Article
What is the ROI of an Industrial Engineering Department?
During my visits to various manufacturing companies, I have noticed a common trend: the absence of an Industrial Engineering (IE) department. Many companies believe that additional investment is unnecessary, assuming that the production department can handle any "IE type" work. However, Industrial Engineering is a discipline that applies engineering principles to the design, improvement, and operation of systems. Skilled IE professionals are adept at enhancing efficiency, productivity, and quality across diverse industries. They bring a unique perspective by seeking data-driven solutions from the outside in, rather than relying solely on experience.
The potential return on investment (ROI) for establishing an industrial engineering department can be remarkable. According to a study conducted by the American Society of Mechanical Engineers, companies with an IE department enjoyed an average ROI of 20%. This means that for every $1 invested in an IE department, companies experienced an average return of $1.2.
The primary focus areas of an IE department encompass Process Optimization, Supply Chain Optimization, Quality Improvement, Safety and Environmental Compliance, Innovation & Product Development, as well as New Projects. The cumulative effect of these efforts leads to a positive ROI, making an IE department a valuable asset for any organization.
If you are seeking ways to enhance your company's efficiency, productivity, and quality, I strongly urge you to consider investing in an industrial engineering department. Unsure of where to begin? Connect with us, and we will provide the guidance and support you need to establish and sustain a successful IE department.
