The Wealth of Nations by Adam Smith is perhaps one of the most influential books on Economics in every history. However, few people know that it’s in this publication that the thought of improving processes to increase efficiency and therefore profit was born. Although Adam Smith called it division of labor and not business process management, he was discussing the same idea.
Adam Smith spoke about a vintage pin stock where each laborer would produce the whole pin i.e. from natural material to completed product himself. Smith noticed that the majority of time of such a laborer was spent in moving in one job to some other and switching tools required for different careers.
This time, he concluded, had been spent in an unproductive manner. Adam Smith also recognized that such simplification of specific tasks managed to get easy for the workers to increase their dexterity. The productivity increased more as employees went faster up the learning curve even. As the jobs were being reduced to simple tasks Lastly, an impetus was presented with because of it to mechanization. It is easier to make a machine to do one area of the process, rather than to make a machine to do the whole process. The above mentioned example by Adam Smith showed that it was possible to raise the productivity by a factor of 10 or even more if processes were efficient enough.
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