 Quality Focus
 Lean Production Era (1980 - 1995)
PIE Reviewer
Lesson 1: Intro to IE
Engineer [noun] (en-juh-neer)
-Engineer comes from latin word INGENIUM means
cleverness and INGENIARE means to contrive, devise
-Someone that gets excited about things no one else
care and solve problems you didn’t know existed.
Engineering
Is a scientific field and job that involves taking our
scientific understanding of the natural world and using it to
invent, design and build things to solve problems and achieve
practical goals.
Industry
Is a classification that refers to group of companies
that are related based on their primary business activities.
Types of Industry
 Primary Industry - goods with the help of nature
 Genetic Industry - reproduction
 Extractive Industry - produce output using extracting
something. Ex. Mining
 Secondary Industry - products from primary.
 Service Industry - create utilities, services and sell them
to client. Ex. Hotels, Health cares etc.
Industrial Engineering is concerned with the design,
improvement and installation of integrated system of men,
materials and equipment.
“It draws upon specialized knowledge and skills in the
mathematical, physical 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”.
- Institute of Industrial and Systems Engineer (IISE)
History of Industrial Engineering
In the end of 17 hundreds, production meant crafts (a craft
man used to treat material and assemble the pieces)
 Cost Focus
 Early Concepts (1776 - 1880)
 Labor Specialization (Smith, Babbage)
 Standardized Parts (Whitney)
 Scientific Management Era (1880 - 1910)
 Gantt Charts (Gantt)
 Motion & Time Studies (Gilbreth)
 Process Analysis (Taylor)
 Queuing Theory (Erland)
 Mass Production Era (1910 - 1980)
 Moving Assembly Line (Ford/Sorensen)
 Statistical Sampling (Shewhart)
 Economic Order Quantity (Harris)
 Linear Programming (Dantzig)
 PERT/CPM (Dantzig)
 Material Requirements Planning
 Just in Time
 Computer Aided Design
 Electronic Data Interchange
 Total Quality Management
 Baldrige Award
 Empowerment
 Kanbans
 Customization Focus
 Mass Customization Era (1995 - 2005)
 Globalization
 Internet
 Enterprise Resource Planning
 Learning Organization
 International Quality Standards
 Finite Scheduling
 Supply Chain Management
Pioneers of Industrial Engineering
 Charles Babbage
 Father of Computer
 Dedicated significant energy to automation and
optimization of industrial processes.
 In 1832. He published “On the Economy of
Machinery and Manufacturers”
 Division Labor: Work is divided into sub tasks and
employees are assigned based on their skills and
preferences.
 Frederick Winslow Taylor
 Father of Industrial Engineering and Scientific
Management
 In 1881. He devices scientific management,
developed interest in work, methods and
procedures - an interesting leading to development
of scientific management.
 Worked for several other organizations and
ultimately became one of the first management
consultants.
 In 1911. he published “Principles of Scientific
Management”
 Died in 1915 at the age of 59
“Work consist mainly of simple, not particularly interesting
task. The only way to get people to do them is to incentivize
them properly and monitor them carefully”.
- Frederick Winslow Taylor
Taylor’s Scientific Management Objectives
 Matching employees to right job
 Providing the proper training
 Providing proper work methods and tools
 Establishing legitimate incentives for work to be
accomplished
 Frank and Lillian Gilbreth
 Husband and Wife Engineering team
 They followed the pioneering work in time and
motion studies begun by Frederick Winslow Taylor,
and on the other they developed the study of
workplace psychology.
 (Book & Movie: “Cheaper by the Dozen,”
  book: “Bells on Their Toes”)
 Henry Ford
 In 1903, created Ford Motor Company.
 In 1913, first used moving assembly line to make
Model T.
 Paid workers very well for 1911 ($5/day!)
 Eli Whitney
 In 1798, received government contract to make
10,000 muskets.
 Showed the machine tools can make standardized
parts to exact specifications.
 Musket parts could be used to any musket.
 Henry Laurence Gantt
 Gantt is often seen as a disciple of Taylor and a
promoter of the scientific school of management.
 Most popular legacy to management was the
Gantt Chart.
The Roles & Importance of Industrial Engineering in Industry
The role of the Industrial Engineer is to effectively
and efficiently utilize software technologies, machine tools,
math and scientific concepts, and human resources in order
to solve problems, provide products or services at minimal
cost, and produce on time at the optimum output level to
satisfy customer demands.
 Benefits for the Company
 Industrial Engineering, provides support service for
the workers, supervisors, staff, and management.
Its assistance helps the company to be competitive
in the market place. Through operational analysis,
Industrial Engineering assistance will lead to lower
costs for producing a quality product.
 Benefit for the Workers
 Once the company is more productive than the
competition, demand for its products will increase.
With demand, comes job security for the workers,
and the feeling they are contributing. A product
“wanted by the consumer" can be produced
because of their effort.
 Benefits for the Management
 Identifying where problems are.
 Where is the bottleneck?
 Why aren't work schedules being met?
 What actions are necessary to reduce the
rework?
 How can we decrease scrap losses?
 Recognition of work force requirements.
 Work flow charts, with manning requirements
supplied by Industrial Engineering, will enable
management to schedule properly.
 Calculation and reduction of costs
 Through programs for work simplification,
and work participation, it can effectively
assist in reducing costs.
 Selection of Machines & Equipment
 Providing reports for justifying the selection
of machines and equipment. This will assist
management in making cost effective
decisions in use of its capital.
 Specifying What the Best Method Is
 Work identification and methods engineering
go hand in hand. Industrial Engineering uses
these "tools" to assist management. The
workers, the company and the community
benefit because of this assistance.
Lesson 2: Roles and Responsibilities
of an Industrial Engineer
How to become an Industrial Engineer?
 Must be a graduate of Bachelor’s Degree in Industrial
Engineering (BSIE) . usually a 5-years degree.
Subjects and Curriculum
 Technical Courses
 Mathematics - Advanced Algebra, Plane and
Spherical trigonometry, integral calculus,
probability and statistics.
 Natural/Physical Sciences - General Chemistry and
Physics
 Basic Engineering Sciences - Engineering Drawing,
Computer Aided Drafting, Dynamics of Rigid Bodies,
Engineering Empowerment, Safety Management.
 Allied Courses - Financial Accounting,
Thermodynamics, Elementary Electrical
Engineering.
Professional Courses
 Core Subjects - Advanced Mathematics for Industrial
Engineering, Operations Research, Industrial Quality
Control, Project Feasibility, Facilities Programming and
Design, Systems Engineering
 Electives - Industrial Engineering Elective (1 to 4).
Non-Technical Courses
 Social Sciences (1 to 3)
 Humanities (1 to 3)
 Languages (English, FIlipino)
 Mandated Subject (Life and works of Rizal)
 On the Job Training - Students are exposed to an On the
Job Training (OJT) in a duly recognized engineering firm
or a company.
 Research Paper - As a requirement for graduation, an
undergraduate research paper is required.
 Project Feasibility - Students have to complete project
feasibility where they have to contribute and make the
project a reality.
Once you finish all of those Subjects
ENGR. Will be accredited to your name. Gusto mo yun?
GUSTO gusto ko yorn!!
Philippine Institute of Industrial Engineers (PIIE)
 It is a professional society devoted to serving
the needs of industrial and systems engineering
professionals and institutions who value the
industrial engineering practice.
Certified Industrial Engineering Examination (CIE EXAM)
 CIE is a certification exam intended for fresh graduates
of Industrial Engineering as well as those who have
relevant experience.
 Qualifications
 An active PIIE member
 Filipino Citizen
 Graduate of BS Industrial Engineering
 Passed the CIE written exam on IE Core Knowledge
 Passers of this exam are given a certification and a
designation for professional practice.
 Qualification:
 Filipino Citizen
 CIE + masters degree + 2 years experience or CIE +
5 years experience
 Testimonial of Major IE work experience
 Passed PIE Examination
Once you become a CIE Passer and Master’s Graduate
ENGR. Juan A. Masipag , CIE, MSIEM
MSIEM - Masters of Science in Industrial Engineering and
Management.
Career Opportunities of an Industrial
Engineer
 Cost Estimators - Cost Estimators collect and analyze
data in order to estimate the time, money, materials,
and labor required to manufacture a product, construct
a building, or provide a service.
 Industrial Production Manager - Industrial Production
Managers oversee the daily operations of
manufacturing and related plants.
 Logisticians - Logisticians analyze and coordinate an
organization’s supple chain - the system that moves a
product from supplier to consumer.
 Quality Control Inspectors - Quality Control Inspectors
examine products and materials for defects or
deviations from specifications.
 Health and Safety Engineers - Health and Safety
Engineers develop procedures and design systems to
prevent people from getting sick or injured and to keep
property from being damaged.
 Sales Engineer - Is someone who sells complex scientific
and technological products or services to businesses.
They must have extensive knowledge of the product’s
parts and functions and must understand the scientific
processes that make thses products work.
 Project Engineer - Produces a complete. Accurate,
biddable set of plans for all the structures in a project.
This responsibility should be performed wth the least
possible manpower expenditures.
 Ergonomist - Concerned with the safety and efficiency
of equipment, systems and transportation; uses
scientific information to ensure the health, comfort and
protection of the people while using them.
 Production Engineer - Employed by manufacturers to
work alongside production staff and technicians,
developing, installing, procuring and maintaining
equipment used in the manufacturing process.
 Warehouse Manager - Manages people, processes and
systems, in order to ensure goods are received and
dispatched appropriately and productivity targets are
met.
Week 3-6 Intro to Operations Management
ENGINEERING MANAGEMENT
 Refers to the activity combining “technical
knowledge with the ability to organize and
coordinate worker power, materials, machinery
and money”.
Components of Management
 Planning - Setting goals and deciding how best to
achieve them.
 Organizing - Grouping activities and resource in a logical
fashion.
 Leading - Involves influencing others to engage in the
work behaviors necessary to reach organizational goals.
 Staffing - determines the human resource needs,
recruits, selects, trains and develops human resources
for jobs created by an organization.
 Controlling - Process of ascertaining whether
organizational objectives have been achieved.
Production - Is the creation of goods & services
Operations Management - Is the set of activities that creates
value in the form of goods & services by transforming inputs
into outputs.
Input - raw materials
Output - processed/finished/product of input.
Organizing to Produce Goods &
Services
 To create goods and services, all organizations
perform three functions;
1. Marketing – which generates demand or at
least takes the order for a product or service
2. Production/ Operations – which creates the
product
3. Finance/ Accounting- tracks how well the
organization is doing.
 Why do we need STUDY Operation Management? PRODUCT DESIGN
 process of deciding on the unique characteristics &
 Om is one of the three major functions of any features of the company’s product.
organization and it is integrally related to all other
business function. PROCESS SELECTION
 We want to know how goods and services are produced.  development of the process necessary to produce the
 To understand what operations managers do. designed product
 Costly part of an organization.

10 Major Decisions in OM
1. Design of goods and services
2. Managing Quality
3. Process & Capacity Design
4. Location strategy
5. Layout strategy
6. Human Resource & Job design
7. Supply Chain Management
8. Inventory, material requirements planning and just in time
9. Intermediate and short-term scheduling
10. Maintenance

Goods (Tangible Product)

 Production usually separate from consumption
 Can be invertoried
 Low customer reaction
 Some aspects of quality is measurable
 Product is transportable
Services (Intangible Product)
 Produced and consumed at the same time
 High customer interaction
 Often Unique
 Quality difficult to measure
 Provider, not product is often transportable
PRODUCTIVITY
 Relationship of the volume of goods and services
produced to the physical inputs used in its production.
 Productivity can therefore be measured in terms of the
ratio of output to input of labor, capital, energy,
materials or combination of these.
BENCHMARKING
 The process of studying the practices of companies
considered in “best-in-class” and comparing your
company’s performance against theirs.
TYPES OF BENCHMARKING
 Industry or market benchmarking analysis - seeks to
assess the overall positioning of a company within a
certain market or industry.
 Financial benchmarking in business - This flavor of
competitive benchmarking compares the fiscal
performance and well-being of a company to that of
similar organizations.
 Product benchmarking analysis - Seeks to compare the
performance and/or quality of similar products or
services offered by different organizations.
 Operational benchmarking - Compares the day-to-day
internal business operations of a company to those of
other similar organizations.
 Individual benchmarking in business - seeks to compare
the performance of individual employees to that of
other, similar employees, whether internal or external.

REVERSE ENGINEERING
 The process of disassembling a product to
analyze its design features.
PRODUCT SCREENING
 The company’s product screening team evaluates the
product design according to the needs of the major
business function.
BREAK-EVEN ANALYSIS
 Computes the quantity of goods a company needs to
sell just to cover its costs, or break even, called the
“break-even point”.
DESIGN FOR MANUFACTURE (DFM)
 is a series of guidelines that we should follow to
produce a product easily and profitably.
PRODUCT SIMPLIFICATION
 means reducing the number of parts and features of the
product whenever possible.
PRODUCT STANDARDIZATION
 refers to the use of common and interchangeable parts.
PRODUCT DIVERSIFICATION
 when a new product is added to the product mix of an
organization.

PRODUCT LIFE CYCLE
 A series of stages that products pass through in their
lifetime, characterized by changing product demands
over time.
CONCURRENT ENGINEERING
 An approach that brings together multi function teams
in the early phase of product design in order to
simultaneously design the product and the process.
REMANUFACTURING
 uses components of old products in the production of
new ones.
Technology Decision
 Information Technology (IT) - Technology that enables
storage, processing, and communication of information
within and between firms.
 Enterprise Resource Planning (ERP) - Large software
programs used for planning and coordinating all
resources throughout the entire enterprise.
 Global Positioning System (GPS) - A type of wireless
technology that uses satellite transmission to
communicate exact locations.
 Radio Frequency Identification (RFID) - A wireless
technology that uses memory chips equipped with radio
antennas attached to objects used to transmit streams
of data.
 Automation - Using machinery to perform work without
human operators.
 Automated Guided Vehicle (AGV) - A small battery-
driven truck that moves materials from one location to
the other.
 Automated Storage & Retrieval Systems (AS & RS) -
which are basically automated warehouses.
 Flexible Manufacturing Systems (FMS) - is a type of
automation system that combines the flexibility of
intermittent operations with the efficiency of repetitive
operations.
 Robotics - are excellent for physically dangerous jobs
such as working with radioactive or toxic materials.
 Computer Numeric Control (CNC) - A machine
controlled by a computer that can perform a variety of
tasks.
 Computer Aided Design (CAD) - A system that uses
computer graphics to design new products.
 Computer-Integrated Manufacturing (CIM) - term used
to describe the integration of product design, process
planning, and manufacturing using an integrated
computer system.
Lesson 7-8: Project Planning and
Scheduling
Project Planning
 It includes goal-setting, defining the project, and team
organization.
PERT/CPM
 Both Developed in the 1950’s
 Used to help managers to schedule, monitor and control
large and complex projects.
Project Evaluation and Review Technique (PERT)
 In 1958,developed by Booz, Hamilton and Allen
 Used for projects where time required to complete
various activities are not known.
 PERT is used to find the minimum time needed to
complete the total project, identify projects on critical
path that must be completed on time to avoid the
increase in duration of the project.

Critical Path Method (CPM)

 In 1957, developed by J.E Kelly and M.R Walker
 Uses only one time factor per activity that enables
engineers/managers to schedule, monitor and control
large project.
 It is used to identify the ES, EF,LS and LF in a PERT
network, identify critical path activities.

Determining the Project Schedule

 Perform a Critical Path Analysis
 The critical path is the longest path through the
network
 The critical path is the shortest time in which the
project can be completed
 Any delay in critical path activities delays the project
 Critical path activities have no slack time

Example:

Determining the Critical Path:

Earliest Start (ES)
 earliest time at which an activity can start, assuming all
predecessors have been completed.
Earliest Finish (EF)
 earliest time at which an activity can start, assuming all
predecessors have been completed.
Latest Start (LS) Formula:
 latest time at which an activity can start so as to not SLACK = LS – ES
delay the completion time of the entire project, without
lengthening the minimum project duration. Or
Latest Finish (LF)
 latest time by which an activity has to finish so as to not Slack = LF - EF
delay the completion time of the entire project, without
lengthening the minimum project duration.

FORWARD PASS >> >> >> THREE TIME ESTIMATES IN PERT

Earliest Start Rule:
 If an activity has only a single immediate predecessor,
its ES equals the EF of the immediate predecessor.
 If an activity has multiple immediate predecessors, its ES
is the maximum of all EF values.
• Optimistic Time (a) – time an activity will take
if everything goes as planned.
• Pessimistic Time (b) – time an activity will
take assuming very unfavorable conditions

ES = Max (EF of all immediate predecessors • Most likely Time (m) – most realistic estimate
of the time required to complete an activity.
Earliest Finish Rule:
EF = ES + ACTIVITY TIME

Calculating the SLACK TIME and Identify Critical Paths

• SLACK – is the length of time an activity can

be delayed without delaying the entire project.
CRASHING

 Shortening activity time in a network to reduce time on

the critical path so total completion time is reduced.

GOOD LUCK ! ^_^