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L.C.O             The organization of companies

the production flows :

Any production flow break down :

- A order flow from the customer to the supplier,
- A delivery flow from the supplier to the customer.

Flow diagram of orders and deliveries between the company and the outside world.

Commandes

Livraisons

In this production flow, there are two stages : Customers place orders with the company that delivers them and secondly, the company orders the suppliers who deliver it.

In each step of a production flow there must be:

- A set of customers,
- A set of suppliers (at least one)
- A product catalog (implicit or explicit)
- Two exchange phases : order and / or delivery

We will see later that when the flows of production concern products of totally different natures, and which use different routes within the company, we will be led to define several flows. In the same way, when the third parties in relation to the company are different in nature or their exchanges are very different, it will be advisable to define several flows.

For the time being, we will study only the production flows related to the main activity of the company, the internal flows and the financial flows will be studied later (do not mix everything!)

Let us take an example illustrating multiple production flows linked to the main activity of a supermarket for which it is decided to sell to the public on the one hand and by correspondence on the other hand, Fresh produces and other products.

In this case, it is strongly recommended (considering the products of very different nature to be ordered from the suppliers, and the exchanges also very different from the customer orders) to define several production flows. There is also a very good chance that the corresponding internal flows will follow different paths.

Here is the corresponding diagram :

The figure above should not suggest that customers who come to the store can not buy anything other than fresh produce. Our diagram shows what happens from the outside and what comes out of it. The flow of orders and deliveries within the system remains to be fully discovered.

We have just seen the company considered as production system, in its environment, we will now examine its internal composition!

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