Proceedings of the 2017 Industrial and Systems Engineering Conference

K. Coperich, E. Cudney, H. Nembhard, eds.

Principles of Industrial Engineering

Venkata Satya Surya Narayana Rao Kambhampati
Professor, National Institute of Industrial Engineering (NITIE)
Mumbai, Maharashtra, 400087, India

Abstract
Frederick Winslow Taylor proposed four principles of scientific management. He explained each principle with an
example in his treatise on scientific management. Frederick Taylor was instrumental in starting of the industrial
engineering discipline. Even though the objective of scientific management, the achievement of efficiency in the
production of goods and services is applicable to all activities of business and economy, engineering concerns have
immediate need and scope for implementing scientific management. Hence, Taylor advocated the course of industrial
engineering in engineering departments. In the literature so far, no attempt is made for developing principles of
industrial engineering using the foundation of principles of scientific management. In the paper, principles of industrial
engineering are developed and their utility for improvement of productivity, efficiency and cost reduction in
engineering organizations is described.

Keywords
Industrial Engineering Principles and Methods, Industrial Engineering, Principles

1. Introduction
“Principles of management” is an accepted framework for developing management theory. Frederick Taylor [1]
explained scientific management through principles. Koontz [2] strongly emphasizes the role of principles in
management theory by stating that principles provide a conceptual framework. By formulating principles which
explain related activities of management, we can have predictions and therefore provide more research opportunities
to validate principles and implied practices. Koontz notes that Fayol [3], Barnard [4] and Brown [5] in the early days
of management emphasized formulation of principles. Koontz took forward the principle development into more detail
by classifying each function of management into sub-activities. Industrial engineering was started in the mechanical
engineering department of Pennsylvania State University due to the active efforts of F.W. Taylor. The purpose was to
introduce into engineering curriculum the ideas that Taylor developed in decreasing cost of production and increasing
income to factory operating personnel. Taylor’s ideas were incorporated into engineering curriculums and business or
management curriculums. In engineering curriculums, naturally there is an emphasis on the application of the shop
management thought in engineering organizations and engineering activities and the specialization got the name
“industrial engineering.” Based on the principles of scientific management, principles of industrial engineering can be
derived and such principles when refined by contributions of various scholars would provide direction to further
development of the discipline. In this paper, an attempt is made to deduce the principles from the basic principles
expounded by Taylor in his paper/book on scientific management and an understanding of the various developments
in industrial engineering that happened over a century of evolution.

2. Principles of Scientific Management

 Rao Kambhampati

Taylor stated principles of scientific management as new duties of management in factories grouped under four heads
[6]:

First. Managers develop a science for each element of a man's work, which replaces the old rule-of-thumb method.

Second. They scientifically select and then train, teach, and develop the workman, whereas in the past he chose his
own work and trained himself as best he could.

Third. They heartily cooperate with the men so as to insure all of the work being done in accordance with the principles
of the science which has been developed.

Fourth. There is an almost equal division of the work and the responsibility between the management and the
workmen. The management takes over all work for which they are better fitted than the workmen, while in the past
almost all of the work and the greater part of the responsibility were thrown upon the men.

3. Evolution of Industrial Engineering

Industrial engineering was started by Diemer. He [7] also authored a book “Factory Organization and Administration.”
C.B. Going [8] published “Principles of Industrial Engineering” in 1911 and explained the role of industrial
engineering in detail in the first chapter. Gilbreth developed ‘Motion Study’ that became an important subject of
industrial engineering. Harrington Emerson [9] authored “The Twelve Principles of Efficiency.” The first Ph.D. in
industrial engineering was awarded to Barnes and he authored “Motion and Time Study” [10]. European practitioners
created ‘Work Study’ as a subject. The book on ‘Work Study’ by ILO [11] became very popular. Maynard [12]
identified a weakness in the area of methods improvement and proposed “Operation Analysis” as a method that
investigates the technical aspects of a production system in detail. Motion study was mentioned as the last step in this
approach. Work measurement to develop standard time is to be undertaken after motion study is completed. But
operation analysis has not become a popular approach. There is a need for developing this approach further so that
development of engineering alternatives to improve productivity becomes the primary activity in industrial
engineering. While Taylor focused on the contribution of the engineer in improving the efficiency/productivity of the
production system, Alan Mogensen [13] came out with the approach of utilizing the insights gained by operators in
working with machines and methods for long periods of time. He developed “work simplification” workshops for that
purpose. Developments in other fields like value engineering, operations research, statistical methods of controlling
processes having random variations, engineering economics, cost measurement, and management theory became part
of industrial engineering curriculum to the extent they contributed to the improvement in productivity of resources.

4. Principles of Industrial Engineering

Industrial engineering discipline and profession face big challenges even now after 110 years of existence. Industrial
engineering is applicable to all branches of engineering as productivity of resources is important in all engineering
systems. But, it has not become a subject taught in all engineering branches and also textbooks with examples in
specific branches of engineering are not available. MBA curriculums, even those catering to engineering candidates
predominantly have not included industrial engineering as a subject. It is surprising because management texts
strongly assert that effectiveness and efficiency are the two most important performance dimensions. But management
curriculums do not provide specific coverage of productivity/efficiency management. Industrial engineering, the
discipline with a special focus on productivity especially in engineering activities must receive due coverage in both
engineering and management curriculums. The lack of clearly spelt out principles may be a reason for some of the
weaknesses of industrial engineering discipline. The development of the principles of industrial engineering in a way
similar to the principles of management may facilitate the adoption of industrial engineering by all engineering
branches and MBA curriculums.
 Rao Kambhampati

Principles of industrial engineering are deduced from principles of scientific management under the additional
assumption that industrial engineering was started in engineering curriculum to implement scientific management in
engineering organizations, activities and systems. The development of science related to productivity improvement,
and modifying engineering and management systems to utilize productivity science in engineering activities and
organizations are the major activities of industrial engineers. We can say productivity science, productivity
engineering and productivity management are the major components of industrial engineering.

4.1 Primary Principles of Industrial Engineering

The principles of industrial engineering were stated in brief by Rao [14] in 2016 as follows:

1. Develop a science for each element of a man - machine system's work related to efficiency and productivity.

2. Engineer methods, processes and operations to use the scientific laws related to the work of machines, man,
materials and other resources to improve economic efficiency and productivity.

3. Select or assign workmen based on predefined aptitudes for various types of man - machine work.

4. Train workmen, supervisors, and engineers in the new methods, install various modifications related to the machines
that include productivity improvement devices and ensure that the expected productivity is realized.

5. Incorporate suggestions of operators, supervisors and engineers in the methods redesign on a continuous basis.

6. Plan and manage productivity at the system level.

In this paper, the principles are developed in more detailed form with the primary principles as the foundation.

4.2 Principles of Industrial Engineering in Detail

1. Productivity science

The principle follows the principle regarding science proposed by Taylor. Develop a science for each element of a
man - machine system's work related to efficiency and productivity. Industrial engineering discipline and profession
have to concentrate on discovering various events, behaviors, beliefs, attitudes, practices, and system elements that
affect productivity. The productivity science developed is the foundation for industrial engineering in productivity
engineering and productivity management phases.

2. Productivity engineering

Industrial engineering is concerned with the redesign of engineering systems with a view to improve their productivity.
Industrial engineers analyze the productivity of each resource used in engineering systems and redesign as necessary
to improve productivity. Waste identification is a part of industrial engineering analysis. The redesign focuses on
eliminating waste. It has to be ensured that the increase in productivity due to the use of low-cost materials, processes
and increasing speed of machines and men, should not lead to any decrease in quality of the output.

3. Application in all engineering branches

Industrial engineering defined as system efficiency engineering has application in all branches of engineering.
Productivity improvement is needed in engineering systems of all branches and therefore industrial engineering needs
to be used in all branches of engineering. It needs to be taught in all engineering branches.

4. Machine/equipment/tools utilization economy

 Rao Kambhampati

Principles of motion economy were initially developed by Gilbreth [15]. Further development also occurred in the
area. Principles of machine utilization economy are also required to guide decision making in productivity engineering
and they need to be developed. These principles may be developed for various categories of machines like machine
tools, electric motors, pumps etc. Efforts are to be made to develop similar principles for efficient utilization of all
resources used in engineering systems.

5. Optimization

Optimization is an important step in systems engineering. Each engineering system design idea needs to be optimized
to get the best output and then only alternatives have to be compared for selection of the best alternative. Hence
optimization is an important principle in industrial engineering and we also need to recognize the need for periodic
optimization as system parameters change or optimization methods change. Both mathematical and statistical methods
are available and are to be used.

6. Engineering economic analysis

Every engineering proposal has to pass the engineering economic analysis. Industrial engineering system redesign
proposals also have to pass engineering economic analysis and provide the required rate of return of the organization
concerned.

7. Implementation team membership

Industrial engineers have to participate in the implementation effort to the end. They have to become implementation
team members and if required have to lead the team. Industrial engineering redesign proposals may require the help
of consultants and subsequently the involvement of suppliers. Industrial engineers have to be in constant touch with
them to facilitate the required work and help them with various clarifications and ideas to implement the concepts
generated during IE studies.

8. Human effort engineering for productivity

In the resources used in engineering systems, human resource is important because all economic activity is to satisfy
needs of various categories of persons. Human resources employed in engineering systems have their own needs.
Industrial engineers are unique in engineering disciplines in taking up the engineering of human effort. They have to
synthesize the theories of human sciences, some of which are developed by industrial engineering also, to design
human work for an optimal combination of productivity, income, comfort, health, safety and satisfaction of the
employed.

9. Motion economy

Operators use motions to do work directly or indirectly through machines. Principles of motion economy were
developed by Frank Gilbreth initially. The set of principles is being extended by further research studies. They need
to be employed in all industrial engineering studies in the redesign of human work in engineering systems of all
branches.

10. Operator comfort and health

As human effort engineers, industrial engineers are also concerned with comfort and health of operators. The
productivity improvement should not lead to discomfort, fatigue and musculoskeletal disorders. Each human effort
redesign project must be accompanied by an assessment of the comfort, fatigue and health dimensions.

11. Work measurement

 Rao Kambhampati

To determine the best combination of motion elements, measurements of the time required to do each motion as well
as bundles of motion are needed. Work measurement is an important measure in industrial engineering to select the
best work method for machine elements, purely manual work elements or a combination of man-machine work
elements. It is useful to set day’s task for an operator. Task-based incentives can be set based on the standard time
which is an output of work measurement.

12. Selection of operators

Different types of engineering trades and work require different types of proficiency from operators. Industrial
engineers as well as managers have to identify the proficiency required and select persons for specific operations.
Science provides the basis for identifying the proficiencies required for a trade and also the method of evaluating
various persons.

13. Training of operators

Industrial engineers have to train the operators in the new machine methods proposed by them and in the new man
motions. The need to demonstrate the expected output from new methods by specially trained IE department operators
is to be emphasized for acceptance of the new methods and resulting higher output.

14. Work simplification education and training

Industrial engineers have to now accept that productivity improvements can be suggested by operators and supervisors
as a result of working thousands of hours using a specified standard method. The ability of operators and supervisors
can be enhanced by providing productivity education and training to the operators and supervisors.

15. Continuous improvement - employee participation

Continuous improvement of processes with significant benefit is possible when a large number of operators participate
in improvement activity. Industrial engineers have to put in systems for increasing employee participation and
implementing the continuous improvement in a systematic fashion.

16. Productivity incentives

Taylor stated that high productivity and high incomes go together. Productivity incentives are a vehicle for providing
higher income for higher productivity taking into account natural differences among people.

17. Hearty cooperation

Industrial engineers have to believe in the benefits for operators due to increase in productivity in the form of higher
wages. Industrial engineering advocates hearty cooperation between managers, industrial engineers and operators and
makes efforts to promote it.

18. Productivity management

Productivity management is the responsibility of industrial engineers. Productivity management practice has two areas
of focus in industrial engineering. One is an evaluation of management processes and plans for their impact on the
productivity of engineering activities and processes. If the evaluation shows that productivity can change due to change
in management process or plan, industrial engineers have to come up with redesigns and recommend them to
management at various levels. Due to this component, industrial engineers have to learn management principles and
methods in various industrial and business functions.
 Rao Kambhampati

The second component is the application of management theory and practice to the task of productivity improvement.
Every industrial engineer is a productivity manager. He has to learn complete management theory and its application
in IE practice.

19. System level focus

Industrial engineering is carried out many times at machine level or man level. But the objective of the industrial
engineering department in a company is productivity improvement and profit improvement at the enterprise level.
Industrial engineers have to focus on the system level productivity improvement while selecting productivity
improvement projects at lower levels like work stations.

20. Productivity measurement

To maintain system level focus, productivity measures at system level have to be developed and used. The relation
between productivity measures at the enterprise level, process level, and work station level have to be established to
facilitate decision making.

21. Cost measurement

Productivity improvement has to lead to decreased cost at the unit level for products. The ultimate proof of productivity
improvement is the reduced unit cost reflected in the reported unit cost of products. As cost accounting is a well-
developed independent area now with statutory bodies in many countries, industrial engineers have to work in
cooperation with them to get the representative cost figures that are reliable for decision making.

5. Conclusion
The primary principles of industrial engineering are deduced from the principles of scientific management. More
detailed principles are then derived to guide industrial engineering studies and projects. Some of the developments in
the industrial engineering field for the last 100 years are captured in the list of detailed principles. The principles
provide a sharper focus to the activities of industrial engineering field and distinguish the field from regular branches
of engineering and management. There is scope for further explanation, refinement and expansion of the proposed
principles in future studies.

References
1. Taylor, F.W., 1911, “The Principles of Scientific Management, Harpers and Brothers”, New York.
2. Koontz, Harold, 1958, “A Preliminary Statement of Principles of Planning and Control,” Academy of Management
Journal, 1(1), 45-61.
3. Fayol, Henri, 1949, “General and Industrial Management”, Pitman, London.
4. Barnard, Chester, 1938, “The Functions of the Executive”, Harvard University Press, Cambridge.
5. Brown, Alvin, “Organization of Industry, 1947”, Prentice-Hall, New York.
6. Taylor, F.W., 1911, “The Principles of Scientific Management”, Harpers and Brothers, New York.
7. Diemer, H., 1910, “Factory Organization and Administration”, McGraw-Hill, New York.
8. Going, C.B., 1911, “Principles of Industrial Engineering”, McGraw-Hill, New York.
9. Emerson, H., 1912, “The Twelve Principles of Efficiency”, The Engineering Magazine, New York.
10. Barnes, Ralph M., 1940, “Motion and Times Study”, 2nd Edition, John Wiley, New York.
11. Kanawaty, George (Ed.), 1992, “Introduction to Work Study”, 4th Edition, ILO Publications, Geneva.
12. Maynard, H.B., 1939, “Operation Analysis”, McGraw-Hill, New York.
13. Mogensen, Alan, 1932, “Common Sense Applied to Motion and Time Study”, McGraw-Hill, New York.
14. Rao, Narayana, K.V.S.S., 2016, “Machine Work Study – Man Work Study – Taylor’s Conceptualization of
Scientific Study of Man-Machine Systems,” Proceedings of NCIETM - 2016, NITIE, Mumbai, 3-7.
15. Gilbreth, F.B., and Gilbreth L.M., 1923, “A Fourth Dimension for Measuring Skill in Obtaining the One Best
Way,” Society of Industrial Engineering Bulletin, 5(11), 6-7.