Cyclopedia of Commerce, Accountancy, Business Administration, v. 02 (of 10)American School of Correspondence
General
Cyclopedia of Commerce, Accountancy, Business Administration, v. 02 (of 10)
American School of Correspondence
Accounting; Business; Commerce
Few managers will accept verbal orders for the manufacture of expensive
goods, without asking for a confirmation in writing. When those
orders are transmitted to the manufacturing department, it is just as
important that they shall be in writing.
Manufacturing orders are of two classes: general orders to the
superintendent to manufacture a certain quantity of goods, and specific
orders to shop foremen to do some part of the work. For convenience,
these orders will be referred to in this discussion as _Production_
orders and _Shop_ orders.
=23. Production Orders.= The production order is the written
instructions to the superintendent to manufacture certain goods. It
is his authority to secure the necessary material, to employ the
required number of men, and to convert that material and labor into the
finished product. The production order may call for the manufacture of
the quantity of goods of a certain type required to fill one or more
customers' orders; the manufacture of a certain quantity of goods to be
placed in stock, from which to fill future orders; the conversion of a
definite quantity of raw material into finished products; or even the
manufacture of an indefinite quantity of raw material into an equally
indefinite quantity of the finished product, but within a definite
period of time.
Usually the production orders of one factory will be confined to
one class, though there are some exceptions. In the first class, we
find shops manufacturing special machinery, jobbing foundries, and
mills manufacturing underwear and hosiery. In the latter business the
goods are sold in advance, from samples, and only the quantities or
particular styles required to fill orders are manufactured.
The second class includes furniture factories, typewriter factories,
the manufacture of tools, and numberless similar industries in which a
stock of standard goods is manufactured for future sale.
An example of the third class is found in a harness factory. In this
business, a certain number of sides of leather are issued to the
cutting room to be cut. Since the leather is not uniform in weight
or texture, it is not possible to cut an entire side of leather into
pieces of the same size, or the same parts of a harness──as lines or
traces. The cutter must use his best judgment, so cutting the leather
that it will produce the largest possible volume of usable stock, with
the least waste. The definite factor is the side of leather which is to
be converted into an indefinite quantity of finished, or semi─finished
product.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account