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7/29/2019 History of Operation Managt
http://slidepdf.com/reader/full/history-of-operation-managt 1/22
Saish Mulgaonkar(G-60)
Manoj Nagargoje(A-26)
Sagar Kasabe(A-21)
Atul Jain(G-38)
Pavan kannav(G-45)
7/29/2019 History of Operation Managt
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POINTS TO BE COVERED
What is Operations Management
Historical Summary of Operations Management.
Historical Evolution of Operations
Management
Industrial Revolution Scientific Management
The Human Relations Movement
Decision Models and Management Science
The Influence of Japanese Manufacturers
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Old Sugar Factory
Operations
Operations Management (OM) is
defined as the Design, Operation,
and Improvement of the System
that create & deliver the firm’s
primary products and service.
Like Finance, Marketing, OM is a
functional field of business with
clear line management
responsibilities.
Finance
Operation
Marketing
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Historical Summary of OperationsManagement
Years Concept/Contribution Originator
1776 Division of Labor Adam Smith
1790 Interchangeable parts Eli Whitney1911 Principles of Scientific Management Frederick W. Taylor
1911 Motion study; use of industrial psychology Frank & Lillian Gilbreth
1912 Chart of scheduling activities Henry Gantt
1913 Moving assembly line Henry Ford
1915 Mathematical model for inventory management F.W.Harris
1930 Hawthorne studies on worker motivation Elton Mayo
1935 Statistical Procedures for sampling and Quality controlH.F.Dodge,H.G.Romig,W.shew
hart,L.H.C.Tippett
1940 Operations research application in warfare Operations research groups
1947 Linear Programming George Dantzing
1951 Commercial digital Computers Sperry Univac,IBM
1950s Automation Numerous1960s Extensive development of quantitative tools Numerous
1975 Emphasis on manufacturing strategy W.Skinner
1980s Emphasis on quality, Flexibility, time-based Competition, lean Production.Japanese Manufacturers,Toyota and Taiichi Ohno
1990s Internet, supply chain management Numerous
2000s Application service providers and Outsourcing Numerous
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The Industrial Revolution
Began in 1770 at England .
In 18th Century lot of innovation
taken place in production by
substitution of machine power for human power.
Most significant of these was Steam
Engine.
In 19th Century it Spread to Europeand to the United states.
Using the Spinning Jenny and the
Power Loom revolutionized the
Textile Industry.
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Craft production system were used inthe earlier days
The Major change Development of the
standard Gauging system reduced the
custommade goods.
Factories provided job opportunities for
people from rural area.
Change in Management Theory and
Practice took place resulted in enlightment
and
more systematic approach towards
management.
Craft Production System
The Industrial Revolution
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The Industrial Revolution
The First U.S. Factory
Before American Revolution England
had prohibited items such as Textile
manufacturing machinery or plans from which
such machines can be made. Samuel Slater served
an apprenticeship in an England textile mill, came
to United States with a necessary plans for a mill
store in his phenomenonal memory.
In December 1790, near Providence,
Rhode Island Slater produced the first cotton yard
made automatically in the US. The process he
introduced was recognized and was applied so
rapidly which makes the by the end of the war of 1812 there were 165 mills in Massachusetts,
Connecticut and Rhode Island alone.
The factory system flourished in New
England and the US textile industry.
Samuel Slater
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Scientific Management
Brought widespread changes to the
management of factories.
The move was spearheaded by the
efficiency engineer and inventor
Frederick Winslow Taylor, referred as
Father of Scientific Management.
Believed based on observation,
measurement, analysis and improvement
of work methods in great deal to identify
the best method of doing each job.
Believed that the management should
be responsible for planning, carefully
Selecting and training workers. Frederick Winslow Taylor
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Taylor’s methods emphasized maximizingoutput.
Other pioneers also contributed heavily to
this movement
- Frank Gilbreth developed principles of
motion economy that could be applied to
incredibly small portions of a task.
- Henry Gantt recognized the value of
momentary rewards to motivate workers and
developed a widely used system for scheduling,
called Giant Charts.
-Harrington Emerson applied Taylor’s
ideas to Organization structure and encouraged
the use of experts to improve Organizationalefficiency.
Scientific Management
Frank Gilbreth
Henry Gantt
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Scientific Management
Henry Ford, the Great industrialist,
employed scientific management
techniques in his factories.
Ford’s T model was introduced and it
had trouble keeping up with orders for thecar..
Ford adopted the scientific management
principles exposed by Frederick Winslow
Taylor.
In 1913, Ford introduced the Moving
assembly line.
Henry Ford
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Ford also introduced the mass production to
the automotive industry.
Key concept of mass production was
interchangeable parts. Eli Whitney American
inventor who applied this concept toassembling muskets in late 1770s.
Tremendous decrease in assembly time and
cost.
Ford accomplished this by standardizing thegauges used to measures parts during
production.
Scientific Management
Eli Whitney
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Scientific Management
The another concept used by Ford was the
Division of Labor which Adam Smith wrote
in The wealth of Nations in 1776.
This concept is unlike the Craft production.
Ford increased the production rate at their
factories by using readily available inexpensive
Labor.
As Taylor and Ford were despised by many
workers, because they held the workers in the
low regard to perform like Robots paved way
to the human relations movement.
Adam Smith
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The Human Relations Movement
Scientific management movement-technical
aspects of work design, human
relations movement emphasized the importance
of the human element in job design.
Lillian Gilbreth and Frank Gilbreth worked
focusing on the human factor in work.
The studies in 1920s dealt with worker fatigue.
In 1930s Elton Mayo, conducted studies at the
Hawthorne division of Western Electicrevealed that in addition to the physical and
technical aspects of work, worker motivation
is critical for improving the productivity.
Frank & Lillian Gilbreth
Elton Mayo
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Abraham Maslow, motivational theories in
1940s and Frederick Hertzberg refined
the same in 1950s.
Douglas Mc Gregor added the Theory X and
Theory Y in 1960s – theories represents two
ends of the spectrum of how employees view
work.
In 1970s William Ouchi – Theory Z – which
is the combination of Japanese approach.
The Human Relations Movement
William Ouchi
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The factory movement was accompanied by the development of
several quantitative techniques.
F. W. Harris one of the first model in 1915. A mathematical
model for Inventory Management.
In 1930s three coworkers from Bell Telephone Labs - H.F.Dodge,
H.G. Romig and W.Shewhart-statistical procedures for sampling
and quality control
In 1935, L.H.C. Tippett conducted studies that provided the
groundwork for statistical sampling theory.
Decision Models and Management
Science
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Decision Models and Management
ScienceInitially Quantative models were not widely used in industry.
However the on set of World War II Changed that the war generated tremendous
pressures on manufacturing output, and specialists from many disciplines combined
efforts to achieve advancements in the military and in manufacturing.
It refined quantitative tools for decision making continued resulting in decision models
for forecasting, inventory management, project management, and other areas of
Operations management.
During the 1960s and 1970s management science techniques were highly regarded, in the
1980s they lost some favor. However, the widespread use of personal computers anduser-friendly software in the workplace contributed to a resurgence in the popularity of these
techniques.
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The Influence of Japanese
Manufacturers
Japanese manufacturers developed or refined management practices that increased the productivity of their operations and the quality of their products.
Made them vey competitive, sparking interest in their approaches by companies
outside Japan.
Approach emphasized quality and continual improvement, worker teams andempowerment, and achieving customer satisfaction.
The Japanese can be credited with spawning the “quality revolution” that occurred in
industrialized countries, and with generating widespread interest in time-based
management (just-in-time production).
The influence of the Japanese on US manufacturing and service companies has been
enormous and promises to continue for the foreseeable future.
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MANUFACTURING MANAGEMENT
MAIN FUNCTIONAL AREAS IN BUSINESS
ORGANISATION
MARKETING
PRODUCTION
FINANCE
PERSONNEL
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OBJECTIVES OF MANUFACTURING
MANAGEMENT
Efficiency objective: Maximizing output of goods & services with
minimum resources inputs
Effectiveness objectives: Producing right kind of goods & services that
satisfy customers need.
Quality objective: Ensuring that goods & services produced conform to
pre-set quality specifications.
Lead time objective: Minimizing through put time by reducing delays,
waiting time & idle time.
Capacity utilization objective: Maximizing utilization of manpower,
machine etc.
Cost objective: Minimizing cost of producing goods or rendering a
service.
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SCOPE OF MANUFACTURING
MANAGEMENT
Planning: Planning the conversion process & planning the use of this process.
Product selection & Design
Process selection & planning
Plant location
Plant layout & materials handling
Capacity planning
Forecasting
Production Planning
Organizing: Organizing for conversion
Work study & job design
Controlling: Controlling the conversation process..
Production Control
Inventory Control
Quality Assurance & Control
Maintenance & replacement
Cost reduction & cost control.
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Business challenges of manufacturing in 21 century
Managing uncertainties – business environment has become uncertain.
Understanding customers – customers need are increasing. His need are
required to be translated in the product or the services.
Understanding the globalization of the business – it is a process it cuts
the boundaries of the nation. As information technology plays a vital
role in the business.
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THANK YOU