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OPERATIONS MANAGEMENT Historical Milestone of OM(Significant Event)

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OPERATIONS MANAGEMENT

OPERATIONSMANAGEMENTHistorical Milestone of OM(Significant Event)OUTLINEWhat is Operations Management?The heritage of Operations ManagementWhy study OM?What Operations Managers do?

WHAT IS OPERATIONS MANAGEMENT?Operations Management is the set of activities that creates goods and services by transforming inputs into outputsOperations Management focuses on carefully managing the processes to produce and distribute products and services.

AND PRODUCTION Production is the creation of goods and services

SIGNIFICANT EVENTS IN OPERATIONS MANAGEMENTDivision of labor (Smith, 1776)Standardized parts (Whitney, 1800)Scientific management (Taylor, 1881)Coordinated assembly line (Ford 1913)Gantt charts (Gantt, 1916)Motion study (the Gilbreths, 1922)Quality control (Shewhart, 1924)SCIENTISTSAdam Smith

He suggested that the huge increases in productivity obtainable from technology or technological progress are possible because human and physical capital are matched, usually in an organisation.

Eli Whitney

Whitney's defenders have claimed that he invented the American system of manufacturing-- the combination of power machinery, interchangeable parts, and division of labor that would underlie the nation's subsequent industrial revolution.

Frederick Winslow Taylor

He developed the theory of management that analyzes and synthesizes processes, improving labor productivity.

Henry FordHe said that an assembly line is a manufacturing process in which interchangeable parts are added to a product in a sequential manner using optimally planned logistics to create a finished product much faster than with handcrafting-type methods.

Henry GanttA Gantt chart is a popular type of bar chart that illustrates a project schedule. Gantt charts illustrate the start and finish dates of the terminal elements and summary elements of a project.

The Gilbreths

The Gilbreths' motion studies were more focused on how a task was done, and how best to eliminate unneeded, fatiguing steps in any process.

Walter Shewhart

Shewhart framed the problem in terms of assignable-cause and chance-cause variation and introduced the control chart as a tool for distinguishing between the two. Shewhart stressed that bringing a production process into a state of statistical control, where there is only chance-cause variation, and keeping it in control, is necessary to predict future output and to manage a process economically.