Operations management evolved from the Industrial Revolution in the 18th century, where the steam engine automated production. Scientific management in the early 20th century introduced time and motion studies to optimize workflows. Henry Ford further refined production with assembly lines and interchangeable parts. Quantitative decision models were developed in the 20th century to aid inventory management, forecasting, and project management. Japanese manufacturers influenced operations with quality and productivity improvements. Today, information technology and globalization shape operations management.

1. HISTORICAL EVOLUTION OF OM

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 Taylor.
 Introduced the moving assembly line, which affected to
many industries.
 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 was to standardize
parts.
 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
 Frank Gilbreth - was an industrial engineer
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.  Harrington Emerson - applied Taylor’s ideas to
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 for
inventory order size in 1915.
 H.F. Dodge, H.G. Romig and W. Shewhart
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.
 Technology 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.

20.  Created by;
 Shakthi Fernando
 Sandun Ulpathakumbura
 BSc. Financial management(Special)-Undergraduates
Sabaragamuwa University of Sri Lanka