Evolution &Types of

Production and Operations

Management

Introduction
Conversion 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.

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.

What did take place

Production became fast and low
costly one
Economies of scale
Development of standard gauging
system
Factories grew rapidly
Provided 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

Science
Accompanied 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 Research
During 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 Revolution

Explosive growth of computer and
communication technologies
Easy access to information and the availability of
more information
Advances in software applications such as
Enterprise Resource Planning (ERP) software
Widespread use of email
More and more firms becoming involved in EBusiness using the Internet
Result: faster, better decisions over greater
distances

Types of Production System

Job Production
Batch Production
Continuous production