Covers complex structures and customer-specified projects that were never before built, making it impossible to be handled with standard variations. Because the finished product and many components and subassemblies have never been built before, they require new product codes. In most cases, ETO projects organize many tasks and follow a long timeline.
In CTO, products are assembled and configured based on customer requirements. Once customer requirements are known, no further engineering is needed. The finished product and components can be made to stock using a forecast based on probability factors maintained for options and features.
In MTO environments, products are made entirely after the customer order is received. The final product is usually a combination of standardized and custom items to meet specific needs. The wait time is usually longer as clients await custom or highly engineered products with unique features.
MTS is a system that matches production with consumer demand forecasts to determine how much stock should be produced. In MTS environments, products are created before receipt of a customer order. When orders come in, they’re filled from existing stock, and then those stocks are replenished through production orders.
In mixed mode, different goods are produced according to daily anticipated demand to avoid inventory accumulation. This type of production requires the ability to manufacture in small batches and changes quickly from one item to another. It delivers best results when shipment dates are linked to production schedules.
This is the manufacturing of items not permanently attached to buildings or grounds with an individual cost of $5,000+ and a useful life of one year or more. Engineering requirements are complex and the market competitive with customers demanding high quality, low cost, and fast delivery.
Has dedicated production lines that turn out the same item (or a closely related item), 24/7, all year long. There is little set-up and changeover activity. If the peak line speed can’t keep up with demand, a second line is added. If demand isn’t enough for a dedicated second line, a second line operates in discrete mode.