Development of Operations Management

Posted by The New Economics Education

The first person who gives attention to the way of efficient production is Adam Smith, the author of The Wealth of Nations (1776). Adam Smith argued the advantages of the division of labor (division of labor), namely: 
  • Increased skills or skills that a person if the person doing the work in the bear again, 
  • Earned savings in time, because often the alternation of work from one job to another job,
  • The discovery of specialized machines that only do one kind of work alone in a series of work.
At this time then there is a change of production systems, from home-based production system into a production system with machines, such as the discovery of loom, loom, and the steam engine. The development of production become more advanced development of factories, followed by the development of the workforce.

Eli Whitney (1880) known as the first to popularize the components can be assembled, which is obtained through the standardization and quality control. He has won a U.S. government contract for 10,000 guns, which are sold at high prices because the weapons are assembled. In 1852, Charles Babbage expressed the opinion that the production process goods are activities that are not economical in the use of machinery and manpower, in his book On the Economy of Machinery and Manufacturers. At this time of economic production system is expected so there is no waste of factors of production.

Followed by FW Taylor in 1881 to put forward "method of division of labor with a minimum of motion and time are known as time and motions study. FW Taylor suggests four basic tasks of management, namely: 
  • Replace the rule of thumb methods (methods that are not based on science) with the so-called scientific method to study motions minimum notice of motion, in order to obtain maximum results.
  • Managers must make the selection and training of the labor union or scientifically as well as eliminate the individualistic nature among the workers.
  • Develop a spirit of close cooperation between unions, employees and managers. 
  • Hold a clear division of labor between workers and employers, making it clear division of duties and responsibilities.
In 1913, Henry Ford and Charles Sorensen combine their knowledge of standardized components to production lines apparent in the meat packing industry and mail order, and also adds a new concept on the production line, where workers stand while moving materials. Carles Sonersen tow the car chassis at a mine on his shoulder across the production line at the factory Foord, while the other added components on the car.

Quality control also plays a major role in the history of operations management. Walter Shewhart in 1924 combined with the need for knowledge of statistical quality control and discover the basics of statistical calculations and sampling for quality control. Development of operations management followed later with the advent of industrial revolution. At this time, there were developments that led to intense competition in the field of production. The authorities began to think about the importance of demand forecasts, and forecasting product quality improvement as a result of the continued progress of commercial and political marketing.
Opinion on the direction of production activity: 
  • Looking for strategic market 
  • Develop a production facility with technology development 
  • Promote the production results.
On and after the depression teriadi, 1930, the operation management development leads to the use of Scientific Management, was marked by the introduction and development of Statistical Quality by Walter Stewart, 1931, and the development of Work Sampling by DHC Tippet, 1934, who discovered the standard sampling procedures to determine the delay in the production process, working time, which is known as the standard of delays.

W. Edwards Deming (1950) and Frederick Taylor argued that management must do more to improve the work environment and processes in order to get better quality. Operations management continues to grow with the contributions from other disciplines, including industrial engineering and management science. This knowledge management as well as statistics and economics have contributed to increased productivity. After World War II, the development of operations management is becoming increasingly rapid, marked by the discovery of methods of Linear Programming, Waiting Line Theory, developed in industry analysis, and began to use computers in the operating system designs such as Computer Aided Design and Computer Models for Operating Management.

The most important contribution to the management of the operation is of science informatics, which is defined by Jay Heizer and Barry Render as a systematic process performed on the data to obtain information. Science informatics, internet, e-commerce and contribute to increased productivity and provide goods and services that are more varied in the community.

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