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IE Module 1
IE Module 1
IE Module 1
1
MODULE 1
Introduction to Industrial Engineering
Evolution of modern concepts
Functions of Industrial Engineering
Fields of application
Product development and Research
Design function
Objectives of design
Manufacturing vs purchase – economic aspects
CVP analysis – simple problems
Development of designs – prototype, production and
testing
Human factors in design
2
Value engineering
INTRODUCTION
3
INTRODUCTION
4
INTRODUCTION
design
improvement
and installation of integrated systems of
people,
materials,
information,
equipment
and energy. 5
INTRODUCTION
It draws upon specialized knowledge and skill in
6
INTRODUCTION
Industrial Engineering
7
EVOLUTION OF INDUSTRIAL ENGINEERING
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HISTORY OF IE
Started with industrial revolution in 18th century (around
1750)
Passed through various phases with contributions from
various individuals.
The industrial revolution obtained from the development of
new inventions, particularly in textile industry and the steam
engine led factories with large number of workers.
With enormous growth in industry, the management thinking
had begun.
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SOME OF THE CONTRIBUTORS
Adam Smith (1723-1790) (Economist- Division of labour):
The Wealth of Nations was published in 1776.
Frederick W. Taylor (1856-1915) – The principles of
Scientific management was published in 1911. Father of
scientific management
Henry L Gantt (1861-1919)- Gantt Chart
F. B. Gilbreth (1868-1924) – Method study-Motion study.
Ralph M Barnes – (American Industrial Engineer) Noted
for his research in the area of motion study. Motion and
Time study published in 1937.
Henry Ford – Contributed in the development of 10
assembly line technique in mass production.
HISTORY OF IE
During late 19th century drive for IE was provided by
engineers / managers of US.
It achieved maturity after World War ІІ.
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HISTORY OF IE
Phase 1: Pre-Industrial Revolution Era.
Phase 2: Industrial Revolution
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HISTORY OF IE
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HISTORY OF IE
Industrial revolution-
Industrial Engineering emerged as a profession
during the Industrial Revolution.
This was during the period around 1750 to 1840.
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HISTORY OF IE
Scientific Management Phase (up to 1940‟s)
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HISTORY OF IE
Automation and Computer Integrated
Manufacturing Phase (Since Early 1980‟s):
Cycle-time reduction
Flexibility
Customer focus 19
FUNCTIONS OF INDUSTRIAL ENGINEERING
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ACTIVITIES/FUNCTIONS OF INDUSTRIAL ENGINEERING
Methods engineering – method study, time study, selection of
equipment, etc.
Material Handling
Management of Inventory
Logistics management 22
FIELDS OF APPLICATION
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AREAS OF APPLICATION
Initially, applied to manufacturing industries-
to improve methods of production
To control inventory
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AREAS OF APPLICATION
Later, applied to non-manufacturing industries-
Construction project planning
Transportation
Hospital management,
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REDESIGNING MIDDAY MEAL LOGISTICS
The Akshaya Patra Foundation was founded in
2000 in Bangalore to provide free mid-day meals
to the students of government schools.
Time of delivery and temperature of food at
the time of delivery should be maintained as per
the specifications.
1.3 million children in more than 9,000 schools in
nine states.
The foundation faced a logistics problem in
efficiently distributing food within the available
time window.
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REDESIGNING MIDDAY MEAL LOGISTICS
Study by IIMB
Used OR modeling to overcome logistics issues
Clustering schools
Assigning appropriate distribution vehicles to
clusters
Routing vehicles within the clusters.
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ROLE OF AN INDUSTRIAL ENGINEER
An industrial engineer works towards finding
simpler, most efficient and cost effective ways to
produce parts.
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PRODUCTIVITY
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PRODUCT DEVELOPMENT AND RESEARCH
Specializaion
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SIMPLIFICATION
Simplification is a process of product analysis
through which unnecessary varieties and designs
are eliminated.
Only a limited number of grades, types and sizes
of the product are retained.
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STANDARDIZATION
Having selected the varieties and grades of the
products to be retained as much of its
manufacturing details are standardized as
possible.
It also reduces component cost since standard
components are manufactures by mass production
methods and are cheaper.
Selection of standard materials ensures physical
performance and guarantees failure-free
operation.
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SPECIALIZATION
It is the natural outcome of the application of
standardization and simplification.
Specialization means concentrating efforts on a
particular field of action or towards a specific
attempt.
A worker is said to be specialized in a work when
he acquires skill and proficiency in it by
concentrating solely on it
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DIFFERENT STAGES OF PRODUCT
DEVELOPMENT
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1 GENERATION OF NEW PRODUCT IDEAS
Product ideas come from a variety of sources.
Usually they come from:
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3. CONCEPT DEVELOPMENT
At this stage, product idea is transformed into a
product concept.
i.e. a product which target market will accept.
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4. BUSINESS ANALYSIS / MARKET ANALYSIS
Business analysis will prove the economic
prospects of the new product.
Market analysis involves a projection of future
demand, financial commitment and return.
The demand potential of the product and the cost
of production and marketing are determined.
It must also be ensure that product concept is
compatible with the resources of the
organisation, i.e. technological, human and
financial.
SWOT analysis is also performed
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5. PRODUCT INTRODUCTION
Make prototype - The first fully operational
production of the complete design solution.
Only after testing under all expected and
unusual operating conditions the prototypes are
brought into full production.
After the above basic requirements are met, the
product is sold on a small scale or regional bases
(test market).
Advertisement and sales promotions for the
product are done.
Feedback is used to take a decision regarding
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complete market launch.
6. PRODUCT LIFE CYCLE ANALYSIS /
PRODUCT SUPPORT
Product planning doesn't stop with the product
launch.
It must also include managing the product through
various stages of its product life cycle.
Introduction, growth, maturity and decline stages
During the growth phase, sales are usually strong
while competition is low.
However, over time, competitors will come up with
their own products.
This competitive products will eat into the market
share of the existing product and sales will fall.
This is the time new strategies have to be formulated
like lowering the product price, throwing in freebies,
developing new or additional features for the product,
etc. 49
PRODUCT EXTENSION/PRODUCT LINE
EXTENSION
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DESIGN
Design is the most creative part of engineering or
Technology.
Engineers have a wide spectrum of design
requirements.
Research and development is the focus of all
thriving engineering organizations.
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DESIGN FUNCTION
It is essential to design a product before starting
its manufacture.
Designing is very important before actual
transformation of raw materials into finished
products.
The design determines the commercial success of
a product.
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DESIGN FUNCTIONS
Things, a designed device or system is supposed to do.
Engineering functions almost always involve transforming or
transferring energy, information, or material.
More functions leads to more constraints
For example, the drill should work in high humidity (in rain)
The drill should switch off if the load exceeds
Thus, some of the functions can lead to constraints
(specifying the maximum load)
DESIGN FUNCTION
This is about the specifics, the design is planned to do
Secondary
Compact and less weight
Secondary unwanted
Generate heat
Generate Noise
OBJECTIVES OF DESIGN
The objective of product design is to create goods
or services with excellent functional utility and
sales appeal at an acceptable cost and within a
reasonable time.
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REQUIREMENTS/OBJECTIVES OF A GOOD PRODUCT
DESIGN
Easy to store
Competitive price.
Easy to manufacture
Easy to assemble
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PRODUCT DESIGN
New products have changed the life of one and all.
E.g. Computer, cell phone, etc.
Look around-Variety
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TYPES OF DESIGN
Classification is based on the difficulty of the
design process:
Adaptive design
Development design
New design
ADAPTIVE DESIGN
Easiest
Deals with the creation of a design process based on an
existing similar process.
Existing design → Modifications → New design
DEVELOPMENT DESIGN
Complex in nature
The design may start from an existing design,
but the final outcome may vary significantly from
the initial product.
Eg: Manual Transmission → Continuously variable
transmission (CVT)
NEW DESIGN
Most difficult
Creativity of the designer
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1. CONCEPTION
In this stage, after incorporating the user
requirements, the draft specifications for the
product are laid down.
On design specification, the following information
should be furnished:
Performance requirements
Appearance or supplying requirements.
Estimated quantity which will be sold.
Maximum price within which the product should
be offered
Probable date of introduction of the product into
the market 71
2. ACCEPTANCE
This is a stage, where the design activity of the
product begins after the feasibility analysis
Calculations of the product is accepted in this
stage.
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3. EXECUTION
Based on general design considerations, a model
is prepared as per the acceptance of specification
in stage 2.
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4. TRANSLATION
At this stage, the production engineering
department is involved in design work.
The manufacturing feasibility is tested at this
stage.
The final manufacturing drawings are also
prepared in this stage.
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5. PRE-PRODUCTION
Before starting the production on commercial
basis, it is recommended to carry out a pilot run
under production conditions.
The pre-production run will ensure the quality
and reliability of the product as per the
specifications.
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MANUFACTURING VS PURCHASE –
ECONOMIC ASPECTS
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MAKE OR BUY DECISION
A make-or-buy decision is the act of choosing
between manufacturing a product in-house or
purchasing it from an external supplier.
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MAKING DECISION – FACTORS
Purchase and maintenance of any production
equipment.
Cost of production materials.
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BUYING DECISION - FACTORS
The price of the item
Any shipping or importing fees
Lack of expertise.
Suppliers' research and specialized know-how
exceeds that of the buyer.
Cost considerations (less expensive to buy the
item).
Small-volume requirements.
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FACTORS THAT MAY INFLUENCE FIRMS TO
BUY A PART EXTERNALLY INCLUDE
Brand preference.
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FACTORS THAT MAY INFLUENCE FIRMS TO
MAKE A PART INTERNALLY INCLUDE
Unreliable suppliers
No competent suppliers
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CVP ANALYSIS - FIXED COST
These are the costs which incurred for a period
and which within certain output and turnover
limits, tend to be unaffected by fluctuations in
the levels of activity (Output or turnover).
For example: Rent, insurance of factory building
etc. remain the same for different levels of
production
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FIXED COST GRAPH
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CVP ANALYSIS - VARIABLE COST
These costs tend to vary with the volume of
activity.
Any increase in activity results in an increase in
the variable cost and vice versa.
For example: Cost of direct labour, direct
material, etc.
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VARIABLE COST GRAPH
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BREAK-EVEN ANALYSIS (CVP ANALYSIS)
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BREAK-EVEN ANALYSIS
BEA is used to analyse the relationship between
cost, volume and profit.
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BREAK-EVEN ANALYSIS
Decision to make or buy is based on break-even point.
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BREAK-EVEN ANALYSIS : EXAMPLE 2
XYZ company presently purchases a component
for its end product at Rs. 5 per unit. The company
is considering to make the component at Rs. 3 per
unit. However, it will incur a fixed cost of Rs.
20000. What is the minimum quantity to be
manufactured so that it is more profitable as
compared to buying?
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BREAK-EVEN ANALYSIS
Ans: 10000+1
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BREAK-EVEN ANALYSIS: EXAMPLE 3
From the following data (a) find out the break
even point. Variable cost per unit =Rs. 18, Fixed
cost = Rs. 80000, Selling price per unit = Rs. 28.
(b) What should be the selling price per unit if
the BEP brought down to 4000 units.
108
HUMAN FACTORS IN DESIGN -
ERGONOMICS
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ERGONOMICS
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OBJECTIVES OF ERGONOMICS
Improve human well-being and overall system-
performance by optimising the integration of man
and machine.
Obtain maximum satisfaction for the worker by
taking care the factors governing the physical
and mental fatigue.
Attempts to minimize the risk of injury, illness,
and errors without compromising productivity.
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ADVANTAGES OF ERGONOMICS
Higher productivity
Less fatigue and more comfort to the worker
Increased safety.
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RELATED SCIENCES OF ERGONOMICS
Anthropology:
It is the study of human characteristics such as
height, weight, reach, and its variations over
time.
The data is useful for determining the boundaries
of the work-place, heights and shapes of the seats
and work tables to suit human body
measurements.
The data is useful for designing handles, levers,
etc. so that they are easy to reach and operate.
115
RELATED SCIENCES OF ERGONOMICS
Physiology:
Concerned with the determination of :
116
RELATED SCIENCES OF ERGONOMICS
Psychology:
Study concerned with human behaviour and
human reactions under various working
conditions and under the influence of mental
strain.
In the language of ergonomics, the factors which
make the job uncomfortable are called „stressors‟
and the effect of stressors on human body is
called strain.
Strain can either physiological or psychological or
combination of them.
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FACTORS AFFECTING HUMAN COMFORT IN
WORKPLACE
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ERGONOMICS
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ERGONOMICS
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MAN-MACHINE SYSTEM
Human-factors engineers regard humans as an
element in systems, and a man-machine model is
the usual way of representing that relationship.
Information processing
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VALUE ENGINEERING
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VALUE ENGINEERING / VALUE ANALYSIS
Value analysis aims at a systematic
identification and elimination of unnecessary
costs.
It is primarily developed as a cost reduction
technique.
It critically investigates and analyses the
different aspects of materials, purchase, design
and production of each and every component of
the product.
Value analysis is normally applied to existing
rather than to new products.
129
VALUE ENGINEERING / VALUE ANALYSIS
Value analysis examines the design, function,
and cost of each and every component in order to
produce it economically without decreasing its
utility or reliability.
131
VALUE ENGINEERING
It is the application of the concepts of value
analysis at the design or pre-manufacture stage
of the component parts.
132
VALUE ENGINEERING
Value engineering (VE) is the study of
functions to satisfy the user needs of a
quality product at low life cycle cost through
well planned design with creativity.
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VALUE ENGINEERING
It is a primary tenet of value engineering that
basic functions be preserved and not be reduced
as a consequence of pursuing value
improvements.
138
APPLICATIONS
VA/VE has applications in almost all fields.
Military equipment
Construction
Healthcare
139
BENEFITS
Faster cost reduction technique.
Improved customer satisfaction (as the value of the
product is increased).
Increased sales and thus increased profit.
140
REASON FOR POOR VALUES
Gaps in user expectation and the product or
service
Design based on habitual thinking or faulty
beliefs
Not enough time for project formulation and/or
design
Lack of and/or poor coordination amongst
designers
Failure to utilize all available resources
141
TYPES OF VALUES
It is usually difficult to specify value mainly
because values change from person to person.
142
TYPES OF VALUE
Use value: It is also called functional value. It
considers the work done, functions performed or
services rendered by a product or component.
143
TYPE OF VALUE
Cost value: It is the total cost of material, labour,
overhead and services to produce an item (or to
deliver a service).
144
STAGES IN VALUE ANALYSIS
VA starts with the identification of its function or end
use.
The main purpose is to provide the required function
at the least cost.
Stages:
Orientation phase
Information phase
Functional analysis phase
Creative phase
Evaluation phase
Investigation/development phase
Presentation phase
Implementation phase
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Follow-up phase
STAGES IN VALUE ANALYSIS
Orientation phase: Identification of the problems
very clearly, formation of teams, laying down
objectives and in-depth training of all the team
members.
Information phase: All the relevant information
like drawings, technical specifications,
manufacturing processes, quality, production
problems, etc. is gathered.
Functional analysis phase: Involves analysis and
identification of functions.
146
STAGES IN VALUE ANALYSIS
Creative phase: This is the essence of value
engineering. Brainstorming sessions and other
creativity techniques are used to generate a large
number of ideas for providing the functional
requirements.
Evaluation phase: the possible alternatives
developed are analysed and ranked. One or more
alternatives are selected for development.
Investigation/development phase: short-listed
ideas are investigated in-depth to arrive at
optimum and practical solution.
147
STAGES IN VALUE ANALYSIS
Presentation phase: the selected alternative is
presented to the decision maker for approval and
implementation.
Implementation phase: involves the
implementation of the selected alternative.
Follow-up phase: compares the results with the
original expectations and suggests corrective
action, if any.
148
VALUE ENGINEERING
What the product is supposed to do?
Lack of standardization
150
VALUE ENGINEERING VS VALUE ANALYSIS
These two terms are often used synonymously.
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