Monday, May 3, 2010

Ax 2009: Production Methods Description


Configure-To-Order (CTO)


Configure-To-Order (CTO) is a method of manufacturing which allows you, or your customer, to select a base product and configure all the variable parameters associated with that product. Based on the configurable items on each quote or order, Configure-To-Order (CTO) systems typically generate the manufacturing routing and/or bill of materials based on features and options such as color, size, etc.

Engineer-To-Order (ETO)

Engineer-To-Order (ETO) is a manufacturing philosophy whereby finished goods are built to unique customer specifications. Assemblies and raw materials may be stocked but are not assembled into the finished good until a customer order is received and the part is designed. Engineer To Order products may require a unique set of item numbers, bills of material, and routings—and are typically complex with long lead times. Customers are heavily involved throughout the entire design and manufacturing process for engineer to order products.

Assemble To Order - ATO

Assemble To Order - (ATO) A business production strategy where products ordered by customers are produced quickly and are customizable to a certain extent. The assemble-to-order (ATO) strategy requires that the basic parts for the product are already manufactured but not yet assembled. Once an order is received, the parts are assembled quickly and sent to the customer

Make To Order - MTO

A business production strategy that typically allows consumers to purchase products that are customized to their specifications. The make to order (MTO) strategy only manufactures the end product once the customer places the order. This creates additional wait time for the consumer to receive the product, but allows for more flexible customization compared to purchasing from retailers' shelves.

MTS (Make to Stock)

Products are manufactured based on demand forecasts. Since accuracy of the forecasts will prevent excess inventory and opportunity loss due to stockout, the issue here is how to forecast demands accurately. MTS (Make to Stock) literally means to manufacture products for stock based on demand forecasts, which can be regarded as push-type production. MTS has been required to prevent opportunity loss due to stockout and minimize excess inventory using accurate forecasts. In the industrialized society of mass production and mass marketing, this forecast mass production urged standardization and efficient business management such as cost reduction.

Continuous process

An industrial process in which a material is produced continuously. an example is iron, with the iron ore fed continuously into the apparatus and cast iron continuously removed.


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