Frequently Asked Questions about

Industrial Engineering, an Industrial Engineer, and Productivity

 

1. What is Industrial Engineering, what does does an Industrial Engineer focus on?

Productivity, throughout an organization. Productivity is defined as output divided by input, so the focus is to increase any output (production) and / or decrease any input (cost). Since productivity is closely related to profit, use of IE principles will increase profit.

2. What primary techniques and tools improve productivity?

There are many, and this page addresses ones that will apply widely to activities, to organizations of any size, in any endeavor.

a. Measure work, time study, work sample to quantify expectations for output, and form a basis for reporting actual performance against expected.

b. Cut waste and increase value added.

c. Right-size, to match facility, capacity, and personnel to current economic conditions.

d. Layout facility and workstations for better flow and minimum movement.

e. Manage constraints that impede functions.

f. Balance workloads of people and processes.

g. In the facility planning field, find a location for a facility, instead-of or in-addition-to; relocate an operation for access to customers, technology, lower cost, or qualified personnel; expand a facility; consolidate operations or facilities for optimum interaction.

3. Are productivity principles effective in a slow economy?

Yes. and many organizations are more attracted to productivity during slow times. When improvements are made, they not only affect results at the time, but also carry over into an improving economy.

4. Isn't IE just for the production floor?

Not at all, although IE started there and is still effective. But all operations should be productive, whether they produce widgets or ship, service customers, design, perform research, construct, process forms or information, change motel rooms, clean buildings, train, maintain. Not only business, but also government and military entities operate with constrained budgets, and the same productivity principles apply.

5. Where should an organization start to improve productivity?

In theory, that's an easy answer: go where the money is. In practice, it is all too common to start cost cutting at the production floor, even when labor is only a small percentage of product cost. To be effective, learn to prioritize. Follow the Pareto Principle to find the few major issues that cause the most problems; cost, delay, waste, inventory, cycle time, customer service. Even company policy can cause the problems, and much cost will not be production-floor related. Now, to your organization and its situation. You may have a minor plant layout or flow issue, or wish to establish limited labor expectations. Or the scope may be much larger, and you will want to start with your big problems, big costs, big opportunities, major constraints.

Consider both big-picture or Strategic, concepts as well as focused Tactical actions.

a. Strategic concepts. Two of the most productive companies in history, Lincoln Electric of Cleveland and Toyota of Japan used two primary concepts in parallel, continuous improvement and regard for people. If the organization sees that the boardroom is serious about both these concepts, that improvement will be rewarded and won't cost jobs, then potential will be unlimited.

b. Tactical actions. Tactical actions are more popular than strategic concepts, require less committment, and therefore make a contribution of a more limited nature. Typically an organization will cherry pick; address those issues that will contribute the most results with the least effort. Even with a limited effort, be sure to direct techniques of point 2 above to the high cost, serious problem areas of your organization. Early on, define objectives, timetable, budget, and expected results. Quite often major results can be achieved with a minor but focused effort. But even when you cherry pick, maintain your regard for people; you'll be glad you do.

6. Isn't productivity just about labor?

No. If you address only direct labor, the people that produce your output, you will almost certainly overlook some major opportunities to improve your bottom line. Refer to point 5, and zero in on the big elements whether they are labor, materials, overhead; direct or indirect cost. Even so-called fixed costs can be reduced with a critique of the assumptions on which they are based.

7. Are IE techniques practiced alone or in conjunction with others?

This depends on the task at hand. IE principles do complement one another; time study and reporting; layout and consolidation; constraints management and methods for instance. A more narrowly focused objective and budget might require only one technique.

8. How does an consulting industrial engineer proceed?

A consultancy such as JPR performs the specific productivity improvement work which a client desires, to meet objectives, timetable and budget. JPR will follow a client's plan, or recommend and perform tasks, or jointly develop and implement a plan of action.

9. Are principles of productivity applied by non-IE's?

Yes they are, although sometimes with results that are not effective. In the on-line forums there will often be requests for basic guidance. As with any professional. a trained and experienced practitioner will produce superior results.

10. Is it hard to initiate professional help?

No. JPR does not charge for initial discussions and proposals, nor for a formal proposal with costs and time frame, if a particular scope is indicated. If a client accepts the proposal, JPR needs only a purchase order to start, and performs short or long term assignments as the client requests. A step at a time is often practical.

11. Is every IE consultant effective with all productivity issues?

No. Some university programs include IE and Systems, with a major computer interest. JPR leaves the systems work for someone else, for instance.

A web page may inform, but it can't match generalities to your particular circumstances. So contact me; I'll be glad to answer your specific inquiry, and to discuss how industrial engineering principles can benefit your organization. There's no cost or obligation.

Jack Greene at 843-422-1298, or email jack@jacksonproductivity.com