1. INDUSTRIAL & SYSTEMS ENGINEERING

2. 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

3. 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

4. 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

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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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.

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