Revision as of 03:25, 5 October 2017
The collection of processes associated with producing sales order specific products. The purpose of Make-to-Order is to produce or finalize products based on actual customer orders and/or customer configuration.
Make-to-Order is a supply chain configuration of the Make process that requires the customer order to be reflected in the Make process without aggregation/disaggregation. This typically means the customer order is trackable and traceable through the manufacturing process. A customer order cancellation will impact a specific production order directly.
Make-to-Order is the Make process that facilitates the MTO Supply Chain Strategy.
Use Cases
- Menu-driven configurable products
- Customization postponement
- Supply chains where manufacturing and distribution lead times do not exceed customer accepted order cycle times
- Manufacturing facilities where products change-overs are fast and low cost or cost neutral
- In Retail: Mix paint colors, cut deli meat to customer specification, cut lumber to length
Order Cycle Time
Make Cycle Time
Perfect Order Ratio
Orders Damage Free Ratio
Orders Defect Free Ratio
Supply Chain Costs
Cost of Goods Sold
Cash Conversion Cycle
Days of Inventory
Configure-To-Order
Assemble-to-Order
Package-to-Order
Bill of Materials
Plan-to-Produce
Workflow
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