HISTORICAL EVOLUTION OF OM

INTRODUCTION operations management is the management

of systems or processes that create goods or provide services.

EVOLUTIONIndustrial 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 Taylor’s 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

THE INFLUENCE OF JAPANESE MANUFACTURERS Japanese manufactures developed

management practices that increased the productivity and quality.

Companies which were outside Japan was interested in their approaches.

The influence of Japanese companies is continuing for the foreseeable future.

OPERATIONS TODAY… Advances in information technology and

global competition have had a major influence.

E – business is receiving increased attention from business owners and managers in developing strategies, planning and decision making.

Technology refers to the application of scientific discoveries to the development and improvement of goods and services.

Operations management is concerned with product and service technology, process technology and information technology.

Created by;

Shakthi Fernando

Sandun Ulpathakumbura

BSc. Financial management(Special)-Undergraduates Sabaragamuwa University of Sri Lanka

Thank You…