Tuesday, April 26, 2016

Analysis of Cost of Sales Account



To do total cost industrial engineering, Industrial engineers have to analyze cost of sales account.
Cost of sales account is an appropriate summation of job cost accounts, process cost accounts and cost center costs. Industrial engineers should be able to divide the total cost of sales of the company into various underlying accounts to identify cost reduction challenges and opportunities.

Accounting: Cost of Goods Manufactured/ Cost of Goods Sold: Part I

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profblazarus




Accounting: Cost of Goods Manufactured/Cost of Goods Sold (Part II)

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profblazarus



http://www.accountingformanagement.org/finished-goods-and-cost-of-goods-sold/


See the recording keeping specified for Textile Industry in India regarding cost.

COST ACCOUNTING RECORDS (TEXTILES) RULES 1977
MINISTRY OF LAW JUSTICE AND COMPANY AFFAIRS NOTIFICATION
NEW DELHI THE 28TH JUNE 1977
COST ACCOUNTING RECORDS (TEXTILES) RULES 1977
http://www.mca.gov.in/Ministry/PDFs/text.pdf

Account Based COPA - Simplification with Simple Finance  in SAP
http://scn.sap.com/docs/DOC-65828

Updated 26 Apr 2016, 18 April 2016


Sunday, April 24, 2016

April 4th Week - IE Knowledge Revision












---------------------------

22 April to 26 April 2016



Statement of Cash Flows - Review Notes
http://nraomtr.blogspot.com/2011/12/statement-of-cash-flows-review-notes.html
Financial Statement Analysis - Review Notes
http://nraomtr.blogspot.com/2011/12/financial-statement-analysis-review.html

Cost Accounting

23 April 2016

Role of Costing and Cost Accounting in the Organizations
http://nraomtr.blogspot.com/2011/12/role-of-costing-and-cost-accounting-in.html
Introduction to Cost Terms - Review Notes
http://nraomtr.blogspot.com/2011/12/introduction-to-cost-terms-review-notes.html

Traditional Cost Objectives and Their Utility
http://nraomtr.blogspot.com/2011/12/traditional-cost-objectives-and-their.html
Job Costing - Review Notes
http://nraomtr.blogspot.com/2011/12/job-costing-review-notes.html


Activity-Based Costing and Activity-Based Budgeting
http://nraomtr.blogspot.com/2011/12/activity-based-costing-and-activity.html
Process Costing - Review Notes
http://nraomtr.blogspot.com/2011/12/process-costing-review-notes.html


Cost Center Reports and Analysis
http://nraomtr.blogspot.in/2016/04/cost-center-reports-and-analysis.html
Cost of Sales Account Analysis
http://nraoiekc.blogspot.in/2016/04/analysis-of-cost-of-sales-accout.html




April 3rd Week - IE Knowledge Revision

Thursday, April 21, 2016

Programmer Productivity - Bibliography



1992
https://www.andrews.edu/~vyhmeisr/papers/progprod.html

Function Points were first described by Albrecht (Albrecht, 1979), and have since been accepted by much of the software development community. The basic idea is that LOC are not measured, but rather the functionality of the developed program. This clearly removes the numeric advantage or disadvantage of the programming language. Some languages take longer to achieve the same functionality, but run faster and are more portable. Function Points still do not address the problems of internal documentation (DECLAREs, COMMENTs, etc.) in the software itself..


Wednesday, April 20, 2016

Smart Industrial Devices, Equipments and Machines - Sensor Attached Equipments



March 2016

Wearable Sensors for Low-Voltage Motors
New sensors from ABB are designed to bring condition monitoring and preventative maintenance to low-voltage motors that are typically not part of asset management programs.
http://www.automationworld.com/wearable-sensors-low-voltage-motors

Physical Internet - Efficient Sustainable Logistics Movement

Universal interconnection of logistics services


Physical Internet where goods travel in modular containers for the sake of interconnection in open networks. 



Ballot, E, B. Montreuil and F. Fontane (2010).

Topology of Logistic Networks and the Potential of a Physical Internet



CGS-Production and Logistics Systems, École des Mines de Paris, France et CIRRELT, Université Laval, Québec, Canada


Abstract : The topology of the logistic networks that contribute contemporary logistics is minimally examined or challenged in the assessment and improvement of the performance of supply chains, logistic and freight transportation. In this paper, it is shown that the topology of logistic networks has a major performance impact and that it can be significantly improved if the actual organization of flows is substituted by an organization founded on the universal interconnectivity of logistic networks: the Physical Internet.

The performance of contemporary vs. Physical Internet enabled network topologies is measured and contrasted through transportation throughput requirements, flow travel, and total costs.

Ballot, E., B. Montreuil & C. Thivierge (2012),


Montreuil B. (2011)

Towards a Physical Internet: Meeting the Global Logistics Sustainability Grand Challenge


Logistics Research, Vol. 3, No. 2-3, p. 71-87.


Abstract : This paper starts with the assertion that the way physical objects are currently transported, handled, stored, realized, supplied, and used throughout the world is unsustainable economically, environmentally, and socially. Evidence supporting this assertion is exposed through a set of key unsustainability symptoms.

It suggests exploiting the Digital Internet metaphor to develop a Physical Internet vision toward meeting this grand challenge. The paradigm breaking vision is introduced through a set of its key characteristics. The paper then proceeds with addressing the implications and requirements for implementing the Physical Internet vision as a means to meet the grand challenge.

It concludes with a call for further research, innovation, and development to really shape and assess the vision and, much more important, to give it flesh through real initiatives and projects so as to really influence in a positive way the collective future.

Functional Design of Physical Internet Facilities: A Road-Rail Hub 


in Progress in Material Handling Research: 2012, MHIA, Charlotte, NC (2012).


Abstract : Montreuil, Meller and Ballot enumerated the type of facilities that would be necessary to operate a Physical Internet (PI, π), which they termed, “π-nodes.”

This paper is part of a three-paper series for the 2012 IMHRC where the authors provide functional designs of three PI facilities. This paper covers a PI road-rail hub. The purpose of a PI road-rail node is to enable the transfer of PI containers from their inbound to outbound destinations. Therefore, a road-rail π-hub provides a mechanism to transfer π-containers from a train to another one or a truck or from a truck to a train. The objective of the paper is to provide a design that is feasible to meet the objectives of this type of facility, identify ways to measure the performance of the design, and to identify research models that would assist in the design of such facilities. The functional design is presented in sufficient detail as to provide an engineer a proof of concept.

Montreuil, B., R.D. Meller, C. Thivierge, C., and Z. Montreuil (2012),

Functional Design of Physical Internet Facilities: A Unimodal Road-Based Crossdocking Hub


in Progress in Material Handling Research: 2012, MHIA, Charlotte, NC (2012).


Abstract : As part of the 2010 IMHRC, Montreuil, Meller and Ballot proposed a set of facility types that would be necessary to operate a Physical Internet (PI, π), which they termed π-nodes. This paper is part of a three-paper series for the 2012 IMHRC where the authors provide functional designs of three PI facilities. This paper covers a unimodal road-based crossdocking hub designed specifically to exploit the characteristics of Physical Internet modular containers so as to enable the efficient and sustainable transhipment of each of them from its inbound truck to its outbound truck. The objective of the paper is to provide a design that is feasible to meet the objectives of this type of facility, identify ways to measure the performance of the design, and to identify research models that would assist in the design of such facilities. The functional design is presented in sufficient detail as to provide an engineer a proof of concept.


First work in the field of flows transportation

Sarraj, R., E. Ballot, S. Pan, D. Hakimi, B. Montreuil (2013),

Interconnected logistic networks and protocols: simulation-based efficiency assessment, 


in International Journal of Production Research (2013).


Abstract : Logistic networks intensely use means of transportation and storage facilities to deliver goods. However, these logistic networks are still poorly interconnected and this fragmentation is responsible for a lack of consolidation and thus efficiency. To cope with the seeming contradiction of just-in-time deliveries and challenging emissions targets, a major improvement in supply networks is sought here.

This new organisation is based on the universal interconnection of logistics services, namely a Physical Internet where goods travel in modular containers for the sake of interconnection in open networks.

If from a logical point of view, merging container flows should improve efficiency, no demonstration of its potential has been carried out prior to the here reported research. To reach this potentiality assessment goal, we model the asynchronous shipment and creation of containers within an interconnected network of services, find the best path routing for each container and minimise the use of transportations means. To carry out the demonstration and assess the associated stakes, we use a set of actual flows from the fast-moving consumer goods sector in France. Various transportation protocols and scenarios are tested, revealing encouraging results for efficiency indicators such as CO2 emissions, cost, lead time, delivery travel time, and so forth.

As this is a first work in the field of flows transportation, the simulation model and experiment exposes many further research avenues.

http://physicalinternetinitiative.org/publications.htm


A Presentation on Physical Internet

Physical Internet Manifesto

http://physicalinternetinitiative.org/index.php

Tuesday, April 19, 2016

Prototyping Internet of Things Ideas and Networks - Book Excerpts



Microcontroller is the main component to build an IoT Device.

Dig further into the ways of interfacing microcontroller with the real world using the “Interfacing with Hardware” page on the Arduino Playground website:(http://playground.arduino.cc//Main/InterfacingWithHardware). .

From the perspective of the electronics, the starting point for prototyping is usually a “breadboard”. This lets you push-fit components and wires to make up circuits without requiring any soldering and therefore makes experimentation easy.

8-bit microcontrollers are still in use, although the price of 32-bit microcontrollers is now dropping to the level where they’re starting to be edged out.

There are lots of microcontroller manufacturers (Atmel, Microchip, NXP, Texas Instruments, to name a few), each with a range of chips for different applications.

The ubiquitous Arduino platform is based around Atmel’s AVR ATmega family of microcontroller chips.

SYSTEM-ON-CHIPS
In between the low-end microcontroller and a full-blown PC sits the SoC (the Raspberry Pi).

RAM
If you want to run standard encryption protocols, you will need at least 4KB RAM, and preferably more.


Networking

The device has to connect to the rest of the world. Wired Ethernet is often the simplest for the user and cheapest, but it requires a physical cable. Wireless solutions avoid that requirement with a more complicated configuration. WiFi is the most widely deployed to provide an existing infrastructure for connections, but it can be more expensive and consumes more power  than some of its competitors.  ZigBee is a technology aimed particularly at sensor networks and scenarios such as home automation. The recent Bluetooth LE protocol (also known as Bluetooth 4.0) has a very low power-consumption profile similar to ZigBee. Standard Bluetooth chips included in phones and laptops.


USB
If your device can rely on a more powerful computer being nearby, tethering to it via USB can be an easy way to provide both power and networking. Some of the microcontrollers can be bought in versions which include support for USB, so choosing one of them reduces the need for an extra chip in your circuit.

Instead of the microcontroller presenting itself as a device, some can also act as the USB “host”. This configuration lets you connect items that would normally expect to be connected to a computer—devices such as phones, for example, using the Android ADK, additional storage capacity, or WiFi
dongles.

Interfacing with Sensors and Other Circuitry
The device has to interact with sensors to gather data about its environment and motors, LEDs, screens, and so on, to provide output. You could connect to the circuitry through some sort of peripheral bus—SPI and I2C being common ones—or through ADC or DAC modules to read or write varying voltages; or through generic GPIO pins, which provide digital on/off inputs or outputs. Different microcontrollers or SoC solutions offer different mixtures of these interfaces in differing numbers.

Arduino board

The “standard” Arduino board has gone through a number of iterations: Arduino NG, Diecimila, Duemilanove, and Uno. The Uno features an ATmega328 microcontroller and a USB socket for
connection to a computer. It has 32KB of storage and 2KB of RAM,

The Uno also provides 14 GPIO pins (of which 6 can also provide PWM output) and 6 10-bit resolution ADC pins. The ATmega’s serial port is made available through both the IO pins, and, via an additional chip, the USB connector.

Integrated Development Environment
To develop using  the Arduino, the integrated development environment (IDE) that the team supply at http://arduino.cc is used. This is a fully functional IDE, based on the one used for the Processing language (http://processing.org/). Most Arduino projects consist of a single file of code. IDE mostly is a simple file editor. You use it  to check the code (by compiling it) and to push code to the board.

Language
The language usually used for Arduino is a slightly modified dialect of C++ derived from the Wiring platform. It includes some libraries used to read and write data from the I/O pins provided on the Arduino and to do some basic handling for “interrupts” (a way of doing multitasking, at a very low level).
This variant of C++ tries to be forgiving about the ordering of code; for example, it allows you to call functions before they are defined.

The code needs to provide only two routines:
◾ setup(): This routine is run once when the board first boots. You
could use it to set the modes of I/O pins to input or output or to prepare
a data structure which will be used throughout the program.
◾ loop(): This routine is run repeatedly in a tight loop while the Arduino is switched on. Typically, you might check some input, do  some calculation on it, and perhaps do some output in response.

In the absence of a screen, the Arduino allows you to write information over the USB cable using Serial.write(). For debugging,  information can be accessed using it.  The Arduino IDE provides a serial monitor which echoes the data that the Arduino has sent over the USB cable. This could
include any textual information, such as logging information, comments, and details about the data that the Arduino is receiving and processing (to double-check that your calculations are doing the right thing).


The Arduino can be powered using a USB connection from your computer. This capability is usually quite convenient during prototyping because you need the serial connection in any case to program the board. The Arduino also has a socket for an external power supply.

RASPBERRY PI


Raspberry Pi is effectively a computer that can run a real, modern operating system, communicate with a keyboard and mouse, talk to the Internet, and drive a TV/monitor with high-resolution graphics. The Pi Model B has built-in Ethernet. Many makers blogged about their own attempts to use Raspberry Pi and have contributed designs to Thingiverse, Instructables, and others.

Extension boards and other accessories are already available for the Raspberry Pi. Many interesting kits are in development, such as the Gertboard (www.raspberrypi.org/archives/tag/gertboard), designed for conveniently playing with the GPIO pins.


To seriously explore the Raspberry Pi, a copy of the Raspberry Pi User Guide, by Eben Upton and Gareth Halfacree (Wiley, 2012) is to be consulted.

Operating System
For Internet of Things work on Pi, use the Linux based Adafruit distro.  The main tweaks of  interest in it are:
◾ The sshd (SSH protocol daemon) is enabled by default, so you can connect to the console remotely.
◾ The device registers itself using zero-configuration networking (zeroconf) with the name raspberrypi.local, so you don’t need to know or guess which IP address it picks up from the network in order to make a connection.

Programming Language
 The Pi Foundation, suggests Python. (and indeed the name “Pi” comes initially from Python).

Readily available libraries on PyPi
(https://pypi.python.org/pypi) may  provide code that other people have written, used, and thoroughly tested.

Node.js is used by some board brands.


Node.js is a platform built on Chrome’s JavaScript runtime for easily building fast, scalable network applications. Node.js uses an event-driven, non-blocking I/O model that makes it lightweight
and efficient, perfect for data-intensive real-time applications that run across distributed devices.
—http://nodejs.org/

Node.js is a rich environment with a host of libraries available to integrate into the app. Currently, the convenient npm (Node Packaged Modules) utility isn’t bundled with the IDE, but this is an item for a future version. In the meantime, online help and forums should get you over any possible stumbling blocks.

IoT Prototyping with Node.js and Firebase (Ubiquity Dev Summit 2016)

Google Developers
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GETTING STARTED WITH AN API
The most important part of a web service, with regards to an Internet of Things device, is the Application Programming Interface, or API. An API is a way of accessing a service  to interact with another computer application.  The interaction can be with a cloud application.

Excerpts from the Book

Designing the Internet of Things

by Adrian McEwen and Hakim Cassimally
Wiley, 2014






Create Prototypes and Get to Market Faster Using Intel® Edison Technology
Intel® Edison technology is a hardware and software platform that, when combined with sensors and your imagination, empowers you to invent new Internet-enabled products and solutions.
https://software.intel.com/en-us/iot/hardware/edison

Prototyping tools for the Internet of Things
Our hardware development kits give you a microcontroller and connectivity (Wi-Fi or cellular) along with powerful software development tools and a cloud back-end. Add the internet to your product with a single line of code.
https://www.particle.io/prototype


Internet of Things Hardware Round-up

Below is a list of some popular boards and development platforms to help you with your latest prototype or DIY project.
http://postscapes.com/internet-of-things-hardware

As a platform, shiftr.io provides you with the ability to share your data and access data of others. Sharing data publicly is encouraged by the platform's design. In the future, we plan to have additional features that allow more interactions between users and their namespaces.

Using shiftr.io everyone is able to rapidly prototype connected objects and build a network of connected things. Start building prototypes for the Internet of Things now!
https://shiftr.io/


SCALING TO A PROTOTYPE USING INTEL® IOT TECHNOLOGY
Joe W.'s picture Joe W., March 4, 2016
https://software.intel.com/en-us/blogs/2016/03/04/scaling-to-a-prototype-on-intel-iot-architecture

A Rapid IoT Prototyping Toolkit
Shayne Hodge
January 12, 2016
http://iot.ieee.org/newsletter/january-2016/a-rapid-iot-prototyping-toolkit.html

Prototyping Connected Devices for the Internet of Things
Steve Hodges, Stuart Taylor, Nicolas Villar, and James Scott, Microsoft Research Cambridge, UK
Dominik Bial, University of Duisburg-Essen, Germany
Patrick Tobias Fischer, University of Strathclyde, Glasgow, UK
http://research.microsoft.com/pubs/187495/06357162.pdf

FUN WITH THE ARDUINO 101
paul-guermonprez (Intel)'s picture paul-guermonprez (Intel), December 25, 2015
https://software.intel.com/en-us/articles/fun-with-the-arduino-101-genuino-101

IoT prototyping with LittleBits & Arduino
by mike vladimer / November 2, 2015
http://www.orangesv.com/blog/iot-prototyping-is-easier-than-you-think-with-littlebits-arduino/

IoT Prototyping With Arduino
Carl Krupitzer  |   September 24, 2015
http://www.thinglogix.com/iot-prototyping-with-arduino/

Tutorial: Prototyping a Sensor Node and IoT Gateway with Arduino and Raspberry Pi – Part 1
Interesting explanation - Sensor node - Field Gateway - Cloud gateway
10 MONTHS AGO, BY JANAKIRAM MSV
June 2015
http://thenewstack.io/tutorial-prototyping-a-sensor-node-and-iot-gateway-with-arduino-and-raspberry-pi-part-1/


OPITZ CONSULTING’s own IoT prototype to demonstrate capabilities (part 1)
https://thecattlecrew.net/2014/06/18/opitz-consultings-own-iot-prototype-to-demonstrate-capabilities-part-1/

IoT prototype – Retrospective. What did we learn? What did we miss? (part 5)
https://thecattlecrew.net/2014/06/18/iot-prototype-retrospective-what-did-we-learn-what-did-we-miss-part-5/


http://littlebits.cc/projects

https://tessel.io/

Lightwatch : An IOT prototype using XMPP and Android
Oct 2015
http://www.iot-hub.org/2015/10/lightwatch-iot-prototype-using-xmpp-and.html

Node-RED: How it simplifed my IoT project – and how YOU can rapidly prototype for the Internet of Things
Aug 2014
https://utbrudd.bouvet.no/2014/08/04/node-red-how-it-simplifed-my-iot-project-and-how-you-can-rapidly-prototype-for-the-internet-of-things/

India Events


Internet of Things, Mumbai (IoTMUM)
Learn basics of Arduino & Its application in Internet of Things..

Arduino Hands-on Workshop by YUPS Tech Solutions Pvt. Ltd. and Home Automation demo by Parth Temkar (Uses Arduino)

Arduino for IoTiets!
Sep 7, 2014 · 10:00 AM
http://www.meetup.com/IoTMUM/events/197179892/

Monday, April 18, 2016

Process Mapping and Process Flow Chart



Process Mapping is "the process of putting on a map, using specialized symbols, the process that you what to talk about".

Process Flow Chart is one of the many tools you can use to map your process.

Different diagramming tools that you can use to map your process.
You have to use the right one according to your purpose for mapping the process.

- Basic Flowchart
- Highlight Flowchart
- Audit Flow Diagram
- Operation Process Chart
- Process Flowchart
- SDL Diagram
- Data Flow Diagram
- Relationship Diagram
- Workflow Diagram
- IDEF0 Flowcharts
- SIPOC Diagram
- Mind Map
- Business Process
- Cycle Diagram
- Hierarchy Diagram
- Marketing Chart and Diagram
- Matrix Diagram
- Value Stream Mapping
- Material Process Flow Analysis
- Flow_Planner

From an answer given by Jacques Pineault, Himansu in a Linkedin Community Discussion


Fortune 500 2015 Number 3

Digital Oilfield of the Future (DOFF).

Digital Oil Field Goes Global
September 2012

https://www.chevron.com/-/media/chevron/shared/documents/NextIssue5.pdf

Exxon Mobil - Digital Transformation

Wednesday, April 13, 2016

Productivity and IE in Power, Distribution, and Specialty Transformer Manufacturing


ABB - Future Plans

15 Sep 2015
http://www.abb.co.in/cawp/seitp202/a0400d533bc9c9e1c1257ead004eeaed.aspx

quality value stream mapping in Transformer Plant in India
http://www.ijert.org/view-pdf/13397/improvement-of-manufacturing-production-process-using-quality-value-stream-mapping

Lean - Tansformer company - Middle EAst
http://www.ssa-solutions.com/ssablog/lean-transformation-at-a-leading-manufacturing-company-in-middle-east-a-case-study/

Lean - PhD Thesis

Improving Productivity and Quality of a Transformer Production Line by Applying Lean Manufacturing Principles


http://thescholarship.ecu.edu/bitstream/handle/10342/4950/Johnson_ecu_0600O_11459.pdf?sequence=1&isAllowed=y

An Ergonomics Intervention in a Transformer Manufacturing
Industry to Improve the Productivity
Sandip B. Wanave1
, Manish K. Bhadke2
1  Research Scholar, Mechanical Engineering Department, SVPCET, Nagpur-441108
2 Asstt. Professor, Mechanical Engineering Department, SVPCET, Nagpur-441108
International Conference on Advances in Engineering & Technology – 2014 (ICAET-2014)
http://iosrjournals.org/iosr-jmce/papers/ICAET-2014/me/volume-3/12.pdf?id=7622


Productivity increased by 500% - Siemens Jinan - KPC Consulting

KPC began consulting in 2001 and is still supporting on the continuous improvement of the entire processes. This case-study covers a period of seven years from 2001 until now in which the productivity was increased by 500%.

Essential Tasks of the Kaizen-optimization at SIEMENS Jinan:

Introduction of the pull-production system
Focus on overall productivity (instead individual / process efficiency)
Focusing on process synchronization, thereby eliminating stagnation / waiting time
Improvement of production planning logic and method. Week plan ->day -> shift -> hour -> minute at each single process
Continuous elimination of waste
Consistent 5 S activities
Division into value-added / non-value added activities
Introduction of the Doctor-/Nurse-System
Visualization of the current status of "OK" and "not OK"
Standardization of work / adjustment of standard time
Visualization of the timing of all activities
Continuous evaluation of output of each shift in entire processes
Introduction of a daily communication system at all levels, which improves the decision-making abilityContinuous employee training
TPM
TQM
Individual and overall factory layout (incl. offices)
etc.
http://www.kpc-engineering.de/en/what-our-clients-say/optimierung-der-wertschoepfungskette-bei-siemens-transformer-co-ltd/



Industrial transformers
Power and productivity for a better world


Manufacturers

MAHSHAKTI has pioneered itself into manufacturing of Power Transformers. With in house research, design & manufacturing facilities we produce best quality Power Transformers.
System that ensures quality products and services to total satisfaction of the customer.
http://www.mahashaktienergy.com/power-transformers.html

Updated  13 April 2016, 19 Feb 2014

Productivity and IE in Pharmaceutical and Medicine Manufacturing


PharmaWorks Takes a Prescription for Productivity
Yaskawa America
______________

_______________
6 May 2015


Refine and Streamline Your R&D Operations to Reduce Cycle Times
"Low productivity in research labs is the biggest single challenge facing the global pharmaceutical industry, which is struggling to replenish its medicine chest after a wave of patient expiries that peaked this year"
http://www.bpe-pharma.com/

The Path to Productivity Improvement in Pharma
Pharma must transform its productivity, and an emerging set of disruptive innovations promises giant gains
BY ANDREW GONCE, MCKINSEY & COMPANY
http://www.pharmamanufacturing.com/articles/2013/1308-productivity-improvement-processinnovation/


Robots in Pharma Industry

The Food and Drug Administration (FDA) closely regulates the manufacture of pharmaceuticals and medical devices. Integrated robotics allow manufactures to meet a number of compliance issues, including requirements for pedigree traceability, ergonomics, handling toxic materials, maintaining an aseptic environment and data acquisition and tracking. Robots are ideally suited to capturing process data, providing a clear audit trail to verify FDA compliance. Robots placed in aseptic “clean rooms” allow the manufacturer to protect employees from exposure to hazardous and toxic materials, reduce the cost of protective gear, and reduce the space required. Aseptic clean rooms also protect the product from accidental contamination by workers.
http://www.esstechnologies.com/AppNotes/Reasons-to-integrate-robotics.shtml

QUANTIFYING PRODUCTIVITY FOR A GENERIC PHARMACEUTICAL COMPANY
Divya Chauhan1, Dr. Nusrat Khan2
1Research Scholar- School of Business Management at Noida International University, Noida
& Project Manager at Fresenius Kabi Oncology Ltd., Gurgaon
2Associate Professor –School of Business Management at Noida International University,
Noida.
WORLD JOURNAL OF PHARMACY AND PHARMACEUTICAL SCIENCES
Volume 2, Issue 5, 2560-2568.

Productivity Dynamics in the Indian Pharmaceutical Industry:
Evidence from Plant-level Panel Data
Atsuko Kamiike, Takahiro Sato, Aradhna Aggarwal
http://src-h.slav.hokudai.ac.jp/rp/publications/no10/10-07_Kamiike.pdf


Updated  13 April 2016,  26 Jan 2014

Monday, April 11, 2016

2015 - 2016 - Best Manufacturing Plants - Productivity Improvement

REVENUE (MILLIONS)


1 Polaris Industries Inc. Railcars, Ships, & Other Trans. Equip. $4,480 (REVENUE (MILLIONS)
http://www.assemblymag.com/articles/93065-assembly-plant-of-the-year-flexibility-shines-bright-at-polaris


2 Apple Inc. Computers & Other Electronic Products $182,795
http://panmore.com/apple-inc-operations-management-10-decisions-areas-productivity

3 Northern Tier Energy LP Petroleum & Coal Products $5,556
4 Monster Beverage Corp. Beverages $2,465
5 Deluxe Corp. Publishing & Printing $1,674

6 Western Refining Inc. Petroleum & Coal Products $15,154
7 Sanderson Farms Inc. Food $2,775

8 Hershey Co. Food $7,422

http://marketrealist.com/2015/10/hersheys-steps-improve-suppliers-productivity-conscious-sourcing/

Productivity Initiative Impacts

The program is expected to generate pretax savings of $65 million to $75 million, primarily in 2016, of which a portion will be reinvested back into the company. Hershey anticipates that enabling further investment in brand-building and global capabilities should deliver future confectionery and snacks revenue and adjusted earnings per share-diluted growth that results in increased shareholder value.

The program is expected to result in the reduction of approximately 300 jobs by the end of 2015, with estimated pre-tax charges and costs of $100 million to $120 million, or $0.29 to $0.35 per share-diluted, the majority of which are cash and will be incurred in 2015.

http://www.businesswire.com/news/home/20150619005132/en/Hershey-Updates-Leadership-Team-Announces-Productivity-Initiative


9 Sherwin-Williams Co. Chemicals $11,130
10 Toro Co. Machinery $2,173
11 Microsoft Corp. Computers & Other Electronic Products $86,833
12 NewMarket Corp. Chemicals $2,335
13 Oasis Petroleum Inc. Petroleum & Coal Products $1,390
14 Pilgrim's Pride Corp. Food $8,583
15 Westlake Chemical Corp. Chemicals $4,415
16 Qualcomm Inc. Communications Equipment $26,487
17 Packaging Corp. of America Paper $5,853
18 IDEXX Laboratories Inc. Chemicals $1,486
19 Fossil Group Inc. Apparel $3,510
20 Thor Industries Inc. Motor Vehicles $3,525
21 Mettler-Toledo International Inc. Instruments $2,486
22 Nike Inc. Apparel $27,799
23 Alon USA Partners LP Petroleum & Coal Products $6,779
24 Lear Corp. Motor Vehicle Parts $17,727
25 Donaldson Co. Inc. Machinery $2,473
26 Colgate-Palmolive Co. Chemicals $17,277
27 FMC Technologies Inc. Machinery $7,943
28 Rockwell Automation Inc. Electrical Equipment & Appliances $6,624
29 Coach Inc. Apparel $4,806
30 Gentex Corp. Motor Vehicle Parts $1,376
31 Mead Johnson Nutrition Co. Beverages $4,409
32 Altria Group Inc. Tobacco $24,522
33 Hormel Foods Corp. Food $9,316
34 IBM Corp. Computers & Other Electronic Products $92,793
35 Estee Lauder Cos. Inc. Chemicals $10,969
36 Cummins Inc. Motor Vehicle Parts $19,221
37 Oracle Corp. Computers & Other Electronic Products $38,275
38 Renewable Energy Group Inc. Petroleum & Coal Products $1,274
39 Gilead Sciences Inc. Pharmaceuticals $24,890
40 Western Digital Corp. Computers & Other Electronic Products $15,130
41 Borg Warner Inc. Motor Vehicle Parts $8,305
42 Keurig Green Mountain Inc. Food $4,708
43 Wabtec Corp. Railcars, Ships, & Other Trans. Equip. $3,044
44 Lockheed Martin Corp. Aerospace & Defense $45,600
45 Skyworks Solutions Inc. Computers & Other Electronic Products $2,292
46 Wabash National Corp. Motor Vehicles $1,863
47 Linear Technology Corp. Computers & Other Electronic Products $1,388
48 Middleby Corp. Electrical Equipment & Appliances $1,637
49 Nordson Corp. Machinery $1,704
50 Marathon Petroleum Corp. Petroleum & Coal Products $97,949




http://www.industryweek.com/industryweek-best-plants/2015-iw-best-plants-winner-lean-thinking-action-ats-corp

http://www.industryweek.com/industryweek-best-plants/meet-2015-industryweek-best-plants-award-winners-champions-manufacturing




Friday, April 8, 2016

Cutting Tools - Productivity


Cutting Tool Engineering Magazine
http://www.ctemag.com/magazine

For a representative machined part,  the cost of machinery represents 26 percent of the cost of machining a part. Overhead represents 21 percent of the unit cost of machining. Labor and raw material account for 28 and 22 percent, respectively. The cost of cutting tools accounts for 3 percent.
http://www.mmsonline.com/blog/post/imc-group-president-says-best-tool-value-comes-from-productivity



http://www.sandvik.coromant.com/en-gb/pages/default.aspx


http://www.hardmetal.ie/hm-to-be-exclusive-tool-supplier-for-mastercam-productivity-event/

Wednesday, April 6, 2016

CNC Machine - Setup Time Reduction - Bibliography - Case Studies



2014

In a machine shop with  45 employees, a four-axis CNC lathe was used to make large aerospace parts that were shipped on a monthly basis.  The change over and setup for one of the routine parts was taking just under 16 hours (two shifts).  Since the set up took so long, the company was typically making 3-5 months worth of parts at a time and store them  and then ship them out of inventory.  Occasionally customers would make changes to parts, which meant that the parts that had already been made were no longer what the customer wanted.  Also as the lathe was making parts of a batch of 3-5 months, the lathe was not availabe for other current, more pressing demands.

Six employees spent five days studying the process and reducing the changeover and setup time. A target of 50% reduction was chosen (Shigeo Shingo says, separating external and internal activities will give the size of saving).

At the end of the five day event, one changeover and set up had been done in 7 hours.  Additional improvements  would take three more weeks to implement setup will take  5 to 5 1/2 hours.

Savings:  The company has four of these lathes and by applying what had been learned to all four lathes, sixty four hours per week could now be used for making parts.  With changeovers taking less than one shift, the company decided that they would make parts for that month requirement only , so the cost of parts being held in storage was eliminated.
http://www.systemsquality.com/id26.html


Setup Time Reduction on CNC Shaper  2011 article
http://www.interscience.in/IJMIE_Vol1Iss1/paper9.pdf

MS disseration on CNC Machine Setup Time Reduction 2009 - Haiqing Guo - MIT
http://dspace.mit.edu/bitstream/handle/1721.1/55215/611148027.pdf?...1



CNC Programming Handbook: A Comprehensive Guide to Practical CNC Programming
Peter Smid
Industrial Press Inc., 2003 - Computers - 508 pages

Extraordinarily comprehensive, this popular and authoritative reference covers just about every possible subject a typical CNC programmer may encounter on a daily basis. Fully indexed to help the user quickly locate topics of interest, this "industrial strength" handbook presents most common programming subjects in great depth and is equally applicable to both CNC milling and CNC turning operations. Many advanced subjects are also covered, thus making this an unusually comprehensive reference for machinists, programmers, engineers, and supervisors. Filled with over one thousand illustrations, tables, formulas, tips, shortcuts, and practical examples, this widely respected publication is structured in a logical order that is readily adaptable to virtually all levels of CNC training, from the basic to the advanced.
CNC Programming Handbook has just become more valuable than ever! A new CD-ROM, packed with actual problem-solving projects and enhancing the material presented in the book, is included for the first time. Users will find programming projects and exercises for most chapters, special programming and machining projects, solutions to problems, and numerous reference files useful in CNC programming, as well as several utilities. With the majority of files in Adobe PDF, instructors will be able to quickly and easily print and distribute any of the projects, exercises, and references to their classes. Meanwhile, students and professionals will find this CD an effective self-study aid that allows them to enhance their understanding of the subject one topic at a time. Presents complete information on various programming techniques, from the basic areas to dozens of advanced concepts. Includes more than 1,000 illustrations, tables, formulas, tips, shortcuts and real-world examples. Offers unparalleled reference material useful for skills training at all levels of CNC. Presents an encyclopedic, logically organized approach to CNC programming, allowing the reader to look up a subject of interest only. Uses cross references throughout to guide the reader to the proper answer or solution to a problem.
http://books.google.co.in/books?id=JNnQ8r5merMC

Understanding CNC Machines, Setup and Operation
Richard N. Jackson
Clinton Gilkie
http://books.google.co.in/books?id=GuBSl1NHSh4C

Organizational Skills Cut Machine Setup Time
http://www.mmsonline.com/columns/organizational-skills-cut-machine-setup-time

CNC Machining Fundamentals
http://www.mfgaa.com/fundamentals.html

Magnetic vice
http://www.industrydepot.com/ProductivityNews0113.htm

Zero point mounting kits for setup time reduction
http://clrh.com/swiftsure/starkkits.html

Set up Reduction – A perfect way for productivity improvement of computer numerical control (CNC) set
up in manufacturing company
by - Patel Chintan Kumar, Department of Mechanical Engineering, C. K. Pithawala College of Engineering and Technology, Dumas Road, Surat-395007, Gujarat, India.
17 August, 2012
http://academicjournals.org/article/article1382090861_Kumar.pdf

Benefits of Presetting systems - CNC Setup
http://www.pomlearning.org/reno/fullpapers/020-0030%20Statement%20of%20Losses.pdf


How to reduce setup time in CNC tool grinding?
http://rollomaticusa.wordpress.com/2013/01/08/12/


Spencer Tool Setter with CNC software program that assists your operator in accurately measuring and recording tool lengths into the CNC memory.
http://www.stevespencermachinery.com/?page_id=46


Setup Reduction For CNC Machining & Turning Centers CD Rom Course $239.00
http://stepper3.com/index.php?main_page=product_info&products_id=135

Vacuum Clamping technology for cnc tools
http://www.protech.hu/schmalz/CNC_Vakuum.pdf

CNC Tool Cart
http://blog.5ssupply.com/2013/08/19/one-simple-solution-to-reduce-waste-of-searching-for-cnc-machine-tooling/

Increasing CNC Production throughput with Tool Presetting with a YouTube video of 14 minutes embedded
2012
http://nextgentooling.com/profiles/blogs/increasing-cnc-production-throughput-with-tool-presetting

Workstops and Gang Tool Holders for CNC
http://toolpal.com/cnc-setup-tools/


CNC Machine Productivity Series Articles

http://www.cnccookbook.com/CCCNCMachiningManufacturing.htm

CNC Machine Productivity - Basic article
http://www.cnccookbook.com/CCCNCMachineShopProductivity.htm

Whether to focus on saving Machine Cycle Time or Machine Setup Time to improve Shop Productivity?
http://www.cnccookbook.com/CCCNCCycleTimeSetupTime.htm

Top Shops - What do they do differently?
http://blog.cnccookbook.com/2013/07/29/what-do-the-top-shops-do-that-makes-them-special/

Are you using High Speed Machining? - Above 18,000 rpm
http://www.cnccookbook.com/CCCNCMillFeedsSpeedsHighSpeedMachining.htm

By incorporating new CNC programming software to make full use of its new five-axis machining capabilities, Bob Lewis Machine Co. has reduced setups and programming time.
Case Study From: 4/19/2013 Modern Machine Shop
http://www.mmsonline.com/articles/cnc-programming-software-maximizes-five-axis-capability


Cycle Time Reduction for Bearing House Assembly
K. Saran Kumar Reddy, T. Panneer Selvam and R. Venkatraman
Published: June 30, 2012
http://scialert.net/fulltext/?doi=jas.2012.992.998&org=11

Mill/Turn centers or Multitasking machines.
http://www.sme.org/MEMagazine/Article.aspx?id=67675&taxid=1418

Drastic Reduction in piece times with high performance cnc machining - 2008
http://www.index-werke.de/mediadata/tnx-0199e.pdf


To be updated  7 April 2016

26.3.2014

Machining Process Improvements - Reference for Industrial Engineers

HYBRID MANUFACTURING, IMPROVING THE PROCESS CAPABILITY OF A TURNING OPERATION BY THE APPLICATION OF STATISTICAL TECHNIQUES,




_______________


2010

HYBRID MANUFACTURING
A customer in the piping field needed machined flanges to connect a variety of their pipes to tanks, engine blocks and manifolds. The traditional method for producing these flanges was to machine them from bar or plate. With PLSMFG’s ability to utilize various technologies to reduce costs and improve quality, we were able to provide a laser cut blank from plate that was subsequently machined in critical fit areas to achieve the same functional capability at a 20% cost savings from the existing method.
http://www.precisionlaser.com/machining/case-study-machining/ accessed on 8.3.2010.

Hard turning can be a cost effective alternative for shops looking to streamline part processing.
Hard turning is typically the turning of a part or barstock of harder than 45HRC on a lathe or turning center. 

Measurement on multi-axis machine tools is set to take a great leap forward with the introduction of a new version of Renishaw’s Productivity+™ suite of PC-based probing software. A key improvement is a new multi-axis option that allows more creativity and efficiency in machining processes, which supported by Renishaw’s high accuracy Rengage™ 3D technology-based touch probes and new ultra-compact radio probes, gives process engineers and machinists a wide choice of flexible process solutions
MACHINING PROCESS IMPROVEMENT फॉर PERMASWAGE USA (DMC)
BSME project report

2009

IMPROVING THE PROCESS CAPABILITY OF A TURNING OPERATION BY THE APPLICATION OF STATISTICAL TECHNIQUES

Hard Turning and Grinding on a Single Machine
Combining multiple technologies on a single machine makes the machining process more complex, but the advantages of consistent integration of such functionality can be worth the effort.

Hobbing On A Turning Center
Turning centers that include live-tool capability for milling and drilling.
2007
Ph.d Thesis:
PROCESS MONITORING AND CONTROL SYSTEM DESIGN, EVALUATION AND IMPLEMENTATION OF ABRASIVE MACHINING PROCESSES
12 key performance measures for Machine Shops - Survey Results
Justification for High Cost Tools - Reduction in Cycle Time
2005
How To Perfect A Machining Process (Or At Least How To Make It More Trustworthy)
2002
Machining Process Improvement by Practical Tests in Shop Floor
Setup Evaluation of Machines for Small Batches
2000
High Speed Machining and Hard Turning
Simulation and Optimization of Milling Processes
1999
Manufacturing Assessment Planner
1998
Cutting costs for grinding operations
________________
Vidoes
Haas Videos on Machine Tools
__________________

Videos on Machining Process Improvements

Knol - 2316

To be updated 7 April 2016
21.4.2012

High Throughput Machining - High Speed Machining



https://hsmadvisor.com/

Cimskil — High Throughput Manufacturing


DOD Contract Award - High Throughput Manufacturing Manufacturing Programs.
We were awarded Phase III of the DOD High Throughput Manufacturing Program for automation of manufacturing processes for titanium parts.

This contract, valued at $700,000.00 to our company, after cost-sharing with the Department of Defense, follows on from the Hithru Program Phases I and II.

Hithru Phases I and II addressed two major areas:

Automation of manufacturing engineering tasks for machining 5-axis aerospace parts, based upon the recognition of manufacturing features on the as-designed part with subsequent automated processing of all work required to produce the first good part.
Implementation of a means for end-users to easily program their manufacturing practices for use in automated processing.
For details of the highly encouraging results of Hithru to date, please see Hithru Program.

Team Members for Phases I and II, who were also in Phase III:

National Center for Manufacturing Sciences (Program Management)
Warner Robins Air Logistics Center
Sikorsky Aircraft
Cincinnati Machine
Technology Answers
It is appropriate here to record our thanks to the team members who provided us with so much advice and guidance - and criticism when necessary!

New Team Members for Phase III were:

Boeing Defense & Space
Naval Aviation Depot, Cherry Point
Project Objectives for Phase III

The objective of HITHRU phase III is to develop and capture in CimskilTM best manufacturing practices for titanium components, and apply that knowledge to productivity improvement.

Titanium machining is more complex than aluminum machining. The material is much harder, making the selection of tools, inserts, and coatings a critical factor in determining machining parameters such as axial and radial depth of cut, feed rate and spindle RPM. It is also more expensive than aluminum, resulting in a greater need for efficiency in shop cutting tests. Titanium components with long machining cycles, for a given feature, will require a tool change (to overcome tool dulling) before the feature is completed. That means that the machining system must compensate for any inaccuracy introduced via a tool change. The issue is further complicated by the fact that program participants use a mixture of slab and forging stocks. Slab stock can use the fixturing methods developed in HITHRU phase I, but forging stock will require new fixturing strategies.
http://www.cimskil.com/News.htm



Innovations in Advanced Manufacturing - Papers of Seminars
NIST, USA - 2009
http://www.nist.gov/el/upload/whitepapers.pdf

Guide to Hard Milling and High Speed Machining
Dale Mickelson
Industrial Press, Oct 11, 2006 - 400 pages
https://books.google.co.in/books?id=88OjBgAAQBAJ


High Speed Machining Cuts Moldmaking Cycle Time
15,000 rpm
http://www.mmsonline.com/articles/high-speed-machining-cuts-moldmaking-cycle-time



to be updated  7 Apr 2016

11 Apr 2015

Manufacturing Managers Questions - Topic-Wise - Industrial Engineering and Manufacturing Cost Management



# How industrial engineering concept can be integrated with product design?

# How to convince a team of people (with interest and without interest) for a change of betterment?

# Can't we run a manufacturing unit in a better way without industrial engineering support? For example, most of the small/medium scale units run without industrial engineer.

# If any product is running with minimum cost and the rejection rate as well as warranty claims are well within the target then how to progress further in value analysis/value engineering ensuring proper quality of the product.

# How to increase productivity even after reaching all the maximum target values in any production line?  Optimum cycle time/man power

# How to improve efficiency of operations?

# How to improve inventory and process lead time?

# How can we achieve best efficiency from the work force without any additional remunerations?

# What are the tools to achieve cost effectiveness even at the highest market price?

# With this versatile market demand, how to manage and maintain optimum inventory levels?

# Ways for increasing productivity

While deciding the time study, how much factor to be taken in starting?

# How to study time-motion of a process effectively?

How to reduce cost of product without cutting quality level?

While deciding the time study, how much factor to be taken in starting?

Is there any standard criteria between product cost, labour cost and manufacturing cost?

Quality Management vs Industrial engineering

Significance of allowances provided

How can JIT be applied ini mass production unit?

Process variation

Productivity Improvement

What the specific tools that can be used to increase efficiency of manufacturing operations?

How to relate motion study for a manual job?

How to increase productivity for the same machine where the cycle time remain constant.

Significance of industrial engineering in organisations business?

Every Industry takes a target of cost reduction in every year.  At the same time they need upgradation of quality every year.  To what extend it is logical

Cost optimization in manufacturing process.

Basic roles of Industrial Engineer to access a manufacturing  process.

How Quality of a product has been taken care by Industrial Engineer.

How to minimize repetitive Human errors?

How to you control the human behavior when it comes to making costly errors?

What are the basics of Industrial Engineering?  How to improve the Industrial Relationship?
The parameters to be focused for Productivity for meticulous performance?












# How manufacturing cost can be measured at each stage of production?
# What are the common/special considerations in working out manufacturing cost?
# How to calculate the manufacturing cost?

# How to calculate break even cost?

# How depreciation cost is calculated?

# Is there an ideal ratio of fixed and variable cost?

# Steps to be taken to meet the budgeted mfg. cost. even at less production volume compared to budgeted volume.

# What are different ways to control cost of product?

How to manage cost without compromising the basic standard of shop floor?

How to control manufacturing cost of a product?

What is the benefit of Manufacturing Cost Management?

Whether cost management talks only or cost Reduction?
----------------------------



# Understanding lean manufacturing and implementation procedure.


# Importance of outsourcing in manufacturing and control needed.


# Quality management - Comparing with competitors.

---------------------------
# Managing critical situation like one side despatch urgency - otherside quality abrasion.







# In the manufacturing sector, will the low cost automation serve long term benefit?

----------------------------

------------------------------

# What is manufacturing management and how can it help in our daily life as well as in our industry?

# Format for calculating different types of output

# Relation between demand and manufacturing department activities

# How to develop engineering skills in the operators?
-------------------



--------------------


# What are tools to utilise resources at the optimum during the lean period without hampering the employee expectations?
--------------------------------

----------------------------
# Explain inventory control in manufacturing.

# What are best practices in manufacturing?





----------------------------



----------------------------
# Cell concept of manufacturing



Up to how much level of cost cutting we can go so that our product can sustain in the market?

What is D.O.E.?





-------------------------
How to manage manufacturing where product life cycle is shrinking and market dynamics are changing?

How to manage manufacturing in global market scenario?

How to tackle new competitors entry with cost benefits?

How to manage wide product gamut and supply chain challenges?

------------------------
Role of automation

How to handle IR where process is varying?



-------------------------
What are various aspects of manufacturing management?





------------------------


Product cost control



Outsourcing - quality issues

Automation requirements - Why?


---------------------
Reduction in Operating cost

Control over Outsourcing

How to increase production, since there are fixed norms for production

How to motivate people for problem solving (improvement)?

Reduction in waste in case of random patterns

-----------------
How do you get productivity measures in maintenance field?


----------------
How to address less availability of manpower in QA functions for inspection activities?

Automation will it really lead to reduction of manpower when an organization is bound by trade unions.

In Indian industries, normally the shopfloor does not abide through 7 QC tools and sometimes ti gets impractical. How to make it effectie on the floor, apart from training.

Eximbank business excellence model or Manufacturing Business Excellence

How to estimate risk involved in any improvement implemented in shop floor through a statistical

 model?

-----------------



What are the latest best practices going on in the industy?



What impact is there for cost of quality?

Different methods of calculating cost of quality.





11.11.2014


Frequent change of manufacturing plan – How we can accommodation.
Conversion cost remain recharges with compare to last year though the other costs are variable.

How to accommodate with customers’ requirement (time base samples).
How to increase the skills throughout out operation as well as surprises.
--------------

How is the managerial effectiveness measured?
Leader is born or made! It made, how attribute of leadership are inculcated into the individual?
Do amenity measures leave input on customer delist and satisfactions and hence, overall business  substance in long run.
Inputting management or sells/marketing management or financial management or all three – plays significant role in business growth & enhancement of  bio on line when market  wide remains the same or in the force of economic     down worldwide?
----------------------------------
How do you evaluate the effectiveness of this type of programme?
Every industry takes a target to expand business in every year for a substantial %, How much it is realistic?

In every Industry, salary of workmen get revised after every 3 years based on chartered demand.  It is very difficult for manufacturing unit those who are long time player.  How do you analyse this?
Many Industries go for diversification on product with much having background.  How do you justify?
--------------------------------
What are the basic role of a manager for manufacturing excellence.


How personality related to manufacturing management.


------------------------------

What is the best way to bring people to same skill levels?
What is the threshold point for cost reduction?

How to handle other department heads who are fairly new do the company and may be working towards achieving their own short term goals?
---------------------
What is the course detail?
What does it mean by Manufacturing Management?
Faculty Background?
What is the benefit of Manufacturing Management?

-----------------
How to manage the Manufacturing Process by the person who has not been trained preciously by experience or Study or by skill?


How the Manufacturing cost optimized for healthy competition in the Market?
Cost or Price of a product : How these are guided by the Manufacturing Management?


-----------------


# How to manage cost without compromising the basic standard of shop floor?
-----------------
# How to manage costs during lean periods of market demand without having IR issues?
-----------------



These questions were asked in a programme conducted for manufacturing managers in 2014.
Course coordinate by dr. K.V.S.S. NRao

To be updated  7 Apr 2016
11.11.-14




Total Cost Industrial Engineering - Industrial Engineering of Enterprise Cost


Industrial Engineering is Human Effort Engineering and System Efficiency Engineering - Narayana Rao


Productivity is to be measured in cost terms.


Cost Measurement and Analysis-A Necessary Part of Industrial Engineering Education & Training
AuthorDeo, Balbinder S; Strong, Doug
IIE Annual Conference. Proceedings, 2002

Deo, Balbinder S.,(2001) 'Operation Based Costing Model for Measuring Productivity in Production Systems', PHD Thesis Submitted to The University of Manitoba (Canada), ProQuest Digital Dissertations, AAT NQ57506.

What is Industrial Engineering in practice?


It is the study of resource use to develop planning and control methods and data. Resource use is accounted for in units of resource as well as in money values. The money value of a resource is termed as cost or expense. Planning of resource use is also done in terms of units of resource and money terms. The objective of industrial engineering is resource use efficiency or elimination of waste of resources.


AACE, the Association for the Advancement of Cost Engineering, stated, "Most people would agree that ‘engineers’ and engineering — or, more generally, the ‘application of scientific principles and techniques’ — are most often responsible for creating functional things or strategic assets … "

Cost engineering profession advocates that an engineering professional must determine the activities needed to design and build a product, as well as estimate how long these activities will take and estimate the potential cost.
http://www.iienet2.org/details.aspx?id=21620

Industrial engineers have to justify their system improvement recommending through engineering economic analysis. As majority of the industrial engineering proposals are cost reduction projects, industrial engineers have to estimate costs using the existing method, costs using the proposed method and then calculate the summary profitability measures like NPV or IRR.

"Total cost industrial engineering is a framework that helps industrial engineers to visualize the total enterprise cost in terms of  individual resources, various processes or methods, various systems and products which they analyse to eliminate waste or improve efficiency and drive total cost reduction, waste elimination and improve efficiency."
(The framework can be developed similar to the thesis Towards a conceptual framework for strategic cost management - The concept, objectives, and instruments
http://www.qucosa.de/fileadmin/data/qucosa/documents/5228/data/Title_250706.pdf)

Value chain analysis proposed by Michael Porter in the context of strategic analysis for differentiation and cost advantage can be the starting point of developing the model for visualizing the total enterprise cost in terms of segments meaningful for IE activity.
Value Chain Analysis - A Base for Total Cost Industrial Engineering



_________________

Ideas to be included


Product ideas, product designs,production process plans, layout plans, inspection plans, maintenance plans etc. are part of the planning process. Industrial engineers' main responsibility is to take care of these engineering activities and their management. In this context an interesting paper to be read is

ROLE OF STRATEGIC PLANNING IN,ENGINEERING MANAGEMENT, Kumar Krishen, Ph.D.
NASA Johnson Space Center,  Houston, Texas 77058
http://ntrs.nasa.gov/archive/nasa/casi.ntrs.nasa.gov/19960023932_1996053021.pdf

In the abstract of the paper, this interesting statement is made.


The traditional roles of an  engineer  to  design, develop, and streamline (a product and its) a manufacturing process for a product are still valued and relevant.  However, the need for an engineer to participate in the process of identifying the product  to  be  developed,  the schedule and resources required, and the goal of
satisfying the customer, has become paramount to achieving the success of the enterprise. When we
include these endeavors in the functions of an engineer, management of “engineering” takes on a new dimension. In this paper, the ramifications of  the  changing and increased functions. of  an engineer and consequent impacts on engineering management are explored.

System cost industrial engineering

    Supply chain system cost industrial engineering
    Manufacturing system cost industrial engineering
    Information system cost industrial engineering
    Quality system cost industrial engineering
    Maintenance system cost industrial engineering
    Accounting system cost industrial engineering

Accounting for industrial engineering decisions

Cost estimating for engineering economic analysis of method studies, value engineering studies, operation research models, human effort engineering studies

Standard Costing
Standard cost of the product - break up in terms of processes and methods evaluated or to be evaluated by IE department - break up in terms of components to be examined by value engineering methodology.

IE departments have to visualize the total cost of the enterprise in terms of subsystems, processes and methods they improve, select the ones they would like to study and improve and declare the benefits they envisage in the new methods. Thus each IE productivity improvement project has to contribute to the reduction of a planned cost of a period. This sort of visually mapping of the benefit of IE projects would make the contribution of IEs to organizations very clear and also will push the industrial engineering to put in right efforts.

_________________


Total Cost Industrial Engineering - Research Papers



Total Cost Industrial Engineering - Research Papers


1. Cost: The ultimate measure of productivity
Deo, Balbinder S; Strong, Doug. Industrial Management42. 3 (May/Jun 2000): 20-23.


2. Cost Measurement and Analysis-A Necessary Part of Industrial Engineering Education & Training
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2002): 1-5.

3.  Operation Based Cost Measurement Model
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2002): 1-7.

4.  Comparative Outcome Of Productivity Measures- A Case Study
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2003): 1-6.


5.  Fixing the Problem of Subjectivity in the Concept of 'Activity' in Activity Based Costing (ABC) - An Engineering Perspective
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2003): 1-7.

6.  MODIFIED MULTIFACTOR PRODUCTIVITY APPROACH TO MEASURE PRODUCTIVITY OF OPERATIONS
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2004): 1-7.

7.  COSTING PRODUCTION SCENARIOS - A SIMULATION MODELING APPROACH
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2004): 1-6.

8.  AN EVALUATION MODEL FOR A SYSTEM DESIGN - AN ECOLOGICAL PERSPECTIVE
Deo, Balbinder S. IIE Annual Conference. Proceedings (2007): 1034-1040.

9.  Communicating cost and performance
Ding, Youmin; Strong, Doug; Deo, Balbinder. Industrial Management51. 4 (Jul/Aug 2009): 22-23,25,5.

10. Developing Generic 'Cost Based MIS Modules' for Process Oriented System
Deo, Balbinder S; Sra, Jaspreet, MSc. IIE Annual Conference. Proceedings (2012): 1-11.

------------------------------------------------------------------------------------

1
 Cost Measurement and Analysis-A Necessary Part of Industrial Engineering Education & Training
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2002): 1-5.

2
 Communicating cost and performance
Ding, Youmin; Strong, Doug; Deo, Balbinder. Industrial Management51. 4 (Jul/Aug 2009): 22-23,25,5.

3
 Cost: The ultimate measure of productivity
Deo, Balbinder S; Strong, Doug. Industrial Management42. 3 (May/Jun 2000): 20-23.

4
 Operation Based Cost Measurement Model
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2002): 1-7.

5
 MODIFIED MULTIFACTOR PRODUCTIVITY APPROACH TO MEASURE PRODUCTIVITY OF OPERATIONS
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2004): 1-7.

6
 COSTING PRODUCTION SCENARIOS - A SIMULATION MODELING APPROACH
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2004): 1-6.


Citation/AbstractFull textFull text - PDF (72 KB)‎
7
 AN EVALUATION MODEL FOR A SYSTEM DESIGN - AN ECOLOGICAL PERSPECTIVE
Deo, Balbinder S. IIE Annual Conference. Proceedings (2007): 1034-1040.

8
 Comparative Outcome Of Productivity Measures- A Case Study
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2003): 1-6.


9.
 Fixing the Problem of Subjectivity in the Concept of 'Activity' in Activity Based Costing (ABC) - An Engineering Perspective
Deo, Balbinder S; Strong, Doug. IIE Annual Conference. Proceedings (2003): 1-7.

10. Developing Generic 'Cost Based MIS Modules' for Process Oriented System
Deo, Balbinder S; Sra, Jaspreet, MSc. IIE Annual Conference. Proceedings (2012): 1-11.











Bibliography - Total Cost Industrial Engineering


Total Cost Industrial Engineering - Bibliography

http://www.aacei.org/educ/cert/cct/cct_primer.pdf

Papers Published by Industrial Engineering Professors in Costing Area

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Comments on the idea


Marshall Spencer

Industrial Engineer at Johnson Controls
Huntsville, Alabama Area

(In linkedin discussions) -
http://www.linkedin.com/groupItem?view=&gid=75670&type=member&item=96855630

In my experience, developing the framework for "total cost engineering" is well worth the investment in resources if they are available (which is mostly the time required by the IE to champion it), and if the results will be utilized as reportable measureables by management. But a lot of cost-engineering information can "fall through the cracks" or be ignored by controllers simply because there may be no place for it in the ledger format used by traditional cost accounting. 

There is usually a large rift between "cost" from an engineering perspective and "cost" as viewed by financial professionals. Therein lies the challenge. 

An innovative IE can "translate" much of the engineering-cost data into something that a controller can use. But the controller must be willing to accept it. 

By becoming proficient in understanding the "language" of financial people, the IE working in cost engineering will have an advantage and may find controllers more willing to accept cost-engineering information and put it into their measurables. 

In college I completed a very good course in engineering economics of which there was no equivalent in the business curriculum at that school. It was not the same approach to accounting as taught in the accounting classes. I would like to see undergraduate IE curriculums try to bridge that gap. It has the potential to enable IE's and controllers to develop an alliance and work more effectively toward a common goal.

My reply to the comment


You said "In college I completed a very good course in engineering economics"

My thinking also stems from that foundation only. Every industrial engineering recommendation has to be profitable in the engineering economic analysis. If IEs recommend many cost reduction projects, EE analysis requires the cost of existing method and the costs of proposed method. To do EE analysis, IEs require cost data. So cost related industrial engineering analysis has to provide this data to IEs. Shall we call it "Cost industrial engineering" or simply as "Cost engineering". Cost industrial engineering focuses the attention of IEs on pulling data from various existing sources in the company and then manipulating the data to come out with information useful to aid IEs in the work. Total cost industrial engineering does the same thing at enterprise level.

I am happy with your support to the idea.

"In my experience, developing the framework for "total cost engineering" is well worth the investment in resources if they are available (which is mostly the time required by the IE to champion it), and if the results will be utilized as reportable measureables by management."

Details emerge slowly as some IEs think over the issue. If we bring an issue into the open and point out that there is scope, the beginning would be made. I have an advantage in the area to make some speculation, as my research work after PG in IE is in the area of stock markets and then I spent five years in conducting training programs in the modern developments in cost accounting and cost management. Now I am involved in developing and teaching "Introduction to industrial engineering" and "Strategic perspectives of industrial engineering"

I connected engineering economic analysis and cost analysis in my first few paragraphs of my note on TCIE. You also referred to the same background. That is a good coincidence. Thank you for the synergy.

http://www.nraoiekc.blogspot.com/2012/09/total-cost-industrial-engineering.html

Let me see, when can I develop some more detailed version on the topic.

Comment by D. Rajasekhar (23.9.2012)


Dear Narayana Rao,

I would like you to reflect on some of my views on Total cost industrial engineering.
I have read the contents in detail.
How is it different from Lean management ? Request your views.
With all my experience of 33 years in Mfg industry I would like to say cost focus without time element as an integral part is meaningless.
Very often many executives put emphasis on cost.
I have seen many Development Projects in my career did not deliver results due to step motherly treatment given to time over cost.
I have myself experienced Projects resulting in grand success by doing in time even with cost overrun.
In industry COQ ( cost of quality) often goes out of estimates due to poor management of time also.

That is why I always advocate my engineers TIME,QUALITY,COST and RISK.

My reply


In this concept of Total Cost Industrial Engineering, we may not be referring analytically to project cost. As you know, whenever any scientific relation is proposed, the concepts involved are specially defined.

This idea is an offshoot of an idea that the productivity improvement is to be expressed in cost. Productivity improvement is reduction in use of resources, and if at all it occurs, cost has to reduce. So we are having a map of total cost of the organization at a point in time, in terms of industrial engineering segment view of the enterprise and we want to see the contribution of industrial engineering as reduction of cost in some of the segments. It is to plan and do industrial engineering and show its contribution.

Cost, Quality, Time, Flexibility, Risk, Delivery are all important and industrial engineering may not cover all of them. Certainly time was a focus of industrial engineering and even now it is. This refers more to the operation times. We are not talking of trade offs between these dimensions which is an important managerial problem in operations management. The issue raised by you regarding time and cost of a project is a trade off problem and only a manager on the spot can understand the trade off involved. Your view is to be respected by us.  But  improvement in each dimension or relative improvement among dimensions is possible over time with effort.

Is lean management an industrial engineering innovation or operations management innovation? Lean management is a description of the Toyota Production system by Womack of MIT and it certainly became very popular idea. It in essence an industrial engineering initiative - because waste elimination or efficiency improvement is an industrial engineering concern for the last 100 years.  Total Cost Industrial Engineering can become in one sense Cost Stream Mapping that helps industrial engineers to view the total cost in segments useful to them. So, it is imitating Value stream mapping, another idea that became popular. To support lean management, there is lean cost management and accounting. In a similar way, to support industrial engineering (lean management is a branded technique of IE -my view of it), there will be total cost industrial engineering.


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First published on 21.9.2012

Updated subsequently many times
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To be updated  7 Apr 2016
Last updated 9.9.2014