PRESENTED TO,Dr. Mini SekheranPRESENTED BY, Swarup saha
Ancient times and before 1700 the production system was a “ Cottege system”. In 1700’s the Industrial Revolution begins. The human power was replaced by the machine power and the “Factory System” developed. James Watt (1764) invented steam engine- gathering of the workers became easy.
Adam Smith(1776) published “ The Wealth of Nations” touted the economic benefits of “Division of Labor”. In 1790, Eli Whitney invented the concept of “Interchangeable parts”. By the mid 1800’s the old “ Cottage System” changed as the “Factory System”.
The post-civil war period set the stage for the great expansion of the production capacity. The abolition of slave labor, exodus of farm laborers to the cities and the massive influx of the immigrants during 1865-1900 ease the work of production. The “ Joint Stock Company” prevails- the capitalist got seperated from employer.
The need to develop the great production machine to satisfy the massive market of that day gave birth a new philosophy called “Scientific Management”. Frederick Winslow Taylor, known as the “Father of Scientific Management” invented new scientific procedure to improve the production efficiency.
Later he invented the “ Shop System”. The implementation of this system increased the efficiency of the workers. Henry Ford(1863- 1947) popularized the concept of “Assembly Lines” by implementing it in his own company. He published the book “ Today and Tomorrow” in 1926.
Frank B. Gilbreth(1868-1934) contrebuted Motion Study, Construction contracting, consulting. Lilian M. Gilbreth(1878-1973) contrebuted Fatigue study, Human factor at work. Henry L. Gantt(1861-1919) contributed Gantt charts, Incentive pay system. Carl G. Barth(1860-1939) contributed Mathematical analysis, Slide rule.
Harrington Emerson(1885-1931) contributed Principals of efficiency , Methods of control. Morris L. Cooke(1872-1960) contributed scientific management application to education and government.
During 1800 and 1900’s the legacy of rigid control prevailed over the company. Between World War-1 and World War-2 , a philosophy emerged in United States that the workers also needs to be treated with dignity. The “Human Relation Movement” began by Elton Mayo, F. J. Roethlisberger, T. N. Whitehead at Hawthorne, Illinois.
The “Hawthorne Studies” show that psychologiacal and sociological factors affected not only human motivation and attitude but production as well. The work of the behaviouralists A. Maslow, Frederick Herzberg, Douglas McGregor, Peter Druckker forced the employers of the companies to think about the human relations in company.
European campaign at the time of world war- 2 used enormous quantities of manpower. Because of the chaos situation the companies experienced more complexed situation than the previous times . As a result of the need for the proper operational strategy the concept of “Operatio Research” arrive.
The mushroomed growth of the services in the U.S. economy made the service revolution. Different offices mushroomed in U.S.A. More than two third of the U.S. workforce is employed in services. More than two third of the GDP is produced by services.
The computer revolution helps in the Enterprise Resource Planning(ERP). Softwares like SAP, Peoplesoft, Oracle helps the managers to get real time news about the different section of the company. The improvement in the communication system- e-mail, internet technology also influenced the operations management.