error of suboptimization

The "error of suboptimization" in industrial engineering refers to optimizing a part of a system or organization rather than the entire system as a whole. This can lead to flawed or inadequate optimization, where local decisions are optimal for a specific component but result in a less-than-optimal outcome for the overall system.12

Industrial engineering itself focuses on applying engineering principles to maximize productivity at the lowest cost within industrial enterprises. It involves developing efficient work methods, standardizing processes, and managing production, often utilizing mathematical and computer modeling. The error of suboptimization occurs when this focus on efficiency within a part neglects the broader, interconnected goals of the entire industrial system.31