<p>I have an MS in Operations Research, and I'm working on my PhD. Here goes...</p>
<p>You've asked a complex question that can be addressed in many ways. This is my first stab, but I'll be happy to elaborate. </p>
<p>Industrial engineering applies the principles of engineering to industrial processes. It's an ABET-accredited field and offered widely in American engineering schools. It's real engineering: process design is a vital element of any manufacturing industy. IE will include courses on quality control (drawing heavily from statistics), process modeling and simulation (using computer science), forecasting, testing (design of experiments--another branch of statistics and OR), and other rigorous engineering specialties. </p>
<p>Many of the methods used by IE's are developed by the Operations Research community. OR uses a wide array of mathematical techniques to solve complex problems. New methods are being developed all the time, as well as new theories that will clearly become important elements of future systems and processes.</p>
<p>Now, all that I just wrote could have been written in, say, 1986. Fast forward into this century, and we see some important changes. For one thing, manufacturing has undergone a revolution. Automation, numerical control, robotics, advanced materials and sensors, and faster computers make the factory floor of today unrecognizable to the IE graduates of the 1980s. </p>
<p>As this has evolved, a new discipline is being born: systems engineering. SE teaches the design of large, complex systems as an integrated process. Thus, while most large systems are 'systems of systems', the really hard stuff is in making everything work together. Interface design--whether it's in software, hardware, or both--stretches the limits of modern methods. Given the choice, I'd rather be presented with a straightforward EE circuit design problem.</p>
<p>While OR supports IE and they share many commonalities, OR has a much richer market for its ideas and methods. That's been my personal experience, and--as I've preached before on CC--the website 'salary.com' confirms this. I see almost endless demand for modern OR techniqes for today's graduates.</p>
<p>I'll be happy to answer any other questions. Just forgive me if I repeat myself from earlier posts.</p>