hands on operations industrial engineering management e-book

Industrial Engineering Management Basic knowledge

L | C | LOGISTICS ENTERPRISE SUPPLY CHAIN MANUFACTURING & COMMERCIAL LOGISTICS OPERATIONS …._____ _ PROCESS INNOVATION-OPTIMIZATION & ENGINEERING PROJECTS MANAGEMENT….

Industrial Engineering Management E-Book

INDUSTRIAL ENGINEERING MANAGEMENT FUNDAMENTALS AND HOW IT WORKS

January 2015

Expertise in Process Engineering Optimization Solutions & Industrial Engineering Projects Management

Supply Chain Manufacturing & DC Facilities Logistics Operations Planning Management

INTRODUCTIONBasic knowledge

Ever since the time when digital computers came up into the business world, the merge between Industrial Engineering, Operations Management, and Computer’s Information Systems have gone through several evolutionary and at times revolutionary phases, and they are still going on Moreover, the most interesting thing, is the various names used in trying to define the merge of optimization techniques, computer communications technology, and operations management processes

The point is, that, following this trend; more names will come up, from time to time, re-inventing the wheel to market new merges; just to rename them; like “Fresh Innovation Excellent Manufacturing and Commercial Supply Chain Logistics Operations Management in the Digital Market Information Web Cloud and smart phone social media world”.


However the backbone of it lies in understanding, and defining what those manufacturing and commercial business operations are, and how is it possible to make the link between information systems, computer communications and Industrial Engineering Techniques, within manufacturing and commercial operations management This Industrial Engineering work is based on manufacturing and commercial operations logistics know-how from real world applications in the “Fast Moving Consumer Goods”, the “Every one’s every day Household Goods”, the “Protein Food & Beverage Products, as well as from “Industrial Materials Handling, Electronics, Mechanical, mechatronics and Chemical Manufacturing Products”

The focus is in understanding the Enterprise Business Operations, their customer’s base and culture; how do they build their service management culture, involving: operational functions such as, their sales order taking, invoicing, goods returns, goods exchanges, customers credit control, customers’ bills collection; how they merge into their accounts receivable operations, their customers data base, their goods sales price list, and many other activities


How do they take advantage of their customer data in their telemarketing call sales operations; how do they use modern on-line sales media to plan for their marketing events schedules, how do they manage their real time on-line inventories data base in the web You need to have a look at their Information Reporting Systems, and understand their full ERP or manufacturing and commercial distribution accounting system; focus on their Chart of Accounts, stock items, assembly items, and the way to create and transfer inventories across all manufacturing and commercial distribution operational processes in their ERP or Computer Information System Get to know their manufacturing and commercial warehousing operations and inventories deployment control; how they plan their urban deliveries and nationwide transportation, their Sea-Air freight forwarding, Import-Export customs clearance s, In-land transportation, and heavy machinery equipment transportation; learn their Milk-run and JIT transportation systems as well as their Price Per Parts transportation costing


You have to distinguish between Facilities Assets Investments, and Capacity installed utilization, from manufacturing and commercial operations costing, cash flow, resources waste and financial failure Understand how to set up a strategic procurement & customer alliances, designing negotiation strategies and mastering those techniques; integrating your Supply Chain in both, production manufacturing and distribution logistic operational processes New markets are actually the old or existing markets; what makes the difference is the way those markets are supported; how new methods and technology operates in a most effective and efficient way; not necessarily at the lowest cost, but rather with higher response speed and volume flow; with accuracy and an easy functional way or mode of operation and service


You can start by understanding your Products Customers Demand; work on your products sales forecast, study your commercial and manufacturing products’ assembly structure and/or bill of materials; work on the analysis and balancing of the production lines and its processes; analyze your production capacity utilization, production machinery equipment yields, your labor force productivity ratios Study your raw and packaging material’s procurement operations, all the way from purchase requisition ordering to receiving; leading to the loading of each production lines based on production work order instructions, FG warehousing operations, customer sales order processing, and delivery of goods to customer. Look at the full cycle Understand your manufacturing facilities sanitation operations, and engineering maintenance; your technical manpower resources skills and capabilities; understand each one of the production lines work stations equipment engineering, and its mode of operation; analyze your production lines maintenance cost, production rates, and its efficiency, production yields and waste; then have a macro look and understand the overall manufacturing and commercial operations process efficiency as a system, rather than as individual units


Work on modeling the complete process into a continuous-discrete and yet random events simulation model. You can start by working with spreadsheet tables, linking a set of data parameters with variables from all your manufacturing and commercial operation functions; with the view to build your Profit & Lost results into a single dashboard spreadsheet table, with graphs and other visuals Industrial Engineering (IE), Operations and Information Systems Management, are about the approach to manage available technology and use it in continuous improvement engineering, through projects to optimize lean productive processes and bring up yield efficiency gains; it is about managing the plant facilities manufacturing equipment, such as {drinking water processing, waste water processing, energy conservation through sound plant engineering facilities maintenance, improving existing production lines manufacturing processes through technologies, and upgrading the operators’ technical skills knowledge} IE is about integrating new ERP computer information systems, triggering specific actions, affecting management decisions and staff meeting agreements with strategic directions


It is about understanding the Company Mission, company Goals, company measurable objectives to achieve those Goals, and their related strategies giving direction on how to achieve the company Goals; then set up and plan a number of Engineering projects to work in making happen each and every strategic decision It is about the importance of a having within the enterprise an organized infrastructure to generate “Finished Goods or Industrial Products – Services Demand Plan and the official sales forecast” Often, no one within the management team uses any statistical mathematical models, and at least they should understand basic arithmetic statistical formulas and mathematical analysis methods Together with the salesman forecasts, and their expected sales idea, from their marketing promotional events, it is possible to produce a Finished Goods Demand Plan, which is the basic platform to optimal maximum profits and sales; which is one of the Enterprise Goals


You should be a practitioner to appreciate the difficulties involved in managing the marketing demand plan’s forecast and convert it into a manufacturing production schedule, with Finished products output You have to understand its effects to materials procurement and production planning, production line-operations, back of the factory storage and deliveries to distribution centers and to cross-docks It is a great challenge to keep the plant facilities systems supporting production continuously; to minimize production lines equipment breakdowns, labor turns over, and production plan’s adjustments due to continuous market or demand fluctuations


You need to have accurate customer sales order data processing, minimize your warehousing inventory picking shortages, a minimum of credit control blocks and, checking receiving and dispatch goods for distribution, as well as a feasible nationwide transport schedule Minimize computer break-downs affecting invoices, urban-metropolitan delivery routes schedules, dispatched volumes controls and trucks capacity utilization, dispatching new, expanded or reduced delivery routes Besides being knowledgeable on efficient consumer response concepts, as well as with just on time production planning and customer service management techniques You need to be familiar with implementation problems regarding newer computer communications technology, computer hardware power and software capabilities; web technology, mobile and social media technology; you need to know how to manage the new IT professionals, systems analysts and computer programmers


You need to know how to manage the Enterprise top management its administrative staff, external consultants, and manage your time You have to master the Assertive personality, acting techniques and be skillful in all business negotiation techniques to deal with all type of Suppliers, Customers, Subordinates and top Management This practical Industrial Engineering work is written to help you as a professional to understand, what to look for, within a project, while surveying- mapping the “Enterprise Operations” as well as to know the required functional-operational Reverse-Engineering activities What we don’t discuss here is, the financial effect from cash flow mismanagement, critical mistakes from implementing strategies and policies out of context and, top management misinterpreted vision from industry and competitor’s reality, as well as top management lack of sensitivity and overall lack of understanding of the business they are running through people, machines and supporting systems in manufacturing and commercial business


Many enterprises in the retail, household and fast moving consumer goods industry, fail to implement their new ERP computer system, even with technical support from software vendor’s consultants, business process re-engineering specialists, and other computer communications network-hardware and software engineers, as well as the enterprise cross-function operational staff This is because of the absence of a professional hands-on operations manager with extensive direct operational and computer information system experience, who can manage people and understand MIS – ERP systems, logistics and production systems The project manager should come from the enterprise staff and not from the ERP consultants or ERP software supplier. The absence of such operations project manager will only increase the risk to fail to implement any ERP project Many enterprises have choose the ERP project manager from the ERP consultants and failed paying a high cost


The enterprise challenge and benefit from using an ERP system is the opportunity to integrate all their operational functions data, and to process it faster and accurately, finally to make it available in an open working environment such as the web-cloud internet system The bottleneck is the ability of the enterprise operational admin staff to learn and to adapt this technology to their business operation and ways to control their daily work The danger is that if the enterprise does not embraces mandatory changes, then, the popular ERP system has the menace to fail and become a methodology, just as it happen a few decades ago with Operations Research Techniques This work will help you to shortcut the time required to learn about practical aspects on the subjects addressed, which are the main operation’s bottleneck problems, without discussing theories

INTRODUCTIONBasic knowledge The main focus is on practical engineering aspects to get the job done without going

through the human side of the management team and their continuous struggle for internal power, status and influence in the decision making process outside their area of competence and naïve ignorance This work deals with the enterprise management and technician’s technical inefficiencies in poor human resources management skills The lack of technical knowledge at all management levels, including technicians, admin staff, supervisors, foreman and operators, is one of the main enterprise obstacle to achieve improvements and superior competitiveness within their industry

This work addresses the ability to produce work by supervisors and managers; discuss about the workers union members affecting the enterprise productivity and the risk to loose it all ERP systems and Supply Chain Information Systems developments, meet in the enterprise as two separate disciplines though they are linked. Although bonded technically in all operational aspects; most manufacturing, commercial processes of fast moving consumer goods distribution, to be successful, in their quest for functional integration, are required to distinguish their industry’s variety functional operating processes, which are common to both


This work, is to help you to understand most of the existing operational differences within the fast moving consumer goods, house hold goods distribution and their manufacturing industry Enterprises differ due to their own organization nature and specific technological and operational management skills However, in principle, general business practices do not do so and this means, the ERP general business applications logic is standard for all manufacturing and distribution operations Their functions parameters’ settings and friendly user’s use are as efficient and effective as their hosting hardware system capabilities, communications and on-line real time data processing speed, and storage capacity availability


First, it is necessary to understand the proposed ERP software application data processing mechanics, terminology and logic, as well as their data management procedures. To do so, you need to model your entire Enterprise Business Functions, its main data entry, query and reporting operations, followed by its data relationship analysis and a terminology glossary

Some ERP systems define some terminology in several ways different from others and even different from international standard parameters, just like programming languages call a routine-algorithm a procedure, a data base file is now a table Review screen-by-screen and report by report as they tend to have more variables and parameters required than the ones your operations already uses, or miss some information required by your company operations. The setting of parameters is always a nightmare and the bottleneck of the consultants, as they tend to go around and short explain their uses or reasons from absences within the ERP system


With the understanding of the proposed ERP software system applications, its mechanics and terminology, the next step is to map and identify all operational similarities between your Enterprise business operation processes and the ERP system Leading, to re-engineer your Enterprise operational processes and to manage required changes, doing this step will save you from the consultants proposing a number of mini projects The next generation techniques will deal with the problems of business alliances coordination between enterprises, so do expect more new names coming up besides ECR, SCM, ERP, social media, cloud, web technology, wireless internet and all those already popular like Logistics and Operations


Making Efficient Consumer Response and Supply Chain Management work effectively and efficiently, requires that all business “partners” cooperate and share demand forecast information, taking actions leading to reduce total cost by ways of increasing inventory turns, reducing transportation cost, using electronic internet web based technology, documents data transfer and information queries online It will be require that manufacturing and sales distribution logistics are improved. Already in most industries, production planning is a big bottleneck. There are still weak links across all corporate functions, such as marketing, manufacturing, sales admin, human resources, top management, and their mixed perception of their markets and their competitors


Your logical fresh mind will tell you that all these concepts are rather obvious and far from being complex, but these complexities are the level of detail’s and understanding which you can workout with your own common sense This work will help you to go through the enterprise world and yet to keep yourself focus on the technical work required to get the job done, which is what it really matters. Until then, enjoy reading this work and, good luck Luis Cabrera (Thailand

Industrial Engineering Management Basic knowledge

L | C | LOGISTICS ENTERPRISE SUPPLY CHAIN MANUFACTURING & COMMERCIAL LOGISTICS OPERATIONS ….

_____ _ PROCESS INNOVATION-OPTIMIZATION & ENGINEERING PROJECTS MANAGEMENT….

Industrial Engineering Management E-Book

INDUSTRIAL ENGINEERING MANAGEMENT FUNDAMENTALS AND HOW IT WORKS

January 2015

Expertise in Process Engineering Optimization Solutions & Industrial Engineering Projects Management

Supply Chain Manufacturing & DC Facilities Logistics Operations Planning Management

THANK YOU

hands on operations industrial engineering management e-book

Engineering

sales operations

commercial business

enterprise business

accounts receivable

service management culture

customers base

industrial materials

customers data base