Operations produce products, manage quality and creates service. Operation management covers cases in operations management pdf like banking systems, hospitals, companies, working with suppliers, customers, and using technology. Operations is one of the major functions in an organization along with supply chains, marketing, finance and human resources. The operations function requires management of both the strategic and day-to-day production of goods and services.
Ford Motor car assembly line: the classical example of a manufacturing production system. In managing manufacturing or service operations several types of decisions are made including operations strategy, product design, process design, quality management, capacity, facilities planning, production planning and inventory control. Each of these requires an ability to analyze the current situation and find better solutions to improve the effectiveness and efficiency of manufacturing or service operations. The history of production and operation systems began around 5000 B. The next major historical application of operation systems occurred in 4000 B.
It follows, therefore, as a matter of course, that he who devotes himself to a very highly specialized line of work is bound to do it in the best possible manner. Loyal noblemen maintained large sections of the monarch’s territory. The guild system, operating mainly between 1100 and 1500, consisted of two types: merchant guilds, who bought and sold goods, and craft guilds, which made goods. Services were also performed in the Middle Ages by servants. They provided service to the nobility for cooking, cleaning and entertainment. Court jesters were service providers.
The medieval army could also be considered a service since they defended the nobility. Interchangeability of parts allowed the mass production of parts independent of the final products in which they would be used. He developed the scientific study of productivity and identifying how to coordinate different tasks to eliminate wasting of time and increase the quality of work. Work sampling is used to measure the random variable associated with the time of each task. PMTS has gained substantial importance due to the fact that it can predict work measurements without observing the actual work. The Gilbreths took advantage of taking motion pictures at known time intervals while operators were performing the given task.
Service Industries: At the turn of the twentieth century, the services industries were already developed, but largely fragmented. During World War II, the growth of computing power led to further development of efficient manufacturing methods and the use of advanced mathematical and statistical tools. The textile industry is the prototypical example of the English industrial revolution. 28,000 capital from twelve investors. 1908, however it was not until Ford implemented the assembly line concept, that his vision of making a popular car affordable by every middle-class American citizen would be realized. The thing is to keep everything in motion and take the work to the man and not the man to the work.
The post-industrial economy was noted in 1973 by Daniel Bell. He stated that the future economy would provide more GDP and employment from services than from manufacturing and have a great effect on society. Since all sectors are highly interconnected, this did not reflect less importance for manufacturing, agriculture, and mining but just a shift in the type of economic activity. Maynard, JL Schwab and GJ Stegemerten. This was explained by its originators in a book they published in 1948 called “Method-Time Measurement”.
Toyoda Spinning and Weaving: an automatically activated loom that was also foolproof, that is automatically detected problems. TQM is a strategy for implementing and managing quality improvement on an organizational basis, this includes: participation, work culture, customer focus, supplier quality improvement and integration of the quality system with business goals. Easy able -to-see quality: boards, gauges, meters, etc. Meanwhile, in the sixties, a different approach was developed by George W. 1972 when the American Production and Inventory Control Society launched the “MRP Crusade”.
Gene Thomas at IBM, and expanded the original MRP software to include additional production functions. Dramatic changes were occurring in the service industries, as well. This requires a standard and limited menu, an assembly-line type of production process in the back-room, high customer service in the front-room with cleanliness, courtesy and fast service. While modeled after manufacturing in the production of the food in the back-room, the service in the front-room was defined and oriented to the customer. 1971 provided the first overnight delivery of packages in the U. This was based on the innovative idea of flying all packages into the single airport in Memphis Tenn by midnight each day, resorting the packages for delivery to destinations and then flying them back out the next morning for delivery to numerous locations. This concept of a fast package delivery system created a whole new industry, and eventually allowed fast delivery of online orders by Amazon and other retailers.
Starting with a single store in Roger’s Arkansas in 1962, Walmart has now become the world’s largest company. This was accomplished by adhering to their system of delivering the goods and the service to the customers at the lowest possible cost. The operations system included careful selection of merchandise, low cost sourcing, ownership of transportation, cross-docking, efficient location of stores and friendly home-town service to the customer. There standards apply to both manufacturing and service organizations.