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• Sohaib Jamil

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Evolution of Operation Management Operation management The process of continuous improving the system processes undertaken to deliver and manufacture firm’s primary product and services.

Industrial

Steam engine

1769 James Watt

Division of labor

1776 Adam Smith

Interchangeable parts

1790 Eli Whitney

Revolution

Division of labor (Adam Smith 1776 and Charles Babbage 1852)

The world has observed Adam Smith as one of the world’s best Scottish economist – who was the very first person to draw some attention towards the scientific operations management. He was the one for advocating the importance of division of labor in his book ‘The Wealth of Nations’ The English mathematician Charles Babbage was the first one to follow the concept advocated by Adam Smith. He advocated the concept of specialization of tasks as the next stage (logically related) to the division of labor. Babbage considered specialization in tasks as a very important advantage of the division of labor.

Standardized parts (Whitney 1800) 1794 - built first cotton gin to separate cotton seeds from cotton fibers. 1799 - began mass production of muskets * � introduced concept of standard interchangeable parts to allow the use of less skilled labour to produce muskets. � Development of the machine tool industry - metal tools and machines now possible (late 1700's). Principles of scientific management Scientific Management

1911 Frederick W. Taylor Frank and Lillian Gilbreth

Time and motion studies

1911

Activity scheduling chart

1912 Henry Gantt

Moving assembly line

1913 Henry Ford

Scientific Management (Taylor 1881) F.W. Taylor is known as the father of scientific management – he was the one who explained the concept of functional management.

Motion study (Frank and Lillian Gilbreth 1911 Frank B. Gilbreth is known as the founder father of work study. He laid emphasis on explaining the importance of the correlation between the physical effort and the operators output through his two books ‘Motion Study’ (1911) and ‘Applied Motion Study’ (1917). He was the one to devise a very famous method for the classification of motions into 17 basic divisions, referred to as Therbligs by him.

Coordinated assembly line (Ford, Sorenson/Avery 1913) Gantt charts (Gantt 1916)

Hawthorne studies Human Relations

1930

Elton Mayo

1940s Abraham Maslow Motivation theories

1950s

Frederick Herzberg

1960s

Douglas McGregor

Linear programming

1947

George Dantzig

Digital computer

1951

Remington Rand

1950s

Operations research groups

Simulation, waiting Operations Research

line theory, decision theory, PERT/CPM MRP, EDI, EFT, CIM

Quality

1960s, 1970s

Taiichi Ohno (Toyota)

JIT (just-in-time)

1970s

TQM (total quality

W. Edwards 1980s Deming, Joseph Juran

management)

Revolution Strategy and operations Business process reengineering

1990s

1990s

Wickham Skinner, Robert Hayes Michael Hammer, James Champy

Joseph Orlicky, IBM and others

Globalization

Internet Revolution

WTO, European Union, and other trade agreements

1990s

Numerous countries

2000s

and companies

Internet, WWW, ERP, supply chain management

1990s

ARPANET, Tim Berners-Lee SAP, i2 Technologies, ORACLE, PeopleSoft

E-commerce

2000s

Amazon, Yahoo, eBay, and others

Pre-Industrial Revolution 1. Adam Smith (1776) The world has observed Adam Smith as one of the world’s best Scottish economist – who was the very first person to draw some attention towards the scientific operations management. He was the one for advocating the importance of division of labor in his book ‘The Wealth of Nations’ �

2. Charles Babbage (1883) The English mathematician Charles Babbage was the first one to follow the concept advocated by Adam Smith. He advocated the concept of specialization of tasks as the next stage (logically related) to the division of labor. Babbage considered specialization in tasks as a very important advantage of the division of labor. Post-Industrial Revolution

Eli Whitney 1794 - built first cotton gin to separate cotton seeds from cotton fibers. 1799 - began mass production of muskets * � introduced concept of standard interchangeable parts to allow the use of less skilled labour to produce muskets. � Development of the machine tool industry - metal tools and machines now possible (late 1700's).

3. F.W. Taylor (1859 to 1915) F.W. Taylor is known as the father of scientific management – he was the one who explained the concept of functional management.

4. Frank B. Gilbreth (1917) Frank B. Gilbreth is known as the founder father of work study. He laid emphasis on explaining the importance of the correlation between the physical effort and the operators output through his two books ‘Motion Study’ (1911) and ‘Applied Motion Study’ (1917). He was the one to devise a very famous method for the classification of motions into 17 basic divisions, referred to as Therbligs by him. 5. Henry Ford ( 1913 ) The concept of mass production and organized work stations into a conveyorised assembly line was given to the world by Henry ford. 6. Henry Gantt ( 1913 ) His main contribution is the “Gantt chart “– which is a very important practical tool even in today’s world, in order to chart the production schedules and also the machine load schedules. 7. F.W Harris ( 1914 ) The first economic lot size (EOQ) model was developed by Harris – F.W Raymond also made a very important contribution in this regard. 8. Walter Shewhart ( 1924 ) In 1924 Walter was the one to introduce the concept of statistical quality control. 9. F.H Dodge ( 1931 ) Developed the concept of sampling inspection and published statistical sampling tables. 10. L.H.C Tippett ( 1937 ) The phenomenon of work sampling was developed by Tippett in order to know the manpower and machine utilization and also for setting performance standards.

Quality control (Shewhart 1924; Deming 1950) Computer (Atanasoff 1938) CPM/PERT (DuPont 1957) Material requirements planning (Orlicky1960) Computer aided design (CAD 1970) Flexible manufacturing system (FMS 1975) Baldrige Quality Awards (1980) Computer integrated manufacturing (1990) Globalization(1992) Internet (1995)

Applications Service providers and outsourcing ( 2000s)