Before the Industrial Revolution, production was mainly artisanal, with skilled craftsmen producing goods individually or in small workshops. Each item was unique and designed to customer specifications.Â
Industrial Revolution
The Industrial Revolution was a turning point with the advent of the steam engine by James Watt (1764), which replaced human labor. The development of fuel-powered and electric machines in the late 1800s accelerated automation and mass production. After World War I, industry grew rapidly until the world entered a post-industrial era that focused more on the service sector and environmental issues.
Scientific Study of Work
Frederick W. Taylor (1911) developed a scientific approach to work to find the most efficient methods through observation, analysis, training, and continuous evaluation. This idea was continued by Frank and Lilian Gilbreth. Although effective, this approach also drew criticism for often being considered too mechanistic towards workers.
Human Relations
In the 1930s, Elton Mayo emphasized the importance of the human aspect of work. His research showed that motivation, the physical work environment, and social relationships greatly affect productivity. This view complements the overly technical scientific approach with a more humanistic one.
Decision Models
Decision models introduced mathematical methods to aid managerial decision-making. An example is the EOQ formula by F.W. Harris (1915). The first use of this model occurred in 1915 for inventory management. Then came the Gantt Chart (1916), statistical quality control by Shewhart (1931), and linear programming and the simplex method by George Dantzig (1951). Since the 1950s, these various models have been widely used in planning and optimizing operations.
Use of Computers
Since the 1950s, computers have revolutionized operations management. Their use includes inventory data processing, production scheduling, quality control, and cost systems. Today, computers are a vital element in all operational activities, both in manufacturing and services.Â