Actions

M2

Make-to-Order

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-Product

Hierarchy

IDNameLevelx
MMake1M
M2Make-to-Order2M2
M201Create Order3M201
M202Schedule Make Orders3M202
M203Issue Materials3M203
M204Produce3M204
M205Inspect3M205
M206Package3M206
M207Dispose3M207
M208Transfer3M208

Metric(s)

IDNameLevelx
DP1Perfect Order Ratio1DP1
DP11Orders Damage Free Ratio2DP11
DP12Orders Defect Free Ratio2DP12
RS1Order Cycle Time1RS1
RS13Make Cycle Time2RS13
CO1Supply Chain Costs1CO1
CO11Cost of Goods Sold2CO11
AE1Cash Conversion Cycle1AE1
AE12Days of Inventory2AE12

Term(s)

IDNameClearx
ATOAssemble-to-OrderATO
BOMBill of MaterialsBOM
CTOConfigure-To-OrderCTO
MTOMake-to-OrderMTO
PTOPackage-to-OrderPTO
P2PPlan-to-ProductP2P

Workflow

FromInput(s)
Process
Output(s)To
wf_processwf_arrow
S2Sales Order Stock
M1Subassembly
M2Subassembly
M2
wf_arrowwf_process
Sales Order StockD2
Sales Order StockD3
SubassemblyM2
SubassemblyM3
Make-to-Order Make 320000 2 {{{keywords}}} {{{description}}}