most important person in the history of

PRODUCTION &
OPERATYIONS.
H. Naim, Raniya
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Adam Smith
and The Craft Production System

Adam Smith was an 18th-century Scottish economist, philosopher, and

author who is considered the father of modern economics. Smith argued
against mercantilism and was a major proponent of laissez-faire economic
policies. In his first book, The Theory of Moral Sentiments, Smith
proposed the idea of an invisible hand—the tendency of free markets to
regulate themselves using competition, supply and demand, and self-
interest.
Craft production is manufacturing by hand, with or without the aid of toolsIn craft
production, goods are made by hand. Before the days of mass production, all
manufactured goods were created one by one using the process of handicraft. Adam
Smith’s Pin Factory is his only clear example of how an economy can grow through
innovation. Smith argued that workers could produce more if they specialized. He gave
the example of a pin factory based on his real-life observations. One worker who did all
the operations necessary to make a single pin, he said, could produce no more than 20 in
one day. Ten workers could make 200 pins this way.
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Smith argued that if all production could be specialized like the pin factory, workers
could produce more of everything.
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ELI WHITNEY &

THE EFFICIENT PRODUCTION SYSTEM

Eli Whitney, (born December 8, 1765, Westboro, Massachusetts

[U.S.]—died January 8, 1825, New Haven, Connecticut, U.S.),
American inventor, mechanical engineer, and manufacturer, best
remembered as the inventor of the cotton gin but most important for
developing the concept of mass production of interchangeable parts.

Productive efficiency is when you are using your limited

resources to their fullest potential. Waste is at its lowest point
possible. Production cannot increase without adding more of
those resources

The rise of interchangeable parts, popularized in America

when Eli Whitney used them to assemble muskets in the first
years of the 19th century, allowed relatively unskilled workers
to produce large numbers of weapons quickly and at lower
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cost, and made repair and replacement of parts infinitely

easier.
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FREDERICK TAYLOR
& THE SCIENTIFIC MANAGEMENT

Frederick W. Taylor, in full Frederick Winslow Taylor, (born March 20,

1856, Philadelphia, Pennsylvania, U.S.—died March 21, 1915, Philadelphia),
American inventor and engineer who is known as the father of scientific
management. His system of industrial management, known as Taylorism, greatly
influenced the development of industrial engineering and
production management throughout the world.

In 1909, Taylor published "The Principles of Scientific Management." In this,

he proposed that by optimizing and simplifying jobs, productivity would
increase. He also advanced the idea that workers and managers needed to
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cooperate with one another. Taylor also believed that management should be
responsible for planning, carefully selecting and training workers, finding the
best way to perform each job, achieving cooperation between management and
workers, and separating management activities from work activities.
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HENRY FORD & MASS PRODUCTION SYSTEM

Mass production is the manufacturing of large quantities of

standardized products, often using assembly lines or automation
technology. Mass production facilitates the efficient production of a
large number of similar products.

Ford offer a new way of manufacturing a large number of vehicles. This

method of production was the moving assembly line.On December 1,
1913, Henry Ford installs the first moving assembly line for the mass
production of an entire automobile. His innovation reduced the time it
took to build a car from more than 12 hours to one hour and 33 minutes.

What made this assembly line unique was the movement element.
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Henry Ford famously remarked that the use of the moving assembly line Henry Ford, (born July 30, 1863,
allowed for the work to be taken to workers rather than the worker Wayne county, Michigan, U.S.—died
moving to and around the vehicle. The innovation of the moving April 7, 1947, Dearborn, Michigan),
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assembly line cut the number of workers required and reduced the American industrialist who
time it took to assemble a car. It also gave the company more control revolutionized factory production with
over the pace. his assembly-line methods.
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FRANK AND LILIAN GILBERTH

& THE HUMAN RELATIONS MVEMENT

Frank Bunker Gilbreth (July 7, 1868 – June 14, 1924) was an American engineer,
consultant, and author known as an early advocate of scientific management and a pioneer
of time and motion study, and is perhaps best known as the father and central figure of
Cheaper by the Dozen.

Lillian Evelyn Gilbreth (née Moller; May 24, 1878 – January 2, 1972) was an American
psychologist, industrial engineer, consultant, and educator who was an early pioneer in
applying psychology to time-and-motion studies.

Human Relations management theory is a premise of organizational psychology from the

early twentieth century, which suggests that employee productivity and motivation can be
increased through positive social bonds in the workplace and acknowledgement of the
worker as a unique individual.
.
The human relations movement was a crucial event in management history and a
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major contribution to today's style of leading. The behavioral sciences helped managers
and theorists understand how to increase productivity by ditching the primary focus on
organizations over their workers.
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F.W HARRIS & THE MATHEMATICAL MODELS

Ford Whitman Harris (August 8, 1877 – October 27, 1962) was an American
production engineer who derived the square-root formula for ordering inventory now
known as the economic order quantity, which has appeared in countless academic
articles and texts over the past 100 years

In 1915, the A. W. Shaw Company published The Library of Factory Management,

a set of six volumes. An edited version of Harris's EOQ paper was included as a
chapter under the title "What Quantity to Make at Once." For many years this chapter
was believed to have been the original presentation of the EOQ model.

Also referred to as 'optimum lot size,' the economic order quantity, or EOQ, is a
calculation designed to find the optimal order quantity for businesses to minimize
logistics costs, warehousing space, stockouts, and overstock costs. Inventory managers
calculate EOQ to minimize holding costs and excess inventory. Economic order
quantity is important because it helps companies manage their inventory efficiently.
Without inventory management techniques such as these, companies will tend to hold
too much inventory during periods of low demand while also holding too little
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inventory during periods of high demand.


William B. Smith, Jr. (1929 – 1993)
was the "father of Six Sigma". Born in
Brooklyn, New York, Smith graduated
from the U.S. Naval Academy in 1952
and studied at the
University of Minnesota School of
Management (now known as the
Carlson School of Management). In
1987, after working for nearly 35 years
in engineering and quality assurance,
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he joined Motorola, serving as vice
president and senior quality assurance
manager for the Land Mobile.
BILL SMITH AND MIKEL HARRY
& THE MATHEMATICAL MODELS
Mikel J. Harry (born: December
28, 1951; died: 25 April 2017) was a
statistician, quality expert, and
author who is credited for
developing Six Sigma, along with
Bill Smith. Harry was sometimes
referred to as the 'father of Six
Sigma'.
MARCH 2022 | OPERATION MANAGEMENT
Six Sigma (6σ) is a set of techniques and tools for process
improvement. It was introduced by American engineer Bill
Smith while working at Motorola in 1986. A six sigma
process is one in which 99.99966% of all opportunities to
produce some feature of a part are statistically expected to
be free of defects.
For Six Sigma, quality is about helping an organization
increase profit. In Six Sigma,quality is a value contributed
by a productive enterprise or activity
Six Sigma’s goals are preventing defect, reducing cycle
time, and minimizing costs. Six Sigma’s effectiveness
comes from its ability to identify and eliminate waste costs,
i.e. those that provide no value for customers.
Bill smith approach to His approach to Six Sigma was
simple, “If you want to improve something, involve the
people who are doing the job.”
 People have been managing work for hundreds of years,
and we can trace formal management ideas to the 1700s.
But the most significant developments in management
theory emerged in the 20th century. We owe much of our
understanding of managerial practices to the many
theorists of this period, who tried to understand how best
to conduct business.
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 THE END!
hope you learn something
while reading this material. Stay safe everyone.

05 - Pandas
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