ABSTRACT

In order to consider in more specific terms some of the implications of the proposals just given, we shall develop a model representing a possible application. To establish some limits for visualization, let us assume the following characteristics for the industrial operation to which we shall refer:

It is an autonomous manufacturing firm at one physical location, e.g. a decentralized or subsidiary firm of a group of companies, or an independent, single-unit firm.

It is of moderate size; that is, it is large enough to require, in conventional form, a number of middle-management personnel with full-time responsibility for planning functions of many kinds, as opposed to a small firm where all but a very few individuals are engaged primarily in line work.

The firm manufactures one basic product, or a 'family' of related products, in large quantities, for potential consumption in a mass market; periodic revision of product design is usual.

The product is complex, involving diverse operations, and heterogeneous elements and materials in its fabrication.

The nature of the product does not require a commitment to an inflexible system of single-purpose plant.