September 20, 2019

Operations Research - An Efficiency Improvement Tool for Industrial Engineers

In the IE journals and magazines we need to read articles and papers that point out how IEs are able to come out with solutions to data development challenges of OR models.

Operations Research methods are characterized as efficiency improvement techniques by many scholars.

1. From efficiency measurement to efficiency improvement: The choice of a relevant benchmark, Eduardo González, and Antonio Álvarez, European Journal of Operational Research, Volume 133, Issue 3, 16 September 2001, Pages 512-520

2. Measuring Efficiency in Primary Health Care Centres in Saudi Arabia, ASMA M. A. BAHURMOZ,

3. Improving Transportation Efficiency at the Nanzan Educational Complexeral Motors

4. Operations Research: The Productivity Engine: How to create unassailable productivity gains in your business, Lew Pringle, OR/MS Today, June 2000

Lew Pringle wrote:

"Operations research, as a field, is all about the creation and management of Productivity Gain. In fact, in a very real sense, productivity gain is virtually the sole purpose of OR. It's what we do. To raise the question of improvement in an organization's productivity without taking full advantage of all that OR offers would be analogous to pursuing a required improvement in one's health while ignoring the entire medical community. The realm of operations research is Productivity Gain.

OR people, in turn, are identifiable by: 1. our focus on productivity, and 2. the way we find, identify and come to describe, understand, appreciate and represent a problem. Operations research people are problem-conceptualizers. Our "solutions," in this sense, can (and should) be seen as flowing naturally and easily from the unique way in which we have visualized the problems/opportunities in the first place. We operate on such traditional quantities as profit, cost, efficiency and other practical, measurable items. Our goal, ordinarily, is to achieve higher and higher levels of performance. We are the people whose job it is to create productivity. We are, in fact, the productivity engine of an organization."

5. Productivity Improvement through Operational Research
G. W. Sears
Journal of the Royal Statistical Society. Series A (General) Vol. 126, No. 2 (1963), pp. 267-269

6. The Necessity of Implementation of Operations Research for Managers for Decision-Making and Productivity Increase in Production
M. K. Amoli, S. M. T. Hosseini, M. Salehi, "The Necessity of Implementation of Operations Research for Managers for Decision-Making and Productivity Increase in Production", Advanced Materials Research, Vols. 488-489, pp. 1651-1656, 2012


Synergy Between Industrial Engineering and Operations Research

Industrial engineering is developed by engineers working in engineering departments of business companies engaged in manufacture using machines and metals. No doubt construction which is the earliest engineering activity also contributed in the development of industrial engineering as Frank Gilbreth was from construction sector. Operations Research as a discipline is identified with persons from science background working in the area of military operations. Industrial engineering and Departments of Mathematics and Statistics embraced the discipline of operations research in a big way. What is the synergy between industrial engineering and operations research?

Industrial engineering is system efficiency improvement. It examines proposed ways of doing work and improve them. Operations research has number of efficiency improvement tools. Operations researchers developed various standard models and have the ability to develop custom models that improve the efficiency of operations. Linear programming models, transportation, and assignment can be cited as examples using which the operations of an organization can be evaluated for efficiency of resource use subject to the constraints and optimal or efficient solutions can be found. Hence industrial engineers have to be the first group among various corporate organizations to recognize and implement OR models in the business organizations. This opportunity was correctly identified by the industrial engineering profession and OR was adopted as an important technique in the arsenal of industrial engineering.

What is the Contribution of IE to OR?

Industrial engineers could have promoted the practical utilization of OR by proving data in the form the OR models require. In systems engineering, there is mention of this step. From the synthesized design for a system design problem, various models are to be developed to evaluate the proposed design. To use OR models, various types of data are required and industrial engineers have the advantage of developing the required data. Why IEs have the advantage? Industrial engineers have the advantage because they have a strong attachment to measurement in one of their core subjects work measurement. Industrial engineers also are given inputs in understanding the financial and cost accounting data. Thus they are in the unique position to develop and provide the data that OR models required and come out the most efficient solutions and help the operating managers in implementing the solutions. But this does not seem to have happened in big scale.

The reason for the lack of popularity for OR in many organizations is the lack of this viewpoint in IEs. IEs have to use OR models as efficiency improvement avenues. To use OR models they have to develop the required data from the operations of the organization. They have to interact with the accounting departments meaningfully and acquire the required accounting data and statements. They have to develop engineering data and then use appropriate OR models. In the IE journals and magazines we need to read articles and papers that point out how IEs are able to come out with solutions to data development challenges of OR models.

Engineering Optimization

In engineering design as well as in process planning, optimization is now used. Industrial engineers have to optimize their engineering redesigns and also check whether the current engineering solutions are optimized or not? Thus the industrial engineering optimization focus area is concerned with optimization problems of product design and process design. Industrial engineering is also concerned with planning of jobs and flow of material quantities in processes.


Problem Areas for Applying Operations Research

Loading machine centers for maximum utilization of equipment.
Controlling raw materials nd in-process inventories.
Planning the minimum production costs schedules through the sequencing and allocation of men and machines.
Minimizing waiting times between opeartions
Determining the true incremental benefits of adding new production equipment.
Scheduling direct labour.
Determining the most favourable preventive maintenance plans.
Assigning individuals to specific jobs
Specifying least-cost shipment patterns in multiplant multivendor purchasing situations.
Locating warehouses so as to minimize freight and production costs.
Allocating advertising budget in the most efficient manner.

"Opeartions Research", Chaper 9-3 in Industrial Engineering Handbook, H.B.Maynard (Ed.) 2nd Edition


OR Case Studies Discussed in Chapter 11.2 of Maynard's Industrial Engineering Handbook, 5th Edition


Leachman, R. C., R. F. Benson, C. Liu and D. J. Raar, "IMPReSS: An Automated Production-Planning and Delivery-Quotation System at Harris Corporation - Semiconductor Sector," Interfaces, 26:1, pp. 6-37, 1996.
Rigby, B., L. S. Lasdon and A. D. Waren, "The Evolution of Texaco's Blending Systems: From OMEGA to StarBlend," Interfaces, 25:5, pp. 64-83, 1995.
Flanders, S. W. and W. J. Davis, "Scheduling a Flexible Manufacturing System with Tooling Constraints: An Actual Case Study," Interfaces, 25:2, pp. 42-54, 1995.
Subramanian, R., R. P. Scheff, Jr., J. D. Quillinan, D. S. Wiper and R. E. Marsten, "Coldstart: Fleet Assignment at Delta Air Lines,", Interfaces, 24:1, pp. 104-120, 1994.
Kotha, S. K., M. P. Barnum and D. A. Bowen, "KeyCorp Service Excellence Management System," Interfaces, 26:1, pp. 54-74, 1996.

Recent Case Study Papers

Energy Cost Optimization in a Water Supply System Case Study
Daniel F. Moreira and Helena M. Ramos
Journal of Energy
Volume 2013 (2013), Article ID 620698, 9 pages

Cost Minimizing Coal Logistics for Power Plants Considering Transportation Constraints
Ahmet Yucekaya
Industrial Engineering Department, Kadir Has University, istanbul, Turkey
Journal of Traffic and Logistics Engineering, Vol, 1, No. 2 June 2013

Related Knols

Knol Handbook of Industrial Engineering (Year 2010 Version)
By Narayana Rao K.V.S.S.



OR Models - Good brief description of Linear programming, Network Flow Programming, Integer programming, Nonlinear programming, Dynamic programming, Stochastic programming and Simulation etc.

The Periodic Vehicle Routing Problem: A Case Study

A Review of Integrated Analysis of Production-Distribution Systems, 1995

Optimization of Container Process at Multimodal Container Terminals, Phd Thesis, 2008, Andy Wong

Operations Research Models for Railway Rolling Stock Planning, Ph.d thesis, (2006), Gabor Maroti

IFORS 2002 Conference Proceedings - Abstracts only 285 page file


Recent papers about OR models and applications

The costs of poor data quality
Summary of Anders Haug, Frederik Zachariassen, Dennis van Liempd, "The costs of poor data quality", Journal of Industrial Engineering and Management, 2011 – 4(2): 168-193 – Online ISSN: 2013-0953 Print ISSN: 2013-8423

Updated 23 July 2013
Posted in the blog 14 December 2011
Article originally posted at

Industrial Engineering Knowledge Revision Plan - One Year Plan

January - February - March - April - May - June

July - August - September - October - November - December

Updated  21 September 2019,  27 August 2016,  15 July 2016, 13 July 2016,  23 July 2013

September 18, 2019

Industry 4.0: Managing The Digital Transformation - 2018 - Book Information - Alp Ustundag - Emre Cevikcan

Industry 4.0: Managing The Digital Transformation

Alp Ustundag, Emre Cevikcan
Springer, 2018 Technology & Engineering - 286 pages

There are trends that are transforming manufacturing industry to the next generation, namely Industry 4.0, which is based on the integration of information and communication technologies and industrial technology.

This book provides a comprehensive guide to Industry 4.0 applications, not only introducing implementation aspects but also proposing a conceptual framework with respect to the design principles. In addition, it discusses the effects of Industry 4.0, which are reflected in new business models and workforce transformation. The book then examines the key technological advances that form the pillars of Industry 4.0 and explores their potential technical and economic benefits using examples of real-world applications. The changing dynamics of global production, such as more complex and automated processes, high-level competitiveness and emerging technologies, have paved the way for a new generation of goods, products and services. Moreover, manufacturers are increasingly realizing the value of the data that their processes and products generate. 

The book provides a conceptual framework and roadmap for decision-makers for this transformation

Table of contents (16 chapters)
A Conceptual Framework for Industry 4.0

Pages 3-23
Salkin, Ceren (et al.)

Smart and Connected Product Business Models

Pages 25-41
Cevik Onar, Sezi (et al.)

Lean Production Systems for Industry 4.0

Pages 43-59
Satoglu, Sule (et al.)

Maturity and Readiness Model for Industry 4.0 Strategy

Pages 61-94
Akdil, Kartal Yagiz (et al.)

Technology Roadmap for Industry 4.0

Pages 95-103
Sarvari, Peiman Alipour (et al.)

Project Portfolio Selection for the Digital Transformation Era

Pages 105-121
Isikli, Erkan (et al.)

Talent Development for Industry 4.0

Pages 123-136
Karacay, Gaye

The Changing Role of Engineering Education in Industry 4.0 Era

Pages 137-151
Cevik Onar, Sezi (et al.)

Data Analytics in Manufacturing

Pages 155-172
Sami Sivri, M. (et al.)

Internet of Things and New Value Proposition

Pages 173-185
Karacay, Gaye (et al.)

Advances in Robotics in the Era of Industry 4.0

Pages 187-200
Bayram, Barış (et al.)

The Role of Augmented Reality in the Age of Industry 4.0

Pages 201-215
Esengün, Mustafa (et al.)

Additive Manufacturing Technologies and Applications

Pages 217-234
Beyca, Omer Faruk (et al.)

Advances in Virtual Factory Research and Applications

Pages 235-249
Bal, Alperen (et al.)

Digital Traceability Through Production Value Chain

Pages 251-265
Budak, Aysenur (et al.)

Overview of Cyber Security in the Industry 4.0 Era

Pages 267-284
Ervural, Beyzanur Cayir (et al.)

Related Conatent

The smart factory

Responsive, adaptive, connected manufacturing
31 August 2017
Rick Burke, Adam Mussomeli, Stephen Laaper
Deloitte Insights

September 17, 2019

Maintenance Management Strategies

Selection of Correct Equipment Maintenance Management Strategy Selection.
It makes a  Difference

Maintenance is a risk management practice used to maximise production and minimise loss and waste. 

Selecting a successful maintenance strategy requires a good knowledge of equipment failure behaviour and maintenance management practices. First you have to know e why equipment fails, how equipment fails and when equipment fails. Then you require knowledge of  maintenance management practices to select the right mix of maintenance strategies to extend and maximise its service and performance.

"To master a thing you must know it thoroughly.  When you speak to experts it is clear that they are intimate and absorbed with their speciality.  When you understand a thing fully, when you know how it will behave under all circumstances, when you introduce a change and know its impact and effect, then you have mastery over the thing."

Maintenance strategy can be mastered.  Strategic maintenance decision making involves selecting the right care and repair methodologies that maximise equipment life and performance for the least cost to the user.  The first step in successful maintenance management strategy choice, is knowledge of  equipment failure mode and process or event.  When you know the equipment’s weaknesses and strengths you can care for it properly and get maximum service from it at least cost.

Good article:
Mike Sondalini, Managing Director, Lifetime Reliability Solutions HQ

Interesting article/book chapter
Profit Contribution Mapping
Mike Sondalini

For More reading

Youthful Organization

Maintaining Youth of the Organization and Preventing Old Age

“Like people and plants, organizations have a life cycle. They have a green and supple youth, a time of flourishing strength, and a gnarled old age. But organizations differ from people and plants in that their cycle isn't even approximately predictable.  An organization may go from youth to old age in two or three decades, or it may last for centuries."  John W. Gardner in 1965 October Issue of  Harper's.

So keeping an  organization youthful is a top management challenge.

Comparing an organization to an animal in biological terms is useful. But as we see now-a-days, the average productive age of humans has increased and some individuals are running marathon at age 71 at almost with the same time that they recorded at the age of 21, organization can maintain their strength and energy for many many years. There are certain organizations who completed 100 years of their existence and still going strong. Of course there are many examples of company closures and mergers who far outnumber the 100 year old organizations. That is why maintaining a youthful organization that can research the market, develop new products, produce them, sell them and service them with the same vigor as it was doing in its earlier years.

Actively hiring young employees periodically is way for maintaining the youthful organization. The company must be ready to train young people for front line operating jobs, supervisory positions and manager level positions.

One example is,  Starbucks  engaging its supply chain in partnership with LeadersUp, a new workforce intermediary, to increase the hiring of  youth. LeadersUp  offers multiple services: identifying barriers to youth employment across the supply chain, designing employer-led interventions (training, on-the-job mentoring, and organization redesign to create career pathways for opportunity youth), and measuring the return on investment of youth hiring activities.

Crises in a Developing Organization
by Gordon L. LippittWarren H. Schmidt
Harvard Business Review, NOVEMBER 1967

Life Cycle Models of the Organization

The Greiner Model - Larry E. Greiner

Cameron and Whetton Model

Ainsworth - Land Model

Noel Tichy's Model

Source: Designing Effective Organizations: Traditional and Transformational Views
David K. Banner, T. Elaine Gagné
SAGE, 1995 - Business & Economics - 480 pages

This book on organization theory adopts a distinctive stance. In contrast to the traditional rational approach, it develops a transformational perspective which focuses on the organizational world as a projection of each organizational member's consciousness. While covering all the basic topics of organization theory, the author's approach reflects today's changing management paradigms.

The Effective Organization: Forces and Forms

Magazine: Winter 1991 January 15, 1991
Henry Mintzberg

This article builds a framework and proposes that the effective organization has to solve a jigsaw puzzle with LEGO pieces. The organizations experience forces and it has to redesign itself to survive and prosper under the action of these forces. It is a powerful framework by which to diagnose and deal with the problems organizations face according to the author..

First is the force for direction
Next is the force for efficiency,
Across from the force for efficiency is that for proficiency
Below efficiency is the force for concentration
At the bottom right is the force for innovation
Finally, two forces called catalytic: cooperation and competition.

Forms or Configurations

The entrepreneurial form - direction
The machine form - efficiency,
The professional form - proficiency
The adbocracy form -  concentration
The diversified form - innovation
Ideological and the political forms

Experience shows that the dominant force sometimes dominates to the point of undermining all the others. For example, the quest for efficiency in a machine organization can almost totally suppress the capacity for innovation, while in an adhocracy the need for some modicum of efficiency often gets suppressed. This phenomenon is termed contamination

Each configuration is capable of driving itself out of control. That is to say, each contains the seeds of its own destruction.

Truly effective organizations do not exist in pure form. What keeps a configuration effective is not only the dominance of a single force but also the constraining effects of other forces. This is termed containment.

Combination is a mixture of pureforms.

The authors said in a sample of 123 companies, in just over half the cases—sixty-six, the students felt that a single form fitted best. Twenty-five entrepreneurial, thirteen machine, eleven diversified, nine adhocracy, and eight professional organizations were observed. The rest were termed  combinations—seventeen different ones in all. Diversified machines were the most common (nine), followed by innovative professionals (eight), entrepreneurial professionals (six), and entrepreneurial machines (five).7

Top Management Challenges

This article is part of #AtoZChallenge 2017 for Blogging Posts. My Theme for the Challenge is Top Management Challenges - Full List of Articles

To Know More About A to Z Blogging Challenge

September 15, 2019

Principles of Management – Koontz and O’Donnell

April 2017

By studying and writing on Principles of Management, I became the original author of Principles of Industrial Engineering, a Management Subject with foundation in engineering.

Basic and Detailed Principles of Industrial Engineering


Principles of Management Revision Article Series

Planning, Organizing, Staffing, Leading and Controlling - Functions of Management.
Harold Koontz and Cyril O’Donnell, in their book, Principles of Management: An Analysis of Managerial Functions, clearly described the principles to be used in performing various functions of management.

Harold Koontz and Cyril O’Donnell, in their book,  Principles of Management: An Analysis of Managerial Functions, clearly described the principles to be used in performing various functions of management.

Managers have to set in a procedure to revise these principles periodically so that they can recollect the relevant principles when performing the managerial tasks and explicitly consider the relevance and application of these principles in their practice.

Many of us use them implicitly. But a professionally educated and trained manager must use them explicitly. He has to ensure that these principles are applied and if any exceptional situation is there, managers should ignore the principles consciously and be clear in their mind they chose not to use them due to the exceptional nature of the situation.


The need for Principles of Management

To Increase Efficiency
To Crystallize the Nature of Management
To Improve Research
To Attain Social Goals

Video - Principles of Management - Koontz and O'Donnell - Quick Review



Principles of Planning

Related to Purpose and nature

Principle of contribution to objectives
          Every plan has to contribute positively toward the accomplishment of enterprise objectives.

Principle of efficiency of plans
          Efficiency is measured by the contribution of the plan to objectives of the enterprise minus the costs and unsought for consequences in formulating and implementing the plan.

Principle of primacy of planning
          Planning is the primary prerequisite for all other functions of management. Every action of the manager follows a planning step.

Principles Applicable to Structure of plans

Principle of planning premises
          If more people in an organization use common and consistent planning premises, the enterprise planning will be more coordinated.

Principle of policy framework
          If more policies, appropriate to the organization, are expressed in clear terms and form and if managers understand them, the plans of the enterprise will be more consistent.

Principle of timing
          If plans are structured to provide a network of derivatives plans in sequence, there will be more effectiveness in attainment of enterprise objectives.

Principles Applicable to Process of Planning

Principle of alternatives
          Select the plan which is the most effective and the most efficient to the attainment of a desired goal.

Principle of limiting factor
          Consider limiting factor in generating alternatives and selection from alternatives.

The commitment Principle
          Planning can cover a period over which commitment of resources can be clearly visualized.

The flexibility Principle
          Building flexibility in planning is beneficial, but cost of building flexibility needs to be evaluated against the benefits.

The Principle of navigational change
          Manager needs to periodically check events of the plan and redraw plans to maintain the move toward a desired goal.

Principle of competitive strategies
          In a competitive arena, it is important to choose plans in the light of what competitor will or will not do and navigate based on what competitors are doing or not doing.

Principles of Organizing

Principles in Relation to Purpose

Principle of unity of objectives
          An organization structure is effective if it as a whole, and every part of it, make possible accomplishment of individuals in contributing toward the attainment of enterprise objectives.

Principle of efficiency
          An organization or organization structure is efficient if it is structured to make possible accomplishment of enterprise objectives by people with minimum unsought consequences or costs.

Principles  Related to the Cause of Organizing

Span of management Principle
          There is a limit at each managerial position on the number of persons an individual can effectively manage. But this number is not a fixed number and it will vary in accordance with underlying variables of the situation.

Principles in Developing the Structure of Organization

The scalar Principle

          The more clear the line of authority from the ultimate authority for management in an enterprise (CEO)  to every subordinate position, the more effective will be decision making and organization communication at various levels in the organization.

Principle of delegation

          Authority is a tool for managing to contribute to enterprise objectives. Hence authority delegated to an individual manager should be adequate to assure his ability to accomplish results expected of him.

Principle of responsibility

          The responsibility of the subordinate to his superior for authority received by delegation is absolute, and no superior can escape responsibility for the activities of his subordinate to whom he in turn has delegated authority.

Principle of parity of authority and responsibility
The responsibility exacted for actions taken under authority delegated cannot be greater than that implied by the authority delegated, nor should it be less.

Principle of unity of command
          The more completely an individual has a reporting relationship to a single superior, the less the problem of conflict in instructions and the greater the feeling of personal responsibility.
The authority level Principle
          Maintenance of authority delegation requires that decisions within the authority competence of an individual manager be made by him and not be referred upward in the organization.

Principles in Departmentizing Activities

Principle of division of work

        The better an organization structure reflects a classification of the tasks and activities required for achievement of objectives and assists their coordination through creating a system of interrelated roles; and the more these roles are designed to fit the capabilities and motivations of people available to fill them, the more effective and efficient an organization structure will be.

Principle of functional definition

        The more a position or a department has clear definition of results expected, activities to be undertaken, organization authority delegated, and authority and informational relationships with other positions, the more adequately individual responsible can contribute toward accomplishing enterprise objectives.

Principle of separation

        If an activity is designed to be a check on the activities of another department, the individual charged with such activity cannot adequately discharge his responsibility if he reports to the department who activity he is expected to evaluate.

Principles in the Process of organizing

Principle of balance

    the application of principles or techniques must be balanced in the light of the over-all effectiveness of the structure in meeting enterprise objectives.

Principle of flexibility
    The task of managers is to provide for attaining objectives in the face of changing environments. The more provisions are made for building organization flexibility, the more adequately organization structure can fulfill its purpose.

Principle of leadership facilitation
    The more an organization structure an authority delegations within it make possible for various managers to design and maintain an environment for performance, the more it will facilitate leadership abilities of managers.

Staffing Principles

Related to the Purpose of Staffing

Principle of staffing objectives


    The positions provided by the organization structure must be staffed with personnel able and willing to carry out the assigned functions.

Principle of staffing

    The quality of management personnel can be ensured through proper definition of the job and its appraisal in terms of human requirements, evaluation of candidates and incumbents, and appropriate training.

The process of staffing

Principle of job definition

    Specifications for the job rest on organization requirements and on provision for incentives to induce effective and efficient performance of the tasks involved.

Principle of managerial appraisal

    Performance must be appraised against the management action required by superiors and against the standard of adherence in practice to managerial principles.

Principle of open competition in promotion

    Managers should be selected from among the best available candidates for the job, whether they are inside or outside the enterprise.

Principle of management development
    The objective of management development is to strengthen existing managers. The most effective means of developing managers is to have the task performed primarily by a manager's superior.

Principle of universal development
    The enterprise can tolerate only those managers who are interested in their continuous development.

Principles of Directing

Related to the Purpose of Directing

Principle of harmony of objectives
    Effective directing depends on the extent to which individual objectives in cooperative activity are harmonized with group objectives.

Principles  Applicable to Process of directing

Principle of unity of command
    The more completely an individual has a reporting relationship to a single superior, the less the problem of conflict in instructions and the greater the feeling of personal responsibility for results.

Principle of direct supervision
    Effective direction requires that management supplement objective methods of supervision with direct personal contact.

Principle of supervisory techniques
    Since people, tasks, and organizational environment vary, techniques of supervision will be most effective if appropriately varied.

Principles of Delegation

Principle of functional delegation
    The more a position or department has clear definitions of results expected, activities to be undertaken, organization authority delegated, and authority and informational relationships with other positions, the more adequately individuals responsible can contribute toward accomplishing enterprise objectives.

Principle of delegation by results expected
    The authority delegated to an individual managers should be adequate to assure his ability to accomplish the results expected of him.

Principle of absoluteness of responsibility
    No superior can escape, through delegation, responsibility for the activities of subordinates, for it is he who delegated authority and assigned duties.

Principle of parity of authority and responsibility
    The authority delegated has to be consistent with the responsibility assigned to a subordinate.

Principles of Control

Related to the purpose of control

Principle of assurance of objective
    The task of control is to assure accomplishment of objectives by detecting potential or actual deviation from plans early enough to permit effective corrective action.

Principle of efficiency of controls
    The more control approaches and techniques detect and illuminate the causes of potential or actual deviations from plans with the minimum of costs or other unsought consequences, the more efficient these controls will be.

Principle of control responsibility
    The primary responsibility for the exercise of control rests in the manager charged with the execution of plans.

Principle of direct control
    The higher the quality of managers and their subordinates, the less will be the need for indirect controls.
(The principle may termed as principle of reduced controls. A superior can spend less time in control activities if he has more higher quality managers and their subordinates in his department.)

Principles related to Structure of control

Principle of reflection of plans
    The more controls are designed to deal with and reflect the specific nature and structure of plans, the more effective they will serve the interests of the enterprises and its managers.

Principle of organizational suitability
The more controls are designed to reflect the place in the organization structure where responsibility for action lies, the more they will facilitate correction of deviation of events from plans.

Principle of individuality of controls
    Controls have to be consistent with the position, operational responsibility, competence, and needs of the individuals who have to interpret the control measures and exercise control. 

Process of control

Principle of standards
    Effective control requires objective, accurate, and suitable controls.

Principle of critical-point control
    Effective control requires attention to those factors critical to appraising performance against an individual plan.

The exception Principle
    The more a manager concentrates his control on exceptions, the more efficient will be the results of this control.

Principle of flexibility of controls
    If controls are to remain effective despite failure or unforeseen changes in plans, flexibility is required in the design of controls.

Principle of action
Principle of Action
    Control is justified only if indicated or experienced deviations from plans are corrected through appropriate planning, organizing, staffing and directing.


Harold Koontz and Cyril O’Donnell, Principles of Management: An Analysis of Managerial Functions,  4th Ed., McGraw-Hill, New York, 1968

Harold Koontz and Cyril O’Donnell, Principles of Management: An Analysis of Managerial Functions, 2nd  Ed., McGraw-Hill, New York, 1959


Material Organization and Resourcing

Fayol included both material organization and people organization in organizing function. But he developed in his book only people organization. Koontz also elaborated people organization only. There is need for principles of material organization and also as a follow up principles of resourcing.

Principles of Material Organization

Resourcing - A Function of Management

Lean Leadership Principles  -  Lean Management according to Narayana Rao K.V.S.S. -
Lean management gives importance to both effectiveness and efficiency. Lean Managers simultaneously take care of customer satisfaction and productivity/ cost reduction responsibilities. Hence in a theoretical sense, no new principles are required. Koontz and O'Donnell stressed efficiency in number of principles.

Principle of efficiency of plans
          Efficiency is measured by the contribution of the plan to objectives of the enterprise minus the costs and unsought for consequences in formulating and implementing the plan.

Principle of efficiency of organization

          An organization or organization structure is efficient if it is structured to make possible accomplishment of enterprise objectives by people with minimum unsought consequences or costs.

Principle of efficiency of controls
    The more control approaches and techniques detect and illuminate the causes of potential or actual deviations from plans with the minimum of costs or other unsought consequences, the more efficient these controls will be.

But still in management practice, efficiency was neglected by managers in trying to achieve sales, markets share or higher production quantity or meeting deadlines. Toyota became a glorious example of a company which has given efficiency due importance in management. It involved line managers in efficiency improvement through process improvement for cost reduction and it has taken the necessary staff help as recommended by F.W. Taylor and Harrington Emerson at their time. Hence, lean leadership principles are necessary now to explicitly state some more principles that force managers to focus on efficiency issues also adequately.

14 Principles of Management - Henri Fayol
Principles of Management - Revision Articles - Based on Koontz and O'Donnells Book updated by Weirich and Kannice

Updated  2018 - 25 January,
8 April 2017,  12 March 2015 7.3.2014, 25.12.2013
Last updated 12.12.2011 (First posted to the blog from Knol)

Revision of chapters of principles of management is in January Revision Plan



September - Management Knowledge Revision

September (HRM, Mentoring, Training, Maintenance, Energy & Environment Management)

HRM Revision

First Week  1 to 5

Strategic Human Resource Management in a Changing Environment
The Role of Globalization in HR Policy and Practice - Review notes

The Legal Environment of HRM: Equal Employment Opportunity - Review Notes
Work Analysis and Design - Review Notes

Human Resource Planning and Recruitment - Review Notes
Personnel Selection - Review Notes

Performance Management and Appraisal - Review Notes
Training and Development - Review Notes

Career Development - Review Notes
Compensation: Base Pay and Fringe Benefits - Review Notes

Second Week  8 to 12

Pay for Performance - Review Notes
Managing the Employment Relationship - Review Notes

Labor Relations and Collective Bargaining - Review Notes
Employee Health and Safety - Review Notes

22. Energy Management and Energy Industrial Engineering

23. Energy‐efficiency policy opportunities for electric motor‐driven systems
OECD-IEA Paper 2011

24. Environmental Protection : Challenges

25. Corporate Environmental Management Practices - OECD Survey

26. Sustainability Management - Bayer AG

To October - Management Knowledge Revision

Industrial Engineers support Engineers and Managers in Efficiency Improvement of Products, Processes and Systems

One Year MBA Knowledge Revision Plan

January  - February  - March  - April  - May   -   June

July  - August     - September  - October  - November  - December

Birthdays of Management Scholars in the Month

1 - Fredmund Malik (1944), Brian Halligan (1967)
2 - Henry Mintzberg (1939), David John Teece (1948)
3 - Mary Parker Follett (1868)
5 - Werner Erhard (1935)
9 - Kurt Lewin (1890)

10 - Ordway Tead (1891)
11 - Eric Trist (1909)
12 - Eiji Toyoda (1913), Richard Thaler (1945)
15 - A.D. Chandler (1918)
16 - Hurst R. Anderson (1904)
19 - Karl Ludwig von Bertalanffy (1901)

21 - Phil Town (1948)
26 - Dorian Shainin (1914), Sumantra Ghoshal (1948)
27 - Joan Woodward (1916), Oliver Eaton Williamson (1932)
28 - Thomas Anton Kochan (1947)
29 - Charles Hampden Turner (1934)
30 - Pankaj Ghemawat (1959)

Updated 12 September 2016

September 12, 2019

Operations and Supply Chain Management - New Books Information

Operations, Logistics and Supply Chain Management

Henk Zijm, Matthias Klumpp, Alberto Regattieri, Sunderesh Heragu
Springer, 2019 Technology & Engineering - 734 pages

This book provides an overview of important trends and developments in logistics and supply chain research, making them available to practitioners, while also serving as a point of reference for academicians. Operations and logistics are cornerstones of modern supply chains that in turn are essential for global business and economics. The composition, character and importance of supply chains and networks are rapidly changing, due to technological innovations such as Information and Communication Technologies, Sensors and Robotics, Internet of Things, and Additive Manufacturing, to name a few (often referred to as Industry 4.0). Societal developments such as environmental consciousness, urbanization or the optimal use of scarce resources are also impacting how supply chain networks are configured and operated. As a result, future supply chains will not just be assessed in terms of cost-effectiveness and speed, but also the need to satisfy agility, resilience and sustainability requirements. To face these challenges, an understanding of the basic as well as more advanced concepts and recent innovations is essential in building competitive and sustainable supply chains and, as part of that, logistics and operations. These span multiple disciplines and geographies, making them interdisciplinary and international. 

The  book contains contributions and views from a variety of experts from multiple countries, and combines management, engineering as well as basic information technology and social concepts. In particular, it aims to:

  • provide a comprehensive guide for all relevant and major logistics, operations, and supply chain management topics in teaching and business practice
  • address three levels of expertise, i.e., concepts and principles at a basic (undergraduate, BS) level, more advanced topics at a graduate level (MS), and finally recent (state-of-the-art) developments at a research level. In particular the latter serve to present a window on current and future (potential) logistics innovations in the different thematic fields for both researchers and top business practitioners
  • integrate a textbook approach with matching case studies for effective teaching and learning
  • discuss multiple international perspectives in order to represent adequately the true global nature of operations, logistics and supply chains.

September 9, 2019

Training and Development for Industry 4.0 - Digital Transformation

Industry 4.0 – the fourth industrial revolution promises far reaching efficiencies as well as effectiveness and new product benefits and features across a wide variety of sectors. Its based on number of new technologies and innovations in sensors and computing, bio technology and simulation to nano technology, cloud computing, smart technology and robotics.

Using advances in technology health can be monitored remotely, online shopping and deliveries can be tracked, and the temperature of  homes controlled remotely.

Today, technology, engineering and manufacturing are creating  a manufacturing sector where products can be ordered, processed, manufactured and delivered without a pair of human hands being involved. This level of machine automation and its direction and control by artificial intelligence will  increase our reliance on engineering skills and maintenance expertise.

Operator Technical Training

Manufacturing is doing  the shift towards a more knowledge- and service-based economy.
Machine operators and technicians will still play a critical role in most manufacturing and engineering businesses.  There is also a need to upskill existing operators. To keep their place in the new production environment of  Industry 4.0, every manufacturer needs to get involved in skills development, understand the skills needed in the factories of tomorrow, and invest in the development of these skills today.

Upskilling machine operators to diagnose faults and repair machines at source should mean that productivity will increase. There’s no doubt that technology is  moving  fast, but technical training can run alongside new machines. But there is  a block in leadership area also and unless leaders are adequately developed, operator training cannot be managed by them..

Leadership Training for Industry 4.0

A massive 86% of respondents to the 2015 World Economic Forum Survey  prioritised training, coaching and mentoring as the best way to develop tomorrow’s leaders.

Just as employees might have to be reskilled, leaders  also will need to develop strong capabilities and qualities to tackle changes to the environment that Industry 4.0 will bring. The competitive is landscape includes new competition in the market, with disruptive technology leading to young and innovative companies quickly gaining market traction.

Leaders will need to spot and react quickly to new competition on the horizon. They have can quickly grab hold of new opportunities by search for available new technologies and adopting them quickly and appropriately.

In the new production systems, machines will be able to interact with their environment, and learn new behaviours and self-optimising strategies, leaders will need to harness the talents of their employees to fully explore, utilise and maximise new technological advancements.

Leaders will need to communicate at a whole new level as the future is uncertain due rapid change and innovations due to the new set of Industry 4.0 technologies.  Open and honest communication will be the most important leadership skill.

Every manufacturer needs to get involved in skills development. They need to fully understand and develop the skills needed, both on the factory floor and in the board room.

Managers need to adapt their style to embrace the attributes of leadership and coaching. They need to clearly express the need for additional knowledge, education, training and new skill acquisition. If management and leaders do not engage their people in the need and desire to upskill themselves, then any technical training budget will be wasted.

Neil Lewin, senior consultant at Festo Training & Consulting

Industry 4. 0 Training Options and Avenues

SIF-400 - The training system for Industry 4.0

SIF-400 - Teaching Material
SIF-400 - Related eLEARNING courses
SIF-400 – Opcionals
SIF-400 - Distribución conceptual

The The SIF-400 training system simulates a highly automated smart factory, including Industry 4.0 technologies, advanced manufacturing concepts and the reality of the connected enterprise.

Main features:

•Connected and open system
•Plug & Play
•Real process
•Management software
•IIoT (Industrial Internet of Things)
•Ideal for academics and research

SIF-400 allows the production of single unit containers and pack of containers. For the single unit containers, the customer triggers the order for X recipients assigning each of them a recipe. For the packs of containers, the customer triggers the order for X packs with the specific containers needed.

SIF-400 can dispatch single unit containers, packs of containers and pallets of packs.

BCG - ICO Model Factories for Immersive Industry 4.0 Training
A customized visit to an ICO model factory features capability-building sessions, an exchange of experiences with experts, and hands-on testing, including actual production lines—all aimed toward generating ideas about how to implement Industry 4.0.

Smart Factory Mechatronics Training System - Smart Factory Tabletop Mechatronics Training System

Manufacturing and Manufacturing Management Analytics - Introduction and Bibliography

Manufacturing Analytics for problem-solving processes in production

Maximilian Meister et al.
Procedia CIRP
Volume 81, 2019, Pages 1-6
Open Access Article

4 September 2019
Making Sensors Bug Proof - Ford

AI-powered analytics for Manufacturing - Solutions for Manufacturing

while there is significant value in the data Manufacturing companies produce, both structured and unstructured, too little of it is being analyzed.

To turn this information into better, smarter, and faster decision making, manufacturers must be able to fully exploit the mountains of data they produce. Through AI and analytics, companies can increase operational productivity, gain a competitive advantage and develop new business opportunities.

OpenText AI and Analytics
Using OpenText™ Magellan™ Analytics Suite and OpenText™ Magellan™, the AI-powered machine learning platform, Manufacturing companies can apply predictive algorithms to big data from both internal and external sources to generate accurate predictions and make better decisions.

2 July 2019
Armed With Analytics: Manufacturing as a Martial Art

June 2019

Manufacturing Analytics: Colgate Palmolive Optimizes for Agility and Productivity

Manufacturing operations have to support growth and agility while continuing to excel at operational efficiency. Ann Tracy, VP Global EHS, Sustainability and Supply Chain Strategy Colgate-Palmolive

The key enablers for productivity in the manufacturing network have to be identified. Colgate has blended design and manufacturing analytics to accelerate the pace of decision making. The initiative has achieved scale  and supports continuous improvement with user engagement and ownership.

1 Jan 2019

Benefits of Manufacturing Analytics

November 2018

How a German Manufacturing Company Set Up Its Analytics Lab

Niklas GobyTobias BrandtDirk Neumann

Three years on, ZF Data Lab is a valuable addition to the company.  ZF has been able to solve problems that had stumped the company’s engineers for years using ZF Data Lab Two examples were given in HBR article.

2 Oct 2018

Machine Manufacturing Analytics – Contributing to the Evolution of an Industry

SAP Machine Manufacturing Analytics visualizes a large set of real-time data through a newly designed interface, which allows engineers to adjust production processes as they are happening, and to make better predictions moving forward. Ultimately, SAP Machine Manufacturing Analytics helps design manufacturing processes and is scalable to monitor large cereal production in multiple locations.