Introduction to Industrial Engineering
Chen Zhou (Pronounced Jo)
Associate Prof and Chair, Undergraduate Programs
404.894.2326
czhou@isye.gatech.edu
1
What is industrial engineering?
 A commercial reminded me a practical definition
We do not make a lot of products or services you
use, we engineer industries more efficient for
better and cheaper products, faster responses,
easier and more sustainable operations, etc.
2
Definitions of Industry - Webster
 1. Diligence in an employment or pursuit; especially: steady
or habitual effort
 2.
 systematic labor especially for some useful purpose or the
creation of something of value
 a department or branch of a craft, art, business, or
manufacture; especially: one that employs a large
personnel and capital especially in manufacturing
 a distinct group of productive or profit-making enterprises
 manufacturing activity as a whole <the nation's industry>
 3: work devoted to the study of a particular subject or author
<the Shakespeare industry>
3
- Definition by ISyE
 Industrial Engineering is a branch that describes,
evaluates, designs, modifies, controls and improves
the performance of complex systems over time and
in their context of
Supply chain systems
Manufacturing systems
Service systems
Financial and economic systems
Health systems
Etc.
4
- Definition by IIE
 IEs work in a variety of businesses
 IE education offers the best of both worlds: engineering &
business (product, service, people and organization)
 Shortening customer waiting in theme parks
 streamlining an operating room
 distributing products worldwide
…
 As companies adopt continuous productivity and quality
improvement, the need for industrial engineers is growing
 They work to eliminate waste of time, money, materials,
energy, and other commodities
5
Info from College Board





Career
 Develop efficient system to deliver products or services.
You should
 Find and solve problems
 Know statistics, computers, stochastic process and optimization
 Write reports, give presentations and communicate with others
It Helps to Be...
 An organizer, a puzzle solver, and someone who loves order
 IEs need to listen, explain, and teach
Outlook
 Economists predict IEs will grows faster than other occupations through 2016.
 More openings because IEs tend to become managers.
Compensation
 Starting GT IE is $58,000, May 2008
 Those graduated between 3 and 6 years are $69,886
 The U.S. Bureau of Labor Statistics estimates: average in 2007 as $73,490
6
Spare Parts Supply chain example
7
Location/allocation optimization model
w
Max
j
yizjl
izjl
s.t. FLi ci   FS jk sijk   VSij yizjl  B
i
ijk
y
  CAPjk sijk
izjl
zl
izjl
i, j
k
0  yizjl  d izjl
i, z , j , l
y
z , j , m
l  m ,i
s
izjl
ijk
 Pm nzj
 ci
i, j
k
ci , sijk  {0,1}
8
Manufacturing example
9
Schematic model of production line
Inbound
Queue (1)
Raw
Materials
Outbound
Queue (1)
1
2
3
Finished
Goods
Inbound
Queue (2)
Operation
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Markov chain model of production line
Rate Diagram for M/M/3

1
0



2
2


3
3
…
4
3
3
P0 
1
s 1

n 0
(  /  )n
n!
where

(  /  )s
s!
( 11/ s )
   n
  
 
 n!
 n 1 n 2 ... 0 
Cn 

 n  n 1...1

n



 
  ns
 s! s
and
Pn = CnP0
n  1, 2, ..., s
n  s  1, s  2, ...
11
Health system eg: Malaria Eradication
 Malaria
Transmitted by female Anopheles mosquitoes
No vaccine available
 Effects
1-3 million deaths annually worldwide
• One death every 30 seconds
48,000 deaths in Sudan each year
Prevalence continues to increase
12
This document was created within the frame work of a student design project and its contents are neither sanctioned by Georgia Institute of Technology nor the CDC.
Method and outcomes
 Sterile Insect Technique (SIT)
 Female mosquitoes mate once in lifetime
 Release large numbers of sterile male insects
 Desired Outcome
 Long term solution for malaria suppression
 No environmental or health side-effects
 At minimum cost
13
This document was created within the frame work of a student design project and its contents are neither sanctioned by Georgia Institute of Technology nor the CDC.
One possible solution
 Production strategy
Separate males at larva stage
Sterilize males at pupa stage
Release at pupa stage
Adult
Broodstock
Eggs
Larva
Separate
Sexes
Pupa
Pupa
Sterilization
and Release
Sterile Adult
Males in Wild
14
This document was created within the frame work of a student design project and its contents are neither sanctioned by Georgia Institute of Technology nor the CDC.
Cost of optimized plan
Total Cost for Duration of Program
$585,827
Production Facility and Equipment
$521,850
Monthly Production Cost
$4,435
Monthly Distribution Cost
$487
15
This document was created within the frame work of a student design project and its contents are neither sanctioned by Georgia Institute of Technology nor the CDC.
Simulation of population decrease
16
Simulation of population decrease
17
Simulation of population decrease
18
Simulation of population decrease
19
Simulation of population decrease
20
Simulation of population decrease
21
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10/12/05 7:00 PM EDT
Koss/Qwestar Mobile
Audio/Video Package
At This Time
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Price Will Be
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$596.77
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$545.65
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$494.54
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CLOSE
Pricing in Economic systems example
22
Simple game example
Player 2
A1
A2
A1
4,4
-3,6
Player 1 A2
7,-4
-2,-2
Result?
23
Result
Player 2
A1
A2
A1
4,4
-3,6
Player 1 A2
7,-4
-2,-2
Although both parties would be made better off by choosing
(A1,A1), this won’t happen!
24
IE Curriculum Summary
 IE focuses on mathematical modeling and analysis of
management decisions
 IE incorporates engineering fundamentals so that the
graduates can communicate with other engineers
 IEs learn tools and methods that can be used in wide variety
of domains
 IE at GT has flexible curriculum
 Tracks
 3 free electives
 (6) IE electives
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The school: Facts
 Established in 1924
 Largest IE program
 About 1000 students
 Graduate ~250/year
 Nearly 10% of all IEs graduated in US
 Over 50 faculty members
 Over 12,000 alumni
 Ranked #1 by US News and World Report for past 18 years
 Nearly one in ten ISyE graduates rise to CEO, CFO, in their
respective organizations
26
Our students
 ~ 40% are women
 About a third of our graduates take their first position
with one of the major consulting firms
 >90% of courses are offered by full-time faculty
 Distinguished faculty
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ISyE Curriculum
Senior Design
Quality
OR/
Stat
General
Comm.
Optimization
Mfg
Statistics
Log
Stochastic
EDA
Computing
Engineering
Economics
Mathematics
Language
Sciences
28
Who hires our students








Consulting (e.g., Accenture, Boston Consulting,)
Logistics (e.g., UPS, Schneider)
Manufacturing (e.g., Intel, GE, Kraft)
Retail (e.g., Home Depot, Wal-Mart)
IT (e.g., JDA, Manhattan Assoc.)
Health (e.g., McKesson, hospitals)
Financial (Bank of America, Capital One)
Graduate Schools
29
Starting salaries
Number of Offers
Mean
Job
Placement
Major
Offers
Rate
Aerospace Engineering 1.8
62.50%
Biomedical Engineering 1.2
37%
Chemical & Biochemical2.1
Engineering
68.40%
Civil Engineering
2.5
75.60%
Computer Engineering
2
81.30%
Electrical Engineering 2.56
79.20%
Industrial Engineering 2.56
71.10%
Materials Science & Engineering
6
50%
Mechanical Engineering2.89
79.40%
Nuclear & Radiological Engineering
2
80%
3.2
100%
Polymer & Fiber Engineering
2.46
71.50%
COE
2008 Commencement Survey (Spring)
Salary Offer
Total
Number
Seeking
Reporting Employme
Salary
nt
Median
High
18
40
$54,736.50
$78,000.00
8
27
$55,000.00
$65,000.00
12
19
$65,500.00
$71,000.00
28
41
$50,000.00
$70,000.00
12
16
$59,000.00
$69,000.00
36
48
$58,661.00 $100,000.00
48
76
$58,000.00
$75,000.00
2
6
$45,000.00
$60,000.00
45
68
$57,000.00
$78,000.00
4
5
$55,000.00
$64,000.00
8
9
$60,000.00
$62,000.00
221
355
$58,000.00
Low
$30,000.00
$25,000.00
$58,000.00
$43,000.00
$31,000.00
$22,000.00
$33,000.00
$30,000.00
$22,000.00
$52,140.00
$56,000.00
30
What do they do after 3 – 6 years
2007 Alumni Job Functions
4 - Professional/ Technical/ Research Personnel
6 - Consultant
9 - Other
2 - Functional Management/ Department Head
1 - Corporate Official/ General Management
5 - Sales/ marketing
3 - Supervisor of Professional/ Technical/ Research
Personnel
8 - Faculty, Instructor, or Teacher
7 - Graduate Student
0
10
20
30
40
50
60
70
31
80
Labs
 Laboratory in Industrial Engineering
Virtual view
Real views
32
Different strategies: MTS, MTO, ATO,
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Timing is everything
34
Airport security system design
35
Best way to learn IE




Classroom: theories, models, analysis, solutions
Group projects:
Interns and Co-ops
Study abroad
36
Professional practice
 Interns
 Flexible
 Co-op
 Significant, progressive
experience
Study
Work
Study
Study
Work
Work
37
International programs




Culture, geopolitical systems, society, people
Expanded system view
Reduced cost for out of state students
Programs
 Faculty lead study abroad programs
 Exchange programs
 Semester programs
 LBAT (language for business and technology)
 International Plan (IP)
 26 week experience, language, relevant intl courses
38
Faculty lead programs
 Beijing/Singapore: 3+ IE junior courses
 Lorraine: sophomore/junior: 2 sophomore/junior IE
courses
 Oxford: flexible
 Language LBAT
 Many others
Shanghai
Italy
LBAT
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Exchange/semester




Monterrey Tec. Mexico, TUC
TU Munich
HKUST
NUS
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Opportunities
 Co-op/Intern
 Now 3 semesters work minimum
 Study Abroad
 Many opportunities: GTL, Beijing/Singapore, Oxford, …
 International Plan
 On diploma and transcript
 Foreign Language Track
 English Language Track
 GT1000
 Certificate Program/Minor
 Institute of Industrial Engineers
41
Questions?
42