INTRODUCTION TO SYSTEMS ENGINEERING�

CHAPTER 1

1

HISTORY AND PERSPECTIVE OF INDUSTRIAL ENGINEERING

• How did the two words “industrial” and “engineering” become combined to form the label “industrial engineering”?

​

• What is the relationship of industrial engineering to other engineering disciplines, to business administration, to the social sciences?

​

• To understand the role of industrial engineering (IE) in today’s complex world, it is helpful to learn the historical developments that were involved in the progress of IE.

​

• Principles of early engineering were first taught in military academies and were concerned primarily with road and bridge construction and defenses.

​

• Interrelated advancements in the fields of physics and mathematics laid the groundwork for practical applications of mechanical principles.

2

• The first significant application of electrical science was the development of the telegraph by Samuel Morse (1840).

​

• Thomas Edison’s invention of the carbon lamp (1880) led to widespread use of electricity for lighting purposes.

​

• The science of chemistry is concerned with understanding the nature of matter and learning how to produce desirable changes in materials.

​

• Fuels were developed needed for the new internal combustion engines.
• Lubricants were needed for mechanical devices.
• Protective coatings were needed for houses, metal products, ships, and so forth.

​

• Five major engineering disciplines (civil, chemical, electrical, industrial, and mechanical) were the branches of engineering that came out prior to the 1^st World War.

​

• Developments following 2^nd World War led to other engineering disciplines, such as nuclear engineering, electronic engineering, aeronautical engineering, and even computer engineering.

3

Industrial Revolution 1.0: The Birth of Mechanization (1760s to 1840s)

The First Industrial Revolution began in the 1760s and laid the foundation for modern industry. It was characterized by the transition from manual labor to machine-based manufacturing. Powered by water and steam, this era brought about significant changes in agriculture, textiles, and iron production.

• Key Innovations:

• The Steam Engine (1760s): Invented by James Watt, it became the driving force behind mechanized factories and transportation, from spinning mills to steam locomotives.

• Textile Manufacturing (1780s-1830s): The spinning jenny, water frame, and power loom revolutionized textile production, turning Britain into the “Workshop of the World.”

• Iron and Coal (1790s-1840s): New methods in iron production, such as the puddling process, increased efficiency, and output, while coal mining expanded to fuel the growing industry.

How It Set Up Industrial Revolution 2.0:

• The mass production capabilities and energy advancements of Industrial Revolution 1.0 created a need for new power sources, more efficient machinery, and innovative communication methods, paving the way for the second industrial phase.

Industrial Revolution 2.0: The Age of Electricity and Mass Production (1870s to 1914)

The Second Industrial Revolution, also known as the Technological Revolution, began in the 1870s and lasted until the start of World War I in 1914. This era was marked by the rise of electricity, steel, and mass production techniques that transformed manufacturing, transportation, and communication.

4

• Key Innovations:

• Electricity (1870s-1880s): Thomas Edison’s light bulb (1879) and Nikola Tesla’s alternating current (AC) system (1887) revolutionized energy distribution, powering factories, homes, and cities.

• Mass Production (1913): Henry Ford’s assembly line in the automotive industry symbolized a shift toward mass production, reducing costs and making goods more accessible.

• Telecommunications (1876): The invention of the telephone by Alexander Graham Bell and the expansion of telegraph networks enabled instant communication over long distances.

• Chemical and Steel Production (1880s-1900s): Advancements in chemical engineering and the Bessemer process for steel production fueled new industries, including railroads, construction, and manufacturing.

How It Set Up Industrial Revolution 3.0:

• The electrification of factories and homes, along with mass production techniques, created a need for more advanced communication, automation, and control systems, leading directly into the digital age.

Industrial Revolution 3.0: The Digital Revolution (1960s to 1990s)

The Third Industrial Revolution, often referred to as the Digital Revolution, began in the 1960s and continued through the 1990s. This era introduced computers, electronics, and digital technology, transforming how we produce, store, and share information.

• Key Innovations:

• Computers and Microprocessors (1960s-1970s): The development of the first programmable computers and the invention of the microprocessor in 1971 by Intel laid the foundation for modern computing.

5

• Automation and Robotics (1970s-1980s): Automated machinery and industrial robots began to replace human labor in repetitive tasks, improving efficiency and precision.

• Internet and Communication Technology (1980s-1990s): The rise of the internet (ARPANET in 1969, public web in 1991) and the World Wide Web revolutionized global communication, commerce, and data exchange.

• Software and Data Analytics (1980s-1990s): Software development and data analytics tools enabled companies to optimize operations, predict trends, and make data-driven decisions.

How It Set Up Industrial Revolution 4.0:

• The digital tools, computing power, and connectivity established in the Third Industrial Revolution set the stage for the integration of advanced technologies like artificial intelligence, IoT, and big data, leading us into Industry 4.0.

Industrial Revolution 4.0: The Era of Digitalization and Smart Technologies (2000s to Present)

The Fourth Industrial Revolution, or Industry 4.0, began in the early 2000s and is characterized by the fusion of digital, biological, and physical technologies. This era brings together advancements in artificial intelligence (AI), the Internet of Things (IoT), big data, robotics, and blockchain, creating smart factories and systems that communicate and make decisions autonomously.

• Key Innovations:

• Artificial Intelligence and Machine Learning (2000s-Present): AI systems are being integrated into all facets of life, from healthcare and finance to manufacturing and retail, enabling predictive analytics and decision-making.

• Internet of Things (IoT) (2010s-Present): Connected devices and sensors gather data in real-time, creating a seamless network of intelligent systems across industries.

6

• Advanced Robotics (2000s-Present): Robotics is evolving with AI capabilities, enhancing productivity in fields ranging from manufacturing and logistics to healthcare and agriculture.

• Big Data and Analytics (2010s-Present): The ability to process vast amounts of data provides actionable insights, driving efficiency, customization, and innovation.

• Blockchain Technology (2008-Present): Blockchain is revolutionizing digital security, transparency, and trust across industries, from supply chains to financial services.

How It Sets Up Future Revolutions:

• Industry 4.0 is building a foundation for the next wave of innovation—potentially Industry 5.0—where human intelligence and creativity work harmoniously with smart machines, emphasizing personalized production and sustainable practices.

Key Takeaway: How Each Revolution Set Up the Next for Success

Every industrial revolution has built upon the advancements of its predecessors, creating a continuous cycle of innovation and transformation. As we look forward to the future, it’s clear that the ongoing integration of technology, data, and human creativity will drive the next great revolution.

​

7

Case STUDY EXAMPLE

How to Implement the Principles of Lean in High-Mix Low-Volume Facilities

Principle #1: Specify value from the standpoint of the end customer by product family. The universal metrics for measuring Value delivered to the customer are Quality, Cost and Delivery. However, unlike an OEM like Toyota, an SME (small and medium-size enterprise) has to score high on metrics that measure their Flexibility (the ability to respond to changes in product mix and/or volume without increasing delivery times), Agility (the ability to respond quickly to customer needs and market changes while still controlling costs and quality) and Re-Configurability (the ability to rapidly modify factory layout, equipment configurations, support services, etc. to respond to sudden market changes). (Source: http://www.allaboutlean.com/change-in-manufacturing/)

Principle #2: Identify all the steps in the Value Stream for each product family, eliminating whenever possible those steps that do not create value. First, using Volume, $ales, Routing Similarity and Sales History of the different products, use Product Mix Segmentation to partition the entire product mix into three different segments – Runners, Repeaters and Strangers. Next, use Production Flow Analysis to analyze the routings of the products included in the Runners and Repeaters segments of the product mix. Products with similar/identical routings can be grouped into product families. Each product family is analogous to a Value Stream. For each product family, develop a Value Network Map to aggregate the different Value Streams into a single map which will show the interactions between streams that use common resources. In the case of a complex fabricated product with many components and sub-assemblies, it is a non-trivial problem to correctly aggregate the individual Value Streams and display all of them in a single Value Network Map.

Principle #3: Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer. Cells are the foundation and building blocks to implement this principle. Each cell is designed to operate like a mini-job shop that has to produce any combination of products in a large product family. With the daily mix of products changing and the orders having different due dates, the cell may not be able to achieve perfect one-piece flow between its machines. Still, due to the proximity between the different machines in the cell, it is easy to move small batches of parts between machines in person or on wheeled carts or on short roller conveyors or using a Gorbel crane. Like the amoeba and paramecium which are single-cell self-sufficient organisms, a manufacturing cell must be capable of operating autonomously. Inside a cell, all the Lean tools, such as cross-training of the cell employees, 5S, SMED, TPM, Poka-Yoke, Standard Work, etc. can be used to help the cell to operate as a self-sufficient business unit whose operations are not disrupted by defective materials, machine breakdowns, long setups, absenteeism, poor communications with suppliers and customers, etc.

8

Principle #4: As flow is introduced, let customers pull value from the next upstream activity. The typical job shop is a make-to-order (MTO) business where orders are pulled into production based on actual demand. A jobshop’s order mix and daily schedule for releasing orders tend to change daily! Each order has a due date for delivery to its customer. Some of the tools that have been successfully used to schedule job shops are Drum-Buffer-Rope, Finite Capacity Scheduling, Manufacturing Execution Systems, Water Striders, CONWIP and Electronic Visual Schedule Boards.

Principle #5: As value is specified, Value Streams are identified, wasted steps are removed, and Flow and Pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste. As more and more cells are implemented, among the major challenges that will arise are (i) being able to place inside each cell all the equipment it needs to be self-sufficient, (ii) ensuring that the order pipeline for the part family assigned to each cell is sustained, (iii) convincing employees to get cross-trained to run different machines in the same cell and (iv) changing the mindset of management to allow the cell operators to manage their cell, etc.

Implementing Lean Principles #2 and #3 using Production Flow Analysis

Production Flow Analysis (PFA) is an effective step-by-step strategy for analyzing and improving the material flows at different levels in a single factory. PFA is implemented in four stages: (1) Factory Flow Analysis (FFA), (2) Group Analysis (GA), (3) Line Analysis (LA) and (4) Tooling Analysis (TA). Each stage in PFA seeks to improve the flow in a progressively smaller area of the factory as explained below:

1. Factory Flow Analysis (FFA): FFA evaluates the flows between shops (or buildings) on the factory site to eliminate wastes due to transportation, communication delays, use of large containers for WIP and use of bulk-handling material handling equipment to move those large containers over large distances.
2. Group Analysis (GA): GA evaluates the flows in each shop (or building) on the factory site to implement manufacturing cells that will produce families of parts with identical (or similar) routings.
3. Line Analysis (LA): LA evaluates the flows between machines in each cell inside a shop (or building) to design a cell layout for efficient inter-machine material handling, multi-machine tending by any operator and minimum wasted operator movements, operator safety, etc.
4. Tooling Analysis (TA): TA evaluates the flows at each machine in a cell to optimize the workstation layout for ease of machine operation, parts inspection, rapid setup activities (machine loading/unloading, tool changes, fixture changes, work station cleanup), etc.

​

​

9

Boeing disaster of 737. Why?

The Boeing 737 MAX is a case study in industrial engineering failures that highlights issues with decision-making, risk management, and supply chain management:

• Flawed design�The MCAS system was designed with a single AOA sensor, which was a risk because sensors can fail. Boeing chose this design to avoid additional pilot training requirements, which would have increased costs.
• Software changes�Boeing made a major software change to address stall problems, but didn't disclose it to the FAA or pilots. This change took flight control away from pilots without their knowledge.
• Pressure to meet deadlines�Boeing was under pressure to meet production schedules and compete with Airbus, which led to rushed decisions and compromised safety assessments.
• Communication breakdowns�There was a lack of communication between engineering teams, management, and regulatory bodies.
• Supply chain vulnerabilities�The COVID-19 pandemic exposed vulnerabilities in Boeing's global supply chain.
• Conflict between corporate profits and public safety�Boeing's design decisions prioritized corporate profits and shareholder earnings over public safety.

The 737 MAX crashes in 2018 and 2019 killed 346 people. The FAA forced Boeing to ground its 737 MAX fleet, which led to 20 months of regulatory inspections, tests, and design changes

​

10

Apple, Fryer, BMW: Success stories

Tim Cook, the CEO of Apple, is a notable success story of an industrial engineer. Cook's industrial engineering degree from Auburn University and his experience helped him to:

• Strategize cost savings�Cook used his knowledge to help Apple save money by replacing its factories and warehouses with contract manufacturers. This allowed Apple to produce more devices faster and avoid bankruptcy.
• Focus on sustainability�Cook made it a goal for Apple's supply chain to use renewable energy exclusively.

Cook’s knowledge and experience in industrial engineering helped him to effectively strategize how to save Apple money over the years, including replacing Apple’s warehouses and factories with contract manufacturers. This move helped Apple rebuild the company and avoid bankruptcy as it was able to make larger quantities of devices faster.

​

A FREYR virtual battery factory, for instance, provides 3D representations of the infrastructure, plant, machinery, equipment, human ergonomics, safety information, robots, automated guided vehicles, and detailed product and production simulations.

A digital twin of a BMW automotive factory is another example. With simulation, the entire planning phase of the manufacturing facility can happen in a virtual world, and everything can be tried out and tested. “The OEM knows with a high-level of confidence that a system is going to run and achieve the throughput on day one,” Andrews said.

​

​

​

​

11

Siemens: Success story

“Predictive maintenance is one of the first things to implement with AI in an industrial setting,” said Bernd Raithel, director of product management and marketing for factory automation at Siemens Digital Industries.

Mechanical parts like bearings wear out and must be replaced routinely, like changing the engine oil in a car based on distance traveled.

“AI predicts that Machine A is going to fail with a stated confidence level in the next two days,” Raithel said, so the maintenance team knows to replace the bearings before they get stuck. A short, planned maintenance shutdown results in less loss of production than an extended, unplanned outage.

Prescriptive maintenance is a step beyond predictive maintenance. Although the two terms sound similar, prescriptive maintenance keeps more complex equipment running. AI may adjust the operations of the equipment to keep it going. And “prescriptive maintenance gives some ideas up front about what component is about to fail and what parts the technician needs to fix the machine,” Raithel said.

Successful AI requires data from production processes. When the public sees AI in action, the vendor has already performed the AI training. In contrast, for industrial manufacturers, the first step is to collect enough data on which to base decisions,” Raithel said. “There’s often a lot of data already available from machines.”

Siemens, for instance, used a wealth of production data to increase throughput of a production line of printed circuit boards by performing 30% fewer x-ray tests. They accomplished this task using AI to identify which boards were likely to benefit from inspection. The company collected large amounts of processes, parameters and other information about test results to feed the AI model as well as correlating 40,000 production parameters.

With the data, Raithel said, Siemens learned which parts were defective as well as the source of the defects, which the company used to further improve quality.

​

12

Chronology of Industrial Engineering

• Charles Babbage visited factories in England and the United States in the early 1800’s and began a systematic recording of the details involved in many factory operations.

​

• He carefully measured the cost of performing each operation as well as the time per operation required to manufacture a pound of pins.

​

• Babbage presented this information in a table, and demonstrated that money could be saved by using women and children to perform the lower-skilled operations.

​

• The higher-skilled, higher-paid men need only perform those operations requiring the higher skill levels.

13

• Frederick W. Taylor is done potential improvements to be gained through analyzing the work content (minimum amount of work required to accomplish the task) of a job and designing the job for maximum efficiency.

​

• Frank B. Gilbreth extended Taylor’s work considerably. Gilbreth’s primary contribution was the identification, analysis and measurement of fundamental motions involved in performing work.

​

• Henry L. Gantt, developed the Gantt chart. The Gantt is a systematic graphical procedure for pre-planning and scheduling work activities, reviewing progress, and updating the schedule.

​

​

• During the 1920s and 1930s much of fundamental work was done on
• economic aspects of managerial decisions,
• inventory problems,
• incentive plans,
• factory layout problems,
• material handling problems,
• principles of organization.

14

Definition of Industrial Engineering

• The formal definition of industrial engineering has been adopted by the Institute of Industrial Engineers (IIE):

​

“Industrial Engineering is concerned with the design, improvement, and installation of integrated systems of people, materials, information, 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 system”.

​

Scope

• The degree of industrial engineering is evidenced by the wide range of such activities as research in biotechnology, development of new concepts of information processing, design of automated factories, and operation of incentive wage plans.

17

Diversity

​

• Industrial engineering is a diverse (various) discipline concerned with the design, improvement, installation, and management of integrated systems of people, materials, and equipment for all kinds of manufacturing and service operations.

​

• Industrial engineering is concerned with performance measures and standards, research of new products and product applications, ways to improve use of scarce (limited) resources and many other problem solving adventures.

​

​

• An Industrial Engineer may be employed in almost any type of industry, business or institution, from retail establishments to manufacturing plants to government offices to hospitals.

​

• Because their skills can be used in almost any type of organization, and also industrial engineers are usually distributed among industries than other engineers.

​

• For example, industrial engineers work in insurance companies, banks, hospitals, retail organizations, airlines, government agencies, consulting firms, transportation, construction, public utilities, social service, electronics, personnel, sales, facilities design, manufacturing, processing, and warehousing.

18

Efficiency

​

• Industrial engineers determine the most effective ways for an organization to use the basic factors of production - people, machines, materials, and energy. They are more concerned with people and methods of business organization than engineers in other specialties.

​

• To solve organizational, production, and related problems most efficiently, industrial engineers design data processing systems and apply mathematical analysis such as operations research.

​

• They also develop management control systems to help in financial planning and cost analysis, design production planning and control systems to coordinate activities and control product quality, and design or improve systems for the physical distribution of goods and services.

​

• Industrial engineers conduct surveys to find plant locations with the best combination of raw materials, and transportation.

​

• They also develop wage and salary administration systems and job evaluation programs.

19

Activities

​

• Install data processing, management information, wage incentive systems.
• Develop performance standards, job evaluation, and wage and salary programs.
• Research new products and product applications.
• Improve productivity through application of technology and human factors.
• Select operating processes and methods to do a task with proper tools and equipment
• Design facilities, management systems, operating procedures
• Improve planning and allocation of limited resources
• Enhance plant environment and quality of people's working life
• Evaluate reliability and quality performance
• Implement office systems, procedures, and policies
• Analyze complex business problems by operations research
• Conduct organization studies, plant location surveys, and system effectiveness studies
• Study potential markets for goods and services, raw material sources, labor supply, energy resources, financing, and taxes.

20

The evolution of the industrial and systems engineering profession has been affected significantly by a number of related developments.

​

Impact of Operations Research

​

• The development of industrial engineering has been greatly influenced by the impact of an analysis approach called operations research.
• This approach originated in England and the United States during 2^nd World War and was aimed at solving difficult war-related problems through the use of science, mathematics, behavioral science, probability theory, and statistics.

​

Impact of Digital Computers

​

• Another development that had a significant impact on the IE profession is the digital computer. Digital computers permit the rapid and accurate handling of huge quantities of data, so permitting the IE to design systems for effectively managing and controlling large, complex operations.
• The digital computer also permits the IE to construct computer simulation models of manufacturing facilities in order to evaluate the effectiveness of alternative facility configurations.

21

• Computer simulation is emerging most widely used IE technique. The development and widespread utilization of personal computers is having an exciting impact on the practice of industrial engineering.

​

Emergence of Service Industries

​

• In the early days of the industrial engineering profession, IE practice was applied almost fully in manufacturing organizations. After the 2^nd World War there was a growing awareness that the principles and techniques of IE were also applicable in non-manufacturing environments.

​

• Thousands of Industrial Engineers are employed by government organizations to increase efficiency, reduce paperwork, design computerized management control systems, implement project management techniques, monitor the quality and reliability of vendor-supplied purchases, and for many other functions.

22

Engineering Education and ABET Accreditation

​

• Engineering education has progressed through several stages of evolution. Prior to 2^nd World War engineering education was concerned with the art and practice of engineering principles.

​

• Engineering students spent long hours learning to operate lathes, drill presses, molding machines, foundries, and so on.
• They learned to wind motors and to build radio sets. There was a considerable amount of “hands-on” experience involved in the educational process.

​

• The Accreditation Board for Engineering and Technology (ABET) is the official agency in the United States for examining and accrediting (approving) engineering curricula.

​

• The purpose of ABET accreditation is to assure the public and employers of engineering graduates that certain minimum standards have been met.

23

Professional Ethics

​

• The word ethics has several distinct meanings.
• Engineering ethics is the study of the moral values, issues, and decisions involved in engineering practice.
• Engineers are frequently involved in decisions that have a reflective (deep) effect on society.
• The design of particular devices almost always involves the safety of the user.
• The design and location of a factory affect the community and its citizens.
• The design of a management system greatly affects the individuals working for the organization – their comfort, their sense of worth, their financial status, and so on.
• The engineering profession enjoys a very favorable status regarding its devotion to professional ethics.

​

24

Ethics Case: Challenger Explosion

On January 28, 1986, seven astronauts were killed when the space shuttle they were piloting, the Challenger, exploded just over a minute into the flight. The failure of the solid rocket booster O-rings to seat properly allowed hot combustion gases to leak from the side of the booster and burn through the external fuel tank. The failure of the O-ring was attributed to several factors, including faulty design of the solid rocket boosters, insufficient low- temperature testing of the O-ring material and the joints that the O-ring sealed, and lack of proper communication between different levels of NASA management.

Managers should not ignore their own engineering experience, or the expertise of their subordinate engineers.

As engineers test designs for ever-increasing speeds, loads, capacities and the like, they must always be aware of their obligation to society to protect the public welfare.

​

​

25

What Is Morality?

​

• Engineering ethics studies moral values in engineering,

​

• What is morality?
• What are moral values?

​

• One suggestion given in dictionaries is that morality concerns right and wrong, good and bad, the rules that have to be followed.

​

• Morality is reasons centered in respect for other people as well as for ourselves, reasons that involve caring for their good as well as our own.

​

• Moral reasons, for instance, involve respecting people by being fair and just with them, respecting their rights, keeping promises, avoiding unnecessary attack, and avoiding cheating and dishonesty.

26

Illustrative Cases

​

• An inspector discovered faulty construction equipment and applied a violation tag, preventing its continued use. The inspector’s supervisor, a construction manager, viewed the case as a minor violation of safety regulations and ordered the tag to be removed so the project would not be delayed. The inspector objected and was threatened with disciplinary action. The continued use of the equipment led to the death of a worker on a tunnel project.

​

• An electric utility company applied for a permit to operate a nuclear power plant. The licensing agency was interested in knowing what emergency measures had been established for human safety in case of reactor break down. The utility engineers described the alarm system and arrangements with local hospitals for treatment. They did not emphasize that these measures applied to plant personnel only and that they had no plans for the surrounding population. “That is someone else’s responsibility, but we don’t know whose,” they answered upon being questioned about this.

27

• A chemical plant dumped wastes in a landfill. dangerous substances found their way into the underground water table. The plant’s engineers were aware of the situation but did not change the disposal method because their competitors did it the same cheap way, and no law explicitly forbade the practice. Plant supervisors told the engineers it was the responsibility of the local government to identify any problems.

​

• The ABC Company began selling its latest high-tech product before it had been fully checked out in beta tests that are, used on real applications by a group of knowledgeable users. It was not really ready for distribution, but clients were already tempted to this product by glossy advertising designed to win the market by being first to capture clients’ attention.

​

• These examples show how ethical problems arise most often when there are differences of judgment or expectations as to what constitutes the true state of affairs or a proper course of action.

28

Why Study Engineering Ethics?

​

• The briefest answer to why engineering ethics should be studied is that it is important both in preventing serious consequences of faulty ethical reasoning and in giving meaning to engineers’ activities.

​

• The direct aim is to increase the ability to deal effectively with moral complication in engineering.

​

• Engineering ethics is a branch of professional ethics, that is, the study of moral values and issues in the professions.

​

• Professional organizations have addressed the complication of moral issues in their fields by developing codes of ethics.

​

• Those codes have great importance as an expression of the profession’s collective commitment to ethics.

29

ENGINEERING CODES OF ETHICS

​

• The Canon (standard) of Ethics provided by the Accreditation Board for Engineering and Technology (ABET). 

​

THE FUNDAMENTAL PRINCIPLES 

• Engineers support and advance the truth, honor and dignity of the engineering profession by: 

​

• Using their knowledge and skill for the enhancement of human wellbeing;

​

• Being honest and neutral, and serving with loyalty to the public, their employers and clients;

​

• Striving to increase the competence and prestige (status) of the engineering profession;

​

• Supporting the professional and technical societies of their disciplines. 

30

Industrial & Systems Engineering

CHAPTER 2

31

https://www.youtube.com/watch?v=HZRRosqAivk

Industrial and Systems Engineering (I&SE) Design

​

• Industrial and systems engineers (I&SEs) design systems at two levels.

​

• The first level is called human activity systems and is concerned with the physical workplace at which human activity occurs.

​

• The second level is called management control systems and is concerned with procedures for planning, measuring, and controlling all activities within the organization.

32

Human Activity System

​

The human activity system within an organization consists of the following elements that are designed by I&SEs:

• The manufacturing process itself (or the processing procedures of a service organization)
• Materials and all other resources utilized in the production process.
• Machines and equipment.
• Methods by which workers perform tasks.
• Layout of facilities and specification of material flow.
• Material handling equipment and procedures.
• Workplace design.
• Storage space size and location.
• Data recording procedures for

management reporting.

• Procedures for maintenance

and housekeeping.

• Safety procedures.

33

Management Control System

​

The management control system of an organization consists of the following elements that are designed by I&SEs:

• Management planning system.
• Forecasting procedures.
• Budgeting and economic analyses.
• Wage and salary plans
• Incentive plans and other employee relations systems.
• Recruiting, training, and placement of employees.
• Materials requirement planning.
• Inventory control procedures.
• Production scheduling.
• Dispatching (sending out)
• Progress and status reporting.
• Corrective action procedures.
• Overall information system.
• Quality control system.
• Cost control and reduction
• Resource allocation.
• Organization design.
• Decision support systems.

​

Although the elements just described are expressed in manufacturing terminology, the framework is applicable to any system.

34

MCS can help ensure that a product or service meets certain standards. For example, a software development agency can use MCS to establish quality control guidelines to help team members test their software.

​

MCS can also positively impact product performance. For example, Adler, Everett, and Waldron (2000) found that MCS positively influenced product performance in industrial companies in New Zealand.

Typical I&SE Activities

​

• Different companies expect I&SEs to perform different kinds of activities.

​

• Traditionally, IE functions have been concentrated at the operations level of a firm.

​

• Other firms, recognizing the broad-based skills of their Industrial Engineers have expanded their activities to include the design of management systems.

​

• In recent years, as the IE role has added a systems flavor. I&SEs are expected to engage in activities at the corporate level.

​

• To gain an appreciation for the broad range of activities in which I&SE might be engaged, a list of activities grouped according to the three categories namely:

​

• Production operations,
• Management systems,
• Corporate services.

35

Production Operations

​

A. Related to Product or Service:

​

1. Analyze a proposed product or service.

​

• Determine whether it would be profitable, at various production volumes.
• Is it compatible (well-suited) with the existing product line?
• Assess the manufacturability of the design, as prepared by the engineering design department.
• Determine the best (most cost-effective) material utilization.

​

​

2. Constantly attempt to improve existing products or services.

​

3. Perform analyses relating to distribution of the product or delivery of the service.

36

B. Related to Process of manufacturing the product or producing the service:

​

• Determine the best process and method of manufacture.
• Select equipment; determine degree of automation, use of robots, and so on.
• Balance assembly lines.
• Determine the best material flow + material handling procedures and systems.

C. Related to Facilities:

​

• Determine the best layout of equipment.
• Determine the appropriate storage facilities for raw materials; work in process, and finished goods inventory.
• Determine appropriate preventive maintenance systems and procedures.
• Provide for appropriate inspection and test facilities.
• Provide sufficient utilities for the operation.
• Provide for security and emergency services.

37

D. Related to Work Methods and Standards:

​

• Perform work measurement studies; establish time standards and update them as required.
• Perform methods of improvement studies.
• Perform value engineering analyses, eliminating cost and waste to the maximum level possible.

​

E. Related to Production planning and control:

​

• Forecast the level of activity. (How many units will be sold)?
• Analyze the capacity and resource constraints.
• Perform operations planning:
• Perform inventory analysis:
• Perform materials requirement planning (MRP)
• Perform operations scheduling:
• Design the quality control system and inspection procedures.
• Design systems and procedures for shop floor control

38

Management Systems

​

A. Related to Information Systems:

​

• Determine management information requirements:
• Identify the decisions that are made by managers at all levels; specify timing of each decision.
• Determine the specific data/information needed for each decision.
• Identify the sources of each data element.
• Determine the preferred form of data.

​

• Design the data base to support the information

system:

• Specify input formats from data sources.

​

• Design the management reports that will be

produced:

• Perform data analyses, as required.
• Provide feedback to all levels of the organization.
• Develop and implement decision support systems.
• Analyze the requirements for data

communications and computer networks.W

39

B. Related to Financial and Cost Systems:

​

• Design a budgeting system.
• Perform a variety of engineering economy studies.
• Design, implement, & follow cost-reduction programs.
• Design procedures for systematically updating standard costs.
• Design systems for generating cost estimates for various purposes.
• Develop procedures for tracking and reporting cost data for management decision making.

​

C. Related to Personnel:

​

• Design procedures for employee testing, selection, and placement.
• Design training and education programs for personnel at all levels in the firm.
• Design and install job evaluation and wage incentive programs.
• Design effective labor relations programs and procedures.
• Apply the principles of ergonomics and human engineering to the design of jobs, workplaces, and the total work environment.
• Develop effective programs of job enhancement.
• Coordinate the activities of

quality circle groups.

• Design, implement, and monitor

effective safety programs.

40

Corporate Services

​

A. Comprehensive Planning:

​

• Design, implement, and monitor a multilevel planning system:

​

• Specify mission of organization.
• Identify key results areas.
• Specify long-term goals.
• Determine short-term objectives.

​

• Assist corporate management in performing

strategic planning.

• Assist corporate management in rationalizing

the firm’s strategy in the international arena.

• Perform enterprise modeling:
• Develop a high-level “business model,” in

which the major data flows are mapped between the major corporate functions.

• Employ structured modeling methods to

develop a hierarchical break down structure of

the enterprise functions, sub-functions, and so on.

• Perform systems integration activities:

​

41

• Determine interdependencies between functions.
• Perform capacity analyses.
• Participate in decisions relative to plant expansion and new plant setting.
• Provide project management services:
• Project definition and planning.
• Work breakdown structures.
• Network analysis.
• Project tracking and follow-up.
• Assist in implementing the concepts of total quality management through out the organization.
• Provide leadership in resource management:
• Provide investigative services regarding utilization of energy, water, and other resources.
• Develop effective systems for the management of hazardous wastes, scrap, and other by-products.

42

The Three Levels of Enterprise Strategy

• Enterprise strategy can be formulated and implemented at three different levels:
• Corporate level
• Business unit level
• Functional or departmental level

​

• At the corporate level, you are responsible for creating value through your businesses. You do so by managing your portfolio of businesses, ensuring that your businesses are successful over the long term, developing business units, and sometimes ensuring that each business is compatible with others in your portfolio.

​

• Products and services are developed by business units. The role of the corporation is to manage its business units, products and services so that each is competitive and so that each contributes to corporate purposes.

Corporate Level Strategy

​

• Corporate level strategy fundamentally is concerned with selection of businesses in which your company should compete and with development and coordination of that portfolio of businesses.

​

• Corporate level strategy is concerned with:
• Reach – defining the issues that are corporate responsibilities. These might include identifying the overall vision, mission, and goals of the corporation, the type of business your corporation should be involved, and the way in which businesses will be integrated and managed.
• Competitive Contact – defining where in your corporation competition is to be localized.
• Managing Activities and Business Interrelationships – corporate strategy seeks to develop synergies by sharing and coordinating staff and other resources across business units, investing financial resources across business units, and using business units to complement other corporate business activities.
• Management Practices – corporations decide how business units are to be governed: through direct corporate intervention (centralization) or through autonomous government (decentralization).

​

Business Unit Level Strategy

• A strategic business unit may be any profit center that can be planned independently from the other business units of your corporation. At the business unit level, the strategic issues are about both practical coordination of operating units and about developing and sustaining a competitive advantage for the products and services that are produced.

​

Functional Level Strategy

• The functional level of your organization is the level of the operating divisions and departments. The strategic issues at the functional level are related to functional business processes and value chain. Functional level strategies in R&D, operations, manufacturing, marketing, finance, and human resources involve the development and coordination of resources through which business unit level strategies can be executed effectively and efficiently.
• Functional units of your organization are involved in higher level strategies by providing input into the business unit level and corporate level strategy, such as providing information on customer feedback or on resource and capabilities on which the higher level strategies can be based. Once the higher level strategy or strategic intend is developed, the functional units translate them into discrete action plans that each department or division must accomplish for the strategy to succeed.

​

B. Policies and Procedures:

​

• Perform studies relative to organizational analysis and design.
• Perform analyses of various functional groupings, recommend improvements to top management.
• Develop and maintain policy manuals.
• Develop and maintain current procedures relative to all management practices and systems.

​

C. Performance Measurement:

​

• Design meaningful performance measures for the key results areas of each organizational unit.
• Identify the “critical success factors” or measures of value for each unit.
• Develop methods and systems for analyzing operating data of all units and interpreting the results.
• Specify corrective action procedures.
• Design reports for all levels of management.

46

D. Analysis:

​

• Analyze systems and construct models:

​

• State explicitly the problem being studied.
• Determine the appropriate solution method. Apply fundamental solution methodologies.
• Recognize all assumptions pertaining to model and the solution method.

​

• Perform simulation studies as appropriate.
• Perform operations research studies as appropriate.
• Perform statistical analyses.
• Recognize the dynamic nature of the system being studied and include this feature in proposed solutions.
• Apply the concepts of artificial intelligence and expert systems, as appropriate.
• Conduct designed experiments on appropriate portions of the organization, in an attempt to continuously improve the overall performance of the organization.

​

One person cannot possibly perform all of the previous activities for an organization. I&SE education programs, however, are designed to provide the fundamental principles involved in many of these activities.

47

Career Opportunities for Industrial Engineers

• Industrial engineers are the “problem solvers” in all organizations. Career opportunities for industrial engineering are limitless. A sample list of career opportunities for industrial engineers include:

Manufacturing: regardless of the product manufactured, every manufacturing company needs Industrial Engineers to plan the facility, perform economic analyses, plan and control production, manage people, handle safety issues, improve quality, evaluate performance, etc.

​

Health Services: hospitals and clinics need Industrial Engineers to perform cost/benefit analyses, schedule work load, manage people, evaluate safety concerns, design and maintain facilities, etc.

​

Transportation: airlines, ground transportation, trucking, and warehousing companies need Industrial Engineers to design the best schedules and routes, perform economic analyses, manage crews, etc.

Financial: banks and other savings and lending institutions need Industrial Engineers to design financial plans, perform economic analyses, etc.

​

Government: local and federal governments need Industrial Engineers to design and enforce safety systems, environmental policies, plan for and operate in a number of organizations.

​

Consulting: Industrial Engineers may work as consultants to help design and analyze a variety of systems including information systems, manufacturing and service systems.

​

48

Sample Industrial Engineering Courses

​

• Computer Assisted Drawing and Design

Application of computer-assisted design technology to product design, feasibility study and production drawing.

​

• Product Modeling

Life-cycle product data, geometry and form features, product information models and modeling techniques, product modeling systems, and product data standards.

​

49

• Introduction to Industrial and Systems Engineering (ISE)

Definition of Industrial and Systems Engineering (ISE); ISE’s origins, role, functions; and contributions of the ISE in industry. Professional development opportunities.

​

• Quality Control

Modern concepts for managing the quality function of industry to maximize customer satisfaction at minimum quality cost. The economics of quality, process control, organization, quality improvement, and vendor quality.

​

• Engineering Economic Analysis

Basic methods of engineering economic analysis including equivalence, value measurement, interest relationships and decision support theory and techniques as applied to capital projects.

​

​

50

​

​

• Facilities Planning and Materials

Application of methods and work measurement principles to the design of work stations. Integration of work stations with storage and material handling systems to optimize productivity.

​

​

• Manufacturing Processes

Study of interrelationships among materials, design and processing and their impact on workplace design, productivity and process analysis.

​

• Introduction to Engineering Management

Organization of engineering systems including production and service organizations. Inputs of human skills, capital, technology, and managerial activities to produce useful products and services.

​

​

51

• Industrial Information Systems

The integration of information flows and databases with the production planning and control systems into productive and manageable systems.

​

• Safety in Engineering

Introduces occupational safety and health hazards associated with mechanical systems, materials handling, electrical systems, and chemical processes. Illustrates controls through engineering revision, safeguarding, and personal protective equipment. Emphasis placed on recognition, evaluation and control of occupational safety and health hazards.

​

• Human Factors Engineering

Examination of the ways to fit jobs and objects better to the nature and capacity of the human being. Lectures will review man’s performance capability, singly and in groups, in interacting with his work environment. Stresses the practical application of human factors principles.

​

​

52

• Methods Engineering and Work Design

The analysis, design, and maintenance of work methods. Study of time standards, including pre-determined time standards and statistical work sampling.

​

​

​

• Productivity Engineering and Management

The improvement of productivity as a functional activity of the enterprise. Productivity definitions, models, analysis, measurement, methodologies, and reporting systems.

​

• Production Planning and Control

Production systems, demand forecasting, capacity planning, master production planning, material requirements planning, shop floor control, and assembly line balancing.

​

​

53

• Introduction to Technology Entrepreneurship

An introduction to theories, concepts, and practices of entrepreneurship. Students will produce feasibility analyses, learn to develop and analyze new ventures, and be introduced to business plans.

​

• Co-op Work Experience Practical

Co-op work experience under approved industrial supervision. Written report required at the conclusion of the work assignment.

​

• Systems Engineering Senior Project �A design course that draws upon various components of the undergraduate curriculum. The project typically contains problem definition, analysis, evaluation and selection of alternatives. Real life applications are emphasized

54

​

• Operations Research I

Modeling principles with emphasis on linear programming and extensions. The simplex procedure and its application through computer software packages. The analysis and interpretation of results in decision-making.

​

• Simulation Models of Industrial Systems

Simulation methodology, design of simulation experiments, implementation of simulation effort through computer software. Application to the solution of industrial and service system problems.

​

• Total Quality Management for Engineers

Fundamentals of TQM and its historical development. Integration of QC and management tools, QFD, benchmarking, experimental design for scientific management.

55