Operations as a Transformation Process INPUT Material Machines

Operations as a Transformation Process INPUT Material Machines Labor Management Capital TRANSFORMATION PROCESS Feedback OUTPUT Goods Services

Productivity Output Productivity = Input

����� �� Productivity = Outputs ÷ Inputs 1) Labor Productivity = Units Of Product Labor Cost 2) Multiple Productivity = Units Produced X Unit Price L + M + OH

Productivity Output Productivity = Input Productivity improves when firms: üBecome more efficient üDownsize üExpand üRetrench üAchieve breakthroughs

Historical Events in OM üIndustrial Revolution üScientific Management üHuman Relations üManagement Science üQuality Revolution üGlobalization üInformation Age/Internet Revolution

Historical Events in OM Industrial Revolution Steam engine Division of labor Interchangeable parts 1769 1776 1790 James Watt Adam Smith Eli Whitney Scientific Management Principles Time and motion studies Activity scheduling chart Moving assembly line 1911 1912 1913 Frederick W. Taylor Frank & Lillian Gilbreth Henry Gant Henry Ford

Historical Events in OM Human Relations Hawthorne studies Motivation theories 1930 1940 s 1950 s 1960 s Elton Mayo Abraham Maslow Frederick Hertzberg Douglas Mc. Gregor Management Science Linear programming Digital computer Simulation, PERT/CPM, Waiting line theory MRP 1947 George Dantzig 1951 Remington Rand 1950 s Operations research groups 1960 s Joseph Orlicky, IBM

Historical Events in OM Quality Revolution JIT TQM Strategy and operations Reengineering World Trade Organization 1970 s Taiichi Ohno, Toyota 1980 s W. Edwards Deming, Joseph Juran, et. al. Skinner, Hayes 1990 s Hammer, Champy 1990 s Numerous countries and companies Globalization European Union and other trade agreements EDI, EFT, CIM 1970 s IBM and others 1980 s

Historical Events in OM Information Age/ Internet Revolution Internet, WWW, ERP Supply chain management, E-commerce 1990 s ARPANET, Tim Berners-Lee, SAP, i 2 Technologies, ORACLE, People. Soft, Amazon, Yahoo, e. Bay, and others