I – Introduction to Operations Management
a) What is Operations Management ?
According to its definition, Operations Management is all the ongoing activities of designing, reviewing and using the operating system, to achieve service outputs as determined by the organization for customers. It can be also what help the transformation from inputs to outputs.b) The place of Operations Management
The importance of Operations Management in a company is widely demonstrated, given that it is one of three main functions. Indeed, with Marketing and Finance, Operations Management is vital to a company , and no matter the commpany is small or big. Studying Operations Management aims at understanding the best method to produce or to deliver service.Moreover, a large part of reveue is dedicated in Operations Management. That’s why we said that Operations Management in a costly part of an organization. Indeed, each company knows that investing in Operation Management will be profitable afterward.
c) What do Operations Managers exactly do ?
All Operations Managers have to apply what we call the management process. The management processconsists of planning, organizing, staffing, leading and controlling to lead to the achievement of objectives. Operations Managers have very widened skills, that’s why their tasks are very varied. Before applying the task, they’re always wondering why. For instance, when they’re acting on designing good and services, it’s because they were wondering which good should the company offer, or how thecompany should design this product.
II – The Evolution of Operations Management
• The research for profit and performance
a) From the 18th to the 20th
The first outline of Operations Management appeared at the end of the 18th century. Indeed, all the 18th was marked by the omnipresence of farming. We can say that three men open the way to Operations Management. First, whilecreating the steam machin, James Watt showed that labour should be organized and controlled.
Next, in 1776, whith his book “ The Health of the nation “ Adam smith talked about a subject very well known nowadays : Specialisation. Indeed, with several experience that he did in a factory. He demonstrated that if everyone was in the right place, productivity would increase. Afterwards he affirmed thatspecialisation would be effective for workers.
In fact, he said specialisation was the manner to increase personnal skills, self-esteem and productivity.
Next, Eli whitney’s brought a new concept which was a revolution : Standardisation.
Standardisation is a process by which we refer an indication to a standard. It is also the foundation of scale production. This concept permitted todevelop mass production and quality control. He was also a pioneer by showing all pieces were interchangeable, all the broken pieces could be replace by new ones, easily and precisely at the place of the old.
A bit furher, Charles Baggage added some showed other advantages of specialization, while saying that it permits a better coordination between the skills and the physical abilities of theworkers.
b) The arrival of the Scientific management
Before 1880, Manufacturing was more an art than a science. That changed with the arrival of Scientific Managers, whom the most known is Frederic W. Taylor, considered as the father of the Sientific Management.
Before the arrival of the father of the scientific management, Henry Gantt, in 1910 created the Gantt chart : a manner tofollow the evolution of all the projects a company develop. The diagram of this former engineer in mechanics was widely used, even today concerning the management project. There is still today a software named Gantt project.
Frederick Taylor, afterward, demonstrated that the best method to improve productivity and performance, was the science. With his book titled “ The principles of Scientific...