Difference between revisions of "M2"

Revision as of 17:08, 19 November 2019

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 Discuss Contract Custom Solution