INDUSTRIAL & SYSTEMS ENGINEERING

Industrial & Systems Engineering Design of systems – principal activity that distinguishes engineers from other professionals IEs design industrial systems – all types of organizations, not just manufacturing I & SEs design at (a) human activity system and (b) management control system Human activity system – physical workplace at which human activity occurs Management control system – planning, measuring and controlling all activities within an organization

I & SE Design Human Activity System Manufacturing process Materials and all other resources utilized in the production process Machines and equipment Methods by which workers perform tasks Layout of facilities and specification of material flow Material handling equipment and procedures Workplace design Storage space size and location Inventory management Data recording procedures for management reporting Procedures for maintenance and housekeeping Safety procedures

I & SE Design Management Control Systems Management planning system Forecasting procedures Budgeting and economic analyses Wage and salary plans Incentive plans and other employee relations systems Recruiting, training, and placement of employees Materials requirement planning MRP Inventory control procedures Production scheduling Dispatching (sending out) Progress and status reporting Corrective action procedures Overall information system

I & SE Design Management Control Systems Quality control system Cost control and reduction Resource allocation Organization design Decision support systems

I & SE Design Other than the formal education, an I & SE needs experience of many years to Perform design tasks To relate all these tasks for an optimal design of the total system Systems with which I & SEs deal are much more complex than pure mechanical or electrical systems Teaching other disciplines is relatively easy – actual examples Students used to construct scale models and drawings of the production systems in 1940s and 1950s Today they use computer models to simulate real-world systems – weakness

Typical I & SE Activities I & SEs have to perform different activities in Production operations Management systems Corporate services – systems flavor Production Operations Product or service Analyze a proposed product or service Constantly attempt to improve existing products or services Perform analyses relating to distribution of the product or delivery of the service Process of manufacturing the product or producing the service Determine the best process and method of manufacture Select equipment; determine degree of automation, use of robots, and so on Balance assembly lines – natural sequence Determine the best material flow and material handling procedures and systems

Typical I & SE Activities Production Operations Facilities Determine the best layout of equipment Determine the appropriate storage facilities for raw materials; work in process, and finished goods inventory Determine appropriate preventive maintenance systems and procedures Provide for appropriate inspection and test facilities Provide sufficient utilities for the operation Provide for security and emergency services Work methods and standards Perform work measurement studies; establish time standards and update them as required Perform methods of improvement studies Perform value engineering analyses, eliminating cost and waste to the maximum extent possible

Typical I & SE Activities Production Operations Production planning and control Forecast the level of activity (How many units will be sold) Analyze the capacity and resource constraints Perform operations planning Perform inventory analysis Perform materials requirement planning (MRP) – Supply chain Perform operations scheduling Design the quality control system and inspection procedures Design systems and procedures for shop floor control

Typical I & SE Activities Management Systems Information systems Determine management information requirements Design the data base to support the information system Design the management reports that will be produced Perform data analyses, as required Provide feedback to all levels of the organization Develop and implement decision support systems Analyze the requirements for data communications and computer networks Financial and cost systems Design a budgeting system Perform a variety of engineering economy studies Design, implement, and track cost-reduction programs Design procedures for systematically updating standard costs Design systems for generating cost estimates for various purposes Develop procedures for tracking and reporting cost data for management decision making

Typical I & SE Activities Management Systems Personnel Design procedures for employee testing, selection, and placement Design training and education programs for personnel at all levels in the firm Design and install job evaluation and wage incentive programs Design effective labor relations programs and procedures Apply the principles of ergonomics and human engineering to the design of jobs, workplaces, and the total work environment Develop effective programs of job enhancement Coordinate the activities of quality circle groups Design, implement, and monitor effective safety programs

Typical I & SE Activities Corporate Services Comprehensive planning Design, implement, and monitor a multilevel planning system Assist corporate management in performing strategic planning Assist corporate management in rationalizing the firm’s strategy in the international arena Perform enterprise modeling Perform systems integration activities Perform capacity analyses Participate in decisions relative to plant expansion and new plant setting Provide project management services Assist in implementing the concepts of total quality management through out the organization Provide leadership in resource management

Typical I & SE Activities Corporate Services Policies and procedures Perform studies relative to organizational analysis and design Perform analyses of various functional groupings, recommend improvements to top management Develop and maintain policy manuals Develop and maintain current procedures relative to all management practices and systems Performance measurement Design meaningful performance measures for the key results areas of each organizational unit Identify the “critical success factors” or measures of value for each unit Develop methods and systems for analyzing operating data of all units and interpreting the results Specify corrective action procedures Design reports for all levels of management

Typical I & SE Activities Corporate Services Analysis Analyze systems and construct models Perform simulation studies as appropriate Perform operations research studies as appropriate Perform statistical analyses Recognize the dynamic nature of the system being studied and include this feature in proposed solutions Apply the concepts of artificial intelligence and expert systems, as appropriate Conduct designed experiments on appropriate portions of the organization, in an attempt to continuously improve the overall performance of the organization I&SE education programs, however, are designed to provide the fundamental principles involved in many of these activities.

Organizational Structure General Manager Operations Other Managers Marketing Engineering Finance Factory Industrial Purchasing Quality Control Supervisor Shop 1 Maintenance Shop 2 – – –