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Purchase Orders
Steel tube (internal inventory - cost shared)
Steel
sheet (internal inventory - cost shared)
Spring
Shaft - purchased headed and drilled
Retaining pin
Receive
Steel
tube (cost shared)
Steel
sheet (cost shared)
Spring
Shaft
Handle to Inventory
Steel
tube (cost shared)
Steel
sheet (cost shared)
Spring
Shaft
Retaining pin
Handle from Inventory
Steel
tube
Steel
sheet
Spring
Shaft
Retaining pin
Production
Work
order: cut steel tube to length
Operation: cut steel tube
Handling: move steel tube to welding station
Work
order: fabricate base
Operation: laser cut sheet steel
Handling: move cut steel to forming station
Operation: form sheet steel
Handling: move formed base to welding station
Work
order: weld tube to base
Work
order: assembly operation
Handle from Inventory
Spring
Shaft
Retaining pin
Assembly Operations
put
spring over shaft
place
the shaft in tube base sub assembly
compress shaft and spring
insert
pin in the end of the shaft
Production
Handling: send completed assembly to shipping department
Purchase Order: plating of the assembly
Operation: count assemblies
Operation: package assemblies
Operation: ship assemblies to the plating company
Receive: plated assembly
Handle
to Inventory: plated assembly
Handle
from Inventory: move from plated assembly to production line
Invoice Payment
Steel
tube
Steel
sheet
Spring
Shaft
Retaining Pin
Process invoice for plating
Production Overview
Total
operations: 11
Times
parts handled: 20
Purchase orders: 6
Work
orders: 4
Invoices paid: 6
Minimum internal cost: $3.55 each (estimated)
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