Work Breakdown Structure (WBS)

TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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Work Breakdown Structure (WRBS) is a generic term used in inventory control to specify and organize all activities relating to unexpected break downs in scheduled processes. WRBS is defined as a unifying set of activities or procedures performed at a single site or over multiple sites to deal with break downs in production. In essence, it defines how an individual or a company would break down a complex production process into smaller steps which are then made dependent on other processes to make up the whole production process. It also makes sure that all activities are completed according to planned procedures and on time, so that the production can continue uninterruptedly.

Work Breakdown Structure is designed around three major objectives: optimize work processes, optimize throughput, and maximize profit margins. All activities related to inventory management are included in WRBS. Some of the major areas involved are workflow optimization, improvement and maintenance of the inventory, improvement of service, and integration of orders. As it is the main warehouse controller, Work Breakdown Structure also deals with the integration of inventory management systems, work centers and shipping arrangements between centers and stores, as well as controlling and integrating third party warehousing suppliers.

There are some key aspects that a company must consider when using the Work Breakdown Structure to improve business operations: The major objective of the organization is to improve the overall efficiency of its operations and to reduce costs. In order for a company to effectively manage its resources in an efficient manner, a detailed overview of each activity in the supply chain is needed. WRBS provides companies with a detailed overview of every step in the production and distribution process to make the necessary changes if required. This overview enables the company to identify areas that require improvement and to make the necessary adjustments at early stages. When using WRBS, it is essential that companies fully understand the capabilities, functions, and the role of each element in the supply chain.

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