People,Problem-Solving, and

Practicality
Industrial Engineering:
the People and Systems
Engineers
What is Industrial Engineering?
Industrial engineers design, install, and improve the
complex systems which provide both goods and
services vital to our society and economy. These
systems integrate people, materials, and equipment,
and thereby place unique demands for breadth of
preparation upon industrial engineers. The traditional
arenas for the practice of industrial engineering are the
manufacturing facilities of industry. However, today
fully one-third of practicing industrial engineers are
employed in non-manufacturing enterprises such as
hospitals, banks, and government.
Industrial Engineering
Industrial engineers perform the following tasks in
manufacturing and service industries.
Forecast the demand the product
Prepare a plan to produce the product
Analyze the cost and benefits of the product
Design the layout of the plant to produce the product
Select the manufacturing processes to make the product
Identify the people and their skills for production and
supervision
Integrate people, materials, machines, and processes to work
together
Schedule the machines and processes for production
Supervise the day-to-day operation of the facility
Design the workplace and procedures for workers to follow
Handle occupational and safety concerns
Model and analyze the performance of the system and find
ways to improve it
Areas of Study Within Industrial Engineering
1. Human Factors (Ergonomics)
Areas of Study Within Industrial Engineering
2. Optimization/Operation Research
Factories
Customers
Product Flow
Information Flow
Distributor/Retailer
Warehouse
Deterministic Operations Research
Optimization
Goal: to Choose the best (optimal) solution
satisfying the limitations (constraints) of the
system

Stochastic Operations Research
Goal: to evaluate the behavior of a stochastic
(random) system

Areas of Application
Manufacturing and Production
Schedule jobs on the shop floor
Plan facilities layout
Formulate inventory policy
Improve reliability of products

Business
Determine advertising strategy
Determine mix of product to sell
Select an investment portfolio

Public Sector
Locate and equip emergency facilities
Design traffic systems


Facilities Design
SLP PATTERN OF PROCEDURES
Input Data: P,Q,R,S,T, & Activities
Flow of
Materials
Activity
Relationships
Relationship
Diagram
Space
Requirements
Space
Available
Space Relationship
Diagram
Modifying
Considerations
Practical
Limitations
Evaluation
SELECTED LAYOUT PLAN
Muthers Systematic Layout Planning Pattern of Procedures
PLAN X
PLAN Y
PLAN Z
Work Cell Floor Plan
Office
Tool Room
Work Cell
Saws Drills
Emergency Room Layout
E.R. beds Pharmacy Billing/exit
E.R.Triage
room
Patient B - erratic
pacemaker
Patient A -
broken leg
Laboratories
Store Layout - with Dairy, Bread,
High Drawer Items in Corners
Production Planning and Control
Forecasting
Aggregate
Production
Planning
Master
Production
Planning
Material
Requirement
Planning
Operations
Scheduling
Shop Floor
Control
Warehousing
Shipping &
Receiving
Sales &
Marketing
Aggregate
Capacity
Planning
Capacity
Requirement
Planning
Areas of Study Within Industrial Engineering
3. Simulation
Areas of Study Within Industrial Engineering
4. Quality Control
0 10 20 30 40 50
38.0
39.2
40.4
41.6
Xbar and R Chart
Subgr
M
e
a
n
s
1
1
1
1 1
1
1
X=40.00
3.0SL=41.29
-3.0SL=38.71
0.0
1.5
3.0
4.5
R
a
n
g
e
s
R=2.232
3.0SL=4.720
-3.0SL=0.000
30 40 50
Last 25 Subgroups
37
39
41
43
Subgroup Number
V
a
l
u
e
s
38 42
Ppk: 0.56
Pp: 0.56
StDev: 1.18146
Overall (LT)
Cpk: 0.69
Cp: 0.69
StDev: 0.959752
Potential (ST)
Capability Plot
Process Tolerance
Specifications
I I I
I I I
I I I
ST
LT
38.0 40.5 43.0
Normal Prob Plot
36 40 44
Capability Histogram
Process Capability Sixpack for alldata
Areas of Quality
Process Capability
Evaluates conformance to product specifications

Statistical Process Control
Looks at the process stability over time

Process Modeling
Forms a mathematical model of the process
How do the inputs of the system relate to the outputs?

Gage Repeatability and Reproducibility (GR&R)
Evaluates the measurement system

Diagnostics
Identifies the sources of any problems




Sample Industrial Engineering Courses

Human Factors Engineering

Work Measurements and

Work Design

Facilities Planning and

Design

Reliability Engineering

Experimental Design For

Engineering

Production Planning and

Control

Engineering Project
Management

Integrated Manufacturing
Systems

Expert Systems in
Engineering

Industrial Robotics

Quality Control

Automated Inspection

Integrated Product and

Process Design

Queuing Methods for

Services and Manufacturing

Introductory Decision
Analysis for Engineering

Simulation Modeling and

Analysis

Engineering Information
Systems

Contemporary Topics in
Industrial Engineering
Career Opportunities for Industrial Engineers
Industrial engineers are the problem solvers in all organizations. Career opportunities for industrial engineering
are limitless.

A sample list of career opportunities for industrial engineers include:
Manufacturing: regardless of the product manufactured, every manufacturing company needs IEs to
plan the facility, perform economic analyses, plan and control production, manage
people, handle safety issues, improve quality, evaluate performance, etc.

Health Services: hospitals and clinics need IEs to perform cost/benefit analyses, schedule work load,
manage people, evaluate safety concerns, design and maintain facilities, etc.

Transportation: airlines, ground transportation, trucking, and warehousing companies need IEs to
design the best schedules and routes, perform economic analyses, manage crews, etc.

Financial: banks and other savings and lending institutions need IEs to design financial plans,
perform economic analyses, etc.

Government: local and federal governments need IEs to design and enforce safety systems,
environmental policies, plan for and operate in a number of organizations.

Consulting: IEs may work as consultants to help design and analyze a variety of systems including
information systems, manufacturing and service systems.

What is Engineering Design?
The systematic and creative application of
scientific and mathematical principles to
practical ends such as the design,
manufacture, and operation of efficient and
economical structures, machines, processes,
and systems.

Thus, the design of these
products and services is
essential to the livelihood
of a company.

But, what are the
characteristics of an
Effective Design?
The basic purpose of any organization is to
provide products or services to their customers.
Effective Design
Effective designs provide a competitive edge by:
Bringing new ideas to the market quickly
Doing a better job of satisfying customer needs
Making new products easier to manufacture,
use, and repair than existing products
Types of Design and Redesign
Original Design (or Inventing)
Involves elaborating, original solutions for a given task. The
result of original design is an invention.
Adaptive Design (or Synthesis)
Involves adapting a known system to a changed task or
evolving a significant subsystem of a current product (such
as antilock brakes).
Variant Design (or Modification)
Involves varying the parameters (size, geometry, material
properties, control parameters, etc.) of certain aspects of a
product to develop a new and more robust design.
Product Design:
Specifies which materials are to be used
Determines dimensions and tolerances
Defines the appearance of the product
Sets standards for performance.

Design has a tremendous impact on the
quality of a final product or service.
Quality in the design process involves:
Matching product or service characteristics
with customer requirements
Ensuring that customer requirements are
met in the simplest and least costly manner
Reducing the time required to design a new
product or service, and
Minimizing the revisions necessary to make
a design workable.

The Design Process
1. Idea Generation
(Product Design)
2. Feasibility Study
(Performance Specifications)
3. Preliminary Design
(Prototype)
4. Final Design
(Final Design Specifications)
5. Process Planning
(Manufacturing Specifications)
Sources of idea generation
Surveying suppliers, distributors,
and salespersons
Monitoring trade journals
Analyzing warranty claims, customer complaints, and
other failures
Surveying potential customers
Bench marking:
Comparing a product or process against the
best-in-class product.
Reverse engineering:
Carefully dismantling a competitors product
in order to improve ones own product.
Involvement of Different Functional
Departments in the Design Process
Marketing Department takes the idea and:
Forms a product concept
Conducts a study on the feasibility of the
proposed product or service
If the proposed product meets certain
expectations, performance specifications are
developed.

Involvement of Different Functional
Departments in the Design Process
Design Engineers take the performance
specifications and:
Develop preliminary technical specifications, and later
Develop detailed design specifications.
Manufacturing Engineers take the detailed
performance specifications and:
Develop a process plan that includes specific
requirements for equipment, tooling, and fixtures.
Production Engineers take these manufacturing
specifications and schedule production

No
Idea
generation
Final
design
Preliminary
design
Feasibility
study
Process
planning
Product
feasible?
Yes
Prototype
Manufacturing
Design & Manufacturing
Specifications
The Design Process
Idea generation & pre-design
planning
Customer Requirements
Functional Specification
Product Specifications
Concept Generation
Concept Selection
Engineering Design
Engineering Evaluation
Prototype and Testing

Manufacturing Design
A Decision Making Process
Flexibility
Cost
Breaking Down Barriers
Final design is concerned with how the
product will perform.
It consists of three phases:
1. Functional design is concerned with
how the product will perform.
2. Form design refers to the physical
appearance of a product.
3. Production design is concerned with the
ease and cost of manufacturing the product.
Form Design
(How The Product Looks)
Functional Design
(How The Product Performs)
Reliability
probability product performs intended function for
specified length of time
A measure for reliability is Mean Time Between
Failures (MTBF).

Maintainability
ease and/or cost or maintaining/repairing product
A measure for maintainability is Mean Time To Repair
(MTTR).


DFM Guidelines
1. Minimize the number of parts
2. Develop a modular design
3. Design parts for multi-use
4. Avoid separate fasteners
5. Eliminate adjustments
6. Design for top-down assembly
7. Design for minimum handling
8. Avoid tools
9. Minimize subassemblies
10. Use standard parts when possible
11. Simplify operations
12. Design for efficient and adequate testing
13. Use repeatable & understood processes
14. Analyze failures
15. Rigorously assess value
Design Simplification
(a) The original design (b) Revised design (c) Final design
Design for push-and-snap
assembly
One-piece base &
elimination of fasteners
Assembly using
common fasteners
Listening to Customers
Customers Requirements
Normal Requirements are typically what we get by
just asking customers what they want.
Expected Requirements are often so basic the
customer may fail to mention them - until we fail to
perform them. For example, if coffee is served hot,
customers barely notice it. If it's cold or too hot,
dissatisfaction occurs. Expected requirements must
be fulfilled.
Exciting Requirements are difficult to discover.
They are beyond the customer's expectations. For
example, if full meals were served on a flight from
Chicago to Indianapolis, that would be exciting. If not,
customers would hardly complain.
Kano Model [Noriaki Kano 1984].


Making Economic Decisions
Engineering economy: the discipline concerned
with the economic aspects of engineering. It
involves the systematic evaluation of the costs and
benefits of proposed technical projects.

Some Examples
Choosing the best design for a high-efficiency gas furnace
Recommending whether an overnight delivery service should be
purchased or leased


Rational Decision-Making
Process
1. Recognize a decision
problem
2. Define the goals or
objectives
3. Collect all the relevant
information
4. Identify a set of feasible
decision alternatives
5. Select the decision
criterion to use
6. Select the best
alternative
Example: Equipment & Process
Selection
How do you choose between Plastic
Composite and Steel sheet stock for the
auto body panel?
The choice of material will dictate the
manufacturing process for the body
panel as well as manufacturing costs.
Which Material to Choose?
Engineering Costs
General Cost Terms
Manufacturing Costs
Direct materials
Direct labor
Mfg. Overhead
Non-manufacturing
Costs
Overhead
Marketing
Administrative
Cost Components
Material Cost
Direct material cost Bill of Material (BOM)
Non-formula material cost expense of consumables used during
processing
Conversion Cost
Capital depreciation
Direct labor
MBR management budget review
Scrap
Tools and Dies
Transportation

Cost Classification for Predicting Cost
Behavior
Cost Behaviors
Fixed costs
Variable costs

Average unit costs

Fixed Costs
Total fixed costs (F)
Production volume (Q)



Fixed costs
per unit of
production
(F/Q)
Production volume (Q)

Variable Costs
Def: Costs that vary
depending on the level
of production or sales
Cost behavior: Increase
or decrease
proportionally
according to the level of
volume
Examples: Costs of raw
material, packaging
material, direct labor,
machine utilities are
main variable costs.

Variable costs
per unit of
production (V)
Production volume (Q)

Total variable
costs (TV)
Production volume (Q)

Variable Costs
Break-Even Analysis (BEA)
The total revenue depends on the
production level.
The higher the production, the higher
the total variable costs.
In BEA, it is assumed that price of
product is fixed.

Price per
unit (P)
Production (and sales)
volume (Q)

Total revenue
(TR)
Production (and sales )
volume (Q)

BEA
BEA
Therefore, the overall break-even
analysis can be pictorially represented
in the following graph

Total revenue (PQ)
BEP: F+VQ=PQ
Total costs
(F+VQ)
Profit
Production (and sales) volume
(Q)

loss
BEA
Total Cost (TC) = Total Revenue (TR)
TC=F+VQ
TR=PQ
At the break-even point: F+VQ=PQ

Q
BEQ
= F/ (P-V)
Example
500,000$ total yearly fixed costs.
150$ / unit variable costs
200$ / unit sale price
Q
BEQ
=500000/(200-150) =10000 units
If our market research indicates that the
present demand is > 10000, then this
manufacturing system is economically
feasible.
Quality Function Deployment
Voice of the customer
House of quality
QUALITY FUNCTION
DEPLOYMENT
QFD: An approach that integrates the voice of the
customer into the product and service
development process.
Quality Function Deployment
Identify customer wants
Identify how the good/service will
satisfy customer wants
Relate customer wants to product hows
Identify relationships between the
firms hows
Develop importance ratings
Evaluate competing products

Customer
Requirements





CUSTOMER COMMENTS
Carrots and potatoes are very different.
I cut myself with this one.
I just leave the skin on.
Im left-handed. I use a knife.
This one is fast, but it takes a lot off.
How do you peel a squash?
Heres a rusty one.
This looked OK in the store.
Peels a variety of produce
Works both right and left handed
Creates minimal waste
Saves time
Durable
Easy to clean
Safe to use and store
Comfortable to use
Stays sharp or is sharpenable
Select a household product of your choice, your goal will be to describe how
you think this design evolved. By looking at the product, can you tell:
1. How and why the device functions? Can you describe how it works, what
energy sources are used, and what purpose that function serves?

2. How was human engineering involved? How would the human/machine
interface affect this design? What safety issues would have been involved?

3. Why the original designers selected the materials used? What properties
of the materials were most important in selecting them?

4. What features make this product unique? Compared to similar items, are
there features on your example that would identify this as a better
product?

5. How was the production process affected by this design? Are there
specific features that might have been added to make production more
efficient?


As your analysis continues, choose one aspect of
the design that intrigues you. Study the design
used, and consider how you might improve on it.
Develop a list of alternatives, and compare them to the
existing design.
Develop some criteria that may help you select one of
your alternatives as most likely to succeed.
Finally, select one alternative, and describe how it
improves on the existing design, what its limitations
are, and why you think this is a better alternative than
the existing design.

Good Luck
with your designs!