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Part 1 History and Perspective of Industrial Engineering 1

1 HISTORY OF ENGINEERING AND DEVELOPMENT OF INDUSTRIAL ENGINEERING 1

1.1．Introduction 1

1.2．Early Developments 2

1.3．The Modern Era 3

1.4．The Engineering Process 5

1.5．Engineering as a Profession 6

1.6．Professional Ethics 8

1.7．Professional Licensing 8

1.8．Engineering Education and ABET Accreditation 10

1.9．Chronology of Industrial Engineering 12

1.10．Industrial Engineering Organizations 15

Contents 17

PREFACE 17

1.11．Definition of Industrial Engineering 18

1.12．Industrial Engineering Education 18

1.13．Impact of Related Developments 19

1.13.1 Impact of Operations Research 19

1.13.2 Impact of Digital Computers 20

1.13.3 Emergence of Service Industries 21

1.14．Relationship to Other Engineering Disciplines 21

1.15．Challenges of the Future 23

2.1．Introduction 25

2 INDUSTRIAL AND SYSTEMS ENGINEERING 25

2.2．Industrial and Systems Engineering Design 26

2.2.1 Human Activity System 26

2.2.2 Management Control System 26

2.3．Typical I. S.E.Activities 28

2.3.1 Production Operations 28

2.3.2 Management Systems 30

2.3.3 Corporate Services 31

2.4．Relationship to Total Organization 33

2.5．Internal Organization of the I. S.E. Function 36

2.6．Effectiveness Measures for the I. S.E. Function 36

2.7．The Nature of“Systems” 36

2.7.1 Definitions 37

2.7.2 System Classifications 38

2.8．Feedback Control in Systems 38

Part 2 Industrial and Systems Engineering Methodologies 43

3 MANUFACTURING ENGINEERING 43

3.1．Introduction 43

3.2．Product-Production Design Interaction 44

3.3．Process Engineering 45

3.3.1 Defining Product Structure and Specifications 45

3.3.2 Assessing Manufacturability 48

3.3.3 Determining Processes Capable of Producing the Part 48

3.3.4 Evaluating the Cost of Each Process 50

3.3.6 Documenting the Process 55

3.3.5 Determining the Sequence of Operations 55

3.4．Industrial Processes 56

3.4.1 Refining and Alloying 56

3.4.2 Casting 58

3.4.3 Metal Forming 59

3.4.4 Metal Cutting 60

3.4.5 Welding 64

3.4.6 Assembly 67

3.4.7 Finishing 67

3.5．Ancillary Functions 68

3.5.1 Tool,Jig,and Fixture Design 68

3.5.2 Cost Estimating 70

3.5.3 Maintenance Systems Design 71

3.5.4 Packaging Systems 72

3.6．Example 73

3.7．Computer Applications 73

4 FACILITIES LOCATION AND LAYOUT 80

4.1．Introduction to Facilities Location 80

4.2．Considerations 81

4.3．Analytical Techniques 83

4.3.1 Transportation Method of Linear Programming 84

4.3.2 Multiple Objectives 88

4.3.3 Mathematical Programming(Optional) 89

4.3.4 Public-Sector Location Problems 96

4.4．Introduction to Facilities Layout 99

4.5．General Considerations 102

4.6．Systematic Layout Planning 102

4.7．Computerized Layout Planning(Optional) 113

4.8．Impact of Computers 118

5 MATERIAL HANDLING,DISTRIBUTION,AND ROUTING 125

5.1．Introduction 125

5.2．Material Handling 126

5.2.1 Equipment Concepts 127

5.2.2 Principles of Material Handling 131

5.2.3 Quantitative Techniques 134

5.3.2 Operations Management—Routing 137

5.3.1 Warehouse Location 137

5.3．Distribution 137

5.3.3 Routing in the Public Sector 145

6 WORK DESIGN AND ORGANIZATIONAL PERFORMANCE—WORK MEASUREMENT 151

6.1．Introduction 151

6.2．Methods Improvement 154

6.2.1 Flow Process Charts 155

6.2.2 Left-Hand-Right-Hand Charts 156

6.2.3 Other Charts 160

6.2.4 Principles of Motion Economy 163

6.2.5 Human Engineering 164

6.3．Work Measurement 165

6.3.1 Direct Time Study 167

6.3.2 Time Study Standard Data 171

6.3.3 Predetermined Times 173

6.3.4 Predetermined time Standard Data 174

6.3.5 Work Sampling 174

6.4．Organizational System Performance Measurement 175

6.4.1 Productivity Measurement Basics 175

6.4.2 Normative Productivity Measurement Model 176

6.4.3 Multifactor Productivity Measurement Model 178

6.5．Computers and Work Measurement and Design 178

7 OPERATIONS PLANNING AND CONTROL 183

7.1．Introduction 183

7.2.1 Demand Forecasting (Ⅰ) 184

7.2．Overview of Operations Planning and Control 184

7.2.2 Operations Planning (Ⅱ) 186

7.2.3 Inventory Planning and Control (Ⅲ) 187

7.2.4 Operations Scheduling (Ⅳ) 188

7.2.5 Dispatching and Progress Control (Ⅴ) 188

7.2.6 Interfaces 189

7.2.7 Integrating the Functions 190

7.3．Techniques for Demand Forecasting 190

7.3.1 Moving Average 190

7.3.2 Exponentially Weighted Moving Average 191

7.3.3 Regression Analysis 192

7.4．Techniques for Operations Planning 194

7.5．Techniques for Inventory Planning and Control 197

7.6．Techniques for Operations Scheduling 200

7.6.1 Purpose of Operations Scheduling 201

7.7．Dispatching and Progress Control 203

7.8．MRP Systems 203

7.9．Just-in-Time Manufacturing 207

8 QUALITY CONTROL 212

8.1．Introduction 212

8.2．A Bit of History 213

8.3．The Malcolm Baldrige National Quality Award 213

8.4．Deming's Thoughts on Continuous Improvement 216

8.5．Juran's Contributions to Quality Thought 217

8.6．Tools for On-line vs.Off-line Quality Control 218

8.7．Quality Function Deployment 218

8.8．Quality Cost Systems 220

8.9．Benchmarking 221

8.10．Tools of Statistical Process Control 223

8.10.1 Flowchart 223

8.10.2 Cause-and-Effect Diagram 226

8.10.3 Data Collection Form 227

8.10.4 Pareto Analysis 228

8.10.5 Histogram 230

8.10.6 Scatter Plot 232

8.10.7 Designed Experimentation 233

8.11．Background on Control Charts 234

8.12．Control Charts for Variables 236

8.13．Sensitivity Checks for Control Charts 241

8.14．Process Capability Analysis 241

8.15．Control Charts for Attributes 243

8.15.1 The P Control Chart 243

8.15.2 The c Control Chart 244

9 FINANCIAL COMPENSATION 252

9.1．Introduction 252

9.2．Job Analysis 253

9.3．Job Evaluation 254

9.3.2 Classification or Grade Description 256

9.3.1 Ranking Method of Job Evaluation 256

9.3.3 Factor Comparison 257

9.3.4 Point Rating 259

9.4．Wage Surveys 262

9.5．Wage Payment 266

9.5.1 Daywork 267

9.5.2 Measured Daywork 267

9.5.3 Piecework Incentive 267

9.5.4 Standard Hour 268

9.5.5 Group Plans 269

10.1.1 A Brief History of Manufacturing 275

10.1．The Second Industrial Revolution 275

10 CAD/CAM,ROBOTICS,AND AUTOMATION 275

10.1.2 Impact of Computers and Electronics 277

10.1.3 Other Recent Developments 277

10.1.4 The Factory of the Future 278

10.2．Computer-Aided Design 279

10.2.1 Computers in Product Design 279

10.2.2 Computers in Process Design 280

10.2.3 Computers in Electronics Design 281

10.3．Computer-Aided Manufacturing 282

10.3.1 Computer-Aided Process Planning 282

10.3.2 Numerical Control 283

10.3.3 The Concepts of Group Technology 285

10.3.4 Automated Storage,Retrieval,and Handling 286

10.3.5 Computer-Aided Testing and Inspection 288

10.3.6 Computer-Aided Factory Management 290

10.3.7 The Concepts of Flexible Manufacturing Systems 290

10.4．Robotics 291

10.4.1 Definition and Basic Concepts 293

10.4.2 Physical and Technical Aspects of Robots 293

10.4.3 Robotic Applications 295

10.5．Automation 296

10.6．The Promise of CIM 297

10.7．Opportunities for I.E.'s 298

11.1．Perspective 301

11 HUMAN FACTORS 301

11.2．Physiological Aspects of Human Performance 302

11.3．Psychological Aspects of Human Activities 304

11.4．Human Interface with the World of Work 305

11.4.1 Human Interface with the Work Environment 306

11.4.2 Human Interface with Machines 307

11.4.3 Human Interface with Information/Communication Systems 308

11.4.4 Human Interface with Organizationall Supervisory Structure 308

11.4.5 Human Interface with Robots and Intelligent Machines 309

12.1．Introduction 312

12.1.1 Energy Management 312

12 RESOURCE MANAGEMENT 312

12.1.2 Water Management 313

12.1.3 Hazardous Material Management 313

12.1.4 This Chapter 314

12.2．Energy Management 314

12.2.1 Why Bother? 315

12.2.2 Why Industrial Engineering? 315

12.2.3 Required Ingredients 315

12.2.4 Understanding Rate Schedules 316

12.2.5 Alternate Rate Schedules 319

12.2.6 Energy Management Opportunities 319

12.3．Water Management 322

12.4.1 Government Regulations 324

12.4．Hazardous Material Management 324

12.4.2 The Role of Industrial Engineering 325

12.5．Summary 327

13 FINANCIAL MANAGEMENT AND ENGINEERING ECONOMY 329

13.1．Introduction 329

13.2．Accounting 330

13.3．Cost Accounting 333

13.4．Engineering Economy 336

13.5．Interest Factors 337

13.5.1 Single-Payment Compound Amount Factor 338

13.5.2 Other Interest Factors 339

13.5.3 Examples 341

13.6．Back to Gadgets—Present Worth Calculations 343

13.7．Impact of the Computer on Accounting and Engineering Economy 345

14 DETERMINISTIC OPERATIONS RESEARCH 349

14.1．Introduction—Definition 349

14.2．Similarity to Industrial Engineering 350

14.3．Nature of Operations Research 351

14.3.1 Economic Order Quantity 351

14.3.2 Plant Location 351

14 3.3 Job Evaluation 352

14.3.4 Quality Control 352

14.3.5 Others 352

14.4．Categorization of Operations Research 352

14.4.2 Probabilistic Approach 353

14.4.1 Deterministic Approach 353

14.6．Mathematical Programming 354

14.5．Deterministic Operations Research 354

14.7．Unconstrained Optimization 355

14.8．Linear Programming 362

14.8.1 Assignment Problem 367

14.8.2 Transportation Problem 369

14.9．Other Techniques 372

14.9.1 Nonlinear Programming 372

14.9.5 Geometric Programming 373

14.10．Impact of Computers 373

14.9.6 Other Programming 373

14.9.4 Quadratic Programming 373

14.9.3 Zero-One Programming 373

14.9.2 Integer Programming 373

15 PROBABILISTIC MODELS 378

15.1．Introduction 378

15.2．Queueing Theory 378

15.2.1 Queueing System Structure 379

15.2.2 Queueing Notation 380

15.2.3 Single-Service Channel 381

15.3．Inventory Control 384

15 3.1 Single-Period Model—No Setup Cost 384

15.3.2 Lot Size-Reorder Point Models 387

15.3.3 Periodic Review Models 388

15.4．Markov Chains 389

15.4.1 Regular Markov Chains 390

15.4.2 Absorbing Markov Chains 392

15.5．Impact of Statistics and Computers 393

16 SIMULATION 396

16.1．Introduction 396

16.2．Simulation Examples 397

16.3．Random Number Generation 403

16.4．Time-Flow Mechanism 407

16.5．Simulation Languages 407

17.1．Introduction 411

17 PROJECT MANAGEMENT 411

17.2．Project Planning Networks 413

17.3．Critical Path Method 415

17.3.1 Forward Pass 417

17.3.2 Backward Pass 417

17.3.3 Total Activity Slack 419

17.3.4 Critical Path 419

17.4．Program Evaluation and Review Technique 419

17.5．Time-Cost Trade-offs 424

17.6．Resource Leveling 429

18.1．Introduction 432

18 SYSTEMS CONCEPTS 432

Part 3 Integrated Systems Design 432

18.2．Introduction to Systems Thinking 433

18.2.1 Origin ofSystems Thinking 433

18.2.2 Hierarchical Nature of Systems 434

18.3．Definitions and Terminology 436

18.4．Systems Engineering 440

18.4.1 Systems Analysis and Design 440

18.4.2 The Systems Design Process 440

18.5．System Representation 442

18.5.1 Block Diagrams 442

18.5.2 Transfer Functions 443

19.1．Introduction and Perspective 448

19 MANAGEMENT SYSTEMS DESIGN 448

19.2．A Systems View of an Organization 449

19.2.1 Gaining a Perspective 449

19.2.2 Finding a Starting Point 450

19.2.3 Universal Outcome Goals 452

19.2.4 Determining Goals and Objectives 453

19.2.5 A Unified Framework 454

19.3．Organization Design 456

19.3.1 Specification of Objectives 458

19.3.2 Determination of Functions 459

19.3.3 Grouping the Functions 459

19.3.6 Management Controls 460

19.3.4 Functional Objectives 460

19.3.5 Job Descriptions 460

19.3.7 Organization Design Is Continuous and Dynamic 461

19.3.8 Organization Structures 461

19.3.9 Coordination within the Organization 462

19.3.10 Keeping the Design Current 463

19.4．Providing Management Controls 463

19.5．The Organization Life Cycle 464

19.5.1 Life Cycle Stages of an Organization 464

19.5.2 Organizational Renewal and Redesign 465

19.5.3 The Learning Organization 466

20.1．Perspective 469

20 COMPUTERS AND INFORMATION SYSTEMS 469

20.2．Basic Concepts of Information Systems 470

20.3．The Process of Designing Information Systems 472

20.3.1 Feasibility Study 472

20.3.2 Systems Analysis 472

20.3.3 General Systems Design 474

20.3.4 Systems Evaluation and Justification 474

20 3.5 Detail Systems Design 475

20.3.6 Systems Implementation 475

20.3.7 Systems Operation and Maintenance 476

20.4．Data-Base Management Systems 476

20.5．Data Communications Networks 479

21 PERSONNEL MANAGEMENT 483

21.1．Introduction 483

21.2．Selection,Testing,and Placement 484

21.3．Performance Appraisal,Training,Education,and Promotions 486

21.4．Job Analysis and Description 490

21.5．Labor Relations 490

21.6．Safety Programs 492

21.7．Benefits and Services 493

21.8．Motivation,Supervision,and Communications 494

20.8.1 Motivation 494

20.8.2 Supervision 496

20.8 3 Communications 497

21.9．Engineering Management 498

Appendices 501

A PROBABITITY AND STATISTICS 501

A.1．Introduction 501

A.2．Basic Probability Theory 502

A.2.1 Sample Space 502

A.2.2 Events 502

A.2.3 Probability of an Event 503

A.2.4 Rules of Operation 503

A.2.5 Combinations 504

A.3．Random Variables 505

A.4．Estimating Probabilities 506

A.5．Some Important Probability Distributions 508

A.5.1 Discrete Distribution Properties 509

A.5.2 Binomial Distribution 509

A.5.3 Poisson Distribution 511

A.5.4 Uniform Distribution 513

A.5.5 Continuous Distribution Properties 514

A.5.6 Normal Distribution 514

A.5.7 Exponential Distribution 516

A.5.8 Rectangular Distribution 516

A.5.9 Distribution Summary 517

A.6.2 Variance 518

A.6.1 Mean 518

A.6．Expected Values and Variability 518

A.7．Populations and Samples 520

A.7.1 Population 520

A.7.2 Sample 521

A.7.3 Sample Statistics 521

A.7.4 Distribution of Sample Means 522

A.8．Central Limit Theorem 523

B TABLES 527

Table B.1．Poisson Distribution—Cumulative 528

Table B.2．Normal Distribution—Cumulative 531

INDEX 533