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Industrial Engineering.Pdf Copyright (C) 1999 by The McGraw-Hill Companies, Inc. All rights reserved. Use of this product is subject to the terms of its License Agreement. Click here to view. Section 17 Industrial Engineering BY B. W. NIEBEL Professor Emeritus of Industrial Engineering, The Pennsylvania State University. SCOTT JONES Professor, Department of Accounting, College of Business and Economics, University of Delaware. ASHLEY C. COCKERILL Senior Engineer, Motorola Corp. VINCENT M. ALTAMURO President, VMA, Inc., Toms River, NJ. ROBERT J. VONDRASEK Assistant Vice President of Engineering, National Fire Protection Assoc. JAMES M. CONNOLLY Section Head, Projects Department, Jacksonville Electric Authority. EZRA S. KRENDEL Emeritus Professor of Operations Research and Statistics, Wharton School, University of Pennsylvania. 17.1 INDUSTRIAL ECONOMICS AND MANAGEMENT 17.4 METHODS ENGINEERING by B. W. Niebel by Vincent M. Altamuro Plant Organization . 17-2 Scope of Methods Engineering . 17-25 Process Planning . 17-3 Process Analysis . 17-25 Process Analysis . 17-3 Workplace Design . 17-26 Just-in-Time Techniques, Manufacturing Resource Planning, and Methods Design . 17-26 Production Control . 17-4 Elements of Motion and Time Study . 17-26 Total Quality Control . 17-6 Method Development . 17-26 Control of Materials . 17-6 Operation Analysis . 17-26 Strategic Economic Evaluations . 17-7 Principles of Motion Study . 17-27 Optimization Techniques . 17-7 Standardizing the Job . 17-28 Wage Administration . 17-10 Work Measurement . 17-28 Employee Relations . 17-10 Time Study Observations . 17-28 Performance Rating . 17-29 Allowances for Fatigue and Personal and Unavoidable Delays . 17-31 17.2 COST ACCOUNTING Developing the Time Standard . 17-31 by Scott Jones Time Formulas and Standard Data . 17-31 Role and Purpose of Cost Accounting . 17-11 Uses of Time Standards . 17-32 Measuring and Reporting Costs to Stockholders . 17-12 Classi®cations of Costs . 17-12 17.5 COST OF ELECTRIC POWER Methods of Accumulating Costs in Records of Account . 17-14 by Robert J. Vondrasek and James M. Connolly Elements of Costs . 17-14 Constructed Plant Costs . 17-32 Activity-Based Costing . 17-15 Fixed Charges . 17-35 Management and the Control Function . 17-15 Operating Expenses . 17-36 Types of Cost Systems . 17-16 Overall Generation Costs . 17-37 Budgets and Standard Costs . 17-16 Transmission Costs . 17-38 Transfer Pricing . 17-17 Power Prices . 17-38 Supporting Decision Making . 17-17 Capital-Expenditure Decisions . 17-18 17.6 HUMAN FACTORS AND ERGONOMICS Cost Management . 17-18 by Ezra S. Krendel Scope . 17-39 17.3 ENGINEERING STATISTICS AND QUALITY CONTROL Psychomotor Behavior . 17-39 by Ashley C. Cockerill Skills and Errors . 17-40 Engineering Statistics and Quality Control . 17-19 Manual Control . 17-40 Statistics and Variability . 17-19 McRuer's Rule . 17-41 Characterizing Observational Data: The Average and Standard Deviation 17-19 Crossover Frequency . 17-41 Process VariabilityÐHow Much Data? . 17-20 Correlation and Association . 17-21 17.7 AUTOMATIC MANUFACTURING Comparison of Methods or Processes . 17-21 by Vincent M. Altamuro Go/No-Go Data . 17-23 Design for Assembly . 17-42 Control Charts . 17-24 Autofacturing Subsystems . 17-43 17-1 Copyright (C) 1999 by The McGraw-Hill Companies, Inc. All rights reserved. Use of this product is subject to the terms of its License Agreement. Click here to view. 17.1 INDUSTRIAL ECONOMICS AND MANAGEMENT by B. W. Niebel REFERENCES: Fabrycky and Thuesen, ``Economic Decision Analysis,'' Pren- In building an ef®cient organization, management should abide by tice-Hall. Niebel, ``Motion and Time Study,'' Irwin. Moore, ``Manufacturing certain principles, namely: Management,'' Irwin. Folts, ``Introduction to Industrial Management,'' McGraw- 1. Clear separation of the various functions of the business should be Hill. Bock and Holstein, ``Production Planning and Control,'' Merrill. Mayer, established to avoid overlap or con¯ict in the accomplishment of tasks ``Production Management,'' McGraw-Hill. Maynard, ``Handbook of Modern or in the issuance or reception of orders. Manufacturing Management,'' McGraw-Hill. Eary and Johnson, ``Process Engi- neering for Manufacturing,'' Prentice-Hall. Shamblin and Stevens, ``Operations 2. Each managerial position should have a de®nite location within ResearchÐA Fundamental Approach,'' McGraw-Hill. Fay and Beatty, ``The the organization, with a written job speci®cation. Compensation Sourcebook,'' Human Resource Development Press. 3. There should be a clear distinction between line and staff opera- tion and control. 4. A clear understanding of the authority under each position should PLANT ORGANIZATION prevail. Organization generally is recognized as the foundation of management. 5. Selection of all personnel should be based on unbiased techniques. The term, as it is used in industry and business, means the distribution of 6. A recognized line of authority should prevail from the top of the the functions of the business to the personnel logically quali®ed to organization to the bottom, with an equally clear line of responsibility handle them. It should be noted that the organization should be built from the bottom to the top. around functions rather than individuals. 7. A system of communication should be well established and de®- In the past and to a large extent today, the majority of progressive nitely knownÐit should be short, yet able to reach rapidly everyone in concerns are organized on a line-and-staff basis. The relationships usu- the organization. ally are shown on an organization chart, which reveals the relationships Staff members usually have no authority over any portion of the of the major divisions and departments and the lines of direct authority organization that the staff unit assists. However, the department or divi- from superior to subordinate. Lines of authority usually are shown as sion that is being assisted by the staff can make demands upon the staff vertical lines. Staff authority frequently is indicated by a dotted line, to provide certain services. There are instances where a control type of which distinguishes it from direct authority. This same procedure is staff may be delegated to direct the actions of certain individuals in the usually used to indicate committee relationships. Departments or activi- organization that they are servicing. When this takes place, the dele- ties are clearly identi®ed within framed rectangles. The names of indi- gated authority may be termed staff authority; it is also frequently known viduals responsible for a given department or activity often are included as functional authority because its scope is determined by the functional with their job organization titles. Although the organization chart shows specialty of the staff involved. the relationship of organization units, it does not clearly de®ne the Many businesses today are ®nding it fruitful to establish ``temporary responsibilities of the individuals and the groups. Thus organization organizations'' in which a team of quali®ed individuals, reporting to charts must be supplemented with carefully prepared job descriptions management, is assembled to accomplish a mission, goal, or project, for all members of the organization. Position descriptions are written and then this organization is disbanded when the goal is reached. de®nitions of jobs enumerating the duties and responsibilities of each The term virtual corporation is used to identify those combinations of position. business and industry where technology is used to execute a wide array A line organization comprises those individuals, groups, and supervis- of temporary alliances in order to grasp speci®c market opportunities. ing employees concerned directly with the productive operation of the With business becoming more complex and global, it is highly likely business. The paths of authority are clearly de®ned, as each individual there will be more partnerships emerging among companies and entre- has but one superior from whom he or she obtains orders and instruc- preneurs. Thus today's joint ventures, strategic alliances, and outsourc- tions. This superior reports to but one individual, who has complete jurisdiction over his or her operation and supplies necessary technical information. In large- and middle-sized organizations, a pure line-type enterprise cannot exist because of the complexity of our business society. A staff organization involves personnel, departments, or activities that assist the line supervisor in any advisory, service, coordinating, or con- trol capacity. It should be noted that a staff position is a full-time.
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