Frequently Asked Questions about

An Industrial Engineer and Productivity

 

1. What does an Industrial Engineer focus on?

Productivity, throughout an organization. Productivity is defined as output per unit of 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 does an IE use?

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, JPR will 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 November 2009 labor statistics show productivity surged at a 9.5 percent annual rate, so many organizations are making headway. When improvements are made, they not only affect results at the time, but also carry over into anto 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, 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?

That depends on the company and its situation. Start with your big problems, big costs, big opportunities, major constraints.

Consider both big-picture, 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, and make a contribution of a more limited nature. Cherry pick; address those issues that will contribute the most results with the least effort. Apply 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.

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.

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. JPR does nor charge for initial discussions and proposals.

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 626-375-2468, or email jack@jacksonproductivity.com