Operation management History

1

OPERATION MANAGEMENT

HISTORYBE Textile Engineer, ME Textile Engineer, M.Phil Quality Management TANVEER AHMED

2BE Textile Engineer, ME Textile Engineer, M.Phil Quality Management TANVEER AHMED

3

DEVELOPMENT OF MAJOR MANAGEMENT THEORIES

HistoricalBackground Scientific

ManagementHuman Relation

MovementQuality Control

Management Theories

IndustrialRevolution

Adam Smith

TQM

BE Textile Engineer, ME Textile Engineer, M.Phil Quality

Management TANVEER AHMED

BE Textile Engineer, ME Textile Engineer, M.Phil Quality Management TANVEER AHMED

4

Adam Smithdivision of labour - breakdown of jobs into narrow and repetitive tasks increased productivity

Born 5 June 1723 OSKirkcaldy, Fife, Scotland

Died 17 July 1790 (aged 67)Edinburgh, Scotland

Nationality British (Scottish)

Notable work(s) The Wealth of Nations

Region Western philosophy

School Classical economics

Main interests Political philosophy, ethics,economics

Notable ideas Classical economics,modern free market,division of labour,the "invisible hand"

http://en.wikipedia.org/wiki/Old_Style

http://en.wikipedia.org/wiki/Kirkcaldy

http://en.wikipedia.org/wiki/Fife

http://en.wikipedia.org/wiki/Edinburgh

http://en.wikipedia.org/wiki/Kingdom_of_Great_Britain

http://en.wikipedia.org/wiki/Scotland

http://en.wikipedia.org/wiki/The_Wealth_of_Nations

http://en.wikipedia.org/wiki/The_Wealth_of_Nations

http://en.wikipedia.org/wiki/Western_philosophy

http://en.wikipedia.org/wiki/Western_philosophy

http://en.wikipedia.org/wiki/List_of_schools_of_philosophy

http://en.wikipedia.org/wiki/Classical_economics


http://en.wikipedia.org/wiki/Political_philosophy

http://en.wikipedia.org/wiki/Political_philosophy

http://en.wikipedia.org/wiki/Ethics

http://en.wikipedia.org/wiki/Economics



http://en.wikipedia.org/wiki/Free_market

http://en.wikipedia.org/wiki/Division_of_labour

http://en.wikipedia.org/wiki/Division_of_labour

http://en.wikipedia.org/wiki/Invisible_hand


5

Industrial Revolution(1760 – 1840)

The Transition to new manufacturing

process


6


7

Transportation Revolution

Robert Fulton (American)

•Steamboat (1807)•Sped water transportation

Thomas Telford and John McAdam

(British)

•Macadamized roads (1810-1830)•Improved roads

George Stephenson

(English)

•Locomotive (1825)•Fast land transport of people and goods


8

TRANSPORTATION


9

Agricultural MachineryEli Whitney – Cotton gin (1793) – Increased cotton production

Cyrus McCormick – Mechanical reaper (1834) – Increased wheat production

Other important inventions: Horse-drawn hay rake, threshing machine, steel plow

Steam engines, gasoline and diesel engines, and electric motors were added to farm machinery as these types of engines were invented.The Industrial and Agricultural Revolutions complemented one another. Developments and needs in one created developments and needs in the other.


10


11

The spinning wheel was the first invention, but it was very slow.

Threads were spun one at a time, by hand.

The spinning jenny could spin up to eight thread at time. The spinning jenny was much faster than the spinning wheel.

Water Jet Loom

Power Mule

Textiles


12

Frederick Taylor

Henry Gannt Frank and Lillian

Gilbreth Luther Gulick III Max Weber Henri Fayol

The process of approaching various aspects of organizations in a scientific manner using scientific tools such as research, management, and analysis.

SCIENTIFIC MANAGEMENT 1910-1935


13

Scientific Management Theorists

PURISTSFrederick Taylor

Henry GanntFrank and Lillian

Gilbreth

TRANSITIONALISTS

Luther GulickMax WeberHenry Fayol


14

Frederick Winslow Taylor (1856- 1915)

F. W. Taylor, was an American mechanical engineer who sought to improve industrial efficiency.

He is regarded as the father of scientific management, and was one of the first management consultants.

He is sometimes called as “Father of Scientific Management”.

Studied most efficient worker Used stop-watch timing to measure each production

step Eliminated any unnecessary movements Designed standardized instruction cards for

employees Employees paid for meeting the established rate of

production


15

Henry Ford

Henry Ford, who introduced mass production of cars, adopted Taylor’s methods

but took them further with the use of machines to replace some of the tasks performed by workers.

Most famous of these was the introduction of a moving conveyor belt in his factories which provided an extension to Taylor’s methods.


16

Henry Gannt Worked with Taylor at Midvale Steel Company Specialized in incentive wage plans Introduced a differential piece rate system – Task

work with a bonus Permitted workers to improve the production system Introduced a bonus for foremen based on the

number of their workers who earned bonus Developed Gantt Chart


17

Frank and Lillian Gilbreth- Associates of F.W.Taylor, their work was intertwined with his and their motion studies predated Taylor’s system first published in 1903.- Developed the laws of human motion from which evolved the principles of motion economy

Pioneers in the field of motion studies and provided the foundation for job simplification, meaningful work, and incentive wage plans.

Analyzed each motion of work for wasted efforts in an attempt to reduce each task to the smallest amount of expended time and energy.

Professed: effective training, effective work methods, improved work environment, positive psychological perspective.

Made the connection between standardization and efficiency Believed that time could not be separated from motion; the two were intertwined.


18

Frank and Lillian Gilbreth Systematically examined how repetitive

tasks were performed These repetitive tasks were broken down

into Therbligs, which are systems for analyzing the motions involved in performing a task. This consisted of identification of individual motions, as well as moments of delay in the process, designed to find unnecessary or inefficient motions and to utilize or eliminate even split seconds of wasted time.

Invented and refined Therbligs roughly between 1908 and 1924. Each Therblig had a mnemonic symbol and standard color for charting


19

Luther Hasley Gulick III

Seven Administrative Procedures - Gulick

Planning Organizing Staffing Directing Coordinating Reporting Budgeting

GILBRETHS

- Devoted to Efficiency

- Analyzed Motion and Movements of Workers

- Created Therblig System

- Their studies were part of the manufacturing revolution in the U.S.

GULICK

- Applied Scientific Method to Management“Dean of American Public Administration”

- Division of Labor and Integrated Organization

- Applied Scientific Approach to Personnel Management- Defined work in terms of

positions needed to carry out a process, rather than the people doing the work


20

Weberian Model of Bureaucracy Division of Labor

and Specialization Impersonal

Orientation Hierarchy of

Authority Rules and

Regulations Career Orientation

Max Weber Henri Fayol (1841-1925)

Fayol’s Five Functions of Management1. Forecasting and Planning2. Organization3. Command4. Coordinate5. Control


21

Transitional Theorists

Marry Parker Follet (1868 – 1933), Chester l.Barnard (1886 – 1961) and Lyndall F.Urwick ( 1891 – 1983) Represent traditional Human Relation

theorists.

Situated b/w classical management and Behavioral approaches to the Employment relationship.

All these writers emphasis on the Importance of Social Factors at work, Including work team, Leadership Style and Informal Systems in organizations.


22

Behavioral School (Industrial Psychology)

This approach attempts to apply psychological research to the Employers vs employee relationship

Hugo Munsterberg ( 1863-1916) applied Personality research to employee

selection, Work design and Training program

Walter Dill Scott and James Mckeen Cattell Developed Personality Tests for the recruitment of sales and managerial Staff

Elton Mayo (1880-1949) initiated human relations (Hawthorn Study – Hawthorn works US Electric Company)Study of the relationship b/w satisfaction of employee needs and productivity, Concluded that

employees reacted positively to management concern (effective communication and employee participation in mgt policies and procedure)Drive from his work ( QWL, Abraham Maslow, Fredrick Herzberg)


23

Management Science:

(Quantitative School)

This approach measuring the Outcomes of Jobs and Work system

Application include Production Schedule Productivity strategies Consequent

management Planning Control Mechanisms

Integrated Theory: (Systems Theory)

• The System approach sees organization as • Unified system with specific inputs and

outputs.• Important Features include

• Interaction b/w Jobs• Technology• Environment• Control mechanism

• HR Aspects include communication between the • Various subsystem• Coordination with Input /output• Effective interaction b/w employee and

technological systems


24

Contingency Theory

This theory developed by the writers such as Tom burns Henry Mintzberg Heshey and Blanchard

Contends that every organization and every environment is different and therefore requires a different approach Scientific management Organization theory Behavioral science or management

science may or may NOT Apply according to business circumstances.

Excellence Theory

• Popular in 1980s is based upon• Research studies of Tom

Peters and Bob Waterman.• These researchers argue that

productivity and profitability are the • Direct result of excellent

employment management• Which is largely based on

Employee centered approach• Due to decline of identified

excellent companies • Research has been

discredited


25

Total Quality Management (TQM) Proposed by Dr.W.Edward Deming,

Total quality management, effectively applied in Japanese and US industry after the 2nd world

war

Deming advocate the following Principles of Management Constancy/loyalty of Purpose toward

product/service improvement Maintain ongoing improvement / cost

reduction Adopt new philosophy Adopt Meaningful measure of quality Adopt modern training method Setup education and training programs Statistically validate quality

• drive out fear

• Remove barriers

• Breakdown organizational

barriers through team work

• Eliminate arbitrary numerical

goals / visible figures

• Eliminate work standard and

numerical quotas

TQM has been applied in some organizations to their competitive strategies.

However criticized due to procedures driven


26

Operation management History

Education

Transcript of Operation management History