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Om Evolution of Operations Management

Operations management is the process of controlling and directing the production and delivery of goods. While production has occurred for millennia, operations management emerged as a formal practice in the 20th century. Key developments included Adam Smith's theories of the division of labor in the 18th century, the scientific management techniques of Frederick Taylor and Henry Ford's assembly line in the early 1900s, increased use of data analysis and computers after World War 2, and modern quality management systems.

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Brein Symon Diala
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652 views7 pages

Om Evolution of Operations Management

Operations management is the process of controlling and directing the production and delivery of goods. While production has occurred for millennia, operations management emerged as a formal practice in the 20th century. Key developments included Adam Smith's theories of the division of labor in the 18th century, the scientific management techniques of Frederick Taylor and Henry Ford's assembly line in the early 1900s, increased use of data analysis and computers after World War 2, and modern quality management systems.

Uploaded by

Brein Symon Diala
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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WHAT IS OPERATIONS MANAGEMENT?

• Operations Management is the act of controlling


and directing the design, production and delivery
of products. Although people have been
producing and selling products since the very
beginning of civilization, the implementation of
operations management is a relatively new
phenomenon. Operations management came to
prominence in the 20th century, but its roots can
be traced back to the 18th and 19th centuries.
EVOLUTION OF OPERATIONS
MANAGEMENT
Pre-Industrial Revolution
• One of the first people to address the issues of
operations management was the Scottish philosopher --
and father of modern economics -- Adam Smith. In
1776 Smith wrote "The Wealth of Nations," in which he
described the division of labor. According to Smith, if
workers divided their tasks, then they could produce
their products more efficiently than if the same number
of workers each built products from start to finish. This
concept would later be used by Henry Ford with the
introduction of the assembly line.
Post-Industrial Revolution
• During the industrial revolution, machinery allowed factories
to grow in capacity and greatly increased their output.
Despite this growth, there was considerable inefficiency in
production. Two individuals helped to overcome these
inefficiencies in the early 20th century: Frederick Winslow
Taylor and Ford. Taylor developed a scientific approach for
operations management, collecting data about production,
analyzing this data and using it to make improvements to
operations. Ford increased efficiency in production by
introducing assembly line production and improved the
supply chain through just-in-time delivery.
Post-World War II
• Technological developments during the second
world war created new possibilities for managers
looking to improve their operations. Specifically, the
development of computational technology allowed
for a greater degree of data to be analyzed by firms.
The abilities of computers have continued to
increase exponentially, allowing for a high degree of
data analysis and communication. Modern
producers are now able to track their inventory from
raw materials, through production and delivery.
Modern Day
• Quality management systems are popular in today's
operations management. Quality management is a
system for mapping, improving and monitoring
operations processes. A variety of quality management
systems are in use among top firms, the most notable
systems being the ISO systems and Six Sigma. These
systems aim to increase the efficiency of business
processes. Although operations management has
typically dealt with the manufacturing process, the
growth of the service industry has created a field of
service operations management.

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