MPMEC12

INDUSTRAL ENGINEERING AND

MANAGEMENT

Dr. ANIRUDDHA VINAYAK MULEY

PhD- (Composite materials) IIT Delhi
Associate Professor MPAE/ME
Industrial engineering is a branch of
engineering management concerned with
how to make or do things better, crossing a
range of disciplines associated with
manufacturing industrial or consumer
products. This may involve increasing
efficiency, reducing production costs,
improving quality control, ensuring the
health and safety of employees, protecting
the environment or complying with
government regulations.
1)Industrial engineers work to reduce any waste of
time, money, materials, energy or other commodities
by streamlining procedures and processes.
2)This is achieved through the application of specialist
knowledge and skills to specify, predict and evaluate
results from processes and systems.
3)The results of this allow for new processes and
systems to be produced, with business administration
activities overlapping with areas such as production
and manufacturing engineering, operations research,
systems and supply chain engineering, management
science and engineering, safety engineering,
ergonomic and logistics engineering and more
depending on the needs of the user.
 History of Industrial Engineering
1)The roots of industrial engineering can be traced back to the
beginning of the Industrial Revolution in the late 18th Century. As
traditional manual operations began to be mechanized through
inventions such as the spinning jenny, the flying shuttle and the
steam engine, so it became possible to manufacture on a larger
scale from central locations. As factories and mills began to spring
up across Britain, the notion of an industrialized production system
began to form.
2)Adam Smith’s influential ‘The Wealth of Nations’ introduced the
concepts of the Division of Labor and the ‘Invisible Hand’ of
capitalism, promoting the idea of a factory system before James
Watt and Matthew Boulton created the world’s first integrated
machine manufacturing facility. This included ideas of waste
reduction, cost control and increased productivity as well as skills
training for employees.
3)Charles Babbage’s travels to factories across Britain and the
United States in the early part of the 19th Century extended these
ideas, leading to the publication of his book, ‘On the Economy of
Machinery and Manufacturers.’ The book investigated basic
industrial engineering concepts such as how long it takes to a task
and whether it can be subdivided into smaller repetitive tasks to
create a faster overall process.
4)Other early innovations included the creation of the idea of
interchangeable parts by Eli Whitney and Simeon North, who
manufactured firearms for the US Government. They found that,
by mass-producing parts that could be used in any finished
product, it was possible to save costs by reducing the need for
specialized workers.
4)Despite these early advances, the industrial engineering discipline
began with the introduction of scientific management and time-and-
motion study by Frederick Taylor (1865-1915). His books, ‘Shop
Management’ and ‘The Principles of Scientific Management,’ were
published in the early 20th Century. They introduced several methods
for improving efficiencies, including the development of working
standards and production time reductions based on the scientific
method, to allow for high levels of predictability and precision in
manual tasks.  
5)Frank Gilbreth and his wife Lillian pioneered what would later
become ergonomics when they categorized human motion into 18
basic elements named ‘therbligs.’ These therbligs broke movements
down into units, allowing even the movements of workers to be
optimized to save time. They also allowed for jobs to be designed
based on movements to ascertain how long it should take to
perform.
5)Henry Laurence Gantt introduced the Gantt chart in 1912 to outline
the actions and relationship within an organization and Henry Ford
managed to cut the production time for a car from 700 hours to just
1.5 hours with the use of assembly lines in 1913. Ford also pioneered
‘capitalist welfare,’ whereby financial incentives were given to
employees for increased productivity.
6)The 1940s saw the development of the concept of Total Quality
Management (TQM), which gained momentum following the end
of World War II. TQM emphasises the importance of quality in
products and processes through every phase of an operation and
has become essential to industrial engineering. Six Sigma and the
ISO 9000 quality standard have since supplanted the concepts
created by TQM.
7)The next decades saw further advances in industrial engineering
methods, including the development of material requirements
planning. In Japan, theories such as Kaizen and Kanban emerged,
improving quality, delivery schedules, and flexibility in the
workplace. These concepts spread to the West through
continuous improvement programmes as industry became more
globalised.

8)In 1985, Israeli scientist, Eliyahu M. Goldratt developed his

Theory of Constraints, which sought to improve production
bottlenecks until they no longer existed. At the same time supply
chain management and customer-oriented business process
design came to the fore.
 Why is Industrial Engineering Important?

1)Industrial engineering is important to both producers and end-

users of a product. Industrial engineers improve processes and
designs to make things more efficient.
2)This is good for business as it saves time and money, raw
resources, energy and manpower. However, industrial engineering
is not all about profit margins as it also ensures the safety and
quality of a product or process, which is good for both employees
and end users.
3)Analyzing, designing, predicting and evaluating processes helps
remove roadblocks and creates higher quality and more efficient
processes and devices.
4)An industrial engineer will not only have made sure the device
you are reading this on was made in the most cost-effective manner
(making it cheaper for you to buy), but also makes sure that it is
safe and won’t just burst into flames while you are using it!
 Functions of an Industrial Engineer
1)Industrial engineers work across all stages of production and
processing. This may involve designing a product or process from
the beginning or adapting and upgrading, expanding or
reconfiguring an existing process or procedure.
2)Involve designing new equipment and writing specifications for
equipment bought from an outside vendor to ensure it meets
those requirements. An industrial engineer may be required to
repurpose existing equipment or facilities, design new processes or
tools and procedures.
3)To achieve these tasks, industrial engineers need a basic working
knowledge of various areas of engineering, work processes, tools,
equipment and materials in order to design systems and processes
that meet cost, quality, safety and environmental requirements.
4)Industrial engineers may use computer aided design (CAD)
systems to help design equipment or facilities and computer
modelling to simulate processes and supply chains to improve
efficiencies and reduce costs.
5)Industrial engineers are involved in activities including
production and operations planning, production and operations
management, materials handling, and logistics and operations.

6)Industrial engineers work in a range of different environments,

from offices to the settings they are tasked with improving. This
could include watching how a process works in a factory or
examining workflows in a hospital. This data can then be taken and
examined using a computer for solving problems.
7)The wide range of skills used by industrial engineers means they
can work in both managerial and technical positions. They can be
found in a variety of employment settings, including consulting and
engineering, research and development, service industries,
logistics, manufacturing and trade.
 The variety of roles undertaken by industrial engineers, below,
provides an indication as to how in demand industrial engineering is
today:
•Energy engineering and management
•Facilities engineering
•Financial engineering
•Human factors and safety engineering
•Information systems engineering and management
•Manufacturing engineering
•Behavioural economics
•Methods engineering
•Organization development and change management
•Policy planning
•Production engineering
•Quality and reliability engineering
•Supply chain management and logistics
•Systems engineering, simulation and analysis
•Operations engineering, management and optimization
Industrial engineering was traditionally focused on planning the
layouts of assembly lines and improving worker productivity.
However, this has expanded with lean manufacturing systems so
that industrial engineers now work to eliminate wastes of time,
money, materials, energy, and other resources.
Today’s industrial engineers use computer simulations and
design to map and analyse systems and processes ready for
optimization. The future looks set to see the continued use of such
tools alongside data science and machine learning in order to
further improve processes and procedures.
As the Internet of Things becomes more prevalent, so this is now
becoming an important part of industrial engineering and it seems
that this trend will continue and expand in the future to unite
employees, machines, materials, information and more to create
better practices.
1)The Systems Approach produces efficient and effective
The Systems Approach produces efficient and effective
results because it studies the organization as whole not as a single entity.
This, therefore, help management to come up with the best results
As a result of this, the other advantage of this approach is that it reduces
leakages in the organization that can come as result of concentrating on
one single part. These leakages might be too costly to the organization to
handle.
2. Helps organizations to plan and allocate resources
The other advantage of this approach is that it helps organizations to
plan and allocate resources that will bring results that benefits the entire
organization. It is understood under this system that concentrating on one
sub structure can affect others. Therefore, if the organization is studied as
a whole help to plan the distribution of resources to all departments.
3. Helps to plan and manage the human resources
The Systems Approach also helps to plan and manage the human
resources of the organization. The human resource is a key function of
the organization. In order to know the key human resources needs in the
organization, the systems approach is a key element.
4. Systems approach helps to create synergy
The systems approach also helps to create synergy between the
organization and its sub structures. Synergy is critical in the success of the
organization. It can only be created by studying the interrelations between
sub structures in the organization.
5. Helps to understand the various needs of the organization
Systems Approach also helps to understand the various needs of the
organization. It helps managers to understand what each department needs
and what should be done to achieve it.
6. Understanding behavior tendencies of the organization
This system approach further helps to understand the behavior tendencies of
the organization. It’s important to understand the behavior of organizations so
as to know which areas needs to be worked on in order to achieve success.
7. Helps to strategize the best policies
Further, the systems approach also helps to strategize the best policies that
wounding bring bringing results in the organization. Since, it deals with the
input made by every sub structure of the organization, it achieves the best
results because sometimes the best inputs come from the lower ranks of the
organization by knowing advantages of system approach in management.
8. Helps organizations to plan the best trainings and development
Furthermore, the systems approach helps organizations to plan the best
trainings and development for the organization. It helps the organization to
know the training needs and what should be done to improve that which
has been identified to be lacking in the organization.
9. Helps organizations to plan the health and safety needs
Finally, the systems approach helps organizations to plan the health and
safety needs of the organization. Safety and health are two important
elements which should not be overlooked in the organization. It is said a
health organization is a wealth organization. Therefore, successful
organizations put more emphasis on the safety and health of its members.
 Motivation Theories
1)Motivation theory is the study of understanding what drives a person
to work towards a particular goal or outcome. It's relevant to all of
society but is especially important to business and management. That's
because a motivated employee is more productive, and a more
productive employee is more profitable.
2)Motivation is a state of mind, filled with energy and enthusiasm,
which drives a person to work in a certain way to achieve desired
goals. Motivation is a force that pushes people to work with a high
level of commitment and focus, even if things are going against
them.
3)Motivation translates into a certain kind of human behavior.  In
short, motivation is the driving force behind human actions.
There are many different forces that guide and direct our
motivations. It is important to ensure that every team member in an
organization is motivated and meets the organizatinal goals.
 4)Various psychologists have studied human behavior and have
formalized their findings in the form of various motivational
theories. These motivational theories provide insights into the way
people behave and what motivates them.  
5) Motivation theory is a way of looking at the motivation of a
person and how this influences their behavior, whether for
personal or professional reasons. It's important to every aspect of
society but is especially relevant to business and management.
Motivation is the key to more profitable employees, as a
motivated employee is more productive.
1. Maslow’s Theory of Hierarchical Needs 
Abraham Maslow postulated that a person will be motivated when
all his needs are fulfilled. People do not work for security or
money, but they work to contribute and to use their skills. He
demonstrated this by creating a pyramid to show how people are
motivated and mentioned that ONE CANNOT ASCEND TO THE
NEXT LEVEL UNLESS LOWER-LEVEL NEEDS ARE FULFILLED. The
lowest level needs in the pyramid are basic needs and unless these
lower-level needs are satisfied people do not look at working
toward satisfying the upper-level needs.  
Below is the hierarchy of needs: 
Physiological needs: are basic needs for survival such as air, sleep,
food, water, clothing, sex, and shelter. 
Safety needs: Protection from threats, deprivation, and other
dangers (e.g., health, secure employment, and property) 
Social (belongingness and love) needs: The need for association,
affiliation, friendship, and so on. 
Self-esteem needs:  The need for respect and recognition. 
Self-actualization needs:  The opportunity for personal
development, learning, and fun/creative/challenging work.  Self-
actualization is the highest-level need to which a human being can
aspire. 

The leader will have to understand at what level the team

members are currently, and seek out to help them to satisfy those
specific needs and accordingly work to help fulfill those needs. This
will help the team members perform better and move ahead with
the better performance.
2. Hertzberg’stwo-factor Theory 
Hertzberg classified the needs into two broad categories; namely
hygiene factors and motivating factors: 
poor hygiene factors may destroy motivation but improving them
under most circumstances will not improve team motivation
hygiene factors only are not sufficient to motivate people, but
motivator factors are also required  
Herzberg’s two-factor principles
Influenced by Improving motivator Influenced by
Hygiene Factors (Dis- factors increases job motivator factors
satisfiers) satisfaction (Satisfiers)  
•Achievements
•Working condition Improving the
•Recognition
•Coworker relations hygiene factors
•Responsibility
•Policies & rules decreases job
•Work itself
•Supervisor quality dissatisfaction
•Personal growth
3.McClelland’s Theory of Needs 
McClelland affirms that we all have three motivating drivers, which
do not depend on our gender or age. One of these drives will be
dominant in our behavior. The dominant drive depends on our life
experiences.  
The three motivators are: 
Achievement: a need to accomplish and demonstrate own
competence. People with a high need for achievement prefer tasks
that provide for personal responsibility and results based on their
own efforts.  They also prefer quick acknowledgment of their
progress. 
Affiliation: a need for love, belonging and social
acceptance. People with a high need for affiliation are motivated
by being liked and accepted by others.  They tend to participate in
social gatherings and may be uncomfortable with conflict. 
Power: a need for controlling own work or the work of others.
People with a high need for power desire situations in which they
exercise power and influence over others.  They aspire for
positions with status and authority and tend to be more
concerned about their level of influence than about effective work
performance.
Vroom’s Theory of Expectancy 
Vroom’s expectancy theory of motivation says that an individual’s
motivation is affected by their expectations about the future. In his
view, an individual’s motivation is affected by – 
Expectancy: Here the belief is that increased effort will lead to
increased performance i.e., if I work harder then it will be better.
This is affected by things such as: 
Having the appropriate resources available (e.g., raw materials,
time) 
Having the appropriate management skills to do the job 
Having the required support to get the job done (e.g.,
supervisor support, or correct information on the job) 
 Instrumentality: Here the belief is that if you perform well, then
the outcome will be a valuable one for me. i.e., if I do a good job,
there is something in it for me. This is affected by things such as: 
A clear understanding of the relationship between
performance and outcomes – e.g., the rules of the reward
‘game’ 
Trust in the people who will take the decisions on who gets
what outcome 
Transparency in the process decides who gets what outcome 
Valence: is how much importance the individual places upon the
expected outcome. For example, if someone is motivated by money, he
or she might not value offers of additional time off. 
Motivation = V * I * E 
The three elements are important when choosing one element over
another because they are clearly defined: 
E>P expectancy: our assessment of the probability that our efforts will
lead to the required performance level. 
P>O expectancy: our assessment of the probability that our successful
McGregor’s Theory X and Theory Y 
Theory X and Theory Y were first explained by McGregor in his book,
"The Human Side of Enterprise," and they refer to two styles of
management – authoritarian (Theory X) and participative (Theory Y). 
Theory X: Managers who accept this theory believe that if you feel
that your team members dislike their work, have little motivation,
need to be watched every minute, and are incapable of being
accountable for their work, avoid responsibility and avoid work
whenever possible, then you are likely to use an authoritarian style of
management. According to McGregor, this approach is very "hands-
on" and usually involves micromanaging people's work to ensure that
it gets done properly.  
Theory Y: Managers who accept this theory believe that if people are
willing to work without supervision, take pride in their work, see it as
a challenge, and want to achieve more, they can direct their own
efforts, take ownership of their work and do it effectively by
themselves. These managers use a decentralized, participative
management style.   
Alderfer’s ERG Theory
C. P. Alderfer, an American psychologist, developed Maslow’s
hierarchy of needs into a theory of his own.  
His theory suggests that there are three groups of core needs:
existence (E), relatedness (R), and growth (G). These groups
are aligned with Maslow’s levels of physiological needs, social
needs, and self-actualization needs, respectively. 
Existence needs concern our basic material requirements for
living, which include what Maslow categorized as
physiological needs such as air, sleep, food, water, clothing,
sex and shelter and safety-related needs such as health,
secure employment, and property. 
Relatedness needs have to do with the importance of
maintaining interpersonal relationships. These needs are based
on social interactions with others and are aligned with Maslow’s
levels of love/belonging-related needs such as friendship, family,
and sexual intimacy and esteem-related needs such as gaining
the respect of others. 
Growth needs describe our intrinsic desire for personal
development. These needs are aligned with the other part of
Maslow’s esteem-related needs such as self-esteem, self-
confidence, and achievement, and self-actualization needs such
as morality, creativity, problem-solving, and discovery. 
Alderfer is of the opinion that when a certain category of
needs is not being met, people will redouble their efforts to
fulfill needs in a lower category. 
Maslow’s theory is very rigid and it assumes that the needs follow a specific and
orderly hierarchy and unless a lower-level need is satisfied, an individual cannot
proceed to the higher-level need i.e., an individual remains at a particular need
level until that need is satisfied. 
Whereas, according to Alderfer’s theory, if a higher-level need is aggravated, an
individual may revert to increasing the satisfaction of a lower-level need. This is
called the frustration-regression aspect of ERG theory. ERG theory is very flexible
as Alderfer perceived the needs as a range/variety instead of perceiving them as a
hierarchy i.e., an individual can work on growth needs even if his existence or
relatedness needs remain unsatisfied.  
For e.g., when growth needs aggravate, then an individual might be motivated to
accomplish the relatedness need and if there are issues in accomplishing
relatedness needs, then he might be motivated by the existence needs. Hence in
this manner, frustration or aggravation can result in regression to a lower-level
need. 
Another example could be, if someone’s self-esteem is suffering, he or she will
invest more effort in the relatedness category of needs.