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Historical Development of OM

The document summarizes major developments in operations management from the 1700s to the present. Some key developments from 1700s-1980s included the industrial revolution, scientific management, human relations movement, and just-in-time systems. Major developments from 1980s-present included re-engineering, global competition, supply chain management, electronic commerce, outsourcing, and big data analytics. The document categorizes these developments chronologically and provides brief descriptions of each.

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Muhammad Bashir
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395 views3 pages

Historical Development of OM

The document summarizes major developments in operations management from the 1700s to the present. Some key developments from 1700s-1980s included the industrial revolution, scientific management, human relations movement, and just-in-time systems. Major developments from 1980s-present included re-engineering, global competition, supply chain management, electronic commerce, outsourcing, and big data analytics. The document categorizes these developments chronologically and provides brief descriptions of each.

Uploaded by

Muhammad Bashir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Muhammad Albishir

A00021918

QBA 202

1st June, 2022

Major Historical Developments of Operations Management (OM): 1700s – Date

Many organizations have adopted operations management, which has proven to be a

bridge to a company's success as well as economic progress of nations over time. It (OM)

entails complete control over the usage of resources and other raw materials, as well as their

transformation into more value goods. Businesses have benefited from the utilization of

developments linked with the notion ever since, resulting in high economic growth rates in

many countries.

This paper will highlight the advances of Operations Management (OM) by

categorizing the the dates into two, 1700s – 1980s and then 1980s – present then further

discussing the events in both categories. The major developments between 1700s to 1980s

include industrial revolution, scientific management, human relations movement,

management science, computer age, environmental issues, just-in-time systems (JIT) and

total quality management (TQM). Major developments from 1980s to present on the other

hand include major milestones such as re-engineering, global competition, flexibility, time-

based competition, supply chain management, electronic commerce (e-commerce),

outsourcing and flattening of the world and big data analysis.

1700s – 1980s:

 Industrial revolution (Late 1700s): This phase brought about the capacity of machines

to aid in production rather than humans executing every single process of production

as it used to be.
 Scientific management (Early 1900s): This development in operation management

brought the ideas of technical aspects of work design and development of moving

assembly lines and mass production, as well as the principles of analysis and

measurement.

 Human relations movement (1930s – 1960s): Understanding human aspects of job

design, such as worker motivation and job satisfaction, was the main priority of this

development.

 Management science (1940s – 1960s): The main aim of this development was to

establish qualitative strategies and techniques to solve operational challenges.

 Computer age (1960s): This development brought a whole new development where

machines had the capability of processing huge amounts of data which enabled

widespread use of quantitative processes.

 Environmental issues (1970s): This development put into account waste

minimization, recycling, and product reuse.

 Just-in-time systems (1980s): This brought about high level production using minimal

inventory.

 Total quality management (1980s): This was a successful attempt in eliminating

causes of production defects by deciding the superiority or inferiority of a product.

1980s – Present

 Re-engineering (1980s): This development was brought about because it was

deemed necessary to redesign and reengineer a company’s processes in order to

achieve an increased efficiency with minimal cost.

 Global competition (1980s): This brought above the enabling operations to

compete in the global market.


 Flexibility (1990s): Customization on a large scale was made available in order to

fit the exact customer needs rather than compelling customers to patronize the

only what a company makes available.

 Time-based competition (1990s): Here, it was understood that customers have

started to pay attention to how fast and quick company’s could deliver. So this led

to the development known as time-based competition.

 Supply chain management (1990s): The goal of this project was to decrease the

overall cost of the system that regulates the movement of materials and

information from suppliers to end users.

 Electronic commerce (2000s): This milestone utilized the introduction of the

internet and World Wide Web to electrically purchase and have transactions

virtually and instantaneously.

 Outsourcing and flattening of the world (2000s): Because of technological

convergence, practically every work possible could now be outsourced from

anywhere on the planet, therefore, effectively flattening the world.

 Big data analytics (2010- present): This emergence adopted the use of statistical

methods to understand large volumes of data be it structured or unstructured to

aid better operational processes.

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