Wednesday, May 11, 2016

Explanation for the Words "Industrial" and "Engineering" in Industrial Engineering

Pure Engineering - Industrial Engineering

Pure Engineering: Technical Product

Industrial Engineering - Product at the price paid by the customer and maximum profit to the firm through resource use minimization.

That is why Taiichi Ohno termed it Profit engineering
Target costing developed in Japan best explains the role of industrial engineering.

IE techniques are primarily used for improving technical processes and managerial processes of technical processes (planning, organizing, resourcing, executing and controlling of technical tasks and processes) for increasing productivity. All IE pioneers worked in engineering concerns. They improved technical processes as well as managerial methods and processes used to manage technical processes.

F.W. Taylor improved metal cutting, machines, and management of machine shop through his functional management scheme.

Gilbreth improved bricklaying process by making changes in techniques. Then he proceeded to make fatigue studies to decide the speed at which workers can function and also time.

As an augmented activity, IE is applied to business processes and managerial activities related to business processes.

The emphasis on engineering tasks is the engineering component of industrial engineering. Emphasis on making products profitable is the explanation for the term "industrial". Technical products are made commercial products or industrial products by IEs by reducing their costs below the prices quoted by potential consumers.

The basis for reduction of costs is better explained by value engineering. A potential customer quotes a price for a new product by the services it provides to him and by comparison to the prices that he is paying for current equipment that he is using. So for reducing the costs of a proposed product to bring it in line with customer's quote, industrial engineers have to study the architecture of the current products being used by potential customers. They need to get ideas for redesigning the proposed product by understanding how the required functions are being provided by the existing products being currently used at a lower cost. In investigating the product, the processes being used for producing them also come into investigation.

1908 – The industrial engineering department at Penn State is founded by Hugo Diemer, a pioneer in the field. Diemer coined the term “industrial engineering” in 1900 to describe the fusion of engineering and business disciplines. Diemer is named the first head of the department.

Updated  11 May 2016
Published on 9 May 2016

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