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MANUAL

This paragraph can be contemplated as a kind of manual for the previous paragraphs. The defined terms and method's are a kind of tools that will make your economic organization TRANSPARENT if it wasn't already clear for you by reading the previous paragraphs. Because of a good methodic analyzing there will be recommended a specific sequence in which the tools have to be proceed. This sequence leads to an output of information, which has to be rubricated (enumerated), and substituted in the totalmodel. This model is part by part presented in the different paragraphs and giving together a total traject, similar as in the next model. The trajects can be separated in general in a materialflow or a documentflow. There are combinations of the two in one traject, but mostly this is only happening with extern deliveries of material. This analyze is more internal, where material trajects are by definition documented, but not in the same trajects.

Your own economic analyze can be the best proceeded in the next sequence, point by point:

ANALYZE the routing of the material and/or parts from receiving till final product. (materialflow)
Define the REGISTRATIONS and routing of these registrations or wanted registrations (documentflow)
APPOINT the components in every section who are related at the different documentflows and material flows. These components can be already realized, but can also be theoretical there for a new design in the organization.
PLACE the sections in the totalmodel, which is separated in three HORIZONTAL LAYERS :

UPPER layer = ORDERADMINISTRATION (intern & extern for instance salesadm. productadm. supplieradm. etc.)

MIDDLE layer = MATERIAL FLOW ( different stockplaces like assemblematerial, final productmagazine, etc.)

UNDER layer = FINANCIAL ADMINISTRATION ( cashflow, paymentsadmin. etc)

CONNECT the related components with lineconections (in the model are these the green lines) for every registration who circulates in your economic organization. In this way you get an lay-out of the present documentationflow.

The endresult can be expanded with eventually wanted components and registrations. In the graphic model are vertical splices for the divisions buying, producing and sales. The horizontal layers are called order administration, materialflow and financial administration. The registrations inside the organization can be placed in the totalmodel in-between specific components, like produce-order from ordercontrol to production, internal buyingorder from productordercontrol to buyingordercontrol to extern buyingactivity, etc. If there is no possibility to place registrations in the totalmodel, the chance is big that the organization don't needs this registration, or that there is an other (better?) solution.

The TYPE of organization can be defined by the next categories: order-, supply- or programcontrol. As described before in the paragraphs Production and Orderadministration (registrations), the different types of control have their effect on the lay-out as well as on the administration itself. If there is no transformation of the goods in the traject material-final product, the component production can be left out in the graphic model. This situation is actual in hotels, cafe's, supermarkets and service-organizations (office-cleaning, productselling, etc). In this case the lay-out can be restricted till a buying-selling concept in the administration and a magazine for the final products in the materialflow. The bill is evidence of payment, receivecertificate and guaranty in one, treated by the component cash, bank and cheque's in the section financial administration.
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The red numbers are corresponding with the red numbers in the diagram above, and representing the documentflow in the organization.

#1 - EXTERNAL salesorder coming from an extern client or showroom
#2 - Recievingorderfor incoming goods, such as material or half products. Order contains date and amount of goods.
#3 - Qualityreportcomes from ordercontrol and is meant to check the condition.
#4 -Confirmreport goes back from receiving to ordercontrol with sign and amount.
#5 - INTERN magazine is confirming the amount of goods and stashes it in an internal stockplace.
#6 - Intern distributionorder comes from productioncontrol with amount and date. In this way there is a control of the total amount of productionmaterial possible by supervision of buying- and productioncontrol.
#7 - Productionorderwith specifications and amount of the desired product(s).
#8 - Productioncontrolreport goes back with materialspecifications and eventual used halfmaterial or extracts from the productionstockplace.
#9 - Productionconfirmreportwith the date and amount of produced goods is going to productionordercontrol. The products are send to the internal stockplace for final products.
#10-Extracts or halfproducts to assemble and eventualy produced in own factory are delivered to production. The materialreports about amounts and quality are send from production to productioncontrol. In this way there is a total overview of the used materials from receiving to productstock in the productdivision.
#11-Productamount of final products delivered at internal stockplace. This construction gives an overview of the total amount of produced goods as well as the used material in the division PRODUCTION.
#12-DeliveryORDER (internal) with date and amount comes from salescontrol to deliver the goods to expedition (deliveries). By calibration the orders from production- and salesdivision there is an exact control about the amount of final products.
#13-Transportdocumentsare handled over to deliveries.
#14-Documentsare packed with the load of goods and leaves the organization to return when they are signed by the client.
#15-Signed transportdocuments are returned from external expedition, eventually with salesorders coming from the distributionnetwork.
#16-Deliveriesinforms the salesdivision and handles over the documents. The total control about salesorders and progress is now possible by the division sales.
#17-Cashflow when the delivery order goes with certain paymentconditions, the money must be paid to the component CASH in the administration section.
#18-Debitpayments from normal placed salesorders are going from sales to administration
#19-Creditpaymentsfor incoming goods (buyingorders) from buyingdivision to credit vv.

This model is a start for a substitution of your own registrations and their related components. If the concept is too big or too little for your company, you can leave out some components or substitute new ones. For the relevant registrations it is the best to read the paragraphs PRODUCTION and ADMINISTRATIONS. In the first paragraph are named the kinds of productioncontrol, the second contains the registrations which can be present in an organization. The endresult is a scheme of the activities, necessary for the control of the material flow. The circle diagrams must be joint together on the same way as the flowcharts to get a total overview on activities and organization.

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