ANKAYA UNIVERSITY

FACULTY OF ENGINEERING AND ARCHITECTURE

DEPARTMENT OF INDUSTRIAL ENGINEERING ENDSTR MHENDSL BLM
retmenler Cad. No: 14, Yzncyl, 06530, Ankara, TRKYE Phone: +90312284 45 00 ext. 169 Fax: 90312284 8043

TRAINING BOOKLET STAJ KILAVUZU

Spring 2009 Bahar 2009

TABLE OF CONTENTS
Page
1. Introduction .. 2. Guidelines for Summer Training . 3. Summer Training Questions and Tasks . 4. Industrial Engineering Problem . 5. Conclusion . References . 2 3 5 14 16 17

1. INTRODUCTION
This booklet is prepared to guide the sophomore and junior students during their Summer Training. The minimum time required for each Summer Training is 20 working days. In both trainings, students are expected to observe, describe and report some systems phenomena covering Organizational Concepts, Production Systems Design, Production Planning and Control Systems, and Information Systems. In addition, during the second training, each student should identify, formulate and find a satisfactory solution to an Industrial Engineering problem of the organization. In Section 2 of this booklet, students will find guidelines for company selection and application procedures, report writing, evaluation and grading of reports, and filling out the Log Book. Section 3 includes the questions and tasks to be fulfilled by the students during their summer training. Section 4 includes the instructions for identifying and solving the Industrial Engineering Problem. At the end of the booklet, a brief conclusion is made followed by the list of references.

2. GUIDELINES FOR SUMMER TRAINING

2.1. Company Selection Procedure
The Department will provide a list of companies acceptable for IE 200 and IE 300. Also, the number of Summer Training positions allocated to our students by some companies will be announced. However, the number of trainees that the companies will accept is usually limited. Therefore, the students are encouraged to find and propose alternative companies to be approved by the Department. The following criteria should be satisfied in the selection of a company: 1. For IE 200, the company must be involved in manufacturing. For IE 300, manufacturing or service companies are acceptable. However, when selecting a servicesector company, students make sure that they will be able to observe all processes in order to fulfil their duties. 2. The company should satisfy at least one of the following criteria: a. at least one industrial engineer must be employed, b. at least three engineers must be employed, c. at least 15 white-collar personnel should work in the organization. 3. The company will be functioning actively (not on a break due to maintenance, economic crisis, etc.) during the period of the training. 4. For IE 300, the proposed company should be different from the company where IE 200 Summer Training was performed. However, a different plant of the same company in a different location may be accepted upon approval of the Department. 5. If a student fails from a Summer Training, it is not allowed to conduct the repeated training in the same company.

2.2.

Application Procedure

The subsequent steps should be followed for Summer Training. Step 1. Students should provide the following information about the company (or companies) to which they apply for summer training, and submit it to the Summer Training Committee using the Company Proposal Form (also available in the courses web site). 1. Full title and the address of the company. 2. Employment data (numbers of workers, engineers, industrial engineers, and other technical employees, administrative staff, etc.). 3. Nature of the business that the company is involved in. 4. A brief description of the types of operations undertaken by the company. 5. A list of the main products of the company. 6. Approximate annual sales (if available). 7. Brief history of the firm (if available). Step 2. After the company is approved, students should get the Statement of Permission for the Summer Training Form from their academic advisor, fill out the relevant parts and have it approved (signed) by their academic advisor. Then, submit it to the Summer Training Coordinator. 3

Step 3. After the Statement of Permission for the Summer Training Form is approved by the Summer Training Coordinator, students will get the Letter of Application, with which they apply to the selected companies, from the Department Secretary. The Letter of Application should be submitted to the companies by the students. Step 4. As soon as the starting and finishing dates of their summer training are determined, students should get the health premium application form from the Department Secretary or from the Summer Training web page, fill it out and return it to the Department Secretary to start the process for their health insurance premiums which will be paid by the University. Step 5. Students should download the Training Log Book and this Summer Training Booklet from the courses web site and submit a printed copy of the Training Log Book to the company supervisor when they start their summer training.

2.3

Instructions for Preparing the Summer Training Report

1. The report must be written in English and printed. It should be free of spelling, typing and grammar errors. The use of spell/grammar checkers and online dictionaries is recommended. 2. Style, format, organization and content of the report are important issues to be considered in evaluation and grading. You should use, as a general rule, Times New Roman font of size 12 and 1.5 space between lines. 3. The main headings must be numbered and written in capital letters whereas subtitles must be written in small letters (initial letters being in capitals). All pages should be given page numbers. Figures, drawings, charts, tables, etc. should be numbered, captioned and put in Appendices only if they are not of ultimate importance. They should be referred in the report wherever appropriate using their corresponding numbers. 4. Students are not allowed to borrow others material directly without citation (otherwise, it is plagiarism) and they should not use unnecesary filler material compiled from internet or other sources. 5. The report should consist of the following sections: Title Page Table of Contents (with corresponding page numbers) Statement of Plagiarism Introduction Analysis: Questions and Tasks (students should determine the structure of this main part of the report, definitely not in Q&A style) Conclusion References Industrial Engineering Problem (for IE 300 only) Appendices 6. IE 300 reports should be submitted no later than the first day of the registration period for the following semester. IE 200 reports should be submitted until the last day of the add-drop period for the following semester. 4

2.4.

Evaluation of Summer Training Reports

The overall assessment of the students Summer Training is based on the evaluation of Summer Training Report and the Summer Training Log Book. 1. The Log Book is examined prior to acceptance for evaluation of the students written Summer Training Report. If it is found to be inadequate in student performance or programme coverage, then the Summer Training is regarded as Unsatisfactory and will have to be repeated. 2. The evaluation of Summer Training Reports will be done on a pass/fail basis. If the report is found to be Satisfactory, the student passes. If the report is determined to be Unsatisfactory, the student fails and student will have to repeat the Summer Training at his/her earliest convenience. When the report is evaluated as requiring some admissible revisions, during pre-processing, it will be returned back to the student for revision and/or rewriting in a limited duration. The completed report will be evaluated by the same grader. The details of evaluation process will be announced later in the course webpage. The evaluation of the reports is based on the following factors: Style, format and organization of the report Command of English Answers given to questions Accomplishment of tasks Definition, modeling and solution of the IE Problem (for IE 300 only)

The details of grading will be announced at the begining of each semester. Students will be allowed to examine the details of their grading. In case of objections, the Summer Training Committee is the ultimate decision maker about the re-evaluation procedure and determination of the final grade.

3. SUMMER TRAINING QUESTIONS AND TASKS

In the following sections, students will find the tasks to be accomplished during the Summer Training and specific questions which the student is expected to answer. Questions and Tasks are organized in the following subsections: Introduction of the Company, General Principles of Management and Organization, Manufacturing Systems, Analysis of Production Systems, Quality Engineering, Maintenance Planning, Automation and Advanced Technologies, Information Systems, Investment Analysis, Production Planning and Control Systems.

3.0

Introduction of the Company

IE 200 and IE 300 Task: The following information about the company should be provided: Full title Address Brief history Employment data (Number of workers, technical and administrative staff, etc.) Approximate annual sales (including exports), market share, and competitors Main products or services 5

3.1
3.1.1

General Principles of Management and Organization

Management Functions

IE 200 and IE 300 Question: Describe how the management functions (such as Planning, Organizing, Staffing, Directing, and Controlling) are performed in the company. 3.1.2 Organization of the Company

IE 200 and IE 300 Task: Discuss the organizational structure of the company referring to the organizational chart (if it is not available, prepare it yourself). IE 200 and IE 300 Task: Make a list of IEs employed in the company. For each IE, provide name, title, duties, responsibilities, department, university graduated, and graduation year. If there is no IE, explain who is/are responsible from the duties of Industrial Engineers and explain their duties in detail. 3.1.3 Code of Ethics for Engineers

IE 200 and IE 300 Task: Does the company have a published code of ethics? Does the company have an ethical issue reporting procedure within the company? If yes, explain. If no, propose a code of ethics for the company.

3.2
3.2.1

Manufacturing Systems
Manufacturing Engineering

IE 200 and IE 300 Question: Explain briefly the types of manufacturing processes that exist in the plant. For IE 300, if the company is in a service system; Explain briefly the types of service processes that exist in the plant. IE 200 and IE 300 Task: List the technical specifications (age, power capacity, efficiency) of at least two machines on the shop floor, match the manufacturing processes discussed in the above question. For IE 300, if the company is in a service system; List the technical specifications (age, power capacity, efficiency) of at least two equipment, match the service processes discussed in the above question.

3.2.2

Operations Planning and Control

IE 200 and IE 300 Question: Is there any Operations Planning and Control Department in the plant? If yes, what are the responsibilities of this department? If no, who is responsible from the duties of this department and how do they perform these activities?

3.3

Analysis of Production Systems

IE 200 and IE 300 Question: Discuss the current production system(s) in the company. Elaborate the reasons of the selection. 3.3.1 Work Study

IE 200 and IE 300 Task: Choose a productivity measure (labor productivity, capital productivity, materials productivity, etc.) and calculate the productivity for a specific material, machine, process, labor or capital. Then recommend suggestions about how to improve this productivity value. 3.3.1.1 Methods Study IE 200 and IE 300 Task: Prepare a part (or ingredient) list for a product of the company. For IE 300, if the company is in a service system; Prepare a list of steps for a service of the company. IE 200 Task: Select a part, component, machine part, or equipment which is used in production system of the company, and then draw the orthographic views as engineering drawing prepared using AutoCAD. Provide your measurement data and the snapshots (photographs). IE 200 Task: For a product or a specific part, provide the operation process chart and an assembly tree. IE 300 Task: For an assembly or subassembly prepare an assembly process chart. If an assembly does not exist, provide a process chart for a specific part or product. For IE 300, if the company is in a service system; Provide a process chart for a specific service. 3.3.1.2 Operation Analysis IE 200 and IE 300 Task: Choose a workstation with manual work. If there is not such a workstation, choose an office process such as a secretarial job. Draw the work piece(s) and indicate the contents of the bins and the location of tools and materials. Draw the left and right hand operation chart. Try to improve the process, prepare the operation chart for the improved process and compare with the original process. 7

3.3.1.3 Work Measurement IE 200 Question: Are standard times for operations (and elements of operations) determined in the company? If yes, for what purposes are standard times being used? Supply the data for two operations and explain how standard times are calculated. If not determined, which technique might be appropriate for the company? Why? Apply the suggested technique for one operation (that is, collect data, make analysis, and calculate the standard time). 3.3.2 Cost Analysis IE 200 and IE 300 Question: How are the unit costs determined in the company? Explain fully. IE 200 Task: Make horizontal and vertical analysis of the last three years balance sheets of the company. Provide the most important three ratios for the company and discuss their trend. IE 200 and IE 300 Task: Calculate the unit cost of a product using the companys method (use fictitious values if the company does not provide actual values). Explain how the indirect costs (overheads) are allocated in the company. For IE 300, if the company is in a service system; Calculate the unit cost of a service using the companys method (use fictitious values if the company does not provide actual values). Explain how the indirect costs (overheads) are allocated in the company. IE 200 Task: Take a machine or equipment which is younger than its economic lifetime. Explain the method used for calculating the depreciation expense for this asset. 3.3.3 Ergonomics IE 300 Task: Discuss the working environment problems: heat (cold), humidity, vibration, noise, illumination, ventilation, colors, etc. IE 300 Task: Report the types of displays and controls in the workshop. Discuss their designs. Comment on the postures of workers during work. Suggest improvements. 3.3.4 Safety IE 200 Question: What are the special hazards associated with the production in the plant? Are there any special national organizations, rules and regulations associated with the control of these hazards? If so, describe them.

IE 200 Question: What are the precautions applied for safety? Explain. 3.3.5 IE 200 Task: Select a manual task on the shop floor (or an office process if not available). Collect two sets of processing time data for this task (in different production days, for different workers performance, etc.). Perform a hypothesis test for the equivalence of the two means of processing times. 3.3.6 Job Evaluation and Wage Incentives Statistical Analysis

IE 200 Question: Is job evaluation used in the firm? If yes, explain the approach in classifying the jobs. Otherwise, suggest the most suitable method for classifying the jobs? IE 200 Task: Select two positions: one blue-collar and one white-collar employee. Give their job descriptions. IE 200 Question: On what basis are the wages determined in the company? Is the company using any kind of incentive system in order to improve labor productivity? If so, give some examples and discuss their effect on labor. If not, indicate the reason why the company is not using wage incentive systems. Discuss the problem with your supervisors in the company; ask them about the ways of improving labor productivity. 3.3.7 Plant Location and Layout 3.3.7.1 Plant Location IE 200 and IE 300 Question: Which factors were taken into account when it was decided to locate the plant at the present location? Explain each of them and discuss their appropriateness. Is the firm planning to add new facilities to the existing one(s)? Which factors do they consider? 3.3.7.2 Plant Layout IE 200 and IE 300 Task: Prepare a block plan of the plant or supply a blue print, if one exists in the company. IE 200 and IE 300 Task: For the departments shown in the plan above, prepare an activity relationship chart. According to this chart prepare an alternative improved layout. If you think there cannot be any improvement explain your reasons.

IE 200 and IE 300 Question: What are the types of layout in the plant? Choose one and explain in detail, including the advantages and disadvantages of the different types of layout used. IE 300 Task: Prepare a scaled and detailed layout of a selected department. Provide a blue print also, if one exists. Discuss the type of layout used. 3.3.7.3 Materials Handling IE 200 and IE 300 Question: Which material handling equipments are used in the company? Explain their usage purposes.

3.4

Quality Engineering

IE 200 and IE 300 Question: Does the company have a quality control department? If yes, what is the prime responsibility of that department? What techniques are they using for Quality Control? If no, explain how do they handle the quality-related problems? IE 300 Task: How does the firm define quality? How do they assess customer satisfaction and what methods are used to measure the customer satisfaction? What methods are used in services in order to improve the quality? IE 300 Task: Briefly explain the quality assurance standards applied in the company, if any. If there are no standards used in the company, suggest the appropriate ones. IE 300 Task: Choose a quality measure for a specific part or product (such as amount of a specific substance in a chemical product, length, weight, diameter of a product, etc.) Take a random sample from the batch of products and decide on the sample size. Construct a control chart on X using 1, 2 and 3 -limits. If such charts already exist in the firm provide one of them. Explain the chart briefly. For IE 300, if the company is in a service system; skip this task.

3.5

Maintenance Planning

IE 200 Question: Are there any maintenance activities in the firm? Explain. If there is no, comment on the applicability of the maintenance activities in the company.

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3.6

Automation and Advanced Technologies

IE 200 Question: Are the advanced technologies used in the firm? If yes, explain their usages. If not, comment on how these technologies can be applied in the firm. IE 200 Task: Select a manual process in the company. Explain the process in details, describing the operation steps. Suggest a modification to simplify the process. Discuss how the simplified process could be automated.

3.7
3.7.1

Information Systems
Data Management

IE 200 and IE 300 Task: Describe the information flow between existing departments of the company in detail. What type of information is transferred to which department(s) and from where? What is the information flow media (for example, do they use computers for this purpose) through the departments? Add some examples of the forms used for information flow and explain their functions. IE 300 Task: Describe the information flow within a department of the company in detail. Supply examples of the forms used for information flow and explain their functions. IE 200 and IE 300 Question: What types of computer programs and software packages are being used? Which hardware is deployed in which department? Comment on the effectiveness of the internet usage. IE 300 Question: What is the level of network activities (Internet, Local Area Network) in the company? How does the firm use these network activities and what benefits are obtained?

3.8
IE 300

Investment Analysis

Task: Who is responsible (department) for investment planning in the company? Explain how the managers solve the investment related decision making problems. During the last 6 years, what were the major investments made by the company? Make a list. Take one example from the list and provide some numerical details (costs, revenues, life, etc.). Comment on the consequences of the investment in terms of effects on productivity and revenue.

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3.9
3.9.1 IE 300

Production Planning and Control Systems

Forecasting

Task: Explain the types of forecasting methods used in the company and their usage areas. Who are responsible of the forecasting activities? Obtain past sales data (if not available, you should create) of a product or service, and apply at least two suitable forecasting techniques for those data. Compare the models in terms of error criteria (such as MAD, MAPE, MSE, etc.) for past sales data and select one of them. Apply the technique you selected to obtain demand forecast for the next five periods. IE 300 Task: Obtain past sales data (if not available, you should generate pseudo data) of a product/service in your company and plot the data on a graph. Determine the patterns that you observe from the graph (trend, seasonality, cycles, irregular/random variations, etc.) that fits the data. Write the most suitable forecasting model for your data. Use the model and forecast for at least 5 periods ahead. Check for errors (MSE) to compare forecasts with actual sales. 3.9.2 IE 300 Task: Give an example of the grouping of products/services of the company for aggregation purpose. IE 300 Question: Does the company use MPS in production planning? If yes, explain how? If no, how do they make their production plans? Explain. 3.9.3 IE 300 Task: Develop a product-structure tree, an assembly-time chart, and a master schedule. Also give the material requirements plan for one component, which is being produced by the company. 3.9.4 IE 300 Task: Discuss the types of performance measures (scheduling criteria) used in scheduling. Consider the operations performed on a machine/service station. Determine how they sequence jobs on this machine. Explain and provide a related Gantt Chart. Which priority rules (FCFS, LCFS, SPT, DD, etc.) are used? If any dispatching rule is not used, suggest an appropriate priority rule and implement it on a set of jobs to be scheduled on the machine/service station. Show the schedule on a Gantt Chart. Scheduling Material Requirements Planning (MRP) Aggregate Production

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IE 300 Task: Reschedule one of the scheduling activities, which need improvement. Compare the proposed scheduling results with the existing one. 3.9.5 IE 300 Task: Apply ABC analysis for at least 15 inventory items of the company, and give details. Estimate the parameters (holding cost, ordering or set-up cost, etc.) of EOQ models applicable to one inventory item in each class (A, B, and C). Determine the EOQ and corresponding cost for each of the three items chosen. IE 300 Question: What are the different inventory types used in the company? Why is the company holding these inventories (give reasons for each type)? Does the company use ABC analysis for classification of items? What type of decision making models (EOQ, EPQ, etc.) does the company use for inventory management? 3.9.6 Production Planning and Control Inventory System

IE 300 Question: What type(s) of production environments (MTO: make-to-order, MTS: make-tostock, ATO: assemble-to-order) is(are) observed in the company? Briefly explain. 3.9.7 IE 300 Task: Select a product of the company and obtain past data related to the demand or sales figures of that product. Determine i. probability distribution of the demand or sales, ii. fixed/expected value of the lead time, iii. expected demand or sales during the lead time. Probabilistic Inventory Control

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4. INDUSTRIAL ENGINEERING PROBLEM

An Industrial Engineering (IE) problem could be related with: Facility location, Facility layout, Material handling, Cost accounting, Financial decision making, Work study, Ergonomics, Demand forecasting, Production planning, Capacity planning, Human resources management, Inventory management, Scheduling, Quality management, Product design, Process planning, Distribution logistics, Maintenance planning, Information systems, Customer requirements planning, Purchasing, Marketing, Strategic planning, etc. Industrial Engineering Problem part of your report should include the followings: Problem Identification and Definition. This first step is critical. It is essential for the student to have a clear understanding of the problem as a whole. A good way to define the problem is to write down a concise statement which summarizes the problem and its environment, the current status and finally write down the goals, where you want to be after the problem has been resolved. It is essential to develop an objective statement which clearly describes the current condition you and your company wishes to change. Make sure the problem is limited in scope so that it is small enough to realistically tackle and solve. Writing the statement will ensure that everyone can understand exactly what the problem is. It is important to avoid including any implied cause or implied solution in the problem statement. Remember, a problem well stated is a problem half solved. Data Gathering and Analysis. In this stage of problem solving, questions should be asked and in return data and information are gathered. The objective is to get as much information about the problem as possible. This involves determining what information is critical and how best to obtain it. It often requires making tradeoffs between the types of information and the level of detail and making judgments about the value of the information relative to the level of 14

effort and cost required to obtain it. Do not make the mistake of assuming you know what is causing the problem without an effort to fully investigate the problem environment you have defined. Try to view the problem from a variety of viewpoints, be an open minded. Investigate how the issue under consideration affects others. It is essential to spend enough time researching the problem. Among the possible questions to be asked when analyzing the problem are listed below. What is the history of the problem? How long has it existed? How serious is the problem? What are the causes of the problem? What are the effects of the problem? What are the symptoms of the problem? What methods does the company already have for dealing with the problem? What are the limitations of those methods? Can the problem be divided into sub problems?

Model Formulation and Solving. In this step, the problem should be represented by a model. An analytical model (mathematical programming-LP, IP, MIP, DP, NLP, differential equations, stochastic processes, decision trees, statistics, queuing models, etc.) is preferred. However, because of complexity, stochastic relations, so on, some problems can not be represented properly by an analytical model. In such instances, simulation models are the best alternatives. This step requires a mix of using analytical tools and software by using your own creativity. Applying one of the tools directly is a naive way of solving problems. It is usually required to apply the mixed combination of tools with which you are equipped in IE courses to generate and compare the solution alternatives.

Evaluation and Selection of Preferred Solution(s). Developing a set of evaluation criteria and performance metrics are required for comparing the alternative solutions. Realizing that this is not an easy step including tradeoffs and sacrifices, these criteria are usually needed to be prioritized, either implicitly or explicitly, depending on different (operator, manager, executive, environment, society, etc.) perspectives.

Sensitivity/parametric Analyses, if possible, on the Solution(s). Real life is full of uncertainties. Hence, you must treat uncertainty in the problem solving process through either by post optimality analysis or stochastic treatment of the situation. For example, information will either be unknown or uncertain, or future requirements may significantly change over time. It is vital to understand the impact of these on the problem environment so as to obtain a robust solution over a range of potential scenarios. Thus, it is handy to perform sensitivity/parametric analyses rather than intractable probabilistic/stochastic treatments. Your task in this stage is to vary the value of one parameter while keeping the others fixed to see what happens to the solution that you suggest.

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5. CONCLUSION
This booklet provides an overview of the Summer Training process and the guidelines for the students. Several activities are involved within the Summer Training such as the observation of the system(s), data collection, and system analysis (based on the current theories and models). Therefore, students will have the opportunity of applying their knowledge and skills gained through the courses on real-life systems. Based on their observations and analyses, students are expected to fulfil their Summer Training requirements, which are stated in the form of questions and tasks. Finally, students are expected to express their work in an appropriate report format.

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