Industrial Engineering is concerned with the design, improvement, and installation of integrated systems of people, material and equipment. It draws upon specialized knowledge and skills in mathematics, physical and social science together with the principles and methods of engineering analysis and design.

Bottom line benefit

When it is all said and done, the goal is to have a system operate safely at the rated efficiency and quality throughput.

Techniques available to Industrial Engineering

  • Complexity Analysis
  • EPQ (Economic Production Quantity)
  • Downtime Analysis
  • A, B, C Analysis (Pareto Analysis)
  • Material Movement Analysis
  • PSMS (Production Scenario Management System)
  • SMED (Single Minute Exchange Die)
  • Safety Stock Determination
  • Line Validation
  • Yield Analysis
  • SKU Pruning
  • Activity Based Costing
  • Plant Layout & Design
  • Plant within Plant
  • Warehouse efficiency studies
  • Motion & Time Studies
  • Work Station Design & Ergonomics
  • Manufacturing Planning & Control Systems
  • MRP (Materials Requirement Planning)
  • Capacity Planning
  • JIT (Just In Time)
  • MPS (Master Production Schedule)
  • Equipment Acceptance
  • Line Balance “De-Bottlenecking”
  • TPM Implementation
  • Computer Simulations
  • Automatic DT Data collection
  • Line Performance Improvement Process

Industrial Engineering Techniques vs. Supply Chain

Each Industrial Engineering technique can provide insight and guidance to achieving maximum effectiveness and utilization of company assets through the entire supply chain, end result Reduce cost & Grow Profits.

Overview and examples of application

Downtime Analysis – Data Collection Pyramid approach

  • Generate FUEL for GROWTH
  • Strategy: accelerate manufacturing restructuring and reliability improvements
  • Deliver Measurable Sustained Flexibility and Reliability Benefits from TPM

Downtime Analysis

  • Identify and quantify equipment that needs attention
  • Implement TPM FI Techniques
  • Identify operator training needs
  • Provide justification to upgrade or replace equipment
  • Provide input for computer simulation

SMED Analysis

  • What is it?
    • A methodology to increase plant capacity and efficiency by optimizing the change over and cleaning process;
    • Experience has shown the SMED principle can be effectively applied to any process.

Basis for Rapid Changeover: 

Rapid response manufacturing is achieved by a ‘pit stop’ mentality.In auto racing every second counts so pit stops are highly organized and fast.

Key questions:

Can you get the changeovers on your machines faster? – are they fast and efficient? Do people know what they are doing?

Five step approach

Complexity Analysis

It is a tool used to understand the relative amount of operational/organizational effort exerted to produce a quantity of product over a given timeframe.

How can it be used?

  • Quantifies impact on production output due to different production scheduling strategies
    • Long vs. short runs
    • Campaign scheduling
    • EOQ run rules
    • Make to inventory
    • Make to order
    • Sequencing (Light to Dark or Allergens)


  • Reduces production efficiency;
  • Dilutes management’s focus;
  • Drives up cost of doing business by increasing inefficiency in everything we do.

Economic Production Quantity (EPQ) Analysis

The quantity to be manufactured at one time that minimizes the combined cost of manufacturing and cost of carrying inventory.

  • What can it be used for?
    • Identify lowest possible cost schedule for the business
    • Provide insight to understand tradeoffs of different production schedules and customer service levels.
    • Aid in developing accurate product costing for short run cost penalties or high volume price discounts

ABC Analysis

  • What is it?
  • Pareto Analysis (Sales, Profit, Costs, Etc.)
    • A = Top 20%
    • B = Upper Mid 30%
    • C =  Lower Mid 30%
    • D = Bottom 20%
  • How can it be used?
    • Identify where management effort should be focused to gain biggest bang for the buck
    • Supports SKU Pruning – low profit SKUs
    • Assist in production scheduling
      • line selection
      • plant within plant


  • We have Rediscovered Value Of Industrial Engineering
  • Benefits Of Optimizing Across Entire Supply Chain
  • Need To Accelerate Change To Plant Floor
  • New Techniques Can Be Added As We “Borrow With Pride” – Best Practice Team
  • Need To Leverage These Techniques Were Appropriate
  • Optimizing And Leveraging Existing Assets

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