Lecturas. Ingeniera Industrial.

Seccin N 04
Prof. Mohammed Jos
Industrial engineering
Industrial engineering (now referred to as "Integrated Systems Engineering") is a
branch of engineering dealing with the optimization of complex processes or systems. It
is concerned with the development, improvement, implementation and evaluation of
integrated systems of people, money, knowledge, information, equipment, energy,
materials, analysis and synthesis, as well as the mathematical, physical and social
sciences together with the principles and methods of engineering design to specify,
predict, and evaluate the results to be obtained from such systems or processes. Its
underlying concepts overlap considerably with certain business-oriented disciplines
such as Operations Management, but the engineering side tends to emphasize extensive
mathematical proficiency and usage of quantitative methods.
Depending on the sub-speciality(ies) involved, industrial engineering may also be
known as operations management, management science, operations research, systems
engineering, or manufacturing engineering, usually depending on the viewpoint or
motives of the user. Recruiters or educational establishments use the names to
differentiate themselves from others. In health care, industrial engineers are more
commonly known as health management engineers or health systems engineers.
While the term originally applied to manufacturing, nowadays the term "industrial" in
industrial engineering can be somewhat misleading (some engineering universities and
educational agencies around the world have changed the term industrial to the broader
term production, leading to the typical extensions noted above). It has grown to
encompass any methodical or quantitative approach to optimizing how a process,
system, or organization operates. In fact, the primary U.S. professional organization for
Industrial Engineers, the Institute of Industrial Engineers (IIE) has been considering
changing its name to something broader (such as the Institute of Industrial & Systems
Engineers), although the latest vote among membership deemed this unnecessary for the
time being. The various topics of concern to industrial engineers include management
science, financial engineering, engineering management, supply chain management,
process engineering, operations research, systems engineering, ergonomics, cost and
value engineering, quality engineering, facilities planning, and the engineering design
process. Traditionally, a major aspect of industrial engineering was planning the layouts
of factories and designing assembly lines and other manufacturing paradigms. And now,
in so-called lean manufacturing systems, industrial engineers work to eliminate wastes
of time, money, materials, energy, and other resources.
Examples of where industrial engineering might be used include designing an assembly
workstation, strategizing for various operational logistics, consulting as an efficiency
expert, developing a new financial algorithm or loan system for a bank, streamlining
operation and emergency room location or usage in a hospital, planning complex
distribution schemes for materials or products (referred to as Supply Chain
Management), and shortening lines (or queues) at a bank, hospital, or a theme park.
Industrial engineers typically use computer simulation (especially discrete event
simulation), along with extensive mathematical tools and modeling and computational
methods for system analysis, evaluation, and optimization.

Industrial Engineer. A Day in the life of a Industrial Engineer
Industrial engineers analyze and evaluate methods of production and point out ways to
improve them. They decide how a company should allocate its limited tangible
resources (equipment and labor) within the framework of existing physical constraints
(physical plant). Each company that hires an industrial engineer, either as a consultant
or as an internal manager, has its own specific limitations. An industrial engineer must
quickly become an expert not only in the manufacturing and production processes of the
industry, but also in the specific culture, problems, and challenges that the company
faces. This may mean face-to-face meetings with executives, extensive stays on
manufacturing floors, and review of historical production data. Industrial engineers
receive information from others about what goes on in the day-to-day work
environment, but they must also make their own observations of these activities. Many
employees are uncomfortable being watched by industrial engineers, and industrial
engineers often walk a thin line between being an analyst and being a detective. An
industrial engineers most difficult task is communicating his observations and
suggestions to company executives, many of whom are emotionally invested in their
traditional way of doing business. Industrial engineers must be tactful in what they say
and in how they say it. In addition to tact, being a successful industrial engineer requires
charm and the willingness to stand by ones recommendations even in the face of
unresponsive management. The large majority of industrial engineersaround 70
percentworks at manufacturing companies, and many have specific areas of
specialization, such as assembly, raw-product processing, or administrative (paperwork)
practices. Most industrial engineers have good working conditions, intellectually
challenging work, and a high level of satisfaction. Hours can be long, but this tends to
be outweighed by the satisfaction derived from the education that each different project
brings.
Paying Your Dues
To become an industrial engineer, you must have a bachelors degree in industrial
engineering. Recommended coursework includes statistics, computer skills,
ergonomics, management science, quality control, sociology, psychology,
organizational behavior, economics, finance, labor relations, and mathematics. Those
who plan to specialize in manufacturing areas find it useful to study shipping, billing,
and automated systems, along with computer science. Graduate programs in industrial
engineering are primarily for those who wish to enter academia. Employers consider
production or manufacturing experience extremely useful; they also favorably view
administrative experience in large-paperwork industries (such as insurance, health care,
or brokerage). Many find joining a professional organization supportive of their careers
(some join while still in school) because it helps them to keep them abreast of important
topics and trends in industrial engineering.
Associated Careers
Most industrial engineers are consultants in the manufacturing and administrative
industries. The expertise they gain as consultants or internal managers leads many of
them to accept management positions in these industries. Since the core of an industrial
engineers job is the proper allocation of resources, industrial engineers are valuable to
any organization with limited resources and large
responsibilities.
What is industrial engineering?
The field of industrial engineering has had many
definitions given to it. Most of the definitions include
all of the same elements stated in slightly different
ways. For example the Accreditation Board for
Engineering and Technology (ABET) defines
industrial engineering as
the profession in which a knowledge of the mathematical and natural sciences gained
by study, experience and practice is applied with judgment to develop ways to utilize
economically, the materials and forces of nature for the benefit of mankind. [1]
The American Institute of Industrial Engineers (AIIE) defines industrial engineering as
concerned with the design, improvement and installation of integrated systems of
people, materials, equipment and energy. It draws upon specialized knowledge and skill
in the mathematical, physical and social sciences together with the principles and
methods of engineering analysis and design to specify predict and evaluate the results
to be obtained from such systems. [1]
Both definitions describe industrial engineering as a broad field concerned with
integrating all the different aspects in a service or production environment. Part of being
an industrial engineer is learning how to balance changes.
What are some of the topics the industrial engineer studies?
People
This area is what sets industrial engineering apart from the other engineering
disciplines. The IE undergoes several courses in psychology and social science to help
them understand some of the work place dynamics involved in managing people. It also
helps them develop effective methods of dealing with these problems. Other areas of
concern for the IE are how many people are required, is the job designed correctly for a
human operator (Ergonomics), is the operation safe, what level of pay should be offered
for the work, does the job require the employee to get more training, and is there good
communication between management and their employers.

Manpower Requirements
To understand the manpower requirement a great deal of time study and motion study
activity will need to occur. Depending on the companys policies for setting work
standards one of several methods will be chosen.
Performing a motion study. Every job can be broken down into its fundamental work
elements. The Gilbreth family found that there are seventeen of these motions. The time
to complete each motion does not change. This is the important part. Jobs can be studied
visually or through the assistance of a camera for micro-motion studies.
Whether the study is visual or micro the IE will be applying the same rules of motion
economy to the person, environment and tools. The rules that are applied to the person,
intend to help the person move in a more balanced and synchronized manner. For
example, both hands should begin and end moving at around the same time. Foot pedal
devices should only be used when the operator can sit down.
The environment for the workers also needs to be set up to promote efficiency of work.
Tools should be placed in fixed locations to eliminate the search and selection therbligs.
Work surfaces and chairs should be adjusted to the correct working heights to eliminate
stress. Whenever possible, gravity feeders should be used to deliver parts to the correct
location. The worker's tools should be designed to eliminate multiple cuts. Adjustment
handles should be designed to maximize the operators mechanical advantage.
The process above is a continuous process. To stay competitive companies must
continue to increase the production capacity of their facilities while reducing their cost.
The IE will be expected to come up with additional improvements each year.
Performing a time study. Without a standard the company will find it hard to estimate
lead-time on their products. Times vary greatly when the employee does not know what
the expectation of company is. In order to correct this problem the IE will develop a fair
standard expectation for each operation. It has been estimated that 12% of a company's
total cost comes from direct labor. Another 43% of cost comes from the material cost.
The other 45% is spent in overhead. So the idea that the largest productivity gains can
be felt on the floor does not hold up in this light. Standards will be set for all parts of the
company not just the operations performed by the direct laborers. The IE will be
involved in analyzing and standardizing office work as well.
A good time study will take into account the unavoidable delays, fatigue, and to an
extent, outside interferences. Time for wasteful steps, such as searching for tools, will
not be included in the final standard. The expectation is that the workplace will be
designed to accommodate the work and will be free from this type of waste.
By setting a performance standard the company can look at the schedule for the next
year and determine if they have the proper amount of manpower. Prior to establishing
standards the company would have to go on their gut feelings about the current capacity
and need for additional help.
Ergonomics
The idea of mass production is to take a complex job and
break it down into simple and repeatable task that can be
performed with a high level of precision by the same set of
operators. If the workstation, task, and environment are not
designed properly the worker will be subjected to safety
and health risk. Companies sometimes choose to ignore
violations do to cost; however, with the current health care
prices, the company could easily find itself paying triple
the original cost. The IE should be aware of these issues
and work with management to resolve them as quickly as
possible.

Compensation
From the company's point of view they want to minimize the amount of money they
have to pay to the employees. This goal often goes against the other goal of
management and that is productivity. The productivity of the employee is directly
linked to the monetary rewards for the employee. There are several plans that have been
developed over time with the intent of balancing the cost with productivity.
An IE will help the company analyze their current situation and will often be
responsible for suggesting an appropriate plan. After a plan has been decided upon the
IE can be instrumental in its success. Some examples of plans are: piece rates and
standard labor hour plans, gain-sharing plans, employee stock ownership plans, and
profit-sharing plans.
Training
The operators must be appropriately trained. Standards are set using people that are
familiar with the job and people who have mastered the skills required to perform the
job. If other individuals are going to be expected to perform at this level then they will
need to be trained.
In a competitive market the employees become even more valuable, but if their training
is not kept up to par then the company's most valuable asset is losing value. As new
processes and methods are developed it is the responsibility of the IE to help make sure
the proper level of training is administered.
Machines
Capacity
Where the mechanical engineer and manufacturing engineer will be concerned with the
specific machine abilities and tooling requirements, the IE will be looking at the amount
of time it will take to set-up the machine, the cycle time of the machine, the number of
operators required, the foot-print size, the power requirements, as well as the ergonomic
design.
While the mechanical and manufacturing engineer will also be interested in the above
information they will not be making their selection based on these criteria. However, the
IE needs to integrate the equipment in a predefined production environment. If the
machine is too large it may not fit into the area allocated for it. If the machine runs too
fast then the company is buying excess capacity that may not be able to be used. If the
machine runs to slow then the company is injecting a bottleneck into the system. The
bottleneck will regulate the output of that part of the system. These are the types of
considerations that the IE goes through during the selection of a machine.
Mobility
The size of the machine and the energy requirements are very important if the
equipment is going into a cellular environment. If the machine requires a separate
foundation then it becomes a monument in the plant and the flow of parts must be
compensated. Unless it is unavoidable, smaller less expensive equipment should be
purchased, even if minor enhancements are required. This is usually a better practice
then buying a more expensive machine and only using 20-40% of its functionality.
This will also help the company to remain competitive by reducing the amount of
invested capital. A group of specialized people can be developed in house for the
purpose of machine modification. By buying less expensive machines and then
modifying them the employer will have specialized equipment not available to their
competitors and this will help give them an added edge.
Set-Up Times
Set up time is the amount of time it takes to begin producing different parts on a
machine. For example, this time would be calculated from the last good part, type A, to
the first good part, type B. It is extremely important that this time be minimized so the
economic lot size can be shrunk. If set-up times remain large the company will operate
with high levels of work in progress and finished goods tying up the companies
valuable capital. Companies that fail to reduce their set-up times have a tendency to
look sluggish in regards to their customers.
Cost
An IE will generally be responsible for coming up with a cost analysis on the equipment
purchase. There are a several ways of coming up with this. The IE or the upper levels of
management will decide upon the specific method.
Life Time
The IE will also take into account how long the machine is expected to last when
developing the cost analysis. A straight-line depreciation may be decided upon over the
machines life. The salvage value, or the value of the machine at the end of its useful
life, is also taken into account.

Efficiency
The traditional way of looking at efficiency was to keep the machine running at a 100%
whether the products can be used or not. The idea was that the cost of the machine could
be spread out over the amount of time it was kept running. Therefore the higher the
machines efficiency, time running / time available, the better the accounting numbers
looked in regards to machine cost. This tended to increase the work in progress as well
as build finished goods inventories, which is undesirable.
Maintenance
The amount of maintenance that the machine is going to require is a variable that must
be considered by the IE before the machine is put into the system. All machines are
going to require some amount of maintenance, but care should be taken when selecting
machines so maintenance time is minimized.
Another issue about maintenance is whether or not the staff on hand will need to be
retrained. The OEM may require that a third party perform the maintenance on the
machine, if so the cost of this service should be included in the overall cost analysis.
Material
The IE is concerned with the delivery and flow of material throughout the plant. It is
nice if the plant has been planned with material flow in mind, but often the plant has
evolved as the company has. This can lead to a poorly outfitted facility that could be
hindering higher levels of production.
Facilities Layout
Many IE are employed to evaluate the needs of a company and then design a facility
that can accommodate these needs. Planning starts with the geographical selection and
location. Research must be done into the local compliance codes. The planner will need
to determine if there will be adequate access to suppliers and the local transportation
industry.
Based on the head count in the facility the IE will need to ensure that there is enough
water, adequate restrooms, and cafeteria or local food service available. If the
employees will be driving cars to work then an appropriate parking lot will need to be
set up.
Beyond that the IE will also be responsible of laying out the equipment and material
storage locations for the plant. The key part of this analysis is how things will flow
through the plant. You dont want the parts to travel any further then they must.
Traveling is a form of waste that needs to be minimized.
Lot size
To allow the manufacturer to stay flexible the production lot sizes should be minimized.
This will only be economical after the reductions of machine set-ups have been
achieved. An IE can look at the lot size of a company as an indicator of flexibility of a
company.
Economic Order Quantity
This is one of the calculations that can be used to determine the quantity of material that
should be ordered to minimize the shipping and additional cost of raw material. This is
a one form of a linear equation, an example of using methods development by the
operations research scientist.
Inventory Levels
Since inventory is capital that cannot be converted until finished and purchased by a
consumer, it should be kept to a minimal. Inventories not only tie up capital but they
reduce the flexibility of the supplier. If the customer requests a change then the
inventory runs the risk of becoming obsolete. The cost of this outdated inventory will,
more than likely, have to be written off by the host company.
Quality
The quality of the material can affect all parts of the system. Poor quality material often
introduces excessive amounts of rework into each of the processes. If the company
accepts poor material then their product will possibly end up shoddy and may or may
not cause the company to lose business. A typical job for an IE would be to work with
the quality department to set up a Total Quality Management system TQM.
Where is the future for Industrial Engineers?
Since about 1970 industrial engineering curriculum has integrated the methods of
operation research scientists. With these analytical methods and the advancing
technologies for the computer, modeling complex production and service systems will
become more feasible. All the other fields of engineering have had the opportunity to
set up experiments to develop the science behind the physical phenomenon. The
industrial engineering field now has the same ability to talk analytically about systems.
In the future the IE will be using more of the OR techniques coupled with advanced PC
based modeling packages to analyze production and service problems. Companies will
expect the IE to develop a representative model of
their systems and give accurate predictions about
future performance. While modeling is used by many
of the larger companies it has failed to penetrate the
market as a viable and required tool.
With the advent of E-Business the companies will
need more advanced and accurate techniques of
predicting outcomes. These techniques will come from
computer simulation. The ability to run the business
24x7 will force the company to be more flexible in their approaches. These 24x7
systems will be database and technology driven. The modern IE will need to be aware
of and able to use the tools available in IT as well as the methods of the OR scientist to
be successful in this new age.