OIE351 INTRODUCTION TO INDUSTRIAL ENGINEERING L T P C 3003

UNIT I INTRODUCTION 9

Concepts of Industrial Engineering – History and development of Industrial Engineering –

Roles of Industrial Engineer – Applications of Industrial Engineering – Production
Management Vs Industrial Engineering – Production System – Input Output Model –
Productivity – Factors affecting Productivity – Increasing Productivity of resources – Kinds
of Productivity measures.

1. CONCEPTS OF INDUSTRIAL ENGINEERING

Industrial engineering is a field of engineering that focuses on optimizing complex systems,

processes, and organizations to improve efficiency, productivity, quality, and safety. Industrial
engineering is a branch of engineering management concerned with how to make or do things
better.

This may involve increasing efficiency, reducing production costs, improving quality control,
ensuring the health and safety of employees, protecting the environment or complying with
government regulations.

Industrial engineers work to reduce any waste of time, money, materials, energy or other
commodities by streamlining procedures and manufacturing processes.

American Industry of Industrial Engineering (AIIE) has defined the industrial engineering
field as “Concerned with the design, improvement and installation of integrated systems
of people, material, equipment and energy”

2. HISTORY AND DEVELOPMENT OF INDUSTRIAL ENGINEERING

The evolution of industrial engineering has been defined in five different stages. These stages
are mentioned below as:

Phase 1: Pre-Industrial Revolution Era

Phase 2: Industrial Revolution Era
Phase 3: Scientific Management Phase
Phase 4: Operations Research and Quantitative Management Phase
Phase 5: Automation and Computer-Integrated Manufacturing (Modern Management)
Pre-industrial Revolution Era

Prior to the Industrial Revolution in the early 1800s, there was focus on only manual operated
manufacturing activities. There was no factory concept; mostly, handicraft and agriculture
products, etc. were dominated in the trade. Three major developments in this era are given
below as:

1774: James Watt developed the steam engine.

1776: Adam Smith wrote The Wealth of Nations and advocated the concept of division of
labour, skill development, specialization, etc. (Smith 1776).

1798: Concept of interchangeability of parts was developed by Whitney and was used in
manufacturing of musket (Hatfield 2013).
Industrial Revolution

Industrial engineering emerged as a profession during the Industrial Revolution. This was due
to the requirement of technically qualified and skilled people, who were needed to plan,
organize and control the manufacturing processes. After the industrial revolution, Taylor and
Gilbreth (Frank B. Gilbreth and his wife, Lillian Gilbreth) contributed a lot to the field of
industrial engineering and later these contributions were known as the base of Scientific
Management.

Scientific Management

Following contributions, as mentioned in chronological order, form a major part of Scientific

Management:

1910: F. W. Taylor’s Scientific Management

1911: Gilbreth’s Motion Study
1913: Gantt’s Scheduling Chart
1917: Harris Inventory Control
1924: Shewart’s Statistical Control Chart
1927–33: Elton Mayo’s Motivation Theory
1932: Babbage Wage payment and Time Study
1933: Barnes Work Study
Fredrick Winslow Taylor (Popularly known as F. W. Taylor) is considered the Father of
Scientific Management. His ideas influenced by Adam Smith’s book The Wealth of Nations,
published in 1776; Thomas Malthus’s Population Theory, published in 1798; David Ricardo’s
Principles of Political Economy and Taxation, published in 1817; John Stuart Mill’s
Principles of Political Economy, published in 1848; and Charles W. Babbage’s book on the
Economy of Machinery and Manufacturers, published in 1832.

Taylor’s four principles are enumerated as follows (Taylor 1911):

1. Replace working by ‘rule of thumb,’ use the scientific method to study a work and
determine the most efficient way to perform specific tasks.

2. Job specialization, i.e. rather than simply assign workers to do any job, match worker’s
capability and motivation to their jobs, and train them to work at maximum efficiency.

3. Monitor worker performance, and provide instructions and supervision to ensure that they
are using the most efficient ways of working.

4. Allocate the work between managers and workers so that the managers spend their time on
management, allowing the workers to perform their tasks efficiently.

Second major contributions in the field of scientific management are from Gilbreth family
(Frank B. Gilbreth and his wife, Lillian Gilbreth). Frank B. Gilbreth focused on
identification, analysis, measurement and setting standards for the fundamental motions,
which were required to accomplish a job. His contributions were appreciated to set the
standard time and method to perform a task. Lillian Gilbreth worked on a human relation
aspect of engineering.

Another major contribution also came from Henry L. Gantt. He provided the concept of
planning and scheduling the activities on a graphical chart, widely known as Gantt Chart.
This is very helpful in reviewing the progress and updating the schedule of work.
The major development of industrial engineering was emerged during the period 1920–1940.

In 1924, W. A. Shewhart developed the concept of Statistical Control Chart to measure the
quality.

During this period, concepts of inventory control, incentive plans, material handling, plant
layout, etc. were evolved. Ralph M. Barnes worked on motion study for his doctoral work.

Operations Research and Quantitative Phase

During World War II, concepts of Operations Research were developed and used to optimize
the resources allocated in the war. During this phase, the concept of linear programming (LP)
was developed by Dantiz. Some of the major developments observed during this phase are
mentioned below as:

1956: First NC machine was developed.

1961: First time Robot was used.
1965: Flexible automation was used.
Automation and Computer-integrated Manufacturing Phase

During this phase, most of the automation and computer-integrated manufacturing concepts
were implemented in the industries. Concepts of lean manufacturing and Just-In-Time (JIT)
were developed in automobile industries (Toyota manufacturing system)

Factory of the Future

Factory of the future will be highly automated. Robots will be used for various operations
such as material handling, loading and unloading of jobs, welding, painting, etc. Most of the
manual work will be eliminated.

3. ROLES OF INDUSTRIAL ENGINEER

● Advisor /Consultant - available to others for interpretation of data, review etc.

● Advocate / Activist – promote actively a process or approach.
● Analyst – separate a whole into parts and examine them to explore for insight and
characteristics.
● Boundary spanner – bridge the information / interest gap between industrial
engineering and user.
● Motivator – provide stimulus and skill availability to a group or individual.
● Decision maker – select a preference from among many alternatives for topic of
concern.
● Designer / planner – produce the solution specifications.
● Expert – provide a high level of knowledge, skill, and experience on a specific topic.
● Coordinator and Integrator
● Innovator / inventor – seek to produce a creative or advanced technology solutions.
● Measure – obtain data and facts about existing conditions.
● Project manager – operate, supervise and evaluate projects.
● Trainer / educator – in the skills and knowledge of industrial engineering.
● Data gatherer
● Negotiator
4. APPLICATIONS OF INDUSTRIAL ENGINEERING

Industrial engineering finds application in various sectors and industries, contributing to the
optimization of systems, processes, and resources. Here are some common applications of
industrial engineering:

Manufacturing: Industrial engineers play a critical role in optimizing manufacturing

processes to enhance efficiency, quality, and productivity. They design production layouts,
develop work methods, and implement automation technologies to streamline workflows and
minimize waste.

Supply Chain Management: Industrial engineers optimize supply chain operations to

ensure the smooth flow of materials, information, and resources from suppliers to customers.
They analyze logistics networks, manage inventory levels, and implement strategies to
improve responsiveness and reduce costs.

Healthcare: Industrial engineers apply their expertise to improve the efficiency and
effectiveness of healthcare delivery systems. They optimize hospital operations, design
patient flow processes, and develop scheduling algorithms to enhance patient care, reduce
wait times, and minimize healthcare costs.

Transportation and Logistics: Industrial engineers optimize transportation systems and

logistics networks to improve efficiency and reduce costs. They design transportation routes,
develop vehicle routing algorithms, and implement inventory management strategies to
enhance the performance of transportation and logistics operations.

Service Industries: Industrial engineers apply their skills to improve service delivery
processes in sectors such as banking, retail, hospitality, and telecommunications. They
analyze customer service workflows, optimize service delivery systems, and develop
strategies to enhance customer satisfaction and loyalty.

Energy and Utilities: Industrial engineers work to optimize energy production and
distribution systems to improve efficiency and sustainability. They analyze energy
consumption patterns, optimize power generation processes, and develop strategies to reduce
energy waste and environmental impact.

Construction and Infrastructure: Industrial engineers play a role in optimizing

construction processes and managing infrastructure projects. They develop project schedules,
allocate resources, and implement strategies to improve construction productivity, reduce
costs, and minimize project delays.

Information Technology: Industrial engineers contribute to the design and optimization of

IT systems and software applications. They analyze user requirements, design user interfaces,
and develop algorithms to improve system performance, usability, and reliability.

Environmental Sustainability: Industrial engineers work to minimize the environmental

impact of industrial operations by designing sustainable processes and systems. They develop
strategies to reduce waste, optimize resource utilization, and minimize pollution in industries
such as manufacturing, energy, and transportation.

Product Design and Development: Industrial engineers collaborate with product designers
and engineers to optimize the design and development process. They conduct feasibility
studies, analyze product lifecycle costs, and develop strategies to improve product quality,
manufacturability, and time-to-market.

5. PRODUCTION MANAGEMENT

Production management is the process of managing production inputs (raw materials, capital
and labor) to produce outputs (finished products).

Production management centers on two major areas:

● Design of the production system which includes product, process, plant, equipment
and so on.
● Development of the control systems to manage inventories, product quality,
production schedules and productivity.
● Operations are at the center of the diagram because they are the dynamic doing
elements of the production process.
Production Management Cycle
Factors related to design of production process:
1. Product design
2. Job and process design
3. Equipment selection and replacement
4. Labor skills and training program
5. Input materials selection including raw materials and subcontracting.
6. Plant selection and layout.
7. Scheduling steps of the plan.
8. Implementing and controlling the schedule.
9. Operating the production system.

The figure includes consideration of control system such as:

1. Inventory control policies.
2. Quality control policies.
3. Production – schedule control policies
4. Productivity and cost control policies.
5. Constructing control systems
6. Implementing and operating control systems.
7. Modifying policies and designs.

PRODUCTION MANAGEMENT VS INDUSTRIAL ENGINEERING

Production management – familiarize a person with concepts and techniques specific to the
analysis and management of a production activity.
Industrial Engineering – deals with the analysis, design and control of productivity system.
Productive system - any system that produces either a product or a service.
Production Management – tells how to manage in a production environment.
 6. PRODUCTION SYSTEM

Production is any process or procedure developed to transform a set of input elements like
men, materials, capital, information, and energy into a specified set of output elements like
finished products and services.

In other words, production is a value-addition process through which raw material is

converted into finished goods. Some examples of production are producing furniture, mobile
phone, computer, car, etc.

A production system consists of inputs, i.e. raw materials, conversion subsystems, i.e. man
and machine, control system, i.e. quality control and reliability, and outputs, i.e. finished
products. All these components are interrelated to each other as shown in Figure 1.1. There
are a number of other subcomponents of production systems.

Type of Production Systems

On the bases of volume and variety of products, production systems can be classified as job
shop production, batch production, mass production and continuous production.

Job-shop Production

Job-shop production is characterized by manufacturing of a large variety of products in small

quantities that are designed and produced as per specifications given by customers. The main
feature of this production system is highly flexible. A job-shop comprises general-purpose
machines arranged in different departments. The process layout is most suitable for this type
of production system. Each job requires unique technical requirements and processing on
machines in a certain sequence.

Characteristics of Job-shop Production

1. Machines and methods employed are generic type as product changes are quite frequent.
2. Planning and control systems are flexible enough to deal with the frequent changes in
product designs.
3. Manpower is skilled enough (cross-functional) to deal with changing work conditions.
4. Schedules are actually not fixed or predetermined in this system as no definite data is
available on the product.
5. In-process inventory is usually high as accurate plans and schedules do not exist.
6. The product cost is normally high because of high material and labour costs.
7. Grouping of the machines is done on a functional basis (i.e. lathe section, milling section,
etc.)
8. This system is highly flexible as the management has to manufacture varying product
types.
9. Material handling systems are also highly flexible to meet changing product requirements.
Advantages of Job-shop Production

1. Most suitable for production of a variety of products due to the use of general-purpose
machines.
2. Opportunities for learning multiple skills and getting varied exposure to the workers.
3. The full potential and skill of operators can be utilized.
4. Importance to creativity and innovative ideas.
Limitations of Job-shop Production

1. Higher cost due to low volume of production and lack of economies of scale.
2. Higher inventory cost due to higher level of inventory at all levels.
3. A complicated production planning is used.
4. Unnecessary movement of men and materials cannot be avoided in the shop due to
application of functional layout.
Batch Production

Batch production is a type of production in which the job passes through the functional
departments in batches, and each batch may have a different routing. Batch production is
characterized by the manufacture and stocking of a limited number of products at regular
intervals, awaiting sales.

Characteristics of Batch Production

1. Shorter production runs are used.

2. Flexible manufacturing is most suitable.
3. Plant and machinery set-up is used for production of items in a batch and a change in
set-up may be required for processing the next batch.
4. Manufacturing lead time and cost of production are lower as compared to job-shop
production due to higher volume.
5. As the final product is standard compared to job-shop production and manufactured in
batches, economy of scale can be achieved up to some extent.
6. Machines are grouped on a functional basis similar to the job-shop manufacturing.
7. Semi-automatic and special-purpose automatic machines are generally used to take
advantage of the similarity among the products.
8. Labours are multi-skilled and work upon different product batches.
9. In-process inventory is usually high owing to the type of layout and material handling
policies adopted.
10. Semi-automatic material handling systems are most appropriate in conjunction with the
semi-automatic machines.
11. Normally, production planning and control is difficult due to the odd size and the
nonrepetitive nature of order.
Advantages of Batch Production

1. There is better utilization of plant and machinery compared to job-shop production.

2. Batch production promotes functional specialization.
3. Cost per unit is lower as compared to job-shop production.
4. Investment is lower in plant and machinery.
5. It is flexible enough to accommodate and process a number of products.
6. Job satisfaction exists for operators.
Limitations of Batch Production

1. Material handling is complex because of irregular and zigzag flows.

2. Production planning and control becomes complicated.
3. Work-in-process inventory is higher compared to mass/continuous production.
4. Higher set-up costs due to frequent changes in the set-up.
Mass Production

Manufacture of discrete components or assemblies in a very large volume is called mass

production. Machines are arranged in a line according to the sequence of operations on the
product in product layout. Product and process standardization exists and all outputs follow
the same path.

Characteristics of Mass Production

1. Product and process sequences are standardized.

2. Special-purpose machines having higher production rate are used.
3. Production volume is large.
4. Production cycle time is shorter compared to job-shop and batch production systems.
5. In-process inventory is low.
6. Flow of materials, components and parts is continuous and without any backtracking.
7. Material handling can be completely automatic.
Advantages of Mass Production
1. It has high production rate with reduced cycle time.
2. Less skilled operators may be employed.
3. Low in-process inventory is used.
4. Manufacturing cost per unit is low.
Limitations of Mass Production
1. Breakdown of one machine stops the entire production line.
2. The line layout needs major change with changes in the product design, that is, the layout
is less flexible.
3. Higher investment in production facilities is required.
4. The cycle time is determined by the slowest operation.
Continuous Production

Production facilities for continuous production are arranged as per a predetermined sequence
of production operations from the first operation to the finished product. The items are made
to flow in a sequence of operations through material handling devices such as conveyors,
transfer devices, etc. A highly rigid type of machine layout is used for continuous production.

Characteristics of Continuous Production

1. Dedicated plant and equipment is employed.
2. Material handling is fully automated.
3. The production process follows a predetermined sequence of operations.
4. Component materials cannot be readily identified with the final product.
5. Planning and scheduling are a routine action.
Advantages of Continuous Production
1. Product and process sequences are highly standardized.
2. The production rate is very high with reduced cycle time.
3. Capacity utilization is higher than the other production systems due to line balancing.
4. Manpower is not required for material handling, as it is completely automated.
5. A person with limited skills can be used on the production line.
6. The unit cost is lower due to the high volume of production.
Limitations of Continuous Production
1. Flexibility to accommodate and process a number of products does not exist.
2. Very high investment is required for setting flow lines.
3. Product differentiation is limited.
7. INPUT OUTPUT MODEL
It is one of the basic models of the production system. A production system is the set of
interconnected input-output elements and is made up of three component parts namely inputs,
process and outputs.

𝑂𝑢𝑡𝑝𝑢𝑡
The efficiency of an engineering system = 𝐼𝑛𝑝𝑢𝑡
<=1 and a system with output equal to
input is considered to be ideal. Hence, the efficiency is utter failure and end of the
business. The efficiency has to be greater than one which means a state of profit. A
production management system comprehends and integrates both engineering and economic
criteria in its activities.

8. PRODUCTIVITY

Production and productivity are two different terms having different meanings. Higher
production does not mean higher productivity, and vice versa. Production is related to the
activity of producing goods or services. It is a process of converting inputs into some useful,
value-added products/services. Productivity is concerned with how effectively the resources
are utilized to increase the output of production. The productivity can be improved by
increasing the output for same inputs or keeping constant output for deceased amount of
inputs or increasing the output in greater proportion than the increase in inputs. Productivity
may be calculated using the following formula:

Productivity = Output/Input

Productivity relates the efficient utilization of input resources for producing goods or
services.

Production is a measure of the output or volume produced. The emphasis is only on volume
of production and not on how well the inputs or resources are utilized. In contrast,
productivity emphasizes only on the ratio of the output produced to the inputs used.
Productivity may be divided into two categories: partial productivity and total productivity.

Partial Productivity

Partial productivity is the ratio of the total output and individual input in the case of
multifactor productivity (MFP) (Solow 1957). This term is used to measure the productivity
of an individual input such as manpower, capital invested and energy utilized in production.
Partial productivity is defined on the basis of the class of the input being considered. For
example, if the labour was increased by 18 per cent during the last financial year, its effect on
the increased output is represented by partial productivity. Similarly, partial productivity of
capital, material and other inputs may be defined. The various components of partial
productivity and their uses are shown in Table 1.1.
Advantages of Partial Productivity Measure
1. It is a good diagnostic measure to identify areas where improvements are required.
2. It is easy to calculate because it is independent of other inputs.
3. The management finds it easy to understand and pinpoint the logic for its improvement.
4. It is easy to benchmark (compare) with other industries.
5. Data may be easily generated for it.
Limitations of Partial Productivity Measure
1. It can be misleading if used out of context.
2. It does not represent the overall effect of the system performance since it is concerned with
the contribution of a specific input only and not all the resources.
3. Focused areas of improvements are difficult to identify. Therefore, sometimes wrong areas
of management control may be identified for improvement.
4. It gives a myopic view of the performance of production systems. This means, only limited
factors, which affect the output or performance, are considered.
5. It misses the holistic (or totality) approach.
Total Factor Productivity

TFP is the ratio of net output to the sum of associated labour and capital inputs. Net output
means total output minus intermediate goods and services purchased. Notice that the
denominator of this ratio is made up of only the labour and capital input factors.

Advantage of TFP

(a) It is relatively easy to compare data from company records.

(b) Industrialist prefers this as it is easy to compare in cross-industrial context.

Limitations of TFP

(a) Many important inputs, such as material, energy, etc., are ignored.

(b) The net output does not reflect the efficiency of the production system in a proper way

Efficiency

It is the ratio of output to standard output expected. Therefore, efficiency indicates a measure
of how well the resources are utilized to accomplish a target or result. Efficiency may be
calculated using the following formula:

Efficiency = Output/Standard output

Here standard output means output without loss, e.g. for a student 100 (full marks) is the
standard output and the marks obtained by him is simply output.

Effectiveness and Productivity Index

The term ‘effectiveness’ is a measure of the degree of accomplishment or achievement of an
objective (target). For example, a man rushes to the market to buy some medicines for a
patient. He could go by a car, or by a bicycle or on foot. The cost and time are different for
different modes of travel. Now suppose by the time the medicine is brought the patient dies,
then the effort is not effective.

Effectiveness represents the degree of success in accomplishing objectives. Therefore,

effectiveness indicates a measure of how well a set of targets or results are accomplished.

Productivity is the integration of both efficiency and effectiveness. It indicates a combined

effect of resource utilization (i.e. efficiency) and performance (i.e. effectiveness). The
combined effect of efficiency and effectiveness is used in defining a term called productivity
index:

Productivity Cycle

The productivity cycle consists of four phases: productivity target planning, productivity
comparison, productivity improvement and productivity measurement.

In the first phase, a target of productivity is to be fixed considering various factors such as
availability of resources and the production demand. In the second phase, productivity is
compared with the productivity of competitor firms or the productivity of other sections in
the same firm. In the third phase, the opportunities and scope of productivity improvement
are highlighted and used for improvement. Finally, in the fourth phase, productivity is
measured in other terms like efficiency. Efficiency represents the system’s ability to produce
very close to standard output, i.e. output/standard output. But it is also used frequently as
output/input, mathematically.

9. FACTORS AFFECTING PRODUCTIVITY

There are various factors that influence productivity of an organization, such as man,
machine, materials, space, energy, time and finance.

Man is one of the important parts of the production system. The number of employees, their
skills and motivation affect the productivity of the system.
Machines play an important role in improving the productivity. To improve the machine’s
availability, proper maintenance is required.

Similarly, the third important component of production system is material’s cost and quality.
A high-quality material at low cost increases the productivity of the system. T

he time consumed in different processes such as inspection, maintenance, production affects

the productivity of the system. In a similar way, proper utilization of space, energy saving and
effective use of money increases the productivity.

Man: The productivity of man depends on the following processes:

1. Selection of an employee
2. The training given to employees
3. Number of personnel required for a job
4. Provision of incentive for workers
Machine: The productivity of a machine depends on the following factors:
1. Number of machines employed
2. Replacement policy for existing machines
3. Maintenance plans to avoid machine breakdown
Material: The following factors affect the productivity of a material:
1. Right quality
2. Right quantity
3. Substitutes for the existing material
4. Inspection and quality control programmes
5. Cost of material procurement and handling
Time: It affects the productivity in the following ways:
1. Inspection time for raw material
2. Inspection time for finished products
3. Production time
4. The time required to repair and maintenance work
Space: Utilization of space affects the productivity in the following ways:
1. Plant layout
2. The total area covered for production work
3. Location of different departments and shops
Energy: Use of energy affects the productivity in the following ways:
1. Energy-saving schemes
2. Use of renewable energy sources
3. Use of solar energy
Finance: Availability and efficient use of financial facilities affect the productivity.
Reasons for Lower Productivity
There are various reasons of poor productivity. Some of them are mentioned as follows:
1. Poor production planning and control
2. Low motivation of people
3. Lack of coordination
4. Unavailability of right tools, material and human force
5. Poor product design
6. Lack of standardization
7. Poor working environment
8. Non-standard methods of working
9. No accountability for loss of production
10. Government rules and regulations
11. Old age of plant and equipments
12. Weak R & D.
10. INCREASING PRODUCTIVITY OF RESOURCES

Ways to Improve Productivity

The productivity of any system can be improved either by proper use of resources or by
effective utilization of the system or its processes. Some action plans for productivity
improvement are listed below:
Machine
1. Manual labour is replaced by machines
2. Reliable machines
3. Automation.
Management
1. Motivated workforce
2. Better planning and coordination
3. Effective control over the system.
Process
1. Computerization of the system
2. Use of Management Information System (MIS)
3. Improvement in scheduling
4. Better material flow
5. Fast and accurate retrieval of parts.
Work design
1. Improved job design
2. Better work method
3. On-job training.
Work environment
1. Better lighting and illumination
2. Better ventilation
3. Safe workplace
4. Total quality management (TQM).
Programme
1. Quality circle
2. Suggestion scheme
3. Incentive scheme
4. Revise pay or policy.
Technology
1. Acquiring new technology such as Electro-Chemical Machining (ECM), etc.
2. Acquiring automated assembly line, for example, Surface-Mounting Technology (SMT)
for printed circuit board assembly unit.
3. Acquiring computer-controlled machines, such as Computer Numerical Control (CNC) or
Direct Numerical Control (DNC).
4. Using Automated Guided Vehicle (AGV) for material transportation.
Manufacturing strategy
1. Changing the manufacturing system from functional to a cellular layout if it is a batch
production unit.
2. Adopting stockless production strategy and JIT framework in the production unit.
3. Keeping the workplace clean and environment-friendly (also termed as green-production
system).
4. Opting for total change in the process/product or strategy if the system is not working
properly (also known as Business Process Re-engineering or BPR).
External environment
1. Better political stability
2. Boosting economy and purchasing capacity of buyers
3. Globalization and open market economy
The Technology used to Improve Productivity
1. Technology-based techniques: Computer-Aided Design (CAD), Computer-Aided
Design and Drafting (CADD), Computer-Aided Engineering (CAE), Computer-Aided
Process Planning (CAPP), Computer-Aided Quality Control (CAQC), ComputerAided
Instruction (CAI), Computer-Aided Manufacturing (CAM), robotics, Group
Technology (GT) and Total Productive Maintenance (TPM).
2. Product-based techniques: Reliability, simplification, standardization, diversification
and Research and Development (R & D).
3. Material-based techniques: Material Requirement Planning (MRP), Economic Batch
Quantity (EBQ), Economic Order Quantity (EOQ), JIT and material handling.
4. Task-based techniques: Work simplification, work measurement, time study, method
study, job analysis, job evaluation, merit rating, job safety and production scheduling.
5. Employee-based techniques: Incentive scheme, management by objective, job
enlargement, job enrichment, recognition and punishment, Total Quality Management
(TQM) and zero defects.

10. KINDS OF PRODUCTIVITY MEASURES.

Guidelines for Productivity Measurement Systems

Productivity measurement is directly related to the productivity improvement programme.
A good productivity measurement should have the following characteristics.
1. It should be simple in calculation, meaningful, easy to understand and use, and provide the
status of productivity in the organization.
2. It should be accurate enough to present a realistic assessment as perfect accuracy is an
unreasonable expectation.
3. It should help in identifying the areas of low productivity so that productivity efforts
can be applied to that area for improvement.
4. It should provide indices and information for comparison of performance for different
periods.
5. It should provide indices and information for comparison of performance with other
similar organizations/operations.
6. It should provide the information on interrelationship of different subsystems.
7. It should incorporate both tangible and intangible outputs and inputs to the system.
8. The productivity measurement system should be hierarchical in nature; the productivity at
lower levels gives productivity of subsystem and the productivity of subsystems translates
into overall productivity of the system.
9. It should facilitate to devise a reward or an incentive scheme for the workers.
10. It should lead to the participation and involvement of employees of various levels.
11. It should be economical and administratively easy to run the productivity measurement
system.
12. It should be independent from the changes in monetary values and external disruptions.