ME 404

Industrial Engineering
Module 1
Mr. Santhu Varghese Thomas
Asst. Professor, Mechanical Department
Mangalam College of Engineering
Course Objectives:

▪ To impart theoretical knowledge about various tools and techniques

of Industrial Engineering.
▪ To create awareness about various safety procedures to be followed
in carrying out different types of projects.
▪ To get acquainted with the Inventory management Principles and
Techniques.
▪ To equip with the theoretical knowledge on Quality control practices
and testing methods.
 Expected outcomes:

▪ The students will be able to

i. Know various tools and techniques in industrial Engineering.
ii. Develop work procedure applying the principles of work study.
iii. Apply inventory control techniques in materials management.
iv. Formulate replacement and purchase decisions and arrive at conclusions
 Books

▪ M Mahajan, Industrial Engineering & Production Management,

Dhanpat Rai, 2005
▪ O. P. Khanna, Industrial Engineering and Management, Dhanpat Rai,
2010
▪ B. Kumar, Industrial Engineering Khanna Publishers,2013
▪ Martand Telsang, Industrial Engineering & Production Management, S. Chand, 2006
▪ Syllabus oriented text: Rajesh Kumar R, Industrial Engineering,
Jyothis Publishers.
Syllabus
Module I

▪ Introduction to Industrial Engineering

– Evolution of modern Concepts in Industrial Engineering
– Functions of Industrial Engineering
– Field of application of Industrial Engineering

▪ Product Development and research

– Design function
– Objectives of design

▪ Development of designs
– Prototype
– production and testing

▪ Manufacturing vs purchase
– Economic aspects
– C-V-P analysis – simple problems

▪ Human factors in design

▪ Value Engineering
Introduction

▪ American Institute of Industrial Engineers (AIIE) has defined

▪ Industrial Engineering as
– 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.
▪ The prime objective of industrial engineering is to increase the productivity by
eliminating waste and non-value adding (unproductive) operations and
improving the effective utilization of resources.
 Evolution of modern concepts in
industrial engineering

▪ The industrial revolution in the eighteenth century (England, the mid-eighteenth

century)
▪ Frederick Taylor, Frank Gilbreth and Harrington Emerson where the major
contributors to the industrial engineering discipline (late nineteenth century, US).
– Fredrick Winslow Taylor is most often considered as the father of industrial engineering.
– organization of work by management
– worker selection
– Training
– additional compensation for those individuals that could meet the standard as developed by the
company through his methods.
– Taylor is also considered to be the father of scientific management because he was a pioneer in
improving methods and establishing the incentive system for workers with the benefit of higher
productivity to the owners and higher wages for the workers.
▪ Frank Bunker Gilbreth and his wife Dr.Lillian M.Gilbreth worked on understanding
fatigue, skill development, motion studies, as well as time studies.
▪ Harrington Emerson, an American Engineer was the first to use the term
'efficiency engineering' to describe his brand of consulting. He called his
philosophy 'The gospel of efficiency'. According to him, "efficiency means that the
right thing is done in the right manner, by the right man, at the right place, in the
right time".
▪ Through meetings of the American Society of Mechanical Engineers (ASME), he
became personally acquainted with the pioneering work of Frederick W. Taylor and
worked on the methodology for standardizing work and remunerating workers in
accordance with productivity.
▪ The modern industrial engineering techniques had their origin during
the period between 1940 and 1946.
– Value engineering,
– Operations research,
– Ergonomics or human engineering,
– System analysis,
– Advances in IT and computer packages,
– Mathematical and statistical tools,
 Applications of industrial engineering

▪ The main resources of an organization are men, money, materials, equipment and machinery.
▪ Industrial engineer carries out analysis in order to achieve the objectives (to increase productivity
or profits, etc.) and policies of the organization.
▪ Industrial engineer is engaged in the design of a system and his function is primarily that of
management.
▪ Area of operation of industrial engineers in a manufacturing enterprise includes fields such as
– method study
– work measurement
– incentives
– plant layout.

▪ It is a means of raising the productivity of a plant by the reorganization of work, a method which
normally involves little or no capital expenditure on facilities and equipments.
 Functions of an industrial engineer

1. Methods study –
– Method study is also known as method analysis.
– Method study is a systematic technique of observing, recording with certain scientific tools and
critically evaluating and examining the present methods of doing a job or task, so as to develop
improved, simpler, cheaper and more effective methods.
– Method study is aimed at developing the simplest work methods and establishing the one best
way of doing work (standard method).
– The scope of method study includes all types of work processes, working environment, tools and
equipment to perform the job.

2. Performing a motion study –

– Every job can be broken down into its' fundamental work elements.
– Gilbreth found that there are seventeen of these motions.
– The time to complete each motion does not change.
– Jobs can be studied visually or through the assistance of a camera for micro-motion studies.
3. Performing a time study –
– This function is also called as work measurement.
– Without a standard, the company will find it hard to estimate lead-time on their products.
– Times vary greatly when the employee does not know what the expectation of company is.
– In order to correct this problem, the IE develop a fair standard expectation for each operation.
– A good time study will take into account the unavoidable delays, fatigue, and to an extent, outside interferences.
– Time for wasteful steps, such as searching for tools, will not be included in the final standard.
– The expectation is that the workplace will be designed to accommodate the work and will be free from this type
of waste.

4. Production planning and control –

– For a company with different equipment used to manufacture a variety of products, it is necessary that the
equipment is not idle too much of the time or that there are no delays in shipments.
– A critical balance must be maintained to utilize resources such as labor, material and equipment to their
optimum potential.
– The related functions involve capacity planning, production scheduling and shop loading, inventory control,
material requirement planning, material movement, etc.
5. Human resources –
– Realizing that the most important resource in a workplace is the worker, it is
necessary that he be treated on an equitable basis.
– Human resource is that branch of industrial engineering that deals with the labor
requirements.
– The activities includes job description and classification, wage and salary survey
and payment structure, incentive plans and payment, manpower analysis, etc.

6. Establishing the performance standards –

– Establishing the performance standards as per the standard methods.
– Developing performance standards tell the workers how well they have to do
the work.
7. Statistical Quality Control (SQC) –
– The quality of a product or a service given is always a major factor for any buyer conscious of spending
his money wisely.
– A supplier who is concerned with the survival and growth of his business is also equally interested in
achieving and maintaining high quality standards.
– One method of achieving this can be by a hundred percent inspection on the products manufactured.
– However, this is not practical in most instances, and hence other innovative techniques are essential.
– Realizing the probability of rejection is a chance event in a controlled environment, industrial
engineering has resorted to mathematical and statistical methods to achieve a high degree of quality in
production.
– The activities in this group include process control, correlation and regression analysis, control charts,
testing of hypothesis, etc. In general, this field requires extensive use of mathematics, and statistics.

8. Quality – The quality of the material can affect all parts of the system. Poor quality
material often introduces excessive amounts of rework into each of the processes. A
typical job for an IE would be to work with the quality department to set up a Quality
Management system (QMS).
9. Design of inventory control – Since inventory is capital that cannot be
converted until finished and purchased by a consumer, it should be kept
to a minimal. Industrial engineers designs inventory and determine the
economic lot size for production.
10. Developing standard training programmes – This function involves
developing standard training programmes for various levels in the
organization.
11. Facilities planning and materials handling – Sound selection of site and
developing an optimal layout is necessary for the smooth flow of work. It
is the duty of the industrial engineer to systematically plan and execute
an optimal layout of machineries so that materials movement can be
carried out eliminating unnecessary movements.
12. Value analysis – Value analysis ensures that no unnecessary costs
are built into the product and it tries to provide the required
functions at the minimum cost. Hence helps to enhance the worth
of the product.
13. Job evaluation – A technique used to determine the relative worth
of jobs of the organization to aid in matching jobs and personnel
and to evolve sound wage policy.
Roles of an industrial engineer

▪ The different roles an industrial engineer may need to take on are : –

– Adviser/Consultant for interpretation of data, review, etc.

– Analyst to analyze a problem to obtain insights.
– Liaison agent to interface between company and customer/user.
– Motivator to provide stimulus/skills.
– Decision-maker to select a preference from alternatives.
– Designer/Planner to produce solutions, specifications.
– Expert to provide high level knowledge, experience, skills
– Coordinator/Integrator to achieve the defined goals.
– Project Manager to operate, supervise, evaluate projects.
– Trainer/Educator in the skills and knowledge of industrial engineering.
– Negotiator/Conflict manager for proper workplace relations.
Typical focus areas of industrial engineering

▪ The typical focus areas of industrial engineering include the following

fields.

– Project management -manufacturing, production and distribution

– Productivity, methods and process engineering
– Quality measurement and improvement
– Ergonomics/Human factors
– Financial engineering
 Production

Input Transformation Output

Process

Labour Product planning

Material Process planning
Equipment Goods and
Production control
Capital services
Maintenance
Management

Inventory levels
Sales volume
Labour efficiency

Feedback
 Product design process
▪ Conception –During this stage, the needs of the target market are identified, competitive products are reviewed,
Conception draft product specifications are defined, a product concept is selected, an economic analysis is done, and the
development project is outlined. As a result of the product conception process, certain specified information such as
technical requirements, product performance, appearance requirements, etc., will be made available.
▪ Acceptance – At this stage the new product viability is investigated and draft specifications are evaluated. The draft
Acceptance specifications will have to satisfy requirements such as customer requirements, manufacturing requirements for
products etc. The draft specification is then accepted, rejected or modified based on the resources available in the
organization and feasibility studies.
▪ Execution – In this stage, a working model (a prototype) as per the accepted specification is made. It is often
Execution impossible to take into account all details during the preliminary design stage. Therefore, only after the completion
of a working prototype will provide additional information related to product design parameters. Also, testing of the
model is carried out to evaluate the performance of the product developed.
▪ Translation – In this stage, all relevant information such as material specifications, drawings, manufacturing data
and tooling requirements are finalized and final product design is made and approved for the actual manufacturing
Translation process.
▪ Pre-production – The main objective of this stage is to summarize all details of the manufacturing process, and
particularly in the case of large-scale production requirements, to carry out a pilot test conducted under real
Pre- production conditions. The new product should be tested to customer specifications with equipment that will be
Production used in the actual manufacturing process. This test should be undertaken prior to the start of the main production
operation in order to identify any further faults or problems. As a result of the pre-production testing procedure, all
products, materials, equipment, and labour specifications should be summarized and finally approved prior to
commencement of the actual manufacturing process.
Factors affecting product design

Customer
requirements

Functional
Aesthetic Aspect Aspects

PRODUCT
DESIGN

Manufacturability Operational
Aspects

Reliability
▪ Marketing aspects – Customer requirements have great influence over the way a product is designed and developed. Organization
has to be in close touch with the target market to identify the requirement and to estimate the demand of the product. As a product
is designed, it is normal for potential customers to be questioned about the type of product or design that they prefer. For example,
when designing a mobile phone, changes in design should be made according to the likes and dislikes of targeted customers.
▪ Functional aspects –The number of functions a product has to perform will inevitably affect its design. The functional objectives are
to be fixed with respect to the product such as the various functions and cost considerations.
▪ Operational aspects – Once the functions expected to be serviced by the product are established then, the operational aspects of
the products are to be determined. The product is not only expected to perform its functions satisfactorily, but it should be easy to
handle and operate at the customers end. The product is used at different operational conditions and the customers vary with
respect to skills and knowledge.
▪ Durability and dependability –Durability refers to the duration of the active life of the product under given working conditions.
Quality of the product is directly proportional to the quality of inputs (materials, men, etc.) and the process of manufacture. To be in
competition, the organizations have to give better quality products at reasonable price. Due consideration should be given to
various aspects of quality measures, safety and maintenance aspects.
▪ Aesthetic aspect – Aesthetic aspect refers to the ‘external look good’ aspect of the product and is concerned with moulding the
final shape around the basic skeleton. Aesthetic aspects help the selling function of the product by attracting the customers and
creating the first impression about the product. Styling becomes an important factor in product design in situations such as changes
in fashion and taste, evolution of form and introduction of new ideas to quickly outdate the old ones.
Essential requirements of a good product design

Function
Compact Repairability

REQUIREMENTS
OF GOOD Reliability
Simplicity PRODUCT
DESIGN

Productibility Aesthetics
Durability
▪ Function – The product must be designed in such a way that it optimally performs the main task or function for which it is
purchased by a buyer. For e.g., function of an AC is to provide cooling of a room. So, AC must be designed in such a way that
it can cool a room as fast as technologically possible.

▪ Repairability – The product must be designed in such a way that it can be easily repaired whenever necessary during a
malfunction. The product repairs must be done quickly that too at a low repair cost.

▪ Reliability – Reliability means dependability on a product. Consumers prefer to purchase and use often those products which
perform their main function or task optimally for a longer period without any annoying malfunctions, breakdowns or
failures. In short, a product must perform quite well and give trouble-free service for a decent amount of time.

▪ Manufacturability – The product must be designed in such a way that it can be produced in large quantities with ease at a
minimum production cost.

▪ Aesthetics – Aesthetics refers to, how the product looks, feels, sounds, tastes or smells. That is, the product must look, feel,
sound, taste or smell very good. It must be attractive, compact and convenient to use. Its packaging must also be made
graphically appealing and colorful.

▪ Durability – Durability refers to the life of a product. A durable product performs flawlessly for a longer period. It is a sign of
a good-quality product.

▪ Simplicity –The simpler a design, the easier, it is to produce and use (handle). Simple products are also economical and
reliable.

▪ Compact – The product must be small; it must occupy less space, and must have lower weight. In other words, it must be
very compact.
Production procedure

▪ Sales forecast phase – The manufacturing cycle is triggered by the forecast of customer
Sales demand and current product availability in the manufacturer’s finished- goods warehouse.
Forecast Based upon the analysis of the data, sales department prepares a sales forecast.
phase ▪ Production planning activity phase – The production budget is prepared by the finance
department in consultation with production department. The engineering department is
instructed to prepare drawing, specifications or to check and modify the existing ones if
Production needed. The management reviews the sales forecast and the budget to take decision
planning regarding quantities to be produced. Once the production quantities for each product are
phase finalized, the manufacturer must decide on the precise production sequence. Production
planning activity begins as soon as the technical information is received from the
engineering department. The production planning activity results in a schedule of
production. The inventory levels are checked in order to initiate procurement activity of
Production materials. Make or buy decision is then made.
Phase
▪ Production phase – During the manufacturing phase of the process, the manufacturer
produces to the production schedule. The manner in which this activity is accomplished
varies greatly across companies.
Dispaching
▪ Dispatching phase – When the product is completely made, then finished product is shipped
Phase
to the customer, retailer, distributor, or finished-product warehouse after inspection.
 Productivity

▪  
▪ Productivity refers to the physical relation between the quality produced (output) and
the quantity of resource used in the course of production (input).
▪ Output implies production while input means land, labour, capital, management, etc.
▪ Productivity is an overall measure of the ability to produce a good or service. More
specifically, productivity is the measure of how specified resources are managed to
accomplish timely objectives as stated in terms of quantity and quality.
▪ Productivity may also be defined as an index that measures output (goods and services)
relative to the input (labor, materials, energy, etc., used to produce the output).
▪ Thus, productivity can be defined as the ratio between output and input.
 Productivity measurement
Objectives
▪ To study the performance of
the system.
▪ To compare with different
systems.
▪ To compare actual productivity
with desired productivity.
Benefits
▪ Higher profit
▪ Employee’s welfare -profit can be used to provide better facilities and working
conditions to the employees
▪ Better return –better dividend (share of profit) to the shareholders
▪ Nice relations –Good working conditions, facilities and incentives motivate
employees to give their best to the organization.
▪ Customer satisfaction- customers are provided with good-quality products at
low prices.
▪ Good credit rating – Higher productivity results in a good credit rating by
financial institutions.
▪ Goodwill –a good corporate image (goodwill) in the minds of social entities.
This includes, shareholders, government, suppliers, financial institutions,
customers, etc.
▪ Low labour turnover – Higher productivity enables the company to provide
better facilities and working conditions to the employees. Hence, employee
turnover and absenteeism will reduce.
Purchasing

▪ In any industry purchase means buying of equipments, materials,

tools, parts etc., required for the industry.
▪ Purchasing plays a crucial role in the materials management because
it is concerned from input stage up to the consumption in
manufacturing.
▪ Purchasing functions as a monitor, clearing house and a pipe line to
supply materials needed for production.
▪ The purchase department is called upon to purchase the right type of
goods, at the right time, from the right suppliers, and at right prices.
Objectives of purchasing

▪ To avail the materials, suppliers and equipments at the minimum possible

costs
▪ To ensure the continuous flow of production
▪ To increase the asset turnover
▪ Source of supply
▪ To develop an alternative source of supply
▪ To establish and maintain the good relations with the suppliers
▪ To achieve maximum integration with other department of the company
▪ Effective and efficient purchasing system
▪ To train and develop the personnel
▪ Efficient record keeping and management reporting
Functions of purchasing

1. To receive purchase requirements and requisitions from various departments

2. To select the materials to be purchased on priority
3. To select the source of supply
4. To decide the purchasing policy and procedures
5. To prepare specifications and obtain tenders and quotations of materials
6. To purchase the proper quantity at proper time
7. To purchase good quality of materials at cheapest rate
8. To get deliveries at proper place within the prescribed time
9. To check and inspect the materials
10. To make the prompt payments and co-operate
Parameters of purchasing/Factors of
purchasing/ ten ‘R’s

▪ Right price
▪ Right quality
▪ Right time
▪ Right source
▪ Right quantity
▪ Right attitude
▪ Right contracts
▪ Right material
▪ Right transportation
▪ Right place of delivery
 Purchasing procedure
▪ Recognition of the need –
– The initiation of procedure starts with the recognition of the need by the needy section. The demand
is lodged with the purchase department in the prescribed purchase requisition form forwarded by
the authorized person either directly or through the stores department.
▪ The selection of the supplier
– –The information about the supplier is made available from sources such as trade directories,
advertisement in trade journals, direct mailing, suggestions from business associates, trade fair, etc.
1. Need 7. Maintenance Identification of more sources helps in selecting better and economical supplier
6. Payment ▪ Placing the order
Recognition of records – Once the supplier is selected the next step is to place the purchase order. Purchase order is a letter
sent to the supplier asking to supply the said material. Copies of purchase order are prepared by the
purchase section and each copy is separately signed by the purchase officer. Out these copies, one
copy each is sent to store-keeper, supplier, accounts section, inspection department and to the
department placing the requisition and one copy is retained by the purchase department for record.
8. Maintenance ▪
2. Selection of Follow-up of the order –
5. Receiving of Vender – Follow-up procedure should be employed wherever the costs and risks resulting from the delayed
supplier
Relations ▪
deliveries of materials are greater than the cost of follow up procedure.
Receiving and inspection of the materials
– The receiving department receives the materials supplied by the vendor. The quantity are verified
and tallied with the purchase order.. Usually a copy of the receiving slip is sent to the purchase
department.
3. Placing the ▪ Payment of the invoice
4. Follow up – – When the goods are received in satisfactory condition, the invoice is checked before it is approved
order for the payment. The invoice is checked to see that the goods were duly authorized to purchase, they
were properly ordered, they are priced as per the agreed terms, the quantity and quality confirm to
the order, the calculations are arithmetically correct, etc.
▪ Maintenance of the records
– In the industrial firms, most of the purchases are repeat orders and hence the past records serve as a
good guide for the future action.
▪ Maintenance of vendor relations
– Good relations develop mutual trust and confidence in the course of the time which is beneficial to
both the panics.
 Selection of suppliers

▪ Sources of supplier
– This is known as ‘survey stage’.
▪ Specialized trade directories.
▪ Assistance of professional bodies or consultants.
▪ The buyer's guide or purchase hand book.
▪ The manufacturer's or distributor's catalogue.
▪ Advertisements in dailies and trade journals.
▪ Trade fair exhibitions.

▪ Development of approved list of suppliers

– The survey stage highlights the existence of the source. A business inquiry is made with the appropriate supplier. It is known as 'inquiry stage'. In this, a short listing is made out
of the given sources of suppliers in terms of production facilities and capacity, financial standing, product quality, possibility of timely supply, technical competence,
manufacturing efficiency, general business policies followed, standing in the industry, competitive attitude, and interest in buying orders, etc.

▪ Evaluation and selection of the supplier

▪ Cost factors – Price, transportation cost, installation cost if any, tooling and other operations cost, sales tax and excise duty, terms of payment and cash discount are
considered in cost factor.
▪ Delivery – Routing and FOB (Freight On Board) terms are important in determining the point at which the title to the goods passes from vendor to the buyer and the
responsibility for the payment of the payment charges.
▪ Design and specification factors – Specification compliance, specification deviations, specification advantages, important dimensions and weights are considered in line
with the demonstration of sample, experience of other users, after sale services, etc.
▪ Legal factors – Legal factors include warranty, cancellation provision, patent protection, public liability, federal laws and reputation compliance.
▪ Vendor rating
– The evaluation of supplier or vendor rating provides valuable information which help in improving the quality of the decision. In the
vendor rating four basic aspects are considered viz., quality, service, price and delivery.
▪ Categorical plan – Under this method, the members of the buying staff like quality control department, manufacturing department,
etc., are required to assess the performance of each supplier. The rating sheets are provided with the record of the supplier, their
product and the list of factors for the evaluation purposes. This is a very simple and inexpensive method. However, it is not precise. Its
quality heavily depends on the experience and ability of the buyer to judge the situation. As compared to other methods, the degree of
subjective judgment is very high as rating is based on personal judgment and the vague impressions of the buyer. Such ratings are used
for the future guidance.
▪ Weighted-point method – The weighted-point method provides the quantitative data for each factor of evaluation. The weights are
assigned to each factor of evaluation according to the need of the organization, e.g. a company decides the three factors to be
considered-quality, price and timely delivery. It assigns the relative weight to each of these factors as under
– Quality ......... 50 points
– Price ......... 30 points
– Timely delivery ......... 20 points

▪ Quality rating – The quality of the materials is judged on the basis of the degree of acceptance and rejections. For the purpose of
comparison, the percentage degree of acceptance will be calculated in relation to the total lots received. Price rating is done on the basis of
net price charged by the supplier. Timely delivery rating will be done comparing with the average delivery schedule of the supplier.
 Buying techniques / purchasing methods
▪ Market purchasing
– When purchases are made in accordance with the condition of the market, to take advantage of price fluctuations rather
than to meet immediate needs or for a specified future period, the method is known as market purchasing.
– In hand to mouth, no purchase is made until a need arises and buying quantity meets only the current need.
– This method applies basically to meet emergency requirements. The advantage of this purchasing is that there is no
much blockage of capital, less carrying cost and less wastage.

▪ Contract purchasing
– The required stocks of goods are purchased under contract for a fairly long period with fixed suppliers.
– The buyer can get continuous supply of goods at a fixed price.
– This requires minimum record keeping and storekeeping.
– Limited capital will be locked up at a time.
– However, under contract purchasing, the buyer cannot get the benefit of favorable change in the prices, e.g. when prices
are falling, be cannot get goods cheaper under this method.
– This method is useful when prices are stable, and not liable to wide fluctuations.
▪ Forward purchasing
– Purchase in advance for a specified future period, particularly when an organized physical as well as future markets for
commodities.

▪ Group purchase
– A buying group of stores, institutions or even manufacturers may make joint purchases at very reasonable prices.

▪ Purchase through commission agents

– When supplies are procured from foreign manufacturers or from a distant market or from organized wholesale markets,
there are two alternatives.
– There can be own permanent buying office to make all purchases in a distant market or can send their own buyers to such
markets for securing supplies. This method is very costly.
– There is another alternative, i.e., to appoint commission agents or middlemen who possess expert knowledge and local
contacts in that market.

▪ Speculative purchasing
– Speculative purchasing is buying in excess of needs. Speculative purchasing is done purely from the point of view of taking
advantage of a rise in price of the commodity.
– The intention of speculative purchasing is not to buy for the internal consumption, but to resell the commodity at a later date
when the prices have gone up and to make profit.
 Ergonomics

• Ergonomics is derived from two Greek words, ergon, meaning work and enomos, meaning laws.
• It is the study of the effects of work system on workers and it aims at fitting the work to the men to increase their efficiency, comfort and
satisfaction.
• So it is the study of the man in relation to his work.
• In USA and other countries it is called by the name ‘human engineering’ or ‘human factors engineering’.
• Ergonomics is concerned with designing and improving the workplace, workstation, tools, equipment, job design, psychological
environment and procedures of work in order to limit fatigue discomfort and injuries, while efficiently achieving personal and
organizational goals.
• Ergonomics is aimed at improving the design of jobs and workstations that have unsafe qualities or have caused injury.
• The various disciplines that have influence on human factors are:-

1.Engineering : Design of work system suitable to worker.

2.Physiology : Study of man and his working environment.
3.Anatomy : Study of body dimensions and relations for work design.
4.Psychology : Study of adaptive behavior and skills of people.
5.Industrial hygiene : Occupational hazards and workers health.
Objectives of human engineering

▪ Human engineering (ergonomics) has two broader objectives.

– To enhance the efficiency and effectiveness with which the activities (work) is
carried out so as to increase the convenience of use, reduced errors and increase
in productivity.
– To enhance certain desirable human values including safety reduced stress and
fatigue and improved quality of life.

▪ Thus, in general the scope and objective of ergonomics is 'designing

for human use and optimizing working and living conditions'.
 Man-machine system

▪ A system is composed of human, machines and other things that work together (or interact)
to accomplish a goal which these components could not produce independently.
▪ The man-machine system is a combination of one or more human beings and one or
machine interacting to bring about, from given inputs, some desired output.
▪ The three broad categories of systems are as follows.
– Manual system – A manual system consists of hand tools and other aids which are coupled by human
operator who controls the operation. Operator uses his own physical energy as the power source.
– Mechanical system – These systems are semi-automatic in nature which consists of integrated physical part
such as machine tools. Power is typically provided machine and operator function is mainly to control by the
use of controlling devices.
– Automated system – When the system is fully operated, it performs all operational functions without
human intervention. Automated system require human to install, programme, re-porgramme and maintain
the system.
▪ Man machine system is a closed loop system.
▪ The man will receive certain information from
the machine either from dials, displays, etc.,
designed for that purpose or by observation of
machine itself.
▪ He will process this information and make
decisions on what action to take and manipulate
controls or attend machine in some other way so
as to affect its behavior in the required manner.
▪ Environmental factors will have an influence on
the working of the system.
 Aspects of man- machine system
▪ Various elements of man-machine control loop are discussed
below.

▪ Display element – Displays are necessary extensions to

man’s senses and provide information needed by the
operators in making decisions and in effecting control
responses.

▪ Decision element – The information from the display

▪ Control communication channel – A control is any device which
element is passed on to the nervous system of the operator
regulates the action of a machine. Typical control device include
which acts as the decision element. The information so
obtained is processed by the nervous system and arrive at a wheels, levers, pedals, control knobs, push buttons, etc.
decision in relation to the required performance.
– The contact between the operator and the machine takes place at two
channel only, i.e., display communication channel and control
▪ Decision communication channel – The decision made by
communication channel.
the nervous system is communicated to mechanical leverage – A poor design of display and control may cause an error in the system.
system of the human bone and muscular system which Hence, the displays and controls must be designed ergonomically.
makes the decision communication channel.
Workplace design

▪ The ideal design of any work place should begin with operator in mind.
▪ The design should ensure that the operator will have adequate and comfortable posture that he can
see what he must see and he can operate his control in effective manner.
▪ Dimensions of the working surface – Dimensions of the working surface should be designed in such
a way that the operator can access the tool/job without exerting much effort.
▪ Dimensions of the working envelop – Operator not only performs the jobs in horizontal places, but
also is done above and below the horizontal plane. To determine the location of where controls are to
be placed, it is necessary to visualize the complex three dimensional envelop of the space
surrounding the operator.
▪ Workplace height – The correct working height depends on the nature of the task being done. Many
manual tasks are performed when the work is at elbow height. If the job requires close observation, it
will be necessary to raise the work above the elbow height and bring it closer to the eye.
▪ Selection of chairs – Many production workers spend entire day sitting at a workplace. The chair they
are sitting along with the foot rest is one of the important elements of work place design.
 Value engineering & Value analysis

▪ Value Engineering (VE) is the process of improving the value of a product at every stage of the product life
cycle.
▪ A product or service is generally considered to have good value if it has the appropriate performance and
cost.
▪ The definition given by the Society of American Value Engineers (SAVE) is:-
▪ Value engineering is a creative approach to ensure that functions of a product or service are provided at
minimum overall cost without sacrificing quality and reliability.
▪ “Value analysis is the systematic application of recognized techniques which identify the function of a
product or service, establish a monetary value for the function, and provide the necessary function reliably at
the lowest overall cost”.
▪ Principle behind value engineering is that it is a functionally oriented approach for improving product value
by relating various elements of product worth to their corresponding elements of cost.
▪ Value engineering is applicable to all areas of economic activity; products, services, systems and procedures
in production, operation, purchase, design, packing, material handling and distribution departments.
Types of values

▪ Cost value – Cost value is the total cost of material, labour and other elements of cost that have to be
incurred to produce an item or to provide a service. It gives the basic worth of the product or service.
▪ Use value – It is also known as the function value. The use value is equal to the value of the functions,
performed. Therefore, it is the price paid by the buyer (buyer's view) or the cost incurred by the
manufacturer (manufacturer's view) in order to ensure that the product performs its intended
functions efficiently.
▪ Esteem value – It involves the qualities and appearance of a product (like a TV set) which attract
people and create a desire in them to possess the product. Therefore, esteem value is the price paid by
the buyer or the cost incurred by the manufacturer beyond the use value.
▪ Exchange value – It is the measure of all the properties, qualities and features of the product which
make the product possible of being traded for another product or for money. Exchange value refers to
the extent that the additional amount paid guarantees the resale or exchange at any point of time.
Example of this is the purchase of a particular brand of scooter by paying 3 to 4 thousand rupees more
than the competitors brand as its gives a feeling that it can be sold at a reasonable price when needed.
Objectives of value engineering
▪ The main objective of value
engineering is not just cost reduction,
but to improve its value by reducing
cost.
▪ Value analysis also considers time – a
product may be of value if it is
available at a certain point of time.
▪ Save money or increase profit.
▪ Ensure standardization.
▪ Use cheaper and better materials.
Application of value engineering
▪ Value engineering should be applied in case of
occurrence of any of the following.
– Introduction of new products.
– Adverse rate of return on investment.
– Reduction in sales.
– Increase of cost of production.
– Price reduction by competitors.
– Consumer complaints on product
performance.
– Increase in cost of inputs.
Methods of increasing value of a
function

▪ Decrease the cost while ensuring the same level of performance.

▪ Enhance the performance at the same cost.
▪ Decrease the cost and increase the performance
▪ Increase both performance and cost ensuring that performance
increases more than the increment in the cost.
 Advantages of value engineering

▪ VE results in improved quality of the product.

▪ VE promotes standardization leading to reduction in cost of production.
▪ Simplification of the product is attempted in value analysis to obtain cost reduction.
▪ Value engineering aims at meeting customers’ requirements thereby enhancing the value of the product.
▪ When full value is ensured at reduced cost, it improves the profit margin as well as sales volume thereby
increasing profitability.
▪ Spread of value engineering techniques and activities improves cost consciousness, quality awareness and
problem-solving culture of the organization.
▪ Cost reduction by eliminating functions that do not supply specific advantages to satisfy customer
requirements/needs.
▪ Prevents over design of components.
Value analysis

▪ Value analysis is an approach to improving the

value of a product or process by understanding its
constituent components and their associated costs.
▪ It then seeks to find improvements to the
components by either reducing their cost or
increasing the value of the functions.
▪ Function is defined as the purpose for which a
material, a part, a product or a service is required.
▪ Once the purpose of the product is identified, it
becomes easier to suggest alternative for achieving
the same purpose.
▪ The fundamental principle of value analysis is this
to analyze the functional and other features and
ensure that they are acquired with the lowest
possible cost.
 Difference between value engineering and
value analysis
SL.No Value engineering Value analysis
Value engineering is applied to the
Value analysis is applied to the existing
1 product at the design stage. So it is a
product. So it is a remedial process.
preventive process
▪ Value engineering Ensures prevention of unnecessary Ensures elimination of unnecessary
2
and value analysis cost. cost.
has the same It requires specific technical It is worked out mostly with the help of
3
knowledge. knowledge and experience.
meaning (to reduce An existing product unites all the
unnecessary cost), different managers in a business, each
It is always done by a specific product
though there is 4
design engineer’s team.
with an opinion concerning the ability
difference between to convert the design into a ‘saleable’
product.
the two. The changes made by value
It may change the present stage of the
5 engineering are executed at the initial
product or operation.
stages only