HISTORY OF PRODUCTION

MANAGEMENT
 Industrial revolution (1770’s)
Scientific management (1911)
Mass production
Interchangeable parts
Division of labor
Human relations movement (1920-
60)
Decision models (1915, 1960-70’s)

Influence of Japanese
manufacturers
 OM – is transformation of
inputs into output
Prior to industrial relations
most economies were
agricultural.
Employees employed in
domestic business were on
special relationship
Industrial Revolution move
from agricultural to
manufacturing.
Prior to industrial revolution
all good were produced by
hand
1770 James Watt –steam
engine
Around same time division
of labour was introduced by
Adam Smith in the Wealth
of Nations
Important concept in
History of PM, though not very old,
but has passed through various
stages to reach its present
formidable stage.
Its roots go back to the concept of
division of labour advocated by
Adam Smith in his book ,”THE
WEALTH OF NATIONS” IN 1776.
Major contributors to the
development of PM begins with
Adam Smith from 1776
 ADAM SMITH (1776)-Scottish scientist

 Attention to scientific PM for the first time was

drawn by Adam thru his book titled “THE
WEALTH OF NATIONS”.
 Adam advocated ‘division of labour’
 He gave 3 major benefits of the division of
labour:
 Workmen performing work in repetition attain
higher skill and greater dexterity.
 Saving in time result while changing from one
activity to another.
 Improvement in PMs result when workmen are
made to specialize on certain tasks.
 Since division of labour
concept was later to serve
foundation of many other
concepts, Adam Smith can
be said to be the originator
of the concept of PM.
2) CHARLES BABBAGE (1883)-English
mathematician.
 Babbage who followed Adam agreed with
his predecessor in the former’s theory of
division of labour.
 Through his book titled “THE ECONOMY OF
MACHINERY AND MANUFACTURE”
,Babbage demonstrated to the world the
benefits of specialization
 The beginning of the 20th century
provided impetus to his concept of
specialization which later developed into
“workmen trades”
 F.W. TAYLOR (1859 TO 1915)

Taylor who later came to be known as

FATHER OF SCIENTIFIC MANAGEMENT
gave the concept of “functional
management.”
 Taylor advocated 4 duties of
management, namely
 Development of science for each element of man’s work
to replace old rule of thumb methods
 2) Selection of best worker for each particular task and
then training and developing the workmen( in place of
old practice of allowing a workman to choose his work
and get himself trained as best as he could ) on individual
basis.
 Performance of work by workmen in accordance with the
scientifically devised methods by the management and
striving for cooperation between workmen and
management to obtain both maximum production and
higher worker wages.
 The division of work between workmen and management
,each group taking over the responsibility of the work for
which it was best suited.
Taylor concept at serial (1) developed into
‘method study” and work measurement.
Concept at serial (2) and (3) gave rise to
“Training, Selection and Placement and
Industrial relations concept in the field of
personnel management.
Concept (4) concerning division of labour
today is well recognized and has become
inherent in the industry wherein today
management takes the function of planning
and control while first line supervisors and
workmen are left to concentrate on
execution of the plans.
Taylor’s direct contribution
to PM also include
development of:
Principles of functional
organization, and
Financial incentive plan
called” Taylor differential
piece rate method”.
 FRANK B. GILBRETH (1917)
Gilbreth is considered the
founder father of WORK STUDY.
Assisted by his wife Lilian, Gilbreth
envisioned the motion study as a
part of work analysis.
Through his 2 books titled Motion
study (1911) and applied motion
study (1917) , Gilbreth
emphasized the importance of
relationship between operator’s
output and his physical effort.
 He devised a system of
classifying motions into 17
basic divisions which he
called THERBLIGS and
suggested use of SIMO
CHART to record motions
employed by the workman
to perform a task.
 Lilian, psychologist by profession
pioneered the concept of human
factor in industry.
The couple conducted a series of
experiments and evolved several
laws as principles of motion economy
to provide ground rules around
which an ideal method could be
established .
Gilbreth’s contribution to PM also
includes the concept of micro-motion
studies (micro-motion camera studies
as a substitute to stop watch studies)
to measure time of short cycle jobs.
 5) HENRY FORD (1913)
Ford gave to the world
concept of mass production
and organized work stations
into a conveyorised
assembly line.
 HENRY GANTT (1913)
Gantt made his best known
contribution (1913) using a visual
diagrammatic tool which is
popularly known as GANTT CHART.
This visual diagrammatic tool still
remains a practical tool even
today for charting the production
tool even today for charting the
production schedules and machine
load schedules.
 7)HARRINGTON EMERSON (1913)
Emerson evolved Emerson
Efficiency Plan to emphasize
labour efficiency as a basis for
payment of wages.
Emerson’s concept of labour
efficiency are embodied in his two
books respectively titled
EFFICIENCY AS A BASIS FOR
OPERATIONS AND WAGES (1911)
and
THE TWELVE PRINCIPLES OF
 F.W.HARRIS (1914)
Harris developed the first
economic lot size (EOQ)
model which is still
recognized as the classical
work in the scientific
inventory control system.
WALTER SHEWHART (1924)
Walter introduced the
concept of statistical
quality control to the
industry.
Walter pioneered the
concept of control charts for
monitoring the quality of
production processes.
F.H.DODGE,H.G.ROMING &
W.SHEWHART (1931)
Dodge, Roming and
Shewhart developed the
concept of sampling
inspection and published
stastical sampling tables.
 L.H.C. TIPPETT (1937)
Tippett developed the
concept of work sampling to
determine the machine and
manpower utilization and
for setting performance
standards for long cycle
jobs and operations
involving team working.
 BETWEEN 1940 -1980
In and around 1950, two
major developments which
influenced the PM were the
emergence of OPERATION
RESEARCH and
development of VALUE
ENGINEERING by L.D. Miles.
 OR is the application of
scientific methods to study
and devise solutions to
managerial problems in
decision making..
Using mathematical model
system approach ,OR has
helped solve resource
allocation, scheduling
,processing ,inventory, location
layout and control problems.
 VALUE ANALYSIS
An organized approach to
identify unnecessary costs of
products and systems by
analysis of function and
efficiently eliminating
unnecessary costs without
impairing the quality ,reliability
and ability of the item to give
service.
In 1958 ,concepts of CPM &
PERT were developed for
analysis of large projects
and since then a number of
network based techniques
of project management
have been developed.
 In late 1950’s the
techniques of production
were extended to other
production organizations
such as petroleum,
chemical and other process
industries.
 In late 1960’s the concept of
production was amplified to include
non manufacturing organizations such
as transport, hospitals, banks,
agriculture ,warehouses, educational
institutes, etc, which led to the
adoption of OPERATION MANAGEMENT
in place of PRODUCTION
MANAGEMENT so as to include both
the production of goods
(manufacturing organizations) as well
as services (service organizations).
PRESENT DAY POSITION
 Most recently, there has been
a major thrust on the adoption
of Japanese management
techniques like JUST-IN-TIME
(JIT) or KANBAN SYSTEMS for
solving production scheduling
and inventory related problems
and the concepts of QUALITY
CIRCLES for involving
employees at all levels in
solving their work related
 QUALITIES OF
PRODUCTION MANAGER:-

INTELLI GEN CE
OPTIMUM UTILISATION OF
RESOURCES
 QUALITIES OF
PRODUCTION MANAGER:-

ENTHUSIASM AND PERSEVERANCE

 QUALITIES OF
PRODUCTION MANAGER:-

IMAGINATION
 QUALITIES OF
PRODUCTION MANAGER:-

RESOURCEFULLNESS
 QUALITIES OF
PRODUCTION MANAGER:-

SELF CONTROL
 QUALITIES OF
PRODUCTION MANAGER:-

SYMPATHY
 QUALITIES OF
PRODUCTION MANAGER:-

COMMUNICATION ABILITY
 QUALITIES OF
PRODUCTION MANAGER:-

FLEXIBILITY
SITUATIONS DO NOT REMAIN STATIC.
FOR EG.
CUSTOMER’S PRIORITIES CHANGE!
PRODUCT MIX CHANGES!