1. Amity Global Business School
PRESENTATION ON:
HISTORY OF PRODUCTION AND
OPERATIONS MANAGEMENT
Presented by:
Prashant Ranka
B.B.A VI sem.

2. Production management?
The job of coordinating and controlling the activities
required to make a product, typically involving
effective
control
of
scheduling,
cost,
performance, quality, and waste requirement.

3. Operations management?
Operations management is an area of management
concerned with overseeing, designing, and
controlling the process of production and
redesigning business operations in the production of
goods or services.

4. Twin definition
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.

5. Historical evolution
 1776 -Specialization of labor in manufacturing -Adam Smith
 1799 -Interchangeable parts, cost accounting -Eli Viihitney and
others
 1832 -Division of labor by skill; assignment of jobs by skill; basics
of time study -Charles Babbage
 1900- Scientific management time study and work study
developed; dividing planning and doing of work -Frederick W.
Taylor
 1900- Motion of study of jobs -Frank B. Gilbreth

6. Historical evolution(cont..)
 1901- Scheduling techniques for employees, machines jobs in
manufacturing -Henry L. Gantt
 1915 -Economic lot sizes for inventory control -F.W. Harris
 1927 -Human relations; the Hawthorne studies -Elton Mayo
 1931 -Statistical inference applied to product quality: quality
control charts -W.A. Shewart
 1935 -Statistical sampling applied to quality control;
inspection sampling plans -H.F. Dodge &H.G. Roming

7. Historical evolution(cont..)
 1940- Operations research applications in World War ll -
P.M. Blacker and others.
 1946- Digital computer -John Mauchlly and J.P. Eckert
 1947-Linear programming -GB. Dantzig, Williams &
others
 1950- Mathematical programming, on-Iinear and stochastic
processes –A. Charnes, W.W. Cooper & others
 1951- Commercial digital computer; large s-cale
computations available. -Sperry Univac

8. Historical evolution(cont..)
 1960- Organizational behavior; continued study of people
at work -L. Cummings, L. Porter
 1970- Integrating operations into overall strategy and
policy. Computer applications to manufacturing.
Scheduling and control. Material requirement planning
(MRP)-W. Skinner J. Orlicky and G. Wright
 1980-Quality and productivity applications from Japan
robotics. CAD-CAM -W.E. Deming and J. Juran

9. Specialization of labour in manufacturing
 The specialization theory was devised by Adam Smith.
 The specialization theory is better known as division of
labour.
 The theory was created for specialized knowledge of a
particular trade or task, also known as self interest.
 Division of labour involved in the production of a
particular product leads to increased productivity

10. Specialization of labour(cont..)
 Today specialization can be seen in companies and
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businesses.
Kellogg specializes in cereals.
Coca-Cola specializes in soft drinks.
Hershey’s specializes in candy.
Apple specializes technology.

11. Motion of study of jobs
 Motion of study of jobs was devised by Frank B.
Gilbreth
 Motion study involves the analysis of the basic
hand, arm, and body movements of workers as they
perform work.

12. Human relations
 Human relations theory is characterized by a shift
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in emphasis from TASK to WORKER
Need for attention
Social interaction
Individual achievement
Intended as a move away from the “organization as
machine” metaphor
Management recognizes employees as humans with
needs rather than cogs of a machine

13. The Hawthorne studies
 “The Hawthorne Studies were conducted from 1927-1932 at
the Western Electric Hawthorne Works in Chicago, where
Harvard Business School Professor Elton Mayo examined
productivity and work conditions.”
 “Mayo wanted to find out what effect fatigue and monotony
had on job productivity and how to control them through
such variables as rest breaks, work hours, temperatures and
humidity.”

14. Historical Milestones in OM
 The Industrial Revolution
 Post-Civil War Period
 Scientific Management
 Operations Research
 The Service Revolution
 The Computer Revolution

15. The Industrial Revolution
 The industrial revolution developed in England in
the 1700s.
 The steam engine, invented by James Watt in 1764,
largely replaced human and water power for
factories.
 Adam Smith’s The Wealth of Nations in 1776 touted
the economic benefits of the specialization of labor.
 Thus the late-1700s factories had not only machine
power but also ways of planning and controlling the
tasks of workers

16. The Industrial Revolution(cont..)
 The industrial revolution spread from England to
other European countries and to the United Sates.
 In 1790 an American, Eli Whitney, developed the
concept of interchangeable parts.
 The first great industry in the US was the textile
industry.
 In the 1800s the development of the gasoline engine
and electricity further advanced the revolution.

17. Post-Civil War Period
 During the post-Civil War period great expansion of
production capacity occurred.
 By post-Civil War the following developments set the
stage for the great production explosion of the 20th
century:
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increased capital and production capacity
the expanded urban workforce
new Western US markets
an effective national transportation system

18. Scientific Management
 Frederick Taylor is known as the father of scientific
management. His system employed these steps:
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Each worker’s skill, strength, and learning ability were
determined.
Stopwatch studies were conducted to precisely set standard
output per worker on each task.
Material specifications, work methods, and routing sequences
were used to organize the shop.
Supervisors were carefully selected and trained.
Incentive pay systems were initiated.

19. 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.
 After the war, operations researchers found their way
back to universities, industry, government, and
consulting firms.
 OR helps operations managers make decisions when
problems are complex and wrong decisions are costly.

20. The Service Revolution
 The creation of services organizations accelerated
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sharply after World War II.
Today, more than two-thirds of the US workforce is
employed in services.
About two-thirds of the US GDP is from services.
There is a huge trade surplus in services.
Investment per office worker now exceeds the
investment per factory worker.
Thus there is a growing need for service operations
management.

21. The Computer Revolution
 Explosive growth of computer and communication
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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

22. Thank You