The second edition of the Handbook of Industrial and Systems Engineering is an updated body of knowledge on industrial and systems engineering. The handbook fills the gap that exists between traditional and modern industrial and systems engineering practice.
What is industrial engineering?
Although some practitioners find the definition too convoluted, it nevertheless describes an industrial engineer. It can also be seen from the definition that a systems orientation permeates the work of industrial engineers.
What is systems engineering?
Ties to the Industrial Revolution
6 Handbook of Industrial and Systems Engineering Notable industrial developments that fall under the practice of industrial engineering range from the invention of the typewriter to the invention of the automobile.
Typewriter history
Heritage of industrial and systems engineering
Gilbreth made it possible to apply science more precisely in the analysis and design of the workplace. Barth invented a slide rule for calculating metal cutting speed as part of the Taylor control system.
Introduction
Absolute operational efficiency
Ideal benchmarks for measuring efficiency are usually developed in a design laboratory under perfect operating conditions. Note that ideal benchmarks can be observed at the machine or process level, but are almost never observed at the company level.
Relative operational efficiency
In this setting, operational efficiency is determined by the outputs produced and the input resources or costs consumed. We can also say that firm B is efficient because it produces the highest possible level of output at a constant level of input.
Efficiency evaluation and performance indices
Shop floor performance and queuing theory
P[customers in the system] = pn = ρn(1 − ρ) To derive the probability of n or more customers in the system. Intuitively, it is equal to the expected number of customers in the system divided by the arrival rate λ.
Production function
In addition, if a proportional increase in all inputs results in a less than proportional increase in output, we say that the production function exhibits diminishing returns to scale (DRS). Finally, if an increase in all inputs results in a more than proportional increase in output, we say that the production function exhibits increasing returns to scale (IRS).
Firm-level performance and efficiency estimation
The CNLS estimator of the production function, ˆ( ),f x is generally not unique, but the adjusted output values at observed inputs, ˆ( )f xk , are unique (Kuosmanen, 2008). Given (α βˆk,ˆk) from the CNLS problem, we write the unique StoNED estimator of the frontier production function as
Efficiency improvement
Overall equipment effectiveness
Planned downtime status: Equipment is not available to perform its intended function due to planned downtime events, for example, production testing, preventive maintenance, and installation. In other words, OEE is a measure to estimate the efficiency of the theoretical production time for effective units.
Lean thinking and manufacturing
The basic philosophy of lean manufacturing is to eliminate the waste by purchasing only enough materials to meet the immediate needs of the production plan, taking into account the transit time. Calculate the positional weight (PW) of each task using the processing time (PT) of the task plus the processing time of all tasks that have this task as a predecessor.
Conclusion
Jondrow, J., Lovell, C.A.K., Materov, I.S. and Schmidt, P., On estimating technical inefficiency in the stochastic frontier production function model, J. Liker, J.K., The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer, McGraw-Hill, New York, 2004.
Introduction
In the early 1900s, Alfred Sloan of General Motors did for management what the industrial revolution had done for labor. This allowed managers to focus on small segments of the larger organization and manage according to assigned authority and responsibility.
Business process reengineering
Drucker (1993) credits this internal focus on improved productivity for the creation of the middle class over the past 100 years. But the management and structure of organizations from the beginning of the Industrial Revolution had been largely focused inward, on increasing productivity and making more goods for sale.
Lean
In their 1993 book, Corporate Reengineering: A Manifesto for Business Revolution, Hammer and Champy advocated business process reengineering (BPR), which they defined as "the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary performance measures.Hammer and Champy saw BPR as a tool to rethink and redesign organizations to better satisfy their customers.
Six Sigma
General Electric adopted this concept when developing the Six Sigma management strategy in 1986. Basically, Six Sigma is a program focused on reducing errors and deficiencies in an organization.
Selecting a method
Specifications can be seen as coming from customer requirements; In this way, the customer once again becomes the key to success in a Six Sigma environment. Unique to this process improvement method is that Six Sigma uses a series of karate-like levels (yellow belts, green belts, black belts, and master black belts) to assess practitioners of the concepts in organizations.
Introduction
Furthermore, we propose and investigate a PMS based on the system recognition process as a value improvement method for services, in which the system recognition process reflects the views of decision makers and enables one to calculate the value indices for the resources. A practical example is illustrated to show how the system works, and its effectiveness is investigated.
System recognition process
If the result satisfies the management system conceived in the phenomenal stage, it becomes the optimal management system and continues to the essential stage (stage 3). The essential phase is considered a step to recognize the basic laws (rules) and principles inherent in the object.
PMS for value improvement of services
Structural model of functions composing customer satisfaction
In this case, customer satisfaction consists of a set of service functions such as "employee behavior", "store management", "informing customers", "responding to customers", "sharing information", etc. Providing information to customers' includes 'promotional information', 'new product information' and 'emergency announcements'. “Responsiveness to customers” consists of.
Structural model of resources composing cost
Evaluation of resource value indices based on the degree of importance of functions with the ratio method. The calculation results are summarized in table 4.1. 2) Amount of cost (resources) based on the structural cost model.
Computing for value indices of four resources
At step E, the integrated value indices of services calculated in the previous step are ranked using the fuzzy outranking method (Roy, 1991; Siskos and Oudiz, 1986) and draw the graphical structure of value control (Amagasa, 1986). In this study, each of the service value indices is represented in the graphical structure of the depicted value control.
Simulation for value improvement system of services
Stage A: Structural modeling
In phase D, if the value of the integrated assessment is examined and its validity is demonstrated, the process moves to the final phase (phase E).
Stage B: Weighting and evaluating
Stage C: Integrating (value indices)
The store advocates that customers “have confidence and satisfaction when buying the products at all times.” In addition, the store provides “attractive goods” at “reasonable prices” and “superior services”, as a home appliance retailer based on this management philosophy. In addition, the store realizes a customer-focused and community-oriented operation, delivering smooth services that reflect the characteristics of the area and economies of scale by controlling total inventory across the group.
Conclusion
Delbecq, AL, Vande Ven, AH, and Gustafson, H.D., Group Techniques for Program Planning – A Guide to Nominal Group and Delphi Processes, Scott, Foresman and Company, San Francisco, 1995. Siskos, JJ, Lombard, J., and Oudiz, A., The use of cross-criteria methods in the comparison of control options against a chemical pollutant, Oper.
What is strategic performance measurement?
Strategic performance measurement is concerned with measuring the activities and results of an organization that are critical to the mission or strategy. In the rest of this chapter, strategic performance measurement will be referred to as performance measurement.
Measurement in context of planning
Fierce competition and a history of performance measurement have enabled continuous improvement in productivity and quality in the manufacturing sector in recent years. Improvements in productivity and quality in the service sector have generally lagged behind the manufacturing sector.
Measurement and evaluation process
Phase 5—The output of data analysis is information displayed in the format desired by the user (manager). Phase 6 – the last step of the measurement and evaluation process is to perceive and interpret the information.
Purposes of strategic performance measurement
- Control
- Improvement
- Planning
- Diagnosis
- Promotion
Typically, a manager uses monitoring indicators to evaluate the performance of a part of the organization for which the manager is responsible, such as a factory or department. A lower-level manager can use indicators to monitor the performance of those who work directly for that manager.
Dimensions of performance
- Concept of key performance areas
- Balanced scorecard
- Baldrige criteria
- Sink’s seven criteria
- Human capital
Product and process performance indicators provide evidence of the performance of products and processes relevant to customers. Human capital health indicators reflect the value of human capital as an organizational asset.
Implementing a measurement system
Input/output analysis with SIPOC model
The first step to completing the SIPOC model is to identify the organization's primary customers, where a customer is anyone who receives a product or service (including information) from the organization. It starts with identifying the customer's desired outcomes, i.e. the outcomes they want as a result of receiving the organization's products and services.
Macro strategic measurement method
The core of the SIPOC model is the identification of processes, especially the processes that produce the products and services. Review sessions are typically conducted with all the managers of the target system participating as a group.
Performance measurement pitfalls
It is important to keep in mind that the purpose of measurement is not to generate unnecessary data, but to generate data that can actually influence future decision-making. In our experience, measurement is often treated as an afterthought and not carefully integrated into the organization's planning.
Integrity audits
Simulation—observing or inputting data of known characteristics (often repeatedly), then comparing the output (distribution) of the measurement process to expectations. Another less resource-intensive approach is to address the auditing and assessment of the measurement system as part of a periodic organizational assessment.
Organizational assessments
Becker, B., Huselid, M.A., and Ulrich, D., The HR Scorecard: Linking People, Strategy and Performance, Harvard Business School Press, Boston, 2001. Coleman, G.D., Costa, J., and Stetar, W., Performance measures: Human capital management is a natural fit for industrial engineers, Ind.
Introduction
Categories of construction
The BLS refers to three main headings: General Building Contractors SIC Code 15, Heavy Construction (except Building) SIC Code 16, and Specialty Trade Contractors SIC 17. Designers—they are usually architects or engineers (electrical, mechanical, civil/structural), who interpret owner's wishes into drawings and specifications that can be used to guide facility construction.
Construction delivery methods
To understand how IE techniques can be applied to the construction industry, it is useful to understand this environment; it is truly diverse, so much so that its participants have easily relied on clichés such as "the industry is like no other", "no two projects are the same" to maintain a status quo in which long-standing management traditions are seen as mysterious an art that others cannot fully understand. The owner hires a design professional to do a limited amount of preliminary project planning, schematic planning, costing, and timeline proposals.
Industrial engineering applications
Ergonomics/human factors
Structural ironwork refers to outdoor work (not shop fabrication) as four specialties—the erection of structural steel (structural ironwork [SIW]), placement of reinforcing bars (reinforcing iron) (reinforcing ironwork [RIW]), ornamental ironwork (OIW), and machinery that moves and rigs (MMRIW). Lifting plasterboard horizontally with both hands placed on top of the plasterboard causes the slightest postural sway and instability.
Value engineering
ANOVA showed that the respective lifting and hanging methods had significant effects on two variables of postural sway and three indices of postural instability. The contractor implements the selected alternatives and the savings are shared between the owner and the contractor.
Work measurement
Structural systems and materials—to maintain the integrity of the project/facility under all design conditions. In the MTM system, operations are divided into tasks; tasks are further reduced to individual body movements such as reaching, grasping, applying pressure, positioning, turning and releasing.
The learning curve
The learning curve effect should also be considered when setting work standards to ensure that repetition does not result in excessively long tasks. The use of a learning curve allowed the contractor to complete the project at an even lower level of man-hours, i.e. 5900 h per unit.
Quality management
While total quality approaches have been very useful for manufacturing and service industries, they have had limited application in the construction industry. Necessary training often does not reach decision makers in the construction industry.
Productivity management
Past Baldrige Award winners have proven to be world-class organizations. In summary, IEs can have a major impact on construction productivity and profitability by helping management improve its decision-making and workforce logistics.
Continuous improvement
Continuous Improvement—The HCL study used the PDCA cycle to foster a culture of continuous improvement in the modular home building industry. In general, the delivery of design and construction services can be significantly improved through the use of "lessons learned" and "best practices." The information collected through POE application should also address how to design processes to improve design quality, cycle time, transfer of learning from previous projects, and provide effective performance measurement systems to understand, align and measure performance at all levels. to improve.
ISO9000
User satisfaction questionnaires provide valuable information about the customer's (building owner's) perception of the end product and, most importantly, the nature of the associated processes.
Cycle time analysis
The following example models an excavation project in which a backhoe is used to excavate a trench for a water main (Griffis, F.H., Farr, John V., Morris, M.D., 2000, Construction Planning for Engineers. Copyright, McGraw-Hill Companies, Inc.). The rate of arrival of serviced activity to the customer λ = 60/Tt (where T is in min).
Lean methods
Construction supply-chain management
Studies have indicated project cost increases of up to 10% due to poor supply chain practices. The concept of supply chain includes all the activities that lead to providing an end user with a product or service - the chain is comparable to a network that provides a channel for flows in both directions, such as materials, information, funds, paper and people.
Automation/Robotics
A variety of materials can be used for exterior materials as well as fillers between surfaces. The construction of an arched roof can be tested using fluid dynamics and materials science models.
Automation with radio frequency identification
Safety management
Improving safety starts with a systems thinking approach using a methodology similar to the TQM approach. Existing safety management systems can be significantly improved by adopting the fundamental principles and procedures of TQM.
Systems integration
Most of the accidents that happen on the construction site are preventable, it is just a priority for contractors to achieve this goal. Within this research, selected TQM concepts and techniques were identified to be integrated into the existing safety management system.
Simulation
Tabulate the production numbers together with their given probability and calculate the cumulative probability and then assign the random numbers as shown in Table 6.3. Compare: If the company has rented the additional space, the rental amount is $300.
Quality function deployment (QFD)
The process of building a QFD matrix can be a good communication facilitator that helps break down the communication barriers between the client and the designer and between the members of the design team. The deployment of quality functions can be an excellent tool for evaluating project alternatives, balancing conflicting project requirements, and establishing measurable project performance objectives.
Facilities layout
Some research topics suggested for further study are streamlining the QFD process, computer-aided QFD applications, evaluating the costs and benefits of using QFD, using QFD in detailed design, and how to integrate QFD with total project QM systems ( figure 6.8). Industrial engineering techniques can be used to optimize the use of each construction site, thereby improving productivity and profitability.
Operations research and statistical applications
Sustainable construction
Cheung, K.T., Cheung, S.O. and Drew, D., Value optimization of building components in the design process, First International Construction on Construction in the 21st Century (CITC2002)—Challenges and Opportunities in Management and Technology, Miami, FL, 2002 , pp. Elshennawy, A., Mullens, M. , and Nahmens, I., Quality Improvement in the Modular Housing Industry, Industrial Engineering Research '02 Conference Proceedings, Orlando, May, 2002.
Introduction
Four cases
- Case 1: Application of industrial engineering to product strategy
- Case 2: Application of industrial engineering to price strategy
- Case 3: Application of industrial engineering to place strategy
- Case 4: Application of industrial engineering to “promotion” strategy
In model M1 we try to determine “the optimal auction moment for each main type of cut flower at the highest auction price”. Hsiao, SW, The Theory and the Application of Quantitative Decision, Course Handouts, National Cheng Kung University, Taiwan, 2000.
Introduction
Basic concepts of work sampling
Accuracy
Confidence interval
Sample size
Random observation times
Another way to get random numbers is to write and place a large number of valid times mixed in a hat and pick up slips at random. The required number of observations can be determined from the random number table as follows: the time 859 can be taken for the selected number 8:59 if the shift start time is 8:00.
Control charts
Another way to obtain travel times is to multiply two-digit random numbers by 10 (Niebel and Freivalds, 2003) to obtain time values in minutes after the start of the shift. The process is repeated until the required number of valid observation times, which do not fall during break or lunch periods, within the shift time are achieved.
Plan of typical work sampling study
Applications of work sampling
Machine utilization
Allowances for personal and unavoidable delays
The same sampling group was assigned to collect additional sampling data with 80 observations per day. One work sampler can make five trips per hour or 40 trips per day in an eight-hour shift.
Determining work standards
The specified unavoidable delay should be based only on the work element data (24,730) if the unavoidable delay under consideration is highly dependent on working time, as in the case of the fatigue allowance.
Computerized work sampling
These software packages reduce time for clerical routines of work sampling and allow faster processing with greater accuracy. Use of computers can save about 35% of the total work sampling study costs (Niebel and Freivalds, 2003) by eliminating the clerical work time, which is relatively high relative to the actual observation time.
Advances in methodology
PDA-based work sampling
Multilevel task categories
It is possible to explore what is done at one level, how it is done at another level, why it is done at another level, and yet another level may indicate the perception of difficulty for the work. A highly detailed picture of work tasks can be obtained by combining the different levels of categories (Robinson, 2010).
Conclusion
Introduction
The general term used for the class of procedures used to isolate the component data into groups is cluster analysis. Application of cluster analysis is common in various fields, such as (a) psychology for classifying individuals into personality types; (b) chemistry for classifying compounds based on their properties; (c) regional analysis for classifying cities based on their demographic and other variables; and (d) marketing analytics to segment customers based on their purchasing behavior and product usage.
Multivariate analysis
This skepticism probably arose because of the confusing array of names, such as typology, classification analysis, numerical taxonomy, and Q-analysis, for this technique. This chapter presents the multivariate statistical techniques popular in providing business solutions, focusing specifically on a clustering methodology called K-means clustering and illustrating the use of this type of statistical technique in a marketing situation.
Multivariate analysis in clustering
Multivariable data management in segmentation
Cluster analysis
Overview
Phases of clustering analysis
In other words, all cases start in the same cluster and the process starts by dividing the customers into two groups. In the K-means clustering procedure, the value of K or the number of groups must be determined before processing.
Testing validity of clustering solution
An intuitive number of clusters can be sampled and based on some preselected criteria; the best among the alternatives can be chosen. This phase involves determining the nature of the clusters by examining the criteria used to develop the clusters.
Application of cluster analysis in marketing management—case study
- Cluster analysis in marketing field
- Objectives of study
- Methodology
- Variables
- Data collection, storage, access, and formats
- Partitioning—allocation of DMAs to clusters using K-means clustering methodology
- Results—interpretation and profiling of clusters
- Testing validity of clustering solution using ANOVA
- Limitations of case study
They focus on optimization – doing more with less – and help reduce waste in society.1 The ISEs help guide society and business to take better care of their workforce while improving the bottom line. Industrial and systems engineering is method-based and is one of the fastest growing fields in engineering.
Areas of industrial and systems engineering
- Human factors engineering (ergonomics)
- Operations research
- Artificial intelligence
- Mathematical modeling
- Manufacturing systems
- Engineering statistics
- Engineering computing
Industrial and systems engineering is unique among engineering disciplines in that it is not limited to technological or industrial problems. In recent years, statistics has been increasingly used in the field of industrial and systems engineering.
Understanding human systems integration
Introduction to human systems integration
Using specific examples taken from industry (e.g., a steel mill), Taylor demonstrated that selecting the right people for a task (e.g., selecting physically strong individuals to move heavy pig iron) could make it possible to accomplish more work by fewer people. Likewise, improved tool selection (eg, using larger shovels to move light coke and smaller shovels to move heavier coal) had a similar effect.
