Industrial Management Principles

Industrial Engineering & Management (Lecture 1-2) Dr. Salam Nazhan Chemical Engineering Department College of Engineering , University of Diyala 2018

Management Men, Money, materials and machines; this definition evolved very clearly with respect to the manufacturing management, industrial management- you can t think of management without these four M s - you can always add market, you can always add one more dimension to it; men, money, materials and machines. Men includes certainly women. So, it is the human resource, the people dimension as well as the money; what we used to earlier call as general process has been split into money, materials and machines.

Management: An art or science The management is the oldest art and the youngest science Management as an art: It has been propounded that managers are born not made. It is an inherent trait and it cannot be learned by formal training or knowledge. It is similar to being a painter or poet. There are a no of cases in which some people have become successful without having been specifically educated for the profession. They have depended upon intuition and experience rather than formal education. Management as a science: Management may not exact science, but the application of scientific methods to management problems has proved to be effective. Mathematical techniques have been successfully applied in problems involving inventories, service facilities, assignment of jobs to machines for optimal results, optimal allocation of scarce and limited resources to different projects etc. The argument of management being an art was rejected by scientific management pioneers of Fredrick W. Taylor, Henry Gantt, Henry Feyol , Frank and Lilian Gilbreth who believed that the management process could be translated into a set of methodologies and techniques which can be learned and communicated.

Importance of industrial management 1- Identification of opportunities to get first mover advantage. 2- Sensitization of management to cope with rapid change. 3- Formulation of strategies and polices 4- Tapping Resources 5- Better Performance 6- Continuous learning process 7- Increase in desire of people for enhancement of quality of life. 8- Advances in Production technology 9- Advances in information technology 10- Increased use of e-payment mechanism like credit card, debit card, electronic fund transfer. 11- Better standard of living of people as a result of available of better goods. 12- Technology up gradation.

Functions of Management Firstly it considers management as a "process" i.e. a systematic way of doing things. Secondly it states five management activities: Planning Organizing Staffing Leading Controlling

Functions of Management Planning is thinking of an action in advance. Planning is setting organisational goals and deciding on the course of action to achieving them. Here selecting a course of action is referred to as decision making. Planning is futuristic in the sense that the company has to identify the opportunities and threats that lie in future and to decide the course of action now to exploit the opportunities and prepare to face the threats. Planning involves forecasting and predicting the future. This requires the ability to understand the needs of the customer and divide means to achieve them

Functions of Management Organizing is co-ordination of the human and material resources of an organization. Organising is defined as the management functions of assigning duties, grouping tasks, establishment authority and allocating resources required to carry out a specified job. To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel s . To organize a business involves determining & providing human and non- human resources to the organizational structure. Organizing as a process involves: Identification of activities. Classification of grouping of activities. Assignment of duties. Delegation of authority and creation of responsibility. Coordinating authority and responsibility relationships.

Functions of Management Staffing: Staffing is the function of hiring and retaining a suitable work force for the enterprise both managerial as well as non-managerial levels. It involves the processing of recruiting, training, developing, compensating and evaluating employees and maintaining the workforce with proper incentives and motivations. Leading is the third basic managerial function which is almost challenging of all managerial functions. . Leading is defined as a set of processes used to get people to work together to meet the set goals. Leading is the function of influencing, motivating, and directing human resources towards achievement of organisational goals. Leading involves: Working with people and by establishing a proper atmosphere, managers help their employees do their best.

Functions of Management Controlling means the attempt to ensure no deviation from the norm or plan. Controlling is the final phase and refers to monitoring of organisational progress towards goals. The Management should determine what activities and/or outputs are critical to success, how and where they can be measured with reasonable cost effectiveness and who should have the authority for corrective action. The controlling functions involve three main elements: 1-Establishing standards of preference. 2- Measuring current performance. 3-Comparing the performance with the established standards. 4-In case of deviation, taking corrective action.

In Ten Years We improve organized work.

References Introduction to Industrial Engineering, by Z. Max Shen Industrial Engineering, by N. J. Manck Industrial Management, by Shiv Jhalani Reference Books: 1. Management by Knootz. 2. Management by Griffin. 3. Management theory and Practices by JS Chandan.