History of Operations Management

Operations management it is the act of controlling and directing the design, production and delivery of products. Although people have been producing and selling products since the beginning of civilization, the implementation of operations management is a relatively new phenomenon. Operations management It reached its peak in the 20th century, but its roots go back to the 18th and 19th centuries.

Operations Management is the creation, development and organization of the production function in order to achieve competitive advantages.

The competitiveness It is the ability of a company to perform better than its competition according to the perception of its customers.

Pre-industrial revolution

One of the first people to tackle operations management was the Scottish philosopher - and father of modern economics - Adam Smith. In 1776 Smith wrote "The Wealth of Nations," in which he described the division of labor. According to Smith, if the workers

they divided their tasks, then they could produce their products more efficient than if the same number of workers built products from start to finish. This concept would be used later by Henry Ford with the introduction of the Assembly line. We can also mention Henri Fayol and his 14 principles of administration.

Post-industrial revolution

During the industrial Revolution, machinery allowed factories to grow in capacity and greatly increased their production. Despite this growth, there was considerable inefficiency in production. Two individuals helped overcome these inefficiencies in the early 1900s: Frederick Winslow Taylor and Ford. Taylor developed a scientific approach to operations management, collecting data on production, analyzing this data and using it to improve operations. Ford increased production efficiency by introducing the production of the assembly line and improved the supply chain through delivery just in time.

After the Second World War

Technological developments during WWII created new possibilities for managers seeking to improve their operations. Specifically, the development of computer technology allowed a greater degree of data to be analyzed by companies. The capabilities of computers have continued to increase exponentially, allowing a high degree of data analysis and communication. Modern producers can now track their inventory of raw materials, through production and delivery.

Currently

Quality management systems are popular in operations management today. Quality management is a system for mapping, improving and monitoring operational processes. A variety of quality management systems are in use among major companies, with the most notable systems being the ISO systems Y Six sigma. These systems aim to increase the efficiency of business processes. Although operations management has typically dealt with the manufacturing process, the growth of the service industry has created a field of service operations management.