2 Chapter 1 Introduction to Management Challenges for Engineers
1.2 HISTORICAL DEVELOPMENT OF MANAGEMENT THEORY AND PRACTICES
From the management practices of building the Great Wall in China and the Pyramids in Egypt to the customer-focused, supply-chain management strategies of today's global companies, we have come a very long way indeed. This section reviews a slew of major milestones in the historical development of management theory and practices (Compton 1997; Babcock 1996). (See Table 1.1.)
• George (1972) summarized many of the ancient management thoughts related to
major historical projects, such as the Great Wall in China, the Pyramids of Egypt, monoliths on Easter Island, Mayan Temples in South America, Stonehenge in England, and others. The Pyramids of Egypt (2500 B.c.) represent a remarkable engineering feat, but they are equally notable for the management skills that went into their construction. Many parties (customers, subcontractors, and workers) had to be coordinated, controlled, and monitored. It was estimated to have taken 100,000 men from 20 to 30 years to complete one pyramid. Projects were completed on the basis of trial and error and intuition. There was no systematic documentation of the management strategy and methodology used for these great production-centered projects.
Chinese emperors (2350 B.C.) applied the principles of organizing, planning, directing, and controlling (George 1972). The constitution of Chow was the first known organization chart which specified the roles and responsibilities of officials reporting to the Chinese emperors. Around 500 B.c., the Persian Empire developed a logistic system for transmitting messages by creating posting stations separated from one another by the distance of one day's horse ride, so that the 2600-kilometer-long Royal Road could be traversed in only nine days. Sun Tzu wrote the well-known book The Art of War, which offered specific guidelines for strategic and tactical planning in waging wars. India (321 B.c.) was also known to have applied concepts relating to government, commerce, and customs. Alexander the Great (336-323 B.C.) developed an informal council whose members were each entrusted with specific responsibilities. In 120 B.C., the Chinese started to select government officials objectively by holding public examinations. This system has been in use ever since.
The Arsenal of Venice was a large industrial plant (1436), the government ship
yard, that was designed to make galleys, arms, and equipment; to store equipment; and to assemble and refit ships on reserve. An assembly-line process was practiced to outfit ships. Also implemented were inventory control, personnel policies, standardization of specifications, accounting (double-entry bookkeeping), and cost control.
James Watt developed the steam engine in 1769. The steam engine, along with
many other inventions during this era, changed the ways products were manufactured. Factories were built and workers were assembled.The Industrial Revolution destroyed the cottage industry in England. Chaos erupted due to crime, brutality, child labor, and overcrowded living conditions for workers. By 1800, factory layout planning, inventory control, production planning, workflow analysis, and cost analysis were developed in response to this factory chaos. Production management became the driving force to achieve productivity.
In 1790, emigrants from England set up textile mills in the United States. Railroads,
steel mills, and canals were built. Industrial development in the United States was started.
2 Chapter 1 Introduction to Management Challenges for Engineers1.2 HISTORICAL DEVELOPMENT OF MANAGEMENT THEORY AND PRACTICESFrom the management practices of building the Great Wall in China and the Pyramids in Egypt to the customer-focused, supply-chain management strategies of today's global companies, we have come a very long way indeed. This section reviews a slew of major milestones in the historical development of management theory and practices (Compton 1997; Babcock 1996). (See Table 1.1.)• George (1972) summarized many of the ancient management thoughts related tomajor historical projects, such as the Great Wall in China, the Pyramids of Egypt, monoliths on Easter Island, Mayan Temples in South America, Stonehenge in England, and others. The Pyramids of Egypt (2500 B.c.) represent a remarkable engineering feat, but they are equally notable for the management skills that went into their construction. Many parties (customers, subcontractors, and workers) had to be coordinated, controlled, and monitored. It was estimated to have taken 100,000 men from 20 to 30 years to complete one pyramid. Projects were completed on the basis of trial and error and intuition. There was no systematic documentation of the management strategy and methodology used for these great production-centered projects.Chinese emperors (2350 B.C.) applied the principles of organizing, planning, directing, and controlling (George 1972). The constitution of Chow was the first known organization chart which specified the roles and responsibilities of officials reporting to the Chinese emperors. Around 500 B.c., the Persian Empire developed a logistic system for transmitting messages by creating posting stations separated from one another by the distance of one day's horse ride, so that the 2600-kilometer-long Royal Road could be traversed in only nine days. Sun Tzu wrote the well-known book The Art of War, which offered specific guidelines for strategic and tactical planning in waging wars. India (321 B.c.) was also known to have applied concepts relating to government, commerce, and customs. Alexander the Great (336-323 B.C.) developed an informal council whose members were each entrusted with specific responsibilities. In 120 B.C., the Chinese started to select government officials objectively by holding public examinations. This system has been in use ever since.The Arsenal of Venice was a large industrial plant (1436), the government shipyard, that was designed to make galleys, arms, and equipment; to store equipment; and to assemble and refit ships on reserve. An assembly-line process was practiced to outfit ships. Also implemented were inventory control, personnel policies, standardization of specifications, accounting (double-entry bookkeeping), and cost control.James Watt developed the steam engine in 1769. The steam engine, along withmany other inventions during this era, changed the ways products were manufactured. Factories were built and workers were assembled.The Industrial Revolution destroyed the cottage industry in England. Chaos erupted due to crime, brutality, child labor, and overcrowded living conditions for workers. By 1800, factory layout planning, inventory control, production planning, workflow analysis, and cost analysis were developed in response to this factory chaos. Production management became the driving force to achieve productivity.In 1790, emigrants from England set up textile mills in the United States. Railroads,steel mills, and canals were built. Industrial development in the United States was started.
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