History of Operation Managt

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)



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



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



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



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.



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 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



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



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.


Frank Gilbreth

Henry Gantt




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



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.


Eli Whitney




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




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



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.


William Ouchi



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



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.



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.



MANUFACTURING MANAGEMENT

MAIN FUNCTIONAL AREAS IN BUSINESS

ORGANISATION

MARKETING

PRODUCTION

FINANCE

PERSONNEL



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.



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.



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.



THANK YOU

Documents

History of Operation Managt