The next model is taken from Mr.Leavitt to show the circuit of capacity and knowledge during a productionorder. If an order is placed it means that the people must be able to produce the goods of this order, otherwise they place it somewhere else, or they rent the right people. The know-how can be changed AFTER production, unless it is a routine case. The capacity of machine's or amount of production people can be changed after the job as well. This information can be important to do the next job! The model shows this evaluation from the moment that an order comes in at the top, where it gets produced at the bottom after its resources are allocated at the right of the page. The final state is an eventually updating of knowledge and/or capacityreports for the next order.
W.Hartman & J.Roos
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