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c 

 

  
d d replaced people with machines
d d water and mule power instead of human power
d d nature of production changed from cottage to factory

× 
d d steam engine - in use by 1785

 
1794 - built first cotton gin to separate cotton seeds from cotton fibers.
1799 - began mass production of muskets
d d introduced concept of standard O   

to allow the use of
less skilled labour to produce muskets.
d d Development of the machine tool industry - metal tools and machines now
possible (late 1700's).


   

     
d d Principles of O O O
   - 1911
1. Scientific laws govern work so scientific methods can be used to analyze work
2. Workers are different so match workers to their job and then train them
thoroughly
3. Use employee self-interest to motivate
4. Separate the responsibilities of workers and managers.

        


d d all equipment, workers and tasks are part of a manufacturing system whose
performance should be maximized

D  
d d Early 1900s - introduced assembly line manufacturing to produce Model T
cars
d d durable, inexpensive automobile
d d extensive vertical integration
d d coordinated supply and production was really the first Just In Time
production

Ford Model T
[  !" "#×"
d d CEO of General Motors - 1923-1946
d d Competed with Ford through innovation
d d Developed strategy of marketing different cars with different features and
prices
Installment selling (GMAC), used car trade -ins, automotive styling, annual
design changes

D $   
 
- Examined psychological factors in manufacturing
D 
O - 1927 ± to examine the effect of light on work
d d Considered the role of treatment of employees in production

c    


  
- Many management science techniques were developed in the war as a means of
controlling and allocating the resources required to fight the war.
- The most difficult problems ever to challenge managers
- Problems ranged from resource allocation and logist ics to rapid calculation of
artillery trajectories

  c  


- Computational capacity increased dramatically
- Computers are now involved in design and production
- Development of models for solving operations problems
- Communication improvements increased capability

Computers/Communications
- Combination of computer and communication advances are reshaping the way we
do business and service activities
- AOL/Time Warner Merger

Advances in Computing ± 1981 - 2001


- Speed
d d 272 time faster
- Memory
d d 62,500 times more
- Cost
d d 28.8% of 1981 cost

Computers and Communication - examples


- Operating by remote control
- Not your usual book store



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