Page 251 - RISK Management IC 86

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total output. Having converted all of the matrix values to
coefficients, provided the input - output relationships
remain constant, it is easy to calculate new sets of values
on the assumption of changes in future total output.

Flowcharts, on the other hand show the flow of materials,
parts, and products from suppliers, through the various
production stages and on to customers. By pinpointing
potential bottlenecks, they reveal the vulnerability of the
business to risk, particularly when such diagrams are then
translated into layout drawings where potential hazards
can be plotted against bottleneck exposures.

A simple flowchart is not complete, however, unless some
quantitative value - added dimension is included. Materials
in the timber store can be used as an example. From the
flowchart we come to know that the finished parts that
store receives have to be painted before passing them on
for final assembly.

However, it's not clear what proportion of total production
has to be painted, nor where the division between the
vote questioning and metal machining operations is in
relation to total production.

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