Industrial Engineering and Operations

Research (IEOR)
ME-2024
 Industrial Engineering

• Industrial engineering is concerned with the design, improvement

and installation of integrated systems of people, material,
information, equipment and energy (AIIE).

• Industrial engineering is an engineering profession that is

concerned with the optimization of complex processes, systems,
or organizations by developing, improving and implementing
integrated systems of people, money, knowledge, information,
equipment, energy and materials (Wikipedia).
Objectives of Industrial Engineering

• To increase the productivity

• To eliminate the waste and non-value added activities

• To utilize the resources in Effective and Efficient manner

 Operations Research

• Operations research (OR) is a discipline that deals with the

application of advanced analytical methods to help make better
decisions.
 Production system

• Production system is a transformation system in which

products and services are created by working upon the inputs
like men, machines, materials, money etc.
Types of Production System
 Project Production System

• Product is Produced once

• The requirement of the resources is not same

• Many agencies are involved in the project

• Each project has different time estimate and cost estimate

• Example: Construction of bridge, buildings, airport, ships

 Job Shop Production System
• Produces either one or few units of a product strictly as
per the specification given by customer

• End product is different most of the time

• No standard method

• Machines are general purpose

• Machines are grouped according to their functional

capabilities
• Planning and control is difficult

• Highly skilled labor is required

• Follow make-to-order strategy

• Examples: Repair shop, tailoring, special machine tools

 Batch Production System

• A batch of identical articles are produced

• Examples:Drugs, bakery products, book printing

• Less flexible than Job shop

• General purpose machines are installed

• Skilled labor
 Mass production system
• Demand rate>rate of production

• Example: Automobile, TV units,

• Standard product and Standard method

• Special purpose equipment

• Semi-skilled labor is required for supervision only

• Rigid system

• Low work in process inventory

Continuous/Process production system
• 24*7 production

• Low skilled labour

• Very less work in process inventory

• Designed for one specific item only

• Rigid system
 Production Planning

• Production planning is the planning of production and

manufacturing modules in a company or industry.

• Production planning is dynamic in nature and always

remains in fluid state as plans may have to be changed
according to the changes in circumstances.
 Requirement for production planning
• It should be based on accurate data.

• It must be flexible

• It must satisfy a set of pre defined production objectives

(economy, quality etc)

• It must be simple and straight forward.

• It should have a reporting system, so that right information

reaches at right place and at right time.
 Functions of PPC
• Product planning: Production design and development,
functional and technological considerations, quality
considerations

• Forecast planning: Quantitiy forecast, demand pattern

forecast

• Process Planning: Technology selection, Process selection,

Machine selection, Process parameter selection, Operation
sequencing
• Equipment Planning: Types of equipments, Number of
equipments, Machine Capability analysis, Maintenance
planning

• Materials Planning: Material specification, material volume,

economic lot sizing, inventory planning, store planning

• Loading, Scheduling and Sequencing: Machine loading, job

sequencing, scheduling
PRODUCTION CONTROL
• Production control is a mechanism to monitor the
execution of plans. It has several important functions.

• Making sure that production operations are started at

planned places and planned times.

• Observing progress of the operations and recording it

properly.

• Analyzing the recorded data with the plans and

measuring the deviations.
• Taking immediate corrective actions to minimize the
negative impact of deviations from the plans.

• Feeding back the recorded information to the planning

section in order to improve future plans.
Different forms of production control

• Quality control

• Stock control

• Order processing/ chasing against schedules

• Cost control (budgeting)

• People and the labour productivity