Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as evolution of operations management pdf and effective in terms of meeting customer requirements. Operations produce products, manage quality and creates service.
Operation management covers sectors 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.
Operations management studies both manufacturing and services. The history of production and operation systems began around 5000 B. Sumerian priests developed the ancient system of recording inventories, loans, taxes, and business transactions.
The next major historical application of operation systems occurred in 4000 B. It was during this time that the Egyptians started using planning, organization, and control in large projects such as the construction of the pyramids. 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.
In the Middle Ages, kings and queens ruled over large areas of land. Loyal noblemen maintained large sections of the monarch’s territory.
This hierarchical organization in which people were divided into classes based on social position and wealth became known as the feudal system. In the feudal system, vassals and serfs produced for themselves and people of higher classes by using the ruler’s land and resources. Although a large part of labor was employed in agriculture, artisans contributed to economic output and formed guilds. 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.
Although guilds were regulated as to the quality of work performed, the resulting system was rather rigid, shoemakers, for example, were prohibited from tanning hides. 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. The industrial revolution was facilitated by two elements: interchangeability of parts and division of labor. Division of labor has always been a feature from the beginning of civilization, the extent to which the division is carried out varied considerably depending on period and location.
Compared to the Middle Ages, the Renaissance and the Age of Discovery were characterized by a greater specialization in labor, one of the characteristics of growing European cities and trade. It was in the late eighteenth century that Eli Whitney popularized the concept of interchangeability of parts when he manufactured 10,000 muskets. Interchangeability of parts allowed the mass production of parts independent of the final products in which they would be used.