Logistic engineering
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Logistic Engineering deals with the science of Logistics. Logistics is about the purchasing, transport, storage, distribution, warehousing of raw materials, semi-finished/work-in-process goods and finished goods. Managing all these activities efficiently and effectively for an organisation is the main question at the back of the mind of any logistic engineer.
Different performance measures are used to examine the efficiency of an organisation's logistics. The most popular and widely used performance measure is the landed cost. The landed cost is the total cost of purchasing, transporting, warehousing and distributing raw materials, semi-finished and finished goods.
Another performance measure equally important is the end customer fillrate. It is the percentage of customer demand which is satisfied immediately off-shelf. Logistics is generally a cost-center service activity, but it provides value via improved customer satisfaction. It can quickly lose that value if the customer becomes dissatisfied. The end customer can include another process or work center inside of the manufacturing facility, a warehouse where items are stocked or the final customer who will use the product.
Another much more popular derivative and a complete usage of the logistic term which has appeared in recent years is the supply chain. The supply chain also looks at an efficient chaining of the supply / purchase and distribution sides of an organisation. While Logistics looks at single echelons with the immediate supply and distribution linked up, supply chain looks at multiple echelons/stages, right from procurement of the raw materials to the final distribution of finished goods up to the customer. It is based on the basic premise that the supply and distribution activities if integrated with the manufacturing / logistic activities, can result in better profitability for the organisation. The local minima of total cost of the manufacturing operation is getting replaced by the global minima of total cost of the whole chain, resulting in better profitability for the chain members and hence lower costs for the products.
"Logistics Engineering" as a discipline is also a very important aspect of system engineering that includes reliability engineering. It is the science and process whereby reliablity, maintainability, and availability are designed into products or systems. It includes the supply and physical distribution considerations above as well as more fundamental engineering considerations. For example, it we want to produce a system that is 95% reliable (or improve a system to achieve 95% reliability), a logistics engineer understands that total system reliability can be no greater than the least reliable subsystem or component. Therfore our logistics engineer must consider the reliability of all subcomponents or subsystems and modify system design accordingly. If a subsystem is only 50% reliable, one can concentrate on improving the reliablity of that subsystem, design in multiple subsystems in parallel (5 in this case would achieve approximately 97% reliability of that subsystem), purchase and store spare subsystems for rapid change out, establish repair capability that would get a failed subsystem back in operation in the required amount of time, and/or choose any combination of those approaches to achieve the optimal cost vs. reliablity solution. Then the engineer moves onto the next subsystem.
Logistics Engineers work with complex mathmatical models that consider elements such as Mean Time Between Failures (MTBF), Mean Time To Failure (MTTF), Mean Time to Repair (MTBR), Failure Mode and Effects Analysis(FMEA), arcane statistical distributions, queing theory, and a host of other considerations. Obviously, logistics engineering is a complex science that considers tradeoffs in component/system design, repair capability, training, spares inventory, demand history, storage and distribution points, transportation methods, etc., to ensure the "thing" is where it's needed, when it's needed, and operating the way it's needed all at an acceptable cost.
Monday, December 25, 2006
Supply chain management
Supply chain management
From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article may require cleanup to meet Wikipedia's quality standards.Please discuss this issue on the talk page or replace this tag with a more specific message.This article has been tagged since December 2006.
Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption. The term supply chain management was coined by consultant Keith Oliver, of strategy consulting firm Booz Allen Hamilton in 1982.
The definition one America professional association put forward is that Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.
Supply chain event management (abbreviated as SCEM) is a consideration of all possible occurring events and factors that can cause a disruption in a supply chain. With SCEM possible scenarios can be created and solutions can be planned.
Some experts distinguish supply chain management and logistics, while others consider the terms to be interchangeable.
Supply chain management is also a category of software products.
[edit] Supply chain management problems
Supply chain management must address the following problems:
Distribution Network Configuration: Number and location of suppliers, production facilities, distribution centers, warehouses and customers.
Distribution Strategy: Centralized versus decentralized, direct shipment, Cross docking, pull or push strategies, third party logistics.
Information: Integrate systems and processes through the supply chain to share valuable information, including demand signals, forecasts, inventory and transportation.
Inventory Management: Quantity and location of inventory including raw materials, work-in-process and finished goods.
[edit] Activities/Functions
Supply chain management is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished goods out of the organization toward the end-consumer. As corporations strive to focus on core competencies and become more flexible, they have reduced their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other corporations that can perform the activities better or more cost effectively. The effect has been to increase the number of companies involved in satisfying consumer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners led to the creation of supply chain management concepts. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and improving inventory velocity.
Several models have been proposed for understanding the activities required to manage material movements across organizational and functional boundaries. SCOR is a supply chain management model promoted by the Supply-Chain Management Council. Another model is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be grouped into strategic, tactical, and operational levels of activities.
[edit] Strategic
Strategic network optimization, including the number, location, and size of warehouses, distribution centers and facilities.
Strategic partnership with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics.
Product design coordination, so that new and existing products can be optimally integrated into the supply chain, load management
Information Technology infrastructure, to support supply chain operations.
Where to make and what to make or buy decisions
Align Overall Organisational Strategy with supply strategy
[edit] Tactical
Sourcing contracts and other purchasing decisions.
Production decisions, including contracting, locations, scheduling, and planning process definition.
Inventory decisions, including quantity, location, and quality of inventory.
Transportation strategy, including frequency, routes, and contracting.
Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise.
Milestone Payments
[edit] Operational
Daily production and distribution planning, including all nodes in the supply chain.
Production scheduling for each manufacturing facility in the supply chain (minute by minute).
Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers.
Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers.
Inbound operations, including transportation from suppliers and receiving inventory.
Production operations, including the consumption of materials and flow of finished goods.
Outbound operations, including all fulfillment activities and transportation to customers.
Order promising, accounting for all constraints in the supply chain, including all suppliers, manufacturing facilities, distribution centers, and other customers.
Performance tracking of all activities
[edit] Supply Chain Management
Nowadays, one of the few outcomes in the constantly changing business world is that organizations can no longer compete solely as individual entities. Increasingly, they must rely on effective supply chains, or networks, to successfully compete in the global market and networked economy (Baziotopoulos, 2004). Peter Drucker's (1998) management's new paradigms, this concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies.
During the past decades, globalization, outsourcing and information technology have enabled many organizations such as Dell and Hewlett Packard, to successfully operate solid collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities (Scott, 1993). This inter-organizational supply network can be acknowledged as a new form of organization. However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories (Powell, 1990). It is not clear what kind of performance impacts different supply network structures could have on firms, and little is known about the coordination conditions trade-offs that may exist among the players. From a system's point of view, a complex network structure can be decomposed into individual component firms (Zhang and Dilts, 2004). Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal management working of other individual players. Therefore, the choice of internal management control structure is known to impact local firm performance (Mintzberg, 1979).
In the 21st century, there have been few changes in business environment that have contributed to the development of supply chain networks. First, as an outcome of globalization and proliferation of multi-national companies, joint ventures, strategic alliances and business partnerships were found to be significant success factors, following the earlier "Just-In-Time", "Lean Management" and "Agile Manufacturing" practices (MacDuffie and Helper, 1997; Monden, 1993; Womack and Jones, 1996; Gunasekaran, 1999). Second, technological changes, particularly the dramatic fall in information communication costs, a paramount component of transaction costs, has led to changes in coordination among the members of the supply chain network (Coase, 1998).
Many researchers have recognized these kinds of supply network structure as a new organization form, using terms such as "Keiretsu", "Extended Enterprise", "Virtual Corporation", Global Production Network", and "Next Generation Manufacturing System" (Drucker, 1998; Tapscott, 1996; Dilts, 1999). In general, such structures, can be defined as "a group of semi-independent organizations, each with their capabilities, which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration" (Akkermans, 2001).
[edit] Supply Chain Business Process Integration
Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. An example scenario: the purchasing department places orders as requirements become appropriate. Marketing, responding to customer demand, communicates with several distributors and retailers, and attempts to satisfy this demand. Shared information between supply chain partners can only be fully leveraged through process integration.
Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems and shared information. According to Lambert and Cooper (2000) operating an integrated supply chain requires continuous information flows, which in turn assist to achieve the best product flows. However, in many companies, management has reached the conclusion that optimizing the product flows cannot be accomplished without implementing a process approach to the business. The key supply chain processes stated by Lambert (2004) are:
Customer relationship management
Customer service management
Demand management
Order fulfillment
Manufacturing flow management
Supplier relationship management
Product development and commercialization
Returns management
One could suggest other key critical supply business processes combining these processes stated by Lambert such as:
Customer service Management
Procurement
Product development and Commercialization
Manufacturing flow management/support
Physical Distribution
Outsourcing/ Partnerships
Performance Measurement
a) Customer service management process
Customer service provides the source of customer information. It also provides the customer with real-time information on promising dates and product availability through interfaces with the company's production and distribution operations.
b) Procurement process
Strategic plans are developed with suppliers to support the manufacturing flow management process and development of new products. In firms where operations extend globally, sourcing should be managed on a global basis. The desired outcome is a win-win relationship, where both parties benefit, and reduction times in the design cycle and product development is achieved. Also, the purchasing function develops rapid communication systems, such as electronic data interchange (EDI) and Internet linkages to transfer possible requirements more rapidly. Activities related to obtaining products and materials from outside suppliers. This requires performing resource planning, supply sourcing, negotiation, order placement, inbound transportation, storage and handling and quality assurance. Also, includes the responsibility to coordinate with suppliers in scheduling, supply continuity, hedging, and research to new sources or programmes.
c) Product development and commercialization
Here, customers and suppliers must be united into the product development process, thus to reduce time to market. As product life cycles shorten, the appropriate products must be developed and successfully launched in ever shorter time-schedules to remain competitive. According to Lambert and Cooper (2000), managers of the product development and commercialization process must:
coordinate with customer relationship management to identify customer-articulated needs;
select materials and suppliers in conjunction with procurement, and
develop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the product/market combination.
d) Manufacturing flow management process
The manufacturing process is produced and supplies products to the distribution channels based on past forecasts. Manufacturing processes must be flexible to respond to market changes, and must accommodate mass customization. Orders are processes operating on a just-in-time (JIT) basis in minimum lot sizes. Also, changes in the manufacturing flow process lead to shorter cycle times, meaning improved responsiveness and efficiency of demand to customers. Activities related to planning, scheduling and supporting manufacturing operations, such as work-in-process storage, handling, transportation, and time phasing of components, inventory at manufacturing sites and maximum flexibility in the coordination of geographic and final assemblies postponement of physical distribution operations.
e) Physical Distribution
This concerns movement of a finished product/service to customers. In physical distribution, the customer is the final destination of a marketing channel, and the availability of the product/service is a vital part of each channel participant's marketing effort. It is also through the physical distribution process that the time and space of customer service become an integral part of marketing, thus it links a marketing channel with its customers (e.g. links manufacturers, wholesalers, retailers).
f) Outsourcing/Partnerships
This is not just outsourcing the procurement of materials and components, but also outsourcing of services that traditionally have been provided in-house. The logic of this trend is that the company will increasingly focus on those activities in the value chain where it has a distinctive advantage and everything else it will outsource. This movement has been particularly evident in logistics where the provision of transport, warehousing and inventory control is increasingly subcontracted to specialists or logistics partners. Also, to manage and control this network of partners and suppliers requires a blend of both central and local involvement. Hence, strategic decisions need to be taken centrally with the monitoring and control of supplier performance and day-to-day liaison with logistics partners being best managed at a local level.
g) Performance Measurement
Experts found a strong relationship from the largest arcs of supplier and customer integration to market share and profitability. By taking advantage of supplier capabilities and emphasizing a long-term supply chain perspective in customer relationships can be both correlated with firm performance. As logistics competency becomes a more critical factor in creating and maintaining competitive advantage, logistics measurement becomes increasingly important because the difference between profitable and unprofitable operations becomes more narrow. A.T. Kearney Consultants (1985) noted that firms engaging in comprehensive performance measurement realized improvements in overall productivity. According to experts internal measures are generally collected and analyzed by the firm including
Cost
Customer Service
Productivity measures
Asset measurement, and
Quality.
External performance measurement is examined through customer perception measures and "best practice" benchmarking, and includes 1) Customer perception measurement, and 2) Best practice benchmarking.
Components of Supply Chain Management are 1. Standardisation 2. Postponement 3. Customisation
[edit] Supply Chain Management Components Integration
The management components of SCM
The SCM management components are the third element of the four-square circulation framework. The level of integration and management of a business process link is a function of the number and level, ranging from low to high, of components added to the link (Ellram and Cooper, 1990; Houlihan, 1985). Consequently, adding more management components or increasing the level of each component can increase the level of integration of the business process link. The literature on business process reengineering (Macneil ,1975; Williamson, 1974; Hewitt, 1994), buyer-supplier relationships (Stevens, 1989; Ellram and Cooper, 1993; Ellram and Cooper, 1990; Houlihan, 1985), and SCM (Cooper et al., 1997; Lambert et al.,1996; Turnbull, 1990) suggests various possible components that must receive managerial attention when managing supply relationships. Lambert and Cooper (2000) identified the following components which are:
Planning and control
Work structure
Organization structure
Product flow facility structure
Information flow facility structure
Management methods
Power and leadership structure
Risk and reward structure
Culture and attitude
However, a more careful examination of the existing literature (Zhang and Dilts, 2004 ;Vickery et al., 2003; Hemila, 2002; Christopher, 1998; Joyce et al., 1997; Bowersox and Closs, 1996; Williamson, 1991; Courtright et al., 1989; Hofstede, 1978) will lead us to a more comprehensive structure of what should be the key critical supply chain components, the "branches" of the previous identified supply chain business processes, that is what kind of relationship the components may have that are related with suppliers and customers accordingly. Bowersox and Closs states that the emphasis on cooperation represents the synergism leading to the highest level of joint achievement (Bowersox and Closs, 1996). A primary level channel participant is a business that is willing to participate in the inventory ownership responsibility or assume other aspects financial risk, thus including primary level components (Bowersox and Closs, 1996). A secondary level participant (specialized), is a business that participates in channel relationships by performing essential services for primary participants, thus including secondary level components, which are supporting the primary ones. Also, third level channel participants and components may be included, that will support the primary level channel participants, and which are the fundamental branches of the secondary level components.
Consequently, Lambert and Cooper's framework of supply chain components, does not lead us to the conclusion about what are the primary or secondary (specialized) level supply chain components ( see Bowersox and Closs, 1996, p.g. 93), that is what supply chain components should be viewed as primary or secondary, and how should these components be structured in order to have a more comprehensive supply chain structure and to examine the supply chain as an integrative one (See above sections 2.1 and 3.1).
Baziotopoulos reviewed the literature to identify supply chain components (Stevens, 1989; Ellram and Cooper, 1993; Mills et al., 2004; Lewis and Talalayevsky, 2004; Hedberg and Olhager, 2002; Hemila, 2002; Vickery et.al., 2003; Yusuf et al., 2003; Handfield and Bechtel, 2001; Prater et al., 2001; Kern and Willcocks, 2000; Bowersox and Closs, 1996; Christopher, 1992; Bowersox, 1989). Based on this study, Baziotopoulos (2004) suggests the following supply chain components (Fig.8):
For Customer Service Management: Includes the primary level component of customer relationship management, and secondary level components such as benchmarking and order fulfillment.
For Product Development and Commercialization: Includes the primary level component of Product Data Management (PDM), and secondary level components such as market share, customer satisfaction, profit margins, and returns to stakeholders.
For Physical Distribution, Manufacturing support and Procurement: Includes the primary level component of Enterprise Resource Planning (ERP), with secondary level components such as warehouse management, material management, manufacturing planning, personnel management, and postponement (order management).
For Performance Measurement: This includes the primary level component of logistics performance measurement, which is correlated with the information flow facility structure within the organization. Secondary level components may include four types of measurement such as: variation, direction, decision and policy measurements. More specifically, in accordance with these secondary level components total cost analysis (TCA), customer profitability analysis (CPA), and Asset management could be concerned as well. In general, information flow facility structure is regarded by two important requirements, which are a) planning and Coordination flows, and b)operational requirements.
For Outsourcing: This includes the primary level component of management methods and the company's cutting-edge strategy and its vital strategic objectives that the company will identify and adopt for particular strategic initiatives in key the areas of technology information, operations, manufacturing capabilities, and logistics (secondary level components).
[edit] Literature
Rolf G. Poluha: Application of the SCOR Model in Supply Chain Management. Youngstown, NY 2006, ISBN 1-934043-10-9.
[edit] References
This article or section does not cite its references or sources.Please help improve this article by introducing appropriate citations. (help, get involved!)This article has been tagged since September 2006.
Lambert, D & Cooper, M. (2000). Industrial Marketing Management. Volume29, Issue 1 , January 2000, Pages 65-83
Haag, S., Cummings, M., McCubbrey, D., Pinsonneault, A., & Donovan, R. (2006). Management Information Systems For the Information Age (3rd Canadian Ed.). Canada: McGraw Hill Ryerson
From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article may require cleanup to meet Wikipedia's quality standards.Please discuss this issue on the talk page or replace this tag with a more specific message.This article has been tagged since December 2006.
Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption. The term supply chain management was coined by consultant Keith Oliver, of strategy consulting firm Booz Allen Hamilton in 1982.
The definition one America professional association put forward is that Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.
Supply chain event management (abbreviated as SCEM) is a consideration of all possible occurring events and factors that can cause a disruption in a supply chain. With SCEM possible scenarios can be created and solutions can be planned.
Some experts distinguish supply chain management and logistics, while others consider the terms to be interchangeable.
Supply chain management is also a category of software products.
[edit] Supply chain management problems
Supply chain management must address the following problems:
Distribution Network Configuration: Number and location of suppliers, production facilities, distribution centers, warehouses and customers.
Distribution Strategy: Centralized versus decentralized, direct shipment, Cross docking, pull or push strategies, third party logistics.
Information: Integrate systems and processes through the supply chain to share valuable information, including demand signals, forecasts, inventory and transportation.
Inventory Management: Quantity and location of inventory including raw materials, work-in-process and finished goods.
[edit] Activities/Functions
Supply chain management is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished goods out of the organization toward the end-consumer. As corporations strive to focus on core competencies and become more flexible, they have reduced their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other corporations that can perform the activities better or more cost effectively. The effect has been to increase the number of companies involved in satisfying consumer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners led to the creation of supply chain management concepts. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and improving inventory velocity.
Several models have been proposed for understanding the activities required to manage material movements across organizational and functional boundaries. SCOR is a supply chain management model promoted by the Supply-Chain Management Council. Another model is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be grouped into strategic, tactical, and operational levels of activities.
[edit] Strategic
Strategic network optimization, including the number, location, and size of warehouses, distribution centers and facilities.
Strategic partnership with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping, and third-party logistics.
Product design coordination, so that new and existing products can be optimally integrated into the supply chain, load management
Information Technology infrastructure, to support supply chain operations.
Where to make and what to make or buy decisions
Align Overall Organisational Strategy with supply strategy
[edit] Tactical
Sourcing contracts and other purchasing decisions.
Production decisions, including contracting, locations, scheduling, and planning process definition.
Inventory decisions, including quantity, location, and quality of inventory.
Transportation strategy, including frequency, routes, and contracting.
Benchmarking of all operations against competitors and implementation of best practices throughout the enterprise.
Milestone Payments
[edit] Operational
Daily production and distribution planning, including all nodes in the supply chain.
Production scheduling for each manufacturing facility in the supply chain (minute by minute).
Demand planning and forecasting, coordinating the demand forecast of all customers and sharing the forecast with all suppliers.
Sourcing planning, including current inventory and forecast demand, in collaboration with all suppliers.
Inbound operations, including transportation from suppliers and receiving inventory.
Production operations, including the consumption of materials and flow of finished goods.
Outbound operations, including all fulfillment activities and transportation to customers.
Order promising, accounting for all constraints in the supply chain, including all suppliers, manufacturing facilities, distribution centers, and other customers.
Performance tracking of all activities
[edit] Supply Chain Management
Nowadays, one of the few outcomes in the constantly changing business world is that organizations can no longer compete solely as individual entities. Increasingly, they must rely on effective supply chains, or networks, to successfully compete in the global market and networked economy (Baziotopoulos, 2004). Peter Drucker's (1998) management's new paradigms, this concept of business relationships extends beyond traditional enterprise boundaries and seeks to organize entire business processes throughout a value chain of multiple companies.
During the past decades, globalization, outsourcing and information technology have enabled many organizations such as Dell and Hewlett Packard, to successfully operate solid collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities (Scott, 1993). This inter-organizational supply network can be acknowledged as a new form of organization. However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories (Powell, 1990). It is not clear what kind of performance impacts different supply network structures could have on firms, and little is known about the coordination conditions trade-offs that may exist among the players. From a system's point of view, a complex network structure can be decomposed into individual component firms (Zhang and Dilts, 2004). Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal management working of other individual players. Therefore, the choice of internal management control structure is known to impact local firm performance (Mintzberg, 1979).
In the 21st century, there have been few changes in business environment that have contributed to the development of supply chain networks. First, as an outcome of globalization and proliferation of multi-national companies, joint ventures, strategic alliances and business partnerships were found to be significant success factors, following the earlier "Just-In-Time", "Lean Management" and "Agile Manufacturing" practices (MacDuffie and Helper, 1997; Monden, 1993; Womack and Jones, 1996; Gunasekaran, 1999). Second, technological changes, particularly the dramatic fall in information communication costs, a paramount component of transaction costs, has led to changes in coordination among the members of the supply chain network (Coase, 1998).
Many researchers have recognized these kinds of supply network structure as a new organization form, using terms such as "Keiretsu", "Extended Enterprise", "Virtual Corporation", Global Production Network", and "Next Generation Manufacturing System" (Drucker, 1998; Tapscott, 1996; Dilts, 1999). In general, such structures, can be defined as "a group of semi-independent organizations, each with their capabilities, which collaborate in ever-changing constellations to serve one or more markets in order to achieve some business goal specific to that collaboration" (Akkermans, 2001).
[edit] Supply Chain Business Process Integration
Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. An example scenario: the purchasing department places orders as requirements become appropriate. Marketing, responding to customer demand, communicates with several distributors and retailers, and attempts to satisfy this demand. Shared information between supply chain partners can only be fully leveraged through process integration.
Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems and shared information. According to Lambert and Cooper (2000) operating an integrated supply chain requires continuous information flows, which in turn assist to achieve the best product flows. However, in many companies, management has reached the conclusion that optimizing the product flows cannot be accomplished without implementing a process approach to the business. The key supply chain processes stated by Lambert (2004) are:
Customer relationship management
Customer service management
Demand management
Order fulfillment
Manufacturing flow management
Supplier relationship management
Product development and commercialization
Returns management
One could suggest other key critical supply business processes combining these processes stated by Lambert such as:
Customer service Management
Procurement
Product development and Commercialization
Manufacturing flow management/support
Physical Distribution
Outsourcing/ Partnerships
Performance Measurement
a) Customer service management process
Customer service provides the source of customer information. It also provides the customer with real-time information on promising dates and product availability through interfaces with the company's production and distribution operations.
b) Procurement process
Strategic plans are developed with suppliers to support the manufacturing flow management process and development of new products. In firms where operations extend globally, sourcing should be managed on a global basis. The desired outcome is a win-win relationship, where both parties benefit, and reduction times in the design cycle and product development is achieved. Also, the purchasing function develops rapid communication systems, such as electronic data interchange (EDI) and Internet linkages to transfer possible requirements more rapidly. Activities related to obtaining products and materials from outside suppliers. This requires performing resource planning, supply sourcing, negotiation, order placement, inbound transportation, storage and handling and quality assurance. Also, includes the responsibility to coordinate with suppliers in scheduling, supply continuity, hedging, and research to new sources or programmes.
c) Product development and commercialization
Here, customers and suppliers must be united into the product development process, thus to reduce time to market. As product life cycles shorten, the appropriate products must be developed and successfully launched in ever shorter time-schedules to remain competitive. According to Lambert and Cooper (2000), managers of the product development and commercialization process must:
coordinate with customer relationship management to identify customer-articulated needs;
select materials and suppliers in conjunction with procurement, and
develop production technology in manufacturing flow to manufacture and integrate into the best supply chain flow for the product/market combination.
d) Manufacturing flow management process
The manufacturing process is produced and supplies products to the distribution channels based on past forecasts. Manufacturing processes must be flexible to respond to market changes, and must accommodate mass customization. Orders are processes operating on a just-in-time (JIT) basis in minimum lot sizes. Also, changes in the manufacturing flow process lead to shorter cycle times, meaning improved responsiveness and efficiency of demand to customers. Activities related to planning, scheduling and supporting manufacturing operations, such as work-in-process storage, handling, transportation, and time phasing of components, inventory at manufacturing sites and maximum flexibility in the coordination of geographic and final assemblies postponement of physical distribution operations.
e) Physical Distribution
This concerns movement of a finished product/service to customers. In physical distribution, the customer is the final destination of a marketing channel, and the availability of the product/service is a vital part of each channel participant's marketing effort. It is also through the physical distribution process that the time and space of customer service become an integral part of marketing, thus it links a marketing channel with its customers (e.g. links manufacturers, wholesalers, retailers).
f) Outsourcing/Partnerships
This is not just outsourcing the procurement of materials and components, but also outsourcing of services that traditionally have been provided in-house. The logic of this trend is that the company will increasingly focus on those activities in the value chain where it has a distinctive advantage and everything else it will outsource. This movement has been particularly evident in logistics where the provision of transport, warehousing and inventory control is increasingly subcontracted to specialists or logistics partners. Also, to manage and control this network of partners and suppliers requires a blend of both central and local involvement. Hence, strategic decisions need to be taken centrally with the monitoring and control of supplier performance and day-to-day liaison with logistics partners being best managed at a local level.
g) Performance Measurement
Experts found a strong relationship from the largest arcs of supplier and customer integration to market share and profitability. By taking advantage of supplier capabilities and emphasizing a long-term supply chain perspective in customer relationships can be both correlated with firm performance. As logistics competency becomes a more critical factor in creating and maintaining competitive advantage, logistics measurement becomes increasingly important because the difference between profitable and unprofitable operations becomes more narrow. A.T. Kearney Consultants (1985) noted that firms engaging in comprehensive performance measurement realized improvements in overall productivity. According to experts internal measures are generally collected and analyzed by the firm including
Cost
Customer Service
Productivity measures
Asset measurement, and
Quality.
External performance measurement is examined through customer perception measures and "best practice" benchmarking, and includes 1) Customer perception measurement, and 2) Best practice benchmarking.
Components of Supply Chain Management are 1. Standardisation 2. Postponement 3. Customisation
[edit] Supply Chain Management Components Integration
The management components of SCM
The SCM management components are the third element of the four-square circulation framework. The level of integration and management of a business process link is a function of the number and level, ranging from low to high, of components added to the link (Ellram and Cooper, 1990; Houlihan, 1985). Consequently, adding more management components or increasing the level of each component can increase the level of integration of the business process link. The literature on business process reengineering (Macneil ,1975; Williamson, 1974; Hewitt, 1994), buyer-supplier relationships (Stevens, 1989; Ellram and Cooper, 1993; Ellram and Cooper, 1990; Houlihan, 1985), and SCM (Cooper et al., 1997; Lambert et al.,1996; Turnbull, 1990) suggests various possible components that must receive managerial attention when managing supply relationships. Lambert and Cooper (2000) identified the following components which are:
Planning and control
Work structure
Organization structure
Product flow facility structure
Information flow facility structure
Management methods
Power and leadership structure
Risk and reward structure
Culture and attitude
However, a more careful examination of the existing literature (Zhang and Dilts, 2004 ;Vickery et al., 2003; Hemila, 2002; Christopher, 1998; Joyce et al., 1997; Bowersox and Closs, 1996; Williamson, 1991; Courtright et al., 1989; Hofstede, 1978) will lead us to a more comprehensive structure of what should be the key critical supply chain components, the "branches" of the previous identified supply chain business processes, that is what kind of relationship the components may have that are related with suppliers and customers accordingly. Bowersox and Closs states that the emphasis on cooperation represents the synergism leading to the highest level of joint achievement (Bowersox and Closs, 1996). A primary level channel participant is a business that is willing to participate in the inventory ownership responsibility or assume other aspects financial risk, thus including primary level components (Bowersox and Closs, 1996). A secondary level participant (specialized), is a business that participates in channel relationships by performing essential services for primary participants, thus including secondary level components, which are supporting the primary ones. Also, third level channel participants and components may be included, that will support the primary level channel participants, and which are the fundamental branches of the secondary level components.
Consequently, Lambert and Cooper's framework of supply chain components, does not lead us to the conclusion about what are the primary or secondary (specialized) level supply chain components ( see Bowersox and Closs, 1996, p.g. 93), that is what supply chain components should be viewed as primary or secondary, and how should these components be structured in order to have a more comprehensive supply chain structure and to examine the supply chain as an integrative one (See above sections 2.1 and 3.1).
Baziotopoulos reviewed the literature to identify supply chain components (Stevens, 1989; Ellram and Cooper, 1993; Mills et al., 2004; Lewis and Talalayevsky, 2004; Hedberg and Olhager, 2002; Hemila, 2002; Vickery et.al., 2003; Yusuf et al., 2003; Handfield and Bechtel, 2001; Prater et al., 2001; Kern and Willcocks, 2000; Bowersox and Closs, 1996; Christopher, 1992; Bowersox, 1989). Based on this study, Baziotopoulos (2004) suggests the following supply chain components (Fig.8):
For Customer Service Management: Includes the primary level component of customer relationship management, and secondary level components such as benchmarking and order fulfillment.
For Product Development and Commercialization: Includes the primary level component of Product Data Management (PDM), and secondary level components such as market share, customer satisfaction, profit margins, and returns to stakeholders.
For Physical Distribution, Manufacturing support and Procurement: Includes the primary level component of Enterprise Resource Planning (ERP), with secondary level components such as warehouse management, material management, manufacturing planning, personnel management, and postponement (order management).
For Performance Measurement: This includes the primary level component of logistics performance measurement, which is correlated with the information flow facility structure within the organization. Secondary level components may include four types of measurement such as: variation, direction, decision and policy measurements. More specifically, in accordance with these secondary level components total cost analysis (TCA), customer profitability analysis (CPA), and Asset management could be concerned as well. In general, information flow facility structure is regarded by two important requirements, which are a) planning and Coordination flows, and b)operational requirements.
For Outsourcing: This includes the primary level component of management methods and the company's cutting-edge strategy and its vital strategic objectives that the company will identify and adopt for particular strategic initiatives in key the areas of technology information, operations, manufacturing capabilities, and logistics (secondary level components).
[edit] Literature
Rolf G. Poluha: Application of the SCOR Model in Supply Chain Management. Youngstown, NY 2006, ISBN 1-934043-10-9.
[edit] References
This article or section does not cite its references or sources.Please help improve this article by introducing appropriate citations. (help, get involved!)This article has been tagged since September 2006.
Lambert, D & Cooper, M. (2000). Industrial Marketing Management. Volume29, Issue 1 , January 2000, Pages 65-83
Haag, S., Cummings, M., McCubbrey, D., Pinsonneault, A., & Donovan, R. (2006). Management Information Systems For the Information Age (3rd Canadian Ed.). Canada: McGraw Hill Ryerson
Logistics
Logistics
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Look up Logistics inWiktionary, the free dictionary.
Inside Nexus Distribution, a United States logistics provider. Image shows goods stacked on pallets with forklift.
Logistics is the art and science of managing and controlling the flow of goods, energy, information and other resources like products, services, and people, from the source of production to the marketplace. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible.
[edit] Background
Logistics as a concept is considered to evolve from the military's need to supply themselves as they moved from their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were military officers with the title ‘Logistikas’ who were responsible for financial and supply distribution matters.
The Oxford English dictionary defines logistics as: “The branch of military science having to do with procuring, maintaining and transporting material, personnel and facilities.”Another dictionary definition is: "The time related positioning of resources." As such, logistics is commonly seen as a branch of engineering which creates "people systems" rather than "machine systems".
Logistics as a business concept evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one's business with materials and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time for the right price and is the science of process and incorporates all industry sectors. The goal of logistic work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.
Moving a container from road to rail transportation
[edit] Military logistics
In military logistics, experts manage how and when to move resources to the places they are needed. In military science, maintaining one's supply lines while disrupting those of the enemy is a crucial—some would say the most crucial—element of military strategy, since an armed force without food, fuel and ammunition is defenseless.
The Iraq war was a dramatic example of the importance of logistics. It had become very necessary for the US and its allies to move huge amounts of men, materials and equipment over great distances. Led by Lieutenant General William Pagonis, Logistics was successfully used for this effective movement. The defeat of the British in the American War of Independence, and the defeat of Rommel in World War II, have been largely attributed to logistical failure. The historical leaders Hannibal Barca and Alexander the Great are considered to have been logistical geniuses.
[edit] Business logistics
In business, logistics may have either internal focus, or external focus covering the flow from originating supplier to end-user (see supply chain management). The main functions of a logistics manager include Inventory Management, purchasing, transport, warehousing, and the organizing and planning of these activities. Logistics managers combine a general knowledge of each of these functions so that there is a coordination of resources in an organization. There are two fundamentally different forms of logistics. One optimizes a steady flow of material through a network of transport links and storage nodes. The other coordinates a sequence of resources to carry out some project.
[edit] Production logistics
The term is used for describing logistic processes within an industry. The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right point in time.
The issue is not the transportation itself, but to streamline and control the flow through the value adding processes and eliminate non-value adding ones. Production logistics can be applied in existing as well as new plants. Manufacturing in an existing plant is a constantly changing process. Machines are exchanged and new ones added, which gives the opportunity to improve the production logistics system accordingly. Production logistics provides the means to achieve customer response and capital efficiency.
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Look up Logistics inWiktionary, the free dictionary.
Inside Nexus Distribution, a United States logistics provider. Image shows goods stacked on pallets with forklift.
Logistics is the art and science of managing and controlling the flow of goods, energy, information and other resources like products, services, and people, from the source of production to the marketplace. It is difficult to accomplish any marketing or manufacturing without logistical support. It involves the integration of information, transportation, inventory, warehousing, material handling, and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials, work in process, and finished inventories where required at the lowest cost possible.
[edit] Background
Logistics as a concept is considered to evolve from the military's need to supply themselves as they moved from their base to a forward position. In ancient Greek, Roman and Byzantine empires, there were military officers with the title ‘Logistikas’ who were responsible for financial and supply distribution matters.
The Oxford English dictionary defines logistics as: “The branch of military science having to do with procuring, maintaining and transporting material, personnel and facilities.”Another dictionary definition is: "The time related positioning of resources." As such, logistics is commonly seen as a branch of engineering which creates "people systems" rather than "machine systems".
Logistics as a business concept evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one's business with materials and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time for the right price and is the science of process and incorporates all industry sectors. The goal of logistic work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.
Moving a container from road to rail transportation
[edit] Military logistics
In military logistics, experts manage how and when to move resources to the places they are needed. In military science, maintaining one's supply lines while disrupting those of the enemy is a crucial—some would say the most crucial—element of military strategy, since an armed force without food, fuel and ammunition is defenseless.
The Iraq war was a dramatic example of the importance of logistics. It had become very necessary for the US and its allies to move huge amounts of men, materials and equipment over great distances. Led by Lieutenant General William Pagonis, Logistics was successfully used for this effective movement. The defeat of the British in the American War of Independence, and the defeat of Rommel in World War II, have been largely attributed to logistical failure. The historical leaders Hannibal Barca and Alexander the Great are considered to have been logistical geniuses.
[edit] Business logistics
In business, logistics may have either internal focus, or external focus covering the flow from originating supplier to end-user (see supply chain management). The main functions of a logistics manager include Inventory Management, purchasing, transport, warehousing, and the organizing and planning of these activities. Logistics managers combine a general knowledge of each of these functions so that there is a coordination of resources in an organization. There are two fundamentally different forms of logistics. One optimizes a steady flow of material through a network of transport links and storage nodes. The other coordinates a sequence of resources to carry out some project.
[edit] Production logistics
The term is used for describing logistic processes within an industry. The purpose of production logistics is to ensure that each machine and workstation is being fed with the right product in the right quantity and quality at the right point in time.
The issue is not the transportation itself, but to streamline and control the flow through the value adding processes and eliminate non-value adding ones. Production logistics can be applied in existing as well as new plants. Manufacturing in an existing plant is a constantly changing process. Machines are exchanged and new ones added, which gives the opportunity to improve the production logistics system accordingly. Production logistics provides the means to achieve customer response and capital efficiency.
Supply chain
Supply chain
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Jump to: navigation, search
A supply chain, logistics network, or supply network is a coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer. Supply chain activities (aka value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer. Supply chains link value chains.
There are a variety of supply chain models, which address both the upstream and downstream sides.
The primary objective of supply chain management is to fulfill customer demands through the most efficient use of resources, including distribution capacity, inventory and labor.
Several companies choose to outsource their supply chain management by partnering with a 3PL, Third-party logistics provider.
Most recently researchers have focused on other aspect of optimization as well as Blendin Problem, location/allocation, Vehicle Routing and even Dynamic programming besides traditional logistics optimization.
From Wikipedia, the free encyclopedia
Jump to: navigation, search
A supply chain, logistics network, or supply network is a coordinated system of organizations, people, activities, information and resources involved in moving a product or service in physical or virtual manner from supplier to customer. Supply chain activities (aka value chains or life cycle processes) transform raw materials and components into a finished product that is delivered to the end customer. Supply chains link value chains.
There are a variety of supply chain models, which address both the upstream and downstream sides.
The primary objective of supply chain management is to fulfill customer demands through the most efficient use of resources, including distribution capacity, inventory and labor.
Several companies choose to outsource their supply chain management by partnering with a 3PL, Third-party logistics provider.
Most recently researchers have focused on other aspect of optimization as well as Blendin Problem, location/allocation, Vehicle Routing and even Dynamic programming besides traditional logistics optimization.
Engineering economics
Engineering economics
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Engineering economics, previously known as engineering economy, is a subset of economics for application to engineering projects. Engineers seek solutions to problems, and the economic viability of each potential solution is normally considered along with the technical aspects.
In U.S. undergraduate engineering curricula, engineering economics is often a required course. It is a topic on the Fundamentals of Engineering examination, and questions might also be asked on the Principles and Practice of Engineering examination; both are part of the Professional Engineering registration process.
Considering the time value of money is central to most engineering economic analyses. Cash flows are discounted using an interest rate, i, except in the most basic economic studies.
For each problem, there are usually many possible alternatives. One option that must be considered in each analysis, and is often the choice, is the do nothing alternative. The opportunity cost of making one choice over another must also be considered. There are also noneconomic factors to be considered, like color, style, public image, etc., and are called attributes.[1]
Costs as well as revenues are considered, for each alternative, for an analysis period that is either a fixed number of years or the estimated life of the project. The salvage value is often forgotten, but is important, and is either the net cost or revenue for decommissioning the project.
Some other topics that may be addressed in engineering economics are inflation, uncertainty, replacements, depreciation, resource depletion, taxes, tax credits, accounting, cost estimations, or capital financing.
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Engineering economics, previously known as engineering economy, is a subset of economics for application to engineering projects. Engineers seek solutions to problems, and the economic viability of each potential solution is normally considered along with the technical aspects.
In U.S. undergraduate engineering curricula, engineering economics is often a required course. It is a topic on the Fundamentals of Engineering examination, and questions might also be asked on the Principles and Practice of Engineering examination; both are part of the Professional Engineering registration process.
Considering the time value of money is central to most engineering economic analyses. Cash flows are discounted using an interest rate, i, except in the most basic economic studies.
For each problem, there are usually many possible alternatives. One option that must be considered in each analysis, and is often the choice, is the do nothing alternative. The opportunity cost of making one choice over another must also be considered. There are also noneconomic factors to be considered, like color, style, public image, etc., and are called attributes.[1]
Costs as well as revenues are considered, for each alternative, for an analysis period that is either a fixed number of years or the estimated life of the project. The salvage value is often forgotten, but is important, and is either the net cost or revenue for decommissioning the project.
Some other topics that may be addressed in engineering economics are inflation, uncertainty, replacements, depreciation, resource depletion, taxes, tax credits, accounting, cost estimations, or capital financing.
Industrial engineering : IE
Industrial engineering
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Industrial engineering is a branch of engineering that concerns the development, improvement, implementation and evaluation of integrated systems of people, knowledge, equipment, energy, material and process. Industrial engineering draws upon the principles and methods of engineering analysis and synthesis, as well as mathematical, physical and social sciences together with the principles and methods of engineering analysis and design to specify, predict and evaluate the results to be obtained from such systems. Industrial engineers work to eliminate wastes of time, money, materials, energy and other resources.
Industrial engineering is also known as operations management, production engineering, manufacturing engineering or manufacturing systems engineering; a distinction that seems to depend on the viewpoint or motives of the user. Recruiters or educational establishments use the names to differentiate themselves from others. In healthcare industrial engineers are more commonly known as management engineers, engineering management, or even health systems engineers.
Whereas most engineering disciplines apply skills to very specific areas, industrial engineering is applied in virtually every industry. Examples of where industrial engineering might be used include shortening lines (or queues) at a theme park, streamlining an operating room, distributing products worldwide, and manufacturing cheaper and more reliable automobiles.
The name "industrial engineer" can be misleading. While the term originally applied to manufacturing, it has grown to encompass services and other industries as well. Similar fields include operations research, systems engineering, ergonomics and quality engineering.
There are a number of things industrial engineers do in their work to make processes more efficient, to make products more manufacturable and consistent in their quality, and to increase productivity.
[edit] Areas of expertise
The expertise required by an industrial engineer will include some or all of the following elements. People with limited education qualifications, or limited experience may specialize in only a few.
On demand
Investigate problems relating to component quality or difficulties in meeting design and method constraints.
Investigate problems with the performance of processes or machines.
Implement design changes at the appropriate times.
Specifically per product (short term)
Analysis of the complete product design to determine the way the whole process should be split into steps, or operations, and whether to produce sub-assemblies at certain points in the whole process. This requires knowledge of the facilities available in-house or at sub-contractors.
Specification of the method to be used to manufacture or assemble the product(s) at each operation. This includes the machines, tooling, jigs and fixtures and safety equipment, which may have to be designed and built. Notice may need to be taken of any quality procedures and constraints, such as ISO9000. This requires knowledge of health and safety responsibilities and quality policies. This may also involve the creation of programs for any automated machinery.
Measurement or calculation of the time required to perform the specified method, taking account of the skills of the operator. This is used to cost the operation performed, to allow balancing of assembly or machining flow lines or the assessment of the manufacturing capacity required. This technique is known as work study. These times are also used in value analysis.
Specification of the storage, handling and transportation methods and equipment required for components and finished product, and at any intermediate stages throughout the whole process. This should eliminate the possibility for damage and minimize the space required.
Specifically per process (medium term)
Determine the maintenance plan for that process.
Assess the range of products passing through the process, then investigate the opportunities for process improvement through a reconfiguration of the existing facilities or through the purchase of more efficient equipment. This may also include the out-sourcing of that process. This requires knowledge of design techniques and of investment analysis.
Review the individual products passing through the process to identify improvements that can be made by redesign of the product, to reduce (or eliminate) the cost that process adds, or to standardize the components, tooling or methods used.
Generically (long term)
Analyze the flow of products through the facilities of the factory to assess the overall efficiency, and whether the most important products have priority for the most efficient process or machine. This means maximizing throughout for the most profitable products. This requires knowledge of statistical analysis and queuing theory, and of facilities positional layout.
Training of new workers in the techniques required to operate the machines or assembly processes.
Project planning to achieve timely introduction of new products and processes or changes to them.
Generally, a good understanding of the structure and operation of the wider elements of the Company, such as sales, purchasing, planning, design and finance; including good communication skills. Modern practice also requires good skills in participation in multi-disciplinary teams.
[edit] Value engineering
Value engineering is based on the proposition that in any complex product, 80% of the customers need 20% of the features. By focusing on product development, one can produce a superior product at a lower cost for the major part of a market. When a customer needs more features, sell them as options. This approach is valuable in complex electromechanical products such as computer printers, in which the engineering is a major product cost.
To reduce a project's engineering and design costs, it is frequently factored into subassemblies that are designed and developed once and reused in many slightly different products. For example, a typical tape-player has a precision injection-molded tape-deck produced, assembled and tested by a small factory, and sold to numerous larger companies as a subassembly. The tooling and design expense for the tape deck is shared over many products that can look quite different. All that the other products need are the necessary mounting holes and electrical interface.
[edit] Quality assurance and quality control
Quality control is a set of measures taken to ensure that defective products or services are not produced, and that the design meets performance requirements. Quality assurance covers all activities from design, development, production, installation, servicing and documentation. This field introduced the rules “fit for purpose” and “do it right the first time”.
It is a truism that "quality is free." Very often, it costs no more to produce a product that always works, every time it comes off the assembly line. While this requires a conscious effort during engineering, it can considerably reduce the cost of waste and rework.
Commercial quality efforts have two foci. First, to reduce the mechanical precision needed to obtain good performance. The second is to control all manufacturing operations to ensure that every part and assembly stays within a specified tolerance.
Statistical process control in manufacturing usually proceeds by randomly sampling and testing a fraction of the output. Testing every output is generally avoided due to time or cost constraints, or because it may destroy the object being tested (such as lighting matches). The variances of critical tolerances are continuously tracked, and manufacturing processes are corrected before bad parts can be produced.
A valuable process to perform on a whole consumer product is called the "shake and bake." Every so often, a whole product is mounted on a shake table in an environmental oven, and operated under increasing vibration, temperatures and humidity until it fails. This finds many unanticipated weaknesses in a product. Another related technique is to operate samples of products until they fail. Generally the data is used to drive engineering and manufacturing process improvements. Often quite simple changes can dramatically improve product service, such as changing to mold-resistant paint, or adding lock-washed placement to the training for new assembly personnel.
Many organizations use statistical process control to bring the organization to Six Sigma levels of quality. In a six sigma organization, every item that creates customer value or dissatisfaction is controlled to assure that the total number of failures are beyond the sixth sigma of likelihood in a normal distribution of customers - setting a standard for failure of fewer than four parts in one million. Items controlled often include clerical tasks such as order-entry, as well as conventional manufacturing processes.
[edit] Producibility
Quite frequently, manufactured products have unnecessary precision, production operations or parts. Simple redesign can eliminate these, lowering costs and increasing manufacturability, reliability and profits.
For example, Russian liquid-fuel rocket motors are intentionally designed to permit ugly (though leak-free) welding, to eliminate grinding and finishing operations that do not help the motor function better.
Some Japanese disc brakes have parts toleranced to three millimeters, an easy-to-meet precision. When combined with crude statistical process controls, this assures that less than one in a million parts will fail to fit.
Many vehicle manufacturers have active programs to reduce the numbers and types of fasteners in their product, to reduce inventory, tooling and assembly costs.
Another producibility technique is near net shape forming. Often a premium forming process can eliminate hundreds of low-precision machining or drilling steps. Precision transfer stamping can quickly produce hundreds of high quality parts from generic rolls of steel and aluminum. Die casting is used to produce metal parts from aluminum or sturdy tin alloys, which are often about as strong as mild steels. Plastic injection molding is a powerful technique, especially if the special properties of the part are supplemented with inserts of brass or steel.
When a product incorporates a computer, it replaces many parts with software that fits into a single light-weight, low-power memory part or micro-controller. As computers grow faster, digital signal processing software is beginning to replace many analog electronic circuits for audio and sometimes radio frequency processing.
On some printed circuit boards, itself a producibility technique, the conductors are intentionally sized to act as delay lines, resistors and inductors to reduce the parts count. An important recent innovation was the use of "surface mounted" components. At one stroke, this eliminated the need to drill most holes in a printed circuit board, as well as clip off the leads after soldering.
In Japan, it is a standard process to design printed circuit boards of inexpensive phenolic resin and paper, and reduce the number of copper layers to one or two to lower costs without harming specifications.
It is becoming increasingly common to consider producibility in the initial stages of product design, a process referred to as design for manufacturability. It is much cheaper to consider these changes during the initial stages of design rather than redesign products after their initial design is complete.
[edit] Motion economy
Industrial engineers study how workers perform their jobs, such as how workers or operators pick up electronic components to be placed in a circuit board or in which order the components are placed on the board. The goal is to reduce the time it takes to perform a certain job and redistribute work so as to require fewer workers for a given task.
Frederick Winslow Taylor and Frank and Lillian Gilbreth did much of the pioneering work in motion economy. Taylor's work sought to study and understand what caused workers in a coal mine to become fatigued, as well as ways to obtain greater productivity from the workers without additional man hours. The Gilbreths devised a system to categorize all movements into subgroups known as therbligs (Gilbreths spelled backwards, almost). Examples of therbligs include hold, position, and search. Their contributions to industrial engineering and motion economy are documented in the children's book Cheaper by the Dozen.
Industrial engineers frequently conduct time studies or work sampling to understand the typical role of a worker. Systems such as Maynard Operation Sequence Technique (MOST) have also been developed to understand the work content of a job.
Universities doing industrial engineering In the United States:
Arizona State University
Auburn University
Bradley University
California Polytechnic State University, San Luis Obispo
California State Polytechnic University, Pomona
Colorado State University, Pueblo
Clemson University
Cleveland State University
Columbia University
Cornell University
Florida International University
Georgia Institute of Technology
Iowa State University
Kansas State University
Kettering University
Lamar University Beaumont, Texas
Lehigh University
Mercer University
Montana State University - Bozeman
MSOE Milwaukee, Wisconsin
New Jersey Institute of Technology (NJIT)
New Mexico State University
North Carolina State University
North Dakota State University
Northern Illinois University
Northeastern University, Boston
Northwestern University
The Ohio State University
Ohio University
Oklahoma State University
The Pennsylvania State University
Purdue University
Rensselaer Polytechnic Institute
Rochester Institute of Technology
Rutgers University
San José State University
Southern Illinois University Edwardsville
St. Mary's University of San Antonio
Tennessee Technological University
Texas A&M University
Texas Tech University
University at Buffalo, The State University of New York
University of Arizona
University of Arkansas, Fayetteville
University of California, Berkeley
University of Central Florida
University of Florida
University of Houston
University of Illinois at Urbana-Champaign
University of Iowa
University of Louisville
University of Massachusetts Amherst
University of Michigan
University of Missouri-Columbia
University of Nebraska-Lincoln
University of Ontario Institute of Technology
University of Pittsburgh
University of Rhode Island
University of Southern California
University of South Florida, Tampa
University of Texas El Paso
University of Texas at Arlington
University of Toledo
University of Washington
University of Wisconsin-Madison
University of Wisconsin-Platteville
Virginia Tech
Western Michigan University
West Virginia University
Wichita State University
Worcester Polytechnic Institute
This is by no means a comprehensive list. Accredited programs are deemed so by Accreditation Board for Engineering and Technology (ABET), and a full list of schools that offer accredited degrees can be found on their website, http://www.abet.org/accredited_programs.shtml.
International:
Industrial & Systems Engineering Program, Department of Systems Engineering, KFUPM [1]
Bangladesh University of Engineering and Technology
Sirindhorn International Institute of Technology, Thammasat University, Pathumthani, Thailand [2]
College of Engineering ,Trivandrum,India
University of Indonesia, Jakarta, Indonesia [3]
University of GaziAntep, GaziAntep , Turkiye,[4],[5]
Bilkent University, Istanbul, Turkey
Linkoping University, Linkoping, Sweden
Boğaziçi University, Istanbul, Turkey
De La Salle University, Manila
Ecole Polytechnique de Montréal, Canada
Galatasaray University, Istanbul, Turkey
Khajeh Nasir Toosi University of Technology,Iran
Loughborough University, United Kingdom
Luleå University of Technology, Sweden
Aalborg University, Denmark
Indian Institute of Technology, Kharagpur, India
Indian Institute of Technology, Roorkee, India
Institut National Polytechnique de Grenoble (Grenoble Institute of Technology), Grenoble, France
Instituto Tecnológico de Buenos Aires, Argentina
National Institute Of Technology, Jalandhar, India
Kocaeli University, Kocaeli,Turkey
Istanbul Technical University, Istanbul, Turkey
Leyte Institute of Technology (now Eastern Visayas State University), Leyte, Philippines
Middle East Technical University, Ankara, Türkiye
National Institute of Industrial Engineering(NITIE), India
National Institute of Foundry & Forge Technology(NIFFT), India
Norwegian University of Science and Technology(NTNU), Trondheim, Norway
Pontificia Universidad Javeriana, Colombia
Pontificia Universidad Católica de Valparaíso, Chile
Pontifícia Universidade Católica do Rio de Janeiro, Brazil
Stellenbosch University, South Africa
Technion - Israel Institute of Technology, Israel
The University of Hong Kong, Hong Kong
The Hong Kong Polytechnic University, Hong Kong
TOBB Economics and Technology University, Turkey
Universidad de los Andes, Colombia
Universidad de los Andes, [www.uandes.cl], Chile
Universidad de Puerto Rico, Recinto Universitario De Mayaguez, www.uprm.edu, Puerto Rico
Universidade de São Paulo, Brazil
Universidad del Salvador, Argentina
Universidad Técnica Federico Santa María, Chile
Universidade Federal de São Carlos, Brazil
University of Birmingham, United Kingdom
University of Calgary, Canada
University of Iceland, Iceland
University of Pretoria, South Africa
Ryerson University, Canada
University of Toronto, Canada
University of Windsor, Canada
University of Tehran, Iran
Sharif University of Technology, Iran
University of the Witwatersrand, South Africa
University of Novi Sad, FTN, Serbia
University of the Philippines, Diliman, Quezon City, Philippines
University of the Philippines, Los Baños, Laguna, Philippines
University of Pune, Maharashtra, India
University of Santo Tomas, Manila, Philippines
Trisakti University, Jakarta, Indonesia
Bandung Institute of Technology, ITB, Bandung, Indonesia
Delft Technical University, TUD, Netherlands
Twente Technical University, UT, Netherlands
Eindhoven Technical University, TU/e, Netherlands
Technische Universität Darmstadt, Germany
Technische Universität Hamburg-Harburg, Germany
Technische Fachhochschule Berlin, Germany, [6]
Universität Karlsruhe, Germany
Technische Universität Braunschweig, Germany
Universidad Americana, Nicaragua
Anna University, Chennai,India
Sardar Vallabhbhai National Institute of Technology (NIT Surat),Surat,India
Seoul National University, Republic of Korea
Universidad Carlos III de Madrid. Madrid, Spain
Galway-Mayo Institute of Technology, Ireland
University College Galway, Ireland
Rajiv Gandhi University Institute Of Technology, India
Dokuz Eylül University, Izmir, Türkiye[7]
MBM Engineering College, JNV university, India
Universidade Regional do Cariri - URCA, Crato, Brazil [8]
Arcada University of Applied Science, Helsinki, Finland [9]
University of Trieste, Italy
Lebanese American University, Lebanon
NED University of Engineering and Technology, Pakistan
Universidade Federal de Santa Catarina, Brazil
Universidade Federal do Rio de Janeiro, Brazil
Visvesvaraya Technological University, India
Universidad de Lima, Peru
Monash University, Australia
Universidad José Antonio Paéz, Venezuela
Universidad de Carabobo, Venezuela
Universidad Central de Venezuela, Venezuela
Universidad Catolica Andres Bello, Venezuela
Universidad de los Andes, Venezuela
Universidad de Oriente, Venezuela
Universidad Metropolitana, Venezuela
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Industrial engineering is a branch of engineering that concerns the development, improvement, implementation and evaluation of integrated systems of people, knowledge, equipment, energy, material and process. Industrial engineering draws upon the principles and methods of engineering analysis and synthesis, as well as mathematical, physical and social sciences together with the principles and methods of engineering analysis and design to specify, predict and evaluate the results to be obtained from such systems. Industrial engineers work to eliminate wastes of time, money, materials, energy and other resources.
Industrial engineering is also known as operations management, production engineering, manufacturing engineering or manufacturing systems engineering; a distinction that seems to depend on the viewpoint or motives of the user. Recruiters or educational establishments use the names to differentiate themselves from others. In healthcare industrial engineers are more commonly known as management engineers, engineering management, or even health systems engineers.
Whereas most engineering disciplines apply skills to very specific areas, industrial engineering is applied in virtually every industry. Examples of where industrial engineering might be used include shortening lines (or queues) at a theme park, streamlining an operating room, distributing products worldwide, and manufacturing cheaper and more reliable automobiles.
The name "industrial engineer" can be misleading. While the term originally applied to manufacturing, it has grown to encompass services and other industries as well. Similar fields include operations research, systems engineering, ergonomics and quality engineering.
There are a number of things industrial engineers do in their work to make processes more efficient, to make products more manufacturable and consistent in their quality, and to increase productivity.
[edit] Areas of expertise
The expertise required by an industrial engineer will include some or all of the following elements. People with limited education qualifications, or limited experience may specialize in only a few.
On demand
Investigate problems relating to component quality or difficulties in meeting design and method constraints.
Investigate problems with the performance of processes or machines.
Implement design changes at the appropriate times.
Specifically per product (short term)
Analysis of the complete product design to determine the way the whole process should be split into steps, or operations, and whether to produce sub-assemblies at certain points in the whole process. This requires knowledge of the facilities available in-house or at sub-contractors.
Specification of the method to be used to manufacture or assemble the product(s) at each operation. This includes the machines, tooling, jigs and fixtures and safety equipment, which may have to be designed and built. Notice may need to be taken of any quality procedures and constraints, such as ISO9000. This requires knowledge of health and safety responsibilities and quality policies. This may also involve the creation of programs for any automated machinery.
Measurement or calculation of the time required to perform the specified method, taking account of the skills of the operator. This is used to cost the operation performed, to allow balancing of assembly or machining flow lines or the assessment of the manufacturing capacity required. This technique is known as work study. These times are also used in value analysis.
Specification of the storage, handling and transportation methods and equipment required for components and finished product, and at any intermediate stages throughout the whole process. This should eliminate the possibility for damage and minimize the space required.
Specifically per process (medium term)
Determine the maintenance plan for that process.
Assess the range of products passing through the process, then investigate the opportunities for process improvement through a reconfiguration of the existing facilities or through the purchase of more efficient equipment. This may also include the out-sourcing of that process. This requires knowledge of design techniques and of investment analysis.
Review the individual products passing through the process to identify improvements that can be made by redesign of the product, to reduce (or eliminate) the cost that process adds, or to standardize the components, tooling or methods used.
Generically (long term)
Analyze the flow of products through the facilities of the factory to assess the overall efficiency, and whether the most important products have priority for the most efficient process or machine. This means maximizing throughout for the most profitable products. This requires knowledge of statistical analysis and queuing theory, and of facilities positional layout.
Training of new workers in the techniques required to operate the machines or assembly processes.
Project planning to achieve timely introduction of new products and processes or changes to them.
Generally, a good understanding of the structure and operation of the wider elements of the Company, such as sales, purchasing, planning, design and finance; including good communication skills. Modern practice also requires good skills in participation in multi-disciplinary teams.
[edit] Value engineering
Value engineering is based on the proposition that in any complex product, 80% of the customers need 20% of the features. By focusing on product development, one can produce a superior product at a lower cost for the major part of a market. When a customer needs more features, sell them as options. This approach is valuable in complex electromechanical products such as computer printers, in which the engineering is a major product cost.
To reduce a project's engineering and design costs, it is frequently factored into subassemblies that are designed and developed once and reused in many slightly different products. For example, a typical tape-player has a precision injection-molded tape-deck produced, assembled and tested by a small factory, and sold to numerous larger companies as a subassembly. The tooling and design expense for the tape deck is shared over many products that can look quite different. All that the other products need are the necessary mounting holes and electrical interface.
[edit] Quality assurance and quality control
Quality control is a set of measures taken to ensure that defective products or services are not produced, and that the design meets performance requirements. Quality assurance covers all activities from design, development, production, installation, servicing and documentation. This field introduced the rules “fit for purpose” and “do it right the first time”.
It is a truism that "quality is free." Very often, it costs no more to produce a product that always works, every time it comes off the assembly line. While this requires a conscious effort during engineering, it can considerably reduce the cost of waste and rework.
Commercial quality efforts have two foci. First, to reduce the mechanical precision needed to obtain good performance. The second is to control all manufacturing operations to ensure that every part and assembly stays within a specified tolerance.
Statistical process control in manufacturing usually proceeds by randomly sampling and testing a fraction of the output. Testing every output is generally avoided due to time or cost constraints, or because it may destroy the object being tested (such as lighting matches). The variances of critical tolerances are continuously tracked, and manufacturing processes are corrected before bad parts can be produced.
A valuable process to perform on a whole consumer product is called the "shake and bake." Every so often, a whole product is mounted on a shake table in an environmental oven, and operated under increasing vibration, temperatures and humidity until it fails. This finds many unanticipated weaknesses in a product. Another related technique is to operate samples of products until they fail. Generally the data is used to drive engineering and manufacturing process improvements. Often quite simple changes can dramatically improve product service, such as changing to mold-resistant paint, or adding lock-washed placement to the training for new assembly personnel.
Many organizations use statistical process control to bring the organization to Six Sigma levels of quality. In a six sigma organization, every item that creates customer value or dissatisfaction is controlled to assure that the total number of failures are beyond the sixth sigma of likelihood in a normal distribution of customers - setting a standard for failure of fewer than four parts in one million. Items controlled often include clerical tasks such as order-entry, as well as conventional manufacturing processes.
[edit] Producibility
Quite frequently, manufactured products have unnecessary precision, production operations or parts. Simple redesign can eliminate these, lowering costs and increasing manufacturability, reliability and profits.
For example, Russian liquid-fuel rocket motors are intentionally designed to permit ugly (though leak-free) welding, to eliminate grinding and finishing operations that do not help the motor function better.
Some Japanese disc brakes have parts toleranced to three millimeters, an easy-to-meet precision. When combined with crude statistical process controls, this assures that less than one in a million parts will fail to fit.
Many vehicle manufacturers have active programs to reduce the numbers and types of fasteners in their product, to reduce inventory, tooling and assembly costs.
Another producibility technique is near net shape forming. Often a premium forming process can eliminate hundreds of low-precision machining or drilling steps. Precision transfer stamping can quickly produce hundreds of high quality parts from generic rolls of steel and aluminum. Die casting is used to produce metal parts from aluminum or sturdy tin alloys, which are often about as strong as mild steels. Plastic injection molding is a powerful technique, especially if the special properties of the part are supplemented with inserts of brass or steel.
When a product incorporates a computer, it replaces many parts with software that fits into a single light-weight, low-power memory part or micro-controller. As computers grow faster, digital signal processing software is beginning to replace many analog electronic circuits for audio and sometimes radio frequency processing.
On some printed circuit boards, itself a producibility technique, the conductors are intentionally sized to act as delay lines, resistors and inductors to reduce the parts count. An important recent innovation was the use of "surface mounted" components. At one stroke, this eliminated the need to drill most holes in a printed circuit board, as well as clip off the leads after soldering.
In Japan, it is a standard process to design printed circuit boards of inexpensive phenolic resin and paper, and reduce the number of copper layers to one or two to lower costs without harming specifications.
It is becoming increasingly common to consider producibility in the initial stages of product design, a process referred to as design for manufacturability. It is much cheaper to consider these changes during the initial stages of design rather than redesign products after their initial design is complete.
[edit] Motion economy
Industrial engineers study how workers perform their jobs, such as how workers or operators pick up electronic components to be placed in a circuit board or in which order the components are placed on the board. The goal is to reduce the time it takes to perform a certain job and redistribute work so as to require fewer workers for a given task.
Frederick Winslow Taylor and Frank and Lillian Gilbreth did much of the pioneering work in motion economy. Taylor's work sought to study and understand what caused workers in a coal mine to become fatigued, as well as ways to obtain greater productivity from the workers without additional man hours. The Gilbreths devised a system to categorize all movements into subgroups known as therbligs (Gilbreths spelled backwards, almost). Examples of therbligs include hold, position, and search. Their contributions to industrial engineering and motion economy are documented in the children's book Cheaper by the Dozen.
Industrial engineers frequently conduct time studies or work sampling to understand the typical role of a worker. Systems such as Maynard Operation Sequence Technique (MOST) have also been developed to understand the work content of a job.
Universities doing industrial engineering In the United States:
Arizona State University
Auburn University
Bradley University
California Polytechnic State University, San Luis Obispo
California State Polytechnic University, Pomona
Colorado State University, Pueblo
Clemson University
Cleveland State University
Columbia University
Cornell University
Florida International University
Georgia Institute of Technology
Iowa State University
Kansas State University
Kettering University
Lamar University Beaumont, Texas
Lehigh University
Mercer University
Montana State University - Bozeman
MSOE Milwaukee, Wisconsin
New Jersey Institute of Technology (NJIT)
New Mexico State University
North Carolina State University
North Dakota State University
Northern Illinois University
Northeastern University, Boston
Northwestern University
The Ohio State University
Ohio University
Oklahoma State University
The Pennsylvania State University
Purdue University
Rensselaer Polytechnic Institute
Rochester Institute of Technology
Rutgers University
San José State University
Southern Illinois University Edwardsville
St. Mary's University of San Antonio
Tennessee Technological University
Texas A&M University
Texas Tech University
University at Buffalo, The State University of New York
University of Arizona
University of Arkansas, Fayetteville
University of California, Berkeley
University of Central Florida
University of Florida
University of Houston
University of Illinois at Urbana-Champaign
University of Iowa
University of Louisville
University of Massachusetts Amherst
University of Michigan
University of Missouri-Columbia
University of Nebraska-Lincoln
University of Ontario Institute of Technology
University of Pittsburgh
University of Rhode Island
University of Southern California
University of South Florida, Tampa
University of Texas El Paso
University of Texas at Arlington
University of Toledo
University of Washington
University of Wisconsin-Madison
University of Wisconsin-Platteville
Virginia Tech
Western Michigan University
West Virginia University
Wichita State University
Worcester Polytechnic Institute
This is by no means a comprehensive list. Accredited programs are deemed so by Accreditation Board for Engineering and Technology (ABET), and a full list of schools that offer accredited degrees can be found on their website, http://www.abet.org/accredited_programs.shtml.
International:
Industrial & Systems Engineering Program, Department of Systems Engineering, KFUPM [1]
Bangladesh University of Engineering and Technology
Sirindhorn International Institute of Technology, Thammasat University, Pathumthani, Thailand [2]
College of Engineering ,Trivandrum,India
University of Indonesia, Jakarta, Indonesia [3]
University of GaziAntep, GaziAntep , Turkiye,[4],[5]
Bilkent University, Istanbul, Turkey
Linkoping University, Linkoping, Sweden
Boğaziçi University, Istanbul, Turkey
De La Salle University, Manila
Ecole Polytechnique de Montréal, Canada
Galatasaray University, Istanbul, Turkey
Khajeh Nasir Toosi University of Technology,Iran
Loughborough University, United Kingdom
Luleå University of Technology, Sweden
Aalborg University, Denmark
Indian Institute of Technology, Kharagpur, India
Indian Institute of Technology, Roorkee, India
Institut National Polytechnique de Grenoble (Grenoble Institute of Technology), Grenoble, France
Instituto Tecnológico de Buenos Aires, Argentina
National Institute Of Technology, Jalandhar, India
Kocaeli University, Kocaeli,Turkey
Istanbul Technical University, Istanbul, Turkey
Leyte Institute of Technology (now Eastern Visayas State University), Leyte, Philippines
Middle East Technical University, Ankara, Türkiye
National Institute of Industrial Engineering(NITIE), India
National Institute of Foundry & Forge Technology(NIFFT), India
Norwegian University of Science and Technology(NTNU), Trondheim, Norway
Pontificia Universidad Javeriana, Colombia
Pontificia Universidad Católica de Valparaíso, Chile
Pontifícia Universidade Católica do Rio de Janeiro, Brazil
Stellenbosch University, South Africa
Technion - Israel Institute of Technology, Israel
The University of Hong Kong, Hong Kong
The Hong Kong Polytechnic University, Hong Kong
TOBB Economics and Technology University, Turkey
Universidad de los Andes, Colombia
Universidad de los Andes, [www.uandes.cl], Chile
Universidad de Puerto Rico, Recinto Universitario De Mayaguez, www.uprm.edu, Puerto Rico
Universidade de São Paulo, Brazil
Universidad del Salvador, Argentina
Universidad Técnica Federico Santa María, Chile
Universidade Federal de São Carlos, Brazil
University of Birmingham, United Kingdom
University of Calgary, Canada
University of Iceland, Iceland
University of Pretoria, South Africa
Ryerson University, Canada
University of Toronto, Canada
University of Windsor, Canada
University of Tehran, Iran
Sharif University of Technology, Iran
University of the Witwatersrand, South Africa
University of Novi Sad, FTN, Serbia
University of the Philippines, Diliman, Quezon City, Philippines
University of the Philippines, Los Baños, Laguna, Philippines
University of Pune, Maharashtra, India
University of Santo Tomas, Manila, Philippines
Trisakti University, Jakarta, Indonesia
Bandung Institute of Technology, ITB, Bandung, Indonesia
Delft Technical University, TUD, Netherlands
Twente Technical University, UT, Netherlands
Eindhoven Technical University, TU/e, Netherlands
Technische Universität Darmstadt, Germany
Technische Universität Hamburg-Harburg, Germany
Technische Fachhochschule Berlin, Germany, [6]
Universität Karlsruhe, Germany
Technische Universität Braunschweig, Germany
Universidad Americana, Nicaragua
Anna University, Chennai,India
Sardar Vallabhbhai National Institute of Technology (NIT Surat),Surat,India
Seoul National University, Republic of Korea
Universidad Carlos III de Madrid. Madrid, Spain
Galway-Mayo Institute of Technology, Ireland
University College Galway, Ireland
Rajiv Gandhi University Institute Of Technology, India
Dokuz Eylül University, Izmir, Türkiye[7]
MBM Engineering College, JNV university, India
Universidade Regional do Cariri - URCA, Crato, Brazil [8]
Arcada University of Applied Science, Helsinki, Finland [9]
University of Trieste, Italy
Lebanese American University, Lebanon
NED University of Engineering and Technology, Pakistan
Universidade Federal de Santa Catarina, Brazil
Universidade Federal do Rio de Janeiro, Brazil
Visvesvaraya Technological University, India
Universidad de Lima, Peru
Monash University, Australia
Universidad José Antonio Paéz, Venezuela
Universidad de Carabobo, Venezuela
Universidad Central de Venezuela, Venezuela
Universidad Catolica Andres Bello, Venezuela
Universidad de los Andes, Venezuela
Universidad de Oriente, Venezuela
Universidad Metropolitana, Venezuela
Quality control : QC
Quality control
From Wikipedia, the free encyclopedia
Jump to: navigation, search
In engineering and manufacturing, quality control and quality engineering are involved in developing systems to ensure products or services are designed and produced to meet or exceed customer requirements. These systems are often developed in conjunction with other business and engineering discplines using a cross-functional approach.
[edit] History
Though terms like 'quality engineering' and 'quality assurance' are relatively new, the ideas have existed just as long as the very art of tool manufacture. Simple tools made of rock or bone were subject to familiar modes of failure. They could be fragile, dull where they should be sharp, sharp where they should be dull, etc. When the first specialized craftsmen arose, manufacturing tools for others, the principle of quality control was simple: "let the buyer beware" (caveat emptor).
The first civil engineering projects, however, needed to be built to specifications. For instance, the four sides of the Great Pyramid of Giza are perpendicular to within 3.5 arcseconds.
[edit] Craft and tradespersons
During the Middle Ages, guilds took the responsibility of quality control upon themselves. All practitioners of a particular trade living in a certain area were required to join the corresponding guild, and the guild instituted punishments for members who turned out shoddy products.
Royal governments purchasing material were interested in quality control as customers. For instance, King John of England appointed a certain William Wrotham to supervise the construction and repair of ships. Some centuries later, but also in England, Samuel Pepys, Secretary to the Admiralty, appointed multiple such overseers.
Prior to the extensive division of labor and mechanization resulting from the Industrial Revolution, it was possible for a workman to control the quality of his own product. Working conditions then were more conducive to professional pride.
The Industrial Revolution led to a system in which large groups of men performing a similar type of work were grouped together under the supervision of a foreman who also took on the responsibility to control the quality of work manufactured.
Quality Assurance has developed a good deal during the last 80-90 years (in about 20 year intervals) from its inception to the current state of the art.
[edit] Wartime production
During World War I, the manufacturing process became more complex, and the introduction of large numbers of workers being supervised by a foreman designated to ensure the quality of the work, which was being produced. This period also introduced mass production and piecework, which created quality problems as workmen could now earn more money by the production of extra products, which in turn led to bad workmanship being passed on to the assembly lines.
Due to the large amount of bad workmanship being produced, the first full time inspectors were introduced into the large-scale modern factory. These full time inspectors were the real beginning of inspection quality control, and this was the beginning the large inspection organizations of the 1920’s and 1930’s, which were separately organised from production and big enough to be headed by superintendents.
The systematic approach to quality started in industrial manufacture during the 1930’s, mostly in the USA, when some attention was given to the cost of scrap and rework. With the impact of mass production, which was required during the Second World War, it became necessary to introduce a more stringent form of quality control which can be identified as Statistical Quality Control, or SQC. Some the initial work for SQC is credited to Walter A. Shewhart of Bell Labs.
This system came about with the realisation that quality cannot be inspected into an item. By extending the inspection phase and making inspection organizations more efficient, it provides inspectors with control tools such as sampling and control charts.
SQC had a significant contribution in that it provided a sampling inspection system rather that a 100 per cent inspection. This type of inspection however did lead to a lack of realisation to the importance of the engineering of product quality.
For example, if you have a basic sampling scheme with an acceptance level of 4%, what happens is you have a ratio of 96% products released onto the market with 4% defective items – this obviously is a fair risk for any company/customer – unless you happen to be one of the unfortunate buyers of a defective item.
[edit] Postwar
After World War II, the United States continued to apply the concepts of inspection and sampling to remove defective product from production lines. However, there were many individuals trying to lead U.S. industries towards a more collabrative approach to quality. Excluding the U.S., many countries' manufacturing capabilities were destroyed during the war. This placed American business in a position where advances in the collabrative approaches to quality were essentially ignored.
After World War II, the U.S. sent General Douglas MacArthur to oversee the re-building of Japan. During this time, General MacArthur invited two key individuals in the development of modern quality concepts: W. Edwards Deming and Joseph Juran. Both individuals promoted the collabrative concepts of quality to Japanese business and technical groups, and these groups utilized these concepts in the redevelopment of the Japanese economy.
[edit] Quality assurance
Quality Assurance covers all activities from design, development, production, installation, servicing and documentation, this introduced the rules: "fit for purpose" and "do it right the first time". It includes the regulation of the quality of raw materials, assemblies, products and components; services related to production; and management, production, and inspection processes.
One of the most widely used paradigms for QA management is the PDCA (Plan-Do-Check-Act) approach, also known as the Shewhart cycle.
[edit] Failure testing
A valuable process to perform on a whole consumer product is failure testing, the operation of a product until it fails, often under stresses such as increasing vibration, temperature and humidity. This exposes many unanticipated weaknesses in a product, and the data is used to drive engineering and manufacturing process improvements. Often quite simple changes can dramatically improve product service, such as changing to mould-resistant paint or adding lock-washer placement to the training for new assembly personnel.
[edit] Statistical control
Many organizations use statistical process control to bring the organization to Six Sigma levels of quality, in other words, so that the likelihood of an unexpected failure is confined to six standard deviations on the normal distribution. This probability is less than four one-millionths. Items controlled often include clerical tasks such as order-entry as well as conventional manufacturing tasks.
Traditional statistical process controls in manufacturing operations usually proceed by randomly sampling and testing a fraction of the output. Variances of critical tolerances are continuously tracked, and manufacturing processes are corrected before bad parts can be produced.
[edit] Company quality
During the 1980’s, the concept of “company quality” with the focus on management and people came to the fore. It was realised that, if all departments approached quality with an open mind, success was possible if the management led the quality improvement process.
The company-wide quality approach places an emphasis on three aspects :-
Elements such as controls, job management, adequate processes, performance and integrity criteria and identification of records
Competence such as knowledge, skills, experience, qualifications
Soft elements, such as personnel integrity, confidence, organisational culture, motivation, team spirit and quality relationships.
The quality of the outputs is at risk if any of these three aspects are deficient in any way.
The approach to quality management given here is therefore not limited to the manufacturing theatre only but can be applied to any business activity:
Design work
Administrative services
Consulting
Banking
Insurance
Computer software
Retailing
Transportation...
It comprises a quality improvement process, which is generic in the sense it can be applied to any of these activities and it establishes a behaviour pattern, which supports the achievement of quality.
This in turn is supported by quality management practices which can include a number of business systems and which are usually specific to the activities of the business unit concerned.
In manufacturing and construction activities, these business practices can be equated to the models for quality assurance defined by the International Standards contained in the ISO 9000 series and the specified Specifications for quality systems.
Still, in the system of Company Quality, the work being carried out was shop floor inspection which did not control the major quality problems. This led to quality assurance or total quality control, which has come into being recently.
[edit] Total quality control
Total Quality Control is the most necessary inspection control of all in cases where, despite statistical quality control techniques or quality improvements implemented, sales decrease.
The major problem which leads to a decrease in sales was that the specifications did not include the most important factor, “What the customer required”.
The major characteristics, ignored during the search to improve manufacture and overall business performance were:-
Reliability
Maintainability
Safety
As the most important factor had been ignored, a few refinements had to be introduced:
Marketing had to carry out their work properly and define the customer’s specifications.
Specifications had to be defined to conform to these requirements.
Conformance to specifications i.e. drawings, standards and other relevant documents, were introduced during manufacturing, planning and control.
Management had to confirm all operators are equal to the work imposed on them and holidays, celebrations and disputes did not affect any of the quality levels.
Inspections and tests were carried out, and all components and materials, bought in or otherwise, conformed to the specifications, and the measuring equipment was accurate, this is the responsibility of the QA/QC department.
Any complaints received from the customers were timorously and satisfactorily dealt with.
Feedback from the user/customer is used to review designs.
If the original specification does not reflect the correct quality requirements, quality cannot be inspected or manufactured into the product.
For instance, all parameters for a pressure vessel should include not only the material and dimensions but operating, environmental, safety, reliability and maintainability requirements.
To conclude, the above forms the basis from which the philosophy of Quality Assurance has evolved, and the achievement of quality or the “fitness-for-purpose” is “Quality Awareness” throughout the company.
From Wikipedia, the free encyclopedia
Jump to: navigation, search
In engineering and manufacturing, quality control and quality engineering are involved in developing systems to ensure products or services are designed and produced to meet or exceed customer requirements. These systems are often developed in conjunction with other business and engineering discplines using a cross-functional approach.
[edit] History
Though terms like 'quality engineering' and 'quality assurance' are relatively new, the ideas have existed just as long as the very art of tool manufacture. Simple tools made of rock or bone were subject to familiar modes of failure. They could be fragile, dull where they should be sharp, sharp where they should be dull, etc. When the first specialized craftsmen arose, manufacturing tools for others, the principle of quality control was simple: "let the buyer beware" (caveat emptor).
The first civil engineering projects, however, needed to be built to specifications. For instance, the four sides of the Great Pyramid of Giza are perpendicular to within 3.5 arcseconds.
[edit] Craft and tradespersons
During the Middle Ages, guilds took the responsibility of quality control upon themselves. All practitioners of a particular trade living in a certain area were required to join the corresponding guild, and the guild instituted punishments for members who turned out shoddy products.
Royal governments purchasing material were interested in quality control as customers. For instance, King John of England appointed a certain William Wrotham to supervise the construction and repair of ships. Some centuries later, but also in England, Samuel Pepys, Secretary to the Admiralty, appointed multiple such overseers.
Prior to the extensive division of labor and mechanization resulting from the Industrial Revolution, it was possible for a workman to control the quality of his own product. Working conditions then were more conducive to professional pride.
The Industrial Revolution led to a system in which large groups of men performing a similar type of work were grouped together under the supervision of a foreman who also took on the responsibility to control the quality of work manufactured.
Quality Assurance has developed a good deal during the last 80-90 years (in about 20 year intervals) from its inception to the current state of the art.
[edit] Wartime production
During World War I, the manufacturing process became more complex, and the introduction of large numbers of workers being supervised by a foreman designated to ensure the quality of the work, which was being produced. This period also introduced mass production and piecework, which created quality problems as workmen could now earn more money by the production of extra products, which in turn led to bad workmanship being passed on to the assembly lines.
Due to the large amount of bad workmanship being produced, the first full time inspectors were introduced into the large-scale modern factory. These full time inspectors were the real beginning of inspection quality control, and this was the beginning the large inspection organizations of the 1920’s and 1930’s, which were separately organised from production and big enough to be headed by superintendents.
The systematic approach to quality started in industrial manufacture during the 1930’s, mostly in the USA, when some attention was given to the cost of scrap and rework. With the impact of mass production, which was required during the Second World War, it became necessary to introduce a more stringent form of quality control which can be identified as Statistical Quality Control, or SQC. Some the initial work for SQC is credited to Walter A. Shewhart of Bell Labs.
This system came about with the realisation that quality cannot be inspected into an item. By extending the inspection phase and making inspection organizations more efficient, it provides inspectors with control tools such as sampling and control charts.
SQC had a significant contribution in that it provided a sampling inspection system rather that a 100 per cent inspection. This type of inspection however did lead to a lack of realisation to the importance of the engineering of product quality.
For example, if you have a basic sampling scheme with an acceptance level of 4%, what happens is you have a ratio of 96% products released onto the market with 4% defective items – this obviously is a fair risk for any company/customer – unless you happen to be one of the unfortunate buyers of a defective item.
[edit] Postwar
After World War II, the United States continued to apply the concepts of inspection and sampling to remove defective product from production lines. However, there were many individuals trying to lead U.S. industries towards a more collabrative approach to quality. Excluding the U.S., many countries' manufacturing capabilities were destroyed during the war. This placed American business in a position where advances in the collabrative approaches to quality were essentially ignored.
After World War II, the U.S. sent General Douglas MacArthur to oversee the re-building of Japan. During this time, General MacArthur invited two key individuals in the development of modern quality concepts: W. Edwards Deming and Joseph Juran. Both individuals promoted the collabrative concepts of quality to Japanese business and technical groups, and these groups utilized these concepts in the redevelopment of the Japanese economy.
[edit] Quality assurance
Quality Assurance covers all activities from design, development, production, installation, servicing and documentation, this introduced the rules: "fit for purpose" and "do it right the first time". It includes the regulation of the quality of raw materials, assemblies, products and components; services related to production; and management, production, and inspection processes.
One of the most widely used paradigms for QA management is the PDCA (Plan-Do-Check-Act) approach, also known as the Shewhart cycle.
[edit] Failure testing
A valuable process to perform on a whole consumer product is failure testing, the operation of a product until it fails, often under stresses such as increasing vibration, temperature and humidity. This exposes many unanticipated weaknesses in a product, and the data is used to drive engineering and manufacturing process improvements. Often quite simple changes can dramatically improve product service, such as changing to mould-resistant paint or adding lock-washer placement to the training for new assembly personnel.
[edit] Statistical control
Many organizations use statistical process control to bring the organization to Six Sigma levels of quality, in other words, so that the likelihood of an unexpected failure is confined to six standard deviations on the normal distribution. This probability is less than four one-millionths. Items controlled often include clerical tasks such as order-entry as well as conventional manufacturing tasks.
Traditional statistical process controls in manufacturing operations usually proceed by randomly sampling and testing a fraction of the output. Variances of critical tolerances are continuously tracked, and manufacturing processes are corrected before bad parts can be produced.
[edit] Company quality
During the 1980’s, the concept of “company quality” with the focus on management and people came to the fore. It was realised that, if all departments approached quality with an open mind, success was possible if the management led the quality improvement process.
The company-wide quality approach places an emphasis on three aspects :-
Elements such as controls, job management, adequate processes, performance and integrity criteria and identification of records
Competence such as knowledge, skills, experience, qualifications
Soft elements, such as personnel integrity, confidence, organisational culture, motivation, team spirit and quality relationships.
The quality of the outputs is at risk if any of these three aspects are deficient in any way.
The approach to quality management given here is therefore not limited to the manufacturing theatre only but can be applied to any business activity:
Design work
Administrative services
Consulting
Banking
Insurance
Computer software
Retailing
Transportation...
It comprises a quality improvement process, which is generic in the sense it can be applied to any of these activities and it establishes a behaviour pattern, which supports the achievement of quality.
This in turn is supported by quality management practices which can include a number of business systems and which are usually specific to the activities of the business unit concerned.
In manufacturing and construction activities, these business practices can be equated to the models for quality assurance defined by the International Standards contained in the ISO 9000 series and the specified Specifications for quality systems.
Still, in the system of Company Quality, the work being carried out was shop floor inspection which did not control the major quality problems. This led to quality assurance or total quality control, which has come into being recently.
[edit] Total quality control
Total Quality Control is the most necessary inspection control of all in cases where, despite statistical quality control techniques or quality improvements implemented, sales decrease.
The major problem which leads to a decrease in sales was that the specifications did not include the most important factor, “What the customer required”.
The major characteristics, ignored during the search to improve manufacture and overall business performance were:-
Reliability
Maintainability
Safety
As the most important factor had been ignored, a few refinements had to be introduced:
Marketing had to carry out their work properly and define the customer’s specifications.
Specifications had to be defined to conform to these requirements.
Conformance to specifications i.e. drawings, standards and other relevant documents, were introduced during manufacturing, planning and control.
Management had to confirm all operators are equal to the work imposed on them and holidays, celebrations and disputes did not affect any of the quality levels.
Inspections and tests were carried out, and all components and materials, bought in or otherwise, conformed to the specifications, and the measuring equipment was accurate, this is the responsibility of the QA/QC department.
Any complaints received from the customers were timorously and satisfactorily dealt with.
Feedback from the user/customer is used to review designs.
If the original specification does not reflect the correct quality requirements, quality cannot be inspected or manufactured into the product.
For instance, all parameters for a pressure vessel should include not only the material and dimensions but operating, environmental, safety, reliability and maintainability requirements.
To conclude, the above forms the basis from which the philosophy of Quality Assurance has evolved, and the achievement of quality or the “fitness-for-purpose” is “Quality Awareness” throughout the company.
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