The Future of Industrial Engineers

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The Future of Industrial Engineers
AIM Conference Enterprise Restructuring/Improveme
nt
Skopje, September, 2011

• Prof. Robert Minovski, PhD

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Content

• Part 1Presentation of the Division of the IEM
• 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

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• Part 1Presentation of the Division of the IEM

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Part 1Presentation of our Division of
IEMFaculty of Mechanical Engineering - Structure
Total number of students 2000
Enrollment in 2011 300
Teaching staff 64
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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

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Division of Industrial Engineering and
Management Activities
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• Part 2 The Future of Industrial Engineers
• The Future of Industrial Engineering
• 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)
• 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

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Definition of Industrial Engineering
to design or to improvement systems for the
physical distribution of goods and services and
to determine the most efficient plant locations.
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In few words I would say that
Industrial Engineering is dealing with the
optimization of systems and processes (in given
circumstances)
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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

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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

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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

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Brief overview of the present situation of IE
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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)

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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

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New methods

• Future demands
• Greater accuracy
• Bigger speed
• More complex organizations
• Methods with more solid mathematical background
• More intensive utilization of IT

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New non-typical areas
Type of organization
service
manufacturing
typical
direct
non-typical
indirect
Type of workers
Typical areas
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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
  non-typical industries, like sports and
  entertainment

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Some examples of Sports Business Management study
programs
University University of Central Florida http//web.bus.ucf.edu/sportbusiness/?page929 California State University--Long Beach http//www.csulb.edu/colleges/chhs/programs/sports-management/overview/program-description/
Title Master's in Sport Business Management Master of Arts in KinesiologyOption Sport Management
Offered Courses 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) 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)
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New types of companies
Type of organization
service
manufacturing
big
direct
medium
indirect
small micro
Type of workers
Company size
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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

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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.

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COMPASS (methodology for enterprise
restructuring) basic idea
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COMPASS the PMS model
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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

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Aplication of Method of Minimal Squares in COMPASS
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Hybrid Simulation Model
Importance of competitiveness indicator
Performance of competitiveness indicator
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• 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

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General directions

• The education in the near future in general will
  continue to follow the idea of Competence Based
  Learning
• Generic competences
• Specific competences

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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, ones 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 bigger picture (i.e., ability to see how things are interconnected ability to think both strategically and operationally, working across borders)
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)
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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.

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• 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

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Employment of industrial engineers (sourceUS
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 183,200
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Avg. starting salary offers for BSc graduates in
IE (sourceUS 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
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Predicted employment growth of industrial
engineers (sourceUS Department of Labour, 2008)
Occupational Title Employment, 2008 Projected Employment, 2018 Change,2008-18 Change,2008-18
Occupational Title Employment, 2008 Projected Employment, 2018 Number Percent
Engineers 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
Civil engineers 278,400 345,900 67,600 24
Computer hardware engineers 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
Environmental engineers 54,300 70,900 16,600 31
Industrial engineers, including health safety engineers 240,400 273,700 33,200 14
Health safety engineers, except mining safety engineers 25,700 28,300 2,600 10
Industrial engineers 214,800 245,300 30,600 14
Marine engineers and naval architects 8,500 9,000 500 6
Materials engineers 24,400 26,600 2,300 9
Mechanical engineers 238,700 253,100 14,400 6
Mining and geological eng., including mining safety engineers 7,100 8,200 1,100 15
Nuclear engineers 16,900 18,800 1,900 11
Petroleum engineers 21,900 25,900 4,000 18
All other engineers 183,200 195,400 12,200 7
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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

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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

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• 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_at_mf.edu.mk