Updated Industrial Engineering

8/7/2019 Updated Industrial Engineering

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Industrial Engineering

Industrial engineering is a branch ofengineering that concerns the

development, improvement,implementation and evaluation ofintegrated systems of people, knowledge,equipment, energy, material and process.

Industrial engineers work to eliminatewastes of time, money, materials, energyand other resources


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What is Industrial Engineering?

Industrial Engineering is concerned withthe design of production systems. The

Industrial Engineer analyzes and specifiesintegrated components of people,machines, and facilities to create efficientand effective systems that produce goods

and services beneficial to mankind


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There are a number of things industrialengineers do in their work to make processesmore efficient, to make products moremanufacturable and consistent in their quality,and to increase productivity.

Where as most engineering disciplines applyskills to very specific areas, industrialengineering is applied in virtually every industry.Industrial engineers typically use computer

simulation, especially discrete event simulation,for system analysis and evaluation.


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2004 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

OperationalDefinitions

Industrial Engineering


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Efficiency: Measure of how closely engineeredstandards are achieved. It is to convert the actual

minutes worked to standard minutes produced.

Efficiency Changes with skill of processors.

Utilization: The ratio of standard Minutes producedagainst total available time

Performance Tracking

Utilization = Availability X Efficiency

Availability: The percentage of total available time

that a processor actually spends processing

= (Std. Time * output) / 460

= Actual Mins. Worked / 460

(Std. Time * Output)

= ------------------------------

Actual Mins. Worked


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Performance Tracking Contd.

Resource Cost per standard Hr: Represents theactual labor cost ($) per standard hour of outputproduced

Productivity: Output measured in terms of totalEquivalent Output (including core + non coreprocesses) per person per day

Equiv. Total Output per day= ----------------------------------------

No. of processors

Total Available Hrs. * Labor Rate= ---------------------------------------------

standard Hrs. Produced

Throughput:Measured in terms of EquivalentOutput of core processes per person per day

Equiv. Core Output per day= ----------------------------------------

No. of processors


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Core / Non Core Processes

The Core Processes are the ones which form part of BOA (Bill of

Activities) for the customer deliverables / Output of the process

Ex. Contract Creation

Invoice Processing

Vendor / Customer master updation

The Non Core processes are the ones which are required because of

failure of the standard process in delivering output.

Ex. BDNs (Business Decision Needed) / Query / Follow up

Internal Rework

Re QC after rework


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Working Days and Losses


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Workforce Analysis

Work force analysis needs to take into account the capacity

reduction due to various factors

Reduction of Capacity is broadly classified into 2 categories

1. Non Availability: Non availability of the processor or system due

to reasons like training, meeting, Leave / absenteeism, server

downtime, no work

2. Efficiency: Variation from Standard time, the major contributing

factors are skill, effort, non consistent / non rhythmic work load

& un documented deviation in process steps


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Targets

1. Non Availability:

a. Non Transaction Time (Training, Meetings, Improvements) 5 to 8 %

b. Unavoidable Losses (Leave, Absenteeism) 5 to 8 %

c. Avoidable Losses (Server Downtime, No work) 1 to 2 %

Total 15% >>>>>>> Availability Target 85%2. Efficiency:

Efficiency benchmark for service environment considering all the factors

including attrition & non consistent / non rhythmic work load can be set at 85%

with the condition that when the benchmark is consistently surpassed by more

than 50% of the team, its time for revisiting the time standards.

>>>>>>> Efficiency Target 85%

Utilization Target = 0.85 X 0.85 = 72%

Updated Industrial Engineering

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