Scientific Management Early 1900s Separated ‘planning’ from ‘doing’ Management’s job was to discover worker’s physical limits through measurement, analysis & observation Major contributors: Fredrick Taylor: stopwatch time studies Henry Ford: moving assembly line Page Industrial Revolution Late 1700s Replaced traditional craft methods Substituted machine power for labor Major contributions: James Watt (1764): steam engine Adam Smith (1776): division of labor Eli Whitney (1790): interchangeable parts Page Major Historical Developments Industrial Revolution Late 1700s Scientific Management Early 1900s Human Relations Movement 1930s to 1960s Management Science Mid-1900s Computer Age 1970s Just-In-Time Systems 1980s Total Quality Management (TQM) 1980s Reengineering 1980s Flexibility 1990s Time-based Competition 1990s Supply Chain Management 1990s Global Competition 1990s Environmental Issues 1990s Electronic Commerce Late 1990s – Early 21 st Century Page Broad in scope & long-term in nature Tactical decisions : Short-term & specific in nature Bound by the strategic decisions Page OM Decisions Strategic decisions : Decisions that set the direction for the entire company. Service - Manufacturing Services : Intangible product No inventories High customer contact Short response time Labor intensive Manufacturing : Tangible product Can be inventoried Low customer contact Capital intensive Long response time Page Value Added Defined Page Inputs in $$ Transformation Process Outputs in $$$ Value Added by Process Information Flows To & From Operations Page OM Defined Operations management : The business function responsible for planning, coordinating, and controlling the resources needed to produce a company’s products and services Page Introduction to Operations Management 1 C H A P T E R Production and Operations Management- Chapters 1-8