Historical Evolution of OM

Evolution &Types of Production and Operations Management IntroductionConversion of inputs into outputs using physical resources and process to provide the desired utility to customers while meeting the other organizational objectives of effectiveness, efficiency & adaptability.

EvolutionIndustrial RevolutionBegan 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.

What did take placeProduction became fast and low costly oneEconomies of scaleDevelopment of standard gauging systemFactories grew rapidlyProvided countless jobs

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.Cont.Henry Ford practically adopted the scientific management principles for Taylor.Introduced the moving assembly line, which affected to many industries.Introduced mass production to the automotive industry.

The concept of Interchangeable Parts was applied by Eli Whitney, an American inventor.The basis for interchangeable parts was to standardize parts. 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.

Concept of division of labor, which Adam Smith wrote about in the wealth of Nations (1776) was used by Ford.An operation is divided up in to a series of many small tasks, individual workers are assigned to one of those tasks.Pioneers who contributed Frank Gilbreth - was an industrial engineer who is often referred to as the father of motion study. He developed principles of motion economy that could be applied to incredibly small portions of a task.

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

Harrington Emerson - applied Taylors ideas to 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.

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

Decision Models and Management ScienceAccompanied by the development of several quantitative techniques.F.W. Harris developed a mathematical model for inventory order size in 1915.H.F. Dodge, H.G. Romig and W. Shewhart developed statistical procedures for sampling and quality control in 1930.L.H.C. Tippott conducted studies that provided the groundwork for statistical sampling theory In 1935.

Those qualitative models were widely used in world war 2.These decision models were also used for forecasting, inventory management, project management and other areas of operations management

Operations ResearchDuring World War II, enormous quantities of resources (personnel, supplies, equipment, ) had to be deployed.Military operations research (OR) teams were formed to deal with the complexity of the deployment.OR helps make decisions when problems are complex and wrong decisions are costly.The Computer RevolutionExplosive growth of computer and communication technologiesEasy access to information and the availability of more informationAdvances in software applications such as Enterprise Resource Planning (ERP) softwareWidespread use of emailMore and more firms becoming involved in E-Business using the InternetResult: faster, better decisions over greater distances

Types of Production System Job ProductionBatch ProductionContinuous production