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India - Industrial Engineering and Productivity Management - History
Collecting materials for developing detailed history of industrial engineering in India.
Please share information you want to be included in it.
As industrial engineers and productivity managers, you might have many achievements. Your department has contributed lot to your organization. Please share your contribution and your colleagues and department contribution.
The article was started for the memory of Shri Ratan Tata. (10.10.2024)
Ratan Tata's Industrial Engineering - Process Design, Improvement, Excellence and Perfection.
"Break down your company or department's work into sub-processes and ensure each one is perfected. Build processes and strong quality control systems. The final result will only be excellent if the elements feeding into it are perfect." - Uttar Pradesh social welfare minister Asim Arun, a former IPS officer.
Compare it with Diemer - Taylor Explanation of Industrial Engineering.
He (Industrial Engineer) analyzes each process into its ultimate, simple elements, and compares each of these simplest steps or processes with an ideal or perfect condition. He then makes all due allowances for rational and practical conditions and establishes an attainable commercial standard for every step. The next process is that of attaining continuously this standard, involving both quality and quantity, and the interlocking or assembling of all of these prime elements into a well-arranged, well-built, smooth-running machine (process).
Prof. Hugo Diemer - Taylor's Industrial Engineering
According to me, Mr. Ratan Tata exactly repeated what the pioneers of industrial engineering F.W. Taylor and Prof. Diemer said. Focus on each element in the sub-process (operation) of the process. Design it with scientific and engineering knowledge and improve it further with the new knowledge and experience gained in operating or using the process. Excellence and perfection follow.
(Article to be developed. Requesting Tata Groups IEs for their experiences)
Industrial Engineers and Consultants Connected with Tata Group. Can you share your experience with Shri Ratan Tata. I want to include in the article.
Ratan Tata: Moving the Tata Group Beyond India
Stanford Graduate School of Business
1,030,792 views 5 Mar 2013
Ratan Tata, former Chairman of the Tata Group, has been credited with turning Tata from a largely India-centric company into a global business, with approximately 65% of revenues coming from abroad, accomplished in part through acquisitions.
Tata was interviewed by Charles Atkins, a second year MBA student at Stanford Graduate School of Business, as part of the View From The Top speaker series.
Tata was Chairman of the Tata Group from 1991 until his retirement in December 2012.
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https://www.youtube.com/watch?v=9mySvo-EPT0
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It was on August 26, 1907 that Tata Iron and Steel Company (TISCO) was registered in India.
The steel production started on February 16, 1912.
Tata Steel played an important role in development of industrial engineering in India.
The first director of NITIE was from Tata Steel
1957
Founded in 1957, the Indian Institution of Industrial Engineering is a non-profit organization for the profession of Industrial Engineering in India consisting of members specialized in the areas of Industrial Engineering - Work Study, O & M., Value Engineering, Production Planning & Control, Materials Management, PERT/CPM, Operations Research, Computer Sciences, Financial Management, Statistical Quality Control etc. and other emerging disciplines. It has been espousing and contributing to Productivity, Quality movement and Cost Competitiveness and other emerging needs of Undertakings in the country during the last five decades.
To make continuous contribution to the productivity of all branches of Economic and Social activities of the Nation. (Current 2024)
MISSION
Enhancement of image of Industrial Engineering Profession. Assimilation, creation and dissemination of knowledge base in the field of productivity related sciences. Providing customer service, design and installation of integrated system of resource utilisation through IE precepts and practices. (Current 2024)
National Productivity Council of India (NPC), established in the year 1958, is an autonomous organization under Department for Promotion of Industry & Internal Trade, Ministry of Commerce and Industry, Government of India. Besides undertaking research in the area of productivity, NPC has been providing consultancy and training services in areas of Industrial Engineering, Agri-Business, Economic Services, Quality Management, Human Resources Management, Information Technology, Technology Management, Energy Management, Environmental Management etc., to the Government and Public & Private sector organizations. NPC is a constituent of the Tokyo-based Asian Productivity Organisation (APO), an Inter-Governmental Body of which the Government of India is a founding member.
Vision
NPC to be the knowledge leader in productivity to provide state of our services to the Indian economy to become globally competitive.
Mission
Contribute to the sustainable, inclusive socioeconomic development of the country by enhancing productivity.
Objectives
To promote innovation - led productivity in a sustained manner in all spheres of national economy through holistic and inclusive approach by addressing the triple
bottom line – Economic, Environmental and Social.
To propagate productivity consciousness and culture amongst Govt., Business and Society.
To demonstrate value addition through generation and application of advanced productivity tools and techniques for multiplier effect.
To act as a total solution provider for Industry, Services, and Agriculture sectors for augmenting productivity through Training, Consultancy and Research wherever
needed through alliances and partnerships
To act as a catalyst in institution building and developing platforms for collaborative networking to strengthen the productivity movement.
To act as a think tank by providing productivity related evidence based policy support and advice in while tracking the emerging trends.
To be an independent oversight entity for various national programs, schemes and interventions.
To recognize productivity champions through awards, affiliations, certifications, accreditations etc.
To enhance international outreach for sharing the gains of productivity on mutual basis.
To be repository of productivity and competitiveness data across all sectors at the state and national level.
To devise national productivity standards across all sectors and self assessment web based measurement tools for productivity diagnosis.
Productivity Week Celebration at Tata Steel Jamshedpur. Every year, Productivity week is celebrated with great enthusiasm in Tata Steel. I was invited to be a speaker and was given the responsibility of chairing the session on one day. I was very happy with the presentation made by the Union leader about productivity and lean management initiatives in Tata Steel.
Lean Management - Management for Value and Productivity Enhancement
Lean Management for Productivity Enhancement Presentation at Tata Steel.
The Role of Industrial Engineering to make Make in India Campaign Successful - Explained in detail by bringing out the total activity of industrial engineering by Narayana Rao, KVSS., Professor of NITIE, Mumbai, India on 3 May 2015 as Prof Uday Amonkar Memorial Lecture at Goa Engineering College as part of IIIE, Goa Chapter Foundation Day celebration. Professor Narayana Rao identified 8 main methods as constituting IE and gave the popular techniques under each of the method thus describing the complete industrial engineering scope. He identified the three application areas for IE in any organization as engineering activities, business process activities and management process activities. He stated the purpose of IE as cost reduction at enterprise level and termed it as Total Cost Industrial Engineering. The lecture was appreciated as a Landmark Presentation in Industrial Engineering by the audience.
2017
Principles of Industrial Engineering were presented by Prof. K.V.S.S. Narayana Rao, Professor, NITIE in IISE 2017 Annual Conference in Pittsburgh, USA.
What is Industrial Engineering? What are its principles? #Productivity #Profit #Income #CostReduction #SocietyProsperity #Lean #Comfort #Health #Safety
IISE IndustrialEngineering 2017 Conference Presentation - Video. Very Popular - 9785+ Views.
Tata Network Forums India - East organises a session on Role of HR in Cost Optimisation
PUBLISHED ON MAY 11, 2017
Around 55 participants from 22 Tata companies attended the session, which included presentations and an interactive panel discussion with HR experts from Tata companies
Tata Network Forums (TNF) India – East organised a session on the ‘Role of HR in Cost Optimisation’, which was attended by 55 participants from 22 Tata companies. The session, held on April 12, 2017 at the Golmuri Club in Jamshedpur, included various presentations and an interactive panel discussion with HR experts from companies including Tata Steel, Tata Motors, Tinplate Company of India, TRF, JUSCO, Tata Sponge, Tata Steel Processing and Distribution and Tata Management Training Centre.
Productivity Development – Measures. Achievements, Challenges and Policy Suggestions
Prof K.V.S.S. Narayana Rao
Professor, National Institute of Industrial Engineering (NITIE)
Mumbai
Introduction
Productivity is defined as output divided by input giving us the measure of output per unit of input when the input is specified as one homogeneous item such as acres of land used in agriculture for cultivating a crop, say rice. We can define the productivity of rice cultivation in Maharashtra State, by giving the total production of rice in a year, say 2015-16 as numerator and the acres in which rice was cultivated in 2015-16 as denominator. The figure obtained can be compared with the figure of 2016-17 to determine whether the productivity has increased or decreased in 2016-17 compared to 2016-17. We want productivity to increase, as increase in productivity means we will have more rice from the same land. The increase in production of rice can be used to increase average consumption of rice by people in the state. The increase in the production of rice can also be used to provide extra rice to people in the bottom percentiles in the state. Whenever, the society provides extra inputs to the bottom percentiles of the population we say “antyoday” is taking place. Providing extra inputs for consumption to the bottom percentiles of the society is an important social activity which is taken up by individuals, social groups, business organizations and government. Productivity provides resources for “antyoday” activity by not reducing the consumption of other people in the society. When there is increase in production of any good, it can be exported and other goods can be purchased. Thus, the society will have more goods for consumption and we can say the society has become richer as its consumption has increased. Therefore, productivity increase is a desired outcome and policies of government and business sector are oriented towards productivity development in the society. Individuals also have to understand the need for productivity increase and participate in the productivity development activities as employed persons and consumers. Reduction of waste of any good, conserves the effort involved in producing that good and releases resources for production of other goods and services. The effect is similar to increase in productivity. Reducing waste of any good in consumption or production activity has a beneficial effect on the productivity of the society.
Productivity Measurement
Productivity needs to be measure to plan and execute productivity improvement programmes. Productivity is measured for single input, combinations of inputs and all inputs. Productivity measurements for single inputs are termed partial factor productivity measures, and measurement for all the inputs is termed total factor productivity. For certain economic sectors, specified partial factor productivities become very popular and they are measured and reported in various reports of the government, research institutions and industry & business associations. In the case of agriculture, productivity per acre of land is a very popular productivity measure. In the case of dairy farming, milk output per milch animal is a popular productivity measure.
Productivity of Labour, Capital and Technology
Production can be increased by increasing the number of people involved in an activity, increasing the raw materials used and the machines. When technology changes, more production can come from the same amount labour, raw materials and machines. Hence, the contribution of labour, capital and technology to increased production are measured. Whenever, the technology is modified to give more productivity of the process, productivity of labour and capital increase. The improvement in technology is sometimes captured in the machines and then, machines become more productive and capital becomes more productive. Labour becomes more productive when it learns skills better or when education of the labour increases or when process labour uses to operate the equipment is changed. So productivity of labour is increased by making it more educated and skilled. Productivity of capital or that of machines is increased when better machines are developed and produced in large number by engineers and managers. Productive processes and methods are also developed by engineers, executives and managers which give rise to increase in technical efficiency or productivity. Scientists discover the cause and effect relationships existing in nature ( in physical nature , biological nature and social nature) and provide the basis for engineering and management.
Productivity Development - Macro Measures in India
After the World War II, USA took the leadership of democratic and capitalistic countries (some have followed mixed economy model) and provided development assistance through various international agencies. International Labor Organization (ILO) provided productivity improvement services and assistance to developing countries. ILO Productivity Missions visited India, set up offices in India and assisted Government, many public sector organizations, and private sector organizations. Bombay Productivity Council, National Productivity Council and National Institute for Training in Industrial Engineering in Mumbai were set by them in collaboration with Government to take up productivity development activities in the country. So Government has taken up the issue of productivity improvement in the economy. It also organized productivity years in 1962 and 1982. National Productivity Council organizes productivity week every year in the country with a specific theme. This year, the theme was “Reduce, Reuse and Recycle.” Industrial engineering is a management and engineering hybrid discipline with focus on productivity improvement in engineering organizations and activities. Industrial engineering can be explained industry expansion engineering. The discipline makes efforts to reduce the cost of new products that are accepted and desired by people. The cost reductions become price reductions and the market expands due to lower prices. Thus industrial engineering is industry expansion engineering. We can see its relevance in the current mobile industry as an example. If the cost of mobiles are low and the telecommunication charges are low, more people will use the services and the industry expands. Industrial engineering has the responsibility to lower the cost of mobile instruments, the cost telecommunication equipment and the cost of running the telecommunication system. Effective industrial engineering can achieve rapid cost reduction and help accelerated price reduction. But in practice, the productivity improvement activities are not taking place to the desired level in India and in sector after sector, reports say, productivity is very low in India. Government and policy research organizations in India have to assess the productivity situations in India and analyze the reasons for not achieving desired results at least in some sectors of the economy, which provides the spring board for transfer of expertise to more sectors.
Productivity Theory - Contribution from India
Industrial engineering is the subject of productivity improvement in engineering organizations. Industrial engineering is defined as system efficiency engineering and human effort engineering by Professor Narayana Rao (NITIE, Mumbai). This definition clearly brings out the role industrial engineering and makes a clear distinction between other branches of engineering and industrial engineering. Various branches of engineering develop new products and processes to manufacture or fabricate these products. Industrial engineering is concerned with redesign of these products and processes to reduce the resource consumption involved in making these products and operating the processes. The knowledge of industrial engineers is a big set of economic engineering alternatives and process to develop these alternatives which can be used effectively and efficiently to redesign products and processes and make them less costly or more productive. Industrial engineering was started in 1907 and thus the discipline completes 110 years. Professor Narayana Rao, proposed principles of industrial engineering along the lines of principles of management. The principles were presented in a conference in NITIE in the year 2016 and a presentation of a detailed list is scheduled for presentation in the Annual Conference of Institute of Industrial and Systems Engineers (IISE) in Pittsburgh, USA in the month of May 2017. The principles state that productivity science development, productivity engineering and productivity management are the main activities of industrial engineering. Further development of industrial engineering discipline in the country is going to facilitate first the productivity development in engineering industry and thereby provide the basis for productivity development in other industries like banking, insurance and hospitality. Industrial engineering already provides productivity improvement service to the hospital sector in a big way.
Productivity – Agriculture
The food grain production has increased more than fourfold - from 51 million tonnes in 1950-51 to 212 million tonnes during 2003-04. The grow rate is an annual average rate of more than 2.4 percent per annum. It further increased to 252.23 million tonnes in the year 2015-16. In Agriculture, productivity is measured as output per acre or output per hectare and it is low in India when compared to the best producing countries. Production increases per acre takes place due to increase in inputs like irrigation water, chemical fertilisers, pesticides, high yielding seeds etc. The productivity of each of these inputs is also important because continuous increase in these inputs is not possible and unless cost of unit output decreases, consumption of an item does not take place in any economy. Increase in agricultural productivity is important to improve the standard of living of farmers also. Productivity improvement as an activity has to be given to village panchayats for the lowest level and also ground level contribution to the effort. The village panchayat can collect the details of the land used for various crops and the output. So village level productivity of each crop can be measured and publicized by the panchayat. Every year, the panchayat can be assisted in developing productivity improvement plan by higher level authorities and agriculture department personnel. Panchayat level productivity improvement competition can be conducted and farmers who achieved higher productivity can be recognized at the panchayat level. They become role models and mentors for others in the village in the coming years. From these village level events, block level, district level, state level and national level events can be conducted. Research is taking place in the agricultural universities and agricultural research laboratories to increase productivity of agriculture. But more needs to be done. Agricultural productivity statistics are widely available for the country as a whole. But what is required is the information regarding productivity of the highest productive farms and the practices in those farms at lower levels. Once productive farms at lower levels are identified, field trips can be arranged for farmers to visit these high productivity farms for learning good practices of farming. This information can be publicized better so that more people come to know of it and in turn pass on the message to the farmers when they interact with them periodically during the visit to their native places. The word of mouth needs to be promoted as productivity improvement channel.
Productivity - Dairy farms
Agriculture and animal husbandry are important rural economic activities. In the dairy farms also, the milk productivity per animal is low in India. Measures similar to the ones suggested in the case of agriculture are relevant in animal husbandry.
Productivity – Mining, Manufacturing and Construction
The country has invested lot of resources in developing the engineering industries in mining, manufacturing and construction sectors. They are expected to provide employment to large number of people and thereby facilitate shifting of agricultural workers with low levels of income to better paid jobs. Also, employment in engineering organizations requires more skills and thus people become more skilled by learning various engineering trades like machining, fitting and maintenance of various manufactured products. Prime Minister Narendra Modi promoted the “Make in India” initiative to realize the objectives of rapid development of manufacturing sector to provide increase in GDP and employment. Productivity is very important in this sector, because this sector produces essential equipment that is used in service industry also. Services sector today provides larger chunk of GDP (higher than 50%) and it requires the output of engineering sector like transport equipment, buildings, medical equipment and medicines, books, computers, electrical distribution systems, telecommunication systems. In engineering sector, there are many large companies and the companies can invest and actively engage in productivity improvement. Industrial engineering is the productivity discipline in the engineering industry and the companies have to employ and involve industrial engineers in larger numbers to increase productivity. Japan in its reformation phase learned lot from the USA and Europe. They learned industrial engineering also, and leveraged it with further improvement unique to Japan. Japan developed low inventory manufacturing and in the process became a productivity leader. Shigeo Shingo, an industrial engineer solved the problem of reducing the die set-up times to minutes to facilitate low inventory manufacturing. He also created the Poka-Yoke (error detection mechanism) method to reduce defects, which also helped in low inventory manufacturing. India is adopting Japanese industrial engineering and productivity management practices now. Japanese professors and consultants are visiting India and advising Indian Government and companies. There is big scope for creative deployment of productivity management practices in India. Engineering colleges are being criticized by various company managements for producing graduates with poor knowledge and skills. This is ineffective and inefficient education process. College administrators, faculty and students have to become more involved to identify the deficiencies on the part of each of them and correct them. Poka-Yoke developed by Shigeo Shingo is to be used to identify where gaps are occurring and to remind everybody the need for correction. An error should be detected before it becomes a defect. The expected effort from the student to learn, the expected effort from the faculty member to facilitate learning and the effort of the college administration to provide library and laboratory facilities and the required mentoring to the students to develop them into educated and capable knowledge workers have to be better specified and managed by the education regulation mechanism in the country. The universities, UGC, AICTE and Ministry of Human Resource Development have to evolve the strategy. Better educated and skilled engineers will develop the engineering industry in the country better and in the area of productivity development also there will be good results.
Productivity in Services and Public Administration
Services now comprise more than 50% of the productivity. The figure should not surprise us, if we think marketing, selling and distribution cost is 50 per cent of production cost. If production of goods constitutes 50 per cent of the GDP, marketing and distribution sector will have 25% of the GDP. Public administration, education, health, transport are always important sectors. New sectors like banking, insurance, telecommunications, and software appeared in recent years and became important sector. Hence, services contributing more than half of the GDP, is not an unexpected phenomenon. But the goods producing sectors of agriculture, animal husbandry, manufacturing, construction and related sectors are the foundation for the economy. Productivity is important in services also. Management theory clearly says effectiveness and efficiency are the two important performance dimensions of management. Management theory has neglected the productivity dimension and MBA curriculums do not have adequate content in the productivity area. This is a shortcoming which needs to be noticed by management curriculum designers at the national level.
Productivity improvement in public administration is discussed in public administration texts and governments of various countries did appoint committees to examine productivity improvement. In India, administration reforms commissions have tried to improve productivity. The pay commissions for central government employees constituted every 10 years also comment on productivity. National Productivity Council needs to be strengthened with wings catering to agriculture, manufacturing, services and public administration. Alternatively productivity councils can be started for each sector and interlinked through a collaborative mechanism that helps in transmitting best practices across sectors and productivity specialists in each sector are developed through special educational institutions and provided opportunities to work in relevant sectors.
Conclusion
Productivity development is important for economic development of India. The need to develop productivity was recognized in the country and some institutions were set up. In the Parliament, discussions do take place regarding productivity in various industries. Still, the productivity achievements of India are not up to the desired levels when compared to the countries which made rapid strides in productivity. Productivity is a very important significant area needs to be recognized by the government and one can even suggest that to start with a minister can be put in charge of productivity improvement at the centre and state levels. Such an organization can provide the required visibility to the important dimension of productivity, essential for the nation’s rapid progress and growth. National Productivity Council can be under that ministry and other organizations can be set up as required to take care of various sectors and also organization structure to involve village panchayats and municipalities in spreading productivity awareness and activity at the lowest levels in a systematic manner.
DPIIT, India presents #UdyogManthan a webinar marathon for promotion of quality and productivity in Indian Industry starting on 4 January 2021. Every Day (except Sunday) for 42 days
Be a part of India's largest sectoral brainstorming exercise led by experts and Industry leaders!
Join the discussions. Understand the need of the industry. Give your suggestions. I request all industrial engineers to participate actively. Registration is FREE.
Register Now https://tinyurl.com/UMparticipation
According to me it is great initiative and all industrial engineers having interest in Indian industry have to give their suggestions to Government, industry associations and directly to various companies and firms.
Schedule - Industry Sector of the Day
Links are to articles that I am preparing on each sector. I request IEs to indicate important machines in the sectors you know so that machine effort industrial engineering ideas can be collected and compiled.
Toys (4th Jan)
Leather and Footwear (5th Jan)
Furniture (6th Jan)
Sporting Goods (7th Jan)
Chemicals and Petrochemicals (8th Jan) Make in India
Gym Equipment (9th Jan)
Food Processing (10th Jan) Make in India
Tourism and Hospitality Services (11th Jan) Make in India
Steel (15th Jan)
Drones (16th Jan)
Textiles and Apparels (18th Jan) Make in India
Audiovisual Services (19th Jan)
Gems and Jewellery (21st Jan)
Transport and Logistics Services 22nd Jan)
Capital Goods (23rd Jan)
Legal Services (25th Jan)
IT & ITeS (27th Jan) Make in India
Medical Value Travel (28th Jan)
Accounting and Finance Services (29th Jan)
Communication Services (30th Jan)
Construction & Related Engineering Services (1st Feb)
Environmental Services (2nd Feb)
Financial Services (3rd Feb)
Education Services (4th Feb)
Railways (5th Feb) Make in India
Automotive and Auto Components (6th Feb) Make in India
Pharma and Medical Devices (8th Feb) Make in India
Biotechnology (9th Feb)
ESDM (10th Feb) Make in India
Closed Circuit Cameras (11th Feb)
Shipping (12th Feb) Make in India
Construction (13th Feb)
New and Renewable Energy (15th Feb) Make in India
Air Conditioners (17th Feb)
Fisheries (18th Feb)
Aluminium (19th Feb)
Set Top Boxes (20th Feb)
EV Components & Integrated Circuits (22nd Feb)
Ethanol (23rd Feb)
Ceramics and Glass (24th Feb)
Robotics (25th Feb)
Televisions (26th Feb)
Aerospace and Defence (27th Feb) Make in India
Quality in Government Processes (1st and 2nd Mar)
Udyoug Manthan Discussions - Shri Piyush Goyal
Steel Industry - Growth, Productivity and Quality - 2021 Udyog Manthan
To make continuous contribution to the productivity of all branches of Economic and Social activities of the Nation. (Current 2024)
MISSION
Enhancement of image of Industrial Engineering Profession. Assimilation, creation and dissemination of knowledge base in the field of productivity related sciences. Providing customer service, design and installation of integrated system of resource utilisation through IE precepts and practices. (Current 2024)
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