HISTORY OF PRODUCTION HISTORY OF PRODUCTION MANAGEMENTMANAGEMENT

Industrial revolution (1770’s) Industrial revolution (1770’s) Scientific Scientific managementmanagement (1911) (1911)

Mass production Mass production Interchangeable parts Interchangeable parts

Division of labor Division of labor Human relations movement (1920-Human relations movement (1920-

60) 60) Decision models (1915, 1960-70’s) Decision models (1915, 1960-70’s)

Influence of Japanese Influence of Japanese manufacturers manufacturers

Industrial revolution (1770’s)Industrial revolution (1770’s)OM – is transformation of OM – is transformation of

inputs into output inputs into output Prior to industrial relations Prior to industrial relations

most economies were most economies were agricultural. agricultural.

Employees employed in Employees employed in domestic business were on domestic business were on

special relationship special relationship Industrial Revolution move Industrial Revolution move

from agricultural to from agricultural to manufacturing. manufacturing.

Prior to industrial revolution Prior to industrial revolution all good were produced by all good were produced by

hand hand 1770 James Watt –steam 1770 James Watt –steam

engine engine Around same time division Around same time division of labour was introduced by of labour was introduced by Adam Smith in the Wealth Adam Smith in the Wealth

of Nations of Nations Important concept in Important concept in

assembly line assembly line

History of PM, though not very old, History of PM, though not very old, but has passed through various but has passed through various

stages to reach its present stages to reach its present formidable stage.formidable stage.

Its roots go back to the concept of Its roots go back to the concept of division of labour advocated by division of labour advocated by Adam Smith in his book ,”THE Adam Smith in his book ,”THE

WEALTH OF NATIONS” IN 1776.WEALTH OF NATIONS” IN 1776.Major contributors to the Major contributors to the

development of PM begins with development of PM begins with Adam Smith from 1776Adam Smith from 1776

ADAM SMITH (1776)-Scottish scientistADAM SMITH (1776)-Scottish scientist

Attention to scientific PM for the first time was Attention to scientific PM for the first time was drawn by Adam thru his book titled “THE WEALTH drawn by Adam thru his book titled “THE WEALTH OF NATIONS”.OF NATIONS”.

Adam advocated ‘division of labour’Adam advocated ‘division of labour’ He gave 3 major benefits of the division of labour:He gave 3 major benefits of the division of labour: Workmen performing work in repetition attain Workmen performing work in repetition attain

higher skill and greater dexterity.higher skill and greater dexterity. Saving in time result while changing from one Saving in time result while changing from one

activity to another.activity to another. Improvement in PMs result when workmen are Improvement in PMs result when workmen are

made to specialize on certain tasks.made to specialize on certain tasks.

Since division of labour Since division of labour concept was later to serve concept was later to serve foundation of many other foundation of many other concepts, Adam Smith can concepts, Adam Smith can be said to be the originator be said to be the originator

of the concept of PM.of the concept of PM.

2) CHARLES BABBAGE (1883)-English 2) CHARLES BABBAGE (1883)-English mathematician.mathematician.

Babbage who followed Adam agreed with Babbage who followed Adam agreed with his predecessor in the former’s theory of his predecessor in the former’s theory of division of labour.division of labour.

Through his book titled “THE ECONOMY OF Through his book titled “THE ECONOMY OF MACHINERY AND MACHINERY AND MANUFACTURE” ,Babbage demonstrated MANUFACTURE” ,Babbage demonstrated to the world the benefits of specializationto the world the benefits of specialization

The beginning of the 20th century The beginning of the 20th century provided impetus to his concept of provided impetus to his concept of specialization which later developed into specialization which later developed into “workmen trades”“workmen trades”

F.W. TAYLOR (1859 TO 1915)F.W. TAYLOR (1859 TO 1915)

Taylor who later came to be known as Taylor who later came to be known as FATHER OF SCIENTIFIC MANAGEMENT FATHER OF SCIENTIFIC MANAGEMENT

gave the concept of “functional gave the concept of “functional management.”management.”

Taylor advocated 4 duties of Taylor advocated 4 duties of management, namely management, namely

Development of science for each element of man’s work Development of science for each element of man’s work to replace old rule of thumb methodsto replace old rule of thumb methods

2) Selection of best worker for each particular task and 2) Selection of best worker for each particular task and then training and developing the workmen( in place of then training and developing the workmen( in place of old practice of allowing a workman to choose his work old practice of allowing a workman to choose his work and get himself trained as best as he could ) on individual and get himself trained as best as he could ) on individual basis.basis.

Performance of work by workmen in accordance with the Performance of work by workmen in accordance with the scientifically devised methods by the management and scientifically devised methods by the management and striving for cooperation between workmen and striving for cooperation between workmen and management to obtain both maximum production and management to obtain both maximum production and higher worker wages.higher worker wages.

The division of work between workmen and management The division of work between workmen and management ,each group taking over the responsibility of the work for ,each group taking over the responsibility of the work for which it was best suited.which it was best suited.

Taylor concept at serial (1) developed into Taylor concept at serial (1) developed into ‘method study” and work measurement.‘method study” and work measurement.Concept at serial (2) and (3) gave rise to Concept at serial (2) and (3) gave rise to “Training, Selection and Placement and “Training, Selection and Placement and

Industrial relations concept in the field of Industrial relations concept in the field of personnel management.personnel management.

Concept (4) concerning division of labour Concept (4) concerning division of labour today is well recognized and has become today is well recognized and has become

inherent in the industry wherein today inherent in the industry wherein today management takes the function of planning management takes the function of planning and control while first line supervisors and and control while first line supervisors and

workmen are left to concentrate on workmen are left to concentrate on execution of the plans.execution of the plans.

Taylor’s direct contribution Taylor’s direct contribution to PM also include to PM also include development of:development of:

Principles of functional Principles of functional organization, andorganization, and

Financial incentive plan Financial incentive plan called” Taylor differential called” Taylor differential

piece rate method”.piece rate method”.

FRANK B. GILBRETH (1917)FRANK B. GILBRETH (1917)Gilbreth is considered the Gilbreth is considered the

founder father of WORK STUDY.founder father of WORK STUDY.Assisted by his wife Lilian, Gilbreth Assisted by his wife Lilian, Gilbreth envisioned the motion study as a envisioned the motion study as a

part of work analysis.part of work analysis.Through his 2 books titled Motion Through his 2 books titled Motion study (1911) and applied motion study (1911) and applied motion

study (1917) , Gilbreth study (1917) , Gilbreth emphasized the importance of emphasized the importance of

relationship between operator’s relationship between operator’s output and his physical effort.output and his physical effort.

He devised a system of He devised a system of classifying motions into 17 classifying motions into 17

basic divisions which he basic divisions which he called THERBLIGS and called THERBLIGS and

suggested use of SIMO suggested use of SIMO CHART to record motions CHART to record motions

employed by the workman employed by the workman to perform a task.to perform a task.

Lilian, psychologist by profession Lilian, psychologist by profession pioneered the concept of human pioneered the concept of human

factor in industry.factor in industry.The couple conducted a series of The couple conducted a series of experiments and evolved several experiments and evolved several

laws as principles of motion economy laws as principles of motion economy to provide ground rules around to provide ground rules around which an ideal method could be which an ideal method could be

established .established .Gilbreth’s contribution to PM also Gilbreth’s contribution to PM also

includes the concept of micro-motion includes the concept of micro-motion studies (micro-motion camera studies studies (micro-motion camera studies as a substitute to stop watch studies) as a substitute to stop watch studies) to measure time of short cycle jobs.to measure time of short cycle jobs.

5) HENRY FORD (1913)5) HENRY FORD (1913)Ford gave to the world Ford gave to the world

concept of mass production concept of mass production and organized work stations and organized work stations

into a conveyorised into a conveyorised assembly line.assembly line.

HENRY GANTT (1913)HENRY GANTT (1913)Gantt made his best known Gantt made his best known

contribution (1913) using a visual contribution (1913) using a visual diagrammatic tool which is diagrammatic tool which is

popularly known as GANTT CHART.popularly known as GANTT CHART.This visual diagrammatic tool still This visual diagrammatic tool still

remains a practical tool even remains a practical tool even today for charting the production today for charting the production tool even today for charting the tool even today for charting the

production schedules and machine production schedules and machine load schedules. load schedules.

7)HARRINGTON EMERSON (1913)7)HARRINGTON EMERSON (1913)Emerson evolved Emerson Emerson evolved Emerson

Efficiency Plan to emphasize Efficiency Plan to emphasize labour efficiency as a basis for labour efficiency as a basis for

payment of wages. payment of wages. Emerson’s concept of labour Emerson’s concept of labour

efficiency are embodied in his two efficiency are embodied in his two books respectively titled books respectively titled

EFFICIENCY AS A BASIS FOR EFFICIENCY AS A BASIS FOR OPERATIONS AND WAGES (1911) OPERATIONS AND WAGES (1911)

and and THE TWELVE PRINCIPLES OF THE TWELVE PRINCIPLES OF

EFFICIENCY (1913).EFFICIENCY (1913).

F.W.HARRIS (1914) F.W.HARRIS (1914) Harris developed the first Harris developed the first economic lot size (EOQ) economic lot size (EOQ)

model which is still model which is still recognized as the classical recognized as the classical

work in the scientific work in the scientific inventory control system.inventory control system.

WALTER SHEWHART (1924)WALTER SHEWHART (1924)Walter introduced the Walter introduced the concept of statistical concept of statistical quality control to the quality control to the

industry.industry.Walter pioneered the Walter pioneered the

concept of control charts for concept of control charts for monitoring the quality of monitoring the quality of

production processes.production processes.

F.H.DODGE,H.G.ROMING & F.H.DODGE,H.G.ROMING & W.SHEWHART (1931)W.SHEWHART (1931)Dodge, Roming and Dodge, Roming and

Shewhart developed the Shewhart developed the concept of sampling concept of sampling

inspection and published inspection and published stastical sampling tables.stastical sampling tables.

L.H.C. TIPPETT (1937)L.H.C. TIPPETT (1937)Tippett developed the Tippett developed the

concept of work sampling to concept of work sampling to determine the machine and determine the machine and manpower utilization and manpower utilization and for setting performance for setting performance standards for long cycle standards for long cycle

jobs and operations jobs and operations involving team working.involving team working.

BETWEEN 1940 -1980BETWEEN 1940 -1980In and around 1950, two In and around 1950, two

major developments which major developments which influenced the PM were the influenced the PM were the emergence of OPERATION emergence of OPERATION

RESEARCH and RESEARCH and development of VALUE development of VALUE

ENGINEERING by L.D. Miles.ENGINEERING by L.D. Miles.

OR is the application of OR is the application of scientific methods to study scientific methods to study

and devise solutions to and devise solutions to managerial problems in managerial problems in

decision making..decision making..Using mathematical model Using mathematical model system approach ,OR has system approach ,OR has

helped solve resource helped solve resource allocation, allocation,

scheduling ,processing ,inventoscheduling ,processing ,inventory, location layout and control ry, location layout and control

problems.problems.

VALUE ANALYSISVALUE ANALYSIS An organized approach to An organized approach to

identify unnecessary costs of identify unnecessary costs of products and systems by products and systems by analysis of function and analysis of function and efficiently eliminating efficiently eliminating

unnecessary costs without unnecessary costs without impairing the quality ,reliability impairing the quality ,reliability and ability of the item to give and ability of the item to give

service.service.

In 1958 ,concepts of CPM & In 1958 ,concepts of CPM & PERT were developed for PERT were developed for analysis of large projects analysis of large projects

and since then a number of and since then a number of network based techniques network based techniques

of project management of project management have been developed.have been developed.

In late 1950’s the In late 1950’s the techniques of production techniques of production were extended to other were extended to other

production organizations production organizations such as petroleum, such as petroleum,

chemical and other process chemical and other process industries.industries.

In late 1960’s the concept of In late 1960’s the concept of production was amplified to include production was amplified to include

non manufacturing organizations such non manufacturing organizations such as transport, hospitals, banks, as transport, hospitals, banks,

agriculture ,warehouses, educational agriculture ,warehouses, educational institutes, etc, which led to the institutes, etc, which led to the

adoption of OPERATION MANAGEMENT adoption of OPERATION MANAGEMENT in place of PRODUCTION in place of PRODUCTION

MANAGEMENT so as to include both MANAGEMENT so as to include both the production of goods the production of goods

(manufacturing organizations) as well (manufacturing organizations) as well as services (service organizations).as services (service organizations).

PRESENT DAY POSITIONPRESENT DAY POSITION

Most recently, there has been Most recently, there has been a major thrust on the adoption a major thrust on the adoption

of Japanese management of Japanese management techniques like JUST-IN-TIME techniques like JUST-IN-TIME (JIT) or KANBAN SYSTEMS for (JIT) or KANBAN SYSTEMS for

solving production scheduling solving production scheduling and inventory related problems and inventory related problems

and the concepts of QUALITY and the concepts of QUALITY CIRCLES for involving CIRCLES for involving

employees at all levels in employees at all levels in solving their work related solving their work related

problems.problems.

QUALITIES OF QUALITIES OF PRODUCTION MANAGER:-PRODUCTION MANAGER:-

INTELLIGENCEINTELLIGENCE

OPTIMUM UTILISATION OF OPTIMUM UTILISATION OF RESOURCESRESOURCES

QUALITIES OF QUALITIES OF PRODUCTION MANAGER:-PRODUCTION MANAGER:-

ENTHUSIASM AND PERSEVERANCEENTHUSIASM AND PERSEVERANCE

QUALITIES OF QUALITIES OF PRODUCTION MANAGER:-PRODUCTION MANAGER:-

IMAGINATIONIMAGINATION

QUALITIES OF QUALITIES OF PRODUCTION MANAGER:-PRODUCTION MANAGER:-

RESOURCEFULLNESSRESOURCEFULLNESS

QUALITIES OF QUALITIES OF PRODUCTION MANAGER:-PRODUCTION MANAGER:-

SELF CONTROLSELF CONTROL

QUALITIES OF QUALITIES OF PRODUCTION MANAGER:-PRODUCTION MANAGER:-

SYMPATHYSYMPATHY

QUALITIES OF QUALITIES OF PRODUCTION MANAGER:-PRODUCTION MANAGER:-

COMMUNICATION ABILITYCOMMUNICATION ABILITY

QUALITIES OF QUALITIES OF PRODUCTION MANAGER:-PRODUCTION MANAGER:-

FLEXIBILITYFLEXIBILITYSITUATIONS DO NOT REMAIN STATIC.SITUATIONS DO NOT REMAIN STATIC.

FOR EG.FOR EG.CUSTOMER’S PRIORITIES CHANGE!CUSTOMER’S PRIORITIES CHANGE!

PRODUCT MIX CHANGES!PRODUCT MIX CHANGES!