AIM Conference “Enterprise
Restructuring/Improvement”
The Future of Industrial
Engineers
Skopje, September, 2011
Prof. Robert Minovski, PhD
Content


Part 1:Presentation of the Division of the
IE&M
Part 2: The Future of Industrial Engineers
 The
Future of Industrial Engineering
 The Future of the Education of Industrial
Engineers
 The Future Demand for Industrial Engineers

General Conclusion
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Part 1:Presentation of the
Division of the IE&M
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Part 1:
Presentation of our Division of IE&M
Faculty of Mechanical Engineering - Structure
FACULTY OF
MECHANICAL
ENGINEERING
Computing and
other technical
Administration
support
Institute of
Institute of
Manufacturing
Thermo technique
Engineering
and Thermo energy
Division: Industrial
Engineering and
Management
Institute of
Institute of
Hydraulic,
Mechanization
Pneumatic and
Machines and
Automation
Division:
Metal cutting
Machines and
Processes
Vehicles
Division:
Deformation
Technology
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Institute of Welding
and Welding
Constructions
Institute of
Mechanics
Section of
Mathematics and
Informatics
Total number of students
Enrollment in 2011
Teaching staff
~ 2000
~ 300
64
Our Mission

to contribute to the development,
management and overall improvements of
the manufacturing and servicing
organizations
through

relevant regular and continuous education,
research and technology transfer,
collaborating with experts in different fields
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Division of Industrial Engineering and
Management: Activities
Education
• Manufacturing
•
•
•
•
•
•
•
•
•
systems
Operations research
Management
Project Management
Product Development
Work Study
Management of
Technology
Entrepreneurship and
Small Business
Modeling and
Simulation
...
Research
• Methodology for
•
•
•
•
•
•
•
•
Enterprise
Restructuring
CAPP
IS
Technical
Investment
Planning
Organizational
Design
Capacity Planning
HRM
PPC
...
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Applied Projects
• Enterprise
•
•
•
•
•
•
•
•
•
Restructuring
Factory Planning
Implementation of
New Technologies
Continuous
Improvement
Investment
Planning
Business Start-Up
Quality Management
Logistics and SCM
Process optimization
...

Part 2: The Future of Industrial
Engineers

The Future of Industrial Engineering
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
Definition of IE
Brief overview of the history of IE
Brief overview of the present status of IE
Future directions of IE
Development of the methods on the example of the Performance
Measurement Systems (PMS)

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


The importance of the PMS
Our work connected with PMS and enterprise restructuring
Our future work on PMS and enterprise restructuring
The Future of Education of Industrial Engineers
The Future Demand for Industrial Engineers
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Definition of Industrial Engineering
to design or to
improvement
determine the systems for the
product
physical
requirements. distribution of
goods and services
and to determine
the most efficient
plant locations.
to
eliminate
worker
fatigue
to
increase/
maximize
efficiency
development
to design or to
of production
improvement
systems for the
planning
and
physical
distribution of
control
goods and
services and to
procedures
determine the
to develop
methods for
handling
and
transporting
materials
most efficient
plant locations.
redesign and
standardization
of
manufacturing
processes
develop
management
control systems
to aid in
financial
planning and
cost analysis
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
to
increase/maximize
productivity
through the
management of
people, methods of
business
develop
organization,
andwage and
technology salary
administration
systems and job
evaluation
programs
design
production
planning and
control
systems to
coordinate
activities and
ensure product
quality
In few words I would say that
Industrial Engineering is
dealing with the
optimization of systems
and processes (in given
circumstances)
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
General Hipo(thesis)
The basic ideas connected with the IE
stays the same
they are completely the same as the initial
ones and no changes in that direction are
expected
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Brief overview of the IE history (1)




Non-formal, very early beginnings may be
located with the cognitive functioning of the
people
The real beginnings are connected with the
industrial revolution
For the first time the term “Industrial
Engineering” appears in 1901 in the journal
“The Engineering Magazine” by James Guin
The fundamental breakthroughs are made by
the people like Taylor and Gilbreth
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Brief overview of the IE history (2)



First implementation was associated with the
production organizations and direct workers
In the 70-ies and 80-ies in the last century
serious introduction of the mathematical
tools occurred – Operational Research are
becoming a part of every serious course of IE
First steps toward implementation of IE for
indirect work places were done, together
with the implementation in service
organizations
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Brief overview of the present
situation of IE
Customer
satisfaction
Globalization
 Technological
development (Internet
and other technologies)
 The fall of socialist
regimes, ...
Increased DYNAMIC of
the market
Changes in the functioning of the
organizations
 New approach to the quality
 Time becomes one of the most
important competitive factors
 Change in the treatment of the
labor force
 Flexible approach to the
customer demands
 Innovativeness is in the focus
...
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Implementation of new
methods in different fields
of the functioning of
organizations
New approaches that are now
implemented in IE







ERP (Enterprise Resource Planning)
CRM (Customer Relationship Management)
SCM (Supply Chain Management)
BI (Business Intelligence)
SD (Systems Dynamic)
SaaS (Software as a Service)
…
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
The future of IE - General
Hipo(thesis)
The basic idea connected with the IE
stays the same
it is completely the same as the initial one and
no changes in that direction are expected
What will be changed is:
 New methods that will be applied
 New (non-typical) areas of implementation
 New types of organizations
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
New methods

Future demands
 Greater
accuracy
 Bigger speed
 More complex organizations


Methods with more solid mathematical
background
More intensive utilization of IT
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Type of organization
service
New nontypical areas
manufacturing
direct
typical
non-typical
indirect
Type of workers
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Typical areas
Why there and why now?



Same principles of IE can be applied in those
industries
Over-saturation (to some extent) of the
implementation of the IE in
traditional/typical areas
Extreme growth of the turnover in some nontypical industries, like sports and
entertainment
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Some examples of Sports Business
Management study programs
University
Title
Offered
Courses
University of Central Florida
California State University--Long Beach
http://web.bus.ucf.edu/sportbusiness/?page=9
29
http://www.csulb.edu/colleges/chhs/programs/sports
-management/overview/program-description/
Master's in Sport Business Management
Master of Arts in Kinesiology
Option: Sport Management
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Organizational Behavior and Development (3.0)
Applied Business Research Tools (3.0)
Managerial Accounting Analysis (3.0)
Economic Analysis of the Firm (3.0)
Leadership in Sport (1.5)
Strategic Marketing Management (3.0)
Applied Strategy and Business Policy (3.0)
Strategic Financial Management (3.0)
Moral and Ethical Issues in Sport (1.5)
Diversity and Social Issues in Sport (1.5)
Strategic Supply Chain Management (3.0)
Professional Sport Industry (1.5) or Intercollegiate Sport
Industry (1.5)
Professional Selling in Sport (3.0) or Facilities and Event
Management (3.0)
Global Environment in Sport (3.0)
Sport Law (3.0)
Strategic Sport Marketing (3.0)
Business of Sport Media (3.0)
Internship (3.0)
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -

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Foundations of Sport Management (3 units)
Sport in U.S. Culture (3 units)
Facility and Event Planning in Sport (3 units)
Sport Marketing, Fundraising, and Development (3 units)
Sport Finance ( 3 units)
Research Methods (3 units)
Legal and Ethical Issues in Sport (3 units)
Literature in Sport Management (3 units)
Sport Management Internships (6 units Internships, 3 units
Field Studies)
Sport Management Capstone Preparation (3 units)
Type of organization
New types of
companies
service
manufacturing
big
direct
indirect
medium
small & micro
Type of workers
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Company size
Why there and why now?





Small and micro organizations are dealing with less
complex problems in general
They have limited resources, especially in man-power
Over-saturation of the implementation of the IE in big
and (to some extent) in medium enterprises
Many IE approaches can be modified and delivered to
small and micro organizations in the similar way as
SaaS
The big number of small and micro organizations
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Performance Measurement
Systems (PMS)

Why PMS?
They are the backbone of the continuous
improvement which makes them important and
connected with several other approaches, like:
 Enterprise Restructuring
 TQM
 BI
 Simulation
 etc.
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
COMPASS (methodology for enterprise
restructuring) – basic idea
Customer demands
Top management
Strategy
Goals of the strategy
GAP ANALYSIS I/P MATRIXES

consistency of the strategy goals and
the performance measures
Insight in the enterprise doing
Analysis
Benchmarking
Performance
Measurement
Actions for improvement of the
situation
PERFORMANCE MEASUREMENT SISTEM
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Main mission of the
enterprise
COMPASS – the
PMS model
Maximising the profit
Customer satisfaction demands
Responds to
the demands
Constraints
 Wide product mix
specific demands
standard demands
 Quality
product quality
quality
service quality
delivery quality
 financial
product price
 Time
time for delivery
 Ecology
re-cycling
...
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
 Economical
constraints
profitability
cash flow
capital growth
ROI
market share
 Legislative
 Social constraints
...











Purchasing
Marketing
R&D
Design
Manufacturing
Quality management
Logistics
Maintenance
PPC
Assembly
Sales

...
KEs and subKEs
 Time
 duration
 reliability
 compressibility
 Quality
 potentials
 performance
 accuracy
 Flexibility
 product mix
 quantity
 innovation
 Costs
 material
 labour
 equipment
 overhead
 Productivity
 material
 labour
 facilities
 energy

<=>
...
Future work on COMPASS

Implementation of more reliable and accurate
methods for support of the generation of Success
Factors



Concurrent Markov Decision Processes (CMDP) - modeling
of certain subKEs
Method of Minimal Squares (together with the decision
tree) - to make causal-effect analysis on certain subKEs in
order to quantify the impact of certain influential factors
Improvement of the simulation part



Discrete Event Simulation (DES)
System Dynamic (SD)
Hybrid Simulation Model
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Aplication of Method of Minimal
Squares in COMPASS
…
Second level of
influential
factors
Influential
factor 21
Indicator I21
…
First level of
influential
factors
К21-11
К21-1n
Level of subKE
Influential
factor 11
Indicator I11
Influential
factor 12
Indicator I12
К11-1
К12-1
subKE1
К1n-1
Indicator R1
Influential
factor 1n
Indicator I1n
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Hybrid Simulation
Model
external
factors
Simulation model with SD
Importance of
competitiveness
competitiveness
indicator
indicator
Redefining the strategic plans
according the operational
performance
Converting strategic goals to
operational plan
trend of the
importance
Performance of
competitiveness
competitiveness
indicator
indicator
internal
factors
operations
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Simulation model with DES

Part 2: The Future of Industrial Engineers
 The
Future of Industrial Engineering
 The Future of the Education of Industrial
Engineers
 The Future Demand for Industrial Engineers
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
General directions
The education in the near future in general will
continue to follow the idea of Competence
Based Learning
 Generic competences
 Specific competences
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
General Competences – some
examples
1. Creativity (i.e. the ability to solve a problem in a new way)
2. Flexibility (i.e. ability to adapt and be open to new situations)
3. Teamwork and Relationship Building (i.e., ability to work in teams and to utilize appropriate interpersonal skills to build relationships with
colleagues, team members and external stakeholders)
4. Critical/Analytical (i.e, ability to analyze problems and situations in a critical and logical manner)
5. Self
and Time Management
(i.e., ability to organize oneself, one’s time and schedule effectively and reliably)
6. Leadership (i.e., ability to take responsibility for a task, give direction, provide structure and assign responsibility to others)
7. Ability to see the
across borders)
bigger picture (i.e., ability to see how things are interconnected; ability to think both strategically and operationally, working
8. Presentation (i.e., ability to prepare and deliver effective presentations to different audiences)
9. Communication (i.e., The ability to communicate clearly and concisely, the ability to use communication skills to positively influence individual
behaviour, using a range of verbal and written methods)
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Specific competences – some
directions




Solid basics of mathematics and IT
Strengthening some of the core IE subjects, like MoT,
Modeling and Simulation, PPC, etc.
Strengthening the corpus of competences that will
prepare industrial engineers for management
positions, through subjects like General
Management, Human Resource Management,
Economical and Financial Aspects in Organizations,
Marketing, Business Law and Negotiation, etc.
Some traditional subjects/courses may lose their
strong importance and may be incorporated in other
courses, like Work Study in PPC or Process Planning
or Ergonomics, etc.
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -

Part 2: The Future of Industrial Engineers
 The
Future of Industrial Engineering
 The Future of Education of Industrial Engineers
 The Future Demand for Industrial Engineers
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Employment of industrial
engineers
(source:US Department of Labour, 2008)
Civil engineers
278,400
Mechanical engineers
238,700
Industrial engineers
214,800
Electrical engineers
157,800
Electronics engineers, except computer
143,700
Computer hardware engineers
74,700
Aerospace engineers
71,600
Environmental engineers
54,300
Chemical engineers
31,700
Health and safety engineers, except mining safety engineers and inspectors
25,700
Materials engineers
24,400
Petroleum engineers
21,900
Nuclear engineers
16,900
Biomedical engineers
16,000
Marine engineers and naval architects
8,500
Mining and geological engineers, including mining safety engineers
7,100
Agricultural engineers
2,700
Engineers, all other
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
183,200
Avg. starting salary offers for BSc
graduates in IE
(source:US Department of Labour, 2008)
Petroleum
$83,121
Chemical
64,902
Mining and Mineral
64,404
Computer
61,738
Nuclear
61,610
Electrical/electronics and communications
60,125
Mechanical
58,766
Industrial/manufacturing
58,358
Materials
57,349
Aerospace/aeronautical/astronautical
56,311
Agricultural
54,352
Bioengineering and biomedical
54,158
Civil
52,048
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Predicted employment growth of
industrial engineers (source:US Department of Labour, 2008)
Occupational Title
Employment, 2008
Engineers
Projected
Employment, 2018
Change,
2008-18
Number
Percent
1,571,900
1,750,300
178,300
11
Aerospace engineers
71,600
79,100
7,400
10
Agricultural engineers
2,700
3,000
300
12
Biomedical engineers
16,000
27,600
11,600
72
Chemical engineers
31,700
31,000
-600
-2
278,400
345,900
67,600
24
74,700
77,500
2,800
4
Electrical and electronics engineers
301,500
304,600
3,100
1
Electrical engineers
157,800
160,500
2,700
2
Electronics engineers, except computer
143,700
144,100
400
0
54,300
70,900
16,600
31
240,400
273,700
33,200
14
25,700
28,300
2,600
10
214,800
245,300
30,600
14
8,500
9,000
500
6
24,400
26,600
2,300
9
238,700
253,100
14,400
6
7,100
8,200
1,100
15
16,900
18,800
1,900
11
21,900
25,900
4,000
18
183,200
195,400
12,200
7
Civil engineers
Computer hardware engineers
Environmental engineers
Industrial engineers, including health & safety engineers
Health & safety engineers, except mining safety engineers
Industrial engineers
Marine engineers and naval architects
Materials engineers
Mechanical engineers
Mining and geological eng., including mining safety engineers
Nuclear engineers
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Petroleum engineers Faculty of Mechanical Engineering
- Division of IE&M All other engineers
Conclusion on the future of the
industrial engineers



The demand for this profile will grow (at
least in the near future) due to the urging
need of the enterprises to optimize their
functioning through reduction of costs,
increased productivity, etc.
This profile will become more complex additional methods will be encompassed in IE
Vocational training and LLL approach will
become more important
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Something extra
This conclusion will focus on possible activities
of AIM
 To establish a new journal on IE
http://www.mesj.ukim.edu.mk

To work on defining a core competences that
should be delivered by every EU University
that gives education in IE
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -
Thank you for your attention
Prof. Robert Minovski
Head of the Institute of Production Engineering and Management,
Faculty of Mechanical Engineering,
University of Ss. Cyril and Methodius – Skopje
robert.minovski@mf.edu.mk
University “Ss. Cyril and Methodius” – Skopje, R. Macedonia
Faculty of Mechanical Engineering
- Division of IE&M -