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    1. Modern production planning methods developed in the late 19th century under Scientific Management, where each worker's tasks were mapped out in advance. However, the origins of production planning date back another century. 2. In the early 19th century, factories and industries like textile mills and railroads developed internal administrative procedures to coordinate complex multi-step production processes. As factories grew larger but not necessarily more complex, foremen planned production without separate staff. 3. Early production scheduling was simple, listing only start and due dates without details on operation times or order durations. By the 1920s, production planning was recognized as vital for management, but many companies still lacked effective planning for smooth material flow and minimal inventory costs

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    1. Modern production planning methods developed in the late 19th century under Scientific Management, where each worker's tasks were mapped out in advance. However, the origins of production planning date back another century. 2. In the early 19th century, factories and industries like textile mills and railroads developed internal administrative procedures to coordinate complex multi-step production processes. As factories grew larger but not necessarily more complex, foremen planned production without separate staff. 3. Early production scheduling was simple, listing only start and due dates without details on operation times or order durations. By the 1920s, production planning was recognized as vital for management, but many companies still lacked effective planning for smooth material flow and minimal inventory costs

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    7 views2 pages

    INTRODUCTION

    Uploaded by

    Edison pa
    1. Modern production planning methods developed in the late 19th century under Scientific Management, where each worker's tasks were mapped out in advance. However, the origins of production planning date back another century. 2. In the early 19th century, factories and industries like textile mills and railroads developed internal administrative procedures to coordinate complex multi-step production processes. As factories grew larger but not necessarily more complex, foremen planned production without separate staff. 3. Early production scheduling was simple, listing only start and due dates without details on operation times or order durations. By the 1920s, production planning was recognized as vital for management, but many companies still lacked effective planning for smooth material flow and minimal inventory costs

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    1.

    INTRODUCTION

    History of Product Planning:

    Modern production planning methods and tools have been developed since late 19th century.
    Under Scientific Management, the work for each man or each machine is mapped out in
    advance (see image). The origin of production planning back goes another
    century. Kaplan (1986) summarized that "the demand for information for internal planning
    and control apparently arose in the first half of the 19th century when firms, such as textile
    mills and railroads, had to devise internal administrative procedures to coordinate the
    multiple processes involved in the performance of the basic activity (the conversion of raw
    materials into finished goods by textile mills, the transportation of passengers and freight by
    the railroads.

    Herrmann (1996) further describes the circumstances in which new methods for internal
    planning and control evolved: "The first factories were quite simple and relatively small.
    They produced a small number of products in large batches. Productivity gains came from
    using interchangeable parts to eliminate time-consuming fitting operations. Through the late
    1800s, manufacturing firms were concerned with maximizing the productivity of the
    expensive equipment in the factory. Keeping utilization high was an important objective.
    Foremen ruled their shops, coordinating all of the activities needed for the limited number of
    products for which they were responsible. They hired operators, purchased materials,
    managed production, and delivered the product. They were experts with superior technical
    skills, and they (not a separate staff of clerks) planned production. Even as factories grew,
    they were just bigger, not more complex."

    About production planning Herrmann (1996) recounts that "production scheduling started
    simply also. Schedules, when used at all, listed only when work on an order should begin or
    when the order is due. They didn't provide any information about how long the total order
    should take or about the time required for individual operations.

    In 1923 Industrial Management cited a Mr. Owens who had observed: "Production planning


    is rapidly becoming one of the most vital necessities of management. It is true that every
    establishment, no matter how large or how small has production planning in some form ; but
    a large percentage of these do not have planning that makes for an even flow of material, and
    a minimum amount of money tied up in inventories.

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