The Basis for Organization
The organization of an industrial engineering department demands three steps .
1. The authority, responsibility and accountability of the department must be clearly mentioned.
2. The department must be integrated in the company plan of organization.
3. Every provision must be made so that the department can effectively perform its assigned tasks.
According to Tully Shelley , Principal at McKinsey & Company, the basic objectives of an IE department are (1) Establishment of methods for controlling production costs and (2) Development of programs for reducing those costs. Shelley discussed his organization plan based on these objectives.
Suggested Organization Patterns
Shelley proposed the following sections under a Chief Industrial Engineer 
Time Study Section
Time study of direct labor
Measurement of indirect labor
Measurement of machine interference
Wage Programs Section
Operations Research Section
Mathematical model building
If the company has variety of production facilities, the organization can be patterned along production divisions.
Heavy Machine Shop Section
Light Machine Shop Section
Assembly Department Section
General IE Techniques Section
Management Duties of IE Department Head
Establishing priorities for projects
Programming the work
Reviewing the progress of projects
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For Further Reading
F.M. Gilbreth, “Organizing for Industrial Engineering”, Proceedings of the Seventh Annual Conference, pp. 14-24, AIIE, 1956.
Raymond Villers, “Organizing for Better Utilization of Industrial Engineers”, Proceedings of the Tenth Annual Conference, pp. 59-63, AIIE, 1959.Original knol - Number 60