Saish Mulgaonkar(G-60) Manoj Nagargoje(A-26) Sagar Kasabe(A-21) Atul Jain(G-38) Pavan kannav(G-45)

POINTS TO BE COVERED

What is Operations Management

Historical Summary of Operations Management.

Historical Evolution of Operations

Management
Industrial Revolution Scientific Management The Human Relations Movement

Decision Models and Management Science

The Influence of Japanese Manufacturers

Operations Management (OM) is defined as the Design, Operation, and Improvement of the System that create & deliver the firms primary products and service. Like Finance, Marketing, OM is a functional field of business with clear line management responsibilities.
Operation

Old Sugar Factory Operations

Finance

Marketing

Historical Summary of Operations Management

Years Concept/Contribution Originator

1776 1790 1911 1911 1912 1913 1915 1930 1935 1940 1947 1951 1950s 1960s 1975 1980s 1990s 2000s

Division of Labor Interchangeable parts Principles of Scientific Management Motion study; use of industrial psychology Chart of scheduling activities Moving assembly line Mathematical model for inventory management Hawthorne studies on worker motivation Statistical Procedures for sampling and Quality control Operations research application in warfare Linear Programming Commercial digital Computers Automation Extensive development of quantitative tools Emphasis on manufacturing strategy Emphasis on quality, Flexibility, time-based Competition, lean Production. Internet, supply chain management Application service providers and Outsourcing

Adam Smith Eli Whitney Frederick W. Taylor Frank & Lillian Gilbreth Henry Gantt Henry Ford F.W.Harris Elton Mayo H.F.Dodge,H.G.Romig,W.shew hart,L.H.C.Tippett Operations research groups George Dantzing Sperry Univac,IBM Numerous Numerous W.Skinner Japanese Manufacturers, Toyota and Taiichi Ohno Numerous Numerous

The Industrial Revolution

Began in 1770 at England . In 18th Century lot of innovation taken place in production by substitution of machine power for human power. Most significant of these was Steam Engine. In 19th Century it Spread to Europe and to the United states. Using the Spinning Jenny and the Power Loom revolutionized the Textile Industry.

The Industrial Revolution

Craft production system were used in the earlier days The Major change Development of the standard Gauging system reduced the custom made goods. Factories provided job opportunities for people from rural area. Change in Management Theory and Practice took place resulted in enlightment and more systematic approach towards management.

Craft Production System

The Industrial Revolution

The First U.S. Factory
Before American Revolution England had prohibited items such as Textile manufacturing machinery or plans from which such machines can be made. Samuel Slater served an apprenticeship in an England textile mill, came to United States with a necessary plans for a mill store in his phenomenonal memory. In December 1790, near Providence, Rhode Island Slater produced the first cotton yard made automatically in the US. The process he introduced was recognized and was applied so rapidly which makes the by the end of the war of 1812 there were 165 mills in Massachusetts, Connecticut and Rhode Island alone. The factory system flourished in New England and the US textile industry.

Samuel Slater

Scientific Management
Brought widespread changes to the management of factories.

The move was spearheaded by the efficiency engineer and inventor Frederick Winslow Taylor, referred as Father of Scientific Management.
Believed based on observation, measurement, analysis and improvement of work methods in great deal to identify the best method of doing each job. Believed that the management should be responsible for planning, carefully Selecting and training workers.

Frederick Winslow Taylor

Scientific Management
Taylors methods emphasized maximizing output. Other pioneers also contributed heavily to this movement Frank Gilbreth - Frank Gilbreth developed principles of motion economy that could be applied to incredibly small portions of a task.

- Henry Gantt recognized the value of momentary rewards to motivate workers and developed a widely used system for scheduling, called Giant Charts.
Henry Gantt -Harrington Emerson applied Taylors ideas to Organization structure and encouraged the use of experts to improve Organizational efficiency.

Scientific Management
Henry Ford, the Great industrialist, employed scientific management techniques in his factories. Fords T model was introduced and it had trouble keeping up with orders for the car.. Ford adopted the scientific management principles exposed by Frederick Winslow Taylor. In 1913, Ford introduced the Moving assembly line. Henry Ford

Scientific Management
Ford also introduced the mass production to the automotive industry. Key concept of mass production was interchangeable parts. Eli Whitney American inventor who applied this concept to assembling muskets in late 1770s. Tremendous decrease in assembly time and cost. Ford accomplished this by standardizing the gauges used to measures parts during production.

Eli Whitney

Scientific Management
The another concept used by Ford was the Division of Labor which Adam Smith wrote in The wealth of Nations in 1776.

This concept is unlike the Craft production.

Ford increased the production rate at their factories by using readily available inexpensive Labor. As Taylor and Ford were despised by many workers, because they held the workers in the low regard to perform like Robots paved way to the human relations movement.

Adam Smith

The Human Relations Movement

Scientific management movement-technical aspects of work design, human relations movement emphasized the importance of the human element in job design. Lillian Gilbreth and Frank Gilbreth worked focusing on the human factor in work. The studies in 1920s dealt with worker fatigue. In 1930s Elton Mayo, conducted studies at the Hawthorne division of Western Electic revealed that in addition to the physical and technical aspects of work, worker motivation is critical for improving the productivity. Elton Mayo

Frank & Lillian Gilbreth

The Human Relations Movement

Abraham Maslow, motivational theories in 1940s and Frederick Hertzberg refined the same in 1950s. Douglas Mc Gregor added the Theory X and Theory Y in 1960s theories represents two ends of the spectrum of how employees view work. In 1970s William Ouchi Theory Z which is the combination of Japanese approach.

William Ouchi

Decision Models and Management Science

The factory movement was accompanied by the development of several quantitative techniques. F. W. Harris one of the first model in 1915. A mathematical model for Inventory Management. In 1930s three coworkers from Bell Telephone Labs - H.F.Dodge, H.G. Romig and W.Shewhart-statistical procedures for sampling and quality control In 1935, L.H.C. Tippett conducted studies that provided the groundwork for statistical sampling theory.

Decision Models and Management Science

Initially Quantative models were not widely used in industry. However the on set of World War II Changed that the war generated tremendous pressures on manufacturing output, and specialists from many disciplines combined efforts to achieve advancements in the military and in manufacturing. It refined quantitative tools for decision making continued resulting in decision models for forecasting, inventory management, project management, and other areas of Operations management. During the 1960s and 1970s management science techniques were highly regarded, in the 1980s they lost some favor. However, the widespread use of personal computers and user-friendly software in the workplace contributed to a resurgence in the popularity of these techniques.

The Influence of Japanese Manufacturers

Japanese manufacturers developed or refined management practices that increased the productivity of their operations and the quality of their products. Made them vey competitive, sparking interest in their approaches by companies outside Japan. Approach emphasized quality and continual improvement, worker teams and empowerment, and achieving customer satisfaction. The Japanese can be credited with spawning the quality revolution that occurred in industrialized countries, and with generating widespread interest in time-based management (just-in-time production). The influence of the Japanese on US manufacturing and service companies has been enormous and promises to continue for the foreseeable future.

MANUFACTURING MANAGEMENT
MAIN FUNCTIONAL AREAS IN BUSINESS

ORGANISATION
MARKETING

PRODUCTION
FINANCE PERSONNEL

OBJECTIVES OF MANUFACTURING MANAGEMENT

Efficiency objective: Maximizing output of goods & services with

minimum resources inputs Effectiveness objectives: Producing right kind of goods & services that satisfy customers need. Quality objective: Ensuring that goods & services produced conform to pre-set quality specifications. Lead time objective: Minimizing through put time by reducing delays, waiting time & idle time. Capacity utilization objective: Maximizing utilization of manpower, machine etc. Cost objective: Minimizing cost of producing goods or rendering a service.

SCOPE OF MANUFACTURING MANAGEMENT

Planning: Planning the conversion process & planning the use of this process. Product selection & Design Process selection & planning Plant location Plant layout & materials handling Capacity planning Forecasting Production Planning Organizing: Organizing for conversion Work study & job design Controlling: Controlling the conversation process.. Production Control Inventory Control Quality Assurance & Control Maintenance & replacement Cost reduction & cost control.

Business challenges of manufacturing in 21 century

Managing uncertainties business environment has become uncertain. Understanding customers customers need are increasing. His need are

required to be translated in the product or the services.

Understanding the globalization of the business it is a process it cuts

the boundaries of the nation. As information technology plays a vital role in the business.

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