The Proposed Industrial Engineering Law

1. PROPOSED INDUSTRIAL ENGINEERING LAW By Jose F. Rafols, PE Licensed Professional Industrial Engineer Riverside, California NOVEMBER 27, 2009

2. Title of Act This Act shall be known as the “Industrial Engineering Law.” 2

3. Statement of Policy The government recognizes the vital role of industrial engineering in nation-building and sustainable development through the adoption, development and implementation of effective programs in productivity improvement, industrialization and full and efficient use of resources. The government shall therefore develop and nurture competent, virtuous, productive and well-rounded Professional Industrial Engineers, whose standards of practice and service shall be excellent, qualitative, world-class and globally competitive through inviolable, honest, effective and credible licensure examinations and through regulatory measures, programs and activities that foster their integrity, continuing professional education, development and growth. Statement of Policy 3

18. Primer PRIMER ON “ Industrial Engineering Law.” 18

19. Primer On-going discussions in the Philippine Senate and House of Representatives Industrial Engineering Laws of 2006 Workload Optimization Act of 2006 The Industrial Engineering Law of 2006 19

20. Primer WORKLOAD OPTIMIZATION ACT OF 2006 An Act to Optimize Workload and ensure Workplace Safety for employees paid by results and those who are subjected to extraordinary working conditions, amending for this purpose Art. 101 Payment by results of P.D. No. 442, otherwise known as the Labor Code of the Philippines, as amended, providing penalties, appropriating funds therefore and for other purposes 20

21. Primer Workplace Safety Assessments An evaluation of the soundness and safety of the premises or workplace actuallyused by the subject employee in the performance of his regular work; Shall cover but is not limited to ergonomics, design of facility, equipment, personal protective equipment (PPE), working conditions and other factors affecting physical and mental strains. 21

22. Primer Registered Industrial Engineer 􀂉 A person who has exhibited competency in IE tools and techniques particularly time and motion studies and other workload measurements, human factors engineering, ergonomics, safety engineering, etc; 􀂉 Duly registered; and a 􀂉 Holder of a valid Certificate of Registration and Professional Identification card issued by the Board of Industrial Engineering (BIE) and the Profesional Regulation Commission (PRC). 22

23. Primer THE INDUSTRIAL ENGINEERING LAW OF 2006 An Act regulating the practice of Industrial Engineering in the Philippines, (reserving such privilege only to those who have passed and exhibited the minimum standards of IE competencies through IE licensure examinations) providing penalties, appropriating funds therefore and for other purposes 23

24. Practice of Industrial Engineering • Development, Adoption and Implementation of Productivity Incentives schemes and Other Cost-Improvement programs; • Setting-up, Maintenance and Improvement of Manufacturing Standards and Service Performance; • Job Design and/or Conduct of Workplace Safety Assessments, Time and Motion Studies and other Work Measurements; • Setting-up and Maintenance of Production Quota, Piece-rates, and other nontime work; • Preparation of Feasibility Studies; • Project Management; • Operations Research; • Production, Planning and Control; • Material Handling Design, Plant Layout and Facilities Planning; • Human Factors and Ergonomics; • Implementation, Supervision and Installation of Quality Management Systems; • Consultation, Research and Development, and other activities requiring Industrial Engineering knowledge, skill and proficiency; 24

25. Primer Conduct and Supervision 􀂉 Board of Industrial Engineering (BIE) under the administrative control and supervision of the Professional Regulation Commission (PRC) 1 st IE Licensure Exams 􀂉 Graduates of the SY 2007-2008 􀂉 2 nd week of November 2008 and every year thereafter 􀂉 In venues and dates prescribed by the BIE 25

26. Scope of Examnations Day Rate Subjects 1 of 3 20% General Engineering General Engineering Subjects Probability and Statistics Engineering Economy 20% Work Methods and Measurement Human Factors Engineering and Ergonomics Methods Engineering Safety Engineering 26

27. Scope of Examnations Day Rate Subjects 2 of 3 20% Manufacturing Systems Operations Research Materials Handling, Plant Layout and Facilities Planning Production Planning and Control Inventory Planning and Control Systems Engineering Industrial Materials and Processes 10% Computer Information Systems Systems Analysis and Design Industrial Systems and Design Management Information Systems 27

28. Scope of Examnations Day Rate Subjects 3 of 3 20% Management Systems Quality Assurance and Safety Statistical Process and Quality Control Feasibility Study Industrial Organization and Management Cost Control and Financial Management 5% IE`Laws and Ethics Labor Standards (Labor Code of the Philippines) Phil. Occupational Safety and Health Standards IE Code of Ethics and Technical Standards 5% Computer Information Systems 28

29. Scope of Examnations Day Rate Subjects 3 of 3 20% Management Systems Quality Assurance and Safety Statistical Process and Quality Control Feasibility Study Industrial Organization and Management Cost Control and Financial Management 5% IE`Laws and Ethics Labor Standards (Labor Code of the Philippines) Phil. Occupational Safety and Health Standards IE Code of Ethics and Technical Standards 5% IE Trends and Recent Developments General Guidelines as to the topics to be included or excluded from a particular examination shall be given by the “Board” at least (5) monthsbefore the examination. 29

30. Ratings in the IE Licensure Exams Passed 􀂉 Ave. of = > 70% with no grade lower than 50% in any given subject. Conditional Pass 􀂉 Ave. of = > 70% in the majority of the subjects; 􀂉 Provided, candidate shall retake the exam for the failed subjects within two (2) years from the preceding exam; 􀂉 Provided Further, candidate earned an ave. of = > 75% and a rating of = > 65% of all subjects retaken. Refresher Course 􀂉 Failed in 3 attempts; 􀂉 Re-enroll and shall earn at least 24 units of the subjects in the IE licensure; 􀂉 Take the IE licensure again! 30

31. Qualifications 􀂉 That he/she is a citizen of the Philippines; 􀂉 That he/she is of good moral character; 􀂉 That he/she is a holder of at least a Bachelor of Science in Industrial Engineering (BSIE) from a school, institute, college or university recognized by the government; 􀂉 That he/she has not been convicted of an offense involving moral turpitude by a court of competent jurisdiction. 31

32. 􀂉 Graduates of BSIE SY 2007-2008 onwards The following may or may not take the licensure exams provided he earns the IE Technical Skills Upgrade within three (3) years from effectivity of law, else, he shall be required to pass the IE licensure exams 􀂉 Graduates of BSIE/BSIME SY 2006-2007 or earlier; 􀂉 Fulltime IE faculty members provided that he has taken a full load for six (6) consecutive semesters or four (4) consecutive trimesters at the time of registration; 32

33. Industrial Engineering Law of 2006 Justifies Required Workload Optimization Act of 2006 The Twin Industrial Engineering Bills 33

34. NEXT STEPS in legalizing the IE profession 34

35. Next Steps in legalizing the IE profession 􀂉 Amend RA 6971, otherwise known as, the Productivity Incentive Act of 1990 by tapping Industrial Engineers as strategic partners of the Department of Labor and Employment in driving productivity, providing profit sharing and tax incentives to industries who have successfully reduced cost of services and products. 􀂉 Require licensed Industrial Engineers to sign off designs and plans of manufacturing and service facilities (eg. factories, Warehouses,etc.) before such facilities can be constructed to ensure that such designs and plans are of optimum levels. 􀂉 As a requirement for Total Disability availment under the SSS and GSIS laws, licensed Industrial Engineers to conduct ergonomic studies and to issue certification that such disability has been directly attributed by the work done by the employee. 35

36. Support Letter Sent to Government Officials 36 Jan. 9, 2010 Speaker, House of Representative Prospero Nograles Jan. 9, 2010 President, Philippine Senate Juan Ponce Enrile Sent followup letter, no reply Jun. 29, 2009 Chairperson, Professional Regulation Commission Justice Nicolas Lapena Sent a followup letter, no reply Feb. 27, 2009 Secretary & Head, Office of Correspondence, Office of the President Ma. Lourdes P. Varona On March 9, 2009 received a letter from Ms, Lorudes Varona, Secretary & Head, Correspondence Office, Office of the President, endorsing the proposed legislation. On March 18, received a letter from Mr. Bobby V. Dumlao, Director IV, Presidential Action Center, referring the proposed legislation to Justice Nicolas Lapena, Chairman of the Professional Regulatory Commission for his action. Feb. 1, 2009 President, Republic of the Philippines Gloria Arroyo-Macapagal On May 4, 2008, Mr. Diosdado Lalusis, OIC Licensure Office sent a reply noting information was referred to Att. Melchor, Secretary of the Professional Regulatory Boards of the Commission. Jan. 31, 2009 Committee Members of the Professional Regulation Commission Professional Regulatory Commission No reply Jan. 28, 2009 Representative, Lone District of Romblon Eleandro Madrona No reply Dec. 28, 2008 Chairperson, Civil Service and Professional Regulation Committee Raul Gonsalez Jr. Status Date Mailed Title Name of Gov. Officials

37. Support from Government Officials 37

38. Support from Government Officials 38

39. SUPPORT the TWIN Industrial Engineering bills… 39