Wednesday, September 26, 2012

What is the Difference Between Supply Chain Management and Supply Chain Industrial Engineering

Supply chain management is planning the supply chain activity, planning organization of the supply chain consisting of equipment, people, suppliers and other resources, acquiring all the resources and directing them and controlling them.

Supply chain industrial engineering is the study of resource use in various supply chain activities with a view to increasing the efficiency or eliminating the waste wherever possible. While the supply chain is designed to serve the needs of the targeted customers, the resource use in the design is carefully investigated by the industrial engineering to identify and remove waste. Industrial engineering succeeded in reducing the cost of many processes designed in the first iteration by the managers up to 50% and hence it is a very important activity in systems design or systems engineering.

Famous example of industrial engineering, is Henry Ford's production system redesign, that reduced the price of the automobile by half.

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