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Process Charts
Process chart is the diagrammatic representation of various tasks and activities in sequence of operation passing through the production process beginning with the first operation to the last operation for the completion of product in any organization producing any product. In preparing a layout plan these charts are of great value. The basis of operation chart is that there is always some order of operation between raw material sources and eventful consumer. The different operations during the fulfilment of these ends are often linked together.
The several operation included in the production process can be grouped under the following three categories.
1.Flow operations: These are operations which change the state of materials without any significant change in their quality.
2.Dividing operations: The flow of materials by such types of operations is divided into a number of constituent streams.
3.Combining Operation: such operations combine the different flow streams into one stream.
A company has two alternatives for meeting a customer requirement for 9,000 units of a specialty molding. If done in-house, fixed cost would be $350,000 with variable cost at $30 p
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