OpenReference

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

Hierarchy

ID	Name	Level	x
M	Make	1	M
M2	Make-to-Order	2	M2
M201	Create Order	3	M201
M202	Schedule Make Orders	3	M202
M203	Issue Materials	3	M203
M204	Produce	3	M204
M205	Inspect	3	M205
M206	Package	3	M206
M207	Dispose	3	M207
M208	Transfer	3	M208

Metric(s)

ID	Name	Level	x
DP1	Perfect Order Ratio	1	DP1
DP11	Orders Damage Free Ratio	2	DP11
DP12	Orders Defect Free Ratio	2	DP12
RS1	Order Cycle Time	1	RS1
RS13	Make Cycle Time	2	RS13
CO1	Supply Chain Costs	1	CO1
CO11	Cost of Goods Sold	2	CO11
AE1	Cash Conversion Cycle	1	AE1
AE12	Days of Inventory	2	AE12
SD1	Environmental Sustainability Ratio	1	SD1
SD11	Intake Sustainability Ratio	2	SD11
SD12	Recovery Ratio	2	SD12
SD13	Output Sustainability Ratio	2	SD13

Term(s)

ID	Name	Clear	x
ATO	Assemble-to-Order		ATO
BOM	Bill of Materials		BOM
CTO	Configure-To-Order		CTO
MTO	Make-to-Order		MTO
PTO	Package-to-Order		PTO
P2P	Plan-to-Produce		P2P

Workflow

From Input(s)	Process	Output(s) To
wf_process wf_arrow M2 Sales Order Stock S2 Sales Order Stock M1 Subassembly M2 Subassembly	M2	wf_arrow wf_process Sales Order Stock D2 Sales Order Stock D3 Sales Order Stock M2 Subassembly M2 Subassembly M3

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