Historical evolution of operations management

OPERATION EVALUATION

1. By-Dr.AkhilGoyal
HISTORICAL EVOLUTION OF O.M

2. INTRODUCTION
operations managementis the management of
systems or processes that create goods or provide
services.

3. EVOLUTION
Industrial Revolution
Began in the 1770s in England and spread
to the rest of Europe and to the United
States during the 19th century.
Substituted machine power for human
power.
Most significant machine was steam engine.

4. What did take place
Production became fast and low costly one
Economies of scale
Developmentof standard gauging system
Factories grew rapidly
Provided countless jobs

5. SCIENTIFIC MANAGEMENT
Widely changed the management of factories.
Developed by Frederick Winslow Taylor, the
father of scientific management.
Based on observation, measurement,
analysis and improvement of work methods
and economic incentives.
Studied to identify the best method for doing
each job.

6. Cont….
HenryFordpracticallyadoptedthe scientificmanagement
principlesforTaylor.
Introduced the moving assembly line, which affected
many industries.
to
Introduced mass production to the automotive industry.

8. The concept of “Interchangeable Parts” was applied by Eli
Whitney, an American inventor.
The basis for interchangeable
parts.
parts was to standardize
Any part in a batch of parts would fit any automobile coming
down the assembly line.
Result was a high decrease in assembly time and cost.

9. Concept of division of labor, which Adam Smith wrote
about in the wealth of Nations (1776) was used by Ford.
Anoperationisdividedupintoaseriesofmanysmall
tasks,individualworkersareassignedtooneofthose
tasks.

10. PIONEERS WHO CONTRIBUTED
-was an industrial engineerFrank Gilbreth
whoisoftenreferredtoasthefatherof
motionstudy.Hedevelopedprinciplesof
motioneconomythatcouldbeappliedto
incrediblysmallportionsofatask.

11. Henry Gantt -recognized the value of nonmonetary
rewards to motivate workers, and developed a
widely used system for scheduling, called Gantt
charts.

12. -applied Taylor’s ideas toHarrington Emerson
organization structure and encouraged the use of
experts to improve organizational efficiency. He
testified in a congressional hearing that railroads
could save a million dollars a day by applying
principles of scientific management.

13. Henry Ford -the great industrialist, employed
scientific management techniques in his factories.

14. DECISION MODELS AND MANAGEMENT
SCIENCE
Accompanied by the development of several
quantitative techniques.
F.W.Harris developedamathematicalmodel
inventoryordersize in1915.
H.F. Dodge, H.G. Romig and W. Shewhart
for
developed statistical procedures for sampling and
quality control in 1930.
L.H.C.Tippottconductedstudies that providedthe
groundworkforstatisticalsamplingtheoryIn1935.

15. Those qualitative models were widely used in world war
2.
Thesedecisionmodelswerealsousedforforecasting,
inventorymanagement,projectmanagementandother
areasofoperationsmanagement

16. THE INFLUENCE OF JAPANESE
MANUFACTURERS
Japanese manufactures developed management
practices that increased the productivity and quality.
Companies which were outside Japan was
interested in their approaches.
The influence of Japanese companies is continuing
for the foreseeable future.

17. OPERATIONS TODAY…
Advances in information technology and global
competition have had a major influence.
E –business is receiving increased attention from
business owners and managers in developing
strategies, planning and decision making.
Technologyrefers to theapplicationof scientific
discoveriesto the developmentand improvementof
goodsandservices.

18. Operations management is concerned with product and
servicetechnology,process technologyandinformation
technology.