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prepared by… 

Aakash Kr. Varma

Aarti Gandhi

Abhay Malik

Abhisek Maji

Origin of the Industrial System

Chapter -1

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Origin of the Industrial System

Industrial Engineering : Preface

Formulated science of management

It directs the efficient conduct of 

manufacturing,constuction,transportation,or even commercial

enterprises-of any undertaking,indeed,in which human labor is

directed to accomplishing any kind of work.

Emerged due to rise and expansion of manufacturing system.

 Applied science that has drawn upon mechanical engineering,

economics, sociology, psychology, philosophy and accountancy,

to fuse from theses older sciences a distinct body of science of 

its own. 2

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Origin of the Industrial System

Cycle of operations

Money

RawMaterial

& Labor 

Finishedproducts

andservices

Gross

Profit

Last money- First money = gross profit

Part of gross profit is absorbed in the operations of purchase,

manufacture, sale and administration (conversion losses)3

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Origin of the Industrial System

Duties of Industrial Engineer

Co-ordinate all departments in any industry

Efficient and economical production: Efficiency engineer 

Direction of natural power and manpower 

Technical counsel and superintendence of technical

elements

Management- executive and administrative of whole

dynamic organization including Men, Machinery andEquipment

Definition and direction of financial and commercial

policies

Doesn't deal with mechanical consideration of  4

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Origin of the Industrial System

Industrial engineer’s Work: Phases 

Analytical Creative

Passive

Deals with existent data

Data analysis: increaseworking knowledge

Collection and tabulation

of statistics, cost

determination Graphical representation

of data

Pick bad/weak spots of 

business

 Apprehension of 

 Active, creative and

synthetic

Devises improvementmethods and processes

Correction of 

inefficiencies

Rearrangement of plants, departments or 

operations

New policies, wage

systems and reward

systems for employees 5

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Origin of the Industrial System

Elements of Industrial Engineering

Machinery: creation of products

Materials: input for the industrial machines

Methods: time and cost saving techniques

Management: execution, direction and

administration

Men : the human factor and the co-

ordination

Market: the sink for the products

Money: gauge and limit to adjust all other 

factorsdirection of employment of employment

Make machinery cost less by managing all other resourcesSecure proportion between expenditure and earning

Find remedies for disproportion in earnings and expenditure , if any

Material

Men

Meth

od

Mark

et

Managem

ent

Machin

ery

Mon

eyProdu

ct

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Reduction of cost: Forces

Competition Exists from foundation of world, especially with “ 

made first and sold later” 

Buyer invests where he can get best value for his

money

Earning profit even after producing best goods at

least price

Knowledge of actual cost and ability to reduce it

Efficiency

Competition leads to duplication of resources, i.e.

wastage

Better approach: Reduction of costs and elimination

of wastes 7

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Reasons for Emergence of Industrial System

Technical skills• The knowledge part

• Can’t sustain if economy is unable to make use of it 

• E.g. – Steam engine: Watt and Hero

Economical and Commercial conditions• Demand for new technology

• Ready and waiting for technology to utilize it

• Potential market

Psychological factors Emphasis on the importance of invention

Make people believe in new

Mould conditions and men to gain advantage

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Typical Layout of Vehicle Manufacturing Company

STORES

FOR

VEHICLE &ENGINE

ASSEMBLY

QUALITY /

INSPECTIO

N AREA

STORES FOR MACHINE

SHOP

PAINTING UNIT

FABRICATION UNIT

STORES FOR PAINT SHOP

PART

STORES FOR FABRICATION

CHILD PARTS

   P   A   I   N   T

   S   H   O   P

   I   N   V   E   N   T   O   R

   Y

FABRICATION INVENTORY

VEHICLE

TESTING

AREA

REST

AREA

MACHINE SHOP I

ADMINISTR

ATION

MACHINE SHOP II

VEHICLE ASSEMBLY MAINTAINANCE

DEPT

TOOLING

DEPT

ENGINE ASSEMBLYENGINE

STOCK

VEHICLE

FOR

TESTING

MACHINING INVENTORY

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Thank you… 

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