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Industrial Engineering

and

Management

Pravin Kumar

Contents

Chapter 1 Industrial Engineering and Production Systems 1

1.1 Introduction 1 1.2 Historical Development of Concepts in Industrial Engineering and Management 2 1.3 Production Systems 4 1.4 Selection of Production Systems 8 1.5 Productivity 9 Summary 19 Multiple Choice Questions 20 Review Questions 21 Exercise Problems 22 References and Further Readings 23

Chapter 2 24

Chapter 3

Facility Location and Layout

2.1 Introduction 2.2 Facility Location 2.3 Transportation Method 2.4 Centroidal Method 2.5 Facility/Plant Layout 2.6 Systematic Layout Planning 2.7 Block Diagram 2.8 Assembly Line Balancing 2.9 Group Technology 2.10 Cellular Manufacturing Summary Multiple Choice Questions Review Questions Exercise Problems References and Further Readings

Forecasting 50

3.1 Introduction 50 3.2 Forecasting Methods 52 3.3 Time-series Forecasting 54 3.4 Forecasting Performance Measurement 69

iv Contents

 - Summary - Multiple Choice Questions - Review Questions - Exercises - References and Further Readings 

• Chapter 4 Aggregate Planning
  • 4.1 Introduction
  • 4.2 Aggregate Planning Strategies
  • 4.3 Mixed Strategy
    • Summary
    • Multiple Choice Questions
    • Review Questions
    • Exercise Problems
    • References and Further Readings
• Chapter 5 Capacity Planning: MRP, MRP II and ERP
  • 5.1 Introduction
  • 5.2 Materials Requirement Planning
  • 5.3 MRP II
  • 5.4 Enterprise Resource Planning
    • Summary
    • Multiple Choice Questions
    • Review Questions
    • Exercise Problems
    • References and Further Readings
• Chapter 6 Inventory Control
  • 6.1 Introduction
  • 6.2 Classifications of Inventory
  • 6.3 Inventory Costs
  • 6.4 Continuous and Periodic Inventory Review Systems
  • 6.5 Economic Order Quantity
  • 6.6 Reorder Point
  • 6.7 Order Quantity for Variable Demand
    • Summary
    • Multiple Choice Questions
    • Review Questions
    • Exercise Problems
    • References and Further Readings
• Chapter 7 Product Design and Development Contents v - 7.1 Introduction to Engineering Design - 7.2 Product Concept and Concept Selection - 7.3 Product Life Cycle - 7.4 Morphology of Design - Differentiation and Diversification 7.5 Standardization, Simplification, - 7.6 Interchangeability and Modular Design - 7.7 Concurrent Engineering - 7.8 Economic Considerations in Product Design - 7.9 Aesthetic Considerations in Design
  • 7.10 Ergonomic Considerations in Design - Summary - Multiple Choice Questions - Review Questions - References and Further Readings
• Chapter 8 Manufacturing Systems
  • 8.1 Introduction
  • 8.2 Flexible Manufacturing System
  • 8.3 CAD/CAM
  • 8.4 Lean Manufacturing
  • 8.5 Agile Manufacturing - Summary - Multiple Choice Questions - Review Questions - References and Further Readings
• Chapter 9 Material Handling Systems
  • 9.1 Introduction
  • 9.2 Relationship between Material Handling and Plant Layout
  • 9.3 Functions of Material Handling Systems
  • 9.4 Objectives of Material Handling Systems
  • 9.5 Principles of Material Handling Systems
  • 9.6 Types of Material Handling Equipments - Summary - Multiple Choice Questions - Review Questions - References and Further Readings
• Chapter 10 Production Planning and Control vi Contents
  • 10.1 Introduction
  • 10.2 Objectives of PPC
  • 10.3 Production Planning
  • 10.4 Factors Affecting PPC - Summary - Multiple Choice Questions - Review Questions - References and Further Readings
• Chapter 11 Work Study and Ergonomics - 11.1 Introduction - 11.2 Method or Motion Study - 11.3 Micromotion Study - 11.4 Memo-motion Study - 11.5 Time Study or Work Measurement - 11.6 Work Measurement Techniques - 11.7 Predetermined Motion Time System - 11.8 Principle of Motion Economy - 11.9 Work Sampling
  • 11.10 Job Design
  • 11.11 Job Rating or Evaluation
  • 11.12 Merit Rating - Summary - Multiple Choice Questions - Review Questions - Exercise Problems - References and Further Readings
• Chapter 12 Reliability and Maintenance Engineering
  • 12.1 Introduction
  • 12.2 Reliability Curves
  • 12.3 Failure Pattern
  • 12.4 Basic Reliability Models
  • 12.5 Evaluation of System Reliability ( R S )
  • 12.6 Improvement in Reliability of a System
  • 12.7 Design Guidelines for Reliability
    • 12.8 Reliability Testing Contents vii
    • 12.9 Maintainability
  • 12.10 Design for Maintainability
  • 12.11 Maintenance Costs
  • 12.12 Availability
  • 12.13 Serviceability
  • 12.14 Housekeeping and 5S Concepts - Summary - Multiple Choice Questions - Review Questions - Exercise Problems - References and Further Readings
• Chapter 13 Cost Accounting and Depreciation
  • 13.1 Introduction
  • 13.2 Cost Elements
  • 13.3 Cost Accounting
  • 13.4 Computation of Material Variances
  • 13.5 Break-Even Analysis
  • 13.6 Depreciation - Summary - Multiple Choice Questions - Review Questions - Exercise Problems - References and Further Readings
  • among Alternatives Chapter 14 Replacement Analysis and Selection
  • 14.1 Introduction
  • 14.2 Replacement of Items that Fail Completely
  • 14.3 Replacement of Items that Deteriorate
  • 14.4 Replacement of the Defender - Summary - Multiple Choice Questions - Review Questions - Exercise Problems - References and Further Readings
• Chapter 15 Value Engineering viii Contents
  • 15.1 Introduction
  • 15.2 Types of Value
  • 15.3 Seven Phases of Value Analysis
  • 15.4 Application of Value Analysis
  • 15.5 Advantages of Value Analysis
  • 15.6 Value Analysis of a Graphite Pencil by Matrix Method
  • 15.7 Function Analysis System Technique
    • Summary
    • Multiple Choice Questions
    • Review Questions
    • Exercise
    • References and Further Readings
• Chapter 16 Linear Programming and Transportation Problem
  • 16.1 Introduction to Linear Programming
  • 16.2 Simplex Technique
  • 16.3 Big-M Method
  • 16.4 Two-Phase Method
  • 16.5 Duality
  • 16.6 Graphical Method
  • 16.7 Introduction to Transportation Problem
    • Solution of Transportation Model 16.8 Tabular Method to find the Basic Feasible
  • 16.9 Test of Optimality using MODI or U-V Method
    • Summary
    • Multiple Choice Questions
    • Review Questions
    • Exercise Problems
    • References and Further Readings
• Chapter 17 Assignment and Sequencing Models
  • 17.1 Introduction to Assignment Problem
  • 17.2 Sequencing Problem
    • Summary
    • Multiple Choice Questions
    • Review Questions
    • Exercise Problems
    • References and Further Readings
• Chapter 18 Waiting Line Theory Contents ix
  • 18.1 Introduction
  • 18.2 The Service Characteristics
  • 18.3 Mathematical Distributions
  • 18.4 Waiting Line Models - Summary - Multiple Choice Questions - Review Questions - Exercise Problems - References and Further Readings
• Chapter 19 Principles of Management - 19.1 Introduction - 19.2 Classical School of Management - 19.3 Systems Approach - 19.4 Contingency Approach - 19.5 Behavioural Approach - 19.6 Quantitative Approach - 19.7 Functions of Management - 19.8 Levels of Management - 19.9 Skills of Manager
  • 19.10 Managerial Roles
  • 19.11 Theory of Motivation
  • 19.12 Administration and Management - Summary - Multiple Choice Questions - Review Questions - References and Further Readings
  • Design and Structure Chapter 20 Firm’s Ownership, Organizational
  • 20.1 Introduction
  • 20.2 Sole Proprietorship
  • 20.3 Cooperative Society
  • 20.4 Partnership
  • 20.5 Corporation
  • 20.6 Joint Hindu Family Business
  • 20.7 Joint Stock Company
  • 20.8 Multinational Corporation
    • 20.9 Departmentalization x Contents
  • 20.10 Classification of Organizations
  • 20.11 Delegation of Authority - Summary - Multiple Choice Questions - Review Questions - References and Further Readings
• Chapter 21 Project Management PERT and CPM
  • 21.1 Introduction
  • 21.2 Project Life Cycle
  • 21.3 Project Appraisal
  • 21.4 Project Structure
  • 21.5 Terminology used in Project Scheduling
  • 21.6 Project Crashing (Optimization through CPM)
  • 21.7 Resource Levelling - Summary - Multiple Choice Questions - Review Questions - Exercise Problems - References and Further Readings
• Chapter 22 Total Quality Management - 22.1 Introduction - 22.2 Definitions of Quality - 22.3 Differences between Quality of Goods and Services - 22.4 Dimensions of Quality - 22.5 Quality Planning, Assurance and Control - 22.6 Costs of Quality - 22.7 Evolution of Quality Concepts - 22.8 Quality Gurus and their Philosophies - 22.9 Total Quality Management
  • 22.10 7-Basic Tools for Quality Control
  • 22.11 Quality Function Deployment
  • 22.12 Quality Awards - Summary - Multiple Choice Questions - Review Questions - References and Further Readings
• Chapter 23 Statistical Quality Control Contents xi - 23.1 Introduction - 23.2 Sources of Variations - 23.3 Chart Techniques - 23.4 Control Charts for Variables - 23.5 Control Chart for Trends - 23.6 Process Under Control - 23.7 Process Out of Control - 23.8 Process Capability and Specification Limits - 23.9 Process Capability
  • 23.10 Limitations of Chart for Variables
  • 23.11 Control Charts for Attributes
  • 23.12 Count of Defect Chart
  • 23.13 Demerits Classification and Control Chart
  • 23.14 Lot-by-Lot Acceptance Sampling
  • 23.15 Sampling Plan
  • 23.16 Properties of OC Curves
  • 23.17 Consumer–Producer Relationship
  • 23.18 Sampling Plan Design
  • 23.19 Average Outgoing Quality
  • 23.20 Average Sample Number
  • 23.21 Average Total Inspection
  • 23.22 Sequential Sampling Plan - Summary - Multiple Choice Questions - Review Questions - Exercise Problems - References and Further Readings
• Chapter 24 Six-Sigma, ISO 9000 and
  • 24.1 Introduction
  • 24.2 6 σ Measurement
  • 24.3 DMAIC Methodology
  • 24.4 Six-Sigma Belts
  • 24.5 ISO
  • 24.6 Eight Management Principles - of the ISO 9001 Standard 24.7 Major Changes between the 1994 and 2000 Versions
  • 24.8 Implementing ISO 9000 QMS
    • 24.9 EMS: Introduction xii Contents
  • 24.10 ISO - Summary - Multiple Choice Questions - Review Questions - References and Further Readings
• Chapter 25 Supply Chain Management
  • 25.1 Introduction
  • 25.2 Four Fundamentals of Supply Chain (4Fs of SCM)
  • 25.3 Drivers of Supply Chain Performance
  • 25.4 Risk Pooling
  • 25.5 Bullwhip Effect
  • 25.6 Supply Chain Information Systems - Summary - Multiple Choice Questions - Review Questions - References and Further Readings
• Chapter 26 Decision-Making
  • 26.1 Introduction
  • 26.2 Decision-Making Environments
  • 26.3 Decision Tree Analysis - Summary - Multiple Choice Questions - Review Questions - Exercise Problems - References and Further Readings
  • Appendix
  • Appendix
  • Appendix
  • Appendix
  • Appendix

Preface

Industrial Engineering & Management is a core subject for Mechanical and Production Engineering students. It is also taught to the students of other engineering branches as an open elective subject. This book is also very useful regarding Production and Operations Management, Statistical Quality Control, Total Quality Management for undergraduate students of engineering and post graduate students of management. It has been observed that very few good books are available in Industrial engineering, which fulfills the complete requirements of engineering students. Many books are available on the same title, but they are diverted from their focus; many contents of those books are not related to Industrial Engineering. The contents related to industrial engineering are not properly addressed and also there is a lack of flow among the contents. To remove these discrepancies, I planned to compile a book focused on core knowledge of Industrial Engineering and Operations Management. The main purpose of the proposed book is to fulfill the requirements of engineering students. I taught the same for last 15 years. In this book, the views of many faculty as well as students have been incorporated. The topics have been explained in depth with the suitable examples. Presentation of the topics is the user friendliness. Simple language, proper sequence, useful contents, and aesthetic design are the strength of this book. These are very helpful for better understanding of the readers. At the end of the each chapter, some multiple choice questions, review questions and unsolved numerical problems are given. The solution of the unsolved problems and the power point presentation of each chapter are available online. The reader of this book can access the website easily. The contents of this book are broadly divided into three parts: Industrial Engineering, Operations Research, and Operations Management. In Industrial Engineering, production systems, productivity, plant location and layout, forecasting, inventory control, manufacturing systems, material handling systems, value engineering, production planning and control, cost accounting and depreciation, work study have been discussed. In Operations Research, only those topics are covered, which are required for better understanding of Industrial Engineering such as linear programming, transportation problems, assignment problems, sequencing of jobs, replacement analysis, queuing theory, and decision Making. In Operations Management, those topics are covered that are required for shop floor/production management, e.g., aggregate planning, material requirement planning, enterprise resource planning, project management, principles of management, total quality management, statistical quality control, ISO 9000 & 14000, and supply chain management. I hope, this book will be very useful for the readers and fulfill their requirements.

About the Author

Pravin Kumar obtained his Ph.D. degree from IIT Delhi; M.Tech. from IT BHU (Now IIT BHU), Varanasi; and B.Sc. Engg. (Mechanical) from B.C.E. Bhagalpur. Presently, he is working as an Assistant Professor in Department of Mechanical Engineering, Delhi Technological University (Formerly Delhi College of Engineering). He has more than 15 years of teaching and research experience. He has worked in various engineering colleges and business schools such as IIIT Allahabad, Asia-Pacific Institute of Management Delhi, Delhi School of Management, Career Institute of Technology and Management, Faridabad. His areas of expertise are Industrial Engineering, Operations Management, Quality Management, Operations Research, Supply Chain Management, and Production Engineering. He has developed many curriculums related to Production and Operations Management at Delhi Technological University, IIIT Allahabad, Career Institute of Technology and Management. He is a life member of Indian Institution of Industrial Engineering, System Society of India, and Society of Operations Management, India. He has published more than 30 research papers in International Journals and Conferences and also authored some books on Engineering Economy and Mechanical Engineering.

Acknowledgment

I am grateful to the following people for their help and motivation in the completion of this book. Dr. Nao Kant Deo, Dr. Rajkumar Singh, Prof. D. S. Nagesh, Prof. Samsher, Dr. R. K. Singh, Prof. R. S. Mishra, Prof. Moinudddin, Prof. S. K. Garg, Prof. Pradeep Kumar for his moral support and motivation in research and publication work. My colleagues from DTU Mr. Nand Kumar, Mr. K. Srinivas, Mr. Girish Kumar, Mr. M. S. Niranjan, Mr. N. A. Ansari, Mr. M. S. Rangnath, Md. Zunaid, Mr. R. K. Yadav, Mr. Sanjay Kumar, Dr. Suresh Kumar, Mr. Rakesh Kumar, Mr. Saurabh Agrawal, Dr. A. K. Agrawal, Dr. Qasim Murtza, Dr. Amit Pal, Dr. K. Manjunath, Mr. D. K. Vishwakarma, Mr. Devanand, and Dr. Anil Haritas for their encouragement and moral support. When I conceptualized the idea to write a book on Industrial Engineering and Management at that time I was working as an Associate Professor at Indian Institute of Information Technology, Allahabad (on lien). I am thankful to the faculty of IIITA, Prof. Anurika Vaish, Dr. Vrijendra, Dr. Abhishek Vaish, Dr. Ranjit Singh, Dr. Saurabh Mishra, Dr. Shashikant Roy, and Prof. M.D. Tiwari (Vice Chancellor, Barkatulla University, Bhopal) for their cooperation and valuable suggestions. I specially thank to my Guru Prof. Ravi Shankar and Prof Surendra S. Yadav from IIT Delhi for their guidance and appreciation. I am also thankful to the Delhi Chapter of Indian Institution of Industrial Engineering (IIIE), Prof J. M. Mahajan, Prof. D. K. Banwet, Mr. R. Sampat,

xvi About the Author

Mr. C. P. Gupta, Mr. A. K. Guha for their encouragement and support. I acknowledge the support of my friends Dr. Krishnendu, Mr. D. K. Agrawal, Dr. Vijay Kumar, Dr. Faisal Ahmad, Mr. S. K. Jha, Dr. Basant Bhuiyan, Prof. Tilak Raj, Mr. Vinit Jain, and Mr. Mahesh Chand. I am grateful to my wife Dr. Prerna Sinha and Sons Harshit Anand and Arpit Anand for their patience and loving participation in accomplishing this work. I also express my gratitude to my parents, elder brothers and sister, father-in-law and mother-in-law, who remain a continuous source of inspiration for me. I acknowledge the appreciation of Ms. Kanchan Prabha, Asst. Legal Manager, Indian Overseas Bank, Barauda, Anand Vardhan, and Priyanka Rani. I am also grateful to all the well-wishers, whose names could not be mentioned here, for their direct and indirect support in accomplishing the work. Last but not least, I am immensely grateful to the editorial team of Pearson Ms. Anita Yadav and Mr. Vipin Kumar for their continuous support during book writing and editing processes. This book could not have attained its present form both in content and presentation, without their active interest and direction. They devoted their valuable time to bring the book in present form.

Pravin Kumar New Delhi