Effectiveness of Industrial Engineering

 

My answer to a comment - 

Effectiveness of Industrial Engineering.

Once again you are right. IEs have to drive business decisions through their project proposals. Based on various types of studies IEs have to present projects for approval. 

I blame IEs for their ineffectiveness today. I am advocating to them to start digital newsletters informing their department activities to all employees of the organization and seek cooperation of all in studies and projects. Reporting on the performance is the last of activities of IE. The first is creating projects that provide value to the company through productivity.

https://www.linkedin.com/posts/narayana-rao-kvss-b608007_industrialengineering-productivity-costreduction-activity-7445665927645437952-gPs8

Earlier Dialogue

Raghubir Singh

Injection Moulding Cost Reduction Consultant | Helping MSME Automotive & Plastic Manufacturers Recover 8–15% Hidden Plant Cost Leakages | Execution-Led Profit Improvement

Industrial Engineering is critical — no doubt.

But in many plants, the problem is not lack of IE.

It is lack of conversion into financial impact.

I’ve seen plants with:

• Strong IE practices

• Standard productivity reports

Still losing 12–18% capacity silently.

Because losses are not at process level —

they are at system flow level:

• Post-moulding bottlenecks

• WIP accumulation

• Late-stage rejections

• Line imbalance

That’s where productivity stops being engineering and becomes a business problem.

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Narayana Rao KVSS

Professor (Retired), NITIE - Now IIM Mumbai - Offering FREE IE ONLINE Course Notes

Raghubir Singh Yes. What you observe is right. But IEs are supposed to examine management issues also. It is engineering combined with management. I blame IE courses. I am writing about it since 2012 or so. I advocate a management module in IE programs that emphasizes management relevant to industrial engineering. Not the same content that is taught to MBA students. IEs must become competent to judge management practices with respect to productivity, cost reduction and profit increases through revenue growth. It includes human resource management policies also.

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Raghubir Singh

 

Injection Moulding Cost Reduction Consultant | Helping MSME Automotive & Plastic Manufacturers Recover 8–15% Hidden Plant Cost Leakages | Execution-Led Profit Improvement

Narayana Rao KVSS Industrial Engineering is strong in most plants.

Measurement is not the problem.

Conversion into financial impact is.

I’ve seen plants with:

• Strong IE practices

• Detailed productivity reports

• High OEE

Yet:

• Margins remain under pressure

• Output is unstable

• Decisions are reactive

Why?

Because IE insights stay at reporting level.

They rarely influence decision-stage economics.

• Losses are identified

• But production pressure overrides economics

• Efficiency improves

• But profitability does not

So the gap is not in Industrial Engineering.

It is in translating IE into management action.

IE must move from:

“measuring efficiency” → to → “driving business decisions”

Only then:

Cost reduces

Capacity unlocks

Profit improves

Otherwise, IE remains a support function — not a profit driver.

I thank Mr. Raghubir Singh for discussion and pointing out weaknesses in IE practice.