Industrial Engineering and

Management
Objectives of Industrial
Engineering
Plant Design and Location Facility Layout
Plant Design and Location Production planning and Control
Types of industrial organizations
Industrial organization structure is the type of business structure that
firms employ to organize their operations. The main types of industrial
organization are:
1. Partnership Organization - Formed by two or more people who
work together for profit-making or profit-sharing.
2. Sole Proprietorship - owned and controlled only by one person and
not incorporated and organized under civil law and not subject to
company law or other legal entity law.
3. Corporate Organization - Formed by a group of individuals who
combine their financial resources to buy a company with the goal of
profit maximization.
Organizations Requirements:
Purpose of Industrial Management Authority, Responsibility, Accountability
Authority pattern in organization
• Centralized:
Decision at top
objective of organization
Easy coordination

• Decentralized
Decision at lower level
Reduces the no. of managers
Reduces the overloading of information
Motivated and accountable
 Organizational Structure: Types
• Flat/Horizontal Structure:
Few layers
Accountable and Motivated
Authorized to deal situations

• Tall/Vertical Structure:
High No. of layers
Distorted information from
top to down
Low motivation
Low coordination
Organizational Structure: Roles

• Direct Coordination: People direct interact with other people. Small

organization

• Liaison Coordination: Manager of one division interact with other

manager

• Team Coordination: Group of people work together to resolve the

problems
 Typical Organizational Structure
Stock Holder

Board of Directors

VP/GMs

Sales. Legal. Finance. Manufacturing. R&D. Engineering. HR

Product Life Cycle
Mixed Strategy
• Moderate volume and variety
• Design change is fast
• Cars, Mobiles, Computers
• Sensitive to design change
• Moderate cost and availability