Operation and Logistics Management Essay Example | Topics and Well Written Essays - 2000 words

Operation and Logistics Management - Essay Example Hence, it brings value to the firms, in the form of profits by raising its productivity and the ratio of inputs to outputs (p.3); and to customers in improving the quality of products (Klassen 2005, p.1). As a transformation process, OM evolved from the production systems used during the Industrial Revolution known as craft production where highly-skilled artisans individually manufacture goods using simple tools to produce high-quality customised products (Finch 2004, p.7). During these times however, process management was not considered as an integral concept within production, such that individual workers were given free reign on their crafts, resulting to a slow and costly production process lacking uniform standards necessary for effective and efficient operations (Stevenson 2005, p.19). It was not until Taylor’s introduction of scientific management, that processes were given attention in business operations (p.19). Adopting Taylor’s proposal that there is â€Å"one best way† to accomplish tasks workers must follow, Ford developed the â€Å"assembly line† in manufacturing his T-Model, which introduced mass production and the concept of interchangeable parts, revolutionising the automotive industry and generating tremendous cost and time savings (Finch 2004, p.8). As Ford describes it, this new manufacturing process is â€Å"constrained only by the capabilities of the workforce and existing technology† (Chase, Aquilano & Jacobs 2006, p.16). While Ford’s production processes increased productivity and efficiency, it resulted to quality deficiencies, especially when compared to Japanese products that were superior to their US counterparts. This spawned the â€Å"quality revolution†, shifting OM to focus on designing production processes that improved quality, just as much as productivity and cost-efficiency (Stevenson 2005, p.21). Apart from the growing importance of production