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L.C.O             The organization of companies

Sections of the company :

The company consists of subsystems that we call SECTIONS, the definition of sections (their roles and numbers) is determined by the pilot unit.

Each section fulfills a specific function, it adds value to the product by contributing to its transformation, even if it does not directly relate to the actual manufacture of the product. Purchases of raw materials, installation at the customer, sale Etc ..... are provided by sections directly involved in production.
We shall see later the sections (Although they are indispensable), witch are not directly involved in production, such as finance, maintenance of buildings, etc.

The definition of a section consists in perfectly identifying what it produces and what it consumes, to whom it sells and to whom it buys, who order it and to whom it order, who delivers it and to whom it delivers !

One section can receive orders that are delivered by another, it can make deliveries ordered by another to a third.

Example : A business section can order products from the manufacturing section of the company to be delivered to the installation section.

As for the product delivered by a section, it should be noted that there is always a transformation of the product, in other words each section adds value to the product it provides, although in some cases at first glance,  this does not does not seem obvious . For example, a refrigerated warehouse return perishable goods, in good condition.

Before discussing some flow schemes between sections, let's see how to notify a section.

We will note in the bottom and on the left the role "CLIENT" of the section, in bottom on the right the role "SUPPLIER" of it. If a section is composed of several entities, we will mark it by the sign                    at the top and to the right.

For example, the notification of a section comprising several units, such as the commercial sections of an undertaking in which they have been defined by product category.

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