OPERATION EVALUATION

1. By-Dr.Akhil Goyal
HISTORICAL EVOLUTION OF O.M

2. INTRODUCTION
 operations management is the management of
systems or processes that create goods or provide
services.

3. EVOLUTION
Industrial 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.

4. 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

5. 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.

6. Cont….
 Henry Ford practically adopted the scientific management
principles for T
aylor.
 Introduced the moving assembly line, which affected
many industries.
to
 Introduced mass production to the automotive industry.

8.  The concept of “Interchangeable Parts” was applied by Eli
Whitney, an American inventor.
 The basis for interchangeable
parts.
parts was to standardize
 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.

9.  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.

10. PIONEERS WHO CONTRIBUTED
- was an industrial engineer
 Frank Gilbreth
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.

11. Henry Gantt - recognized the value of nonmonetary
rewards to motivate workers, and developed a
widely used system for scheduling, called Gantt
charts.

12. - applied Taylor’s ideas to
 Harrington Emerson
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.

13.  Henry Ford - the great industrialist, employed
scientific management techniques in his factories.

14. DECISION MODELS AND MANAGEMENT
SCIENCE
Accompanied by the development of several
quantitative techniques.
 F
.W. Harris developed a mathematical model
inventory order size in 1915.
 H.F. Dodge, H.G. Romig and W. Shewhart
for
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.

15.  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

16. 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.

17. 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.
 T
echnology refers to the application of scientific
discoveries to the development and improvement of
goods and services.

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