1. Chapter -1 Introduction to Industrial Engineering
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2. The course subjects
The course presents the variety of subjects that occupy the Industrial Engineer. The emphasis is on the broad perspective of the Industrial Engineering (IE) profession. IE includes a wide variety of subjects related to planning the organizational operations of both manufacturing and service industries, the layout planning, the functional planning, the material handling, the quality control and operational decision making.
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3. Studying Framework · Course Lectures · Textbook:
·Avraham Shtub & Yuval Cohen: Introduction to Industrial Engineering. CRC Press, 2016.
· Accompanying slides
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4. Background: Why IE? Fierce Competition in Economy.
Customers demands are rising.
Challenge for industries to produce goods of right quantity, quality , in time and at minimum cost.
Industrial Engineering (IE) plays a pivotal role in meeting these challenges.
We have various techniques in Industrial Engineering to analyse and improve the work methods, to eliminate waste, proper allocation and utilization of resources.

5. The Role of Engineering
Engineering (design): A process of translating
the functional requirements and need fulfillment
to formal engineering specifications:
– as clear instructions for execution
– by an experienced operator.
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6. The roles of an Industrial Engineer
 Industrial Engineers (IEs) Design the organizational operations, including:
Methods
Processes
Schedules
Quality & Procurement procedures
Layout and Ergonomic workplace design
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7. Industrial Engineering Definition
American Institute of Industrial Engineers (AIIE) defines Industrial Engineering as follows:
Industrial Engineering is concerned with the design, improvement and installation of integrated system of men, materials and equipment. It draws upon specialized knowledge and skills in the mathematical, physical sciences together with the principles and methods of engineering analysis and design to specify, predict and evaluate the results to be obtained from such system.

8. The objectives of IE
The main objectives of industrial engineering are:
1- Helping the organization achieving its goals by planning its operations and contingencies.
2- Improving the organization performance by increasing its productivity, quality and competitiveness.
3- Improving the effective utilization of resources and time. Eliminating waste.
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9. Management Components
Planning
Organizing
Staffing
Directing
Motivating
Leading
Controlling
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10. IE Work Tools: Basic Economics and Finance tools
Human factor management tools
Mathematical models (i.e. Optimization)
Information Systems tools
Engineering (physics, drawing, specifications)
Decision making
Management tools (e.g. Project management)
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11. Techniques of Industrial Engineering
Following tools and techniques are used to improve productivity of the organization by optimum utilization of resources.
1- Method Study.
2- Time Study (Work Measurement).
3- Motion Economy.
4- Financial and Non Financial Incentives.
5- Value Analysis.
6- Production, Planning and Control.
7- Inventory Control.
8- Job Evaluation.
9- Material Handling Analysis.
10-Ergonomics (Human Engineering).
11- System Analysis.
12- Operations Research Techniques.

12. Historical Contributions to Industrial Engineering
Adam Smith: through his book titled Wealth of Nations laid foundation to scientific manufacturing. Through his concept of division of labour which included the skill development, time savings and the use of specialized machine was able to influence.
James Watt: Steam Engine advanced the use of mechanical power to increase productivity. Industrial Revolution.

13. Historical Contributions to Industrial Engineering
Frederick Taylor was a mechanical engineer and initiated investigations of better work methods in Westinghouse corp. He proposed following actions:
Data Collection and standards for workers.
Scientifically training of workers.
Cooperation between management and labour for better production.
Divide work between management and labour and assigning to those who are best suited.

14. Historical Contributions to Industrial Engineering
1893- Henry L. Gantt:
Measurement of management results by Gantt Charts.
Recognition of social responsibility of business and industry.
Advocated training of workers by management.
1917- Frank and Lillian Gilbreth: developed micro-motion study, a breakdown of work into fundamental elements called therbligs - as a tool for work analysis.

15. Historical Chronological Review of IE Development
1911 – F. Taylor published “The Principles of Scientific Management”. Management as a well defined methodology that involves quantitative measures.
1913 – Henry Ford – The integrated assembly line. The integration between work stations to reduce the average time per car. At the beginning of 1913 the time per car was 12.5 hours, 8 months later it was reduced to 93 minutes.
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16. Historical Chronological Review of IE Development
1917 – Harris – Inventory Management Model
1930s – Howthorn (Harvard) trials for measuring the effects of environmental changes on workers’ performance.
1930s – Significant advance in applying SPC and Statistical analysis in Quality Control (QC).
1940s – Birth of Operations Research (OR) – Mathematical models for optimizing operational plans.
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17. Historical Chronological Review of IE Development
1950s and 1960s – The birth of the integrative approach, and the Industrial Engineering as a profession.
1970s and 1980s – Computerization of data and operations research. Computer based management tools. Material Requirement Planning (MRP) systems.
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18. Historical Chronological Review of IE Development
1980s and 1990s – Most organizations adopt philosophical tools such as JIT (Just In Time), TQC (Total Quality Mgt.), and Six Sigma. The MRP systems extend to MRP-II.
2000s - ISO-9000, ERP systems, Supply Chain information sharing, search-based optimization.
2010s – Analytics, Cloud computing, Big data, Data mining.
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19. The Competitive Market: Strugling to stay competitive
Starting from the 1990s, the globalization and
the globalized information systems - created increasing global competition in the business world.
Any organization in a competitive market, must give the first priority to its customers and their needs, requirements, and wants.
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20. Basic Processes
Development process – from idea to a new product or new process, then to a well operating prototype.
Infrastructure construction – from the prototype to a successful design, implementation and testing of the facility.
Sales – From the market-study and its requirement identification, to receiving the orders from customers.
Supply – From receiving the customer’s order, to the delivery of products and getting paid.
Service – From the customer call for service to a service completion satisfying the customer.
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21. The process of supplying orders
Several chapters of the book deals with the process of supplying orders. One of the chapters even focuses on the process that starts from a customer order, and continues to the delivery of the ordered products or services, achieving customer satisfaction.
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22. ERP - The Dynamics of Operation Management FINANCIAL & ACCOUNTING
Account Payable
General Ledger
Account Receivable
Product Costing
PURCHASING
PRODUCTION
MARKETING &
SALES
Material Requirement Planning (MRP I & II)
BOM
Forecasting S U P L I E R C U S T O M E R
Master Production Schedule (MPS)
RCCP
Purchase Order processing & Logistic
Production (W/O, CRP)
Sales Order Processing, Sales Management and Distribution (Firm order, Shipment & Inventory)
Purchasing vendor analysis (supplier management)
Inventory Management
RM, Parts, WIP & FG
Sales Analysis
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23. Studying Engineering and Management
An approach based on models – Developing models dedicated for solving problems or supporting decisions in engineering and management.
Case Study Approach – Analyzing a case study based on description of specific relevant situations as the case-studies.
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24. Simplifying Assumptions
Simple Model
Reality (problem)
Simplifying Assumptions
Model
Manipulating
Analyzing
Optimizing
Decision
(solution)
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25. Simplifying assumptions
Building Models
Real Problem
Simplifying assumptions
Sensitivity analysis
Model of
the problem
Model Solution
Model analysis
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26. An example of a car fueling model+
Fuel level
Proximity of gas station
Refuel Decision
Fuel consumption
Load
Speed
Road condition -
Current Location
Cost per Gallon
Levels and rates flow diagram (+ is positive correlation, - is negative)
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27. Process Management Integrative Dynamic Management entails:
Integration of processes
Integration of Organizational Units
Integration of Data and Models
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28. Industrial Engineering in Service Sector
The service sector has grown considerably in the last century employing large number of industrial engineers in the various service industries such as:
1- Health Service.
2- Government Organizations.
3- Banking & Insurance
4- Transportation and Logistics
5- Utilities (electricity, water, gas, etc.)

29. The Operational Simulator
Simulation approach
Case study approach
Dynamic approach
Model based approach
Integrative approach
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