Abstract

Rhochrematics, which is the new science of material and information flow, has many implications for top management. Developed to foster a systematic, integrated approach to managing the flow of raw materials, parts, components, and finished goods, its chief concept is that of maintaining the flow of the product from raw materials to the ultimate consumer. In maintaining this flow it cuts across the traditional organization chart, and undermines some time-honored management practices, but companies practicing Rhochrematics have discovered that it also cuts costs and compresses lead-time. Rhochrematics literally translated means the science of product or material flows. The term is connoted to mean scientific or systematic approaches to the management of material flows. Organization theorists and practitioners have paid little attention to proposals for bringing all of the activities related to material flows under one head. Traffic, inventory management, in-plant transportation, production planning, receiving, storing, and shipping are functions that are often analyzed separately in relatively isolated departments of any one company.