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L.C.O             The organization of companies

An example of order flow:

We will develop an example relating to a flow of orders, in order to show that although the functions of each section have been defined, the rules governing their exchanges must also be perfectly determined.

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Either a company in which we have defined six sections directly contributing to the production: Purchase, store, manufacture, shipping, commercial sectors and agencies. The purchasing section ensures the supply of spare parts, the store stores them, the manufacture transforms the spare parts to obtain the finished products, the shipping section ensures the delivery of the products that the agencies put in place at the customers, the commercial section ensures the Taking orders.

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Here is the diagram of the sections of this company :

The function of each section has been determined, but the flow of commands is not defined. Who, for example, commercial, manufacturing or shipping section, controls the implementation of products by the agencies ?

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It is also possible to design the distribution of orders from the commercial to the manufacturing for the production, and to the agencies for the installation of the products.

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One could also conceive the transmission of the orders of the salesman towards the manufacture, with charge for the manufacture to order the purchases of spare parts, their reception by the store, the deliveries by the expeditions section (shipping section), and the implementation by the agencies.

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We will provide the schema of the first solution:

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