Abstract

Industrial engineering represents a significant tool how to eliminate waste in both manufacturing and other areas of the enterprise. This helps reduce costs, increase production capacities and other characteristics, which can lead to better competitiveness and production performance. Focusing on the implementation of methods that have a significant impact on these indicators should be part of the choice of industrial engineering methods at all. Finding industrial engineering methods that have significant impact on overall business performance is the main purpose of this paper. Another objective was to determine whether the impact of industrial engineering methods applies to all industries in the Czech Republic or whether it applies only to selected industries. The data needed to achieve the objectives was obtained through an online questionnaire survey, the survey focused on a wide range of manufacturing companies (N=235) from different industries, different sizes and ages in the Czech Republic. For comparing the overall business performance among individual respondents, a basic ROE indicator was selected. To measure this indicator from the impact of the tax, investment and credit policy, a modified ROE indicator (calculated first with EBITDA and then with EBIT) was used. The results show that the use of industrial engineering methods in manufacturing plants in the Czech Republic is limited to a few selected methods. Similarly, only a few industrial engineering methods are typically used in high performance firms and can therefore be said to be involved in increasing performance. Presented research also shows that this influence of methods does not apply to individual industrial engineering methods globally in all the sectors studied, but only in some of them. DOI: http://dx.doi.org/10.5755/j01.ee.29.2.19871

Highlights

  • Industrial engineering (IE) and the related concept of lean is a tool that has spread during years almost all over the world, both in manufacturing companies and in service companies or healthcare sector (Radnor et al, 2012; Rajnoha & Chromjakova, 2009; Piercy & Rich, 2009; Suarez-Barraza et al, 2012; Stefko et al, 2016)

  • The relationship between lean production and the production performance of the company was studied (Cua et al, 2001), and higher performance should lead to higher economic performance, this relationship was not sufficiently confirmed (Losonci & Demeter, 2013)

  • The total number of respondents who participated in our research was 235

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Summary

Introduction

Industrial engineering (IE) and the related concept of lean is a tool that has spread during years almost all over the world, both in manufacturing companies and in service companies or healthcare sector (Radnor et al, 2012; Rajnoha & Chromjakova, 2009; Piercy & Rich, 2009; Suarez-Barraza et al, 2012; Stefko et al, 2016). For our research and for the needs of literary research, we focused on the lean concept, lean six sigma. These two concepts cover all the specific IE tools that were part of our research. A relatively large number of case studies deal with the contribution of the individual lean methods, especially in reducing production and related costs and improvements in shop floors (Sjoberg et al, 2012; Jaca et al, 2014; Ablanedo-Rosas et al, 2010; Singh et al, 2013; Tucek et al, 2013). The relationship between lean production and the production performance of the company was studied (Cua et al, 2001), and higher performance should lead to higher economic performance (the most commonly measured by financial indicators), this relationship was not sufficiently confirmed (Losonci & Demeter, 2013)

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