How to Organize an Industrial Engineering Department

Industrial engineers use science and math tools to design efficient, effective work organizations.

Industrial engineering attempts to optimize how a system, process or organization functions using a methodical approach based largely on mathematical analysis. Industrial engineers focus on functions such as supply chain management, production design, labor and cost analysis, ergonomics, market analysis, systems design, facilities and assembly planning, and resource utilization analysis. The goal is to develop systems that are efficient and effective in producing products and services with little or no waste of time, money, materials, energy or other resources. The systems should identify gaps, inefficiencies, overlaps and opportunities.

Instructions

1. Examine the structure in which your industrial engineering department will function. Determine whether you will be (1) a stand-alone, self-governing organization, (2) a unit within a larger company that provides a variety of products and services to the general public or (3) an integral part of a larger company that serves other businesses. Determine the activities your department will conduct based on the structure in which you will function.

2. Determine the most effective model of organization for the activities you will be required to perform. There are many organizational models, but they mostly fall into one of three patterns. The common business model has a controlling leader or group that directs a variety of units consisting of personnel who carry out the same activity. In this model you might have engineering units focused on activities such as manufacturing, transportation, human resources, accounting and supply chain. The project model is organized around projects requiring personnel with different competencies. These units feature employees working together under a unit manager, who in the previous model would be in separate units reporting to separate supervisors. A third, hybrid, model is similar to the project model, but receives services from separate units, such as human resources, legal, risk management and accounting, which are organized as part of a common business model.

3. Seek advice from experienced employees about the plan you devise. Listen carefully to problems they identify and work with them to make modifications. Prepare a report that outlines what you learned and indicates why your organizational plan is the most likely to succeed. Describe the mission and how your plan is best suited to it in terms of finances, employee and resource utilization and marketing.

4. Present your ideas for organizing your industrial engineering department to whomever is ultimately responsible for the decision. Indicate how you intend to monitor the department's effectiveness and your step-by-step plan for implementing the departmental organization.

References

• University of California: Business Patterns; Models of Organization

Resources

• WIZ IQ: Organizational Structure