The term dates back to the time when the field was known as "Data Processing." Back then, users did not perform their own data entry. Instead, they filled out coding sheets that were sent down to data entry to be punched onto decks of cardspunch-cards by data entry personnel. These card decks were physically queued up for processing by a person known as the "production scheduler." All software ran as part of a batch job stream at that point in time. The production scheduler was responsible for prioritizing jobs. He/she produced a daily of list of jobs that were to be run by computer operations.
Computer operations was a 24x7x365 production environment when I first entered the field. Glass houses were not the typical "lights out" self-operating data centers that they are today. Instead, they were inhabited by computer operators who started jobs, fed card decks, hung 9-track tapes, mounted/dismounted disk packs, and pulled listings from high-speed impact printers. The nastiest job of all was running a bursting machine. A bursting machine removed carbon paper from multipart fanfold paper. Bursting carbon paper from multipart fanfold paper is the reason why one often sees computer operators wearing lab coats in old data center photographs.