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Unit 1: Operations Management Basics

manner were introduced. Some of these that had a significant impact on business practice and Notes
performance were Material Requirements Planning (MRP) systems, then later concepts such as
Just-In-Time (JIT), and Total Quality Management (TQM), etc. By the end of the 1980s, researchers
and practitioners were using a broader set of paradigms in their quest to improve operations.
Researchers were beginning to examine higher-level issues in manufacturing strategy using an
empirical approach.

Notes Toyota Production System-Autonomation
Although JIT systems control production quantities, defects would stop the flow of parts
to subsequent operations. Such a situation is avoided by a concept called an Autonomation
System. This is a Toyota coined word that means ‘autonomous defects control’. It is a
worker controlled quality program.
There are two versions of this. In mechanical equipment, this system is called Baka-yoke
by Toyota. Machines in their factories are equipped with automatic stopping devices that
detect defective parts. As soon as a defective part is detected, the machine comes to a stop
so as to prevent flow of defective parts to the next operation. In manual systems, such as
assembly operations, the system is called Andon. It is implemented through the worker,
who is required to press a stop button that interrupts the line, when defective parts are
detected. This prevents defective items from being produced in any quantity. The line is
restarted when the problem has been solved.
In addition, the Yo-î-don system is used to extend the concept of teamwork on the shop floor
and ensure that work at the various work stations is balanced. The system involves teamwork
between adjacent operations. As workers at each station complete their work, they press a
button. At the end of the cycle time, a red light lights up at the work stations where the work
is not completed. The entire line stops and normally others nearby pitch in to help workers
having difficulty. The line starts again when all the red lights are off again.

1.1.4 The 1990s and After

The changes and challenges of the 1970s and 1980s generated a sense of identity crisis in
Operations Management. The disillusionment with Operations Management, however, was
short lived. There was a refocusing of research questions. This was a crucial driver of growth of
the field in the 1990s. Particularly, the research focus became more managerial (e.g., focusing on
system design, information, and incentives) and less on tactical execution.
Another more important reason for the re-emerging importance of Operations Management
was developments in the field of computers and communications technology. By the end of the
1980s, as the computational capacity increased dramatically, computers found use in design and
production; and newer models were developed for solving operations problems. These models
were application based and did not require extensive knowledge of mathematics.
Table 1.1: Historical Milestones in Operations Management

Date Initiator Event
1875 James Watt The Steam Engine was commercially manufactured
1899 Eli Whitney Introduced mass production and the concept of
standard interchangeable parts
1900 Frederick W. Taylor Scientific Management
1900 Frank & Lillian Gilbreth Time & Motion Studies Contd...
1901 Henry H. Gantt Scheduling
1905 Henry Ford Assembly Line
1905 Alfred P. Sloan LOVELY PROFESSIONAL UNIVERSITY 5
Organizational Management
1927 Elton Mayo Human Resources Movement
1931 Walter A. Shewart; Quality Control Charts
1935 H.F. Dodge & H.G. Romig Statistical Sampling applied to quality control
1940 P.M.S. Blacket et al Operations Research Applications
1947 George B. Dantzig et al Linear Programming
1950 A. Charnes, W.W. Cooper & H. Non-linear and Stochastic Processes Programming
Raiffa
1970 J. Orlicky & O. Wright Computer applications to Manufacturing – Material
Requirement Planning (MRP)
1980 W.E. Deming, Philip Crosby & Quality and productivity applications from Japan;
J. Juran Computer aided Design and Manufacturing (CAD
General Motors & IBM /CAM); Robotics,
1990 Netscape, US Department of Internet, Electronic Enterprise
Defense Business Process Reengineering
Michael Hammer, James
Champy
2000 Amazon, eBay, Yahoo, America E-commerce,
Online Agile Manufacturing, High performance Work
Dr. Daniel Whitney and systems
Professor Charles Fine, MIT