In this blog post, we’ll explore the origins of industrial engineering, examples of modularization, and how industrial engineering improves inefficiencies in our surroundings through system optimization techniques.
The Birth of Industrial Engineering and the Importance of Efficiency
Industrial engineering emerged as mass production took off in earnest following the Industrial Revolution. Unlike small-scale production, in a mass production environment, streamlining the production process itself became paramount. This point is well explained in Eli Goldratt’s book ‘The Goal’, which reminds us of a fundamental truth—though difficult to grasp at the time—that simply working harder does not always yield the highest efficiency, and that losses caused by inefficiency can be far greater than imagined.
As a result of its development centered on the keyword “efficiency,” modern industrial engineering plays a role not only in optimizing production processes but also in identifying and improving inefficient elements scattered throughout our lives—such as ergonomics, financial engineering, database design, and research on improving quality of life—to create better outcomes.
Modularization Case Study: Hyundai Mobis
Modularization is a method in which a parts supplier delivers related components to an automaker in a partially assembled state, rather than supplying them individually. This approach significantly reduces the effort required by the automaker and offers the advantage of allowing for flexible responses to customers’ detailed requirements.
In fact, modularization was a technology opposed by both the parent company and its subsidiary parts suppliers. Previously, there were no major issues with parts suppliers delivering directly to automakers, and there was significant concern that introducing a module manufacturer as an intermediary would reduce profits for both sides. However, upon actual implementation, automakers were able to save time and costs, while parts suppliers were able to facilitate production and quality management through faster communication.
Overall, automotive quality improved, leading to increased sales. Furthermore, by leading the way in modularization technology, the industry achieved milestones such as securing supply contracts with overseas companies, enabling parts suppliers—which had previously focused solely on the domestic market—to expand into the global market. From an industrial engineering perspective, this represents a successful case of identifying and addressing hidden crises and opportunities, resulting in increased profits for both large corporations and small and medium-sized enterprises through system optimization.
Operations Research and KTX Train Scheduling Optimization
Among the various methods for optimizing systems, Operations Research (OR) is a prime example. One of the fundamental problems in Operations Research is the Minimum Cost Flow Problem, which involves finding a flow path that minimizes total cost while ensuring a certain quantity flows from the source to the destination.
To solve this problem, one must first define an objective function. In a minimum-cost problem, the objective function is naturally set to minimize costs, and subsequently, the sequence of events and the constraints of each event are expressed mathematically. A key point here is that most traditional solutions assume a linear formulation.
An example of this is the optimal design of KTX train operations. Here, the objective function could be to minimize the total time from the departure of the first train to the arrival of the last train. Constraints include matching the departure and arrival stations for trains handled by a single train set, as well as turnaround times. In practice, Excel is used to collect and organize data, while dedicated solvers like Xpress-MP are utilized to solve the minimum cost flow problem.
The results derived from these equations visually demonstrate the optimization of train deployment and operational schedules, enabling the identification of specific improvement measures to reduce waste of time and resources in actual operations.
The Universality of Efficiency: Bottlenecks and the Role of Industrial Engineering
Every system has bottlenecks, which means there is always room for improvement. Therefore, the role of industrial engineering is limitless.
With a wide range of technologies and methodologies that continue to evolve, this field can be described as a discipline equipped with the ability to act as a conductor in an orchestra of various engineering disciplines, producing the most optimal and beautiful results.
