Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

4.3.1 Organization-Oriented Process Chart

Intended learning outcomes: Describe the organization-oriented process chart for the case of both pull logistics and push logistics.


The organization-oriented process chart shows a process with its part processes, tasks, or functions (1) through the course of time (horizontal axis), and (2) in its embeddedness in the structural organization (vertical axis).

There are various ways to draw an organization-oriented process chart. Generally, the diagram corresponds to usual practice in a company. Here is a version based on MEDILS (see Section 4.1.3), incorporating the constructs defined in Section 4.2 into the chart.

For pull logistics (Section 4.2.1), the cascading can be used again unaltered, for vertical cascades necessarily lead to the transition to another organizational unit. Figure 4.3.1.1 shows the example used in Figure 4.2.1.2 in an organization-oriented process chart.

Fig. 4.3.1.1        Pull logistics: organization-oriented process chart.

Complex order processes are reflected in complex diagrams that include many organizational units or the same organizational unit involved repeatedly in the process. For the push logistics in Section 4.2.2, it makes sense to put the part proces­ses on the vertical as soon as the organizational unit changes. A vertical connection produces the connection in the model of the “simple sequence.” The model “partnership relationship with over­lapping part processes,” on the other hand, shows two vertical connections. Figure 4.3.1.2 shows the example used in Figure 4.2.2.1 in an organiza­tion-oriented process chart.

Fig. 4.3.1.2        Push logistics: organization-oriented process chart.

The transition from sales to design/production is represented as an overlapping part process, and the transition to in­voic­ing is shown as a simple sequence. The chart shows parallel part pro­cesses for various organizational units involved in design and production.

With the help of persons that are involved, you can use the organization-oriented process chart to analyze and chart the formal flow. Through interviews or brainstorming sessions with the employees involved, you can identify and chart processes, tasks, or functions, each with their incoming and outgoing flows and their origins and destinations. The findings of the various interviews can be placed in proper succession and integrated into a single diagram. Employees generally make quick sense of the charts, for they can identify them­selves within the structural organization. In a cooperative effort, the results can now be verified and improved. Employees can determine whether the part processes are indeed executed as diagrammed in the chart and whether goods, data, and control flow have been charted correctly.

One disadvantage is that the organization-oriented process chart may not correspond to reality if it was constructed on the basis of interviews and the know-how of the engineer doing the analysis. That is why additional on-site analyses are necessary. In addition, complex order processes are reflected in complex diagrams that include many organizational units or the same organizational unit involved repeatedly in the process.

For a historical example of the organization-oriented process chart, see [Grul28] on the “division of labor in the company” (note Figures 156/157).


Course section 4.3: Subsections and their intended learning outcomes

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