Subcontracting diagram

The following diagram shows the movements of the subassemblies in case operations 20 and 30 are subcontracted.

WH	Warehouse
1	The subassembly produced in operation 10 is completed and received in the shop floor warehouse.
2	The subassembly is transferred to a warehouse for subassemblies.
3	The subassembly is delivered to the subcontractor without ownership change. In the manufacturer's system, the subassembly is registered as stored in an administrative warehouse.
4	The subassembly produced by the subcontractor in operation 30 is received in the warehouse at the manufacturer's location.
5	The subassembly is transferred to work center WC4.
6	The subassembly is issued to production and consumed in operation 40.