History of Management Thought Daniel A. Wren Chapter 21

1. people have sought to br ing or der fr om chaos by sear ching for
inter r elationship betw een obser ved events and activities
Intr oduction
attempts to r ationalize and systematize the w or kplace and to
measur e and contr ol or ganizational performance
using infor mation to make decisions
statement of hypothesis
the scientific method denotes a r ational appr oach to
pr oblem solving thr ough
accumulation of data
identification of alter natives
testing, ver ification, and selection of a path of action based on fact
Ar istotle
foundation for scientific method
Rene Descar tes
pr oponents
Isaac New ton
the use of mathematics to descr ibe w or ld movement
calculus & law s of motion and gr avitation
Char les Babbage
scientific appr oach to the solution of factor y pr oblems
Taylor , Bar th, Gantt, the Gilbr eths, Emerson
scientific management
r ecognition and acceptance to the notion of science in management
WW I
how to impr ove the pr oduction as par t of the firm's
thr oughput r ather than as vital ingr edient of the
gener al management of the firm
WW II
union of manager s, gover nment official, and scientist
attempt to br ing or der and r ationality to the global logistics of war
application of scientific know ledge and methods to the
study of complex pr oblems w ith the state pur pose of
der iving a quantitative basis for the decisions that
w ould accomplish an or ganization's objective
definition ofOper ation Resear ch
r adar system
anti air cr aft gunnery
Br itishfor med the fir st oper ation r esearch team
anti submar ine w arfare
bombing of Ger many
civilian defense
Blackett's cir cus
Oper ation Resear ch
Lenny Mar tini - 29006014
Par t IV The Moder n Er a- Ch. 2 1
infor mation systems for management car r ied the potential to
enhance technical, functional, and manager ial capabilities in
seeking a competitive edge
methods of OR w er e applicable to pr oblems of a
nonmilitar y nature
US industr ial or ganizations and pr ivate consulting
The Oper ation Resear ch Society of Amer ica
sear ch for or der thr ough science and systems in management
to identify, ex tend, and unify scientific know ledge that
contr ibutes to the under standing of the pr actice of
management
str uctur ed kinds of pr oblems and decisions
the application of OR came ver y natur ally to pr oduction management
oper ation r esear ch pr ovide br oader view of operations management
development of computer benefit decision making pr ocess
var ious specialist w er e br ought together under one tent
to solve the complex pr oblem of the w ar and defens e
effor t
decisions could be r ationally devised
stocking the pr oper level of inventory
Summar y
scheduling and contr olling pr oduction
pr oblems in pr oduction management solved by OR
manufactur ing in economical batches
contr olling quality
1. goal or pur pose,r eason for its ex istence
2. inflow or input of mater ials, equipment, an d
human effor t into the or ganization
3. pr ocess to tr ansfor m input into some useful
pr oducts to meet the goal
acquir ing capital
scientific management
oper ation r esearch
4. need to measur e, contr ol, and acquir e the
necessar y infor mation about per formances
not so much sear ch for a science of management
as a str iving for the use of science in management
the tools of mathematics and science w er e enlisted to help solve the age-o ld
management pr oblem of the optimum allocation of scar ce r esour ce tow ard a given goal
similar ities among differ ent disciplines could enable a
gener al systems model to be developmed
management education w as to move beyond the idea of factor y/industr ial/ production
management into an er a that blended the old & the new into pr oduction/oper ations management
Ludw ig von Ber talanffy (1901-1972)
the new language of pr oduction/oper ations management w as heavily or iented tow ar d statistics and mathematics
1. the study of a w hole, or or ganism
2. the tendency of or ganism to str ive for a steady state or equilibrium
"optimal"
inver ted fr om scientific management
moder n management science
possible to develop a systematic, theor etica l
fr amew or k for descr ibing r elationships in the real world
objective w as to sear ch par allelisms in disciplines that
w ould give r ise to a gener al theor etical framework
"one best w ay"
keyw ords
common char acter istics of a system
similar char acter istics in all sciences
Gener al Systems Theory
3. the openness of all system, or ganism affects and is
affected by its envir onment
model
cyber netics
all system could be designed to contr ol themselves thr oug h a
communication loop, w hich fed infor mation back to th e
or ganism, thus allow ing it to adjust to its environment
Nor ber t Wiener (1894-1964)
Techniques for
quantifying variables
and relationship
or ganization could lear n and adapt for futur e situations
w ith some technological help, pr ovide a means for
communication and contr ol
mathematical calculations used a slide r ule
Henr y R. Tow ne
age
mechanical adding machine
pr ogr ammed mechanical device
Scientific method
of problem solving
Blaise Pascal
body of know ledge
Char les Babbage
statistics and pr obability theory
Pr oduction Management in Tr ansition
br eak the Enigma
defied all tr aditional cr yptanalysis
linear pr ogr amming
Alan Tur ing (1938)
developed electr ical machine to handle these calculations
developed punch car d
Tabulating Machine Company
Mar k I for IBM
queuing theory
Science and Systems in
M anagement
Her man Holler ith (1903)
techniques
game theory
development of computer
electr omechanical computing machine
simulation
ENIAC
The Quest for Science in Managemen t
Ecker t-Mauchly
electr onic data pr ocessing
changes in har dw ar e and software
Miller & Star r (1960)
Du Pont (1956-57)
attempts to br ing OR into a conceptual fr amework
advance technology of vacuum tubes, tr ansistor , miniaturized
chips led to development of micr ocomputer
US Navy
advance in data compr ession technologies, silicon chips, fiber
optics led a dr amatic impact on the telecommunications industry
Inter net pr ovide a w or ldw ide network
the technology alone w as not enough, the vision to use it in ne w
w ays w as needed as w ell
ex ecutive's decision making r ole in optimizing cor porate goals
Cr itical Path Method (CPM)
Pr ogr am Evaluation and Review Technique (PERT)
application of the scientific method and the use of mathematics in some types of manager ial
pr oblems could pr ovide better infor mation for decision makers
satellites enable w ir eless messages acr oss geogr aphic boundaries
w or r ied that to much emphasis on pr oblem solving and not enough on pr oblem finding
hallmar k
Fr om the Computer Age to th e
Infor mation Age
inter changeable parts
Andr ew Car negie
JoAnne Yates (1989)
quality the bedr ock of successes
inspection for emen to ensur e quality
Taylor
incr ease in quantity w ill pr obably be accompanied by a falling of quality
impor tance of quality
the computer age w as time of data pr ocessing, but as technology
advanced, an infor mation age become possible
Hayes and Aber nathy (1980)
data could be distr ibuted thr ough netw or ks, inter active systems
designed to access database as decision suppor t system
US industr y had for gotten how to compete, pr oduce
efficiently, keep pr ices dow n, and maintain pr oduct quality
statistical analysis to identify var iations in performance
developed by lear ning fr om new and ex isting know ledge from
engineer ing and science
Resear ch & Development (R&D)
test the impact of changes on var iables
John V. Atanasoff (1930)
fir st computer s, monster mainframes
technologies w er e adopted, not necessar ily w hen they were
invented, but w hen a shift or advance in manager ial theory led
manager s to see an application for them
Shew har t (1920s)
contr ol char t to define the acceptable limits of r andom var iation
pioneer ed statistical quality control
technical
finding and applying the appr opr iate computer hardware and
softw ar e that w ill position the fir m in a str onger competitive position
Japanese needed pr oduction skills r ather than human r elations skill
ex per t on statistical sampling
acquir e, tr ansfor m, and mar ket its product
pr oduction, mar keting, distr ibution and human resources
under standing competitive strategies
for capital acquisition
quantitative models
Systems and Infor mation
built an electr onic digital computer for Iow a State Univer sity (1930s)
aided in sampling for quality contr ol and other uses
choice of desir able cour se of action given cer tain constraints
balanced the costs and the ser vices of a machine or other facility
William Edw ar ds Deming (1900-1993)
functional
lectur ed and consulted in Japan
pr oponent of Japanese quality management
infor mation systems ar e impor tant in all functional areas
business fir ms need to develop competitive str ength in these capabilities
deter mine str ategy
lack of constancy of pur pose tow ar d impr ovement of
pr oducts and ser vices
Alfr ed D. Chandler (2001)
an emphasis on shor t-ter m profits
for mulate plans
design appr opr iate or ganizational arrangement
manager ial
mer it r ating or other evaluation of individual performance
coor dinate w or k flow thr ough the value chain
identified 7 deadly disease that caused the US industr y declining
monitor per for mance
the impor tance of computer -assisted decision making-technologies in
the management pr ocess
ex per t system, decision suppor t systems, on-line management
infor mation systems, ex ter nal infor mation retrieval systems
concept&ideas of Deming
job hopping by manager
managing by the number w ithout consider ing figures that are
unknow n or unknow able
ex cessive medical costs
Huber (1990)
the litigious natur e of US citizenr y, causing ex cessive costs of
liability that incr eased as law yer s w or ked on contingency fee
attr ibuted 95% of all er r or s to the systems under w hich people
w or ked, not the people themselves
Japanese pr oductivity mir acle
Quality management began at the top of the or ganization
the goal w as the r eduction of var iation thr ough continuous improvement
Kaizen
applied Deming's statistical quality contr ol to Japanese
identify and w or k on the most cr itical pr oblem first
Old Lesson Relear ned
Par eto Pr inciple
80:20 r ule
vital view
80% quality pr oblems ar e caused by 20% of the
manufactur ing oper ations
Joseph M. Jur an (1904 - )
setting goals
3 par t system
or ganizing into teams to w or k on these projets
w or king thr ough each pr oject together
blended statistical analysis w ith tr aditional managerial
actions of planning, or ganizing, and contr olling
pioneer ingquality cir cles
Ar mand V. Feigenbaum (1950s)
quality gr ew in US
GE
for ming small pr oblem-solving gr oups of w orkers,
super visor s, and specialists for the pur pose of developing
better w ays of doing a job w ith higher quality
total quality contr ol
six sigmaquality pr ogram
zer o defects
impor tant lesson of histor y is that w e often lose sight of ver y basic pr actices and common-sense
ideas, such as making quality pr oducts and meeting customer needs
Gor don and How ell
char acter ization of pr oduction management as intellectually stultifying
need to incor por ate manufactur ing str ategy into corporate strategy
to look beyond efficiency and pr oduction at the low est cost to see competitive costs
Wickham Skinner (1969)
manufactur ing str ategy could yield a competitive advantage
in pr oduct design, efficient pr ocessing technologies, and quality contr ol , the pr oduction function
could pr omote cor por ate goals
manufactur ing & oper ation management
mar keting
Richar d Schonber ger (1990)
functions of the fir m should be integr ated as a continuous chain of customers
engineer ing
manufactur ing
lesson to be r elear ned
MRP (Mater ials Requir ement Planning)
pr oduction techniques
Just In Time (JIT) by Taiichi Ohno (1980)
goals
incr eased pr oductivity
r educed w aste
21- Science and Systems in Management - Lenny 29006014.mmap - 05/12/2006 -
w illingness to br eakdow n functional bar r ier s to pr ovide cooperative effort