Introduction to Industrial Engineering

By Jane M. Fraser

Chapter 7

Operate a production system

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Recall that the previous chapter was about selection and organization of the physical assets of the organization. Now that the production system has been set up, we need to discuss how to operate it. This chapter is about the operating rules for the production system.

One difference between the previous chapter and this one is in the amount of time that a decision affects the organization. Building a new facility (Chapter 5) is a decision that usually affects the company for years and takes money and time to change that decision. In this chapter, I’ll describe decisions that usually affect the company for less time, and that take less time to change, but even among these decisions, the time varies. Consider these decisions:

These decisions are all part of “operations management” and they have impact over a shorter time period than the decisions in Chapter 5, but they still vary in how long they affect the company.

This chapter is organized into the following sections. (This organization follows closely that used by Turner et al.)