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1. Evolution of operation management and contributions made by each stage to development of operation management as a whole.
Operation or production management one of become key function of an organization, either it is manufacturer or service provider. Although currently, operation management is vital part of a business organization, field of operation management has passed many of stages to make unique place. Early cottage industry is the starting point of operation management and now it has achieved up to automated industry after the interesting evolution process. Cottage Industry Accordingly to the world history, early human had self-sufficient system to fulfill their needs and wants then it was took place to BATER system where the exchanging of goods among people. As a view of operation management it is better to start with prior to the 1700 where the economies had cottage industry as major contributor. Basically cottage industry focused on production of custom-made goods in order to fulfill market demand. In this stage no one had idea about operation management as a field or concept but cottages managed their production process by common knowledge.In this stage, Production of one good was responsible by one person until it finished. Goods were heterogeneous each other and parts were not interchangeablealthough it is same good. Technology was poor and simple tools and methods were available for production. Industrial Revolution This is the diversion stage of production process in to revolution way with the invention of steam engine by James Watt (1764). It made power source to operate machines and other industrial equipments. Industrial revolution was begun as a result of new inventions related to the manufacturing such as durable iron made machines, power generating sources and etc Productions of goods were organizing in mass scale. Especially machine oriented labor force emerges in the industrial revolution. Division of labor and job specialization was introduced by Adams Smith (1776) for manufacturing industry in order to achieve effective and efficient outcome of products. Although production processes in the industry, management of production process not gained significant influence by organizations.

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Scientific Management This is the era manufacturing industries had significance impacts from managerial functions. The father of scientific management Frederick W Taylor (1900s) continued the works with Adams Smiths theory of production systems and introduced many approaches to the production processrelated to labor efficiency such as right jobs, training, work methods and tools and legitimate paying system. Many of researchers and experts worked on developing efficiency methods by labor oriented strategies. Such as Frank and Lillian Gilbreth Motion study and industrial psychology Henry L. Gantt Scheduling and the Gantt chart Moving Assembly Line (1913) Labor specialization reduced assembly time. In this stage also not had a concentration of production management as a whole rather than considering factor wise efficiency. Human Relation/ Human Resources In 1930 Hawthorne studies gained significant influences on human resource management with the concepts of motivation, work environment designs, etc Other than the looking at only production efficiency of organization, human resource satisfaction and work efficiency came to the front in this stage. Bit concentration of production management came to the field in this era. The field of management was more developed on scientific bases in this time period. Many of management sciences were developed in mid 1900s and it is highly impacted to the operation management as well.

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World War II The time of 1940 with World War II, emergencymethods were required to manage logistics and weapon control systems. Many of techniques and tools were developed for production processes for in order to efficient the processes. Technological Development In the 1950s and 1960s it was staring the rapid growth of technology in relation to the every field of world. Research and development showed the way to integrated technologies all over the world. Operation management was beginning to emerge in industries, with the new technological development of process engineering and operations research. Computer Age &Boom of Service Sector Innovation of computer for domestic use is the starting point of current automated era. In 1970s computer and information systems began to support for industries to make integrated operation management systems. Basement for operation management lay with technological development of 1950s and 1960s. With the information system development with new technology gained boom to the service sector. Service sector boom is the key point that established operation management as a unique field of organizations. Such as Internet, virtual business places, globalization gained new face to the operation management as well. Automated Industry Operation management is vital sector in an organization. Organizations are running on newly developed technologies whether it is manufacturing or service providing industry. Integration of information systems and operation management has made various sections within an organization in order to maximize efficiency and effectiveness. Examples for Integrated solutions approaches Business process reengineering Supply chain management Systems integration (SAP)

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Production Management Production Management become widely accepted form the 1930 to 1970s. The concept of production management is concerned with the minimization of waste and increasing efficiency in manufacturing activity(ies). Economists, mathematicians and computer scientists contributed in the field of production management. Psychological and human behavior in work environment has begun to study(Adhikari, 2010).

Major contributions by key contributors to operation management Era Industrial Revolution Scientific Management Human Relations Technological Development Automated Industry Contributor Adams Smith Fredrick w. Taylor Elton Mayo Japanese Manufactures Numerous Contribution Division of Labor, labor specialization Principles of scientific management Hawthorne studies on worker motivation Emphasis on quality, flexibility, time based competition Internet

(Open Univeristy Sri Lanka, 2005)

Assignment No: 403

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2. Characteristics which can be used to differentiate goods from services

Goods are tangible while Services are intangible.

Goods are physical objects that can be touched by any person. But services cannot be touched, see or taste. Intangible can be defied as incapable of being perceived by the senses. Goods can separable and Services cannot be

Goods are physical objects as previously explained and same time goods can separate parts wise. Services are mostly embedded skills or abilities of a person that offer for another party. It cant be separated from the person that holds. Transferable and Non transferable

Ownership of a good can be transferable from one party to another. But as services cannot be separated, it cannot be transferable to another person. Goods can be inventoried and Services cannot be inventoried

Goods can be stored in ware houses, vehicles, refrigerators or elsewhere accordingly to the goods types. But Services cannot be stored anywhere. As services are embedded thing for a men. Goods have not interaction with customer and the process but Services do have the direct interaction with customer and the process. Goods are tangible physical objects which are manufactured in anindustry and coming to the market. It has not customer relation with the production process. Customers buy goods from where it available without considering production process. But services have to be provided in front of customers. The customer aware about the process of the service and service provider has to directly deal with the customer.

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3. Key components of the basic operations management model

Operation management can be defined as Management of the conversion process which transforms inputs such as raw material and labor into outputs in the form of finished goods and services. Basic operation management model typically has three steps.

Figure 1-: Basic operation management model of a business

Manufacturing of Goods
If we take a garment industry to evaluate the operation model of a manufacturing of goods, model components can be elaborated as follows. Inputs Garment industry produces finished cloths to the market. In order to produce clothes, industry needs following materials and factors as inputs. Raw Materials Raw cloths, Buttons, threads, Etc... In garment industry most of raw materials import from another place, rather than manufacturing by itself. Equipments Garment cloth machines, cutting machines, scissors, etc Large scale Machine equipments have to be fixed with initial stage of the industry. Other micro level equipments have to be supplied in the process of work continues.

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Labor Garment servants, Supervisors, Specialists, Executives are examples for labor inputs in the process of garment manufacturing. Management, finance, knowledge, timeare some of other key inputs in the process of the Garment industry.

Transformation Process Above mentioned inputs go through the transformation process, which is transform, the raw materials in to the finish cloths. Transformation process includes altering, cutting, sewing, fixing, packing of cloths. Industries have different section for each transform work. Managing, transporting, storing also some of hided transformation works in garment industries have.

Outputs The main output of the garment industry is finished cloths with different fashions, models and categories.

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Delivering Services Health care service delivery (Hospital) has taken to consideration in order to illustrate the operation process. The prime input of the hospital is patients. In order to supply service to the patients, hospital should be facilitated with certain unique resources. Following model well explains the basic operations of a hospital.

Figure 2-: Basic operation management model of a Hospital