TALLINN UNIVERSITY OF TECHNOLOGY
School of Economics and Business Administration
Tallinn, Estonia, 2013
Table of Content
1.1 Industrial Revolution3
1.2 Scientific Management – Ford and Taylor4
2.1 Future Trends – Bitcoins and 3D Printing4
1.1 Industrial Revolution
The Industrial Revolution started in 1770 in England, and spread from there to the rest of the Europe and North America around the 19th century. During this time it was common that the production consisted of single and simple products, made by one skilled handcraft man from its beginning to its end. Later on during the 18th century some remarkable innovation transferred the way of production forever. Steam machine which was the most revolutionizing, because it provided a source of power to operate machines in factories. Followed by the spinning Jenny and the power loom. Production moved from costly and time taking production of single handcraft men to faster production with a bigger volume. Craft production had major shortcomings. Because products were made by skilled craftsmen who custom fitted parts, production was slow and costly. And when parts failed, the replacements also had to be custom made, which was also slow and costly. A major change occurred that gave the Industrial Revolution a boost: the development of standard gauging systems. This greatly reduced the need for custom-made goods. Factories began to spring up and grow rapidly, providing jobs for countless people who were attracted in large numbers from rural areas.
1.2 Scientific Management – Ford and Taylor
Observation, measurement, analysis and improvement of work methods, and economic incentives, those were the factors that Frederick Winslow Taylor believed in a scientific management. Taylor is referred as the father of scientific management. He studied the methods of working by...