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Industrial Engineering & Operation Research

ME 14.407

Vikrant Sharma
Mechanical Engineering Department

 To introduce basic knowledge of Industrial Engineering & Operation


 To introduce basic concept of productivity.

 To introduce various technique use in IE.

ME 14.407
Introduction to IE:

 Suppose you had a great idea for a new product and lots of people wanted to buy
How you are going to make it? (resources)
How many workers you will need?
How many items they can produce? (O/P each day)
What kind of system will help them to make more?
how much you should keep on hand?

Industrial Engineer’s (IE) help to answer above questions.

Industrial Engineering learn how to improve the way in which factories, hospitals and
other organizations run.

They learn to take all factors into account from equipment and materials to people.

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 Industrial engineering is a branch of engineering dealing with the optimization of
complex problem or systems.

 American Institute of Industrial Engineers (AIIE) defines Industrial Engineering as;

“Industrial Engineering is concerned with the design, improvement and installation of
integrated system of men, materials and equipment.”

 “The design or improvement of a system of people, machines, information, and

money to achieve some goal with efficiency, quality, and safety.”

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 The prime objective of industrial engineering is;

1- To increase the productivity.

2- Eliminating waste and non-value added activities.

3- Improving the effective utilization of resources.

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Scope of Industrial Engineering:

 Design and improvement of conditions

 Design and improvement of organization

 Design and improvement of workplace, method and


 Design and improvement of product and services

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Historical development of IE:

Phase I: Pre-industrial Revolution (up to 1800)

No machines, people were working by hand

Phase II: Industrial Revolution (early 1800- late 1800)

Steam engine was developed, concept of factory

Phase III: Scientific Management (1890- 1940)

F.W. Taylor, Gilbirth, Adam Smith contributed , no of theory and methods
were developed

Phase IV: Operation Research (1940-1980)

Phase V: Automation and Computer Integrated Manufacturing

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 Frederick Taylor is named as father of scientific management and industrial
 But before Frederick Taylor, Adam Smith gave concept of Division of Labour through
his book The Wealth of Nations.
 Also James Watt, Boultin Mathew and Robinson obtained a place in the history of
Industrial Engineering because of their work related with improvements in the
performance of machines and industries.

 Period between 1882-1912 was the critical period in the history of Industrial
Engineering. Important works during this period are;
Factory system, Owner, Engineer and Manager concept.
Equal work, equal pay and incentives.
Scheduling and Gantt Charts.
Engineers interest in cost control and accounting.

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Tools and Techniques of Industrial Engineering:

 Following tools and techniques are used by industrial engineer to

improve the productivity of the organization by optimum utilization
of resources.
 Method study.
 Work measurement (Time study).
 Ergonomics.
 Motion economy.
 Production planning and control.
 Inventory control.
 Material handling analysis.
 Value analysis.
 Job evaluation.
 Operations research techniques.

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 One of the most important responsibilities of an operations

manager is to achieve productive use of organization’s resources.

 Productivity is an index that measures output (goods and services)

relative to the input (capital, labor, materials, energy, and other
resources) used to produce them.
 Productivity is the relationship between the outputs generated from
a system and the inputs that are used to create those outputs.

Productivity = ---------------

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Ways to Increase Productivity

 Increase output by using the same or a lesser amount of (input)

 Reduce amount of (input) resource used while keeping output
constant or increasing it.
 Use more resource as long as output increases at a greater rate.
 Decrease output as long as resource use decreases at a greater

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Measuring Productivity

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Examples of Partial Productivity Measures

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