. Proceedings (2008): 816-821.
MODELING OF THE LASER DIRECT PART MARKING PROCESS WITH ARTIFICIAL NEURAL NETWORKS
Jangsombatsiri, Witaya; Porter, J David. IIE Annual Conference. Proceedings (2005): 1-6.
Comparison between different geometric shapes of engineered
abrasives on material removal and surface quality1. Part 22
Daniel E. Saloni
IIE Annual Conference. Proceedings, 2003, Pp. 1 - 6
Material Transport in Manufacturing
Material Transport System Design in Manufacturing
Sharp, Gunter P; Wan, Yen-Tai; McGinnis, Leon F; Douglas, A Bodner. IIE Annual Conference. Proceedings (2004): 1-6.
Factory Physics®: A Fast Cycle Time Story (Presentation)
Skowronski, Tim; Tafoya, Joan. IIE Annual Conference. Proceedings (2008): 1-91.
A Study on Manufacturing Accuracy for Complex Geometries
Visser, Jerry; Tolle, Mary; Lu, Huitian. IIE Annual Conference. Proceedings (2005):
A comparison of static and dynamic tooling policies in a general flexible manufacturing system
Hedin, Scott R; Philipoom, Patrick R; Malhotra, Manoj K. IIE Transactions29. 1 (Jan 1997): 69-80.
Design and Operational Analysis of Tandem AGV Systems
Liu, Sijie; ELMekkawy, Tarek Y; Fahmy, Sherif A; Shalaby, Mohamed A. IIE Annual Conference. Proceedings (2008): 402-407.
Manipulation and Assembly of Micro Devices
Cecil, J; Vasquez, D; Powell, D. IIE Annual Conference. Proceedings (2004): 1-6.
RFID on the Manufacturing Shop Floor: Applications and Challenges
Saygin, Can; Sarangapani, Jagannathan. IIE Annual Conference. Proceedings (2006): 1-6.
A Novel Approach to Improve Classification Accuracy Using Dimensional Index in Rapid Manufacturing
Devaram, Prashanth; Tseng, Tzu-Liang (Bill); Ho, Johnny C; Huang, Chun-Che; Kwon, Yongjin. IIE Annual Conference. Proceedings (2010): 1-6.
Application of Femtosecond Laser in Micro/Nano Machining
Devarajan, Sasikumar; Chang, Zenghu; Lei, Shuting. IIE Annual Conference. Proceedings (2006): 1-6.
An Empirical Study of Diametral Variations in Turning
Palla, Nikhilesh; Krishnaswami, Prakash; Lei, Shuting; Xin, Xiao. IIE Annual Conference. Proceedings (2002): 1-6.
Data Collection Framework On Energy Consumption In Manufacturing
Drake, Rebekah; Yildirim, Mehmet Bayram; Twomey, Janet; Whitman, Lawrence; Ahmad, Jamal; et al. IIE Annual Conference. Proceedings (2006): 1-6.
Manufacture of High-Strength, Thermally Stable Nanostructured Materials
Shankar, M Ravi. IIE Annual Conference. Proceedings (2007): 1393-1397.
A GOAL PROGRAMMING APPROACH TO DEVELOPING PRODUCTION PLANS IN COLLABORATIVE MANUFACTURING
Sundaram, R Meenakshi; Patil, Bhushan S. IIE Annual Conference. Proceedings (2002): 1-8.
"Optimal Production Planning, Scheduling and Distribution in a Bottling Factory" (Presentation)
Bedoya, Luis Chávez; Paz, Sandro. IIE Annual Conference. Proceedings (2005): 1-24.
Data Mining for Production Scheduling
Olafsson, Sigurdur. IIE Annual Conference. Proceedings (2003): 1-6.
Optimisation of Manufacturing Group Scheduling Using the Hybrid Neural Networks Simulation: A case of study
Dao, Thien-My; Abou, Seraphin C, PhD; rif Makrem, Che. IIE Annual Conference. Proceedings (2006): 1-6.
Critical Organizational Factors in the Success of Cellular Manufacturing Applications: A Meta-analysis Case Study
Chávez, Adan Valles; Sanchez, Jaime; Aldape, Alfonso; Chavez, Erick Colin. IIE Annual Conference. Proceedings (2010): 1-7.
Cultural Change: Enabling Work on Boeing's 777 Lean Moving Line (Presentation)
Brown, Gregory D. IIE Annual Conference. Proceedings (2008): 1-38.
Evaluation of Manufacturing Firms for Agility
Garbie, Ibrahim I Hassan, PhD. IIE Annual Conference. Proceedings (2006): 1-6.
Manufacturing Systems Engineering: A Unified Approach to Manufacturing Technology, Production Management and Industrial Economics
Taylor & Francis, 30-Oct-1996 - 560 pages
This second edition of the classic textbook has been written to provide a completely up-to-date text for students of mechanical, industrial, manufacturing and production engineering, and is an indispensable reference for professional industrial engineers and managers. http://books.google.co.in/books/about/Manufacturing_Systems_Engineering.html?id=7ooQ0iNzocYC
Re-Engineering the Manufacturing System: Applying the Theory of Constraints
Robert E. Stein
CRC Press, 2003 - 384 pages
An information systems trailblazer in the domains of decision support and factory and supply chain synchronization, the second edition of Re-Engineering the Manufacturing System stays true to its title. http://books.google.co.in/books?id=cQDO3qsgOnQC
1. Jigs and Fixtures Design
3. Poka Yoke
4. Automation and Autonomation - Productivity Impact Analysis of Recent Developments in Automation and Autonomation Field. Engineering Economic Analysis of Latest CIM Developments.
5. High Speed Machining for Productivity
6. Engineering Economic Analysis of Robots
7. Energy Conservation in Production Processes
8. Work Station Design
9. Design for Manufacturing
10. Design for Assembly
11. Gravity Chutes Design to Reduce Handling Time for Input Materials and Components and Completed Components and Assemblies.
12. Competency Mapping for Production Trades and Jobs
13. Manufacturing Cost Analysis and Reduction
14. Manufacturing Information Systems Rationalization
15. Work in Process Inventory Rationalization
Shigeo Shingo - A Study of Toyota Production System from Industrial Engineering Point of View, Shigeo Shingo - SMED, Revolution in Manufacturing Shigeo Shingo - Poka Yoke, Zero Quality Control. David A. Stephenson and John S. Agapiou, Metal Cutting Theory and Practice, CRC, 2006
Chapters: Machining Optimization and Economics, High Throughput Machining, Design for Machining. R. Venkata Rao, Advanced Modeling and Optimization of Manufacturing Processes, Springer- Verlag London Limited 2011 (archive org) Richard B. Chase, F. Robert Jacobs, Operations and Supply Management, 12th Edition,
Chapter: Operations Technology (Supplement B), McGraw Hill
L.V. Ottinger, "Robotics for the IE: Terminology, Types of Robots," Industrial Engineering, November 1981, P.30
Appropriate research papers and case study examples can be added by the faculty.
At Schneider’s Software Global Customer Conference, Aena's for 'Smart City Management' of 46 Airports across Spain, using the Wonderware System Platform was presented. This was an example of integration of over 1 million different signals coming from a myriad of sub-systems being effectively managed in a common way to ensure uptime, security, and energy efficiency.
International Paper’s story was about improving energy efficiency by integrating sensor-based information in combination with SimSci, Schneider’s advanced process control software.
At the Emerson Global User Exchange, the session on "Enabling Water & Energy Reductions Through Expanded Utility Metering" was there. A presentation was made by the system integrator and Emerson on how they implemented an energy management project for a major beverage manufacturer. The team implemented a facility-wide monitoring system that included monitoring steam, condensate, water, liquid ammonia, and plant air that span four separate business units. A Peruvian mining company presented on how they were able to control the total load of air used on their processes, mainly on flotation cells while reducing the amount of energy used to pump the air into the plant. The Galloway Company, a dairy firm saved $120,000 annually in sewer costs by increasing the reliability and accuracy of measurement with modern connected technology.
At the GE Intelligent Platforms 2014 User Summit there were also numerous examples of how companies have used GE’s SmartSignal and CSense products to process data from IoT-connected sensors to improve energy and utility performance. Jeff Immelt gave keynote address. Speakers from companies like Kimberly Clark, Summer Garden Foods, Duke Energy, and GE Transportation and GE’s jet engine group, gave examples on how they are using the data available from the IoT with the analytic capabilities of CSense and SmartSignal to save billions of dollars.
Methods efficiency engineering is an offshoot of scientific management. It offers a logical and systematic procedure for reducing costs, increasing production without an impairment to quality. Methods efficiency engineering may be applied with equal success to repetitive work or to jobbing work, to simple, easily understood operations or to complex, specialized jobs. It is applicable to all man machine systems, manual work or automated work.
Definition of Methods efficiency engineering. Briefly it may be said that Methods efficiency engineering is the industrial science which is chiefly concerned with increasing the efficiency of resources used in a method.
Methods efficiency engineering is the technique that subjects each operation of a given piece of work to close analysis in order to eliminate every unnecessary operation and in order to approach the quickest and best method of performing each necessary operation; it includes the standardization of equipment, methods, and working conditions ; it trains the operator to follow the standard method; when all this has been done, it determines by accurate measurement the number of standard hours in which an operator working with standard performance can do the job. Methods efficiency engineers also devise a plan for compensating labor that encourages the operator to attain or to surpass standard performance.
A methods efficiency study always begins with a careful primary analysis of existing conditions. The reason is that the existing system is taken as an effective system that is producing the required output at quality acceptable to the customers. The first factors that are considered are the number of pieces made or the yearly activity, the length of the operation, and the hourly rate of the operator or operators doing the job. This information permits the computation of the yearly cost of the job. An estimate is next made of the probable improvement that methods study can make. This in turn determines the kind and amount of methods-engineering work that can profitably be undertaken.
One or more types of process charts are drawn up for the purpose of presenting the study problem clearly. Then complete information is compiled for each operation concerning such points as the purpose of the operation,tolerance requirements, material and material handling, and tools and equipment used. Not infrequently this part of the study requires more time but essential to accomplish greater results in the succeeding steps.
As a part of methods efficiency engineering, motion study, that is study of motions of the operator is made. In motion study, each individual motion used in doing the work is considered in detail to try to shorten the motion or to eliminate it altogether. Motion study devises an easier and less fatiguing pattern of motions to do the job.
After the new method has been devised, equipment and conditions must be standardized (planned and provided to all operators doing the job) so that the method can always be followed. Information and records describing the standard procedure must be carefully made and preserved; for experience has shown that, unless this is done, minor variations usually creep in and in time cause a major problem. If standard method is available in a written form, frequent audits can be done to make sure it is being followed.
The operator or operators must next be taught to follow the new method. This may be done by verbal instructions, demonstrations at or away from the workplace, instruction sheets or operator process charts ; or by the highly successful procedure that employs motion pictures.
Operator training is an absolute necessity where methods have been devised by motion study. The best way of making each motion for each bodily part employed is carefully worked out by means of analysis and observation or motion-picture analysis, and a method that eliminates all useless or unprofitable motions is devised. This requires a few hours to several days of concentrated study. Therefore, operators have to be carefully trained to use the newly designed motion pattern to reach maximum production.
When the new and improved method has been devised and put into effect, the time required to do the work is carefully measured, usually by stop-watch time study. This measurement is based upon the standard performance that is expected from an operator who has been working at the class of work long enough to know it thoroughly, who is not unfitted for the work by nature, and who possesses normal intelligence and enough education to perform satisfactorily the work at hand. The final time value that is established includes allowances for time lost due to fatigue and personal and unavoidable delays.
When the method is applied to an entire line of similar but varied work, time values are usually computed from time formulas. Time formulas are useful mathematical devices that the methods engineer employs to reduce the amount of time required to establish time values.
When the best method that can be worked out at the time is devised, the operators trained, and a correct time allowance established, a procedure is next devised which will insure that the method is followed and that standard production is attained. This procedure usually takes the form of an incentive plan. Close supervision is also required to ensure that operators understand and use the newly designed method or motion pattern.
Explanation of the Term "Methods efficiency engineering."
The term " Methods efficiency engineering" is of comparatively recent origin.
When trained methods efficiency engineer brings to his job an extensive knowledge of fundamental waste-eliminating practices, every body will recognize its utility in the organization.
Development of Methods efficiency engineering - History
Rate Setting History
Probably the oldest wage-payment plan to be used by man was not day work, as might be supposed, but piecework. In going back to primitive times, the imagination must be largely relied upon, but it seems reasonable to assume that the hunter, for example, contracted with the arrow maker on a piecework basis. When he brought in a deer, he would offer it in exchange for, say five arrows. This was nothing more or less than piece work. The arrow had a definite piece rate equal to one-fifth of a deer. The value of the arrow was probably determined from a vague conception of the average time required to produce an arrow in comparison with the average time required to kill a deer. It is doubtful if this thought was ever expressed in so many words, but it is likely that it formed the basis for determining the rate of exchange.
Once the rate was established, the tune spent by the arrow maker in making an arrow and the time spent by the hunter in bringing in a deer were not considered by the contracting parties. If the arrow maker, for example, were industrious and skilled, he produced a number of arrows during the day and thus was able to receive a considerable amount of other material products in return. If he were lazy or unskilled, he would turn out only a few arrows and in consequence had to be satisfied with a bare living.
Day work probably came into being only when one "man desired to pay another man to work for him at a variety of tasks or to retain his general services to use or not at his discretion. Servants, for example, were paid on this basis. As industry began to grow, day work was used more and more, probably because this was the easiest method of payment where a variety of work was handled. Supervision was direct in most cases, labor was plentiful, and fear of dismissal furnished the incentive to produce.
At the same time, piecework payment was used in a number of instances. The weaver who worked a loom in his own home was paid for what he produced and not for the number of hours he spent at work.
As industrial units became larger, the work became more complex, and it was commonly felt that all work except simple, highly repetitive jobs had to be done on a day work basis. As the work became more complex, however, supervision became more difficult, and the need for piecework or some plan that encouraged a definite output by the workers was felt more keenly. It was only natural therefore that this situation resulted in attempts to introduce incentives.
The first attempts at incentive installations were altogether different from the present-day practices. Piecework, because it was simple, was the commonly used plan, and the duty of establishing piece rates was given to the foreman as a sort of extra duty. The foreman soon found himself with an unsatisfactory condition on his hands. In the first place, he usually had many duties of a pressing nature claiming his attention, and he had little or no time to devote to careful rate setting. In the second place, even when he found time to give to the setting of a rate, he had no accurate way of doing it. No instructions as to proper rate-setting procedure were given him because none had been developed. He was expected to base his rates upon records of past performance and his own judgment of what a man could accomplish if he worked with an honest effort.
These two factors proved to be utterly unreliable. Records of past performance told only how much was produced and gave no indication of the conditions under which the work was done or of the method used by the operator. Under the stimulus of an incentive, the operator could almost always devise a better method and, by working steadily with a good effort, could make earnings that often exceeded those of the foreman.
As soon as the foreman realized that past records were at best only a guide, he attempted to judge from his general knowledge of the work what degree of improvement could be expected. This, of course, was a step in the right direction, but it did not go far enough. On some jobs, the method used could not be much improved; and hence the rate that allowed for improvement was too low, and the worker's earnings suffered. Again, an improvement beyond that which the foreman anticipated made high earnings possible and increased the dissatisfaction of the worker with the low-rated job.
On the one hand, the foreman was assailed by the worker to raise the low rates. On the other, he was called "on the carpet by his employer because certain rates, and hence earnings, were too high. In these circumstances, the foreman did the only thing he could do. He raised the low rates where he had to and cut the high rates wherever earnings were excessive.
The result was what might be expected. The raising of the low rates was regarded by the worker as a proper correction of an error of judgment, whereas the lowering of the high rates was regarded as an indication that a man was to be permitted to earn only" so much and that there was no use trying to earn more. This, of course, defeated the purpose of incentives which was to stimulate production. When this was pointed out to the harassed foreman by the employer, he could only say that he was doing the best he could under the circumstances and that he would try to find time to do a more careful job in the future.
All this time, competition was becoming increasingly keen. The need for incentives was felt most strongly, and the importance of proper rate setting caused a search for a better way of handling the matter. It was reasoned that, although the foreman knew more about the work than anyone else, he had little tune to devote to rate setting. The solution to the problem therefore appeared to lie in selecting another man who knew nearly as much about the work and giving him the task of rate setting as a full-time job. Thus the position of rate setter was established.
The new setup gave somewhat better results, but conditions were far from satisfactory. The rate setter relied on records and judgment for establishing rates just as the foreman had done. Records of past performance, however, were no more reliable than they had ever been; and although the judgment exercised was somewhat more mature owing to the greater amount of time spent on considering the job, the results that were obtained were not appreciably better from the worker 's standpoint.
Toward the end of the nineteenth century, therefore, the more progressive plants began to feel the need for a better, fairer, and more accurate method of handling the rate question. The problem was attacked independently in a number of plants in USA and abroad, and various solutions were offered
which have contributed to a greater or lesser extent to methods-engineering practices. One attack, for example, was to attempt to equalize the inconsistencies of poor rate setting by the wage-payment plan; and this led to the development of such well-known plans as the Halsey premium plan and, later, the Rowan plan.
Taylor's Pioneering Efforts in Methods Improvement
Taylor used stop watch time study of understand the best practices of doing work at elemental level. Through the study of work and output using time study, Taylor found that the men he studied were not of constant effectiveness but gave performances that were good, bad, and indifferent. Some were following improper methods, many did not take full advantage of their tools and equipment, and all were subject to many interruptions. Hence, Taylor often found that a man could do two or three times as much as he had previously done in a day. Taylor carefully selected individual workman and made them produce the expected output under the guidance of scientific management specialists. As one person produced according to the expected output, he trained one more man. In this manner gradually more and more operators were trained to produce the increased output. Since those days, time study has increased the productivity of industry manyfold. It has resulted in improved conditions, standardization, reduced costs, better production control, and better satisfied labor wherever it has been properly applied, and it has been applied to nearly every class of work.
Taylor' s system was to give the workman a definite task to be accomplished in a definite time in a definite manner. The workman was told in detail how to do the job. The method was established by careful study.
Taylor's original procedure forms the basis of methods engineering. It has been improved upon by those who came after him, as is the case when any new science is developed. The most remarkable part of his work, however, is that surrounded by chaotic, hit-or-miss procedures, he originated, described, or predicted practically all the developments that have since taken place. This perhaps is the greatest tribute to the ability, clear thinking, and foresight of Taylor that can be made.
Taylor stressed the importance of improving method of doing the job and he used stop watch time study for that purpose. But his stop-watch time-study procedure was so striking and many overlooked the importance of careful methods study and became engrossed with the details of accurately measuring the time for doing the job and providing output targets to workers based on the times set.
Frank B. Gilbreth stressed the importance of the detailed study of methods and thereby made a distinct contribution to methods efficiency engineering . As an apprentice bricklayer, he became impressed with the fact that most brick- layers had their own way of doing a job. Being very observant, he noticed further that each worker had three ways of doing the same job: one that he taught to other inexperienced workers, one that he used when working slowly, and one that he used when working at his normal speed. Gilbreth became interested in the reasons underlying this, alalyzed the work of number operators and developed the technique of motion study.
The Gilbreths established a laboratory and studied motions by laboratory methods. As a result, they made a number of fundamental discoveries and originated the concept of therbligs, or basic divisions of accomplishment. They were the first to recognize that there are certain definite principles which govern efficient working practices, and they developed several techniques for studying the motions used in performing operations. Of these, the motion study made with the aid of motion pictures, often called the "micromotion technique' is the best known and most used. Of the originality, soundness, and value of their contribution to methods engineering, there can be no question.
As has been pointed out, Taylor's original work forms the basis of modern Methods efficiency engineering. Paralally, the developments made by the Gilbreths are also widely known.
Motion study was improved further. Better designs of industrial motion-picture equipment permit the wider use of the motion picture at a greatly reduced cost. The element of time has been tied in with the concept of therbligs, or basic divisions of accomplishment, thus offering a new and valuable approach to methods study. The leveling principle permits adjusting the time data obtained from a study taken on any kind of performance over a wide range to a standard level with a high degree of accuracy, thus permitting the setting of accurate and consistent rates. Finally, time-formula derivation has been developed to a point that makes possible the quick and accurate setting of a large number of rates or time allowances with a minimum of engineering effort. In spite of the progress that has thus far been made, the motion study procedure, at the present time, is constantly being revised and improved, as is any profession or procedure that is in everyday use.
Methods Efficiency Engineering
Methods efficiency engineering is now a carefully planned, systematic procedure. Process charts have been developed to a state of greater flexibility and have become more useful for general analysis purposes. It is entirely probable that as new ideas are advanced and new developments made the present technique will be still further improved upon in the future. The technique is, however, capable of being applied to all kinds of work, and its application results in major improvements in operating methods.
Economic Function of Methods efficiency engineering
Under modern business conditions, one of the major problems which faces the managers of industry is that of constantly reducing costs. Markets are restricted for any product because many individuals are economically unable to purchase the product at the current market price. Even in periods of prosperity, millions of people are able to supply themselves with only the barest necessities of life because of high prices of many items.
In any country, there are the fewest individuals in the highest group of income and the greatest number of people are in the lowest group with some groups of people at intermediate income levels. At each level, there is a group with a certain purchasing power.
The consumers at any economic levels but the highest few have only a limited amount to spend. All kinds of products are offered to them in various enticing ways. Competition as a result is keen and ruthless. The only way an industrial unit an hope to survive under these conditions is constantly to seek to keep production costs as low as possible.
Not many years ago, when cost reductions were necessary for one reason or another, they were obtained by reducing wages. The possibilities of obtaining cost reductions by increasing the production of the workers were not at the time generally recognized. Recently, however, there has been a marked change. The employer has come to realize that the worker is also a consumer and that, if wages are reduced, purchasing power is reduced. Therefore, a better way toward cost reduction lies in waste elimination so that greater production is secured with less effort.
Methods efficiency engineering is primarily concerned with devising methods that increase production and reduce costs. Hence, it plays an important role in determining the competitive position of a plant. As competition appears to be becoming keener, it is probable that Methods efficiency engineering will become increasingly important.
Methods efficiency engineering in an industrial unit can never be considered as completed. Costs that are satisfactory and competitive today become excessive in a comparatively short time because of the improved developments of other units of the industry. If the producer who is in a good competitive position today decides that his costs have reached rock bottom and that no further attempt to improve them is necessary, within a short while he is likely to find himself facing loss of his commercial standing as owner of an efficiently managed plant. Only by constantly seeking to improve can any unit safeguard its competitive position. Conditions in industry are never static, and steady progress is the only sure way to success.
Although cost-reduction work is important as a factor for survival, an even more important advantage accrues when really worth-while savings are effected. There are various economic strata of society. Assume that a certain company is manufacturing a product that, although universally desirable, is priced so high that only those individuals in group C or higher can purchase it. The market for the product is thus rather limited.
If, however, properly conducted cost-reduction work permits the lowering of the selling price so that the individuals in group D can purchase the product, the market is at once greatly expanded, perhaps doubled or even tripled. Henry Ford was among the first to combine recognition of this principle with the courage to act upon it.
In actual practice, society is not divided into definite groups, but incomes range, in small steps, from next to nothing to the highest. Hence, each time the selling price of a product is reduced, even though it is as little as 1 per cent, the product is brought within the reach of more people. Therefore, it may be seen that cost reduction as a means of increasing the distribution of the product is at all times important.
Methods efficiency engineering and Shop Supervisors
The methods efficiency man is by no means the only one who takes an interest in establishing economic costs and improving methods. The foremen, the tool designers, and the other shop supervisors all realize the importance of keeping costs upon a competitive level. Very often they make worth-while improvements in manufacturing methods. The differences between the methods efficiency man and the other shop supervisors are two. In the first place, the methods man devotes all his time to methods work, whereas the other supervisors have numerous duties, which force them to consider methods work as incidental to their major activities. In the second place, the methods, man conducts his methods studies systematically and makes improvements as the result of applying a carefully developed technique. This technique is based upon a large amount of specialized knowledge which can be acquired only by special study and training. Therefore, unless a course in Methods efficiency engineering has been given to the other shop supervisors, their improvements are less certain and are due more to inspiration than to deliberate intent.
For these reasons, the major part of methods improvement is usually made by methods engineers. This is not a necessary condition, however; for the principles that they use can be learned by the other supervisors and can be applied, in part at least, during the course of their other work. Certain progressive organizations have realized this and have given methodsengineering training in more or less detail to their various key supervisors. The results, as may be expected, have been gratifying, and methods-improvement work has received a marked impetus (Maynard 1938).
It is hoped that this technique will be used by shop supervisors such as foremen, tool designers, and so on, as well as by methods engineers; for if the principles of methods efficiency work are understood throughout an organization, that organization will be in a good position to meet competition, depressions, or any other economic disturbances which may come its way.
Alan Mogensen advocated work simplication methodology. In this method, he used to conduct method work shops based on process chart to supervisors and operators and used to improve processes with the involvement of the trainees. He was very successful in this endeavor for three decades and his methods was adopted by Training Within Industry (TWI) program and then from them by Toyota Motors. Now, industrial engineering is being taught in undergraduate engineering programs to make all engineers practice industrial engineering and also to train their supervisors and operators.
Adopted based on the first chapter of Maynard's Operation Analysis
Revision made on 23 Nov 2013
Revision made on 16 Feb 2014, 11 April 2015 (Further rewriting to be done)