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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

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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

3 Definition of Terms

Employees paid by resultsThose whose wages are paid based on pre-determined

rates per unit of output, piece rates, pakyaw and other non-time work (eg. P1/case, P250/van, etc.)

WorkloadThe standard amount of work that can be accomplished by

an average employee, without compromising employees’ safety, determined through time and motion studies and other workload measurement techniques conducted by registered industrial engineers.

4 Definition of Terms

Workplace Safety AssessmentsAn evaluation of the soundness and safety of the premises

or workplace actually used 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.

5 Definition of Terms

Registered Industrial EngineerA 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 aHolder of a valid Certificate of Registration and Professional Identification card issued by the Board of Industrial Engineering (BIE) and the Professional Regulation Commission (PRC)

6 Objective of Regulation

Regulate the conduct of Workload Measurements and Workplace Safety Assessments and the

determination of production output as basis of calculating rates per piece only by Registered

Industrial Engineers.

Purposes:Afford protection to labor and ensure the safety and well being of workers by ensuring workplace safety;Allow businesses and industries reasonable returns on their investments by determining optimum levels of production/service output.

7 Compliance Strategy

Amend Art. 101 Payment by results of PD 442, otherwise known as the Labor Code of the Philippines, as amended, to read as

follows:

The Secretary of Labor and Employment shall regulate the payment of wages by results, including pakyaw, piecework and other non-time work, in order to

ensure THE SAFETY OF EMPLOYEES and payment of fair and reasonable wages, preferably through time and motion studies BY CONDUCTING A

WORKPLACE SAFETY ASSESSMENT AND WORKLOAD MEASUREMENTS BY REGISTERED INDUSTRIAL ENGINEERS IN COORDINATION

or in consultation with representatives of workers and employers organizations.

FURTHER, THE SECRETARY OF DOLE SHALL REGULATE THE EMPLOYMENT OF WORKERS SUBJECTED TO EXTRAORDINARY WORKING CONDITIONS BY ENSURING THAT APPROPRIATE WORK HOURS AND REST

PERIODS ARE DETERMINED THROUGH WORKLOAD STUDIES.

8 In Summary

The Workload Optimization Act of 2006

Declares unlawful the adoption of payment by results or piece rates without the necessary workload measurement and workplace assessments conducted by licensed industrial engineers;Require industries and businesses to determine appropriate work hours and rest periods for employees subjected to extraordinary working conditions by licensed industrial engineers;Utilizes all registered industrial engineers to become agents of the government, through DOLE, in ensuring that labor and safety standards are complied in the workplace.

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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 otherpurposes

10 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;

11 Conduct of IE Licensure Examinations

Conduct and SupervisionBoard of Industrial Engineering (BIE) under the administrative control and supervision of the Professional Regulation Commission (PRC)

1st IE Licensure ExamsGraduates of the SY 2007-20082nd week of November 2008 and every year thereafterIn venues and dates prescribed by the BIE

12 Scope of Examinations

Day Rate Subjects

1 of 3 20% General EngineeringGeneral Engineering SubjectsProbability and StatisticsEngineering Economy

20% Work Methods and MeasurementHuman Factors Engineering and ErgonomicsMethods EngineeringSafety Engineering

13 Scope of Examinations

Day Rate Subjects

2 of 3 20% Manufacturing SystemsOperations ResearchMaterials Handling, Plant Layout and Facilities PlanningProduction Planning and ControlInventory Planning and ControlSystems EngineeringIndustrial Materials and Processes

10% Computer and Information SystemsSystems Analysis and DesignIndustrial Systems and DesignManagement Information Systems

14 Scope of Examinations

Day Rate Subjects

3 of 3 20% Management SystemsQuality Assurance and SafetyStatistical Process and Quality ControlFeasibility StudyIndustrial Organization and ManagementCost Control and Financial Management

5% IE Laws and EthicsLabor 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*

15 Scope of Examinations

Day Rate Subjects

3 of 3 20% Management SystemsQuality Assurance and SafetyStatistical Process and Quality ControlFeasibility StudyIndustrial Organization and ManagementCost Control and Financial Management

5% IE Laws and EthicsLabor 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 five (5) months before the exam.

Reference: Practice of BAR exams for lawyers

16 Ratings in the IE Licensure Exams

PassedAve. of = > 70% with no grade lower than 50% in any given subject.

Conditional PassAve. 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 CourseFailed in 3 attempts;Re-enroll and shall earn at least 24 units of the subjects in the IE licensure;Take the IE licensure again!

17 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) or Bachelor of Science in Industrial and Management Engineering (BSIME), 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.

18 Who shall take the Licensure Exams; Exceptions

Graduates of BSIE/BSIME 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;

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The Twin Industrial Engineering Bills

Workload Optimization Act of 2006

Industrial Engineering

Law of2006

Justifies

Required

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NEXT STEPS in legalizing the IE

profession

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Next Steps in legalizing the IE professionAmend 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 beendirectly attributed by the work done by the employee.

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SUPPORT the TWIN Industrial Engineering

bills…