Sunday, July 31, 2016

August First Week - Industrial Engineering Knowledge Revision

In this month's revision plan the focus is on production process improvement which also includes management of processes. If management is responsible for poor productivity, industrial engineers have to propose changes in management methods, practices and tools to improve productivity.

Process Efficiency Improvement

Technology Efficiency Engineering


First Week

   The Function of Methods Efficiency Engineering
   Approach to Operation Analysis as a Step in Methods Efficiency Engineering

   Scope and Limitations of Methods Efficiency Engineering
    Operation Analysis Sheet

    Using the Operation Analysis Sheet
    Analysis of Purpose of Operation

    Analysis of All Operations of a Process as a Step of Each Operation Analysis
    Analysis of Tolerances and Inspection Standards

    Analysis of Material in Operation Analysis
    Tool Related Operation Analysis

Saturday, July 30, 2016

Operation Analysis Sheet

The entire process commonly known as "operation analysis" consists principally of finding out all known facts that affect a given operation and redesign the operation to give better efficiency.

Importance of Systematic Procedure in Operation Analysis

In making operation analysis, a systematic procedure is to be followed  so that points of cardinal importance are analyzed without giving a miss. The simple question "What is the purpose of the operation?" is very important as it may disclose that the operation can be eliminated or combined with another operation.

Nine Points of Primary Analysis (Maynard). There are nine main points or factors that should be considered in every operation analyzed. These, arranged in order of importance, are as follows :

1. Purpose of operation.

2. Complete survey of all operations performed on part.

3. Inspection requirements.

4. Material.

5. Material handling.

6. Setup and tool equipment.

7. Common possibilities for job improvement.

8. Working conditions.

9. Method.

The suggested sequence has to be followed, but in actual practice, it is seldom possible to complete the analysis of one factor at a time and then leave it for good. Several of the factors, as for example setup and method, are interdependent, and scope for affecting an improvement by modifying an earlier factor may be noticed when analyzing another factor at a later stage. So, the complete analysis of all the factors is over only when the last item method is completely analyzed.

Mental Analysis of Process and Operation 

The analysis which is made by observation alone may be either mental or written. The mental analysis is, of course, the quicker, but it is also the less satisfactory. Because of the quickness with which mental analyses can be made, they are used on jobs where low activity or labor expenditure makes it uneconomical to make an elaborate analysis. A mental analysis is far superior to no analysis at all. Mental analysis is advised to the time study analyst. He has to do it at least briefly before time measurement is begun.

On work of a jobbing nature, the conditions surrounding the class of work as a whole should be analyzed in considerable detail the first time the work is subjected to detailed study. Such factors as material handling and working conditions should be gone into thoroughly, and all improvements that seem advisable should be made at once. Then, when individual jobs are studied, it will not be necessary to analyze repeatedly these factors, which are common to all jobs, and full attention may be directed to those factors which concern only the operation being studied.

Mental analyses if systematically made will produce many good results. Many jobs can be improved relying solely on mental analysis to bring about the results.

The danger in this type of analysis is that some factor will be overlooked or at least be questioned too briefly. It is easy to give an improperly considered answer to a question when the answer need not be committed to writing. The necessity of recording a clear and concise answer on paper insures that the question will receive proper consideration.

When the analysis should be conducted systematically. the analysis sheet described below is used. The general arrangement of this form may profitably be memorized. It can then be followed step by step in making even a brief mental analysis, with the result that when the analysis is completed one can be certain that no step has been overlooked.

The completedf analysis sheets, if accessibly filed, will often prove valuable for future reference, since they show most completely the conditions that existed at the time the study was made. They will also prove valuable at a later date when making reports of accomplishment.

In brief, written analyses offer the same advantages that any other class of written records offers. Hence, it is strongly recommended that written analyses be used wherever methods studies are conducted.

The Operation Analysis Sheet

In order to simplify the work of making written analyses, a form known as the " analysis sheet" has been designed by the Methods Engineering Council. Since its introduction, its use has spread rapidly, In securing the information needed to fill out the form completely, one will be certain to make a complete analysis.

The front of a blank analysis-sheet form is shown by Fig. 40 (Maynard) and the back by Fig. 41. At the top of the form on the front side, space is provided for identifying completely the analysis, the part, and the operation.

Item 1.  The first point considered is the purpose of the operation. If analysis shows that the operation serves a definite purpose, various other means of accomplishing the same result are considered to see if a better way can be found.

Item 2. If operation or flow process charts have not been constructed, all the operations performed on the part are next listed. The purpose of this is to determine just how the operation being analyzed fits in with the other operations that are performed on the part. This study frequently brings to light the fact that the operation being analyzed can be eliminated altogether or that, by combining it with other operations or performing it during the idle period of another operation, the time for doing it can be materially reduced. Again, it is sometimes found that the sequence of operations is not the best possible and that unnecessary work is being performed for this reason. Another common condition which is discovered at this stage of the analysis is that the part is being shipped about among departments more than is necessary. It may be that, instead of sending a part to a distant department to have a simple operation performed upon it, it would be better to move the work station. These possibilities and all others mentioned here will be covered more fully in the chapters devoted to a complete discussion and illustration of each of the nine points of primary analysis.

Item. 3. The inspection requirements of the job must be looked into thoroughly, for the accuracy required has a direct bearing on the methods used to produce the work. The analyst should consider it his duty to investigate them in order to satisfy himself as to their necessity. Occasionally, inspection requirements are hurriedly and incorrectly established, and a subsequent check will bring this to light. Usually, the requirements err in the direction of unnecessary accuracy; for if the requirements are too loose, the part will not function properly in the final assembly and the error will be caught. Occasionally, however, the analyst will find that if the requirements are made more exacting on one operation, a subsequent operation will be made easier to perform.

Item 4. The material of which the part being studied is made is specified by the design engineer and theoretically should not concern the analyst. Design engineers, however, like all other human beings are not infallible and sometimes specify an unnecessarily costly material. It is proper and necessary that the methods engineer should check on cases of this kind and bring them to the attention of the designers.

In other cases, certain materials present shop difficulties that may not be known to the designer. A certain cheap, brittle material may be so difficult to machine that an excessive amount of scrap results. Here investigation might show that it would be less expensive in the end to specify a more costly but more easily machined material.

Item 5. Material handling is a study in itself. That it has received a great deal of attention on the part of management is evidenced by the wide application of conveyers, cranes, trucks, and other mechanical handling devices. Manual handling, however, is encountered frequently, and should be carefully studied where found. Handling problems are as numerous and varied as the parts handled, but they offer a fertile field for savings. In general, the part that is the least handled is the best handled.

Although it is commonly thought that conveyers can be used to advantage only in mass-production work, there are types on the market that are equally successful in jobbing work. Not only do the latter conveyers eliminate material-handling labor, but if they are used in conjunction with a dispatching system they permit far better production control than is usually obtained in miscellaneous, small-quantity work.

Many plants are laid out, if a careful study has not been made, so that a great deal of unnecessary handling is required, particularly if the plant has gone through a period of rapid expansion. Major changes of layout do not usually result from the analysis of a single job, although they may. However, the matter of general layout should be given at least passing consideration under items 2, 5; and 8 of the analysis sheet. As a result of this preliminary work, the analyst will be in a good position to undertake a major layout revision when the occasion arises.

Item 6. The term "setup" is loosely used throughout industry to signify the workplace layout, the adjusted machine tool, or the elemental operations performed to get ready to do the job and to tear down after the job has been done. More exactly, the arrangement of  the material, tools, and supplies that is made preparatory to doing the job may be referred to as the " work-place layout." Any tools, jigs, and fixtures located in a definite position for the purpose of doing a job may be referred to as "being set up'  or as "the setup." The operations that precede and follow the performing of the repetitive elements of the job during which the workplace layout or setup is first made and subsequently cleared away may be called " make-ready" and "put-away" operations. For the sake of clearness, the more exact phraseology will be used throughout this book, although the workplace layout, the setup, and the make-ready and put-away operations are all considered under item 6 on the analysis sheet.

The workplace layout and the setup, or both, are important because they largely determine the method and motions that must be followed to do the job. If the workplace layout is improperly made, longer motions than should be necessary will be required to get materials and supplies. It is not uncommon to find a layout arranged so that it is necessary for the operator to take a step or two every time he needs material, when a slight and entirely practical rearrangement of the workplace layout would make it possible to reach all material, tools, and supplies from one position. Such obviously energy-wasting layouts are encountered frequently where methods studies have not been made and when encountered serve to emphasize the importance of and the necessity for systematic operation Analysis.

The manner in which the make-ready and put-away operations are performed is worthy of study, particularly if manufacturing quantities are small, necessitating frequent changes in layouts and setups. On many jobs involving only a few pieces, the time required for the make-ready and put-away operations is greater than the time required to do the actual work. The importance of studying carefully these nonrepetitive operations is therefore apparent. When it can be arranged, it is often advisable to have certain men perform the make-ready and put-away operations and others do the work. The setup men become skilled at making workplace layouts and setups, just as the other men become skilled at the more repetitive work. In addition, on machine work it is usually possible to supply them with a standard tool kit for use in making setups, thus eliminating many trips to the locker or to the toolroom.

The tool equipment used on any operation is most important, and it is worthy of careful study. Repetitive jobs are usually tooled up efficiently, but there are many opportunities for savings through the use of well-designed tools on small-quantity work which are often overlooked. For example, if a wrench fits a given nut and is strong enough for the work it is to do, usually little further attention is given to it. There are many kinds of wrenches, however. The list includes monkey wrenches, open-end wrenches, self-ad justing wrenches, socket wrenches, ratchet wrenches, and various kinds of power-driven wrenches. The time required to tighten the same nut with each type of wrench is different. The more efficient wrenches cost more, of course, but for each application there is one wrench that can be used with greater over-all economy than any other. Therefore, it pays to study wrench equipment in all classes of work. The same remarks apply to other small tools.

Jigs, fixtures, and other holding devices too often are designed without thought of the motions that will be required to operate them. Unless a job is very active, it may not pay to redesign an inefficient device, but the factors that cause it to be inefficient may be brought to the attention of the tool designer so that future designs will be improved.

Item 7. There are a number of changes that can be made to workplace layouts, setups, and methods which are brought to light by job analysis. Of these, there are 10 that are encountered frequently, and 1 or more may be made on nearly every job studied.

1. Install gravity delivery chutes.

2. Use drop delivery.

3. Compare methods if more than one operator is working on
same job.

4. Provide correct chair for operator.

5. Improve jigs or fixtures by providing ejectors, quick-acting
clamps, etc.

6. Use foot-operated mechanisms.

7. Arrange for two-handed operation.

8. Arrange tools or parts within normal working area.

9. Change layout to eliminate backtracking and to permit coupling of machines.

10. Utilize all improvements developed for other jobs.

These improvements are comparatively easy to make. If the analyst is observant and on the alert for inefficient operating practices, the possibility of applying them can be recognized without resorting to detailed motion or time study. Specific applications of each point will be discussed later.

Item 8. Working conditions have an important influence on production. This has been widely recognized during recent years, and the more modern plants usually provide working conditions that the methods engineer considers to be suitable. In the older plants, or in modern plants where methods studies have not been made, poor working conditions are frequently encountered. In most cases, it is best to correct them. It is sometimes difficult to justify the cost of making such improvements by direct labor savings, but there are other factors that must be considered in this connection. The human element cannot be neglected. Conditions that are unhealthy, uncomfortable, or hazardous breed dissatisfaction. Besides lowering production, they increase labor turnover and accidents and often lead to labor unrest.

There are certain other factors that are worthy of at least passing consideration during analysis, and the most important of these are listed as "other conditions" under item 8. The design of the part, of course, plays an important role in the methods that must be used to produce it. In the majority of cases, the design is fixed by the engineering, functional, or appearance requirements of the product, but occasionally a part is encountered that can be redesigned to make its production easier without in any way affecting its ultimate purpose. In addition to this, certain minor features of design can sometimes be suggested that will help to fit the product to the limitations of the tools which are to produce it.

Item 9. The analysis of the method followed in performing the operation is the most important part of the study. The consideration of the method is seldom, if ever, complete at the time the analysis sheet is filled in but goes on in one form or another during the remainder of the time the job is studied.

The method that is established after analysis and motion study is recorded under 9 in order that the analysis sheet may provide a complete record of the job, although, strictly speaking, this information does not belong under the head of analysis.

Usually the analysis of the method requires the drawing of one or more types of process chart, and often a number of computations are involved. This information should be gathered together in the form of a supplementary report and identified by a note on the analysis sheet.

The foregoing gives a general description of the items on the analysis sheet. Specific methods of approaching the analysis of each item, illustrated by examples are given in the chapters related to each factor.

Source: Operation Analysis by Maynard

Full Knol Book - Method Study: Methods Efficiency Engineering - Knol Book

For more information on recent development in material handling visit
Material Handling Solutions and Equipment - Information Board

Updated 1 August 2016,  28 February 2014

Wednesday, July 27, 2016

You Can Reduce Fuel Costs - Ideas For Fuel Cost Reduction

Fleetmatics Helps in Fuel Cost Reduction


Companies that have multiple vehicles that rely on gasoline or diesel fuel to service their customers have an entire staff of drivers, and a responsibility to see that those drivers are making the most efficient use of their vehicles, time and fuel. Without close supervision and sophisticated monitoring systems to control these factors, they are in danger of losing profits due to these unmanaged costs.

You can download a White Paper Containing:

How GPS Tracking can Impact Fuel Costs
3rd Party Research & Case Studies on fuel cost reduction

Friday, July 15, 2016

Exploring Engineering - Book Information

Exploring Engineering: An Introduction to Engineering and Design

Philip Kosky, Robert T. Balmer, William D. Keat, George Wise
Academic Press, 11-Jun-2015 - Technology & Engineering - 552 pages

Exploring Engineering, Fourth Edition: An Introduction to Engineering and Design presents the emerging challenges engineers face in a wide range of areas as they work to help improve our quality of life. In this classic textbook, the authors explain what engineers actually do, from the fundamental principles that form the basis of their work to the application of that knowledge within a structured design process. The text itself is organized into three parts: Lead-On, Minds-On, Hands-On. This organization allows the authors to give a basic introduction to engineering methods, then show the application of these principles and methods, and finally present a design challenge. This book is an ideal introduction for anyone interested in exploring the various fields of engineering and learning how engineers work to solve problems.

Organization of Industrial Engineering Department - Suggestion by Hugo Diemer in 1912

HUGO DIEMER, M.E., Professor of Industrial Engineering, Pennsylvania State College, and Consulting Industrial Engineer.

Hugo Diemer was the first faculty member of Industrial Engineering and he developed the first undergraduate programme in industrial engineering in Pennsylvania State College.

In the following article he explained the development of staff assistance to manufacturing department.

Factory Organization in Relation to Industrial Education
Author(s): Hugo Diemer
Source: The Annals of the American Academy of Political and Social Science, Vol. 44, TheOutlook for Industrial Peace (Nov., 1912), pp. 130-140
Published by: Sage Publications, Inc. in association with the American Academy ofPolitical and Social Science

Type of Staff Organization to be Applied to Manufacturing Side of Industries.

Mr. Harrington Emerson suggested staff control to cover four groups: 1, men; 2, materials; 3, equipment; 4, methods and conditions.

Mr. Frederick Taylor advocated  shop control to be handled by four types of executive functional heads whom he designates as 1, "gang boss;" 2, "speed boss;" 3, "inspector," and 4, "repair boss."

Diemer proposed staff departments for  1. records; 2. materials; 3. plant, equipment and processes; 4. men.

Work of  functional staff departments 

Department of Records.

It is primarily a research and advisory department the results of whose investigations and whose recommendations are brought up at such meetings of department heads and others as may have been predetermined. It is the duty of the record department to see that from each set of records is secured a method of most effective analysis so that the records of the past may be compared with records of the present and conclusions may be drawn as to future action. The individuals engaged in this department must be experts in theory of accounts, the science of statistics, the art of graphical presentation and cost accounting. The tendencies and facts indicated by an analysis of the records must be brought forcibly to the attention of all individuals whose actions based on experience and intuition differ from the action indicated by an analysis of figures, records and statistics.

Department of Materials.
This department assesses relation between materials indicated by the technology (designs) and the availability of various materials in the market, with constant attention to cost reduction as well as the bettering of product.

Department of Plant, Equipment and Processes.

This department is concerned with: 1., routing; 2. scheduling; 3. motion and time studies; 4. preparation of instruction sheets and cards; 5, standardization of equipment. In all of these matters the work of the staff department ends with the adoption of the method.

The routine work is carried on by men adapted to carry out routine work successfully that is line management and operating employees. For instance, the routine work of the planning or production department, is not a staff department activity.

1.Routing.-This involves a study of the processes and product and the preparation of process maps for the various classes of product and determination of most predominant paths, together with floor spaces, weights, bulks, etc., involved, and recommendations as to rearrangements of equipment, and departments and proposals as to building modifications and extensions. It consists further in the designation of which department, machine and class of individuals are to perform the operations indicated by the instructions and the recording of such assignments in such a way that the scheduling department can, in consultation with the department of records, prepare means for enabling the planning or production department to have positive definite information as to the work ahead for each individual, machine and department.

2. Scheduling.-This consists of the determination of the manner in which all orders which are to be worked on by the various departments of the establishment are to be listed so as to determine their sequence and the methods of preparing a definite program in order that the shop may be provided by the production department with a daily schedule covering the sequence of all work for the day.

3. Motion and Time Studies.-Motion study consists of the analysis of each process into its ultimate simplest steps, and the elimination of useless or improper motions. This process is prerequisite to and more difficult than time study, which consists in the timing with a stop watch all the elements indicated by the motion study. Based on motion studies, detailed instructions are to be prepared which are to be the standard practice and are not to be departed from. Proposals for different steps or methods from the standard are to be encouraged and duly rewarded if they result in improvements. The instruction sheets are to be furnished to the production or planning department by the staff department on plant, equipment and processes in just the same manner that the designing department furnishes the detailed shop working drawings for the designed product.

4. Standardization of Equipment.-This covers all items other than those involving motion and time studies, such as tools, appliances and fixtures.

5. Department of Men.-This staff department will consider: i). hygiene and efficiency; ii). psychology and efficiency; iii). industrial education and efficiency; iv).  development of loyalty, through social and religious activities.

Hygiene and Efficiency.-This section will deal with hygiene aspects like adequate provisions for pure and abundant drinking water, proper sanitary and toilet arrangements, first aid to the injured, eye-strain due to poor light, poorly directed light, glare, lassitude due to impure air or too dry air, discomfort due to temperature being too hot or too cold, together with installation of proper remedies and maintenance of proper conditions.

Psychology and Efficiency.- Careful researches must be made as to the presence of avoidable fatigue due to such factors as monotony of occupation, long maintenance of a single position, constant repeti- tion of certain movements, lack of conversation, studies of temperaments of eligible candidates for promotion so as to give due consideration to these characteristics of future gang leaders, assistant foremen, foremen and other officials.   Sympathy and discipline have to be simultaneously displayed by leaders of people.

Industrial Education.-This department provides for training of apprentices, and provides  means for each individual, so far as possible, for attaining greater efficiency. There must be systematic selection of each individual for his work and he must be given planned systematic training for further development.  This department also takes care of shop library or libraries.

Development of Loyalty Through Social and Religious Activities.- Systematic and continuous efforts must be made to make each individual's work inspiring and to get each man interested in his work. The system of promotion must be such as to afford numerous examples whereby ambition may be preserved.  Activities in the interests of good fellowship and social democracy will tend toward fair play for all and the avoidance of sharp practices in the dealings of employees with each other.

It is interesting to note this function indicated by Diemer.
4. Standardization of Equipment.-This covers all items other than those involving motion and time studies, such as tools, appliances and fixtures.

Industrial engineering has not developed adequately this aspect of industrial engineering.

Department of Materials.
This department assesses relation between materials indicated by the technology (designs) and the availability of various materials in the market, with constant attention to cost reduction as well as the bettering of product.

Department of materials is also an interesting idea that was later developed into value engineering by L.D. Miles.

Tuesday, July 12, 2016

Statistics and Industrial Engineering

Statistics and Industrial Engineering
Author: Narayana Rao

Last edited on Knol: 22 Jul 2010
Exported : 26 Nov 2011

Original URL:

Statistics, Industrial Engineering and Efficiency

F.W. Taylor has indicated that data collected for machine shop will be in thousands of pages. Harrington Emerson included records in his book 12 Principles of Efficiency. Their contemporary, professor of industrial engineering, Diemer wrote:

"Department of Records.
 It is primarily a research and advisory department the results of  whose investigations and whose recommendations are brought up  at such meetings of department heads and others as may have been
 predetermined. It is the duty of the record department to see that  records kept by various departments are not merely kept and stored  away, but that from each set of records is secured a method of most  effective analysis so that the records of the past may be compared  with records of the present and conclusions may be drawn as to future  action. The individuals engaged in this department must be experts  in theory of accounts, the science of statistics, the art of graphical
 presentation and cost accounting. The tendencies and facts indi cated by an analysis of the records must be brought forcibly  to the attention of all individuals whose actions based on experience
 and intuition differ from the action indicated by an analysis of figures,  records and statistics."

Reference: Factory Organization in Relation to Industrial Education
Author(s): Hugo Diemer
Source: The Annals of the American Academy of Political and Social Science, Vol. 44, The
Outlook for Industrial Peace (Nov., 1912), pp. 130-140

Industrial engineering has taken up the responsibility of using statistics to make processes in organizations efficient. May be Walter Shewart is the first statistician to develop a systematic method for applying the concepts and methods of statistics to industrial process control problems and industrial engineering has adopted statistical process control as a method to be installed in companies through IE department.



No  two objects in the world around us, nor any two actions performed by the same or by different individuals, are exactly identical. Precision machine parts produced in quantity by the same operator busing identical tools and equipment will, upon examination show a definite variability.

Manufacturers try to reduce the variability of their output. The complete elimination of  variability in production is usually not feasible, and would be entirely uneconomical even if feasible. Instead, the manufacturer's philosophy is based on a tolerable, statistically predictable, level of imperfect product.

Source:   Siegmund Halpern, The Assurance Sciences, Prentice-Hall, Inc,. Englewood Cliffs, New Jersey, 1978,p.66.

Quality control enables us to ascertain sudden or gradual changes in product variability (or establish trends) to permit the institution of timely corrective action that will avoid production of costly scrap.


Remembering Walter Shewhart (Quality Magazine, March 2, 2009)

Dr Mark Wilcox, Centre for Business Performance; Cranfield School of Management, Cranfield University, Cranfield, United Kingdom. MK430AL

Multivariate Quality Control - Historical Perspective

Shewhart’s Charts and the Probability Approach
Henry R. Neave and Donald J. Wheeler
© 1996

Variation through Ages Quality Progress Dec 1990 (interesting article)


Updated  14 July 2016,  23 July 2012

Principles of Industrial Engineering - Centenary Year

The book, Principles of Industrial Engineering, by Charles Buxton Going was published in the year 1911. 2010-11 is its centenary year. Industrial engineers can read this book now in

In the first chapter Going explained the work of industrial engineers in a very clear and vivid manner. Every industrial engineering student is to be advised to read this chapter. The chapter is given below. (Summary of the chapter is available in  What is industrial engineering? Going's Answer in 1911  )

This book has survived long enough for the copyright to expire and the book 
to enter  the public domain.  A public domain book is one that was never subject 
to copyright or whose legal copyright term has expired. 




INDUSTRIAL engineering is the formulated science of management. 
It directs the efficient conduct of manufacturing, construction, transportation, or even 
commercial enterprises of any undertaking, indeed, in which human labor is directed to 
accomplishing any kind of work. It is of very recent origin. 

Indeed, it is only just emerging from the formative period has only just crystallized, so to
speak,from the solution in which its elements have been combining during the past one or
two decades. The conditions that have brought into being this new applied science, this
new branch of engineering, grew out witnessed in other fields of human effort when some
great change, internal or external, forced them from a position of very minor importance
into that of a of the rise and enormous expansion of the manufacturing system. This
phenomenon of the evolution of a new applied science is like those that have been major
service to civilization. Columbus could blow across the ocean in a caravel to an unknown
landfall; but before a regular packet service could be its own, by which new practitioners
can be trained, by which certainty, safety run between New York and Liverpool navigation
must be made a science.
It has drawn upon older, purer sciences for its fundamental data upon astronomy, meteorology
and hydrography, and later upon marine steam engineering and electricity; but out of all 
these it has fused a distinct body of science of and efficiency of performance may be 
substantially assured. 

Navigation is not merely making correct observation of the sun and stars, of lights and
beacons, of log and lead; it is not merely directing the propelling and steering machinery;
it is not merely knowledge of courses and distances; it is not merely storm strategy. It is
the co-ordination of all these in handling the equipment provided by the marine engineer and
naval architect, through the work of a crew of men.
In somewhat like manner, industrial engineering has drawn upon mechanical engineering, upon
economics, sociology, psychology, philosophy, accountancy, to fuse from these older sciences 
a distinct body of science of its own. It does not consist merely in the financial or 
commercial direction, nor merely in running the power-plant or machinery, nor merely in 
devising processes or methods. It consists in co-ordinating all these things, and others, in 
the direction of the work of operatives, using the equipment provided by the engineer, 
machinery builder, and architect. 

The cycle of operations which the industrial engineer directs is this: Money is converted 
into raw materials and operations of purchase, manufacture, sale, and the administration 
connected with each. labor; raw materials and labor are converted into finished product or 
services of some kind; finished product, or service, is converted back into money. The 
difference between the first money and the last money is (in a very broad sense) the gross 
profit of the operation. Part of this is absorbed in the intervening conversions

Now the starting level (that is, the cost of raw materials and labor) and the final level
(the price obtainable for finished product) these two levels are generally fixed by
competition and market conditions, as surely and as definitely as the differences in level
between intake and tail race are fixed in a water power. Hence our profit, like the energy
conversions between these levels. In the hydroelectric delivered at the bus bars, varies not
only with the volume passing from level, to level, but with the efficiency of the losses are
commercial, manufacturing, administrative. It is power-plant, the conversion losses are
hydraulic, mechanical and electrical. In any industrial enterprise the conversion many
mechanical engineers superintending special depart- with the efficiency of these latter
conversions that industrial engineering is concerned.
The industrial engineer may have in his organization staff cient and economical production.
He is concerned not only ments  design or construction, or the power-plant, for in- 
stance  while his own duty is to co-ordinate all these factors, and many more, for the one 
great, central purpose of effi- is the inclusion of the economic and the human elements es- 
with the direction of the great sources of power in nature, but with the direction of these 
forces as exerted by machinery, working upon materials, and operated by men. It 
pecially that differentiates industrial engineering from the agement of men and the 
definition and direction of policies older established branches of the profession. To put it 
in another way : The work of the industrial engineer not only covers technical counsel and 
superintendence of the technical elements of large enterprises, but extends also over the 
man- is analytical  we might almost call it passive to distinguish in fields that the 
financial or commercial man has always considered exclusively his own. 

In general, the work of the industrial engineer, or, to use a yet more inclusive term which 
is coming into general use, the efficiency engineer, has two phases. The first of these in a 
form that increases our useful working knowledge of it from the second phase, which is 
synthetic, creative, and most emphatically active. The analytical phase of industrial or 
efficiency engineering deals merely with the things that already exist. It examines into 
facts and conditions, dissects them, analyzes them, weighs them, and shows them are normal. 
To this sort of work Harrington Emerson ap- the industry with which we have to deal. To this province 
of industrial engineering belong the collection and tabulation of statistics about a business,
the accurate determination and analysis of costs, and the comparison of these costs with 
established standards so as to determine whether or not they systematic inquiry into the 
means and methods used for replies the term ** assays," speaking of labor assays, expense 
assays, etc., and maintaining (with good reason) that the expert efficiency engineer can make determinations of this 
sort as accurately, and compare them with standards as intelligently, as an assayer can 
separate and weigh the metal in an ore. To this province belong also such matters as 
total result are often made surprisingly and effectively man-
ceiving, handling, and issuing materials, routing and transporting these materials in process
of manufacture, the general arrangement of the plant, and the effect of this arrangement upon
economy of operation. To this province belongs, also, the reduction of these data and other 
data to graphic form, by which their influence and bearing upon 
ifest. It is wonderful how much new knowledge a man The great purpose and value, indeed, of 
these analytical may gain about even a business with which he thinks he is thoroughly 
familiar by plotting various sorts of data on charts where, say, the movement of materials 
back and forth, or the rise of costs under certain conditions, are translated immediately 
into visible lines instead of being put into the indirect and rather unimpressive form of 
long descriptions or tabular columns of figures. 

creative and synthetic phase, goes on from this point and functions of industrial engineering
is that they visualize the operations of the business and enable us to pick out the weak
spots and the bad spots so that we can apply the right remedies and apply them where they are needed. They make us apprehend the presence and the relative importance of elements which would otherwise
remain lost in the mass, undetected by our unaided senses. 

The second phase of industrial engineering the active, 
ufacture; the correction of inefficiencies, whether of power, effects improvements, devises
new methods and processes, introduces economies, develops new ideas. Instead of
merely telling us what we have been doing or what we are doing, it makes us do the same thing
more economically or shows us how to do a new thing that is better than the old. 
To this part of works management belongs, for example, the rearrangement of manufacturing 
plants, of departments, or of operations so as to simplify the process of man- 
requires that he shall have technical knowledge and scien- transmission, equipment or labor;
the invention and application of new policies in management which make the ideals
and purposes of the head operate more directly upon the conduct of the hands; the devising
of new wage systems by which, for example, stimulus of individual reward proportioned to 
output makes the individual employee more productive. 

The exercise of these functions, whether analytical or creative, by the industrial engineer 
or the efficiency engineer, 
It deals with materials, but not so much with their me
tific training, but in somewhat different form from the equipment of the mechanical engineer
and somewhat differently exercised.
Industrial engineering deals with machinery; but not so much with its design, construction,
or abstract economy, which are strictly mechanical considerations, as with selection, 
arrangement, installation, operation and maintenance, and the influence which each of these 
points or all of them together may exert upon the total cost of the product which 
that machinery turns out. 

in progress and visualizing the result so that the manager
chanical and physical constants, which are strictly technical considerations, as with their
proper selection, their standardization, their custody, transportation, and manipulation.
It deals very largely with methods ; but the methods with which it is particularly concerned
are methods of performing work; methods of securing high efliciency in the output of 
machinery and of men; methods of handling materials, and establishing the exact connection 
between each unit handled and the cost of handling; methods of keeping track of work 
their most effective work.
of the works may have a controlling view of everything that is going on; methods of recording
 times and costs so that the efficiency of the performance may be compared with known 
standards; methods of detecting causes of low efficiency or poor economy and applying the 
necessary remedies. 

It deals with management that is, with the executive and administrative direction of the 
whole dynamic organization, including machinery, equipment and men. 

It deals with men themselves and with the influences which stimulate their ambition, enlist 
their co-operation and insure 

chanical engineer, the electrical engineer, the mining en-
It deals with markets, with the economic principles or laws affecting them and the mode of
creating, enlarging, or controlling them. 

The most important elements of industrial engineering are summed up in this alliterative list
 machinery, materials, methods, management, men and markets. And these six elements are 
interpreted and construed by the aid of another factor whose name also begins with  Money. 
Money supplies the gauge and the limit by which the other 

factors are all measured and adjusted. This of course is true not alone of industrial 
engineering; the civil engineer, the mechanical engineer being retained to carry out some 
piece of 
gineer, each and all must normally be expected to make money for his employer or client. One 
of the simplest principles of the profession, but one which the mere technician sometimes 
finds it hardest to keep in mind, is that the primary purpose for which the engineer is 
usually engaged is to direct the employment of capital so that it may pay back 
dividends to its owners. And while this is generally true of all engineering employment, it 
is most particularly, con- 
tinuously and everlastingly true of works management. It is much easier to conceive of the 
civil engineer or the me- 
work in which scientific accuracy is demanded regardless of the $75 cost with some actual 
item of material, labor, or cost, than it is to conceive of a shop superintendent being 
directed or even permitted to manufacture a line of product regardless of cost. 

It is the ever-present duty of the industrial engineer, of the efficiency engineer, to study 
constantly, and to study constantly harder and harder, the question of equivalency between 
the dollars spent and the things secured. It is not sufficient, for example, for him to know 
that a machine sold for $100 costs $75 to make. This may be a very good 
profit and the machine itself may be an excellent one. There may be vouchers honestly 
connecting every cent of expense. Nevertheless, the industrial engineer must con- 
dustrial engineer is tt) determine with the utmost possible stantly look back of these
figures to see whether by some change of machinery, some modification of materials, some
alteration of methods, some higher skill in management, some stimulus to the men, he can
make the machine cost less than $75 for its manufacture, or can make it a better ma- 
chine for the same cost, or perhaps can do both. 

In short, the industrial engineer is under unending and unremitting pressure to secure a true
 proportion between what he spends and what he gets. And the proportion is never true so 
long as the smallest opportunity remains for getting more in return for what he spends, or 
for spending less in payment for what he gets. The function of the in- 
afterward, as they were under the older order. If you con-
wisdom and insight whether and where any disproportion between expenditure and return exists,
 to find the amount of the disproportion, the causes of such disproportion, and to 
apply effective remedies. 

The forces causing this pressure for the reduction of cost are principally two. The older 
and cruder is competition. The later and larger, which in itself carries the answer to 
competition, is the effort toward efficiency. 

Competition was not created by the manufacturing system. It existed from the foundation of 
the world. But it took on a new meaning and new activity when the things began to be made 
first and sold after (as they are under the manufacturing system) instead of being sold first
 and made 
he can only compare the thing which has been made with what
tract to buy something which is not yet in existence a bridge, a house, a suit of clothes, or
 what not the bargain is largely a matter of estimate, often, indeed, a matter of guess work,
 on both sides. You have to strike a mental balance between the several alternatives 
presented and compare in your mind net results of cost, design, quality, certainty and 
promptness of delivery, personality, credit, and perhaps many other things, some of them 
intangible, and some only to be proved by the outcome. The proposition that seems 
most attractive is closed; the competing ones are never carried out at all. The buyer never 
can tell with absolute certainty whether or not he got the best value for his money; 
the ability to reduce costs become fundamental. Competi-
he thinks the other things would have been if they had been made. The seller does not know
until everything is over whether or not he made a profit, or how much. But when you sell 
things already made, like lathes or high-speed engines or dynamos, off the sales-room floor, 
the prospective buyer can make the most absolute and intimate comparison between the things 
and their prices. He can compare Brown & Sharpe with Lodge & Shipley, Harrisburg with 
the Ball engine, Westlnghouse with Crocker- Wheeler. He can compare accurately design, 
quality, cost before a word or a dollar passes. The necessity for offering the best goods 
for the least money and yet making a fair profit becomes vital and insistent, and so the 
knowledge of actual costs and secured among producer, consumer, and employee. Effi- 

tion has therefore been in one way a tremendous force for economy in manufacturing. And yet, 
by a paradox, in another way competition has been one of the great sources of waste, by 
causing duplication of plant, of organization, of equipment, of sales effort, and of 
middle-men — none of which may have any better reason for existence than some- 
one's desire to share in tempting-looking profits, but all of which must be paid by the 
consumer — all of which become a burden on society at large. 

The new and ethically fine ideal, therefore, is efficiency the reduction of costs and the 
elimination of waste for the primary purpose of doing the thing as well as it can 
be done, and the distribution of the increased profits thus 
ciency is a concept as much finer than competition as crea- 
inefficient and develop the efficient, thus producing a nation
tion, conservation, is finer than warfare. It is a philosophy an interpretation of the relations of things that may be applied not only to industry but to all life. Let me quote a few sentences from Harrington
 Emerson's ** Efficiency as a Basis for Operation and Wages " : 

** If we could eliminate all the wastes due to evil, all men would be good; if we could 
eliminate all the wastes due to ignorance, all men would have the benefit of supreme wisdom; 
if wc could eliminate all the wastes due to laziness and misdirected efforts, all men would 
be reasonably and health- fully industrious. It is not impossible that through efficiency 
standards, with efficiency rewards and penalties, we could in the course of a few generations
 crowd off the sphere the of men good, wise and industrious, thus giving to God what 
is His, to Caesar what is his, and to the individual what is shall see particularly something
 that it is of the utmost im- 

his. The attainable standard becomes very high, the attainment itself becomes very high. . . 

" Efficiency is to be attained not by individual striving, but solely by establishing, from 
all the accumulated and available wisdom of the world, staff-knowledge standards 
for each act by carrying staff standards into effect through directing line organization, 
through rewards for individual excellence; persuading the individual to accept staff stand- 
ards, to accept line direction and control, and under this double guidance to do his own 
uttermost bpst." 

Efficiency, then, and in consequence industrial engineering, which is the prosecution of 
efficiency in manufacturing, involves much more than mere technical considerations or 
technical knowledge. If we consider the way in which the manufacturing system came into 
existence, we can quite easily and clearly discover its most important elements; wc 
practical achievement must always be interwoven with the*
portance for us to understand, and that is that it did not originate in technical advances
alone, and it has never depended upon technical advances alone, but it has been in- 
fluenced at least in equal and perhaps in larger proportion by economic or commercial 
conditions, and by another set of factors which are psychological that is, which have to 
do with the thoughts and purposes and emotions of men. 

The point is very important, because true and stable in- 
dustrial progress, whether for the individual, the manufac- 
turing plant or corporation, or the nation at large, depends
upon a wise co-ordination and balance between technical, 
commercial, and human considerations. It is frequently 
necessary in addressing a commercial audience to empha- 
size the importance of the technical element. Before a 
technical audience, on the other hand, emphasis must often 
be laid on the commercial and psychological factors that in 
had been perfected to a point of practical service.
technical factor. Every great industrial organization and every great step in industrial progress to-day includes all three elements, but they will perhaps appear more distinct if we look at the origin and source of the manufacturing sys- tem, out of which this new science of industry has sprung. The origin of the manufacturing system was clearly enough the introduction of a group of inventions that came in close sequence about the end of the eighteenth century and be- ginning of the nineteenth. These were the steam engine, mechanical spinning and weaving machinery, the steamboat, the locomotive, and the machine-tool. It is commonly as- sumed that the great cause of the entire movement was Watt's improvement of the steam engine — that the indus- trial era which began a little more than a century ago was, so to speak, waiting in suspense, in the hush of things un- born, ready to leap into being as soon as the prime mover
ways had something near the quality and quantity of en-
This view seems to be incomplete. The steam engine had been discovered, forgotten, and rediscovered, it would be difficult to say how often, from the time of Hero or earlier down to the time of Watt — forgotten and ignored because the world had no use for it ; the economic conditions were not ripe for it. If there had been the same demand for power to pump the mines in England, the same demand for machinery in the textile industries of England, the same need for better vehicles to transport commercial products by land and by sea, in the time of Papin or the Marquis of Worcester that there was in the time of Watt, I think it is quite conceivable that the inventions which made Watt fa- mous would have come a full century earlier, and his genius would have been exerted upon a later stage of the problem, as the genius of Willans and Corliss and Parsons and Curtis has been within the period of our own lives. I am strongly inclined to believe that the world has al-
success depends upon commercial opportunity. There must
gineering talent it has been able to use. When civilization was dependent chiefly upon roads, aqueducts, bridges and buildings, it got them. We have never done some of these things better, technically speaking, than the Assyrians, or the Romans, or the architects of the great cathedrals of the middle ages; some, indeed, we perhaps never shall do again as well. Newcomen, Watt, Arkwright, Stephenson, Besse- mer, applied genius to a new sort of opportunity, rather than embodied in themselves a new order of genius. They may indeed have been greater than other workers who preceded them, but the more important element in their success is that the world was at last ready and waiting as it never had been before for the peculiar product of genius they had to offer. This readiness that opened the door to their success was due to economic or commercial conditions, not merely to the technical invention. In its larger relations, then, technical be a potential market. Bessemer steel could not have found
mercial factor. There must be a potential market; but it
any welcome in the Stone Age. The typewriter would not have succeeded in the dark ages when no one but a few clerics could read and write. Savages who traded cocoa- nuts for beads and brass wire could afford no encouragement to the manufacturer of the cash register or the adding ma- chine. It was not because of thermodynamic inefficiency that Hero's engine failed of adoption. On the other hand, when the world was ready for steam power it accepted very gladly to begin with a very crude machine, and technical im- provement went step by step with larger practical utilization, sometimes leading and sometimes following. There must, then, be a potential market or application, or advance in the applied sciences will be limited. This is an axiom to be placed alongside of another — that there must be scientific study and research, or industries based upon the applica- tions of science will stagnate and remain at a low stage of efficiency. The second factor in industrial progress, then, is the com-
shown us that in many cases there is no such thing as a fixed
does not follow from this that technical progress is wholly subordinate to economic conditions. The inventor or the engineer is not of necessity merely a follower of progress in commerce or industry. Many of the great* advances in ap- plied science, or in branches of industrial achievement per- haps too lowly to be called applied science, have been made by man who foresaw not only technical possibilities but commercial possibilities — who undertook not only to per- fect the invention but to show the world the advantage of using it. I think this was substantially the case with wire- less telegraphy, with the cash register and typewriter. No- body had demanded these things because nobody had thought of them, and the productive act in each instance included not only technical insight into the possibilities of doing the thing, but human insight into the fact that people would ap- preciate these things and use them if they could be furnished at or below a certain cost. Modern industrial methods have
cian. This would not have been because the extraordinary
demand beyond which supply can not be absorbed, but that demand is a function of cost of production. There may be no demand at all for an article costing a dollar, but an al- most unlimited demand for the same article if it can be sold at five cents. A large part of the work of the production engineer lies in the creation of methods by which the cost of production is decreased and the volume of production is thereby increased, with advantages to both the producer and the consumer. In all these cases you see that technical achievement, technical success, is closely
interlocked with industrial or economic conditions, and with the understanding and control of
industrial or economic influences and forces. 

The third factor in industrial progress is the psychological factor — the element 
contributed by the mental attitude, emotions, or passions of men. I might suggest its 
possible importance by reminding you that there were centuries in which the inventor of the 
steam engine, far from being rewarded, would have been burned at the stake as a magi- 
ficient to energize an industrial movement. In the case of
character of the achievement was unrecognized, but because its nature was misinterpreted.
That particular form of expressing intellectual dissent has gone out of date. We are 
much more civilized now, and nineteenth- or twentieth-century inventors who are far ahead of 
their times are no longer burned; they are merely allowed to starve to death; while 
those who are timely, but not commercially shrewd, are usually swindled by some promoter, who
 in turn is frozen out by a trust. In any case, you see, the simple technician gets 
the worst of it industrially, not because his physical science is weak, but because his 
commercial and mental shrewdness is not correspondingly developed. 

Taking a larger view of it, we shall see that almost every important advance in engineering 
progress is made only after a period of pause, an interval following proof of the tech- 
nical achievement, following even demonstration of its commercial economy. We might call this
 the psychological lag the time necessary for the growth of human faith suf- 
the electric railway, or the motor vehicle, for example, this this psychological or human 
element is of immense, even 

lag was measured by years. Bessemer could not convince 
the ironmasters of England, and had to build his own plant. 
Westinghouse, having gained after much difficulty an audi- 
ence with the greatest railroad manager of that day, was 
told that this practical railroad man had no time to waste 
on a damn fool who expected to stop railroad trains with 
wind. The matter deserves emphasis because it is almost 
certain to enter into the individual experience of every man. 
You will have to make someone believe you, and believe in 
you, before you can get anywhere or do anything. When a 
technical man has a proposition to put before an individual, 
or a group of individuals, or society at large, he is very 
likely to think that scientific demonstration of its technical 
soundness ought to be convincing. You will find, however, 
that men at large will substantially ignore scientific proof, 
and that you must add to it, second, proof of the commer- 
cial or economic argument, and third, that psychological 
force which convinces not the reason, but the emotions. In 
all industrial engineering, which involves dealing with men, 
trial activities go badly wrong in their philosophy, and get
controlling importance. The principles of the science are absolute, scientific, eternal. But methods, when we are dealing with men, must recognize the personal equation (which is psychologic) or failure will follow. The differ- ences between the several philosophies of works management as expressed in the wage systems which we are going to con- sider later are psychological. Success in handling men and women, which is one of the most important parts of the work of the industrial engineer, is founded on knowledge of human nature, which is psychology. The great industrial movement, then, with which we have to do is triune in its nature, the
three chief elements being the technical or scientific, the economic or commercial, and 
the psychological or human. They seldom respond at equal rates to the impetus of advance. 
Sometimes the technician pushes so far ahead that the world loses touch with what he 
is doing and his work lies long unused until civilization catches up; sometimes the 
commercial tendency is unduly aggressive, and discourages or impedes real scientific achieve- 
ment; very often the men most concerned with the indus- 
disastrously false notions as to what makes for real progress and real welfare. More
difficulties, perhaps, come from this cause than from any other. 

To the technical man, it is an ever-present duty to keep in view absolute ideals, to seek 
every chance for their advancement, and to mould conditions and men so as to obtain con- 
stantly nearer approach to these ideals; but in doing this he must never forget to attach 
full weight to economic conditions, and he must never allow himself to ignore human nature. 


1 A systematic presentation of the field of industrial engineering from 
an entirely different point of view and by a very different method will 
be found in " Factory Organization and Administration," by Prof. Hugo 
Diemer; McGraw-Hill Book Co. 

Updated 15 July 2016,  11 January 2012

July Third Week - Industrial Engineering Knowledge Revision

July Third Week - Industrial Engineering Knowledge Revision

15 July to 19 July

Basic Principles of Industrial Engineering

Industrial engineering Principles, Methods Tools and Techniques

16 July

Industrial Engineering - The Concept - Developed by Going in 1911

Product Design Efficiency Engineering - Component of Industrial Engineering

17 July

Value Engineering - Introduction

Value Analysis and Engineering Techniques

18 July

Value Analysis: Approach and Job Plan

Knowledge Required for Value Engineering Application and Practice

19 July

Value Analysis and Engineering - Examples by L.D. Miles

Functional Analysis Systems Technique (FAST) - Value Engineering Method

July Fourth Week

Value Engineering - Examples, Cases and Benefits

Value Engineering in Construction - Structures, Roads, Bridges

Value Engineering at the Design and Development Stage - Tata Nano Example

Low Cost Materials and Processes - Information Board  - Database for Industrial Engineering and Value Engineering

Value Engineering - Bulletin - Information Board

Lean Product Development - Low Waste Product Development - Efficient Product Development

Design for Manufacturing

Design for Assembly

Updated 14 July 2016, 9 July 2016

Saturday, July 9, 2016

Industrial Engineering - Month Focus Methods and Topics

January  - Material Productivity

February - Productive Maintenance, Equipment Productivity

March - Industrial Engineering Economics

April - Industrial Engineering Statistics

May - Industrial Engineering Measurement

June - Productivity Management

July  - Scientific Management, Principles of Industrial Engineering, Product Design Efficiency

August -  Machine Work, Process Improvement

September - Human Effort Engineering

October -  Optimization

November - Management Processes Improvement, Materials Handling, Layout, Tooling

December - Energy

Thursday, July 7, 2016

July Second Week - Industrial Engineering Knowledge Revision

The principles explain the question what is industrial engineering (IE)?

Basic Principles of Industrial Engineering

1. Develop science for each element of a man - machine system's work related to efficiency and productivity.
2. Engineer methods, processes and operations to use the laws related to the work of machines, man, materials and other resources.
3. Select or assign workmen based on predefined aptitudes for various types of man - machine work.
4. Train workmen, supervisors, and engineers in the new methods, install various modifications related to the machines that include productivity improvement devices and ensure that the expected productivity is realized.
5. Incorporate suggestions of operators, supervisors and engineers in the methods redesign on a continuous basis.
6. Plan and manage productivity at system level.
(The principles were developed on 4 June 2016 (During Birthday break of 2016 - 30 June 2016 to 7 July 2016).

The principles were developed by Narayana Rao K.V.S.S. based on principles of scientific management by F.W. Taylor) More details: Basic Principles of Industrial Engineering

Second Week of July

8 July

11. Illustrations of Success of Scientific Management - Bicycle Balls Inspection Example

12. Scientific Management in Machine Shop

9 July

13. Development of Science in Mechanic Arts

14. Study of Motives of Men

10 July

15. Scientific management in its essence

16. Role of Top Management in Implementing Scientific Management

11 July

17. Scientific Management Summarized

18. Harrington Emerson - A Pioneer Industrial Engineer

12 July

19. The Twelve Principles of Efficiency - Part 1

20. The Twelve Principles of Efficiency - Part 2

Wednesday, July 6, 2016

Scientific Management Summarized - F.W. Taylor

Continued from

It is no single element, but rather this whole combination, that constitutes scientific management, which may be summarized as:

  Science, not rule of thumb.
  Harmony, not discord.
  Cooperation, not individualism.
  Maximum output, in place of restricted output.
  The development of each man to his greatest efficiency and prosperity.

The writer wishes to again state that: "The time is fast going by for the great personal or individual achievement of any one man standing alone and without the help of those around him. And the time is coming when all great things will be done by that type of cooperation in which each man performs the function for which he is best suited, each man preserves his own individuality and is supreme in his particular function, and each man at the same time loses none of his originality and proper personal initiative, and yet is controlled by and must work harmoniously with many other men."

The examples given above of the increase in output realized under the new management fairly represent the gain which is possible. They do not represent extraordinary or exceptional cases, and have been selected from among thousands of similar illustrations which might have been given.

Let us now examine the good which would follow the general adoption of these principles.

The larger profit would come to the whole world in general.

The greatest material gain which those of the present generation have over past generations has come from the fact that the average man in this generation, with a given expenditure of effort, is producing two times, three times, even four times as much of those things that are of use to man as it was possible for the average man in the past to produce. This increase in the productivity of human effort is, of course, due to many causes, besides the increase in the personal dexterity of the man. It is due to the discovery of steam and electricity, to the introduction of machinery, to inventions, great and small, and to the progress in science and education. But from whatever cause this increase in productivity has come, it is to the greater productivity of each individual that the whole country owes its greater prosperity.

Those who are afraid that a large increase in the productivity of each workman will throw other men out of work, should realize that the one element more than any other which differentiates civilized from uncivilized countries--prosperous from poverty--stricken peoples--is that the average man in the one is five or six times as productive as the other. It is also a fact that the chief cause for the large percentage of the unemployed in England (perhaps the most virile nation in the world), is that the workmen of England, more than in any other civilized country, are deliberately restricting their output because they are possessed by the fallacy that it is against their best interest for each man to work as hard as he can.

The general adoption of scientific management would readily in the future double the productivity of the average man engaged in industrial work. Think of what this means to the whole country. Think of the increase, both in the necessities and luxuries of life, which becomes available for the whole country, of the possibility of shortening the hours of labor when this is desirable, and of the increased
opportunities for education, culture, and recreation which this implies. But while the whole world would profit by this increase in production, the manufacturer and the workman will be far more interested in the especial local gain that comes to them and to the people immediately around them. Scientific management will mean, for the employers and the workmen who adopt it--and particularly for those who adopt it first--the elimination of almost all causes for dispute and disagreement between them. What constitutes a fair day's work will be a question for scientific investigation, instead of a subject to be bargained and haggled over. Soldiering will cease because the object for soldiering will no longer exist. The great increase in wages which accompanies this type of management will largely eliminate the wage question as a source of dispute. But more than all other causes, the close, intimate cooperation, the constant personal contact between the two sides, will tend to diminish friction and discontent. It is difficult for two people whose interests are the same, and who work side by side in accomplishing the same object, all day long, to keep up a quarrel.

The low cost of production which accompanies a doubling of the output will enable the companies who adopt this management, particularly those who adopt it first, to compete far better than they were able to before, and this will so enlarge their markets that their men will have almost constant work even in dull times, and that they will earn larger profits at all times.

This means increase in prosperity and diminution in poverty, not only for their men but for the whole community immediately around them.

As one of the elements incident to this great gain in output, each workman has been systematically trained to his highest state of efficiency, and has been taught to do a higher class of work than he was
able to do under the old types of management; and at the same time he has acquired a friendly mental attitude toward his employers and his whole working conditions, whereas before a considerable part of his time was spent in criticism, suspicious watchfulness, and sometimes in open warfare. This direct gain to all of those working under the system is without doubt the most important single element in the whole problem.

Is not the realization of results such as these of far more importance than the solution of most of the problems which are now agitating both the English and American peoples? And is it not the duty of those who are acquainted with these facts, to exert themselves to make the whole community realize this importance?

F.W. Taylor, Scientific Management

End of Scientific Management by F.W. Taylor

All Chapters
F.W. Taylor Scientific Management - With Appropriate Sections

Updated 9 July 2016, 4 August 2013

Role of Top Management in Implementing Scientific Management - F.W. Taylor

Continued from
Scientific Management in Its Essence - F.W. Taylor

Directors of the Company Have to Understand the Fundamental Principles of Scientific Management

The writer would again insist that in no case should the managers of an establishment, the work of which is elaborate, undertake to change from the old to the new type unless the directors of the company fully understand and believe in the fundamental principles of scientific management and unless they appreciate all that is involved in making this change, particularly the time required, and unless they want scientific management greatly.

Distribution of Productivity Gain between Shareholders, Employees and Consumers

Doubtless some of those who are especially interested in working men will complain because under scientific management the workman, when he is shown how to do twice as much work as he formerly did, is not paid twice his former wages, while others who are more interested in the dividends than the workmen will complain that under this system the men receive much higher wages than they did before.

It does seem grossly unjust when the bare statement is made that the competent pig-iron handler, for instance, who has been so trained that he piles 3 6/10 times as much iron as the incompetent man formerly did, should receive an increase of only 60 per cent in wages.

It is not fair, however, to form any final judgment until all of the elements in the case have been considered. At the first glance we see only two parties to the transaction, the workmen and their employers. We overlook the third great party, the whole people,--the consumers, who buy the product of the first two and who ultimately pay both the wages of the workmen and the profits of the employers.

The rights of the people are therefore greater than those of either employer or employee. And this third great party should be given its proper share of any gain. In fact, a glance at industrial history shows that in the end the whole people receive the greater part of the benefit coming from industrial improvements. In the past hundred years, for example, the greatest factor tending toward increasing the output, and thereby the prosperity of the civilized world, has been the introduction of machinery to replace hand labor. And without doubt the greatest gain through this change has come to the whole people--the consumer.

Through short periods, especially in the case of patented apparatus, the dividends of those who have introduced new machinery have been greatly increased, and in many cases, though unfortunately not universally, the employees have obtained materially higher wages, shorter hours, and better working conditions. But in the end the major part of the gain has gone to the whole people.

And this result will follow the introduction of scientific management just as surely as it has the introduction of machinery.

To return to the case of the pig-iron handler. We must assume, then, that the larger part of the gain which has come from his great increase in output will in the end go to the people in the form of cheaper pig-iron. And before deciding upon how the balance is to be divided between the workmen and the employer, as to what is just and fair compensation for the man who does the piling and what should be left for the company as profit, we must look at the matter from all sides.

First. As we have before stated, the pig-iron handler is not an extraordinary man difficult to find, he is merely a man more or less of the type of the ox, heavy both mentally and physically.

Second. The work which this man does tires him no more than any healthy normal laborer is tired by a proper day's work. (If this man is overtired by his work, then the task has been wrongly set and this is as far as possible from the object of scientific management.)

Third. It was not due to this man's initiative or originality that he did his big day's work, but to the knowledge of the science of pig-iron handling developed and taught him by some one else.

Fourth. It is just and fair that men of the same general grade (when their all-round capacities are considered) should be paid about the same wages when they are all working to the best of their abilities. (It would be grossly unjust to other laborers, for instance, to pay this man 3 6/10 as high wages as other men of his general grade receive for an honest full day's work.)

Fifth. As is explained (page 74), the 60 per cent increase in pay which he received was not the result of an arbitrary judgment of a foreman or superintendent, it was the result of a long series of careful experiments impartially made to determine what compensation is really for the man's true and best interest when all things are considered.

Thus we see that the pig-iron handler with his 60 per cent increase in wages is not an object for pity but rather a subject for congratulation.

After all, however, facts are in many cases more convincing than opinions or theories, and it is a significant fact that those workmen who have come under this system during the past thirty years have invariably been satisfied with the increase in pay, which they have received, while their employers have been equally pleased with their increase in dividends.

The writer is one of those who believes that more and more will the third party (the whole people), as it becomes acquainted with the true facts, insist that justice shall be done to all three parties. It will
demand the largest efficiency from both employers and employees. It will no longer tolerate the type of employer who has his eye on dividends alone, who refuses to do his full share of the work and who merely cracks his whip over the heads of his workmen and attempts to drive them into harder work for low pay. No more will it tolerate tyranny on the part of labor which demands one increase after another in pay and shorter hours while at the same time it becomes less instead of more efficient.

And the means which the writer firmly believes will be adopted to bring about, first, efficiency both in employer and employs and then an equitable division of the profits of their joint efforts will be scientific management, which has for its sole aim the attainment of justice for all three parties through impartial scientific investigation of all the elements of the problem. For a time both sides will rebel against this advance. The workers will resent any interference with their old rule-of-thumb methods, and the management will resent being asked to take on new duties and burdens; but in the end the people through enlightened public opinion will force the new order of things upon both employer and employee.

It will doubtless be claimed that in all that has been said no new fact has been brought to light that was not known to some one in the past. Very likely this is true. Scientific management does not necessarily involve any great invention, nor the discovery of new or startling facts. It does, however, involve a certain combination of elements which have not existed in the past, namely, old knowledge so collected, analyzed, grouped, and classified into laws and rules that it constitutes a science; accompanied by a complete change in the mental attitude of the working men as well as of those on the side of the management, toward each other, and toward their respective duties and responsibilities. Also, a new division of the duties between the two sides and intimate, friendly cooperation to an extent that is impossible under the philosophy of the old management. And even all of this in many cases could not exist without the help of mechanisms which have been gradually developed.

F.W. Taylor, Scientific Management

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Updated  9 July 2016, 15 August 2015, 4 August 2013