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L.C.O             The organization of companies

An example of multiple control flows:

1. Order flow for products manufactured by the company :

The commercial section transmits the orders received from external customers, to the manufacturing section and to the agencies.


The manufacturing section orders the spare parts to the store section, and the delivery of the products to the shipping section.


The store orders its supplies from the purchasing section.


The purchasing section orders spare parts from external suppliers.

2. Spare parts for products manufactured in the company and required by the agencies for maintenance.

This flow of orders shows that the maintenance contracts entered by the salesman are sent to the agencies that order to the store, the spare parts they require.

The store groups these orders with those that come from manufacturing. Depending on existing stocks, it determines orders to be made for purchases that deal with external suppliers.

 

In addition, the store orders to the shipping section, the delivery of spare parts to the agencies.

3. Products not manufactured by the company.

This last flow does not pass through the store,  manufacturing and shipping.


Here the orders of the customers received by the salesmen, are transmitted to the agencies which directly address to the purchases which order to the external suppliers.

We must now study the flow of delivery as we have just done for the flow of orders, by product categories.

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