IE research paper

Industrial engineering and TQM

-V.H.Y. Lo     -D. Sculli

Department of Industrial and Manufacturing Systems Engineering, University of Hong Kong, Hong Kong

TQM is defined as the “Management philosophy and company practices which aim to harness the human and material resources of an organization in the most effective way to achieve the objective of the organization”. One of the closest disciplines to TQM is that of industrial engineering (IE); both are directly and indirectly concerned with industrial efficiency, and a cross-comparison of the two can yield some interesting parallels. Though the concepts embodied in TQM may be relatively new, the concepts of industrial efficiency embodied in the discipline of IE are almost a century old. One of the most widely accepted definitions of industrial engineering is the one used by the American Institute of Industrial Engineers: Industrial Engineering is concerned with the design, improvement, and installation of integrated systems of men, materials, and equipment. It draws upon specialized knowledge and skills in the 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 a system.

Parallels between IE and TQM

IE has developed from two main approaches to improving efficiency in the workplace, i.e. motion study and scientific management or time study. Harrington in 1911, he put forward 12 principles of efficiency as the basis for effective operations:

(1) clearly defined ideas;

(2) problem identification;

(3) competent counsel;

(4) reliable and adequate records;

(5) discipline;

(6) fair deal;

(7) common sense;

(8) despatching;

(9) standards and schedules;

(10) standard operations;

(11) written standard practice instructions;

(12) efficiency reward

These 12 principles were established more than 80 years ago,and they still hold relevance. This is because the basic concept of doing a job well holds true today as much as it did then. The basic concept of doing a job well can also be taken as the starting point for quality management. These principles and parallels with TQM are can be summarized as follows:

• The first two principles refer to clearly defined ideas and objectives. Any scientific approach to problem solving must obviously be objective, and a clearly defined objective often goes a considerable way towards solving any problem.

• The next principle refers to competent counsel or expertise. This indirectly statesthe essential need for training. 

• The two IE principles of integrated system design and the availability of reliable and timely information can be mapped into the ISO 9000 series of quality assurance management systems.

• The IE principle of discipline can be interpreted in terms of the need for standards and quality reference manuals.

• The IE principle concerned with the need for continuous improvement of any integrated system is related to TQM in terms of the kaizen concepts relating to the need for continuous improvements.

• Another IE principle uses the words “common sense” to imply that the need for certain actions should be obvious. In general terms, the need for quality and TQM is obvious when viewed from a need to satisfy customers in a competitive market.

• The IE principle covering the need to monitor and implement changes in integrated systems successfully can be translated into the TQM need for certification of the ISO 9000 series and awards such as the USA-based Malcolm Baldrige Award.

• Another IE principle refers to effective communications and ergonomics. 

• Finally, two other principles of IE require the effective management of inventories and despatching. In terms of TQM, this parallels Clause 4.15 of ISO 9001 covering handling, storage, packaging and delivery.

Some distinctions can be made between IE and TQM. IE techniques have evolved with the direct objective of achieving particular goals in designing, implementing and effectively maintaining operating systems.

TQM, on the other hand, is essentially a system whereby the qualities of a product or service are maintained and enhanced through economic considerations. The IE and TQM integrated approaches are illustrated in Figure 1, from which it can be seen that these are almost identical. 

The main difference can be regarded as one of the “expert approach” versus the “total participation approach”. IE is essentially an expert approach, starting with the intensive professional degree training of industrial engineers. The industrial engineers then conduct studies in the various company departments of the organization by which to achieve efficiencies and quality improvement. However, rapidly developing production technology,  an increasing complexity of organization and rapidly changing customer preferences make the expert approach to problem solving more difficult, requiring more time for analysis and redesign. 

This suggests a need to modify this expert approach towards TQM which directly emphasizes total participation, and also requires that all staff in the organization be “experts” in contributing to, and maintaining, any efficiency and quality improvements achieved. The IE approach emphasizes the skills aspects, i.e. practical and reliable improvement methodologies. This includes techniques and scientific know-how for quality improvement such as time and motion study, ergonomics, anthropometry, environmental aspects of noise and illumination, man, machine interface, etc. However, IE appears to place relatively less emphasis on people, psychology , and the “soft” systems procedures than does TQM. TQM places more emphases on human considerations, and the customer-driven project management all of which appear to be more concerned with human behavior.

reference: http://dx.doi.org/10.1108/09684879510093335