a whole. In this context, production involves 3 subsystems. Type of System Definition 1.Production System Involves conversion of inputs into a set of desired output. 2.Conversion sub-system Sub-system of production system where conversion 2
take place 3.Control sub-system Sub-system of production system which monitors the activities 2.Production as an organization function The core of production function is its conversion system which is present in form or other in all the organizations. Every organization is engaged in some form of production:, either in the production of goods/services 3. Decision Making in production At each level production managers are required to take and implement various decisions. Various decisions taken by the operation mangers are classified into a. Strategic decisions b. Operating decision c. Controlling decisions Evolution of production Function/System In order to study about the evolution of production function /system we need to study about 7 different historical developments. HANDICRAFTS ERA INDUSTRIAL REVOLUTION SCIENTIFIC MANAGEMENT HUMAN RELATIONS MOVEMENT OPERATIONS RESEARCH COMPUTERS & ADVANCED PRODUCTION TECHNOLOGY SERVICE REVOLUTION Handicrafts Era was the time when no machines were used in the production system. Most of the production takes place with the help of manpower. Production systems prior to 1700s are often referred to as cottage systems, because the production of 3
goods take place in homes or cottages, where craftsmen directed apprentices in performing hand work in products. From 1770 to the early 1800’s , series of events took place in England which together are called Industrial revolution. Industrial revolution resulted in two major developments: widespread substitution of machine power for human power and establishment of the factory system. The availability of machine power greatly facilitated the gathering of workers in factories that housed the machines. The large number of workers congregated in the, created the need for organizing them in logical ways to produce goods. The publication of Adam Smith ‘s Wealth of Nations in 1776 advocated the benefits of the division of labour or specialization of labour, which broke production of goods into small specialized tasks that were assigned to workers on production lines. Thus the factories of late 1700’s not only had developed production machinery, but also the ways of planning and controlling the output of workers. As days went by, production capacities expanded, demand for capital grew and labour became highly dependent on jobs. At the commencement of the 20 th Century, the one element that was missing was management. Scientific Management The missing input, management was ably provided by scientific management.
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