What is the history of production management?

Answer 1

1. Adam Smith

The first person who attempted production improvement, was Adam Smith in 1776. During this stage,

Operation

1. It involves rendering of kind of services, such

as electricity, cooking gas etc.

2. It is used in a broad sense.

3. It is applied to non-manufacturing

organizations, such as Banks, Insurance,

agriculture, transportation, warehousing, etc.

4. There is nothing like closing stock.

5. Demand for services fluctuate time to time.

Production

1. It involves manufacturing of a tangible

product

2. It is used in a narrow sense

3. It is applied to manufacturing

organisations, such as industry

4. It will have closing stock at the end of

an accounting year

5. Demand for the product is regular factory system was in its infancy. His main contribution to production management was the extension of the principle of division of labour to industrial activities. The application of division of labour results in three benefits, which are as follows:

(i) Improvement of skill owing to repeated operations.

(ii) Savings in time as it does not need change from one activity to another.

(iii) Specialisation leads to invention in machines and methods.

The above advantages of division of labour result in increased output.

2. Charles Babbage

In the year 1832, the British Mathematician Charles Babbage published his book entitled. "The Economics

of Machinery and Manufactures". His main contribution to production management are as follows:

(a) Division of labour: In his masterpiece work on "The Economy of Machinery and

Manufacture," Babbage explained the benefits arising out of specialization,

(b) Use of science and mathematics: He advocated the practice of scientific method of

production instead of the traditional manufacturing process, and

(c) Emphasis on cost reduction: He suggested that every effort must be made to reduce cost

by adopting new and improved methods of production.

3. James Watt and Mathew Robinson Boulton

James Watt, the junior and Mathew R. Boulton were the sons of the inventors of steam engine. Their

contribution to production management are as follows:

(a) Planned machine layout in factories.

(b) Production planning.

(c) Use of records to calculate cost of production and profit.

(d) Training and development programme for workers.

(e) Work study and payment by output.

4. F. W. Taylor

F. W. Taylor's major publications are: "A Piece Rate System (1895), Shop Management (1903) and

The Principles of Scientific Management." His major contribution to production management are as

follows:

(a) A clearly defined daily task: Each man in the establishment, high or low, should daily have

a clearly defined task laid out before him.

(b) Standard conditions: The workers should be given such standardised conditions and

appliances as will enable him to accomplish his task with certainty.

(c) Higher pay for success: The worker should be sure of higher pay when he accomplishes

his task. The emphasis is on the importance of "the coupling of high wages for workmen

with low labour cost for the employer" and as a result, the public will benefit from lower

prices.

(d) Loss in the case of failure: When, a workman fails, he should be sure that sooner or later

he will be the loser for it.

5. Subsequent developments

After the World War II the theory and technique of production management began to improve. Many

researches were conducted the latest development being linear programme. This technique helped in solving allocation of limited resources. Introduction of computers and internet further helped in

automation. The process of information dissemination.

6. Present Position

Since Adam Smith, we have progressed in every field of production. Production and productive capacity

have increased and design, equipment and house building technologies have developed. We have improved

industrial relations and quality of our products and services.