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Routing Procedure For a new product or part the routing procedure consists of seven principle steps:
1.The first step is to analyze the product or articles and fabricate into constituent part and then decide as to what part s are to be manufacturing and what to be purchased.
2.Analysis of product into component and units determined the kind grade quality and quantity of materials to be used in production.
3. Determining the number of manufacturing operations and their sequence for the performance. Such operations and their sequence are listed on the route sheet.
4.To decide the required process time for each operations and the type and number of machines necessary to produce articles.
5.To determine lot size of order quantity. Customers orders plus rejections will determine the size of the lot.
6.To determine the normal scrap factor which leads to normal spoilage, anticipated during the course of manufacturing.
7. To design the forms which are necessary for plant department. These forms are primarily influenced by the type of manufacture. Such forms include job cards inspection more tickets tools tickets etc.
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A flower shop uses 800 clay pots a month. The pots are purchased at $2 each. Annual carrying costs are estimated at $0.60 per pot per year and ordering costs are $20 per order. The
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