Tuesday, May 2, 2017

Optimization Uses Existing Technologies Only

Optimization uses existing technologies only but combines them into a combination that maximizes output or profit or minimizes cost. When a firm is not optimizing its resource combination to produce maximum output of specified products, it is leaving money on the table.
If any component is improved in its function through technology change, there can be further improvement in the output of the optimized system. Invention of new alloys etc. are technological developments.

Industrial Engineering involves search for alternative engineering solutions that provide productivity and thereby cost reduction. Industrial engineering is not the same as optimization. Industrial engineering when doing product engineering understand the present design of the product (if using value analysis and engineering method, they do functional analysis of the components of the product) and come out with low cost value alternatives. The low cost value alternative ideas are engineering into components and product that is less costly but provides all the functions that the earlier design is providing. In the redesign of components/product industrial engineering use optimization.  Similarly in process industrial engineering, industrial engineers  record the process in appropriate charts (earlier 5 method flow process chart is used, now seven waste identifying process chart can be used) and analyze each step to come out with alternative engineering ideas that are incorporated into the process. Once again optimization is used make sure the most optimal combination is used at every step of the new technology.

In Industrial engineering, engineering alternatives come first and then optimization.
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